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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
x☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2017
OR
oFor the Quarterly Period EndedSeptember 30, 2023
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from_______________________to_______________________

For the Transition Period from_______________________to_______________________
Commission File No. 1-32525 
AMERIPRISE FINANCIAL, INC.
(Exact name of registrant as specified in its charter) 
Commission File No.1-32525
Delaware13-3180631AMERIPRISE FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Delaware13-3180631
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
1099 Ameriprise Financial Center Minneapolis, MinnesotaMinneapolisMinnesota55474
(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
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 x    No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).       Yes xNo o
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
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock (par value $0.01 per share)AMPNew York Stock Exchange
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 Filerx
☒
Accelerated Filero
Non-Accelerated Filero
(Do not check if a smaller reporting company)
☐
Non-accelerated Filer☐Smaller reporting companyo
☐
Emerging growth companyo☐
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.o
☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes oNo x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
ClassOutstanding at October 20, 2017
Common Stock (par value $.01 per share)147,930,011 shares


AMERIPRISE FINANCIAL, INC. 

FORM 10-Q
INDEX 
Part I. Financial InformationIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes☐No☒
Item 1. Financial Statements (Unaudited)Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Consolidated Statements of Operations — Three months and nine months ended September 30, 2017 and 2016
3
Class		Outstanding at October 20, 2023
Consolidated Statements of Comprehensive Income — Three months and nine months ended September 30, 2017 and 2016Common Stock (par value $0.01 per share)
4
101,196,192 shares
Consolidated Balance Sheets — September 30, 2017 and December 31, 2016
5
Consolidated Statements of Equity — Nine months ended September 30, 2017 and 2016
6
Consolidated Statements of Cash Flows — Nine months ended September 30, 2017 and 2016
7
Notes to Consolidated Financial Statements
9
1. Basis of Presentation
9
2. Recent Accounting Pronouncements
9
3. Variable Interest Entities
11
4. Investments
17
5. Financing Receivables
20
6. Deferred Acquisition Costs and Deferred Sales Inducement Costs
23
7. Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities
24
8. Variable Annuity and Insurance Guarantees
24
9. Debt
26
10. Fair Values of Assets and Liabilities
27
11. Offsetting Assets and Liabilities
38
12. Derivatives and Hedging Activities
40
13. Shareholders’ Equity
45
14. Income Taxes
47
15. Contingencies
48
16. Earnings per Share
49
17. Segment Information
50
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations
52
Item 3.  Quantitative and Qualitative Disclosures About Market Risk
88
Item 4.  Controls and Procedures
88
Part II.  Other Information
89
Item 1.  Legal Proceedings
89
Item 1A.  Risk Factors
89
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
89
Item 6.  Exhibits
90
Signatures
91


Index
AMERIPRISE FINANCIAL, INC.

FORM 10-Q
INDEX 
Part I. Financial Information
3
3
3
4
5
6
7
9
1.
9
2.
9
3.
12
4.
17
5.
22
6.
27
7.
31
8.
35
9.
37
10.
50
11.
50
12.
55
13.
56
14.
67
15.
68
16.
73
17.
76
18.
77
19.
78
20.
78
81
111
116
117
117
117
117
118
119
120
2
Index
AMERIPRISE FINANCIAL, INC.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions, except per share amounts) 
Revenues
Management and financial advice fees$1,626
 $1,464
 $4,669
 $4,289
Distribution fees437
 455
 1,310
 1,338
Net investment income372
 387
 1,154
 1,090
Premiums348
 374
 1,035
 1,114
Other revenues210
 330
 733
 832
Total revenues2,993
 3,010
 8,901
 8,663
Banking and deposit interest expense12
 12
 34
 29
Total net revenues2,981
 2,998
 8,867
 8,634
Expenses
Distribution expenses850
 798
 2,505
 2,371
Interest credited to fixed accounts176
 161
 509
 465
Benefits, claims, losses and settlement expenses474
 855
 1,652
 1,934
Amortization of deferred acquisition costs48
 163
 189
 360
Interest and debt expense52
 52
 154
 160
General and administrative expense753
 731
 2,244
 2,221
Total expenses2,353
 2,760
 7,253
 7,511
Pretax income628
 238
 1,614
 1,123
Income tax provision125
 23
 315
 209
Net income$503
 $215
 $1,299
 $914
 
Earnings per share
Basic$3.29
 $1.31
 $8.37
 $5.43
Diluted$3.24
 $1.30
 $8.24
 $5.37
 
Cash dividends declared per common share$0.83
 $0.75
 $2.41
 $2.17
 
Supplemental Disclosures:
Total other-than-temporary impairment losses on securities$—
 $—
 $(1) $(2)
Portion of loss recognized in other comprehensive income (before taxes)—
 —
 —
 1
Net impairment losses recognized in net investment income$—
 $—
 $(1) $(1)
See Notes to Consolidated Financial Statements.


AMERIPRISE FINANCIAL, INC. 
 Three Months Ended September 30,Nine Months Ended September 30,
2023
2022 (1)
2023
2022 (1)
(in millions, except per share amounts) 
Revenues
Management and financial advice fees$2,287 $2,172 $6,623 $6,908 
Distribution fees463 506 1,462 1,411 
Net investment income809 349 2,318 897 
Premiums, policy and contract charges390 354 1,135 1,034 
Other revenues127 118 390 365 
Total revenues4,076 3,499 11,928 10,615 
Banking and deposit interest expense151 15 385 20 
Total net revenues3,925 3,484 11,543 10,595 
Benefits and expenses
Distribution expenses1,297 1,198 3,771 3,737 
Interest credited to fixed accounts139 157 464 443 
Benefits, claims, losses and settlement expenses120 81 748 (83)
Remeasurement (gains) losses of future policy benefit reserves(12)(1)(17)(6)
Change in fair value of market risk benefits168 (321)558 298 
Amortization of deferred acquisition costs62 58 185 190 
Interest and debt expense84 52 240 136 
General and administrative expense950 925 2,854 2,766 
Total benefits and expenses2,808 2,149 8,803 7,481 
Pretax income1,117 1,335 2,740 3,114 
Income tax provision245 274 561 614 
Net income$872 $1,061 $2,179 $2,500 
Earnings per share
Basic$8.31 $9.60 $20.48 $22.30 
Diluted$8.14 $9.41 $20.08 $21.85 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions) 
Net income$503
 $215
 $1,299
 $914
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment16
 (16) 46
 (55)
Net unrealized gains (losses) on securities(4) (28) 60
 382
Net unrealized gains (losses) on derivatives1
 1
 2
 3
Defined benefit plans—
 —
 5
 6
Other—
 —
 (1) —
Total other comprehensive income (loss), net of tax13
 (43) 112
 336
Total comprehensive income$516
 $172
 $1,411
 $1,250
See Notes to Consolidated Financial Statements.


AMERIPRISE FINANCIAL, INC. 

CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 September 30,
2017		 December 31, 2016
(in millions, except share amounts)
Assets
Cash and cash equivalents$2,398
 $2,318
Cash of consolidated investment entities106
 168
Investments36,202
 35,834
Investments of consolidated investment entities, at fair value2,215
 2,254
Separate account assets85,287
 80,210
Receivables5,742
 5,299
Receivables of consolidated investment entities, at fair value9
 11
Deferred acquisition costs2,661
 2,648
Restricted and segregated cash and investments3,131
 3,331
Other assets7,735
 7,748
Total assets$145,486
 $139,821
 
Liabilities and Equity
Liabilities:
Policyholder account balances, future policy benefits and claims$29,963
 $30,202
Separate account liabilities85,287
 80,210
Customer deposits10,427
 10,036
Short-term borrowings201
 200
Long-term debt2,902
 2,917
Debt of consolidated investment entities, at fair value2,267
 2,319
Accounts payable and accrued expenses1,728
 1,727
Other liabilities6,363
 5,823
Other liabilities of consolidated investment entities, at fair value43
 95
Total liabilities139,181
 133,529
Equity:
Ameriprise Financial, Inc.:
Common shares ($.01 par value; shares authorized, 1,250,000,000; shares issued, 327,007,785 and 324,006,315, respectively)3
 3
Additional paid-in capital8,017
 7,765
Retained earnings11,271
 10,351
Treasury shares, at cost (178,670,257 and 169,246,411 shares, respectively)(13,298) (12,027)
Accumulated other comprehensive income, net of tax312
 200
Total equity6,305
 6,292
Total liabilities and equity$145,486
 $139,821
See Notes to Consolidated Financial Statements.

AMERIPRISE FINANCIAL, INC. 

CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
 Ameriprise Financial, Inc.Non-controlling InterestsTotal
Number of Outstanding SharesCommon SharesAdditional Paid-In CapitalRetained EarningsAppropriated Retained
Earnings of Consolidated
Investment Entities		Treasury
Shares		Accumulated Other Com-
prehensive Income		Total Ameriprise Financial, Inc. Shareholders’ Equity
(in millions, except share data) 
Balances at January 1, 2016 (1)
171,033,260 $3 $7,611 $9,525 $137 $(10,338)$253 $7,191 $1,188 $8,379 
Cumulative effect of change in accounting policies— — — 1 (137)— 6 (130)(1,188)(1,318)
Comprehensive income:
Net income— — — 914 — — — 914 — 914 
Other comprehensive income, net of tax— — — — — — 336 336 — 336 
Total comprehensive income1,250 — 1,250 
Dividends to shareholders— — — (368)— — — (368)— (368)
Repurchase of common shares(14,349,061)— — — — (1,333)— (1,333)— (1,333)
Share-based compensation plans1,812,137 — 98 — — 62 — 160 — 160 
Balances at
   September 30, 2016 (1)
158,496,336 $3 $7,709 $10,072 $— $(11,609)$595 $6,770 $— $6,770 
 
Balances at January 1, 2017154,759,904 $3 $7,765 $10,351 $— $(12,027)$200 $6,292 $— $6,292 
Comprehensive income:
Net income— — — 1,299 — — — 1,299 — 1,299 
Other comprehensive income, net of tax— — — — — — 112 112 — 112 
Total comprehensive income1,411 — 1,411 
Dividends to shareholders— — — (379)— — — (379)— (379)
Repurchase of common shares(10,184,145)— — — — (1,323)— (1,323)— (1,323)
Share-based compensation plans3,761,769 — 252 — — 52 — 304 — 304 
Balances at September 30, 2017148,337,528 $3 $8,017 $11,271 $— $(13,298)$312 $6,305 $— $6,305 
(1) Prior Certain prior period retained earnings were restated in the fourth quarter of 2016.amounts have been restated. See Note 1 in the Company’s Annual Report on Form 10-K3 for the year ended December 31, 2016.more information.
See Notes to Consolidated Financial Statements.

3
Index
AMERIPRISE FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

 Three Months Ended September 30,Nine Months Ended September 30,
2023
2022 (1)
2023
2022 (1)
(in millions) 
Net income$872 $1,061 $2,179 $2,500 
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities(623)(1,029)(531)(3,316)
Net unrealized gains (losses) on derivatives— — 2 (1)
Effect of changes in discount rate assumptions on certain long-duration contracts174 241 168 931 
Effect of changes in instrument-specific credit risk on market risk benefits18 (3)53 657 
Defined benefit plans— 1 — 1 
Foreign currency translation adjustment(60)(127)14 (295)
Total other comprehensive income (loss), net of tax(491)(917)(294)(2,023)
Total comprehensive income (loss)$381 $144 $1,885 $477 
(1) Certain prior period amounts have been restated. See Note 3 for more information.
See Notes to Consolidated Financial Statements.
4
Index
AMERIPRISE FINANCIAL, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)


 September 30, 2023
December 31, 2022 (1)
(in millions, except share amounts)
Assets
Cash and cash equivalents$7,010 $6,964 
Cash of consolidated investment entities91 133 
Investments (allowance for credit losses: 2023, $21; 2022, $39)51,995 44,524 
Investments of consolidated investment entities, at fair value2,166 2,354 
Market risk benefits1,644 1,015 
Separate account assets72,354 73,962 
Receivables (allowance for credit losses: 2023, $78; 2022, $75)14,800 15,595 
Receivables of consolidated investment entities, at fair value29 20 
Deferred acquisition costs2,725 2,777 
Restricted and segregated cash, cash equivalents and investments1,569 2,229 
Other assets10,753 9,277 
Other assets of consolidated investment entities, at fair value— 2 
Total assets$165,136 $158,852 
Liabilities and Equity
Liabilities:
Policyholder account balances, future policy benefits and claims$35,526 $34,132 
Market risk benefits1,525 2,118 
Separate account liabilities72,354 73,962 
Customer deposits36,109 30,775 
Short-term borrowings201 201 
Long-term debt3,557 2,821 
Debt of consolidated investment entities, at fair value2,222 2,363 
Accounts payable and accrued expenses2,307 2,242 
Other liabilities7,473 6,316 
Other liabilities of consolidated investment entities, at fair value37 119 
Total liabilities161,311 155,049 
Equity:
Common shares ($0.01 par value; shares authorized, 1,250,000,000; shares issued, 336,610,420 and 335,864,062, respectively)3 3 
Additional paid-in capital9,744 9,517 
Retained earnings21,670 19,918 
Treasury shares, at cost (235,229,154 and 230,585,072 shares, respectively)(24,752)(23,089)
Accumulated other comprehensive income (loss), net of tax(2,840)(2,546)
Total equity3,825 3,803 
Total liabilities and equity$165,136 $158,852 
(1) Certain prior period amounts have been restated. See Note 3 for more information.
See Notes to Consolidated Financial Statements.

5
Index
AMERIPRISE FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF EQUITY (UNAUDITED)
Number of Outstanding SharesCommon SharesAdditional Paid-In CapitalRetained EarningsTreasury
Shares
Accumulated Other Comprehensive Income (Loss)
Total
(in millions, except per share data)
Balances at July 1, 2023102,793,359 $3 $9,670 $20,941 $(24,185)$(2,349)$4,080 
Net income— — — 872 — — 872 
Other comprehensive income (loss), net of tax— — — — — (491)(491)
Dividends to shareholders— — — (143)— — (143)
Repurchase of common shares(1,646,485)— — — (568)— (568)
Share-based compensation plans234,392 — 74 — 1 — 75 
Balances at September 30, 2023101,381,266 $3 $9,744 $21,670 $(24,752)$(2,840)$3,825 
Balances at July 1, 2022108,438,618 $3 $9,380 $18,486 $(22,051)$(1,748)$4,070 
Net income— — — 1,061 — — 1,061 
Other comprehensive income (loss), net of tax— — — — — (917)(917)
Dividends to shareholders— — — (141)— — (141)
Repurchase of common shares(1,931,209)— — — (509)— (509)
Share-based compensation plans186,202 — 54 — — — 54 
Balances at September 30, 2022 (1)
106,693,611 $3 $9,434 $19,406 $(22,560)$(2,665)$3,618 
Balances at January 1, 2023105,278,990 $3 $9,517 $19,918 $(23,089)$(2,546)$3,803 
Net income— — — 2,179 — — 2,179 
Other comprehensive income (loss), net of tax— — — — — (294)(294)
Dividends to shareholders— — — (427)— — (427)
Repurchase of common shares(5,277,936)— — — (1,727)— (1,727)
Share-based compensation plans1,380,212 — 227 — 64 — 291 
Balances at September 30, 2023101,381,266 $3 $9,744 $21,670 $(24,752)$(2,840)$3,825 
Balances at January 1, 2022110,861,010 $3 $9,220 $17,322 $(21,066)$(642)$4,837 
Net income— — — 2,500 — — 2,500 
Other comprehensive income (loss), net of tax— — — — — (2,023)(2,023)
Dividends to shareholders— — — (416)— — (416)
Repurchase of common shares(5,655,820)— — — (1,565)— (1,565)
Share-based compensation plans1,488,421 — 214 — 71 — 285 
Balances at September 30, 2022 (1)
106,693,611 $3 $9,434 $19,406 $(22,560)$(2,665)$3,618 
(1) Certain prior period amounts have been restated. See Note 3 for more information.
See Notes to Consolidated Financial Statements.
6
Index
AMERIPRISE FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Nine Months Ended September 30,
2023
2022 (1)
(in millions)
Cash Flows from Operating Activities
Net income$2,179 $2,500 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net(114)(11)
Deferred income tax expense (benefit)106 292 
Share-based compensation138 127 
Net realized investment (gains) losses47 (5)
Net trading (gains) losses(6)8 
Loss from equity method investments19 25 
Impairments and provision for loan and credit losses(15)93 
Net (gains) losses of consolidated investment entities18 5 
Changes in operating assets and liabilities:
Restricted and segregated investments(107)(246)
Deferred acquisition costs52 48 
Policyholder account balances, future policy benefits and claims, and market risk benefits, net1,231 324 
Derivatives, net of collateral(431)465 
Receivables324 (138)
Brokerage deposits(615)(168)
Accounts payable and accrued expenses64 (414)
Current income tax, net(338)(61)
 Deferred taxes, net1 10 
Other operating assets and liabilities of consolidated investment entities, net(8)1 
Other, net(3)335 
Net cash provided by (used in) operating activities2,542 3,190 
Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales726 738 
Maturities, sinking fund payments and calls6,660 5,849 
Purchases(15,194)(15,452)
Proceeds from sales, maturities and repayments of mortgage loans108 111 
Funding of mortgage loans(187)(147)
Proceeds from sales, maturities and collections of other investments115 48 
Purchase of other investments(73)(75)
Purchase of investments by consolidated investment entities(347)(763)
Proceeds from sales, maturities and repayments of investments by consolidated investment entities492 466 
Purchase of land, buildings, equipment and software(134)(126)
Cash paid for written options with deferred premiums(59)(411)
Cash received from written options with deferred premiums43 141 
Cash returned (paid) for acquisition of business, net of cash acquired— 34 
Cash paid for deposit receivables(30)(34)
Cash received for deposit receivables579 393 
Other, net(41)(13)
Net cash provided by (used in) investing activities$(7,342)$(9,241)
See Notes to Consolidated Financial Statements.
7

  September 30,
 2017 2016
 (in millions)
 Cash Flows from Operating Activities
 Net income$1,299
 $914
 Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 Depreciation, amortization and accretion, net176
 187
 Deferred income tax expense (benefit)(58) (47)
 Share-based compensation91
 101
 Net realized investment (gains) losses(37) (1)
 Net trading (gains) losses(5) (5)
 Loss from equity method investments41
 45
 Net losses of consolidated investment entities3
 5
 Changes in operating assets and liabilities:
 Restricted and segregated investments1
 200
 Deferred acquisition costs(31) 86
 Other investments, net(139) 9
 Policyholder account balances, future policy benefits and claims, net(353) 1,172
 Derivatives, net of collateral589
 (676)
 Receivables(445) (177)
 Brokerage deposits(47) 3
 Accounts payable and accrued expenses(19) (24)
 Other operating assets and liabilities of consolidated investment entities, net—
 (9)
 Other, net113
 239
 Net cash provided by (used in) operating activities1,179
 2,022
  
 Cash Flows from Investing Activities
 Available-for-Sale securities:
 Proceeds from sales335
 322
 Maturities, sinking fund payments and calls3,583
 3,379
 Purchases(3,722) (4,666)
 Proceeds from sales, maturities and repayments of mortgage loans348
 705
 Funding of mortgage loans(372) (334)
 Proceeds from sales and collections of other investments211
 131
 Purchase of other investments(351) (144)
 Purchase of investments by consolidated investment entities(1,092) (566)
 Proceeds from sales, maturities and repayments of investments by consolidated investment entities1,087
 803
 Purchase of land, buildings, equipment and software(125) (66)
 Other, net(8) 69
 Net cash provided by (used in) investing activities$(106) $(367)
 See Notes to Consolidated Financial Statements.
 

Index
AMERIPRISE FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)

  September 30,
 2017 2016
 (in millions)
 Cash Flows from Financing Activities
 Investment certificates:
 Proceeds from additions$3,595
 $3,184
 Maturities, withdrawals and cash surrenders(3,158) (2,376)
 Policyholder account balances:
 Deposits and other additions1,538
 1,532
 Net transfers from (to) separate accounts(120) 113
 Surrenders and other benefits(1,413) (1,448)
 Cash paid for purchased options with deferred premiums(187) (256)
 Cash received from purchased options with deferred premiums42
 242
 Issuance of long-term debt—
 495
 Repayments of long-term debt(8) (254)
 Dividends paid to shareholders(368) (361)
 Repurchase of common shares(1,161) (1,319)
 Exercise of stock options13
 6
 Repayments of debt by consolidated investment entities(59) (134)
 Other, net—
 3
 Net cash provided by (used in) financing activities(1,286) (573)
 Effect of exchange rate changes on cash32
 (53)
 Net increase (decrease) in cash, cash equivalents and restricted cash(181) 1,029
 Cash, cash equivalents and restricted cash at beginning of period5,392
 5,407
 Net cash outflows upon the deconsolidation of VIEs—
 (346)
 Cash, cash equivalents and restricted cash at end of period$5,211
 $6,090
  
 Supplemental Disclosures:
 Interest paid excluding consolidated investment entities$130
 $121
 Interest paid by consolidated investment entities65
 74
 Income taxes paid, net387
 201
 Non-cash investing activity:
 Partnership commitments not yet remitted9
 75
  September 30,
2017		 December 31, 2016
 (in millions)
 
 Reconciliation of cash, cash equivalents and restricted cash:
 Cash and cash equivalents$2,398
 $2,318
 Cash of consolidated investment entities106
 168
 Restricted and segregated cash and investments3,131
 3,331
 Less: Restricted and segregated investments(424) (425)
 Total cash, cash equivalents and restricted cash per consolidated statements of cash flows$5,211
 $5,392
 See Notes to Consolidated Financial Statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)
Nine Months Ended September 30,
2023
2022 (1)
(in millions)
Cash Flows from Financing Activities
Investment certificates:
Proceeds from additions$8,572 $3,844 
Maturities, withdrawals and cash surrenders(5,279)(2,942)
Policyholder account balances:
Deposits and other additions1,033 766 
Net transfers from (to) separate accounts(89)(128)
Surrenders and other benefits(1,539)(989)
Change in banking deposits, net2,666 7,173 
Cash paid for purchased options with deferred premiums(49)(159)
Cash received from purchased options with deferred premiums251 230 
Issuance of long-term debt, net of issuance costs741 495 
Repayments of long-term debt(8)(507)
Dividends paid to shareholders(414)(401)
Repurchase of common shares(1,660)(1,490)
Borrowings of consolidated investment entities— 341 
Repayments of debt by consolidated investment entities(197)(1)
Other, net2 (19)
Net cash provided by (used in) financing activities4,030 6,213 
Effect of exchange rate changes on cash6 (116)
Net increase (decrease) in cash and cash equivalents, including amounts restricted(764)46 
Cash and cash equivalents, including amounts restricted, at beginning of period8,755 9,569 
Cash and cash equivalents, including amounts restricted, at end of period$7,991 $9,615 
Supplemental Disclosures:
Interest paid excluding consolidated investment entities$438 $89 
Interest paid by consolidated investment entities132 49 
Income taxes paid, net796 367 
Leased assets obtained in exchange for operating lease liabilities58 42 
September 30, 2023December 31, 2022
(in millions)
Reconciliation of cash and cash equivalents, including amounts restricted:
Cash and cash equivalents$7,010 $6,964 
Cash of consolidated investment entities91 133 
Restricted and segregated cash, cash equivalents and investments1,569 2,229 
Less: Restricted and segregated investments(679)(571)
Total cash and cash equivalents including amounts restricted per consolidated statements of cash flows$7,991 $8,755 
(1) Certain prior period amounts have been restated. See Note 3 for more information.
See Notes to Consolidated Financial Statements.

8
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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 Asset ManagementInvestments UK International Limited,TAM UK International Holdings SàrlLtd and Ameriprise Asset Management Holdings GmbHSingapore (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. See Note 3 for additional information on VIEs.
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. Except for the adjustment described below, allAll adjustments made were of a normal recurring nature.
In the first quarter of 2017, the Company recorded a $20 million decrease to income tax provision related to an out-of-period correction for a reversal of a tax reserve.
In the third quarter of 2017, the Company recorded a $14 million out-of-period correction related to a variable annuity model assumption that decreased amortization of deferred acquisition costs (“DAC”) by $10 million and decreased benefits, claims, losses and settlement expenses by $4 million.
The impact to prior period financial statements of these out-of-period corrections was not material.
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, 2016,2022, filed with the Securities and Exchange Commission (“SEC”) on February 23, 20172023 (“20162022 10-K”).
On July 13, 2023, the Company announced that it withdrew its application to convert Ameriprise Bank, FSB (“Ameriprise Bank”) to a state-chartered industrial bank and its application to establish a new limited purpose national trust bank. Ameriprise Bank will continue to operate as it does today, regulated by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation.
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. NoOther than disclosed in Note 12, no other subsequent events or transactions requiring recognition or disclosure were identified.
2. Summary of Significant Accounting Policies
The Company adopted accounting standard, Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts, on January 1, 2023. The significant accounting policies for market risk benefits (“MRB”); deferred acquisition costs (“DAC”); deferred sales inducement costs (“DSIC”); reinsurance; policyholder account balances, future policy benefits and claims; and unearned revenue liability were added or updated as a result of adopting the new accounting standard. See Note 3 for additional information related to the transition approach and adoption impact.
Amounts Based on Estimates and Assumptions
Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and the recognition of credit losses or impairments, valuation of derivative instruments, litigation reserves, future policy benefits, market risk benefits, and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ.
Market Risk Benefits
Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Market risk benefits include certain contract features on variable annuity products that provide minimum guarantees to contractholders. Guarantees accounted for as market risk benefits include guaranteed minimum death benefit (“GMDB”), guaranteed minimum income benefit (“GMIB”), guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum accumulation benefit (“GMAB”). If a contract contains multiple market risk benefits, those market risk benefits are bundled together as a single compound market risk benefit.
Market risk benefits are measured at fair value, at the individual contract level, using a non-option-based valuation approach or an option-based valuation approach dependent upon the fee structure of the contract. Changes in fair value are recognized in net income each period with the exception of the portion of the change in fair value due to a change in the instrument-specific credit risk, which is recognized in other comprehensive income (“OCI”).
Deferred Acquisition Costs
The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the
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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
amount of time spent on successful sales. Sales based compensation paid to advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as write-offs. These transactions are anticipated in establishing amortization periods and other valuation assumptions.
The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, and variable annuity benefit utilization each quarter and, when assessed independently, each could impact the Company’s DAC balances. Unamortized DAC is reduced for actual experience in excess of expected experience.
The analysis of DAC balances and the corresponding amortization considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year.
DAC is amortized on a constant-level basis for the grouped contracts over the expected contract term to approximate straight-line amortization. Contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability for future policy benefits. DAC related to all long-duration product types (except for life contingent payout annuities) is grouped on a calendar-year annual basis for each legal entity. Further disaggregation is reported for any contracts that include an additional liability for death or other insurance benefit. DAC related to life contingent payout annuities is grouped on a calendar-year annual basis for each legal entity for policies issued prior to 2021 and on a quarterly basis for each legal entity thereafter.
DAC related to annuity products (including variable deferred annuities, structured variable annuities, fixed deferred annuities, and life contingent payout annuities) is amortized based on initial premium. DAC related to life insurance products (including universal life (“UL”) insurance, variable universal life (“VUL”) insurance, indexed universal life (“IUL”) insurance, term life insurance, and whole life insurance) is amortized based on original specified amount (i.e., face amount). DAC related to disability income (“DI”) insurance is amortized based on original monthly benefit.
The accounting contract term for annuity products (except for life contingent payout annuities) is over the projected accumulation period. Life contingent payout annuities are amortized over the period which annuity payments are expected to be paid. The accounting contract term for life insurance products is over the projected life of the contract. DI insurance is amortized over the projected life of the contract, including the claim paying period.
Deferred Sales Inducement Costs
Deferred sales inducements are contract features that are intended to attract new customers or to persuade existing customers to keep their current policy. Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. DSIC is recorded in Other assets and amortization of DSIC is recorded in Benefits, claims, losses and settlement expenses.
Reinsurance
The Company cedes insurance risk to other insurers under reinsurance agreements.
Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums paid for traditional life, long term care (“LTC”), DI and life contingent payout annuities, net of the change in any prepaid reinsurance asset, are reported as a reduction of Premiums, policy and contract charges. Reinsurance recoveries are reported as components of Benefits, claims, losses and settlement expenses.
UL and VUL reinsurance premiums are reported as a reduction of Premiums, policy and contract charges. In addition, for UL and VUL insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is classified as an asset and amortized based on estimated gross profits over the period the reinsured policies are in force. Changes in the net cost of reinsurance are reflected as a component of Premiums, policy and contract charges.
Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within Receivables, net of the allowance for credit losses. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. The allowance for credit losses related to reinsurance recoverable is based on applying observable industry data including insurer ratings, default and loss severity data to the Company’s reinsurance recoverable balances. Management evaluates the results of the calculation and considers differences between the industry data and the Company’s data. Such differences include that
10
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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
the Company has no actual history of losses and that industry data may contain non-life insurers. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change given the long-term nature of these receivables. In addition, the Company has a reinsurance protection agreement that provides credit protections for its reinsured long term care business. The allowance for credit losses on reinsurance recoverable is recorded through provisions charged to Benefits, claims, losses and settlement expenses.
The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within Policyholder account balances, future policy benefits and claims.
Policyholder Account Balances, Future Policy Benefits and Claims
The Company establishes reserves to cover the benefits associated with non-traditional and traditional long-duration products and short-duration products. Non-traditional long-duration products include variable and structured variable annuity contracts, fixed annuity contracts and UL and VUL policies. Traditional long-duration products include term life, whole life, DI and LTC insurance products.
Non-Traditional Long-Duration Products
The liabilities for non-traditional long-duration products include fixed account values on variable and fixed annuities and UL and VUL policies, non-life contingent payout annuities, liabilities for guaranteed benefits associated with variable annuities (including structured variable annuities) and embedded derivatives for structured variable annuities, indexed annuities, and IUL products.
Liabilities for fixed account values on variable annuities, structured variable annuities, fixed deferred annuities, and UL and VUL policies are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. The liability for non-life contingent payout annuities is recognized as the present value of future payments using the effective yield at inception of the contract.
A portion of the Company’s UL and VUL policies have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The liability for these future losses is determined at the reporting date by estimating the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 9 for information regarding the liability for contracts with secondary guarantees.
Liabilities for fixed deferred indexed annuity, structured variable annuity and IUL products are equal to the accumulation of host contract values, guaranteed benefits, and the fair value of embedded derivatives.
See Note 11 for information regarding variable annuity guarantees.
Embedded Derivatives
The fair value of embedded derivatives related to structured variable annuities, indexed annuities and IUL fluctuate based on equity markets and interest rates and the estimate of the Company’s nonperformance risk and is recorded in Policyholder account balances, future policy benefits and claims. See Note 13 for information regarding the fair value measurement of embedded derivatives.
Traditional Long-Duration Products
The liabilities for traditional long-duration products include cash flows related to unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI, LTC, and life contingent payout annuity policies as claims are incurred in the future. The claim liability (also referred to as disabled life reserves) is presented together as one liability for future policy benefits.
A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. Expected insurance benefits are accrued over the life of the contract in proportion to premium revenue recognized (referred to as the net premium approach). The net premium ratio reflects cash flows from contract inception to contract termination (i.e., through the claim paying period) and cannot exceed 100%.
Assumptions utilized in the net premium approach, including mortality, morbidity and terminations, are reviewed as part of experience studies at least annually or more frequently if suggested by evidence. Expense assumptions and actual expenses are updated within the net premium calculation consistent with other policyholder assumptions.
The updated cash flows used in the calculation are discounted using a forward rate curve. The discount rate represents an upper-medium-grade (i.e., low credit risk) fixed-income instrument yield (i.e., an A rating) that reflects the duration characteristics of the
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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
liability. Discount rates will be locked in annually, at the end of each year for all products, except life contingent payout annuities, and calculated as the monthly average discount rate curves for the year. For life contingent payout annuities, the discount rates will be locked in quarterly at the end of each quarter based on the average of the three months for the quarter. 
The liability for future policy benefits will be updated for actual experience at least on an annual basis and concurrent with changes to cash flow assumptions. When net premiums are updated for cash flow changes, the estimated cash flows over the entire life of a group of contracts are updated using historical experience and updated future cash flow assumptions.
The revised net premiums are used to calculate an updated liability for future policy benefits as of the beginning of the reporting period, discounted at the original locked in rate (i.e., contract issuance rate). The updated liability for future policy benefits as of the beginning of the reporting period is then compared with the carrying amount of the liability as of that date prior to updating cash flow assumptions to determine the current period remeasurement gain or loss reflected in current period earnings. The revised net premiums are then applied as of the beginning of the quarter to calculate the benefit expense for the current reporting period.
The difference between the updated carrying amount of the liability for future policy benefits measured using the current discount rate assumption and the original discount rate assumption is recognized in OCI. The interest accretion rate remains the original discount rate used at contract issue date.
If the updating of cash flow assumptions results in the present value of future benefits and expenses exceeding the present value of future gross premiums, a charge to net income is recorded for the current reporting period such that net premiums are set equal to gross premiums. In subsequent periods, the liability for future policy benefits is accrued with net premiums set equal to gross premiums.
Contracts (except for life contingent payout annuities sold subsequent to December 31, 2020) are grouped into cohorts by contract type and issue year, as well as by legal entity and reportable segment. Life contingent payout annuities sold in periods beginning in 2021 are grouped into quarterly cohorts.
See Note 9 for information regarding the liabilities for traditional long-duration products.
Deferred Profit Liability
For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability (“DPL”). Gross premiums are measured using assumptions consistent with those used in the measurement of the liability for future policy benefits, including discount rate, mortality, lapses and expenses.
The DPL is amortized and recognized as premium revenue in proportion to expected future benefit payments from annuity contracts. Interest is accreted on the balance of the DPL using the discount rate determined at contract issuance. The Company reviews and updates its estimate of cash flows from the DPL at the same time as the estimates of cash flows for the liability for future policy benefits. When cash flows are updated, the updated estimates are used to recalculate the DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of the DPL as of the beginning of the current reporting period, and any difference is recognized as either a charge or credit to premium revenue.
DPL is recorded in Policyholder account balances, future policy benefits and claims and included as a reconciling item within the disaggregated rollforwards.
Unearned Revenue Liability
The Company’s UL and VUL policies require payment of fees or other policyholder assessments in advance for services to be provided in future periods. These charges are deferred as unearned revenue and amortized consistent with DAC amortization factors. The unearned revenue liability is recorded in Other liabilities and the amortization is recorded in Premiums, policy and contract charges.
For clients who pay financial planning fees prior to the advisor’s delivery of the financial plan, the financial planning fees received in advance are deferred until the plan is delivered to the client.
3.  Recent Accounting Pronouncements
Adoption of New Accounting Standards
Statement of Cash FlowsFinancial Instruments – Restricted CashCredit Losses – Troubled Debt Restructurings and Vintage Disclosures
In November 2016,March 2022, the Financial Accounting Standards Board (“FASB”) proposed amendments to Accounting Standards Update (“ASU”) 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
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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
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. The Company adopted the standard on January 1, 2023. The adoption of this update did not have a material impact on the Company’s consolidated results of operations and financial condition and modifications to disclosures are immaterial in the current period.
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 classificationprincipals of restricted cash on the statement of cash flows. The update requires entities to include restricted cash and restricted cash equivalents in cash and cash equivalent balances on the statement of cash flows and disclose a reconciliation between the balances on the statement of cash flows and the balance sheet.Topic 606. The standard is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted.2022. The Company early adopted the standard for the interim period ended March 31, 2017 on a retrospective basis. As a result of theJanuary 1, 2023. The adoption of the standard, restricted cash balances of $2.7 billion and $2.9 billion at September 30, 2017 and December 31, 2016, respectively, are included in the cash and cash equivalents balancesthis update did not have an impact on the Company’s consolidated statementsresults of cash flows. The impact of the change in restricted cash resulted in a $213 million increaseoperations and financial condition.
Financial Services – Insurance – Targeted Improvements to the Company’s operating cash flowsAccounting for the prior period presented.
Statement of Cash Flows – Classification of Certain Cash Receipts and Cash PaymentsLong-Duration Contracts
In August 2016,2018, the FASB updated the accounting standardsstandard related to classification of certain cash receipts and cash payments on the statement of cash flows.long-duration insurance contracts (ASU 2018-12). The update includes amendments to address diversity in practice for the classification of eight specific cash flow activities. The specific amendments the Company evaluated include the classification of debt prepayment and extinguishment costs, contingent consideration payments, proceeds from insurance settlements and corporate owned life insurance settlements, distributions from equity method investees and the applicationguidance changes elements of the predominance principlemeasurement models and disclosure requirements for an insurer’s long-duration insurance contract benefits and acquisition costs by expanding the use of fair value accounting to separately identifiablecertain contract benefits, requiring updates, if any, and at least annually, to assumptions used to measure liabilities for future policy benefits, changing the amortization pattern of deferred acquisition costs to a constant-level basis and removing certain shadow adjustments previously recorded in accumulated other comprehensive income (loss) (“AOCI”). Adoption of the accounting standard did not impact overall cash flows. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted and all amendments must be adopted duringflows, insurance subsidiaries’ dividend capacity, or regulatory capital requirements.
When the same period. The Company early adopted the standard effective January 1, 2023 with a transition date of January 1, 2021 (the “transition date”), opening equity was adjusted for the interim period ended March 31, 2017 on a retrospective basis.adoption impacts to retained earnings and AOCI and prior periods presented (i.e. 2021 and 2022) were restated. The adoption impact as of the standard did not haveJanuary 1, 2021 was a material impact on the Company’s operating, investing or financing cash flows.
Compensation – Stock Compensation
In March 2016, the FASB updated the accounting standards related to employee share-based payments. The update requires all excess tax benefitsreduction in total equity of $1.9 billion, of which $0.9 billion and tax deficiencies to be recognized as income tax expense or benefit$1.0 billion were reflected in the income statement. This change is required to be applied prospectively to excess tax benefitsretained earnings and tax deficiencies resulting from settlements after the date of adoption. NoAOCI, respectively.

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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

adjustment is recorded for any excess tax benefits or tax deficiencies previously recorded in additional paid in capital. The update also requires excess tax benefits to be classified along with other income tax cash flows as an operating activity infollowing table presents the statement of cash flows. This provision can be applied on either a prospective or retrospective basis. The update permits entities to make an accounting policy election to recognize forfeitures as they occur rather than estimating forfeitures to determine the recognition of expense for share-based payment awards. The standard is effective for interim and annual periods beginning after December 15, 2016 with early adoption permitted. The Company adopted the standard on January 1, 2017 on a prospective basis, except for the cash flow statement provision, which the Company applied on a retrospective basis. During periods in which the settlement date value differs materially from the grant date fair value ofcertainshare-basedpaymentawards, the Company may experience volatility in income tax recognized initsconsolidatedresultsofoperations. Duringthethreemonthsand nine months ended September 30, 2017, the Company recognized net excess tax benefits of $25 million and $57 million, respectively, as a reduction to the income tax provision in the consolidated statements of operations. The Company maintained its accounting policy of estimating forfeitures. As a resulteffects of the adoption of the above new accounting standard net excess tax benefitsto the Company’s previously reported Consolidated Balance Sheets:
 As Filed December 31, 2022AdjustmentPost-adoption December 31, 2022As Filed December 31, 2021AdjustmentPost-adoption December 31, 2021
(in millions)
Assets
Market risk benefits$— $1,015 $1,015 $— $539 $539 
Receivables (allowance for credit losses: 2022, $75; 2021, $55)15,779 (184)15,595 16,205 927 17,132 
Deferred acquisition costs3,160 (383)2,777 2,782 62 2,844 
Other assets9,341 (64)9,277 11,375 297 11,672 
Total assets$158,468 $384 $158,852 $175,910 $1,825 $177,735 
Liabilities and Equity
Liabilities:
Policyholder account balances, future policy benefits and claims$36,067 $(1,935)$34,132 $35,750 $(727)$35,023 
Market risk benefits— 2,118 2,118 — 3,440 3,440 
Other liabilities6,305 11 6,316 8,641 216 8,857 
Total liabilities154,855 194 155,049 169,969 2,929 172,898 
Equity:
Retained earnings19,531 387 19,918 17,525 (203)17,322 
Accumulated other comprehensive income (loss), net of tax(2,349)(197)(2,546)259 (901)(642)
Total equity3,613 190 3,803 5,941 (1,104)4,837 
Total liabilities and equity$158,468 $384 $158,852 $175,910 $1,825 $177,735 
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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The following tables present the effects of $57 million and $8 millionthe adoption of the above new accounting standard to the Company’s previously reported Consolidated Statements of Operations:
 Three Months Ended September 30,
As Filed 2022AdjustmentPost-adoption 2022As Filed 2021AdjustmentPost-adoption 2021
(in millions, except per share amounts)
Revenues
Distribution fees$506 $— $506 $458 $(3)$455 
Premiums, policy and contract charges361 (7)354 (805)(1)(806)
Total revenues3,506 (7)3,499 2,906 (4)2,902 
Total net revenues3,491 (7)3,484 2,903 (4)2,899 
Benefits and expenses
Distribution expenses1,195 3 1,198 1,285 4 1,289 
Benefits, claims, losses and settlement expenses370 (289)81 (719)(267)(986)
Remeasurement (gains) losses of future policy benefit reserves— (1)(1)— (2)(2)
Change in fair value of market risk benefits— (321)(321)— 341 341 
Amortization of deferred acquisition costs107 (49)58 9 54 63 
Total expenses2,806 (657)2,149 1,633 130 1,763 
Pretax income685 650 1,335 1,270 (134)1,136 
Income tax provision137 137 274 239 (29)210 
Net income$548 $513 $1,061 $1,031 $(105)$926 
Earnings per share
Basic$4.96 $4.64 $9.60 $8.86 $(0.90)$7.96 
Diluted$4.86 $4.55 $9.41 $8.65 $(0.88)$7.77 
 Nine Months Ended September 30,
As Filed 2022AdjustmentPost-adoption 2022As Filed 2021AdjustmentPost-adoption 2021
(in millions, except per share amounts)
Revenues
Distribution fees$1,410 $1 $1,411 $1,368 $(3)$1,365 
Premiums, policy and contract charges1,094 (60)1,034 (94)(33)(127)
Total revenues10,674 (59)10,615 9,681 (36)9,645 
Total net revenues10,654 (59)10,595 9,671 (36)9,635 
Benefits and expenses
Distribution expenses3,728 9 3,737 3,693 10 3,703 
Benefits, claims, losses and settlement expenses663 (746)(83)338 (816)(478)
Remeasurement (gains) losses of future policy benefit reserves— (6)(6)— (47)(47)
Change in fair value of market risk benefits— 298 298 — (135)(135)
Amortization of deferred acquisition costs355 (165)190 77 117 194 
Total expenses8,091 (610)7,481 7,187 (871)6,316 
Pretax income2,563 551 3,114 2,484 835 3,319 
Income tax provision498 116 614 425 177 602 
Net income$2,065 $435 $2,500 $2,059 $658 $2,717 
Earnings per share
Basic$18.42 $3.88 $22.30 $17.42 $5.57 $22.99 
Diluted$18.05 $3.80 $21.85 $17.03 $5.44 $22.47 
15
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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
 Years Ended December 31,
As Filed 2022AdjustmentPost-adoption 2022As Filed 2021AdjustmentPost-adoption 2021
(in millions, except per share amounts)
Revenues
Distribution fees$1,938 $1 $1,939 $1,830 $(2)$1,828 
Premiums, policy and contract charges1,411 (14)1,397 273 (52)221 
Total revenues14,347 (13)14,334 13,443 (54)13,389 
Total net revenues14,271 (13)14,258 13,431 (54)13,377 
Benefits and expenses
Distribution expenses4,923 12 4,935 5,015 13 5,028 
Benefits, claims, losses and settlement expenses1,372 (1,130)242 716 (872)(156)
Remeasurement (gains) losses of future policy benefit reserves— 1 1 — (52)(52)
Change in fair value of market risk benefits— 311 311 — (113)(113)
Amortization of deferred acquisition costs208 44 252 124 135 259 
Total expenses11,089 (762)10,327 10,081 (889)9,192 
Pretax income3,182 749 3,931 3,350 835 4,185 
Income tax provision623 159 782 590 178 768 
Net income$2,559 $590 $3,149 $2,760 $657 $3,417 
Earnings per share
Basic$22.99 $5.30 $28.29 $23.53 $5.60 $29.13 
Diluted$22.51 $5.19 $27.70 $23.00 $5.48 $28.48 
The adoption of the standard did not affect the previously reported totals for the nine monthsended September 30, 2017 and 2016, respectively, are included in the Other, net line within operating cash flows on the Company’s consolidated statements of cash flows.provided by (used in) operating, investing, or financing activities.
Future Adoption of New Accounting StandardsLeases – Common Control Arrangements
Derivatives and Hedging – Targeted Improvements to Accounting for Hedging Activities
In August 2017,March 2023, the FASB updatedproposed amendments to ASU 2016-02, Leases (“Topic 842”). The update applicable to all entities requires leasehold improvements associated with common control leases to be amortized over the accounting standards to amend the hedge accounting recognition and presentation requirements. The objectivesuseful life of the update are to better align the financial reporting of hedging relationshipsleasehold improvements to the economic results of an entity’s risk management activities and simplifycommon control group as long as the applicationlessee controls the use of the hedge accounting guidance.underlying asset through a lease and to be accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. The update also adds new disclosures and amends existing disclosure requirements. The standardamendment is effective for interim and annual periodsfiscal years beginning after December 15, 2018, and should be applied on a modified retrospective basis.2023, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition.
Receivables – Premium Amortization on Purchased Callable Debt Securities
In March 2017, the FASB updated the accounting standards to shorten the amortization periodpermitted for certain purchased callable debt securities held at a premium. Under current guidance, premiums are generally amortized over the contractual life of the security. The amendments require the premium to be amortized to the earliest call date. The update applies to securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. The standard is effective forboth interim and annual periods beginning after December 15, 2018,financial statements that have not yet been made available for issuance. The Company early adopted the update during the second quarter of 2023 and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earningswill apply the amendments prospectively as of the beginning of 2023 to all new and existing leasehold improvements recognized on or after that date with any remaining unamortized balance of existing leasehold improvements amortized over their remaining useful life to the periodcommon control group determined at that date. The adoption of adoption. Early adoption is permitted. Thethis update isdid not expected to have a material impact on the Company’s consolidated results of operations or financial condition.
Intangibles – Goodwill and Other – Simplifying the Test for Goodwill Impairment
In January 2017, the FASB updated the accounting standards to simplify the accounting for goodwill impairment. The update removes the hypothetical purchase price allocation (Step 2) of the goodwill impairment test. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value. The standard is effective for interim and annual periods beginning after December 15, 2019, and should be applied prospectively with early adoption permitted for any impairment tests performed after January 1, 2017. The update is not expected to have a material impact on the Company’s consolidated results of operations or financial condition.
Income Taxes – Intra-Entity Transfers of Assets Other Than Inventory
In October 2016, the FASB updated the accounting standards related to the recognition of income tax impacts on intra-entity transfers. The update requires entities to recognize the income tax consequences of intra-entity transfers, other than inventory, upon the transfer of the asset. The update requires the selling entity to recognize a current tax expense or benefit and the purchasing entity to recognize a deferred tax asset or liability when the transfer occurs. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition.
Financial Instruments – Measurement of Credit Losses
In June 2016, the FASB updated the accounting standards related to accounting for credit losses on certain types of financial instruments. The update replaces the current incurred loss model for estimating credit losses with a new model that requires an entity to estimate the credit losses expected over the life of the asset. Generally, the initial estimate of the expected credit losses and subsequent changes in the estimate will be reported in current period earnings and recorded through an allowance for credit losses on the balance sheet. The current credit loss model for Available-for-Sale debt securities does not change; however, the credit loss calculation and subsequent recoveries are required to be recorded through an allowance. The standard is effective for interim and annual periods beginning after December 15, 2019. Early adoption will be permitted for interim and annual periods beginning after December 15, 2018. A modified retrospective cumulative adjustment to retained earnings should be recorded as of the first reporting period in which the guidance is effective for loans, receivables, and other financial instruments subject to the new expected credit loss model. Prospective adoption is required for establishing an allowance related to Available-for-Sale debt securities, certain beneficial

16
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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

interests, and financial assets purchased with a more-than-insignificant amount of credit deterioration since origination. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition.
Leases – Recognition of Lease Assets and Liabilities on Balance Sheet
In February 2016, the FASB updated the accounting standards for leases. The update was issued to increase transparency and comparability for the accounting of lease transactions. The standard will require most lease transactions for lessees to be recorded on the balance sheet as lease assets and lease liabilities and both quantitative and qualitative disclosures about leasing arrangements. The Company currently discloses information related to operating lease arrangements within Note 23 of the 2016 10-K. The standard is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. The update should be applied at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the standard on its consolidated results of operations and financial condition.
Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities
In January 2016, the FASB updated the accounting standards on the recognition and measurement of financial instruments. The update requires entities to carry marketable equity securities, excluding investments in securities that qualify for the equity method of accounting, at fair value with changes in fair value reflected in net income each reporting period. The update affects other aspects of accounting for equity instruments, as well as the accounting for financial liabilities utilizing the fair value option. The update eliminates the requirement to disclose the methods and assumptions used to estimate the fair value of financial assets or liabilities held at cost on the balance sheet and requires entities to use the exit price notion when measuring the fair value of financial instruments. The standard is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted for certain provisions. Generally, the update should be applied using a modified retrospective approach by recording a cumulative-effect adjustment to equity at the beginning of the period of adoption. The update is not expected to have a material impact on the consolidated results of operations or financial condition.
4. Revenue from Contracts with Customers
In May 2014,The following tables present revenue disaggregated by segment on an adjusted operating basis with a reconciliation of segment revenues to those reported on the FASB updatedConsolidated Statements of Operations:
Three Months Ended September 30, 2023
Advice & Wealth ManagementAsset ManagementRetirement & Protection SolutionsCorporate & OtherTotal SegmentsNon-operating
Revenue		Total
(in millions)
Management and financial advice fees:
Asset management fees:
Retail$— $499 $— $— $499 $— $499 
Institutional— 165 — — 165 — 165 
Advisory fees1,228 — — — 1,228 — 1,228 
Financial planning fees102 — — — 102 — 102 
Transaction and other fees94 50 14 — 158 — 158 
Total management and financial advice fees1,424 714 14 — 2,152 — 2,152 
Distribution fees:
Mutual funds184 53 — — 237 — 237 
Insurance and annuity226 39 82 — 347 — 347 
Off-balance sheet brokerage cash58 — — — 58 — 58 
Other products84 — — — 84 — 84 
Total distribution fees552 92 82 — 726 — 726 
Other revenues57 2 — — 59 — 59 
Total revenue from contracts with customers2,033 808 96 — 2,937 — 2,937 
Revenue from other sources (1)
525 18 780 149 1,472 13 1,485 
Total segment gross revenues2,558 826 876 149 4,409 13 4,422 
Banking and deposit interest expense(151)— — (6)(157)— (157)
Total segment net revenues2,407 826 876 143 4,252 13 4,265 
Elimination of intersegment revenues(217)(21)(104)5 (337)(3)(340)
Total net revenues$2,190 $805 $772 $148 $3,915 $10 $3,925 
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Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Three Months Ended September 30, 2022
Advice & Wealth ManagementAsset ManagementRetirement & Protection SolutionsCorporate & OtherTotal SegmentsNon-operating
Revenue		Total
(in millions)
Management and financial advice fees:
Asset management fees:
Retail$— $509 $— $— $509 $— $509 
Institutional— 159 — — 159 — 159 
Advisory fees1,107 — — — 1,107 — 1,107 
Financial planning fees97 — — — 97 — 97 
Transaction and other fees93 51 15 — 159 — 159 
Total management and financial advice fees1,297 719 15 — 2,031 — 2,031 
Distribution fees:
Mutual funds180 56 — — 236 — 236 
Insurance and annuity205 40 84 — 329 — 329 
Off-balance sheet brokerage cash (2)
110 — — — 110 — 110 
Other products84 — — — 84 — 84 
Total distribution fees579 96 84 — 759 — 759 
Other revenues51 1 — — 52 — 52 
Total revenue from contracts with customers1,927 816 99 — 2,842 — 2,842 
Revenue from other sources (1)
225 7 684 117 1,033 (55)978 
Total segment gross revenues2,152 823 783 117 3,875 (55)3,820 
Banking and deposit interest expense(15)— — (2)(17)— (17)
Total segment net revenues2,137 823 783 115 3,858 (55)3,803 
Elimination of intersegment revenues(202)(14)(101)1 (316)(3)(319)
Total net revenues$1,935 $809 $682 $116 $3,542 $(58)$3,484 
18
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Nine Months Ended September 30, 2023
Advice & Wealth ManagementAsset ManagementRetirement & Protection SolutionsCorporate & OtherTotal SegmentsNon-operating
Revenue		Total
(in millions)
Management and financial advice fees:
Asset management fees:
Retail$— $1,480 $— $— $1,480 $— $1,480 
Institutional— 474 — — 474 — 474 
Advisory fees3,491 — — — 3,491 — 3,491 
Financial planning fees307 — — — 307 — 307 
Transaction and other fees279 146 42 — 467 — 467 
Total management and financial advice fees4,077 2,100 42 — 6,219 — 6,219 
Distribution fees:
Mutual funds538 156 — — 694 — 694 
Insurance and annuity659 116 244 — 1,019 — 1,019 
Off-balance sheet brokerage cash268 — — — 268 — 268 
Other products249 — — — 249 — 249 
Total distribution fees1,714 272 244 — 2,230 — 2,230 
Other revenues174 14 — — 188 — 188 
Total revenue from contracts with customers5,965 2,386 286 — 8,637 — 8,637 
Revenue from other sources (1)
1,435 47 2,272 430 4,184 113 4,297 
Total segment gross revenues7,400 2,433 2,558 430 12,821 113 12,934 
Banking and deposit interest expense(385)— — (13)(398)— (398)
Total segment net revenues7,015 2,433 2,558 417 12,423 113 12,536 
Elimination of intersegment revenues(629)(57)(310)12 (984)(9)(993)
Total net revenues$6,386 $2,376 $2,248 $429 $11,439 $104 $11,543 


19
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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Nine Months Ended September 30, 2022
Advice & Wealth ManagementAsset ManagementRetirement & Protection SolutionsCorporate & OtherTotal SegmentsNon-operating
Revenue		Total
(in millions)
Management and financial advice fees:
Asset management fees:
Retail$— $1,696 $— $— $1,696 $— $1,696 
Institutional— 527 — — 527 — 527 
Advisory fees3,442 — — — 3,442 — 3,442 
Financial planning fees293 — — — 293 — 293 
Transaction and other fees282 160 46 — 488 — 488 
Total management and financial advice fees4,017 2,383 46 — 6,446 — 6,446 
Distribution fees:
Mutual funds570 179 — — 749 — 749 
Insurance and annuity642 128 267 — 1,037 — 1,037 
Off-balance sheet brokerage cash (2)
180 — — — 180 — 180 
Other products258 — — — 258 — 258 
Total distribution fees1,650 307 267 — 2,224 — 2,224 
Other revenues158 7 — — 165 — 165 
Total revenue from contracts with customers5,825 2,697 313 — 8,835 — 8,835 
Revenue from other sources (1)
430 24 1,998 352 2,804 (9)2,795 
Total segment gross revenues6,255 2,721 2,311 352 11,639 (9)11,630 
Banking and deposit interest expense(20)— — (2)(22)— (22)
Total segment net revenues6,235 2,721 2,311 350 11,617 (9)11,608 
Elimination of intersegment revenues(651)(37)(318)1 (1,005)(8)(1,013)
Total net revenues$5,584 $2,684 $1,993 $351 $10,612 $(17)$10,595 
(1) Revenues not included in the accounting standards forscope of the revenue from contracts with customers.customers standard. The update provides a five stepamounts primarily consist of revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are in the scope of other standards). The standard also updates the accounting for certain costs associated with obtaininginsurance and fulfilling a customer contractannuity products and requires disclosureinvestment income from financial instruments.
(2) Prior to the fourth quarter of quantitative and qualitative information that enables users of financial statements2022, Off-balance sheet brokerage cash was included in Other products. Prior periods have been updated to understandbe comparative.
The following discussion describes the nature, amount, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers. Subsequent related updates provide clarificationcustomers on certaina 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 guidancepattern 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
20
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
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.
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 $156 million and $160 million as of September 30, 2023 and December 31, 2022, respectively.
The Company pays sales commissions to advisors when a new standard.financial planning contract is obtained or when an existing contract is renewed. The standard is effective for interim and annual periods beginning after December 15, 2017 and early adoption is permitted for interim and annual periods beginning after December 15, 2016. The standard may be applied retrospectively for all periods presented or retrospectivelysales commissions paid to the advisors prior to financial plan delivery are considered costs to obtain a contract with a cumulative-effect adjustment atcustomer and are initially capitalized. When the dateperformance 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 $126 million and $129 million as of adoption. September 30, 2023 and December 31, 2022, respectively.
Transaction and Other Fees
The Company plansearns 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 adopt theassets under management or an annual fixed fee for each fund position. Networking and sub-accounting revenue recognition guidanceis 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 retrospective basis in the first quarter of 2018. The update does not apply to revenue associated with the manufacturing of insurance and annuity productsquarterly or financial instruments as these revenues are in the scope of other standards. Therefore, the Company does not expect the update to have an impact on these revenues. The Company’s implementation efforts include the identification of revenue within the guidance and the reviewannual fixed fee for each account. Each of the customer contractssupport 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 determinebrokerage 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 $13 million and nil as of September 30, 2023 and December 31, 2022, 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
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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
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 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.
Off-Balance Sheet Brokerage Cash
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 associated timingcontract term. The revenue is earned daily and settled monthly based on a rate applied, as a percentage, to the deposits placed.
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. 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).
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 determined that certain payments received primarilyan asset of $27 million and $33 million as of September 30, 2023 and December 31, 2022, respectively, related to franchise advisor fees should be presented as revenue rather than a reductionthe transition of expense. The Company expects the impact of this changeinvestment advisory services under an arrangement with BMO Financial Group for clients that elected to be an increase to both revenuestransfer U.S. retail and expenses of approximately $95 million to $120 million. The Company does not expect a material impactinstitutional assets to the timingCompany.
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 $504 million and $537 million as of revenue recognition; however, the Company’s implementation effort to assess the impact of the standard is still in process.September 30, 2023 and December 31, 2022, respectively.
3.5.  Variable Interest Entities
The Company provides asset management services to investment entities which are considered to be VIEs, such as collateralized loan obligations (“CLOs”),CLOs, hedge funds and other private funds, property funds and certain internationalnon-U.S. series funds (Open Ended Investment Companies(such as OEICs and Societes d’Investissement A Capital Variable) and private equity fundsSICAVs) (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 if the Company is deemed to be the primary beneficiary, it will consolidate the VIE.beneficiary. The Company has no obligation to provide financial or other support to the non-consolidated VIEs beyond its initial investment nor hasand existing future funding commitments, and the Company has not provided any additional support to these entities. The Company has unfunded commitments related to consolidated CLOs of $24 million and $30 million as of September 30, 2023 and December 31, 2022, 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
22
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
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

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


and, in certain instances, may also receive incentive fees. The fee arrangement is at market and commensurate with the 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 determinedthe power to direct the activities that consolidation is required for certain CLOs.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 investments amortized cost, which was $6 million and $9$1 million as of both September 30, 20172023 and December 31, 2016, respectively.2022. The Company classifies these investments as Available-for-Sale securities. See Note 46 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 $26$63 million and $57 million as of both September 30, 20172023 and December 31, 2016.2022, respectively.
Hedge Funds and other Private Equity Funds
The Company has determined that consolidation isdoes not required forconsolidate hedge funds and other private equity 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.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 $7 million and $13 millionnil as of both September 30, 20172023 and December 31, 2016, respectively.2022.
InternationalNon-U.S. Series Funds
The Company manages internationalnon-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 assetsinvestments and was $26 $30 million and $33$25 million as of September 30, 20172023 and December 31, 2016,2022, 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 $455$77 million and $482$92 million as of September 30, 20172023 and December 31, 2016,2022, respectively. The Company had a $114liability of $6 million and $135$7 million liability recorded as of September 30, 20172023 and December 31, 2016,2022, 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 above mentioned 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 mortgage backed securities 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 carrying value.amortized cost. See Note 46 for additional information on these structured investments.

23
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)(Continued)


Fair Value of Assets and Liabilities
The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 1013 for the definition of the three levels of the fair value hierarchy.
The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:
 September 30, 2023
Level 1Level 2Level 3Total
(in millions)
Assets
Investments:
Corporate debt securities$— $39 $— $39 
Common stocks— 6 — 6 
Syndicated loans— 2,067 54 2,121 
Total investments— 2,112 54 2,166 
Receivables— 29 — 29 
Other assets— — — — 
Total assets at fair value$— $2,141 $54 $2,195 
Liabilities
Debt (1)
$— $2,222 $— $2,222 
Other liabilities— 37 — 37 
Total liabilities at fair value$— $2,259 $— $2,259 
September 30, 2017 December 31, 2022
Level 1 Level 2 Level 3 TotalLevel 1Level 2Level 3Total
(in millions)(in millions)
AssetsAssetsAssets
Investments:Investments:Investments:
Corporate debt securities$—
 $29
 $—
 $29
Corporate debt securities$— $35 $— $35 
Common stocks22
 11
 4
 37
Common stocks— 3 — 3 
Other investments4
 —
 —
 4
Syndicated loans—
 1,963
 182
 2,145
Syndicated loans— 2,191 125 2,316 
Total investments26
 2,003
 186
 2,215
Total investments— 2,229 125 2,354 
Receivables—
 9
 —
 9
Receivables— 20 — 20 
Other assetsOther assets— 1 1 2 
Total assets at fair value$26
 $2,012
 $186
 $2,224
Total assets at fair value$— $2,250 $126 $2,376 
LiabilitiesLiabilitiesLiabilities
Debt (1)
$—
 $2,267
 $—
 $2,267
Debt (1)
$— $2,363 $— $2,363 
Other liabilities—
 43
 —
 43
Other liabilities— 119 — 119 
Total liabilities at fair value$—
 $2,310
 $—
 $2,310
Total liabilities at fair value$— $2,482 $— $2,482 
(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 $2.2 billion and $2.4 billion as of September 30, 2023 and December 31, 2022, respectively.
24
 December 31, 2016
Level 1 Level 2 Level 3 Total
(in millions)
Assets
Investments:
Corporate debt securities$—
 $19
 $—
 $19
Common stocks22
 6
 5
 33
Other investments4
 —
 —
 4
Syndicated loans—
 1,944
 254
 2,198
Total investments26
 1,969
 259
 2,254
Receivables—
 11
 —
 11
Total assets at fair value$26
 $1,980
 $259
 $2,265
 
Liabilities
Debt (1)
$—
 $2,319
 $—
 $2,319
Other liabilities—
 95
 —
 95
Total liabilities at fair value$—
 $2,414
 $—
 $2,414
(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 $2.2 billion and $2.3 billion as of September 30, 2017 and December 31, 2016, respectively.

Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

The following tables provide a summary of changes in Level 3 assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:
 Corporate Debt Securities Common Stocks Syndicated Loans 
(in millions)
Balance, July 1, 2017$—
 $7
 $185
 
Total gains (losses) included in:
Net income—
 1
(1) 
(1)
(1) 
Purchases—
 —
 6
 
Sales—
 —
 (12) 
Settlements—
 —
 (3) 
Transfers into Level 3—
 —
 84
 
Transfers out of Level 3—
 (4) (77) 
Balance, September 30, 2017$—
 $4
 $182
 
Changes in unrealized gains (losses) included in income relating to assets held at September 30, 2017$—
 $1
(1) 
$—
 
Syndicated Loans
(in millions)
Balance at July 1, 2023$67 
Purchases4 
Settlements(1)
Transfers into Level 322 
Transfers out of Level 3(38)
Balance at September 30, 2023$54 
Changes in unrealized gains (losses) included in net income relating to assets held at September 30, 2023$2 
 Common StocksSyndicated Loans
(in millions)
Balance at July 1, 2022$2 $95 
Total gains (losses) included in:
Net income— (4)(1)
Purchases— 42 
Sales— (3)
Settlements— (1)
Transfers into Level 3— 61 
Transfers out of Level 3(2)(25)
Balance at September 30, 2022$— $165 
Changes in unrealized gains (losses) included in net income relating to assets held at September 30, 2022$— $(5)(1)
Syndicated LoansOther Assets
(in millions)
Balance at January 1, 2023$125 $1 
Total gains (losses) included in:
Net income(3)(1)— 
Purchases31 — 
Sales(10)— 
Settlements(16)— 
Transfers into Level 382 — 
Transfers out of Level 3(155)(1)
Balance at September 30, 2023$54 $— 
Changes in unrealized gains (losses) included in net income relating to assets held at September 30, 2023$2 (1)$— 
25
 Common Stocks Syndicated Loans Other Assets 
(in millions)
Balance at July 1, 2016$1
 $243
 $1
 
Total gains (losses) included in:
Net income—
 2
(1) 
—
 
Purchases1
 50
 —
 
Sales—
 (10) —
 
Settlements—
 (26) —
 
Transfers into Level 31
 57
 —
 
Transfers out of Level 3—
 (120) —
 
Balance, September 30, 2016$3
 $196
 $1
 
Changes in unrealized gains (losses) included in income relating to assets held at September 30, 2016$—
 $2
(1) 
$—
 
 Corporate Debt Securities Common Stocks Syndicated Loans 
(in millions)
Balance, January 1, 2017$—
 $5
 $254
 
Total gains (losses) included in:
Net income—
 1
(1) 
—
 
Purchases—
 3
 133
 
Sales(2) (1) (27) 
Settlements—
 —
 (56) 
Transfers into Level 32
 2
 197
 
Transfers out of Level 3—
 (6) (319) 
Balance, September 30, 2017$—
 $4
 $182
 
Changes in unrealized gains (losses) included in income relating to assets held at September 30, 2017$—
 $1
(1) 
$(2)
(1) 

Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

 Common StocksSyndicated LoansOther Assets
(in millions)
Balance at January 1, 2022$— $64 $3 
Total gains (losses) included in:
Net income— (7)(1)— 
Purchases— 64 — 
Sales— (4)— 
Settlements— (8)— 
Transfers into Level 32 173 — 
Transfers out of Level 3(2)(117)(3)
Balance at September 30, 2022$— $165 $— 
Changes in unrealized gains (losses) included in net income relating to assets held at September 30, 2022$— $(5)(1)$— 
 Common Stocks Syndicated Loans Other Assets Debt 
(in millions)
Balance at January 1, 2016, previously reported$3
 $529
 $2,065
 $(6,630) 
Cumulative effect of change in accounting policies (3)
(2) (304) (2,065) 6,630
 
Balance at January 1, 2016, as adjusted1
 225
 —
 —
 
Total gains (losses) included in:
Net income—
 1
(1) 
1
(2) 
—
 
Purchases1
 100
 —
 —
 
Sales—
 (11) —
 —
 
Settlements—
 (51) —
 —
 
Transfers into Level 33
 286
 —
 —
 
Transfers out of Level 3(2) (354) —
 —
 
Balance, September 30, 2016$3
 $196
 $1
 $—
 
Changes in unrealized gains (losses) included in income relating to assets and liabilities held at September 30, 2016$—
 $1
(1) 
$—
 $—
 
(1) Included in netNet investment income in the Consolidated Statements of Operations.
(2) Included in other revenues in the Consolidated Statements of Operations.
(3) The cumulative effect of change in accounting policies includes the adoption impact of ASU 2015-02 and ASU 2014-13 – Consolidation: Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity (“ASU 2014-13”).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. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2.
All Level 3 measurements as of September 30, 20172023 and December 31, 20162022 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.
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 loans 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 the 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.
See Note 1013 for a description of the Company’s determination of the fair value of corporate debt securities, U.S. government and agencies obligations, 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 termshort-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

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


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. The fair value of the CLOs’ debtassets 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.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.
26
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The followingtablepresentsthefairvalueandunpaidprincipalbalanceofloansanddebtforwhichthefairvalueoptionhasbeenelected:
 September 30, 2023December 31, 2022
(in millions)
Syndicated loans
Unpaid principal balance$2,260 $2,525 
Excess unpaid principal over fair value(139)(209)
Fair value$2,121 $2,316 
Fair value of loans more than 90 days past due$— $— 
Fair value of loans in nonaccrual status13 23 
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both47 48 
Debt
Unpaid principal balance$2,440 $2,636 
Excess unpaid principal over fair value(218)(273)
Carrying value (1)
$2,222 $2,363 
 September 30,
2017		 December 31, 2016
(in millions)
Syndicated loans
Unpaid principal balance$2,215
 $2,281
Excess unpaid principal over fair value(70) (83)
Fair value$2,145
 $2,198
Fair value of loans more than 90 days past due$12
 $8
Fair value of loans in nonaccrual status12
 8
Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both26
 34
 
Debt
Unpaid principal balance$2,400
 $2,459
Excess unpaid principal over carrying value(133) (140)
Carrying value (1)
$2,267
 $2,319
(1) The carrying value of the CLOs’ debtis set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.2 billion and $2.3$2.4 billion as of September 30, 20172023 and December 31, 2016,2022, respectively.
Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in netNet 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 netNet investment income. Interest expense on debt is recorded in interestInterest and debt expense with gains and losses related to changes in the fair value of debt recorded in netNet investment income.
Total net gains (losses) recognized in netNet investment income related to the changes in the fair value of financial assets and liabilities for whichinvestments the Company owns in the consolidated CLOs where it has elected the fair value option was electedand collateralized financing entity accounting were $(1) million and nilimmaterial for both the three months ended September 30, 2017 and 2016, respectively.
Total net gains (losses) recognized in net investment income related to changes in the fair value of financial assets and liabilities for which the fair value option was elected were $(3) million and $(5) million for the nine months ended September 30, 20172023 and 2016, respectively.2022.
Debt of the consolidated investment entities and the stated interest rates were as follows:
 Carrying Value Weighted Average Interest Rate
September 30,
2017		 December 31,
2016		September 30,
2017		 December 31,
2016
(in millions) 
Debt of consolidated CLOs due 2025-2026$2,267
 $2,319
 2.7% 2.5%
 Carrying ValueWeighted Average Interest Rate
September 30, 2023December 31, 2022September 30, 2023December 31, 2022
(in millions) 
Debt of consolidated CLOs due 2028-2034$2,222 $2,363 6.6 %5.3 %
The debt of the consolidated CLOs has both fixed and floating interest rates, which range from 0%nil to 7.3%14.8%. The interest rates on the debt of CLOs are weighted average rates based on the outstanding principal and contractual interest rates.
6.  Investments
The following is a summary of Ameriprise Financial investments:
September 30, 2023December 31, 2022
(in millions)
Available-for-Sale securities, at fair value$48,193 $40,811 
Mortgage loans (allowance for credit losses: 2023, $14; 2022, $12)2,064 1,987 
Policy loans890 847 
Other investments (allowance for credit losses: 2023, $6; 2022, $5)848 879 
Total$51,995 $44,524 
Other investments primarily reflect the Company’s interests in affordable housing partnerships, trading securities, equity securities, seed money investments in proprietary funds, syndicated loans, credit card receivables and certificates of deposit with original or remaining maturities at the time of purchase of more than 90 days.

27
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)(Continued)


4.  Investments
The following is a summary of Ameriprise Financial investments:
 September 30,
2017		 December 31,
2016
(in millions)
Available-for-Sale securities, at fair value$30,826
 $30,719
Mortgage loans, net3,000
 2,986
Policy and certificate loans841
 831
Other investments1,535
 1,298
Total$36,202
 $35,834
The following is a summary of netNet investment income:
Three Months Ended September 30, Nine Months Ended September 30,Three Months Ended September 30,Nine Months Ended September 30,
2017 20162017 20162023202220232022
(in millions)(in millions)
Investment income on fixed maturities$340
 $342
 $1,012
 $1,028
Investment income on fixed maturities$693 $363 $1,909 $836 
Net realized gains (losses)(3) 6
 35
 (5)Net realized gains (losses)(37)(87)(27)(82)
Affordable housing partnerships(17) (17) (42) (35)Affordable housing partnerships(5)(11)(8)(37)
Consolidated investment entitiesConsolidated investment entities46 33 133 70 
Other26
 25
 70
 13
Other112 51 311 110 
Consolidated investment entities26
 31
 79
 89
Total$372
 $387
 $1,154
 $1,090
Total$809 $349 $2,318 $897 
Available-for-Sale securities distributed by type were as follows:
September 30, 2023
Description of SecuritiesAmortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesFair Value
 (in millions)
Corporate debt securities$12,206 $104 $(1,023)$— $11,287 
Residential mortgage backed securities21,090 9 (1,810)— 19,289 
Commercial mortgage backed securities6,489 4 (452)— 6,041 
Asset backed securities8,377 13 (91)— 8,299 
State and municipal obligations728 31 (29)(1)729 
U.S. government and agency obligations2,468 — (2)— 2,466 
Foreign government bonds and obligations19 — (2)— 17 
Other securities66 — (1)— 65 
Total$51,443 $161 $(3,410)$(1)$48,193 
Description of SecuritiesDescription of SecuritiesSeptember 30, 2017Description of SecuritiesDecember 31, 2022
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 
Noncredit OTTI (1)
Amortized CostGross Unrealized GainsGross Unrealized LossesAllowance for Credit LossesFair Value
(in millions)(in millions)
Corporate debt securitiesCorporate debt securities$14,528
 $1,145
 $(23) $15,650
 $—
Corporate debt securities$10,361 $180 $(823)$(20)$9,698 
Residential mortgage backed securitiesResidential mortgage backed securities6,740
 79
 (29) 6,790
 —
Residential mortgage backed securities17,056 37 (1,390)— 15,703 
Commercial mortgage backed securitiesCommercial mortgage backed securities3,917
 62
 (27) 3,952
 —
Commercial mortgage backed securities6,648 3 (439)— 6,212 
Asset backed securitiesAsset backed securities1,611
 39
 (4) 1,646
 5
Asset backed securities6,408 14 (158)— 6,264 
State and municipal obligationsState and municipal obligations2,216
 249
 (10) 2,455
 —
State and municipal obligations773 53 (27)(2)797 
U.S. government and agencies obligations5
 1
 —
 6
 —
U.S. government and agency obligationsU.S. government and agency obligations2,079 1 (1)— 2,079 
Foreign government bonds and obligationsForeign government bonds and obligations292
 21
 (5) 308
 —
Foreign government bonds and obligations43 — (2)— 41 
Common stocks9
 11
 (1) 19
 6
Other securitiesOther securities16 1 — — 17 
TotalTotal$29,318
 $1,607
 $(99) $30,826
 $11
Total$43,384 $289 $(2,840)$(22)$40,811 

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


Description of SecuritiesDecember 31, 2016
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 
Noncredit OTTI (1)
 (in millions)
Corporate debt securities$15,231
 $1,065
 $(60) $16,236
 $—
Residential mortgage backed securities6,899
 86
 (67) 6,918
 (3)
Commercial mortgage backed securities3,347
 59
 (39) 3,367
 —
Asset backed securities1,532
 33
 (16) 1,549
 5
State and municipal obligations2,195
 198
 (35) 2,358
 —
U.S. government and agencies obligations7
 1
 —
 8
 —
Foreign government bonds and obligations251
 17
 (7) 261
 —
Common stocks10
 13
 (1) 22
 6
Total$29,472
 $1,472
 $(225) $30,719
 $8
(1)
Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (“AOCI”). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period.
As of September 30, 20172023 and December 31, 2016, investment securities with a fair value2022, accrued interest of $1.7 billion and $1.6 billion, respectively, were pledged to meet contractual obligations under derivative contracts and short-term borrowings, of which $793$326 million and $473$237 million, respectively, may be sold, pledged or rehypothecated byis excluded from the counterparty.amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Receivables.
As of September 30, 20172023 and December 31, 2016,2022, fixed maturity securities comprised approximately 85%93% and 86%92%, 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 both September 30, 20172023 and December 31, 2016,2022, the Company’s internal analysts rated $1.1 billion$278 million and $270 million, respectively, of securities using criteria similar to those used by NRSROs.
28
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
A summary of fixed maturity securities by rating was as follows:
RatingsSeptember 30, 2023December 31, 2022
Amortized CostFair ValuePercent of Total Fair ValueAmortized CostFair ValuePercent of Total Fair Value
 (in millions, except percentages)
AAA$24,795 $23,421 49 %$30,900 $28,980 71 %
AA13,433 12,510 26 1,219 1,249 3 
A2,738 2,655 5 2,080 2,097 5 
BBB10,142 9,291 19 8,524 7,890 19 
Below investment grade (1)
335 316 1 661 595 2 
Total fixed maturities$51,443 $48,193 100 %$43,384 $40,811 100 %
RatingsSeptember 30, 2017 December 31, 2016
Amortized Cost Fair Value 
Percent of 
Total Fair Value
Amortized Cost Fair Value 
Percent of 
Total Fair Value
 (in millions, except percentages)
AAA$10,444
 $10,528
 34% $9,252
 $9,305
 31%
AA1,914
 2,132
 7
 1,729
 1,906
 6
A4,986
 5,453
 18
 5,157
 5,567
 18
BBB10,745
 11,435
 37
 11,739
 12,340
 40
Below investment grade (1)
1,220
 1,259
 4
 1,585
 1,579
 5
Total fixed maturities$29,309
 $30,807
 100% $29,462
 $30,697
 100%
(1) The amortized cost of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $1 million as of both September 30, 2023 and December 31, 2022. The fair value of below investment grade securities includes interest in non-consolidated CLOs managed by the Company of $1 million as of both September 30, 2023 and December 31, 2022. These securities are not rated but are included in below investment grade due to their risk characteristics.
(1)
The amortized cost and fair value of below investment grade securities includes interest in CLOs managed by the Company of $6 million and $11 million, respectively, at September 30, 2017, and $9 million and $14 million, respectively, at December 31, 2016. These securities are not rated but are included in below investment grade due to their risk characteristics.
As of September 30, 20172023, approximately 82% of securities rated AA were GNMA, FNMA and FHLMC mortgage backed securities. These issuers were downgraded in the third quarter of 2023 from AAA to AA due to the downgrade of the U.S. Government long-term credit rating. As of December 31, 2016,2022, approximately 41% and 47%, respectively,30% of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of the Company’s total equity.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


equity as of both September 30, 2023 and December 31, 2022.
The following tables provide information aboutsummarize the fair value and gross unrealized losses on Available-for-Sale securities, with gross unrealized lossesaggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position:
Description of SecuritiesSeptember 30, 2017
Less than 12 months 12 months or more Total
Number of Securities Fair Value Unrealized LossesNumber of Securities Fair Value Unrealized LossesNumber of Securities Fair Value Unrealized Losses
 (in millions, except number of securities)
Corporate debt securities106
 $1,151
 $(7) 34
 $325
 $(16) 140
 $1,476
 $(23)
Residential mortgage backed securities113
 1,901
 (16) 109
 993
 (13) 222
 2,894
 (29)
Commercial mortgage backed securities90
 1,391
 (21) 19
 210
 (6) 109
 1,601
 (27)
Asset backed securities33
 398
 (2) 16
 105
 (2) 49
 503
 (4)
State and municipal obligations89
 176
 (1) 16
 142
 (9) 105
 318
 (10)
Foreign government bonds and obligations6
 19
 —
 14
 21
 (5) 20
 40
 (5)
Common stocks—
 —
 —
 3
 1
 (1) 3
 1
 (1)
Total437
 $5,036
 $(47) 211
 $1,797
 $(52) 648
 $6,833
 $(99)
Description of SecuritiesDecember 31, 2016
Less than 12 months 12 months or more Total
Number of Securities Fair Value Unrealized LossesNumber of Securities Fair Value Unrealized LossesNumber of Securities Fair Value Unrealized Losses
 (in millions, except number of securities)
Corporate debt securities187
 $2,452
 $(33) 38
 $377
 $(27) 225
 $2,829
 $(60)
Residential mortgage backed securities127
 2,533
 (33) 177
 1,290
 (34) 304
 3,823
 (67)
Commercial mortgage backed securities100
 1,583
 (39) 5
 43
 —
 105
 1,626
 (39)
Asset backed securities48
 524
 (9) 27
 298
 (7) 75
 822
 (16)
State and municipal obligations181
 374
 (14) 3
 110
 (21) 184
 484
 (35)
Foreign government bonds and obligations7
 30
 (1) 15
 23
 (6) 22
 53
 (7)
Common stocks—
 —
 —
 3
 1
 (1) 3
 1
 (1)
Total650
 $7,496
 $(129) 268
 $2,142
 $(96) 918
 $9,638
 $(225)
As part of Ameriprise Financial’s ongoing monitoring process, management determined that the change in gross unrealized losses on its Available-for-Sale securities is attributable to a decline in interest rates on the long end of the interest rate curve and tighter credit spreads.
The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Operationsposition for other-than-temporary impairments related towhich no allowance for credit losses on Available-for-Sale securities for which a portion of the securities’ total other-than-temporary impairments was recognized in other comprehensive income (loss) (“OCI”):has been recorded:
Description of SecuritiesSeptember 30, 2023
Less than 12 Months12 Months or MoreTotal
Number of SecuritiesFair ValueUnrealized LossesNumber of SecuritiesFair ValueUnrealized LossesNumber of SecuritiesFair ValueUnrealized Losses
 (in millions, except number of securities)
Corporate debt securities293 $4,854 $(204)396 $5,053 $(819)689 $9,907 $(1,023)
Residential mortgage backed securities230 7,386 (193)738 10,569 (1,617)968 17,955 (1,810)
Commercial mortgage backed securities43 932 (18)282 4,099 (434)325 5,031 (452)
Asset backed securities74 1,770 (9)122 3,273 (82)196 5,043 (91)
State and municipal obligations12 77 (3)59 140 (26)71 217 (29)
U.S. government and agency obligations17 1,148 (2)1 — — 18 1,148 (2)
Foreign government bonds and obligations1 5 — 3 12 (2)4 17 (2)
Other securities5 65 (1)— — — 5 65 (1)
Total675 $16,237 $(430)1,601 $23,146 $(2,980)2,276 $39,383 $(3,410)
29
 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions)
Beginning balance$2
 $81
 $69
 $85
Credit losses for which an other-than-temporary impairment was not previously recognized—
 —
 —
 1
Credit losses for which an other-than-temporary impairment was previously recognized—
 —
 1
 —
Reductions for securities sold during the period (realized)—
 —
 (68) (5)
Ending balance$2
 $81
 $2
 $81

Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

Description of SecuritiesDecember 31, 2022
Less than 12 Months12 Months or MoreTotal
Number of SecuritiesFair ValueUnrealized LossesNumber of SecuritiesFair ValueUnrealized LossesNumber of SecuritiesFair ValueUnrealized Losses
(in millions, except number of securities)
Corporate debt securities457 $5,782 $(458)108 $1,575 $(365)565 $7,357 $(823)
Residential mortgage backed securities589 9,407 (577)244 4,076 (813)833 13,483 (1,390)
Commercial mortgage backed securities249 3,857 (220)101 1,802 (219)350 5,659 (439)
Asset backed securities145 4,413 (86)31 977 (72)176 5,390 (158)
State and municipal obligations48 134 (16)27 60 (11)75 194 (27)
U.S. government and agency obligations13 566 (1)— — — 13 566 (1)
Foreign government bonds and obligations11 37 (2)1 1 — 12 38 (2)
Total1,512 $24,196 $(1,360)512 $8,491 $(1,480)2,024 $32,687 $(2,840)
As part of the Company’s ongoing monitoring process, management determined that the increase in total gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the nine months ended September 30, 2023 is primarily attributable to the impact of higher interest rates. As of September 30, 2023, 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 September 30, 2023 and December 31, 2022, approximately 96% and 95%, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.
The following table presents rollforwards of the allowance for credit losses on Available-for-Sale securities:
Corporate Debt SecuritiesState and Municipal ObligationsTotal
(in millions)
Balance at July 1, 2023$7 $2 $9 
Reductions for securities sold during the period (realized)(7)(1)(8)
Balance at September 30, 2023$— $1 $1 
Balance at July 1, 2022$— $1 $1 
Additions for which credit losses were not previously recorded20 — 20 
Additional increases (decreases) on securities that had an allowance recorded in a previous period— 1 1 
Balance at September 30, 2022$20 $2 $22 
Balance at January 1, 2023$20 $2 $22 
Reductions for securities sold during the period (realized)(20)(1)(21)
Balance at September 30, 2023$— $1 $1 
Balance at January 1, 2022$— $1 $1 
Additions for which credit losses were not previously recorded20 — 20 
Additional increases (decreases) on securities that had an allowance recorded in a previous period— 1 1 
Balance at September 30, 2022$20 $2 $22 
30
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in earningsNet investment income were as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in millions)
Gross realized investment gains$— $2 $10 $24 
Gross realized investment losses(46)(6)(58)(17)
Credit reversals (losses)8 (21)21 (21)
Other impairments— (61)(2)(67)
Total$(38)$(86)$(29)$(81)
 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions)
Gross realized gains$6
 $10
 $50
 $24
Gross realized losses(2) (3) (6) (12)
Other-than-temporary impairments—
 —
 (1) (1)
Total$4
 $7
 $43
 $11
Other-than-temporaryPreviously recorded allowance for credit losses was reversed during the three and nine months ended September 30, 2023 primarily due to the sale of a corporate debt security in the communications industry. Credit losses for the three and nine months ended September 30, 2022 primarily related to recording an allowance for credit losses on a corporate debt security in the communications industry. Other impairments for the nine months ended September 30, 20172023 and 2016 primarilythree and nine months ended September 30, 2022 related to credit losses on asset backed securities.Available-for-Sale securities which the Company intended to sell.
See Note 1316 for a rollforwardrollforwards of net unrealized investment gains (losses) included in AOCI.
Available-for-Sale securities by contractual maturity as of September 30, 20172023 were as follows:
Amortized Cost 
Fair
Value
Amortized CostFair Value
(in millions)(in millions)
Due within one year$2,311
 $2,340
Due within one year$3,654$3,638
Due after one year through five years6,562
 6,820
Due after one year through five years2,8252,721
Due after five years through 10 years3,852
 4,010
Due after five years through 10 years3,9693,440
Due after 10 years4,316
 5,249
Due after 10 years5,0394,765
17,041
 18,419
 15,48714,564
Residential mortgage backed securities6,740
 6,790
Residential mortgage backed securities21,09019,289
Commercial mortgage backed securities3,917
 3,952
Commercial mortgage backed securities6,4896,041
Asset backed securities1,611
 1,646
Asset backed securities8,3778,299
Common stocks9
 19
Total$29,318
 $30,826
Total$51,443$48,193
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 as well as common stocks, were not included in the maturities distribution.
5.  7.  Financing Receivables
The Company’s financingFinancing receivables includeare comprised of commercial mortgage loans, syndicated loans, consumer loans policy loans, certificate loans and margin loans. Commercial mortgage loans, syndicated loans, consumer loans, policy loans and certificate loans are reflected in investments. Margin loans are recorded indeposit receivables.
Allowance for LoanCredit Losses
Policy and certificate loans do not exceed the cash surrender value at origination. As there is minimal riskThe following tables present a rollforward of loss related to policy and certificate loans, the Company does not record an allowance for loan losses. The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As there is minimal risk of loss related to margin loans, the allowance for loan lossescredit losses:
 Commercial LoansConsumer LoansTotal
(in millions)
Balance at January 1, 2023$54 $5 $59 
Provisions4 4 8 
Charge-offs(2)(1)(3)
Balance at September 30, 2023$56 $8 $64 
Balance at January 1, 2022$47 $3 $50 
Provisions6 2 8 
Charge-offs— (1)(1)
Balance at September 30, 2022$53 $4 $57 
As of September 30, 2023 and December 31, 2022, accrued interest on commercial loans was $19 million and $17 million, respectively, and is immaterial.recorded in Receivables and excluded from the amortized cost basis of commercial loans.

31
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

Purchases and Sales
The following table presents a rollforward of the allowance for loan losses for the nine months ended and the ending balance of the allowance for loan losses by impairment method:
 September 30,
2017 2016
(in millions)
Beginning balance$29
 $32
Charge-offs—
 (1)
Provisions(1) (1)
Ending balance$28
 $30
 
Individually evaluated for impairment$3
 $2
Collectively evaluated for impairment25
 28
The recorded investment in financing receivables by impairment method was as follows:
 September 30,
2017		 December 31,
2016
(in millions)
Individually evaluated for impairment$19
 $12
Collectively evaluated for impairment3,490
 3,480
Total$3,509
 $3,492
As of September 30, 2017 and December 31, 2016, the Company’s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $13 million and $7 million, respectively. Unearned income, unamortized premiums and discounts, and net unamortized deferred fees and costs are not material to the Company’s total loan balance.
During the three months ended September 30, 20172023 and 2016,2022, the Company purchased $18 million and $22 million, respectively, and sold $12$20 million and nil, respectively, primarilyof syndicated loans, and sold $1 million and nil, respectively, of syndicated loans. During the nine months ended September 30, 20172023 and 2016,2022, the Company purchased $154$21 million and $65$57 million, of syndicated loans, respectively, and sold $16 million of syndicated loans, and $271sold $4 million and $1 million, respectively, of consumer loans, respectively. The loans sold duringsyndicated loans.
During the three months ended September 30, 2023 and 2022, the Company purchased $49 million and $11 million, respectively, of residential mortgage loans. During the nine months ended September 30, 2016 were sold on March 30, 2016 to a third party. The2023 and 2022, the Company received cash proceeds of $260purchased $144 million and recognized a loss$34 million, respectively, of $11 million.residential mortgage loans. The allowance for credit losses for residential mortgage loans was not material as of both September 30, 2023 and December 31, 2022.
The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.
Credit Quality Information
Nonperforming loans which are generally loans 90 days or more past due, were $2$12 million and $11 million as of both September 30, 20172023 and December 31, 2016.2022, respectively. All other loans were considered to be performing.
Commercial Loans
Commercial Mortgage Loans
The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review.
Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary.when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% and nil of total commercial mortgage loans as of both September 30, 20172023 and December 31, 2016, respectively.2022. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. There were no commercial mortgage loans past due as of both September 30, 2023 and December 31, 2022.
The tables below present the amortized cost basis of commercial mortgage loans by the year of origination and loan-to-value ratio:
September 30, 2023
Loan-to-Value Ratio20232022202120202019PriorTotal
(in millions)
> 100%$— $— $— $— $2 $25 $27 
80% - 100%— 5 — 2 11 50 68 
60% - 80%19 27 6 14 40 117 223 
40% - 60%7 47 134 53 70 372 683 
< 40%9 32 50 41 81 609 822 
Total$35 $111 $190 $110 $204 $1,173 $1,823 

December 31, 2022
Loan-to-Value Ratio20222021202020192018PriorTotal
(in millions)
> 100%$— $— $2 $2 $3 $39 $46 
80% - 100%7 9 2 20 8 29 75 
60% - 80%39 87 17 52 9 107 311 
40% - 60%48 89 69 90 57 435 788 
< 40%18 12 30 46 85 471 662 
Total$112 $197 $120 $210 $162 $1,081 $1,882 
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. For the nine months ended September 30, 2023, the Company did not have any write-offs of commercial mortgage loans.
32
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
In addition, the Company reviews the concentrations of credit risk by region and property type.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:
Loans Percentage LoansPercentage
September 30,
2017		 December 31,
2016		 September 30,
2017		 December 31,
2016		September 30, 2023December 31, 2022September 30, 2023December 31, 2022
(in millions)    (in millions)  
East North Central$237
 $198
 9% 7%East North Central$192 $201 11 %11 %
East South Central92
 88
 3
 3
East South Central51 54 3 3 
Middle Atlantic198
 203
 7
 8
Middle Atlantic113 114 6 6 
Mountain253
 240
 9
 9
Mountain136 129 7 7 
New England87
 91
 3
 3
New England22 23 1 1 
Pacific785
 746
 28
 28
Pacific631 638 35 34 
South Atlantic767
 783
 28
 29
South Atlantic449 479 25 25 
West North Central215
 222
 8
 8
West North Central113 120 6 6 
West South Central136
 131
 5
 5
West South Central116 124 6 7 
2,770
 2,702
 100% 100% 1,823 1,882 100 %100 %
Less: allowance for loan losses21
 21
  
  
Less: allowance for credit lossesLess: allowance for credit losses10 11   
Total$2,749
 $2,681
  
  
Total$1,813 $1,871   
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
Loans Percentage LoansPercentage
September 30,
2017		 December 31,
2016		 September 30,
2017		 December 31,
2016		September 30, 2023December 31, 2022September 30, 2023December 31, 2022
(in millions)    (in millions)  
Apartments$560
 $504
 20% 19%Apartments$485 $495 26 %26 %
Hotel41
 42
 1
 1
Hotel13 14 1 1 
Industrial466
 446
 17
 17
Industrial309 321 17 17 
Mixed use48
 49
 2
 2
Mixed use66 66 4 4 
Office502
 489
 18
 18
Office243 259 13 14 
Retail937
 950
 34
 35
Retail566 594 31 31 
Other216
 222
 8
 8
Other141 133 8 7 
2,770
 2,702
 100% 100% 1,823 1,882 100 %100 %
Less: allowance for loan losses21
 21
  
  
Less: allowance for credit lossesLess: allowance for credit losses10 11   
Total$2,749
 $2,681
  
  
Total$1,813 $1,871   
Syndicated Loans
The recorded investment in syndicated loans as of September 30, 20172023 and December 31, 20162022 was $486$160 million and $482$175 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicatedSyndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loanspast due were not material as of September 30, 20172023 and no syndicated loans were past due as of December 31, 2022. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality. For the nine months ended September 30, 2023, the Company did not have any write-offs of syndicated loans.
The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating:
September 30, 2023
Internal Risk Rating20232022202120202019PriorTotal
(in millions)
Risk 5$— $1 $— $— $— $— $1 
Risk 4— — — 1 2 — 3 
Risk 3— — 12 1 2 13 28 
Risk 214 12 17 3 11 16 73 
Risk 16 7 11 4 6 21 55 
Total$20 $20 $40 $9 $21 $50 $160 
33
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
December 31, 2022
Internal Risk Rating20222021202020192018PriorTotal
(in millions)
Risk 5$1 $— $— $— $— $— $1 
Risk 4— — — 2 — 2 4 
Risk 3— 9 1 6 5 8 29 
Risk 28 21 7 12 5 28 81 
Risk 16 9 4 6 13 22 60 
Total$15 $39 $12 $26 $23 $60 $175 
Financial Advisor Loans
The Company offers loans to financial advisors for transitional cost assistance and practice operations. 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 $7 million and $6 million as of September 30, 2023 and December 31, 20162022, respectively. For the nine months ended September 30, 2023, write-offs of advisor loans were $2 millionnot material.
The tables below present the amortized cost basis of advisor loans by origination year and $1 million, respectively.termination status:
September 30, 2023
Termination Status20232022202120202019PriorTotal
(in millions)
Active$327 $325 $157 $114 $84 $175 $1,182 
Terminated— — 1 2 4 5 12 
Total$327 $325 $158 $116 $88 $180 $1,194 
December 31, 2022
Termination Status20222021202020192018PriorTotal
(in millions)
Active$359 $178 $133 $99 $76 $158 $1,003 
Terminated— 1 1 2 1 5 10 
Total$359 $179 $134 $101 $77 $163 $1,013 
Consumer Loans
Credit Card Receivables
The recorded investment in consumer loanscredit 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 2% and 1% of total credit card receivables as of September 30, 20172023 and December 31, 2016 was $253 million and $308 million,2022, respectively.
The Company considerstable below presents the amortized cost basis of credit worthinesscard receivables by FICO score:
September 30, 2023December 31, 2022
(in millions)
> 800$29 $32 
750 - 79926 27 
700 - 74929 28 
650 - 69918 17 
< 6507 6 
Total$109 $110 
Policy Loans
Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of borrowers (FICO score), collateral characteristics such as loan-to-value (“LTV”) and geographic concentration in determining theloss related to policy loans, there is no allowance for loan losses for consumer loans. At a minimum, management updates FICO scores and LTV ratios semiannually.
As of September 30, 2017 and December 31, 2016, approximately 1% and 2%, respectively, of consumer loans had FICO scores below 640. As of both September 30, 2017 and December 31, 2016, none of the Company’s consumer loans had LTV ratios greater than 90%. The Company’s most significant geographic concentrations for consumer loans are in California representing 52% of the portfolio as of both September 30, 2017 and December 31, 2016. Colorado and Washington represent 18% and 13%, respectively, of the portfolio as of both September 30, 2017 and December 31, 2016. No other state represents more than 10% of the total consumer loan portfolio.credit losses.

34
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

Margin Loans
During the third quarterThe margin loans balance was $1.1 billion and $1.2 billion as of 2017, theSeptember 30, 2023 and December 31, 2022, respectively. The Company entered into an agreement with an unaffiliated third party to sell $258 million of consumer mortgagemonitors collateral supporting margin loans and recorded a $7requests additional collateral when necessary in order to mitigate the risk of loss. As of both September 30, 2023 and December 31, 2022, there was no allowance for credit losses on margin loans.
Pledged Asset Lines of Credit
The pledged asset lines of credit balance was $523 million lossand $589 million as of September 30, 2023 and December 31, 2022, respectively. The Company monitors collateral supporting pledged asset lines of credit and requests additional collateral when necessary in order to reflectmitigate the loans atrisk of loss. As of both September 30, 2023 and December 31, 2022, there was no allowance for credit losses on pledged asset lines of credit.
Deposit Receivables
Deposit receivables were $6.7 billion and $7.4 billion as of September 30, 2023 and December 31, 2022, respectively. Deposit receivables are collateralized by the fair value. 
Troubled Debt Restructurings
The recorded investmentvalue of the assets held in restructured loanstrusts. Based on management’s evaluation of the collateral value relative to the deposit receivables, the allowance for credit losses for deposit receivables was not material as of both September 30, 20172023 and December 31, 2016. The troubled debt restructurings did2022.
Modifications with Borrowers Experiencing Financial Difficulty
Modifications of financing receivables with borrowers experiencing financial difficulty by the Company were not have a material impact to the Company’s allowance for loan losses or income recognized forduring the three months and nine months ended September 30, 2017 and 2016. There are no commitments to lend additional funds to borrowers whose loans have been restructured.2023.
6.8.  Deferred Acquisition Costs and Deferred Sales Inducement Costs
In the third quarter of the year, management updated market-related inputs and implemented model changes related to our living benefit valuation. In addition, management conducted its annual review of life insurance and annuity valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking. The impact of unlocking to DAC in the third quarter of 2017 primarily reflected improved persistency and mortality on life insurance contracts and a correction related to a variable annuity model assumption partially offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking to DAC in the third quarter of 2016 primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, the Company’s review of its closed LTC business in the prior year period resulted in the write-off of DAC, which was included in the impact of unlocking.
The following tables summarize the balances of and changes in DAC, were as follows:including the January 1, 2021 adoption of ASU 2018-12:
Variable AnnuitiesStructured Variable AnnuitiesFixed AnnuitiesFixed Indexed AnnuitiesUniversal Life InsuranceVariable Universal Life Insurance
(in millions)
Pre-adoption balance at December 31, 2020$1,690 $22 $43 $7 $100 $452 
Effect of shadow reserve adjustments42 4 18 1 31 53 
Post-adoption balance at January 1, 20211,732 26 61 8 131 505 
Capitalization of acquisition costs111 71 — — 3 54 
Amortization(147)(6)(8)(1)(9)(47)
Balance at December 31, 2021$1,696 $91 $53 $7 $125 $512 
Indexed Universal Life InsuranceOther Life InsuranceLife Contingent Payout AnnuitiesTerm and Whole Life InsuranceDisability InsuranceTotal,
All Products
(in millions)
Pre-adoption balance at December 31, 2020$108 $(3)$— $19 $89 $2,527 
Effect of shadow reserve adjustments149 6 — — — 304 
Post-adoption balance at January 1, 2021257 3 — 19 89 2,831 
Capitalization of acquisition costs9 — 1 2 4 255 
Amortization(18)— — (2)(9)(247)
Balance at December 31, 2021$248 $3 $1 $19 $84 $2,839 
Other broker dealer acquisition costs5 
Balance at December 31, 2021 including broker dealer acquisition costs$2,844 

35
 2017 2016 
(in millions)
Balance at January 1$2,648
 $2,730
(1) 
Capitalization of acquisition costs220
 274
(2) 
Amortization, excluding the impact of valuation assumptions review(201) (279) 
Amortization, impact of valuation assumptions review12
 (81) 
Impact of change in net unrealized securities (gains) losses(18) (105) 
Balance at September 30$2,661
 $2,539
(1) 
(1)
DAC balances were restated for the correction of commission expense accrual for certain insurance and annuity products in the fourth quarter of 2016. See Note 1 in the 2016 10-K.
(2)
Includes a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with the loss recognition on LTC business.
The balances of and changes in DSIC, which is included in other assets, were as follows:
 2017 2016
(in millions)
Balance at January 1$302
 $335
Capitalization of sales inducement costs3
 4
Amortization, excluding the impact of valuation assumptions review(26) (32)
Amortization, impact of valuation assumptions review(1) 4
Impact of change in net unrealized securities (gains) losses1
 (14)
Balance at September 30$279
 $297
Index

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

Variable AnnuitiesStructured Variable AnnuitiesFixed AnnuitiesFixed Indexed AnnuitiesUniversal Life InsuranceVariable Universal Life Insurance
(in millions)
Balance at January 1, 2022$1,696 $91 $53 $7 $125 $512 
Capitalization of acquisition costs38 73 — — 1 55 
Amortization(136)(15)(8)(1)(8)(46)
Balance at December 31, 2022$1,598 $149 $45 $6 $118 $521 
Indexed Universal Life InsuranceOther Life InsuranceLife Contingent Payout AnnuitiesTerm and Whole Life InsuranceDisability InsuranceTotal,
All Products
(in millions)
Balance at January 1, 2022$248 $3 $1 $19 $84 $2,839 
Capitalization of acquisition costs5 — 1 1 4 178 
Amortization(17)— — (2)(9)(242)
Balance at December 31, 2022$236 $3 $2 $18 $79 $2,775 
Other broker dealer acquisition costs2 
Balance at December 31, 2022 including broker dealer acquisition costs$2,777 
7.
Variable AnnuitiesStructured Variable AnnuitiesFixed AnnuitiesFixed Indexed AnnuitiesUniversal Life InsuranceVariable Universal Life Insurance
(in millions)
Balance at January 1, 2023$1,598 $149 $45 $6 $118 $521 
Capitalization of acquisition costs17 61 — — — 41 
Amortization(96)(18)(8)(1)(6)(33)
Balance at September 30, 2023$1,519 $192 $37 $5 $112 $529 
Indexed Universal Life InsuranceOther Life InsuranceLife Contingent Payout AnnuitiesTerm and Whole Life InsuranceDisability InsuranceTotal,
All Products
(in millions)
Balance at January 1, 2023$236 $3 $2 $18 $79 $2,775 
Capitalization of acquisition costs3 — 3 1 3 129 
Amortization(12)— — (1)(6)(181)
Balance at September 30, 2023$227 $3 $5 $18 $76 $2,723 
Other broker dealer acquisition costs2 
Balance at September 30, 2023 including broker dealer acquisition costs$2,725 

The following tables summarize the balances of and changes in DSIC, including the January 1, 2021 adoption of ASU 2018-12:
Variable AnnuitiesFixed AnnuitiesTotal,
All Products
(in millions)
Pre-adoption balance at December 31, 2020$175 $14 $189 
Effect of shadow reserve adjustments8 8 16 
Post-adoption balance at January 1, 2021183 22 205 
Capitalization of sales inducement costs1 — 1 
Amortization(18)(3)(21)
Balance at December 31, 2021$166 $19 $185 
36
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Variable AnnuitiesFixed AnnuitiesTotal,
All Products
(in millions)
Balance at January 1, 2022$166 $19 $185 
Capitalization of sales inducement costs1 — 1 
Amortization(16)(3)(19)
Balance at December 31, 2022$151 $16 $167 
Variable AnnuitiesFixed AnnuitiesTotal,
All Products
(in millions)
Balance at January 1, 2023$151 $16 $167 
Amortization(12)(3)(15)
Balance at September 30, 2023$139 $13 $152 
9.  Policyholder Account Balances, Future Policy Benefits and Claims and Separate Account Liabilities
Policyholder account balances, future policy benefits and claims consisted of the following:
September 30, 2023December 31, 2022
(in millions)
Policyholder account balances
Policyholder account balances$26,712 $24,986 
Future policy benefits
Reserve for future policy benefits7,142 7,495 
Deferred profit liability77 62 
Additional liabilities for insurance guarantees1,246 1,186 
Other insurance and annuity liabilities169 177 
Total future policy benefits8,634 8,920 
Policy claims and other policyholders’ funds180 226 
Total policyholder account balances, future policy benefits and claims$35,526 $34,132 
 September 30,
2017		 December 31,
2016		 
(in millions)
Policyholder account balances
Fixed annuities (1)
$10,100
 $10,588
 
Variable annuity fixed sub-accounts5,187
 5,211
 
Variable universal life (“VUL”)/universal life (“UL”) insurance3,028
 3,007
 
Indexed universal life (“IUL”) insurance1,290
 1,054
 
Other life insurance731
 758
 
Total policyholder account balances20,336
 20,618
 
 
Future policy benefits
Variable annuity guaranteed minimum withdrawal benefits (“GMWB”)539
 1,017
 
Variable annuity guaranteed minimum accumulation benefits (“GMAB”)(73)
(2) 
(24)
(2) 
Other annuity liabilities85
 66
 
Fixed annuity life contingent liabilities1,482
 1,497
 
Life, disability income and long term care insurance6,027
 5,556
 
VUL/UL and other life insurance additional liabilities674
 588
 
Total future policy benefits8,734
 8,700
 
Policy claims and other policyholders’ funds893
 884
 
Total policyholder account balances, future policy benefits and claims$29,963
 $30,202
 
Variable Annuities
(1) IncludesPurchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed deferred annuities, non-life contingent fixed payout annuities and equity indexed annuity (“EIA”) host contracts.
(2) Includes the fair value of GMAB embedded derivatives that was a net asset as of both September 30, 2017 and December 31, 2016 reported as a contra liability.
Separate account liabilities consistedaccount. A vast majority of the following:premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders.
 September 30,
2017		 December 31,
2016
(in millions)
Variable annuity$73,467
 $69,606
VUL insurance7,154
 6,659
Other insurance33
 33
Threadneedle investment liabilities4,633
 3,912
Total$85,287
 $80,210
8.  Variable Annuity and Insurance Guarantees
The majorityMost of the variable annuity contracts offeredissued by the Company contain guaranteed minimum death benefit (“GMDB”) provisions. The Company also offers variable annuities with 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. In addition, the Company offers contracts with GMWB and GMAB provisions.GMDB. The Company previously offered contracts containingwith GMAB, GMWB, and GMIB provisions. See Note 2 and Note 11 for additional information regarding the Company’s variable annuity guarantees. See Note 13 and Note 15 for additional information regarding the Company’s derivative instruments used to hedge risks related to these guarantees.
Structured Variable Annuities
Structured variable annuities provide contractholders the option to allocate a portion of their account value to an indexed account held in a non-insulated separate account with the contractholder’s rate of return, which may be positive or negative, tied to selected indices. The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the equity and interest rate risk related to the indexed account with freestanding derivative instruments.
Fixed Annuities
Fixed annuities include deferred, payout and fixed deferred indexed annuity contracts. In 2020, the Company discontinued sales of fixed deferred and fixed deferred indexed annuities.
Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. Liabilities for fixed annuities in a benefit (“GMIB”) provisions.or payout status are based on future estimated payments using established industry mortality tables and interest rates.
Certain UL policies offered byThe Company’s fixed index annuity product is a fixed annuity that includes an indexed account. The rate of interest credited above the Company provide secondaryminimum guarantee benefits. The secondary guarantee ensures that, subjectfor funds allocated to specified conditions, the policy will not terminate and will continueindexed account is linked to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.performance of the specific index for the indexed

37
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

account (subject to a cap). The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value.
See Note 15 for additional information regarding the Company’s derivative instruments used to hedge the risk related to indexed accounts.
Insurance Liabilities
Purchasers of UL accumulate cash value that increases by a fixed interest rate. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion of their account balance to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders.
IUL is a UL policy that includes an indexed account. The rate of credited interest for funds allocated by a contractholder to the indexed account is linked to the performance of the specific index for the indexed account (subject to stated account parameters, which include a cap and floor, or a spread). The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed account. The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with freestanding derivative instruments.
See Note 15 for additional information regarding the Company’s derivative instruments used to hedge the risk related to IUL.
The Company also offers term life insurance as well as DI products. The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years.
Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims, unpaid reported claims and claim adjustment expenses.
38
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The balances of and changes in policyholder account balances were as follows:
Variable AnnuitiesStructured Variable AnnuitiesFixed AnnuitiesFixed Indexed AnnuitiesNon-Life Contingent Payout Annuities
(in millions, except percentages)
Balance at January 1, 2023$4,752 $6,410 $6,799 $312 $471 
Contract deposits51 2,217 36 — 67 
Policy charges(7)— — — — 
Surrenders and other benefits(527)(100)(820)(8)(87)
Net transfer from (to) separate account liabilities(18)— — — — 
Other variable account adjustments— 602 — — — 
Interest credited108 1 168 4 5 
Balance at September 30, 2023$4,359 $9,130 $6,183 $308 $456 
Weighted-average crediting rate3.3 %1.7 %3.6 %2.0 %N/A
Cash surrender value (1)
$4,330 $8,586 $6,175 $274 N/A
Universal Life InsuranceVariable Universal Life InsuranceIndexed Universal Life InsuranceOther Life InsuranceTotal,
All Products
(in millions, except percentages)
Balance at January 1, 2023$1,544 $1,520 $2,654 $524 $24,986 
Contract deposits93 197 143 — 2,804 
Policy charges(133)(70)(90)— (300)
Surrenders and other benefits(53)(56)(40)(29)(1,720)
Net transfer from (to) separate account liabilities— (71)— — (89)
Other variable account adjustments— — — — 602 
Interest credited39 41 50 13 429 
Balance at September 30, 2023$1,490 $1,561 $2,717 $508 $26,712 
Weighted-average crediting rate3.6 %3.9 %2.0 %4.0 %
Net amount at risk$8,845 $57,563 $14,607 $142 
Cash surrender value (1)
$1,343 $1,060 $2,229 $333 
39
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Variable AnnuitiesStructured Variable AnnuitiesFixed AnnuitiesFixed Indexed AnnuitiesNon-Life Contingent Payout Annuities
(in millions, except percentages)
Balance at January 1, 2022$4,972 $4,458 $7,251 $323 $527 
Contract deposits146 2,784 55 — 53 
Policy charges(8)— — — — 
Surrenders and other benefits(450)(41)(744)(17)(124)
Net transfer from (to) separate account liabilities(60)— — — — 
Other variable account adjustments— (791)— — — 
Interest credited152 — 237 6 15 
Balance at December 31, 2022$4,752 $6,410 $6,799 $312 $471 
Weighted-average crediting rate3.2 %1.1 %3.5 %1.9 %N/A
Cash surrender value (1)
$4,720 $5,986 $6,786 $277 N/A
Universal Life InsuranceVariable Universal Life InsuranceIndexed Universal Life InsuranceOther Life InsuranceTotal,
All Products
(in millions, except percentages)
Balance at January 1, 2022$1,602 $1,493 $2,534 $563 $23,723 
Contract deposits134 233 218 (3)3,620 
Policy charges(178)(91)(116)— (393)
Surrenders and other benefits(67)(70)(50)(56)(1,619)
Net transfer from (to) separate account liabilities— (102)— — (162)
Other variable account adjustments— — — — (791)
Interest credited53 57 68 20 608 
Balance at December 31, 2022$1,544 $1,520 $2,654 $524 $24,986 
Weighted-average crediting rate3.6 %3.9 %2.0 %4.0 %
Net amount at risk$9,187 $57,354 $15,043 $149 
Cash surrender value (1)
$1,382 $1,054 $2,148 $348 
(1) Cash surrender value represents the amount of the contractholder's account balances distributable at the balance sheet date less certain surrender charges. For variable annuities and VUL, the cash surrender value shown is the proportion of the total cash surrender value related to their fixed account liabilities.
Refer to Note 11 for the net amount at risk for market risk benefits associated with variable and structured variable annuities. Fixed, fixed indexed, and non-life contingent payout annuities do not have net amount at risk in excess of account value. Net amount at risk for insurance products is calculated as the death benefit amount in excess of applicable account values, host, embedded derivative, and separate account liabilities.
40
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The following table provides informationtables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of September 30, 2023 and December 31, 2022 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated. Rates are reset at management’s discretion, subject to guaranteed minimums.
September 30, 2023
Account Values with Crediting Rates
Range of Guaranteed Minimum Crediting RatesAt Guaranteed Minimum1-49 bps above Guaranteed Minimum50-99 bps above Guaranteed Minimum100-150 bps above Guaranteed MinimumGreater than 150 bps above Guaranteed MinimumTotal
(in millions, except percentages)
Fixed accounts of variable annuities1 %–1.99%$66 $149 $32 $6 $1 $254 
2 %–2.99%148 — — — — 148 
3 %–3.99%2,336 — — 1 — 2,337 
4 %–5.00%1,562 — — — — 1,562 
Total$4,112 $149 $32 $7 $1 $4,301 
Fixed accounts of structured variable annuities1 %–1.99%$1 $19 $3 $1 $— $24 
2 %–2.99%8 — — — — 8 
3 %–3.99%— — — — — — 
4 %–5.00%— — — — — — 
Total$9 $19 $3 $1 $— $32 
Fixed annuities1 %–1.99%$116 $455 $221 $21 $8 $821 
2 %–2.99%51 4 — — — 55 
3 %–3.99%2,959 — — — — 2,959 
4 %–5.00%2,333 — — — — 2,333 
Total$5,459 $459 $221 $21 $8 $6,168 
Non-indexed accounts of fixed indexed annuities1 %–1.99%$— $3 $7 $13 $— $23 
2 %–2.99%— — — — — — 
3 %–3.99%— — — — — — 
4 %–5.00%— — — — — — 
Total$— $3 $7 $13 $— $23 
Universal life insurance1 %–1.99%$— $— $— $— $— $— 
2 %–2.99%53 1 7 — — 61 
3 %–3.99%860 1 4 3 — 868 
4 %–5.00%532 — — — — 532 
Total$1,445 $2 $11 $3 $— $1,461 
41
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Account Values with Crediting Rates
Range of Guaranteed Minimum Crediting RatesAt Guaranteed Minimum1-49 bps above Guaranteed Minimum50-99 bps above Guaranteed Minimum100-150 bps above Guaranteed MinimumGreater than 150 bps above Guaranteed MinimumTotal
(in millions, except percentages)
Fixed accounts of variable universal life insurance1 %–1.99%$— $3 $4 $— $26 $33 
2 %–2.99%17 8 — 2 5 32 
3 %–3.99%125 1 4 4 — 134 
4 %–5.00%623 — — — — 623 
Total$765 $12 $8 $6 $31 $822 
Non-indexed accounts of indexed universal life insurance1 %–1.99%$— $— $2 $— $— $2 
2 %–2.99%128 — — — — 128 
3 %–3.99%— — — — — — 
4 %–5.00%— — — — — — 
Total$128 $— $2 $— $— $130 
Other life insurance1 %–1.99%$— $— $— $— $— $— 
2 %–2.99%— — — — — — 
3 %–3.99%31 — — — — 31 
4 %–5.00%301 — — — — 301 
Total$332 $— $— $— $— $332 
Total1 %–1.99%$183 $629 $269 $41 $35 $1,157 
2 %–2.99%405 13 7 2 5 432 
3 %–3.99%6,311 2 8 8 — 6,329 
4 %–5.00%5,351 — — — — 5,351 
Total$12,250 $644 $284 $51 $40 $13,269 
Percentage of total account values that reset in:
Next 12 months99.9 %99.1 %99.3 %100.0 %100.0 %99.9 %
> 12 months to 24 months— 0.9 0.6 — — 0.1 
> 24 months0.1 — 0.1 — — — 
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
December 31, 2022
Account Values with Crediting Rates
Range of Guaranteed Minimum Crediting RatesAt Guaranteed Minimum1-49 bps above Guaranteed Minimum50-99 bps above Guaranteed Minimum100-150 bps above Guaranteed MinimumGreater than 150 bps above Guaranteed MinimumTotal
(in millions, except percentages)
Fixed accounts of variable annuities1 %–1.99%$169 $102 $18 $— $— $289 
2 %–2.99%177 — — — — 177 
3 %–3.99%2,611 — — 1 — 2,612 
4 %–5.00%1,611 — — — — 1,611 
Total$4,568 $102 $18 $1 $— $4,689 
42
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Account Values with Crediting Rates
Range of Guaranteed Minimum Crediting RatesAt Guaranteed Minimum1-49 bps above Guaranteed Minimum50-99 bps above Guaranteed Minimum100-150 bps above Guaranteed MinimumGreater than 150 bps above Guaranteed MinimumTotal
(in millions, except percentages)
Fixed accounts of structured variable annuities1 %–1.99%$12 $7 $3 $1 $— $23 
2 %–2.99%— — — — — — 
3 %–3.99%— — — — — — 
4 %–5.00%— — — — — — 
Total$12 $7 $3 $1 $— $23 
Fixed annuities1 %–1.99%$460 $402 $132 $33 $10 $1,037 
2 %–2.99%67 — — — — 67 
3 %–3.99%3,344 — — — — 3,344 
4 %–5.00%2,333 — — — — 2,333 
Total$6,204 $402 $132 $33 $10 $6,781 
Non-indexed accounts of fixed indexed annuities1 %–1.99%$1 $3 $7 $14 $— $25 
2 %–2.99%— — — — — — 
3 %–3.99%— — — — — — 
4 %–5.00%— — — — — — 
Total$1 $3 $7 $14 $— $25 
Universal life insurance1 %–1.99%$— $— $— $— $— $— 
2 %–2.99%55 — 1 — — 56 
3 %–3.99%885 1 2 — — 888 
4 %–5.00%569 — — — — 569 
Total$1,509 $1 $3 $— $— $1,513 
Fixed accounts of variable universal life insurance1 %–1.99%$4 $3 $2 $— $9 $18 
2 %–2.99%30 — 1 2 2 35 
3 %–3.99%134 1 1 1 — 137 
4 %–5.00%648 — — — — 648 
Total$816 $4 $4 $3 $11 $838 
Non-indexed accounts of indexed universal life insurance1 %–1.99%$— $— $3 $— $— $3 
2 %–2.99%126 — — — — 126 
3 %–3.99%— — — — — — 
4 %–5.00%— — — — — — 
Total$126 $— $3 $— $— $129 
43
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Account Values with Crediting Rates
Range of Guaranteed Minimum Crediting RatesAt Guaranteed Minimum1-49 bps above Guaranteed Minimum50-99 bps above Guaranteed Minimum100-150 bps above Guaranteed MinimumGreater than 150 bps above Guaranteed MinimumTotal
(in millions, except percentages)
Other life insurance1 %–1.99%$— $— $— $— $— $— 
2 %–2.99%— — — — — — 
3 %–3.99%32 — — — — 32 
4 %–5.00%314 — — — — 314 
Total$346 $— $— $— $— $346 
Total1 %–1.99%$646 $517 $165 $48 $19 $1,395 
2 %–2.99%455 — 2 2 2 461 
3 %–3.99%7,006 2 3 2 — 7,013 
4 %–5.00%5,475 — — — — 5,475 
Total$13,582 $519 $170 $52 $21 $14,344 
Percentage of total account values that reset in:
Next 12 months99.8 %96.3 %93.8 %100.0 %100.0 %99.6 %
> 12 months to 24 months0.1 3.0 5.8 — — 0.3 
> 24 months0.1 0.7 0.4 — — 0.1 
Total100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
The following tables summarize the balances of and changes in the liability for future policy benefits, including the January 1, 2021 adoption of ASU 2018-12:
Life Contingent Payout AnnuitiesTerm and Whole Life InsuranceDisability InsuranceLong Term Care InsuranceTotal, All Products
(in millions)
Pre-adoption balance at December 31, 2020$1,536 $633 $530 $5,749 $8,448 
Effect of shadow reserve adjustments(175)— — (566)(741)
Adjustments for loss contracts (with premiums in excess of gross premiums) under the modified retrospective approach4 — — 35 39 
Effect of change in deferred profit liability(43)— — — (43)
Effect of remeasurement of the liability at the current single A discount rate215 265 238 1,965 2,683 
Post-adoption balance at January 1, 20211,537 898 768 7,183 10,386 
Less: reinsurance recoverable— 601 24 3,623 4,248 
Post-adoption balance at January 1, 2021, after
reinsurance recoverable		$1,537 $297 $744 $3,560 $6,138 
44
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Life Contingent Payout AnnuitiesTerm and Whole Life InsuranceDisability InsuranceLong Term Care InsuranceTotal,
All Products
(in millions, except percentages)
Present Value of Expected Net Premiums:
Balance at January 1, 2021$— $702 $238 $1,831 $2,771 
Beginning balance at original discount rate— 536 183 1,498 2,217 
Effect of changes in cash flow assumptions— — — (6)(6)
Effect of actual variances from expected experience— 56 (35)(61)(40)
Adjusted beginning of year balance$— $592 $148 $1,431 $2,171 
Issuances38 78 18 — 134 
Interest accrual— 29 9 73 111 
Net premiums collected(38)(63)(20)(184)(305)
Derecognition (lapses)— — — — — 
Ending balance at original discount rate$— $636 $155 $1,320 $2,111 
Effect of changes in discount rate assumptions— 141 33 227 401 
Balance at December 31, 2021$— $777 $188 $1,547 $2,512 
Present Value of Future Policy Benefits:
Balance at January 1, 2021$1,537 $1,600 $1,006 $9,014 $13,157 
Beginning balance at original discount rate1,321 1,169 714 6,716 9,920 
Effect of changes in cash flow assumptions— — — (8)(8)
Effect of actual variances from expected experience(14)58 (40)(124)(120)
Adjusted beginning of year balance$1,307 $1,227 $674 $6,584 $9,792 
Issuances39 78 18 — 135 
Interest accrual53 70 39 347 509 
Benefit payments(168)(120)(43)(336)(667)
Derecognition (lapses)— — — — — 
Ending balance at original discount rate$1,231 $1,255 $688 $6,595 $9,769 
Effect of changes in discount rate assumptions139 343 226 1,755 2,463 
Balance at December 31, 2021$1,370 $1,598 $914 $8,350 $12,232 
Adjustment due to reserve flooring$— $1 $— $— $1 
Net liability for future policy benefits$1,370 $822 $726 $6,803 $9,721 
Less: reinsurance recoverable1,265 558 25 3,443 5,291 
Net liability for future policy benefits, after reinsurance recoverable$105 $264 $701 $3,360 $4,430 
Discounted expected future gross premiums$— $2,005 $1,158 $1,623 $4,786 
Expected future gross premiums$— $2,815 $1,395 $1,905 $6,115 
Expected future benefit payments$1,707 $2,159 $1,217 $11,568 $16,651 
Weighted average interest accretion rate4.2 %6.5 %5.9 %5.3 %
Weighted average discount rate2.6 %2.8 %2.8 %2.9 %
Weighted average duration of liability (in years)78910
45
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Life Contingent Payout AnnuitiesTerm and Whole Life InsuranceDisability InsuranceLong Term Care InsuranceTotal,
All Products
(in millions, except percentages)
Present Value of Expected Net Premiums:
Balance at January 1, 2022$— $777 $188 $1,547 $2,512 
Beginning balance at original discount rate— 636 155 1,320 2,111 
Effect of changes in cash flow assumptions— 1 1 52 54 
Effect of actual variances from expected experience— 47 (22)(48)(23)
Adjusted beginning of year balance$— $684 $134 $1,324 $2,142 
Issuances42 57 12 — 111 
Interest accrual— 34 7 65 106 
Net premiums collected(42)(67)(16)(169)(294)
Derecognition (lapses)— — — — — 
Ending balance at original discount rate$— $708 $137 $1,220 $2,065 
Effect of changes in discount rate assumptions— (22)(3)(13)(38)
Balance at December 31, 2022$— $686 $134 $1,207 $2,027 
Present Value of Future Policy Benefits:
Balance at January 1, 2022$1,370 $1,598 $914 $8,350 $12,232 
Beginning balance at original discount rate1,231 1,255 688 6,595 9,769 
Effect of changes in cash flow assumptions— (8)1 42 35 
Effect of actual variances from expected experience(13)52 (28)(36)(25)
Adjusted beginning of year balance$1,218 $1,299 $661 $6,601 $9,779 
Issuances42 57 12 — 111 
Interest accrual49 73 38 336 496 
Benefit payments(154)(116)(42)(368)(680)
Derecognition (lapses)— — — — — 
Ending balance at original discount rate$1,155 $1,313 $669 $6,569 $9,706 
Effect of changes in discount rate assumptions(90)6 27 (130)(187)
Balance at December 31, 2022$1,065 $1,319 $696 $6,439 $9,519 
Adjustment due to reserve flooring$— $3 $— $— $3 
Net liability for future policy benefits$1,065 $636 $562 $5,232 $7,495 
Less: reinsurance recoverable949 443 19 2,649 4,060 
Net liability for future policy benefits, after reinsurance recoverable$116 $193 $543 $2,583 $3,435 
Discounted expected future gross premiums$— $1,855 $926 $1,381 $4,162 
Expected future gross premiums$— $3,183 $1,331 $1,908 $6,422 
Expected future benefit payments$1,595 $2,234 $1,169 $11,229 $16,227 
Weighted average interest accretion rate4.1 %6.4 %6.1 %5.2 %
Weighted average discount rate5.2 %5.5 %5.4 %5.4 %
Weighted average duration of liability (in years)6789
46
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Life Contingent Payout AnnuitiesTerm and Whole Life InsuranceDisability InsuranceLong Term Care InsuranceTotal,
All Products
(in millions, except percentages)
Present Value of Expected Net Premiums:
Balance at January 1, 2023$— $686 $134 $1,207 $2,027 
Beginning balance at original discount rate— 708 137 1,220 2,065 
Effect of changes in cash flow assumptions— (19)(19)19 (19)
Effect of actual variances from expected experience— (5)(17)(5)(27)
Adjusted beginning of year balance$— $684 $101 $1,234 $2,019 
Issuances120 42 9 — 171 
Interest accrual1 27 4 44 76 
Net premiums collected(121)(52)(9)(117)(299)
Derecognition (lapses)— — — — — 
Ending balance at original discount rate$— $701 $105 $1,161 $1,967 
Effect of changes in discount rate assumptions— (53)(8)(50)(111)
Balance at September 30, 2023$— $648 $97 $1,111 $1,856 
Present Value of Future Policy Benefits:
Balance at January 1, 2023$1,065 $1,319 $696 $6,439 $9,519 
Beginning balance at original discount rate1,155 1,313 669 6,569 9,706 
Effect of changes in cash flow assumptions— (18)(25)9 (34)
Effect of actual variances from expected experience(9)(5)(25)5 (34)
Adjusted beginning of year balance$1,146 $1,290 $619 $6,583 $9,638 
Issuances120 42 9 — 171 
Interest accrual37 54 28 247 366 
Benefit payments(112)(96)(32)(300)(540)
Derecognition (lapses)— — — — — 
Ending balance at original discount rate$1,191 $1,290 $624 $6,530 $9,635 
Effect of changes in discount rate assumptions(127)(58)(8)(449)(642)
Balance at September 30, 2023$1,064 $1,232 $616 $6,081 $8,993 
Adjustment due to reserve flooring$— $5 $— $— $5 
Net liability for future policy benefits$1,064 $589 $519 $4,970 $7,142 
Less: reinsurance recoverable847 415 19 2,514 3,795 
Net liability for future policy benefits, after reinsurance recoverable$217 $174 $500 $2,456 $3,347 
Discounted expected future gross premiums$— $1,654 $865 $1,287 $3,806 
Expected future gross premiums$— $2,966 $1,284 $1,833 $6,083 
Expected future benefit payments$1,670 $2,166 $1,077 $10,961 $15,874 
Weighted average interest accretion rate4.2 %6.2 %6.1 %5.1 %
Weighted average discount rate5.9 %6.1 %6.1 %6.1 %
Weighted average duration of liability (in years)6788
The annual review of LTC future policy benefit reserves in the third quarter of 2023 resulted in assumption updates that decreased the net liability for future policy benefits by $9 million, partially offset by a $4 million decrease to reinsurance recoverable, primarily reflecting updates to premium rate increase assumptions. The annual review of LTC future policy benefit reserves in the third quarter
47
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
of 2022 resulted in assumption updates that decreased the net liability for future policy benefits by $10 million, partially offset by a $4 million decrease to reinsurance recoverable, primarily reflecting updates to morbidity, premium rate increase and benefit reduction assumptions.
The annual review of disability insurance future policy benefit reserves in the third quarter of 2023 resulted in assumption updates that decreased the net liability for future policy benefits by $6 million, offset by a $1 million decrease to reinsurance recoverable, primarily reflecting updates to claim termination assumptions.
The annual review of term life insurance future policy benefit reserves in the third quarter of 2023 resulted in assumption updates that increased the net liability for future policy benefits by $2 million, offset by a $2 million increase to reinsurance recoverable, reflecting updates to lapse assumptions. The annual review of term life insurance future policy benefit reserves in the third quarter of 2022 resulted in assumption updates that decreased the net liability for future policy benefits $9 million, offset by a $16 million decrease to reinsurance recoverable, reflecting updates to lapse assumptions.
Receivables included $4.0 billion and $4.2 billion of reinsurance recoverables as of September 30, 2023 and December 31, 2022, respectively, including $2.5 billion and $2.7 billion related to LTC risk ceded to Genworth as of September 30, 2023 and December 31, 2022, respectively.
The balances of and changes in additional liabilities related to insurance guarantees were as follows:
Universal Life InsuranceVariable Universal Life InsuranceOther Life InsuranceTotal,
All Products
(in millions, except percentages)
Balance at January 1, 2023$1,100 $74 $12 $1,186 
Interest accrual26 4 — 30 
Benefit accrual95 6 1 102 
Benefit payments(38)(12)(2)(52)
Effect of actual variances from expected experience(11)8 (2)(5)
Impact of change in net unrealized (gains) losses on securities(13)(1)(1)(15)
Balance at September 30, 2023$1,159 $79 $8 $1,246 
Weighted average interest accretion rate3.0 %6.8 %3.9 %
Weighted average discount rate3.2 %7.1 %4.0 %
Weighted average duration of reserves (in years)1086
Universal Life InsuranceVariable Universal Life InsuranceOther Life InsuranceTotal,
All Products
(in millions, except percentages)
Balance at January 1, 2022$1,120 $76 $46 $1,242 
Interest accrual32 5 1 38 
Benefit accrual108 8 — 116 
Benefit payments(43)(14)(4)(61)
Effect of actual variances from expected experience(19)2 (2)(19)
Impact of change in net unrealized (gains) losses on securities(98)(3)(29)(130)
Balance at December 31, 2022$1,100 $74 $12 $1,186 
Weighted average interest accretion rate2.9 %7.0 %4.1 %
Weighted average discount rate3.2 %7.1 %4.0 %
Weighted average duration of reserves (in years)1086
48
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The amount of revenue and interest recognized in the Statement of Operations was as follows:
Nine Months Ended September 30,
2023
Gross PremiumsInterest Expense
(in millions)
Life contingent payout annuities$134 $36 
Term and whole life insurance126 27 
Disability insurance93 24 
Long term care insurance137 203 
Total$490 $290 
Years Ended December 31,
20222021
Gross PremiumsInterest ExpenseGross PremiumsInterest Expense
(in millions)
Life contingent payout annuities$45 $49 $39 $53 
Term and whole life insurance169 39 166 41 
Disability insurance127 31 131 30 
Long term care insurance189 271 192 274 
Total$530 $390 $528 $398 
The following tables summarize the balances of and changes in unearned revenue, including the January 1, 2021 adoption of ASU 2018-12:
Universal Life InsuranceVariable Universal Life InsuranceIndexed Universal Life InsuranceTotal,
All Products
(in millions)
Pre-adoption balance at December 31, 2020$19 $76 $— $95 
Effect of shadow reserve adjustments5 10 153 168 
Post-adoption balance at January 1, 202124 86 153 263 
Deferral of revenue3 34 55 92 
Amortization(1)(8)(13)(22)
Balance at December 31, 2021$26 $112 $195 $333 
Balance at January 1, 2022$26 $112 $195 $333 
Deferral of revenue2 48 54 104 
Amortization(1)(10)(16)(27)
Balance at December 31, 2022$27 $150 $233 $410 
Balance at January 1, 2023$27 $150 $233 $410 
Deferral of revenue1 44 39 84 
Amortization(1)(10)(14)(25)
Balance at September 30, 2023$27 $184 $258 $469 
49
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
10.  Separate Account Assets and Liabilities
Aggregate fair value of separate account assets, by major asset category, consisted of the following:
September 30, 2023December 31, 2022
(in millions)
Mutual funds$69,592 $70,876 
Property/real estate1,804 1,876 
Equity securities518 679 
Debt securities276 279 
Cash and cash equivalents120 208 
Other44 44 
Total$72,354 $73,962 
The balances of and changes in separate account liabilities were as follows:
Variable AnnuitiesVariable Universal LifeThreadneedle Investment LiabilitiesTotal
(in millions)
Balance at January 1, 2023$63,223 $7,653 $3,086 $73,962 
Premiums and deposits645 337 171 1,153 
Policy charges(1,002)(218)(5)(1,225)
Surrenders and other benefits(3,925)(238)(635)(4,798)
Investment return2,636 440 110 3,186 
Net transfer from (to) general account18 23 — 41 
Other charges— — 35 35 
Balance at September 30, 2023$61,595 $7,997 $2,762 $72,354 
Cash surrender value$60,001 $7,497 $2,762 $70,260 
Variable AnnuitiesVariable Universal LifeThreadneedle Investment LiabilitiesTotal
(in millions)
Balance at January 1, 2022$82,862 $9,376 $5,253 $97,491 
Premiums and deposits1,067 425 252 1,744 
Policy charges(1,396)(278)(11)(1,685)
Surrenders and other benefits(4,923)(286)(1,548)(6,757)
Investment return(14,450)(1,654)(273)(16,377)
Net transfer from (to) general account63 70 — 133 
Other charges— — (587)(587)
Balance at December 31, 2022$63,223 $7,653 $3,086 $73,962 
Cash surrender value$61,461 $7,200 $3,086 $71,747 
11.  Market Risk Benefits
Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Most of the variable annuity guarantees for whichcontracts issued by the Company has established additional liabilities:contain a GMDB provision. The Company previously offered contracts containing GMWB, GMAB, or GMIB provisions.
50
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Variable Annuity 
Guarantees
by Benefit Type(1)
September 30, 2017 December 31, 2016
Total Contract Value Contract Value in Separate Accounts 
Net Amount
at Risk
 
Weighted Average
Attained Age
Total Contract Value Contract Value in Separate Accounts 
Net Amount
at Risk
 
Weighted Average
Attained Age
 (in millions, except age)
GMDB:
Return of premium$59,806
 $57,840
 $11
 66 $56,143
 $54,145
 $208
 65
Five/six-year reset8,869
 6,141
 13
 66 8,878
 6,170
 22
 66
One-year ratchet6,502
 6,139
 12
 69 6,426
 6,050
 110
 68
Five-year ratchet1,562
 1,504
 1
 65 1,542
 1,483
 7
 64
Other1,057
 1,034
 58
 72 965
 942
 86
 71
Total — GMDB$77,796
 $72,658
 $95
 66 $73,954
 $68,790
 $433
 65
 
GGU death benefit$1,103
 $1,052
 $126
 69 $1,047
 $996
 $108
 68
GMIB$236
 $219
 $8
 69 $245
 $227
 $13
 68
 
GMWB:
GMWB$2,525
 $2,517
 $2
 71 $2,650
 $2,642
 $2
 70
GMWB for life42,933
 42,813
 160
 67 39,436
 39,282
 289
(2) 
66
Total — GMWB$45,458
 $45,330
 $162
 67 $42,086
 $41,924
 $291
 66
 
GMAB$3,157
 $3,153
 $—
 59 $3,484
 $3,476
 $21
 59
The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has the following primary GMDB provisions:
(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.
(2)
Amount revised to reflect updated contractholder mortality assumptions at December 31, 2016.
•Return of premium — provides purchase payments minus adjusted partial surrenders.
•Reset — provides that the value resets to the account value at specified contract anniversary intervals minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered.
•Ratchet — provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders.
The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At contract issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a “step-up”) in the case of favorable market performance or by a benefit credit if the contract includes this provision.
The Company has GMWB riders in force, which contain one or more of the following provisions:
•Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount.
•Withdrawals at a specified rate per year for the life of the contractholder (“GMWB for life”).
•Withdrawals at a specified rate per year for joint contractholders while either is alive.
•Withdrawals based on performance of the contract.
•Withdrawals based on the age withdrawals begin.
•Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken.
Variable annuity contractholders age 79 or younger at contract issue could obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or a specified percentage of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10-year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value.
Individual variable annuity contracts may have both a death benefit and a living benefit. Net amount at risk is quantified for each benefit and a composite net amount at risk is calculated using the greater of the death benefit or living benefit for each individual contract. 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.
The following table provides information related to insurance guarantees for whichtables summarize the Company has established additional liabilities:balances of and changes in market risk benefits, including the January 1, 2021 adoption of ASU 2018-12:
(in millions)
Pre-adoption balance at December 31, 2020$3,084 
Effect of shadow reserve adjustments(3)
Adjustments for the cumulative effect of the changes in instrument-specific credit risk on market risk benefits between the original contract issuance date and the transition date670 
Adjustments to the host contract for differences between previous carrying amount and fair value measurement for the market risk benefits under the option-based method of valuation20 
Adjustments for the remaining difference (exclusive of the instrument-specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurements for the market risk benefits1,058 
Post-adoption balance at January 1, 2021$4,829 
51
 September 30, 2017 December 31, 2016
Net Amount
at Risk		 Weighted Average Attained AgeNet Amount
at Risk		 Weighted Average Attained Age
(in millions, except age)
UL secondary guarantees$6,443
 65 $6,376
 64
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.

Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

Changes in additional liabilities (contra liabilities) for variable annuity and insurance guarantees were as follows:
Years Ended December 31,
20222021
(in millions, except age)
Balance at beginning of period$2,901 $4,829 
Issuances27 45 
Interest accrual and time decay(237)(294)
Reserve increase from attributed fees collected810 819 
Reserve release for benefit payments and derecognition(29)(8)
Effect of changes in interest rates and bond markets(4,193)(1,053)
Effect of changes in equity markets and subaccount performance2,258 (1,558)
Effect of changes in equity index volatility205 73 
Actual policyholder behavior different from expected behavior17 52 
Effect of changes in other future expected assumptions(139)123 
Effect of changes in the instrument-specific credit risk on market risk benefits(517)(127)
Balance at end of period$1,103 $2,901 
Reconciliation of the gross balances in an asset or liability position:
Asset position$1,015 $539 
Liability position(2,118)(3,440)
Net asset (liability) position$(1,103)$(2,901)
Guaranteed benefit amount in excess of current account balances (net amount at risk):
Death benefits$2,781 $251 
Living benefits$3,364 $195 
Composite (greater of)$5,830 $441 
Weighted average attained age of contractholders6868
Changes in unrealized (gains) losses in net income relating to liabilities held at end of period$(2,044)$(2,502)
Changes in unrealized (gains) losses in other comprehensive income relating to liabilities held at end of period$(505)$(102)
52
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
 GMDB & GGU GMIB 
GMWB (1)
 
GMAB (1)
 UL
(in millions)
Balance at January 1, 2016$14
 $8
 $1,057
 $—
 $332
Incurred claims10
 —
 1,056
 9
 99
Paid claims(7) —
 —
 (1) (18)
Balance at September 30, 2016$17
 $8
 $2,113
 $8
 $413
 
Balance at January 1, 2017$16
 $8
 $1,017
 $(24) $434
Incurred claims3
 —
 (478) (49) 59
Paid claims(3) (1) —
 —
 (22)
Balance at September 30, 2017$16
 $7
 $539
 $(73) $471
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in millions, except age)
Balance at beginning of period$360 $1,937 $1,103 $2,901 
Issuances5 6 13 22 
Interest accrual and time decay(15)(38)(36)(175)
Reserve increase from attributed fees collected202 206 585 605 
Reserve release for benefit payments and derecognition(6)(6)(24)(15)
Effect of changes in interest rates and bond markets(1,241)(1,147)(1,325)(3,949)
Effect of changes in equity markets and subaccount performance500 643 (402)2,943 
Effect of changes in equity index volatility(13)47 (83)123 
Actual policyholder behavior different from expected behavior(16)(21)(10)11 
Effect of changes in other future expected assumptions128 (139)128 (139)
Effect of changes in the instrument-specific credit risk on market risk benefits(23)4 (68)(835)
Balance at end of period$(119)$1,492 $(119)$1,492 
Reconciliation of the gross balances in an asset or liability position:
Asset position$1,644 $845 $1,644 $845 
Liability position(1,525)(2,337)(1,525)(2,337)
Net asset (liability) position$119 $(1,492)$119 $(1,492)
Guaranteed benefit amount in excess of current account balances (net amount at risk):
Death benefits$2,091 $3,987 $2,091 $3,987 
Living benefits$3,693 $3,354 $3,693 $3,354 
Composite (greater of)$5,470 $6,905 $5,470 $6,905 
Weighted average attained age of contractholders69686968
Changes in unrealized (gains) losses in net income relating to liabilities held at end of period$(650)$(649)$(1,681)$(1,151)
Changes in unrealized (gains) losses in other comprehensive income relating to liabilities held at end of period$(23)$2 $(67)$(826)
(1) The incurred claims for GMWBfollowing tables provide a summary of the significant inputs and GMAB represent the changeassumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits:
September 30, 2023
Fair ValueValuation TechniqueSignificant Inputs and AssumptionsRangeWeighted
 Average
(in millions)
Market risk benefits$(119)Discounted cash flow
Utilization of guaranteed withdrawals (1)
0.0%–48.0%11.5%
Surrender rate (2)
0.3%–75.0%3.6%
Market volatility (3)
0.0%–25.2%10.8%
Nonperformance risk (4)
105 bps105 bps
Mortality rate (5)
0.0%–41.6%1.6%
53
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
December 31, 2022
Fair ValueValuation TechniqueSignificant Inputs and AssumptionsRangeWeighted
 Average
(in millions)
Market risk benefits$1,103 Discounted cash flow
Utilization of guaranteed withdrawals (1)
0.0%–48.0%11.0%
Surrender rate (2)
0.2%–45.6%3.6%
Market volatility (3)
0.0%–26.6%12.1%
Nonperformance risk (4)
95 bps95 bps
Mortality rate (5)
0.0%–41.6%1.5%
(1) The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. The weighted average utilization rate represents the average assumption, weighted based on the benefit base. The calculation excludes policies that have already started taking withdrawals.
(2) The weighted average surrender rate represents the average assumption weighted based on the account value of each contract.
(3) Market volatility represents the implied volatility of each contractholder’s mix of funds. The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the liabilities (contra liabilities) less paid claims.guaranteed benefit.
(4) The nonperformance risk is the spread added to the U.S. Treasury curve.
(5) The weighted average mortality rate represents the average assumption weighted based on the account value of each contract.
Changes to Significant Inputs and Assumptions:
During the nine months ended September 30, 2023 and year ended December 31, 2022, the Company updated inputs and assumptions based on management’s review of experience studies. These updates resulted in the following notable changes in the fair value estimates of market risk benefits calculations:
Nine months ended September 30, 2023
•Updates to utilization of guaranteed withdrawals assumptions resulted in a decrease to pre-tax income of $18 million.
•Updates to surrender assumptions resulted in a decrease to pre-tax income of $110 million.
Year ended December 31, 2022
•Updates to utilization of guaranteed withdrawals assumptions resulted in a decrease to pre-tax income of $39 million.
•Updates to surrender assumptions resulted in a decrease to pre-tax income of $200 million.
•Updates to mortality assumptions resulted in a decrease to pre-tax income of $49 million.
Refer to the rollforward of market risk benefits for the impacts of changes to interest rate, equity market, volatility and nonperformance risk assumptions.
Uncertainty of Fair Value Measurements
Significant increases (decreases) in utilization and volatility used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value.
Significant increases (decreases) in nonperformance risk and surrender assumptions used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.
Significant increases (decreases) in mortality assumptions used in the fair value measurement of the death benefit portion of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value whereas significant increases (decreases) in mortality rates used in the fair values measurement of the life contingent portion of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.
Surrender assumptions, utilization assumptions and mortality assumptions vary with the type of base product, type of rider, duration of the policy, age of the contractholder, calendar year of the projection, previous withdrawal history, and the relationship between the value of the guaranteed benefit and the contract accumulation value.
Determination of Fair Value
The liabilitiesCompany values market risk benefits using internal valuation models. These models include observable capital market assumptions and significant unobservable inputs related to implied volatility as well as contractholder behavior assumptions that include margins for guaranteed benefitsrisk, 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. Given the significant unobservable inputs to this valuation, these measurements 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:classified as Level 3.
54
 September 30,
2017		 December 31,
2016
(in millions)
Mutual funds:
Equity$44,365
 $40,622
Bond23,481
 23,142
Other5,117
 5,326
Total mutual funds$72,963
 $69,090
Index
AMERIPRISE FINANCIAL, INC.
9.NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
12.  Debt
The balances and the stated interest rates of outstanding debt of Ameriprise Financial were as follows: 
 Outstanding BalanceStated Interest Rate
September 30, 2023December 31, 2022September 30, 2023December 31, 2022
(in millions) 
Long-term debt:
Senior notes due 2023$750 $750 4.0 %4.0 %
Senior notes due 2024550 550 3.7 3.7 
Senior notes due 2025500 500 3.0 3.0 
Senior notes due 2026500 500 2.9 2.9 
Senior notes due 2032500 500 4.5 4.5 
Senior notes due 2033750 — 5.2 — 
Finance lease liabilities22 30 N/AN/A
Other (1)
(15)(9)N/AN/A
Total long-term debt3,557 2,821 
Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances201 201 5.5 %4.6 %
Total$3,758 $3,022   
 Outstanding Balance Stated Interest Rate
September 30,
2017		 December 31,
2016		September 30,
2017		 December 31,
2016
(in millions)  
Long-term debt:
Senior notes due 2019$300
 $300
 7.3% 7.3%
Senior notes due 2020750
 750
 5.3
 5.3
Senior notes due 2023750
 750
 4.0
 4.0
Senior notes due 2024550
 550
 3.7
 3.7
Senior notes due 2026500
 500
 2.9
 2.9
Capitalized lease obligations41
 49
  
  
Other(1)
11
 18
    
Total long-term debt2,902
 2,917
    
 
Short-term borrowings:
Federal Home Loan Bank (“FHLB”) advances151
 150
 1.3
 0.8
Repurchase agreements50
 50
 1.4
 0.9
Total short-term borrowings201
 200
  
  
Total$3,103
 $3,117
  
  
(1) Amounts includeIncludes adjustments for fair value hedges on the Company’s long-term debt andnet unamortized discount anddiscounts, debt issuance costs. See Note 12 for information oncosts 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 Company’s fairgreater of the principal amount and the present value hedges.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


Long-term Debtof remaining scheduled payments, discounted to the redemption date, plus accrued interest.
On August 11, 2016,March 9, 2023, the Company issued $500$750 million of 5.15% unsecured senior notes due SeptemberMay 15, 2026,2033 and incurred debt issuance costs of $4$7 million. Interest payments are due semi-annually in arrears on MarchMay 15 and SeptemberNovember 15, commencingwhich commences on MarchNovember 15, 2017.2023.
In the first quarter of 2016,On October 16, 2023, the Company extinguished $16repaid $750 million principal amount of its junior subordinated4.0% senior notes due 2066 in open market transactions and recognized a gain of less than $1 million. In the second quarter of 2016, the Company redeemed the remaining $229 million of its junior subordinated notes due 2066 at a redemption price equal to 100% of the principal balance of the notes plus accrued and compounded interest.maturity.
Short-termShort-Term Borrowings
The Company enters into repurchase agreements in exchange for cash, which it accounts for as secured borrowings and has pledged Available-for-Sale securities to collateralize its obligations under the repurchase agreements. As of September 30, 2017 and December 31, 2016, the Company has pledged $32 million and $33 million of agency residential mortgage backed securities and $16 million and $19 million of commercial mortgage backed securities, respectively. The remaining maturity of outstanding repurchase agreements was less than one month as of September 30, 2017 and less than three months as of December 31, 2016. The stated interest rate of the repurchase agreements is a weighted average annualized interest rate on the repurchase agreements held as of the balance sheet date.
The Company’s life insurance subsidiary is a memberand bank subsidiaries are members of the FHLB of Des Moines which provides access to collateralized borrowings. The Company hasAs of September 30, 2023 and December 31, 2022, the Company’s life insurance subsidiary had accessed collateralized borrowings and pledged Available-for-Sale securities consisting of(granted a lien on) certain investments, primarily commercial mortgage backed securities, to collateralize its obligation under these borrowings. Thewith an aggregate fair value of the securities pledged is recorded in investments and was $764$994 million and $771$962 million, as of September 30, 2017 and December 31, 2016, respectively. The remaining maturity of outstanding FHLB advances was less than three months as of both September 30, 20172023 and less than four months as of December 31, 2016.2022. 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.
On October 12, 2017,The Company’s bank subsidiary had no outstanding obligations to the FHLB as of both September 30, 2023 and December 31, 2022. The Company’s bank subsidiary maintains access to collateralized borrowings from the Federal Reserve. As of both September 30, 2023 and December 31, 2022, there were no outstanding obligations to the Federal Reserve.
In June 2021, the Company entered into an amended and restated credit agreement that provides for an unsecured revolving credit facility of up to $750 million$1.0 billion that expires in October 2022.June 2026. Under the terms of the credit agreement for the facility, the Company may increase the amount of this facility up to $1.0$1.25 billion upon satisfaction of certain approval requirements. ThisPrior to June 21, 2023, the interest rate for any borrowing under the agreement replaced the Company’swas established by reference to London Interbank Offered Rate (“LIBOR”) for U.S. dollar deposits with maturities comparable to the relevant interest period, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured revolvingdebt of the Company with an integrated hardwired approach to a fallback interest rate with certain hardwired credit facility that wasspread adjustments. On June 21, 2023, in anticipation of the end of the publication of U.S. dollar LIBOR, an amendment to expire in May 2020. Thethe agreement changed the interest rate from LIBOR for U.S. dollars to a Spread Adjusted Term Secured Overnight Financing Rate (“SOFR”), which is defined as Term SOFR for an interest period selected by the Company plus a credit spread adjustment of 0.10%, plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of the Company. In the event of default, an additional 2% interest will accrue during such period of default. As of both September 30, 2023 and December 31, 2022, the Company had no borrowings outstanding under this facility asand $1 million of both September 30, 2017 and December 31, 2016 and outstanding letters of credit issued against this facility were $1 million as of both September 30, 2017 and December 31, 2016.the facility. The
55
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Company’s credit facility contains various administrative, reporting, legal and financial covenants. The Company was in compliance with all such covenants as of both September 30, 20172023 and December 31, 2016.2022.
American Enterprise Investment Services, Inc. (“AEIS”), a subsidiary of the Company, has credit agreements for uncommitted lines of credit with third party financial institutions, having a combined credit limit of $500 million. As of both September 30, 2023 and December 31, 2022, AEIS had no borrowings outstanding.
10.  
13.  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.
The three levels of the fair value hierarchy are defined as follows:
Level 1Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.
Level 2Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.
Level 3Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.
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.

56
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)(Continued)


The following tables present the balances of assets and liabilities of Ameriprise Financial measured at fair value on a recurring basis:basis (See Note 5 for the balances of assets and liabilities for consolidated investment entities): 
September 30, 2017
  
 September 30, 2023 
Level 1 Level 2 Level 3 TotalLevel 1Level 2Level 3Total
(in millions)(in millions)
AssetsAssetsAssets
Cash equivalents$136
 $1,882
 $—
 $2,018
  
Cash equivalents$790 $3,997 $— $4,787  
Available-for-Sale securities:Available-for-Sale securities:Available-for-Sale securities:
Corporate debt securities—
 14,383
 1,267
 15,650
  
Corporate debt securities— 10,826 461 11,287  
Residential mortgage backed securities—
 6,625
 165
 6,790
  
Residential mortgage backed securities— 19,289 — 19,289  
Commercial mortgage backed securities—
 3,887
 65
 3,952
  
Commercial mortgage backed securities— 6,041 — 6,041  
Asset backed securities—
 1,611
 35
 1,646
  
Asset backed securities— 8,296 3 8,299  
State and municipal obligations—
 2,455
 —
 2,455
  
State and municipal obligations— 729 — 729  
U.S. government and agencies obligations6
 —
 —
 6
  
U.S. government and agency obligationsU.S. government and agency obligations2,366 100 — 2,466  
Foreign government bonds and obligations—
 308
 —
 308
  
Foreign government bonds and obligations— 17 — 17  
Common stocks4
 8
 1
 13
  
Common stocks measured at net asset value (“NAV”)      6
(1) 
Other securitiesOther securities— 65 — 65 
Total Available-for-Sale securities10
 29,277
 1,533
 30,826
  
Total Available-for-Sale securities2,366 45,363 464 48,193  
Trading securities131
 32
 —
 163
  
Separate account assets measured at NAV85,287
(1) 
Investments segregated for regulatory purposes424
 —
 —
 424
 
Investments at net asset value (“NAV”)Investments at net asset value (“NAV”)10 (1)
Trading and other securitiesTrading and other securities229 15 — 244 
Separate account assets at NAVSeparate account assets at NAV72,354 (1)
Investments and cash equivalents segregated for regulatory purposesInvestments and cash equivalents segregated for regulatory purposes718 — — 718 
Market risk benefitsMarket risk benefits— — 1,644 1,644 (2)
Receivables:Receivables:
Fixed deferred indexed annuity ceded embedded derivativesFixed deferred indexed annuity ceded embedded derivatives— — 48 48 
Other assets:Other assets:Other assets:
Interest rate derivative contracts1
 1,200
 —
 1,201
  
Interest rate derivative contracts2 255 — 257  
Equity derivative contracts51
 1,891
 —
 1,942
  
Equity derivative contracts107 3,802 — 3,909  
Credit derivative contracts—
 4
 —
 4
 Credit derivative contracts— 95 — 95 
Foreign exchange derivative contracts1
 42
 —
 43
  
Foreign exchange derivative contracts— 31 — 31  
Total other assets53
 3,137
 —
 3,190
  
Total other assets109 4,183 — 4,292  
Total assets at fair value$754
 $34,328
 $1,533
 $121,908
  
Total assets at fair value$4,212 $53,558 $2,156 $132,290  
LiabilitiesLiabilities
Policyholder account balances, future policy benefits and claims:Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivativesFixed deferred indexed annuity embedded derivatives$— $3 $45 $48  
IUL embedded derivativesIUL embedded derivatives— — 787 787  
Structured variable annuity embedded derivativesStructured variable annuity embedded derivatives— — 300 300 
Total policyholder account balances, future policy benefits and claimsTotal policyholder account balances, future policy benefits and claims— 3 1,132 1,135 (3)
Market risk benefitsMarket risk benefits— — 1,525 1,525 (2)
Customer depositsCustomer deposits— 8 — 8  
Other liabilities:Other liabilities:
Interest rate derivative contractsInterest rate derivative contracts3 493 — 496  
Equity derivative contractsEquity derivative contracts74 2,635 — 2,709  
Credit derivative contractsCredit derivative contracts— 1 — 1 
Foreign exchange derivative contractsForeign exchange derivative contracts1 4 — 5 
OtherOther228 7 77 312  
Total other liabilitiesTotal other liabilities306 3,140 77 3,523  
Total liabilities at fair valueTotal liabilities at fair value$306 $3,151 $2,734 $6,191  
57
Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives$—
 $4
 $—
 $4
  
IUL embedded derivatives—
 —
 577
 577
  
GMWB and GMAB embedded derivatives—
 —
 45
 45
(2) 
Total policyholder account balances, future policy benefits and claims—
 4
 622
 626
(3) 
Customer deposits—
 9
 —
 9
  
Other liabilities:
Interest rate derivative contracts—
 416
 —
 416
  
Equity derivative contracts5
 2,664
 —
 2,669
  
Foreign exchange derivative contracts4
 27
 —
 31
 
Other6
 6
 27
 39
  
Total other liabilities15
 3,113
 27
 3,155
  
Total liabilities at fair value$15
 $3,126
 $649
 $3,790
  

Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

 December 31, 2022 
Level 1Level 2Level 3Total
(in millions)
Assets
Cash equivalents$1,268 $3,835 $— $5,103  
Available-for-Sale securities:
Corporate debt securities— 9,293 405 9,698  
Residential mortgage backed securities— 15,703 — 15,703  
Commercial mortgage backed securities— 6,212 — 6,212  
Asset backed securities— 6,258 6 6,264  
State and municipal obligations— 797 — 797  
U.S. government and agency obligations2,079 — — 2,079  
Foreign government bonds and obligations— 41 — 41  
Other securities— 17 — 17 
Total Available-for-Sale securities2,079 38,321 411 40,811  
Investments at NAV9 (1)
Trading and other securities211 16 — 227  
Separate account assets at NAV73,962 (1)
Investments and cash equivalents segregated for regulatory purposes646 — — 646 
Market risk benefits— — 1,015 1,015 (2)
Receivables:
Fixed deferred indexed annuity ceded embedded derivatives— — 48 48 
Other assets:
Interest rate derivative contracts7 260 — 267  
Equity derivative contracts129 2,575 — 2,704  
Credit derivative contracts— 13 — 13 
Foreign exchange derivative contracts— 36 — 36  
Total other assets136 2,884 — 3,020  
Total assets at fair value$4,340 $45,056 $1,474 $124,841  
Liabilities
Policyholder account balances, future policy benefits and claims:
Fixed deferred indexed annuity embedded derivatives$— $3 $44 $47  
IUL embedded derivatives— — 739 739  
Structured variable annuity embedded derivatives— — (137)(137)(4)
Total policyholder account balances, future policy benefits and claims— 3 646 649 (5)
Market risk benefits— — 2,118 2,118 (2)
Customer deposits— 4 — 4  
Other liabilities:
Interest rate derivative contracts4 351 — 355  
Equity derivative contracts139 2,238 — 2,377  
Credit derivative contracts— 2 — 2 
Foreign exchange derivative contracts6 8 — 14 
Other205 5 62 272  
Total other liabilities354 2,604 62 3,020  
Total liabilities at fair value$354 $2,611 $2,826 $5,791  
 December 31, 2016
  
Level 1 Level 2 Level 3 Total
(in millions)
Assets
Cash equivalents$30
 $1,796
 $—
 $1,826
  
Available-for-Sale securities:
Corporate debt securities—
 14,925
 1,311
 16,236
  
Residential mortgage backed securities—
 6,650
 268
 6,918
  
Commercial mortgage backed securities—
 3,367
 —
 3,367
  
Asset backed securities—
 1,481
 68
 1,549
  
State and municipal obligations—
 2,358
 —
 2,358
  
U.S. government and agencies obligations8
 —
 —
 8
  
Foreign government bonds and obligations—
 261
 —
 261
  
Common stocks8
 8
 1
 17
  
Common stocks at NAV      5
(1) 
Total Available-for-Sale securities16
 29,050
 1,648
 30,719
  
Trading securities9
 16
 —
 25
  
Separate account assets at NAV80,210
(1) 
Investments segregated for regulatory purposes425
 —
 —
 425
 
Other assets:
Interest rate derivative contracts—
 1,778
 —
 1,778
  
Equity derivative contracts43
 1,531
 —
 1,574
  
Credit derivative contracts—
 1
 —
 1
 
Foreign exchange derivative contracts13
 80
 —
 93
  
Total other assets56
 3,390
 —
 3,446
  
Total assets at fair value$536
 $34,252
 $1,648
 $116,651
  
Liabilities
Policyholder account balances, future policy benefits and claims:
EIA embedded derivatives$—
 $5
 $—
 $5
  
IUL embedded derivatives—
 —
 464
 464
  
GMWB and GMAB embedded derivatives—
 —
 614
 614
(4) 
Total policyholder account balances, future policy benefits and claims—
 5
 1,078
 1,083
(5) 
Customer deposits—
 8
 —
 8
  
Other liabilities:
Interest rate derivative contracts2
 987
 —
 989
  
Equity derivative contracts3
 2,132
 —
 2,135
  
Foreign exchange derivative contracts2
 45
 —
 47
 
Other3
 8
 13
 24
  
Total other liabilities10
 3,172
 13
 3,195
  
Total liabilities at fair value$10
 $3,185
 $1,091
 $4,286
  
(1) Amounts are comprised of certain investmentsfinancial 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 See Note 11 for additional information related to market risk benefits, including the balances of and changes in market risk benefits as well as the significant inputs and assumptions used in the fair value measurements of market risk benefits.
(3) The Company’s adjustment for nonperformance risk resulted in a $184 million cumulative decrease to the GMWB and GMAB embedded derivatives included $494 million of individual contracts in a liability position and $449 million of individual contracts in an asset position as of September 30, 2017.2023.
(3)
The Company’s adjustment for nonperformance risk resulted in a $(376) million cumulative increase (decrease) to the embedded derivatives as of September 30, 2017.

58
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

(4) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability.
(4)
(5) The Company’s adjustment for nonperformance risk resulted in a $139 million cumulative decrease to the embedded derivatives as of December 31, 2022.
The fair value of the GMWB and GMAB embedded derivatives included $880 million of individual contracts in a liability position and $266 million of individual contracts in an asset position as of December 31, 2016.
(5)
The Company’s adjustment for nonperformance risk resulted in a $(498) million cumulative increase (decrease) to the embedded derivatives as of December 31, 2016.
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 SecuritiesReceivables
Corporate Debt SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at July 1, 2023$446 $3 $449 $49 
Total gains (losses) included in:
Other comprehensive income (loss)(3)— (3)— 
Purchases36 — 36 — 
Settlements(18)— (18)(1)
Balance at September 30, 2023$461 $3 $464 $48 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2023$(4)$— $(4)$— 
 Available-for-Sale Securities
Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total
(in millions)
Balance, July 1, 2017$1,333
 $172
 $—
 $33
 $—
 $1,538
Total gains (losses) included in:
Other comprehensive income(1) 1
 —
 (2) 1
 (1)
Purchases39
 —
 65
 10
 —
 114
Settlements(104) (9) —
 —
 —
 (113)
Transfers into Level 3—
 20
 —
 13
 —
 33
Transfers out of Level 3—
 (19) —
 (19) —
 (38)
Balance, September 30, 2017$1,267
 $165
 $65
 $35
 $1
 $1,533
Changes in unrealized gains (losses) relating to assets held at September 30, 2017$—
 $—
 $—
 $—
 $—
 $—

Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at July 1, 2023$46 $809 $557 $1,412 $78 
Total (gains) losses included in:
Net income— (2)2 (2)(246)(3)(244)— (4)
Other comprehensive income (loss)— — — — (1)
Issues— 6 35 41 7 
Settlements(1)(30)(46)(77)(7)
Balance at September 30, 2023$45 $787 $300 $1,132 $77 
Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2023$— $2 (2)$(246)(3)$(244)$— 
59
 
Policyholder Account Balances,
Future Policy Benefits and Claims
 Other Liabilities
IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total
(in millions)
Balance, July 1, 2017$527
 $272
 $799
 $14
Total (gains) losses included in:
Net income35
(1) 
(309)
(2) 
(274) —
Issues26
 84
 110
 13
Settlements(11) (2) (13) —
Balance, September 30, 2017$577
 $45
 $622
 $27
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017$35
(1) 
$(307)
(2) 
$(272) $—
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesResidential Mortgage Backed SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at July 1, 2022$458 $139 $21 $618 $49 
Total gains (losses) included in:
Net income— — — — (1)(2)
Other comprehensive income (loss)(13)(4)— (17)— 
Purchases16 250 17 283 — 
Settlements(58)— — (58)— 
Transfers out of Level 3— (139)(14)(153)— 
Balance at September 30, 2022$403 $246 $24 $673 $47 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2022$(13)$(4)$— $(17)$— 
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at July 1, 2022$45 $719 $(362)$402 $61 
Total (gains) losses included in:
Net income(1)(2)(22)(2)(173)(3)(196)— (4)
Other comprehensive income (loss)— — — — (2)
Issues— 18 19 37 12 
Settlements(1)(26)3 (24)(8)
Balance at September 30, 2022$43 $689 $(513)(5)$219 $63 
Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2022$— $(22)(2)$(173)(3)$(195)$— 
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesAsset Backed SecuritiesTotalFixed Deferred Indexed Annuity Ceded Embedded Derivatives
(in millions)
Balance at January 1, 2023$405 $6 $411 $48 
Total gains (losses) included in:
Net income— — — (1)2 
Other comprehensive income (loss)(2)— (2)— 
Purchases114 — 114 — 
Settlements(56)(3)(59)(2)
Balance at September 30, 2023$461 $3 $464 $48 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2023$(3)$— $(3)$— 
60
 Available-for-Sale Securities Other Derivative Contracts 
Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total
(in millions)  
Balance, July 1, 2016$1,350
 $153
 $—
 $178
 $1,681
 $2
 
Total gains (losses) included in: 
Net income—
 —
 —
 1
 1
(3) 
(2)
(2) 
Other comprehensive income(2) 1
 —
 1
 —
 —
 
Purchases20
 144
 33
 12
 209
 —
 
Settlements(26) (14) —
 —
 (40) —
 
Transfers out of Level 3—
 1
 —
 (27) (26) —
 
Balance, September 30, 2016$1,342
 $285
 $33
 $165
 $1,825
 $—
 
Changes in unrealized gains (losses) relating to assets held at September 30, 2016$—
 $—
 $—
 $—
 $—
 $(2)
(2) 
 
Policyholder Account Balances,
Future Policy Benefits and Claims
  
IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total Other Liabilities
(in millions)  
Balance, July 1, 2016$408
 $1,965
 $2,373
 $—
Total (gains) losses included in:  
Net income12
(1) 
(280)
(2) 
(268) —
Issues25
 77
 102
 13
Settlements(7) (6) (13) —
Balance, September 30, 2016$438
 $1,756
 $2,194
 $13
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016$12
(1) 
$(267)
(2) 
$(255) $—
 Available-for-Sale Securities 
Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Common Stocks Total
(in millions)
Balance, January 1, 2017$1,311
 $268
 $—
 $68
 $1
 $1,648
 
Total gains (losses) included in:
Other comprehensive income1
 2
 —
 —
 1
 4
 
Purchases109
 132
 65
 64
 —
 370
 
Settlements(154) (34) —
 (15) —
 (203) 
Transfers into Level 3—
 20
 —
 27
 8
 55
 
Transfers out of Level 3—
 (223) —
 (109) (9) (341) 
Balance, September 30, 2017$1,267
 $165
 $65
 $35
 $1
 $1,533
 
Changes in unrealized gains (losses) relating to assets held at September 30, 2017$—
 $—
 $—
 $(1) $—
 $(1)
(3) 

Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at January 1, 2023$44 $739 $(137)(5)$646 $62 
Total (gains) losses included in:
Net income3 (2)94 (2)443 (3)540 1 (4)
Issues— 46 66 112 40 
Settlements(2)(92)(72)(166)(26)
Balance at September 30, 2023$45 $787 $300 $1,132 $77 
Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2023$— $94 (2)$443 (3)$537 $— 
Available-for-Sale SecuritiesReceivables
Corporate Debt SecuritiesResidential Mortgage Backed SecuritiesCommercial Mortgage Backed SecuritiesAsset Backed SecuritiesTotalFixed 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)— — — (1)(1)(10)
Other comprehensive income (loss)(46)(4)— — (50)— 
Purchases39 389 112 31 571 — 
Settlements(91)— — — (91)(2)
Transfers out of Level 3— (139)(147)(14)(300)— 
Balance at September 30, 2022$403 $246 $— $24 $673 $47 
Changes in unrealized gains (losses) in net income relating to assets held at September 30, 2022$(1)$— $— $— $(1)(1)$— 
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at September 30, 2022$(45)$(4)$— $— $(49)$— 
Policyholder Account Balances, Future Policy Benefits and ClaimsOther Liabilities
Fixed Deferred Indexed Annuity Embedded DerivativesIUL Embedded DerivativesStructured Variable Annuity Embedded DerivativesTotal
(in millions)
Balance at January 1, 2022$56 $905 $406 $1,367 $61 
Total (gains) losses included in:
Net income(10)(2)(162)(2)(939)(3)(1,111)— (4)
Other comprehensive income (loss)— — — — (5)
Issues— 26 37 63 26 
Settlements(3)(80)(17)(100)(19)
Balance at September 30, 2022$43 $689 $(513)(5)$219 $63 
Changes in unrealized (gains) losses in net income relating to liabilities held at September 30, 2022$— $(162)(2)$(939)(3)$(1,101)$— 
61
 
Policyholder Account Balances,
Future Policy Benefits and Claims
 Other Liabilities 
IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total
(in millions)
Balance, January 1, 2017$464
 $614
 $1,078
 $13
 
Total (gains) losses included in:
Net income75
(1) 
(798)
(2) 
(723) 1
(4) 
Issues70
 238
 308
 13
 
Settlements(32) (9) (41) —
 
Balance, September 30, 2017$577
 $45
 $622
 $27
 
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2017$75
(1) 
$(771)
(2) 
$(696) $—
 
 Available-for-Sale Securities Other Derivative Contracts 
Corporate Debt Securities Residential Mortgage Backed Securities Commercial Mortgage Backed Securities Asset Backed Securities Total
(in millions)  
Balance, January 1, 2016$1,425
 $218
 $3
 $162
 $1,808
 $—
 
Cumulative effect of change in accounting policies—
 —
 —
 21
 21
 —
 
Total gains (losses) included in: 
Net income(2) —
 —
 —
 (2)
(3) 
(2)
(2) 
Other comprehensive income29
 —
 —
 (5) 24
 —
 
Purchases34
 144
 42
 28
 248
 2
 
Settlements(144) (53) (3) (1) (201) —
 
Transfers into Level 3—
 —
 —
 12
 12
 —
 
Transfers out of Level 3—
 (24) (9) (52) (85) —
 
Balance, September 30, 2016$1,342
 $285
 $33
 $165
 $1,825
 $—
 
Changes in unrealized gains (losses) relating to assets held at September 30, 2016$(1) $—
 $—
 $—
 $(1)
(3) 
$(2)
(2) 
 
Policyholder Account Balances,
Future Policy Benefits and Claims
 Other Liabilities
IUL Embedded Derivatives GMWB and GMAB Embedded Derivatives Total 
(in millions)  
Balance, January 1, 2016$364
 $851
 $1,215
 $—
Total (gains) losses included in:  
Net income8
(1) 
708
(2) 
716
 —
Issues86
 215
 301
 13
Settlements(20) (18) (38) —
Balance, September 30, 2016$438
 $1,756
 $2,194
 $13
Changes in unrealized (gains) losses relating to liabilities held at September 30, 2016$8
(1) 
$830
(2) 
$838
 $—
(1) Included in interest credited to fixed accounts in the Consolidated Statements of Operations.
(2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Operations.
(3) Included in net investment income in the Consolidated Statements of Operations.
(4) Included in general and administrative expense in the Consolidated Statements of Operations.

Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

(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.
(5) The fair value of the structured variable annuity embedded derivatives was a net asset as of January 1, 2023 and September 30, 2022 and the amounts are presented as contra liabilities.
The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(37)$(17) million and $8$6 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the three months ended September 30, 20172023 and 2016,2022, respectively.
The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $(91)$44 million and $295$126 million, net of DAC, DSIC, unearned revenue amortization and the reinsurance accrual, for the nine months ended September 30, 20172023 and 2016,2022, respectively.
Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third-party pricing service with observable inputs.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. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2.
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:
 September 30, 2023
Fair ValueValuation TechniqueUnobservable InputRange Weighted Average
(in millions)
Corporate debt securities (private placements)$460 Discounted cash flow
Yield/spread to U.S. Treasuries (1)
1.0%–2.5%1.2%
Asset backed securities$1 Discounted cash flow
Annual short-term default rate (2)
3.0%3.0%
Annual long-term default rate (2)
3.5%3.5%
Discount rate28.5%28.5%
Constant prepayment rate10.0%10.0%
Loss recovery63.6%63.6%
Fixed deferred indexed annuity ceded embedded derivatives$48 Discounted cash flow
Surrender rate (3)
0.0%–66.8%1.4%
Fixed deferred indexed annuity embedded derivatives$45 Discounted cash flow
Surrender rate (3)
0.0%–66.8%1.4%
   
Nonperformance risk (4)
105 bps105 bps
IUL embedded derivatives$787 Discounted cash flow
Nonperformance risk (4)
105 bps105 bps
Structured variable annuity embedded derivatives$300 Discounted cash flow
Surrender rate (3)
0.5%–75.0%2.8%
Nonperformance risk (4)
105 bps105 bps
Contingent consideration liabilities$77 Discounted cash flow
Discount rate (5)
0.0%–10.5%2.7%
 September 30, 2017
Fair ValueValuation TechniqueUnobservable InputRange Weighted Average
(in millions)
Corporate debt securities (private placements)$1,266 Discounted cash flowYield/spread to U.S. Treasuries0.8%–2.3%1.1%
Asset backed securities$11 Discounted cash flowAnnual short-term default rate3.8% 
   Annual long-term default rate2.5%–3.0%2.6%
   Discount rate11.0% 
   Constant prepayment rate5.0%–10.0%9.9%
   Loss recovery36.4%–63.6%63.1%
IUL embedded derivatives$577 Discounted cash flow
Nonperformance risk (1)
67 bps 
GMWB and GMAB embedded derivatives$45 Discounted cash flow
Utilization of guaranteed withdrawals (2)
0.0%–42.0% 
    Surrender rate0.1%–74.7% 
    
Market volatility (3)
4.3%–15.9% 
    
Nonperformance risk (1)
67 bps 
Contingent consideration liabilities$27 Discounted cash flowDiscount rate9.0% 

62
 December 31, 2016
Fair ValueValuation TechniqueUnobservable InputRange Weighted Average
(in millions)
Corporate debt securities (private placements)$1,308 Discounted cash flowYield/spread to U.S. Treasuries0.9%–2.5%1.3%
Asset backed securities$14 Discounted cash flowAnnual short-term default rate4.8% 
   Annual long-term default rate2.5% 
   Discount rate13.5% 
   Constant prepayment rate5.0%–10.0%9.9%
   Loss recovery36.4%–63.6%62.8%
IUL embedded derivatives$464 Discounted cash flow
Nonperformance risk (1)
82 bps 
GMWB and GMAB embedded derivatives$614 Discounted cash flow
Utilization of guaranteed withdrawals (2)
0.0%–75.6% 
    Surrender rate0.1%–66.4% 
    
Market volatility (3)
5.3%–21.2% 
    
Nonperformance risk (1)
82 bps 
Contingent consideration liabilities$13 Discounted cash flowDiscount rate9.0% 
(1)
The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivatives.
(2)
The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year.
(3)
Market volatility is implied volatility of fund of funds and managed volatility funds.
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

 December 31, 2022
Fair ValueValuation TechniqueUnobservable InputRangeWeighted Average
(in millions)
Corporate debt securities (private placements)$404 Discounted cash flow
Yield/spread to U.S. Treasuries (1)
1.1%–2.3%1.4%
Asset backed securities$1 Discounted cash flow
Annual short-term default rate (2)
0.8%0.8%
Annual long-term default rate (2)
3.5%3.5%
Discount rate27.0%27.0%
Constant prepayment rate10.0%10.0%
Loss recovery63.6%63.6%
Fixed deferred indexed annuity ceded embedded derivatives$48 Discounted cash flow
Surrender rate (3)
0.0%–66.8%1.4%
Fixed deferred indexed annuity embedded derivatives$44 Discounted cash flow
Surrender rate (3)
0.0%–66.8%1.4%
 
Nonperformance risk (4)
95 bps95 bps
IUL embedded derivatives$739 Discounted cash flow
Nonperformance risk (4)
95 bps95 bps
Structured variable annuity embedded derivatives$(137)(6)Discounted cash flow
Surrender rate (3)
0.8%–40.0%0.9%
Nonperformance risk (4)
95 bps95 bps
Contingent consideration liabilities$62 Discounted cash flow
Discount rate (5)
0.0%–10.5%3.3%
(1) The weighted average for the yield/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 weighted average surrender rate represents the average assumption weighted based on the account value of each contract.
(4) The nonperformance risk is the spread added to the U.S. Treasury curve.
(5) 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.
(6) The fair value of the structured variable annuity embedded derivatives was a net asset as of December 31, 2022 and the amount is presented as a contra liability.
Level 3 measurements not included in the tabletables above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.
SensitivityUncertainty of Fair Value Measurements to Changes in Unobservable Inputs
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 resulthave 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 resulthave resulted in a significantly lower (higher) fair value measurement and a significant increase (decrease)increases (decreases) in loss recovery in isolation would resulthave resulted in a significantly higher (lower)lower (higher) fair value measurement. A significant increase (decrease)
Significant increases (decreases) in the constant prepayment rate in isolation would resulthave resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in the surrender assumption 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 resulthave resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly higher (lower) liability value. Significant increases (decreases) in nonperformance risk and surrender rateassumption used in the fair value measurementmeasurements of the GMWBfixed deferred indexed annuity embedded derivatives and GMABstructured variable annuity embedded derivatives in isolation would resulthave 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 resulthave resulted in a significantly lower (higher) fair value measurement.
63
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
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 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 partythird-party pricing services, non-binding broker quotes, or other model-based valuation techniques.
Level 1 securities primarily include trading 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, and U.S. agency and 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 partythird-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. Thesecurities with fair value of corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and certain asset backed securities classified as Level 3 is 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 addition to the general pricing controls, the Company reviews the broker prices to ensure that the broker quotes are reasonable and, when available, compares prices of privately issued securities to public issues from the same issuer to ensure that the implicit illiquidity premium applied to the privately placed investment is reasonable considering investment characteristics, maturity, and average life of the investment.
In consideration of the above, managementManagement is responsible for the fair values recorded on the financial statements. Prices received from

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


third party 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 partythird-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
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.
64
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Other Assets
Derivatives that are measured using quoted prices in active markets, such as foreign currency forwards, or 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 both September 30, 20172023 and December 31, 2016.2022. See Note 1114 and Note 1215 for further information on the credit risk of derivative instruments and related collateral.
Liabilities
Policyholder Account Balances, Future Policy Benefits and Claims
The Company valuesThere is no active market for the transfer of the Company’s embedded derivatives attributable to the provisions of certainfixed deferred indexed annuity, structured variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions, implied volatility, and margins for risk, profit and expenses that the Company believes an exit 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.IUL products.
The Company uses various Black-Scholes calculationsa discounted cash flow model to determine the fair value of the embedded derivatives associated with the provisions of its EIA and IUL products. Significantequity index annuity product. The projected cash flows generated by this model are based on significant observable inputs related to the EIA calculation include observable 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 thefixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and the 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, to the fair value, thefixed 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 policyholderPolicyholder account balances, future policy benefits and claims.
The Company’s Corporate Actuarial Department calculates the fair value of the embedded derivatives on a monthly basis. During this process, control checks are performed to validate the completeness of the data. Actuarial management approves various components of the valuation along with the final results. The change in the fair value of the embedded derivatives is reviewed monthly with senior management. The Level 3 inputs into the valuation are consistent with the pricing assumptions and updated as experience develops. Significant unobservable inputs that reflect policyholder behavior are reviewed quarterly along with other valuation assumptions.
Customer Deposits
The Company uses various Black-Scholes calculationsmodels to determine the fair value of the embedded derivative liability associated with the provisions of its stock market certificates.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 foreign currency forwards, or 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

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


derivative liabilities was immaterial as of both September 30, 20172023 and December 31, 2016.2022. See Note 1114 and Note 1215 for further information on the credit risk of derivative instruments and related collateral.
Securities sold but not yet purchased include highly liquid investments which are short-term in nature. Securities sold but not yet purchased are measured using amortized cost, which isrepresent obligations of the Company to deliver specified securities that it does not yet own, creating a reasonable estimate ofliability to purchase the security in the market at prevailing prices. When available, the fair value because 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 short time between the purchasepresent value of the instrumentcash flows. Level 1 securities sold but not yet purchased primarily include trading securities and its expected realization and are classified asU.S. Treasuries traded in active markets. Level 2.2 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. Contingentacquisitions. Contingent consideration liabilities are recorded at fair value usingutilizing a discounted cash flow model under multiple scenarios andusing 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.
Loans heldFair Value on a Nonrecurring Basis
The Company assesses its investment in affordable housing partnerships for saleimpairment. The investments that are requireddetermined to be recorded at the lower of cost orimpaired are written down to their fair value. DuringThe Company uses a discounted cash flow model to measure the third quarterfair value of 2017,these investments. Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company entered into an agreement with an unaffiliated third party to sell $258 millionand discount rates based on market condition and the financial strength of consumer loans at a $7 million loss.the syndicator (general partner). The loans arebalance of
65
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
affordable housing partnerships measured at fair value on a nonrecurring basis. The fair value of the loans, which reflects the selling price negotiated with the third party,basis was $251$44 million and $58 million as of September 30, 2017,2023 and December 31, 2022, respectively, and is classified as Level 3 asin the valuation includes unobservable inputs.
During the reporting periods, there were no other material assets or liabilities measured at fair value on a nonrecurring basis.hierarchy.
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:
 September 30, 2023
Carrying ValueFair Value
Level 1Level 2Level 3Total
(in millions)
Financial Assets
Mortgage loans, net$2,064 $— $223 $1,612 $1,835 
Policy loans890 — 890 — 890 
Receivables9,627 118 1,620 6,355 8,093 
Restricted and segregated cash851 851 — — 851 
Other investments and assets336 — 286 49 335 
Financial Liabilities
Policyholder account balances, future policy benefits and claims$15,996 $— $— $13,124 $13,124 
Investment certificate reserves12,604 — — 12,537 12,537 
Banking and brokerage deposits23,525 23,502 23 — 23,525 
Separate account liabilities — investment contracts3,073 — 3,073 — 3,073 
Debt and other liabilities3,879 124 3,600 6 3,730 
 September 30, 2017 
Carrying Value Fair Value
Level 1 Level 2 Level 3 Total
(in millions)
Financial Assets
Mortgage loans, net$2,749
 $—
 $—
 $2,768
 $2,768
 
Policy and certificate loans841
 —
 1
 797
 798
 
Receivables1,595
 196
 942
 457
 1,595
 
Restricted and segregated cash2,707
 2,707
 —
 —
 2,707
 
Other investments and assets511
 —
 439
 71
 510
 
 
Financial Liabilities
Policyholder account balances, future policy benefits and claims$10,415
 $—
 $—
 $11,052
 $11,052
 
Investment certificate reserves6,364
 —
 —
 6,351
 6,351
 
Brokerage customer deposits4,065
 4,065
 —
 —
 4,065
 
Separate account liabilities measured at NAV4,989
       4,989
(1) 
Debt and other liabilities3,395
 202
 3,197
 140
 3,539
 
 December 31, 2016 
Carrying Value Fair Value
Level 1 Level 2 Level 3 Total
(in millions)
Financial Assets
Mortgage loans, net$2,986
 $—
 $—
 $2,972
 $2,972
 
Policy and certificate loans831
 —
 1
 807
 808
 
Receivables (2)
1,396
 127
 870
 403
 1,400
 
Restricted and segregated cash2,905
 2,905
 —
 —
 2,905
 
Other investments and assets508
 —
 449
 61
 510
 
 
Financial Liabilities
Policyholder account balances, future policy benefits and claims$10,906
 $—
 $—
 $11,417
 $11,417
 
Investment certificate reserves5,927
 —
 —
 5,914
 5,914
 
Brokerage customer deposits4,112
 4,112
 —
 —
 4,112
 
Separate account liabilities measured at NAV4,253
       4,253
(1) 
Debt and other liabilities3,371
 146
 3,176
 169
 3,491
 

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


(1)
Amounts are comprised of certain investments 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)
In the third quarter of 2017, the Company corrected the classification of the fair value of advisor loans, net from Level 2 to Level 3 as the valuation includes a significant unobservable input. The fair value levels at December 31, 2016 have been revised to reflect this change. The fair value of advisor loans, net was $400 million at December 31, 2016.
Mortgage Loans, Net
The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities, liquidity and characteristics including LTV ratio, occupancy rate, refinance risk, debt service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company’s estimate of the amount recoverable on the loan. Given the significant unobservable inputs to the valuation of commercial mortgage loans, these measurements are classified as Level 3.
The fair value of consumer loans is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, loss severity, liquidity and credit loss estimates, with discount rates based on the Company’s estimate of current market conditions. The fair value of consumer loans is classified as Level 3 as the valuation includes significant unobservable inputs.
Policy and Certificate Loans
Policy loans represent loans made against the cash surrender value of the underlying life insurance or annuity product. These loans and the related interest are usually realized at death of the policyholder or contractholder or at surrender of the contract and are not transferable without the underlying insurance or annuity contract. The fair value of policy loans is determined by estimating expected cash flows discounted at rates based on the U.S. Treasury curve. Policy loans are classified as Level 3 as the discount rate used may be adjusted for the underlying performance of individual policies.
Certificate loans represent loans made against and collateralized by the underlying certificate balance. These loans do not transfer to third parties separate from the underlying certificate. The outstanding balance of these loans is considered a reasonable estimate of fair value and is classified as Level 2.
 December 31, 2022
Carrying ValueFair Value
Level 1Level 2Level 3Total
(in millions)
Financial Assets
Mortgage loans, net$1,987 $— $105 $1,695 $1,800 
Policy loans847 — 847 — 847 
Receivables10,287 199 1,742 6,996 8,937 
Restricted and segregated cash1,583 1,583 — — 1,583 
Other investments and assets375 — 323 51 374 
Financial Liabilities
Policyholder account balances, future policy benefits and claims$14,450 $— $— $12,470 $12,470 
Investment certificate reserves9,310 — — 9,253 9,253 
Banking and brokerage deposits21,474 21,474 — — 21,474 
Separate account liabilities — investment contracts3,383 — 3,383 — 3,383 
Debt and other liabilities3,242 234 2,909 7 3,150 
Receivables
Brokerage include deposit receivables, brokerage margin loans, are measured at outstanding balances, which are a reasonable estimate of fair value because of the sufficiency of the collateral and short term nature of these loans. Margin loans that are sufficiently collateralized are classified as Level 2. Margin loans that are not sufficiently collateralized are classified as Level 3.
Securities borrowed require the Company to deposit cash or collateral with the lender. As the market value of the securities borrowed, is monitored daily, the carrying value is a reasonable estimatepledged asset lines of fair value. The fair value of securities borrowed is classified as Level 1 as the value of the underlying securities is based on unadjusted prices for identical assets.
The Company offerscredit and loans to financial advisors primarily for recruiting, transitional cost assistance and retention purposes. Advisor loans are recorded at principal less an allowance for doubtful accounts. The fair value of advisor loans is determined by discounting contractual cash flows, net of estimated credit losses, using a current market interest rate. Advisor loans are classified as Level 3.
Restricted and Segregated Cash
advisors. Restricted and segregated cash is generally set aside for specific business transactions and restrictions are specific to the Company and do not transfer to third party market participants; therefore, the carrying amount is a reasonable estimate of fair value.
Amountsincludes cash segregated under federal and other regulations may also reflect resale agreements and are measured atheld in special reserve bank accounts for the price at which the securities will be sold. This measurement is a reasonable estimate of fair value becauseexclusive benefit of the short time between entering into the transaction and its expected realization and the reduced risk of credit loss due to pledging U.S. government-backed securities as collateral.
The fair value of restricted and segregated cash is classified as Level 1.
Other Investments and Assets
Company’s brokerage customers. Other investments and assets primarily consist of syndicated loans. The fair value ofinclude syndicated loans, is obtained from a third-party pricing servicecredit card receivables, certificate of deposits with original or non-binding broker quotes. Syndicated loans that are priced using a market approach with observable inputs are classified as Level 2 and syndicated loans priced using a single non-binding broker quote are classified as Level 3.
Other investments and assets also includeremaining 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. The fair value of these assets is approximated by the carrying valueSee Note 7 for additional information on mortgage loans, policy loans, syndicated loans, credit card receivables and classified as Level 3 due to restrictions on transfer and lack of liquidity in the primary market for these assets.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


deposit receivables.
Policyholder Account Balances, Future Policy Benefitsaccount balances, future policy benefits and Claims
The fair value ofclaims include fixed annuities in deferral status, is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a margin for adverse deviation from estimated early policy surrender behavior and the Company’s nonperformance risk specific to these liabilities. The fair value of non-life contingent fixed annuities in payout status, EIAindexed and structured variable annuity host contracts, and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Given the use of significant unobservable inputs tocontracts. See Note 9 for additional information on these valuations, the measurements are classified as Level 3.
liabilities. Investment Certificate Reserves
The fair value of investment certificate reserves is determined by discounting cash flows using discount rates that reflect current pricing for assets with similar terms and characteristics, with adjustments for expense margin and the Company’s nonperformance risk specific to these liabilities. Given the use of significant unobservable inputs to this valuation, the measurement is classified as Level 3.
Brokerage Customer Deposits
Brokeragerepresent customer deposits for fixed rate certificates and stock market certificates. Banking and brokerage deposits are liabilities with no defined maturitiesamounts payable to customers related to free credit balances, funds deposited by customers and fair value is the amount payable on demand at the reporting date. The fair value of these deposits is classified as Level 1.
Separate Account Liabilities
Certain separate account liabilities are classified as investment contracts and are carried at an amount equalfunds accruing to the related separate account assets. The NAV of the related separate account assets is usedcustomers as a practical expedient for fair value and represents the exit price for the separate account liabilities.result of trades or contracts. Separate account liabilities are excluded from classificationprimarily investment contracts in the fair value hierarchy.
pooled pension funds offered by Threadneedle. Debt and Other Liabilities
The fair value ofother liabilities include the Company’s long-term debt, is based on quoted prices in active markets, when available. If quoted prices are not available, fair values are obtained from third party pricing services, broker quotes, or other model-based valuation techniques such as present value of cash flows. The fair value of long-term debt is classified as Level 2.
The fair value of short-term borrowings, is obtained from a third party pricing service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk. The fair value of short-term borrowings is classified as Level 2.
The fair value ofsecurities loaned and future funding
66
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
commitments to affordable housing partnerships and other real estate partnerships is determined by discounting cash flows. The fair value of these commitments includes an adjustmentpartnerships. See Note 12 for further information on the Company’s nonperformance risklong-term debt and is classified as Level 3 due to the use of the significant unobservable input.short-term borrowings.
Securities loaned require the borrower to deposit cash or collateral with the Company. As the market value of the securities loaned is monitored daily, the carrying value is a reasonable estimate of fair value. Securities loaned are classified as Level 1 as the fair value of the underlying securities is based on unadjusted prices for identical assets.
11.14.  Offsetting Assets and Liabilities
Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments repurchase agreements 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 securities 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.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


The following tables present the gross and net information about the Company’s assets subject to master netting arrangements:
 September 30, 2023
Gross Amounts of Recognized AssetsGross Amounts Offset in the Consolidated Balance SheetsAmounts of Assets Presented in the Consolidated Balance SheetsGross Amounts Not Offset in the
Consolidated Balance Sheets		Net Amount
Financial Instruments (1)
Cash CollateralSecurities Collateral
(in millions)
Derivatives:
OTC$4,188 $— $4,188 $(2,877)$(1,083)$(199)$29 
OTC cleared37 — 37 (13)— — 24 
Exchange-traded67 — 67 (49)— — 18 
Total derivatives4,292 — 4,292 (2,939)(1,083)(199)71 
Securities borrowed119 — 119 (42)— (75)2 
Total$4,411 $— $4,411 $(2,981)$(1,083)$(274)$73 
September 30, 2017 December 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
Consolidated Balance Sheets		 Net AmountGross Amounts of Recognized AssetsGross Amounts Offset in the Consolidated Balance SheetsAmounts of Assets Presented in the Consolidated Balance SheetsGross Amounts Not Offset in the
Consolidated Balance Sheets		Net Amount
Financial Instruments (1)
 Cash Collateral Securities Collateral
Financial Instruments (1)
Cash CollateralSecurities Collateral
(in millions)(in millions)
Derivatives:Derivatives:Derivatives:
OTC$3,156
 $—
 $3,156
 $(2,379) $(661) $(109) $7
OTC$2,900$—$2,900$(2,322)$(568)$(5)$5
OTC cleared (2)
14
 —
 14
 (12) —
 —
 2
OTC clearedOTC cleared23—23(9)——14
Exchange-traded20
 —
 20
 (2) —
 —
 18
Exchange-traded97—97(75)——22
Total derivatives3,190
 —
 3,190
 (2,393) (661) (109) 27
Total derivatives3,020—3,020(2,406)(568)(5)41
Securities borrowed196
 —
 196
 (48) —
 (145) 3
Securities borrowed199—199(31)—(164)4
Total$3,386
 $—
 $3,386
 $(2,441) $(661) $(254) $30
Total$3,219$—$3,219$(2,437)$(568)$(169)$45
 December 31, 2016
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
Consolidated Balance Sheets		 Net Amount
Financial Instruments (1)
 Cash Collateral Securities Collateral
(in millions)
Derivatives:
OTC$2,920
 $—
 $2,920
 $(2,214) $(406) $(235) $65
OTC cleared512
 —
 512
 (509) (3) —
 —
Exchange-traded14
 —
 14
 (2) —
 —
 12
Total derivatives3,446
 —
 3,446
 (2,725) (409) (235) 77
Securities borrowed127
 —
 127
 (16) —
 (108) 3
Total$3,573
 $—
 $3,573
 $(2,741) $(409) $(343) $80
(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.
(2) The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral.
67
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:
 September 30, 2023
Gross Amounts of Recognized LiabilitiesGross Amounts Offset in the
Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance SheetsGross Amounts Not Offset in the
Consolidated Balance Sheets		Net Amount
Financial Instruments (1)
Cash CollateralSecurities Collateral
(in millions)
Derivatives:
OTC$3,148$—$3,148$(2,877)$(22)$(247)$2
OTC cleared13—13(13)———
Exchange-traded50—50(49)——1
Total derivatives3,211—3,211(2,939)(22)(247)3
Securities loaned124—124(42)—(80)2
Total$3,335$—$3,335$(2,981)$(22)$(327)$5
September 30, 2017 December 31, 2022
Gross Amounts of Recognized Liabilities Gross Amounts Offset in the
Consolidated Balance Sheets		 Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the
Consolidated Balance Sheets		 Net AmountGross Amounts of Recognized LiabilitiesGross Amounts Offset in the
Consolidated Balance Sheets		Amounts of Liabilities Presented in the Consolidated Balance SheetsGross Amounts Not Offset in the
Consolidated Balance Sheets		Net Amount
Financial Instruments (1)
 Cash Collateral Securities Collateral
Financial Instruments (1)
Cash CollateralSecurities Collateral
(in millions)(in millions)
Derivatives:Derivatives:Derivatives:
OTC$3,102
 $—
 $3,102
 $(2,379) $(48) $(669) $6
OTC$2,646$—$2,646$(2,322)$(43)$(277)$4
OTC cleared (2)
12
 —
 12
 (12) —
 —
 —
OTC clearedOTC cleared9—9(9)———
Exchange-traded2
 —
 2
 (2) —
 —
 —
Exchange-traded93—93(75)—(17)1
Total derivatives3,116
 —
 3,116
 (2,393) (48) (669) 6
Total derivatives2,748—2,748(2,406)(43)(294)5
Securities loaned202
 —
 202
 (48) —
 (150) 4
Securities loaned235—235(31)—(197)7
Repurchase agreements50
 —
 50
 —
 —
 (48) 2
Total$3,368
 $—
 $3,368
 $(2,441) $(48) $(867) $12
Total$2,983$—$2,983$(2,437)$(43)$(491)$12

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


 December 31, 2016
Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated
Balance Sheets		 Amounts of Liabilities Presented in the
Consolidated Balance Sheets		 Gross Amounts Not Offset in the
Consolidated Balance Sheets		 Net Amount
Financial Instruments (1)
 Cash Collateral Securities Collateral
(in millions)
Derivatives:
OTC$2,626
 $—
 $2,626
 $(2,214) $(53) $(352) $7
OTC cleared539
 —
 539
 (509) (25) —
 5
Exchange-traded6
 —
 6
 (2) —
 —
 4
Total derivatives3,171
 —
 3,171
 (2,725) (78) (352) 16
Securities loaned146
 —
 146
 (16) —
 (125) 5
Repurchase agreements50
 —
 50
 —
 —
 (50) —
Total$3,367
 $—
 $3,367
 $(2,741) $(78) $(527) $21
(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.
(2) The decrease in OTC cleared derivatives from December 31, 2016 is a result of certain central clearing parties amending their rules resulting in variation margin payments being settlement payments, as opposed to collateral.
In the tables above, the amountsamount of assets or liabilities presented in the Consolidated Balance Sheets 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 otherOther assets and otherOther liabilities. Cash collateral pledged by the Company is reflected in otherOther assets and cash collateral accepted by the Company is reflected in otherOther liabilities. Repurchase agreements are reflected in short-term borrowings. Securities borrowing and lending agreements are reflected in receivablesReceivables and otherOther liabilities, respectively. See Note 1215 for additional disclosures related to the Company’s derivative instruments and Note 95 for additional disclosuresinformation related to the Company’s repurchase agreements.derivatives held by consolidated investment entities.
12.15.  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.
TheCertain of the Company’s freestanding derivative instruments are all 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 1114 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral.

68
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

TheGenerally, 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:
September 30, 2017 December 31, 2016September 30, 2023December 31, 2022
Notional Gross Fair ValueNotional Gross Fair ValueNotionalGross Fair ValueNotionalGross Fair Value
Assets (1)
 
Liabilities (2)(3)
Assets (1)
 
Assets (1)
 
Liabilities (2)(3)
Assets (1)
Liabilities (2)
Liabilities (2)
(in millions)(in millions)
Derivatives designated as hedging instrumentsDerivatives designated as hedging instrumentsDerivatives designated as hedging instruments
Interest rate contracts$675
 $30
 $—
 $675
 $40
 $—
Foreign exchange contracts99
 —
 4
 164
 12
 —
Equity contracts - cash flow hedgesEquity contracts - cash flow hedges$1 $— $— $6 $— $1 
Foreign exchange contracts – net investment hedgesForeign exchange contracts – net investment hedges61 — — 85 — — 
Total qualifying hedges774
 30
 4
 839
 52
 —
Total qualifying hedges62 — — 91 — 1 
Derivatives not designated as hedging instrumentsDerivatives not designated as hedging instrumentsDerivatives not designated as hedging instruments
Interest rate contracts66,504
 1,171
 416
 72,449
 1,738
 989
Interest rate contracts46,267 257 496 101,307 267 355 
Equity contracts60,979
 1,942
 2,669
 63,015
 1,574
 2,135
Equity contracts80,379 3,909 2,709 68,493 2,704 2,376 
Credit contracts721
 4
 —
 1,039
 1
 —
Credit contracts3,414 95 1 1,857 13 2 
Foreign exchange contracts4,494
 43
 27
 4,733
 81
 47
Foreign exchange contracts3,336 31 5 3,171 36 14 
Other contracts451
 —
 —
 241
 —
 —
Total non-designated hedges133,149
 3,160
 3,112
 141,477
 3,394
 3,171
Total non-designated hedges133,396 4,292 3,211 174,828 3,020 2,747 
Embedded derivativesEmbedded derivativesEmbedded derivatives
GMWB and GMAB (4)
N/A
 —
 45
 N/A
 —
 614
IULN/A
 —
 577
 N/A
 —
 464
IULN/A— 787 N/A— 739 
EIAN/A
 —
 4
 N/A
 —
 5
Fixed deferred indexed annuities and deposit receivablesFixed deferred indexed annuities and deposit receivablesN/A48 48 N/A48 47 
Structured variable annuities (3)
Structured variable annuities (3)
N/A— 300 N/A— (137)
SMCN/A
 —
 9
 N/A
 —
 8
SMCN/A— 8 N/A— 4 
Total embedded derivativesN/A
 —
 635
 N/A
 —
 1,091
Total embedded derivativesN/A48 1,143 N/A48 653 
Total derivatives$133,923
 $3,190
 $3,751
 $142,316
 $3,446
 $4,262
Total derivatives$133,458 $4,340 $4,354 $174,919 $3,068 $3,401 
N/A  Not applicable.
(1)The fair value of freestanding derivative assets is included in Other assets onand the Consolidated Balance Sheets.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 on the Consolidated Balance Sheets.liabilities. The fair value of GMWBIUL, fixed deferred indexed annuity and GMAB, IUL, and EIAstructured variable annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims on the Consolidated Balance Sheets.claims. The fair value of the SMC embedded derivative liability is included in Customer deposits on the Consolidated Balance Sheets.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 $1.3 billion and $1.5 billion as of September 30, 2017 and December 31, 2016, respectively. See Note 11 for additional information related to master netting arrangements and cash collateral.
(4) The fair value of the GMWB and GMABstructured variable annuity embedded derivatives as of September 30, 20172023 included $494$459 million of individual contracts in a liability position and $449$159 million of individual contracts in an asset position. The fair value of the GMWB and GMABstructured variable annuity embedded derivatives as of December 31, 20162022 included $880$194 million of individual contracts in a liability position and $266$331 million of individual contracts in an asset position.
See Note 1013 for additional information regarding the Company’s fair value measurement of derivative instruments.
As of September 30, 20172023 and December 31, 2016,2022, investment securities with a fair value of $122$1.6 billion and $1.7 billion, respectively, were pledged to meet contractual obligations under derivative contracts, of which $264 million and $235$302 million, respectively, may be sold, pledged or rehypothecated by the counterparty. As of September 30, 2023 and December 31, 2022, investment securities with a fair value of $212 million and $14 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $122$211 million and $118$5 million, respectively, may be sold, pledged or rehypothecated by the Company. As of both September 30, 20172023 and December 31, 2016,2022, the Company had sold, pledged or rehypothecated $12 million and $19 million, respectively,none of these securities. In addition, as of both September 30, 20172023 and December 31, 2016,2022, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.

69
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)(Continued)


Derivatives Not Designated as Hedges
The following tables present 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 ExpenseNet Investment IncomeBanking and Deposit Interest ExpenseDistribution ExpensesInterest Credited to Fixed AccountsBenefits, Claims, Losses and Settlement ExpensesChange in Fair Value of Market Risk BenefitsInterest and Debt ExpenseGeneral and Administrative Expense
(in millions)(in millions)
Three Months Ended September 30, 2017
Three Months Ended September 30, 2023Three Months Ended September 30, 2023
Interest rate contracts$(1) $—
 $—
 $—
 $14
 $—
Interest rate contracts$— $— $— $— $(7)$(1,073)$— $— 
Equity contracts(10) 1
 13
 18
 (261) 2
Equity contracts1 (1)(44)(19)(119)245 — (5)
Credit contracts—
 —
 —
 —
 (3) —
Credit contracts— — (2)— — 154 — — 
Foreign exchange contracts—
 —
 1
 —
 1
 1
Foreign exchange contracts— — — — — 51 — — 
Other contracts—
 —
 —
 —
 (2) —
GMWB and GMAB embedded derivatives—
 —
 —
 —
 227
 —
IUL embedded derivatives—
 —
 —
 (24) —
 —
IUL embedded derivatives— — — 28 — — — — 
Structured variable annuity embedded derivativesStructured variable annuity embedded derivatives— — — — 246 — — — 
SMC embedded derivatives—
 (1) —
 —
 —
 —
SMC embedded derivatives— 1 — — — — — — 
Total gain (loss)$(11) $—
 $14
 $(6) $(24) $3
Total gain (loss)$1 $— $(46)$9 $120 $(623)$— $(5)
Three Months Ended September 30, 2022Three Months Ended September 30, 2022
Interest rate contractsInterest rate contracts$— $— $— $— $(19)$(734)$— $— 
Equity contractsEquity contracts3 (1)(41)(23)(61)402 — (5)
Credit contractsCredit contracts— — 1 — — 92 — — 
Foreign exchange contractsForeign exchange contracts1 — — — — 112 — (8)
IUL embedded derivativesIUL embedded derivatives— — — 48 — — — — 
Structured variable annuity embedded derivativesStructured variable annuity embedded derivatives— — — — 173 — — — 
SMC embedded derivativesSMC embedded derivatives— 1 — — — — — — 
Total gain (loss)Total gain (loss)$4 $— $(40)$25 $93 $(128)$— $(13)
70
Nine Months Ended September 30, 2017
Interest rate contracts$(8) $—
 $—
 $—
 $61
 $—
Equity contracts(7) 3
 36
 50
 (920) 7
Credit contracts—
 —
 —
 —
 (22) —
Foreign exchange contracts—
 —
 3
 —
 (27) 5
Other contracts—
 —
 —
 —
 (2) —
GMWB and GMAB embedded derivatives—
 —
 —
 —
 569
 —
IUL embedded derivatives—
 —
 —
 (43) —
 —
SMC embedded derivatives—
 (3) —
 —
 —
 —
Total gain (loss)$(15) $—
 $39
 $7
 $(341) $12
 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 September 30, 2016
Interest rate contracts$6
 $—
 $—
 $—
 $(12) $—
Equity contracts2
 2
 11
 12
 (385) 2
Credit contracts—
 —
 —
 —
 (3) —
Foreign exchange contracts2
 —
 —
 —
 (12) 3
Other contracts—
 —
 —
 —
 (1) —
GMWB and GMAB embedded derivatives—
 —
 —
 —
 209
 —
IUL embedded derivatives—
 —
 —
 (5) —
 —
SMC embedded derivatives—
 (1) —
 —
 —
 —
Total gain (loss)$10
 $1
 $11
 $7
 $(204) $5

Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

Net Investment IncomeBanking and Deposit Interest ExpenseDistribution ExpensesInterest Credited to Fixed AccountsBenefits, Claims, Losses and Settlement ExpensesChange in Fair Value of Market Risk BenefitsInterest and Debt ExpenseGeneral and Administrative Expense
Nine Months Ended September 30, 2016
(in millions)
Nine Months Ended September 30, 2023Nine Months Ended September 30, 2023
Interest rate contracts$(54) $—
 $—
 $—
 $1,175
 $—
Interest rate contracts$— $— $— $— $(15)$(1,307)$— $— 
Equity contracts2
 1
 13
 10
 (536) 3
Equity contracts(1)2 44 35 391 (655)— 3 
Credit contracts—
 —
 —
 —
 (34) —
Credit contracts— — (1)— — 187 — — 
Foreign exchange contracts—
 —
 2
 —
 (66) 15
Foreign exchange contracts— — — — — 63 — 6 
Other contracts—
 —
 —
 —
 (2) —
GMWB and GMAB embedded derivatives—
 —
 —
 —
 (905) —
IUL embedded derivatives—
 —
 —
 12
 —
 —
IUL embedded derivatives— — — (2)— — — — 
Fixed deferred indexed annuity and deposit receivables embedded derivativesFixed deferred indexed annuity and deposit receivables embedded derivatives— — — (2)— — — — 
Structured variable annuity embedded derivativesStructured variable annuity embedded derivatives— — — — (443)— — — 
SMC embedded derivatives—
 (1) —
 —
 —
 —
SMC embedded derivatives— (3)— — — — — — 
Total gain (loss)$(52) $—
 $15
 $22
 $(368) $18
Total gain (loss)$(1)$(1)$43 $31 $(67)$(1,712)$— $9 
Nine Months Ended September 30, 2022Nine Months Ended September 30, 2022
Interest rate contractsInterest rate contracts$1 $— $(3)$— $(20)$(2,795)$(1)$— 
Equity contractsEquity contracts10 (1)(224)(135)(350)1,416 — (29)
Credit contractsCredit contracts— — (2)— — 288 — — 
Foreign exchange contractsForeign exchange contracts2 — — — — 219 — (13)
IUL embedded derivativesIUL embedded derivatives— — — 242 — — — — 
Fixed deferred indexed annuity and deposit receivables embedded derivativesFixed deferred indexed annuity and deposit receivables embedded derivatives— — — 3 — — — — 
Structured variable annuity embedded derivativesStructured variable annuity embedded derivatives— — — — 939 — — — 
SMC embedded derivativesSMC embedded derivatives— 1 — — — — — — 
Total gain (loss)Total gain (loss)$13 $— $(229)$110 $569 $(872)$(1)$(42)
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 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 exposure related to GMAB and non-life contingent GMWB provisions primarily using futures, options, interest rate swaptions, interest rate swaps, total return swaps and variance swaps.
71
Index
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 September 30, 2017:2023:
 Premiums PayablePremiums Receivable
(in millions)
2023 (1)
$4 $— 
2024129 23 
2025119 20 
2026247 88 
202719 — 
2028 - 2030408 — 
Total$926 $131 
 Premiums Payable Premiums Receivable
(in millions)
2017 (1)
$98
 $26
2018232
 131
2019295
 171
2020217
 100
2021187
 109
2022 - 2027739
 183
Total$1,768
 $720
(1)2017 2023 amounts represent the amounts payable and receivable for the period from October 1, 20172023 to December 31, 2017.2023.
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 fromStructured 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 uses a combination of futures, options, interest rate swaptions and/or swaps. Certain of the macro hedge derivatives 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 are shown in Other contracts in the tables above.
EIA, 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 EIA,structured variable annuity, IUL and stock market certificate products will positively or negatively impact earnings over the life of these products. The equity componentcomponents of the EIA,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.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


As discussed in Note 11, the Company issues variable annuity contracts that provide protection to contractholders from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. The Company economically hedges its obligations under these market risk benefits using options, swaptions, swaps and futures.
The Company enters into futures, credit default swaps, and 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. In 2015, theThe Company enteredenters into interest rate swaps to offset interest rate changes on unrealized gains or losses for certain investments.
Cash Flow Hedges
The Company has designated and accounts for the followingderivative instruments as a cash flow hedges: (i) interest rate swaps to hedge for equity exposure of certain compensation-related liabilities and interest rate exposure on forecasted debt (ii) interest rate lock agreements to hedge interest rate exposurepayments. For derivative instruments that qualify as cash flow hedges, the gains or losses on the derivative instruments are 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 issuances and (iii) swaptions used to hedge the risk of increasing interest rates on forecasted fixed premium product sales.expense.
For both the three months and nine months ended September 30, 20172023 and 2016,2022, the amounts recognized inreclassified from AOCI to earnings related to cash flow hedges due to ineffectiveness were not material.immaterial. The estimated net amount of existing pretax lossesrecorded in AOCI as of September 30, 20172023 that the Company expects to reclassify to earnings as a reduction to Interest and debt expense within the next twelve months is $1$0.8 million which consists of $2 million of pretax gainsand as an increase to be recorded as a reduction to interestGeneral and debtadministrative expense and $3 million of pretax losses to be recorded in net investment income.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 1812 years and relates to forecasted debt interest payments. See Note 1316 for a rollforward of net unrealized derivative gains (losses) on derivatives included in AOCI related to cash flow hedges.
Fair Value Hedges
The Company entered into and designated as fair value hedges two interest rate swaps to convert senior notes due 2019 and 2020 from fixed rate debt to floating rate debt. The swaps have identical terms as the underlying debt being hedged so no ineffectiveness is expected to be realized. The Company recognizes gains and losses on the derivatives and the related hedged items within interest and debt expense. The following table presents the amounts recognized in income related to fair value hedges:
Derivatives designated as
hedging instruments
Location of Gain Recorded into IncomeAmount of Gain Recognized in Income on Derivatives
Three Months Ended September 30, Nine Months Ended September 30,
2017201620172016
 (in millions)
Interest rate contractsInterest and debt expense$4 $5
 $12 $15
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 September 30, 20172023 and 2016,2022, the Company recognized a lossgain of $4$2 million and a gain of $6$8 million, respectively, in OCI. For the nine months ended September 30, 20172023 and 2016,2022, the Company recognized a loss of $3$1 million and a gain of $25$22 million, respectively, in OCI.
72
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
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 1114 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 September 30, 20172023 and December 31, 2016,2022, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $437$198 million and $254$240 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of September 30, 20172023 and December 31, 20162022 was $435$196 million and $246$236 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of September 30, 20172023 and December 31, 20162022 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 $2 million and $8$4 million, respectively. 
16.  Shareholders’ Equity
The following tables present the amounts related to each component of OCI:
Three Months Ended September 30,
20232022
PretaxIncome Tax Benefit (Expense)Net of TaxPretaxIncome 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)
$(854)$190 $(664)$(1,435)$321 $(1,114)
Reclassification of net (gains) losses on securities included in net income (2)
38 (8)30 86 (18)68 
Impact of benefit reserves and reinsurance recoverables14 (3)11 20 (3)17 
Net unrealized gains (losses) on securities(802)179 (623)(1,329)300 (1,029)
Effect of changes in discount rate assumptions on certain long-duration contracts221 (47)174 306 (65)241 
Effect of changes in instrument-specific credit risk on MRBs23 (5)18 (4)1 (3)
Defined benefit plans:
Net gains (losses)— — — 1 — 1 
Defined benefit plans— — — 1 — 1 
Foreign currency translation(76)16 (60)(160)33 (127)
Total other comprehensive income (loss)$(634)$143 $(491)$(1,186)$269 $(917)

73
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)

(Continued)

Nine Months Ended September 30,
20232022
PretaxIncome Tax Benefit (Expense)Net of TaxPretaxIncome 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)
$(727)$167 $(560)$(4,467)$996 $(3,471)
Reclassification of net (gains) losses on securities included in net income (2)
29 (6)23 81 (17)64 
Impact of benefit reserves and reinsurance recoverables8 (2)6 110 (19)91 
Net unrealized gains (losses) on securities(690)159 (531)(4,276)960 (3,316)
Net unrealized gains (losses) on derivatives:
Net unrealized gains (losses) on derivatives arising during the period
3 (1)2 (1)— (1)
Net unrealized gains (losses) on derivatives3 (1)2 (1)— (1)
Effect of changes in discount rate assumptions on certain long-duration contracts213 (45)168 1,183 (252)931 
Effect of changes in instrument-specific credit risk on MRBs68 (15)53 835 (178)657 
Defined benefit plans:
Net gains (losses)— — — 1 — 1 
Defined benefit plans— — — 1 — 1 
Foreign currency translation18 (4)14 (373)78 (295)
Total other comprehensive income (loss)$(388)$94 $(294)$(2,631)$608 $(2,023)
13.  Shareholders’ Equity
The following tables provide the amounts related to each component of OCI:
 Three Months Ended September 30,
2017 2016
Pretax
Income Tax Benefit (Expense)
Net of TaxPretax
Income Tax Benefit (Expense)
Net of Tax
(in millions)
Net unrealized securities gains (losses):
Net unrealized securities gains (losses) arising during the period (1)
$60
 $(22) $38
 $82
 $(31) $51
Reclassification of net securities (gains) losses included in net income (2)
(4) 1
 (3) (8) 4
 (4)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables(61) 22
 (39) (114) 39
 (75)
Net unrealized securities gains (losses)(5) 1
 (4) (40) 12
 (28)
 
Net unrealized derivatives gains (losses):
Reclassification of net derivative (gains) losses included in net income (3)
1
 —
 1
 1
 —
 1
Net unrealized derivatives gains (losses)1
 —
 1
 1
 —
 1
 
Defined benefit plans:
Net gain arising during the period—
 —
 —
 —
 —
 —
Defined benefit plans—
 —
 —
 —
 —
 —
 
Foreign currency translation25
 (9) 16
 (26) 10
 (16)
Other—
 —
 —
 —
 —
 —
Total other comprehensive income (loss)$21
 $(8) $13
 $(65) $22
 $(43)
 Nine Months Ended September 30,
2017 2016
Pretax
Income Tax Benefit (Expense)
Net of TaxPretax
Income Tax Benefit (Expense)
Net of Tax
(in millions)
Net unrealized securities gains (losses):
Net unrealized securities gains (losses) arising during the period (1)
$304
 $(107) $197
 $1,134
 $(398) $736
Reclassification of net securities (gains) losses included in net income (2)
(43) 15
 (28) (12) 5
 (7)
Impact of deferred acquisition costs, deferred sales inducement costs, unearned revenue, benefit reserves and reinsurance recoverables(168) 59
 (109) (533) 186
 (347)
Net unrealized securities gains (losses)
93
 (33) 60
 589
 (207) 382
 
Net unrealized derivatives gains (losses):
Reclassification of net derivative (gains) losses included in net income (4)
3
 (1) 2
 4
 (1) 3
Net unrealized derivatives gains (losses)
3
 (1) 2
 4
 (1) 3
 

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


 Nine Months Ended September 30,
2017 2016
Pretax
Income Tax Benefit (Expense)
Net of TaxPretax
Income Tax Benefit (Expense)
Net of Tax
(in millions)
Defined benefit plans:
Net gain arising during the period7
 (2) 5
 9
 (3) 6
Defined benefit plans7
 (2) 5
 9
 (3) 6
 
Foreign currency translation71
 (25) 46
 (85) 30
 (55)
Other(1) —
 (1) —
 —
 —
Total other comprehensive income (loss)$173
 $(61) $112
 $517
 $(181) $336
(1) Includes other-than-temporary impairment lossesimpairments on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss)OCI during the period.
(2) Reclassification amounts are recorded in netNet investment income.
(3) Includes nil pretax gain reclassified to interest and debt expense for both the three months ended September 30, 2017 and 2016, and a $1 million pretax loss reclassified to net investment income for both the three months ended September 30, 2017 and 2016.
(4) Includes $1 million pretax gain reclassified to interest and debt expense for both the nine months ended September 30, 2017 and 2016, and a $3 million and $4 million pretax loss reclassified to net investment income for the nine months ended September 30, 2017 and 2016, respectively.

Other comprehensive income (loss) related to net unrealized securities 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 other-than-temporary impairment 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.
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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
The following tables presenttable presents the changes in the balances of each component of AOCI, net of tax:
 Net Unrealized Securities Gains Net Unrealized Derivatives Gains 
Defined
Benefit Plans
 Foreign Currency Translation Other Total
(in millions)
Balance, July 1, 2017$543
 $6
 $(120) $(129) $(1) $299
OCI before reclassifications(1) —
 —
 16
 —
 15
Amounts reclassified from AOCI(3) 1
 —
 —
 —
 (2)
Total OCI(4) 1
 —
 16
 —
 13
Balance, September 30, 2017$539
(1) 
$7
 $(120) $(113) $(1) $312
Balance, January 1, 2017$479
 $5
 $(125) $(159) $—
 $200
OCI before reclassifications88
 —
 —
 46
 (1) 133
Amounts reclassified from AOCI(28) 2
 5
 —
 —
 (21)
Total OCI60
 2
 5
 46
 (1) 112
Balance, September 30, 2017$539
(1) 
$7
 $(120) $(113) $(1) $312

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


 Net Unrealized Securities Gains Net Unrealized Derivatives Gains Defined Benefit Plans Foreign Currency Translation Total
(in millions)
Balance, July 1, 2016$842
 $3
 $(85) $(122) $638
OCI before reclassifications(24) —
 —
 (16) (40)
Amounts reclassified from AOCI(4) 1
 —
 —
 (3)
Total OCI(28) 1
 —
 (16) (43)
Balance, September 30, 2016$814
(1) 
$4
 $(85) $(138) $595
Balance, January 1, 2016$426
 $1
 $(91) $(83) $253
Cumulative effect of change in accounting policies6
 —
 —
 —
 6
Balance, January 1, 2016, as adjusted432
 1
 (91) (83) 259
OCI before reclassifications389
 —
 —
 (55) 334
Amounts reclassified from AOCI(7) 3
 6
 —
 2
Total OCI382
 3
 6
 (55) 336
Balance, September 30, 2016$814
(1) 
$4
 $(85) $(138) $595
(1) Includes $8 million and $5 million of noncredit related impairments on securities and net unrealized securities gains (losses) on previously impaired securities as of September 30, 2017 and September 30, 2016, respectively.
Net Unrealized Gains (Losses)
on Securities		Net Unrealized Gains (Losses)
on Derivatives		Effect of Changes in Discount Rate Assumptions on Certain Long-Duration ContractsEffect of Changes in Instrument-Specific Credit Risk on MRBsDefined
Benefit Plans		Foreign Currency TranslationOtherTotal
(in millions)
Balance at July 1, 2023$(1,951)$5$(78)$15$(75)$(264)$(1)$(2,349)
OCI before reclassifications(653)—17418—(60)—(521)
Amounts reclassified from AOCI30——————30
Total OCI(623)—17418—(60)—(491)
Balance at September 30, 2023$(2,574)$5$96$33$(75)$(324)$(1)$(2,840)
Balance at July 1, 2022$(1,254)$3$(243)$233$(151)$(335)$(1)$(1,748)
OCI before reclassifications(1,097)—241(3)1(127)—(985)
Amounts reclassified from AOCI68——————68
Total OCI(1,029)—241(3)1(127)—(917)
Balance at September 30, 2022$(2,283)$3$(2)$230$(150)$(462)$(1)$(2,665)
Balance at January 1, 2023$(2,043)$3$(72)$(20)$(75)$(338)$(1)$(2,546)
OCI before reclassifications(554)216853—14—(317)
Amounts reclassified from AOCI23——————23
Total OCI(531)216853—14—(294)
Balance at September 30, 2023$(2,574)$5$96$33$(75)$(324)$(1)$(2,840)
Balance at January 1, 2022$1,033$4$(933)$(427)$(151)$(167)$(1)$(642)
OCI before reclassifications(3,380)(1)9316571(295)—(2,087)
Amounts reclassified from AOCI64——————64
Total OCI(3,316)(1)9316571(295)—(2,023)
Balance at September 30, 2022$(2,283)$3$(2)$230$(150)$(462)$(1)$(2,665)
For the nine months ended September 30, 20172023 and 2016,2022, the Company repurchased a total of 8.04.7 million shares and 13.75.0 million shares, respectively, of its common stock for an aggregate cost of $1.0$1.5 billion and $1.3$1.4 billion, respectively. In December 2015, the Company’s Board of Directors authorized an expenditure of up to $2.5 billion for the repurchase of shares of the Company’s common stock through December 31, 2017, which was exhausted in the third quarter 2017. In April 2017,January 2022, the Company’s Board of Directors authorized an additional expenditure of up to $2.5$3.0 billion for the repurchase of shares of the Company’s common stock through JuneMarch 31, 2024. On July 24, 2023, the Company’s Board of Directors authorized an additional $3.5 billion for the repurchase of the Company’s common stock through September 30, 2019.2025. As of September 30, 2017,2023, the Company had $2.4$3.6 billion remaining under thisthese share repurchase authorization.authorizations.
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 nine months ended September 30, 20172023 and 2016,2022, 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 $33$99 million and $29$99 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 nine months ended September 30, 20172023 and 2016,
75
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
2022, the Company reacquired 1.90.3 million shares and 0.3 million shares, respectively, of its common stock through the net settlement of options for an aggregate value of $248$109 million and $31$87 million, respectively.
During the nine months ended September 30, 20172023 and 2016,2022, the Company reissued 0.80.6 million and 0.90.7 million, respectively, treasury shares respectively, for restricted stock award grants, performance share units and issuance of shares vested under advisor deferred compensation plans.
14.17.  Income Taxes
The Company’s effective tax rate was 19.9%21.8% and 9.7%20.5% for the three months ended September 30, 20172023 and 2016,2022, respectively. The Company’s effective tax rate was 19.5%20.5% and 18.6%19.7% for the nine months ended September 30, 20172023 and 2016,2022, respectively.
The effective tax rates arerate for the three months ended September 30, 2023 was higher than the statutory rate as a result of state income taxes, net of federal benefit. The effective tax rate for the nine months ended September 30, 2023 was lower than the statutory rate as a result of tax preferred items including the dividends received deduction, lowincentive compensation, partially offset by state income housing tax credits, stock compensation and lower taxes, on net income from foreign subsidiaries. of federal benefit.
The increase in the effective tax rate for the three months ended September 30, 2017 compared to2022 was lower than the prior year period is primarily due to higher pretax income,statutory rate as a result of tax preferred items, partially offset by state income taxes, net of federal benefit. The effective tax rate for the nine months ended September 30, 2022 was lower than the statutory rate as a $25 million benefit for stockresult of tax preferred items including incentive compensation, due to the adoptionpartially offset by state income taxes, net of a new accounting standard.federal benefit.
Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $15$30 million, net of federal benefit, which will expire beginning December 31, 2017.2023 and foreign net operating losses of $37 million, which do not expire.
The Company is required to establish a valuation allowance for any portion of theits 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,determination: (i) future taxable income exclusive of reversing

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


temporary differences and carryforwards,carryforwards; (ii) future reversals of existing taxable temporary differences,differences; (iii) taxable income in prior carryback years,years; and (iv) tax planning strategies. Based on analysis of the Company’s tax position as of September 30, 2023, management believes it is more likely than not that the Company will not realize certain state net operating losses of $29 million and state deferred tax assets of $2 million, net of federal benefit, and stateforeign net operating losses andof $37 million; therefore, a valuation allowance has been established. The valuation allowance was $14$68 million and $11$65 million as of September 30, 20172023 and December 31, 2016,2022, respectively.
As of September 30, 20172023 and December 31, 2016,2022, the Company had $127$137 million and $115$138 million, respectively, of gross unrecognized tax benefits. If recognized, approximately $55$109 million and $46$106 million, net of federal tax benefits, of unrecognized tax benefits as of September 30, 20172023 and December 31, 2016,2022, respectively, would affect the effective tax rate. During the second quarter of 2023, the Company had additions to its gross unrecognized tax benefits for tax positions of prior years of $71 million and reductions to its gross unrecognized tax benefits of prior years of $80 million.
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 $15 million to $25approximately $26 million in the next 12 months primarily due to resolutionexpected exam closures and state statutes of audits and statutelimitations expirations.
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized nil and a net increase of $1$2 million and $10 million in interest and penalties for the three months and nine months ended September 30, 2017,2023, respectively. The Company recognized nil and a net decreaseincrease of $44$2 million in interest and penalties for the three months and nine months ended September 30, 2016,2022, respectively. As of September 30, 20172023 and December 31, 2016,2022, the Company had a payable of $9$24 million and $8$14 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. InThe federal statute of limitations are closed on years through 2015. A previously open item for 2014 and 2015 was resolved in the thirdsecond quarter of 2023. Also in the Company received final cash settlementssecond quarter of 2023, the Internal Revenue Service (“IRS”) audit for resolution of the 2006 and 2011 audits. The IRS has completed its examination of the 2008tax years 2016 through 2010 tax returns and these years are effectively settled; however, the statutes of limitation, remain open for certain carryover adjustments.2018 was finalized. The IRS is currently auditing the Company’s U.S. income tax returns for 2012 through 2015.2019 and 2020. The Company’s state income tax returns are currently under examination by various jurisdictions for years ranging from 20052017 through 2015. 
15.  Contingencies2021.
The Company is an applicable corporation required by lawto compute corporate alternative minimum tax (“CAMT”); however, based on current estimates the Company does not expect to be a member ofliable for the guaranty fund associationCAMT in every state where it is 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 Life2023 and Health Insurance Guaranty Associations (“NOLHGA”) 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 hastherefore a liability for estimated guaranty fund assessments and a related premium tax asset. As of September 30, 2017 and December 31, 2016, the estimated liability was $15 million and $16 million, respectively, and the related premium tax asset was $12 million and $14 million, respectively. The expected period over which guaranty fund assessments will be made and the related tax credits recovered ishas not known.been recorded.
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Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
18.  Contingencies
Contingencies
The Company and its subsidiaries are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and arbitration proceedings,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 litigationlegal 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, FINRA,the Financial Industry Regulatory Authority, the OCC, the UKU.K. Financial Conduct Authority, the Federal Reserve Board, state insurance and securities regulators, state attorneys general and various other domestic orand 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 that the Company has received during recent periods regarding certain matters, including:subjects, including from time to time: sales and distribution of, and disclosure practices related to, mutual and other pooled funds, exchange traded funds, private funds, segregated accounts, annuities, equity and fixed income securities, real estate investment trusts, insurance products, banking products and financial advice offerings, including managed accounts; wholesaler activity; supervision of the Company’s financial advisors;advisors and other associated persons; administration of insurance and annuity claims; security of client information; trading activity and the Company’s monitoring and supervision of such activity; performance advertising and product disclosures, including third party performance claims;recordkeeping requirements; and transaction monitoring systems and controls. The Company is also participating in regulatory audits, market

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


conduct examinationscooperating with the applicable regulators. In connection with one such matter, the Company has been responding to SEC document and other state inquiries relating to an industry-wide investigationinformation requests regarding the preservation of unclaimed property and escheatment practices and procedures.certain business-related communications sent on electronic messaging platforms that have not been approved by the Company. The Company has cooperatedengaged in certain resolution discussions regarding this matter and, in the third quarter of 2023, recorded a $20 million accrual within our introducing broker dealer subsidiary, but there is no assurance that these discussions will continuelead to cooperate with the applicable regulators.a resolution.
These legal and regulatory proceedings and disputespending matters 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.loss that may result from such matters. The Company cannot predict with certainty if, how, or when any such proceedings will be initiated or resolved or what the eventual settlement, fine, penalty or other relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages. Numerous issues mayresolved. Matters frequently need to be resolved, including through potentially lengthy discovery and determination of important factual matters, and by addressing unsettled legal questions relevant to the proceedings in question,more developed before a potential loss or range of loss can be reasonably estimated for any proceeding.matter. An adverse outcome in one or more proceedingany matter could eventually result in an adverse judgments, settlements, fines, penaltiesjudgment, a settlement, fine, penalty, or other sanctions, in additionsanction, and may lead to further claims, examinations, or adverse publicity thateach of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, financial condition, 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.
Certain legal
77
Index
AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
Guaranty Fund Assessments
RiverSource Life and regulatory proceedingsRiverSource Life Insurance Co. of New York (“RiverSource Life of NY”) are described below.
required by law to be a member of the guaranty fund association in every state where they are licensed to do business. In November 2014, a lawsuit was filed against the Company’s London-based asset management affiliate in England’s High Courtevent of Justice Commercial Court, entitled Otkritie Capital International Ltd and JSC Otkritie Holding v. Threadneedle Asset Management Ltd. and Threadneedle Management Services Ltd. (“Threadneedle Defendants”). Claimants allege that the Threadneedle Defendants should be held liable for the wrongful actsinsolvency 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 its former employees, who in February 2014 was held jointlyfuture guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and severally liable with several other parties for conspiracyHealth Insurance Guaranty Associations and dishonest assistance in connection with a fraud perpetrated against Claimants in 2011. Claimants allege they were harmed by that fraud in the amount of $106 million. The Threadneedle Defendants appliedits premiums written relative to the Court forindustry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an Order dismissingassessment will be imposed, the proceedings as an abuse of processevent obligating the Company to pay the assessment has occurred and the amount of the Court. This application was declined in August 2015. The Threadneedle Defendants applied to the Court of Appeal for leave to appeal, which application was granted in November 2015. In April 2017, the Court of Appeal denied the Threadneedle Defendants’ appeal. As a result, the case will proceed in England’s High Court of Justice, Commercial Court. A Case Management Conference was held October 6, 2017, and it was directed that trial of the matter shall notassessment can be set before May 1, 2019. reasonably estimated.
The Company cannot reasonably estimatehas a liability for estimated guaranty fund assessments and a related premium tax asset. As of September 30, 2023 and December 31, 2022, the rangeestimated liability was $37 million and $12 million, respectively. As of loss, if any, that may result from this matter due toSeptember 30, 2023 and December 31, 2022, the early procedural status of the case, the number of parties involved,related premium tax asset was $31 million and $10 million, respectively. The expected period over which guaranty fund assessments will be made and the failure to allege any specific, evidence based damages.related tax credits recovered is not known.
16.19.  Earnings per Share
The computationcomputations of basic and diluted earnings per share iswere as follows:
Three Months Ended September 30, Nine Months Ended September 30,Three Months Ended September 30,Nine Months Ended September 30,
2017 20162017 20162023202220232022
(in millions, except per share amounts)(in millions, except per share amounts)
Numerator:Numerator:Numerator:
Net income$503
 $215
 $1,299
 $914
Net income$872 $1,061 $2,179 $2,500 
Denominator:Denominator:Denominator:
Basic: Weighted-average common shares outstanding153.0
 164.0
 155.2
 168.3
Basic: Weighted-average common shares outstanding104.9 110.5 106.4 112.1 
Effect of potentially dilutive nonqualified stock options and other share-based awards2.4
 1.8
 2.4
 1.8
Effect of potentially dilutive nonqualified stock options and other share-based awards2.2 2.2 2.1 2.3 
Diluted: Weighted-average common shares outstanding155.4
 165.8
 157.6
 170.1
Diluted: Weighted-average common shares outstanding107.1 112.7 108.5 114.4 
Earnings per share:Earnings per share:Earnings per share:
Basic$3.29
 $1.31
 $8.37
 $5.43
Basic$8.31 $9.60 $20.48 $22.30 
Diluted$3.24
 $1.30
 $8.24
 $5.37
Diluted$8.14 $9.41 $20.08 $21.85 
The calculation of diluted earnings per share excludes the incremental effect of 2.9nil options for both the three months ended September 30, 2023 and 2022, and 0.2 million options as offor both the nine months ended September 30, 2016,2023 and 2022, due to their anti-dilutive effect. There was no incremental effect as of September 30, 2017.

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


17.20.  Segment Information
The Company’s four reporting segments are Advice & Wealth Management, Asset Management, Annuities,Retirement & Protection Solutions and Corporate & Other.
Beginning in the first quarter of 2017, the long term care business, which had been reported as part of the Protection segment, is reflected in the Corporate & Other segment. The Company discontinued underwriting long term care insurance in 2002 and the transfer of this closed block to the Corporate & Other segment allows investors to better understand the performance of the Company’s on-going Protection businesses. Prior periods presented have been restated to reflect the change.
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. OperatingAdjusted 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.
OperatingEffective in the third quarter of 2021, management has excluded the impacts of block transfer reinsurance transactions from the adjusted operating measures.
Adjusted operating earnings is defined as adjusted operating net revenues less adjusted operating expenses. OperatingAdjusted operating net revenues and adjusted operating expenses exclude the market impact on IUL benefits (net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual), integration and restructuring charges and the impact of consolidating investment entities. Operating net revenues also exclude net realized investment gains or losses (net of unearned revenue amortizationreinsurance 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 reinsurance accrual; mean reversion related impacts (the impact on VUL products for the difference between
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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
assumed and updated separate account investment performance on the reinsurance accrual)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. Operating expenses also exclude the market impactinvestments; block transfer reinsurance transaction impacts; gain or loss on variable annuity guaranteed benefits (netdisposal of hedgesa business that is not considered discontinued operations; integration and restructuring charges; and the related DSIC and DAC amortization) and the DSIC and DAC amortization offset to net realized investment gains or losses.impact of consolidating CIEs. The market impact on variable annuity guaranteed benefits and IUL benefitsnon-traditional long-duration products includes changes in market risk benefits and embedded derivative values caused by changes in financial market conditions, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections, net of related impacts on DAC and DSIC amortization.elections. The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures,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.
Concurrent with the adoption of ASU 2018-12, management no longer excludes adjustments for DAC, DSIC and unearned revenue amortization. Amortization of DAC, DSIC and unearned revenue for long-duration contracts are no longer impacted by markets and are now amortized on a constant-level basis.
The following tables summarize selected financial information by segment and reconcile segment totals to those reported on the consolidated financial statements:
 September 30, 2023December 31, 2022
(in millions)
Advice & Wealth Management$41,025 $35,132 
Asset Management7,124 7,967 
Retirement & Protection Solutions100,609 98,901 
Corporate & Other16,378 16,852 
Total assets$165,136 $158,852 
 September 30,
2017		 December 31,
2016
(in millions)
Advice & Wealth Management$13,407
 $12,654
Asset Management8,163
 7,254
Annuities96,656
 93,481
Protection17,543
 16,780
Corporate & Other9,717
 9,652
Total assets$145,486
 $139,821
 Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in millions)
Adjusted operating net revenues:
Advice & Wealth Management$2,407 $2,137 $7,015 $6,235 
Asset Management826 823 2,433 2,721 
Retirement & Protection Solutions876 783 2,558 2,311 
Corporate & Other143 115 417 350 
Elimination of segment revenues (1)(2)
(337)(316)(984)(1,005)
Total segment adjusted operating net revenues3,915 3,542 11,439 10,612 
Adjustments:
Net realized investment gains (losses)(38)(88)(32)(86)
Market impact on non-traditional long-duration products3 (1)4 2 
Mean reversion related impacts— — — (1)
Revenue attributable to consolidated investment entities45 31 132 68 
Total net revenues per consolidated statements of operations$3,925 $3,484 $11,543 $10,595 

AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (continued)


 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions)
Operating net revenues:
Advice & Wealth Management$1,383
 $1,272
 $4,026
 $3,720
Asset Management778
 740
 2,252
 2,203
Annuities626
 631
 1,861
 1,846
Protection478
 613
 1,516
 1,693
Corporate & Other50
 51
 162
 178
Eliminations (1)(2)
(348) (353) (1,040) (1,042)
Total segment operating revenues2,967
 2,954
 8,777
 8,598
Net realized investment gains (losses)(3) 6
 35
 (5)
Revenues attributable to CIEs23
 27
 70
 77
Market impact on IUL benefits(5) 6
 (7) 18
Market impact of hedges on investments(1) 5
 (8) (54)
Total net revenues per consolidated statements of operations (3)(4)
$2,981
 $2,998
 $8,867
 $8,634
(1)Represents the elimination of intersegment revenues recognized for the three months ended September 30, 20172023 and 20162022 in each segment as follows: Advice & Wealth Management ($233217 million and $244$202 million, respectively); Asset Management ($1221 million and $12$14 million, respectively); AnnuitiesRetirement & Protection Solutions ($88104 million and $85 million, respectively); Protection ($16 million and $12$101 million, respectively); and Corporate & Other ($(1)(5) million and nil,$(1) million, respectively).
(2)
(2)Represents the elimination of intersegment revenues recognized for the nine months ended September 30, 2017 and 2016in each segment as follows: Advice & Wealth Management ($701 million and $727 million, respectively); Asset Management ($35 million and $33 million, respectively); Annuities ($259 million and $247 million, respectively); Protection ($46 million and $34 million, respectively); and Corporate & Other ($(1) million and $1 million, respectively).
(3) Includes foreign net revenues of $198 million and $162 million for the threenine months ended September 30, 20172023 and 2016, respectively.2022 in each segment as follows: Advice & Wealth Management ($629 million and $651 million, respectively); Asset Management ($57 million and $37 million, respectively); Retirement & Protection Solutions ($310 million and $318 million, respectively); and Corporate & Other ($(12) million and $(1) million, respectively).
(4)
Includes foreign net revenues of $539 million and $500 million for the nine months ended September 30, 2017 and 2016, respectively.
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AMERIPRISE FINANCIAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Continued)
 Three Months Ended September 30, Nine Months Ended September 30,
2017 20162017 2016
(in millions)
Operating earnings:
Advice & Wealth Management$298
 $231
 $837
 $657
Asset Management200
 155
 526
 452
Annuities281
 (68) 562
 202
Protection55
 84
 169
 190
Corporate & Other(136) (145) (292) (271)
Total segment operating earnings698
 257
 1,802
 1,230
Net realized investment gains (losses)(3) 6
 33
 (5)
Net income (loss) attributable to CIEs—
 —
 2
 (1)
Market impact on variable annuity guaranteed benefits(55) (37) (198) (78)
Market impact on IUL benefits(10) 7
 (16) 31
Market impact of hedges on investments(1) 5
 (8) (54)
Integration and restructuring charges(1) —
 (1) —
Pretax income per consolidated statements of operations$628
 $238
 $1,614
 $1,123
 Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in millions)
Adjusted operating earnings:
Advice & Wealth Management$729 $595 $2,153 $1,527 
Asset Management199 191 526 698 
Retirement & Protection Solutions100 325 483 668 
Corporate & Other(72)(78)(206)(219)
Total segment adjusted operating earnings956 1,033 2,956 2,674 
Adjustments:
Net realized investment gains (losses)(38)(88)(32)(86)
Market impact on non-traditional long-duration products211 405 (137)566 
Mean reversion related impacts— (1)— (3)
Integration/restructuring charges(12)(11)(47)(35)
Net income (loss) attributable to consolidated investment entities— (3)— (2)
Pretax income per consolidated statements of operations$1,117 $1,335 $2,740 $3,114 

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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 and financial condition should be read in conjunction with the “Forward-Looking Statements” that follow and our Consolidated Financial Statements and Notes presented in Item 1. Our Management’s Discussion and Analysis should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016,2022, filed with the Securities and Exchange Commission (“SEC”) on February 23, 20172023 (“20162022 10-K”), as well as our quarterly reports on Form 10-Q and current reports on Form 8-K and other publicly available information.8-K. References below to “Ameriprise Financial,” “Ameriprise,” the “Company,” “we,” “us,” and “our” refer to Ameriprise Financial, Inc. exclusively, to our entire family of companies, or to one or more of our subsidiaries.
Overview
Ameriprise Financial is a diversified financial services company with a more than 120 year125-year history of providing financial solutions. We are a long-standing leader in financial planning and advice with $1.2 trillion in assets under management and administration as of September 30, 2023. We offer a broad range of products and services designed to achieve the financial objectives of individual and institutional clients. We are America’s leader inclients’ financial planning and a leading global financial institution with $869.5 billion in assets under management and administration as of September 30, 2017.objectives.
The financial results from the businesses underlying our go-to-market approaches are reflected in our five operating segments:
Advice & Wealth Management;
Asset Management;
Annuities;
Protection; and
Corporate & Other.
Our operating segments are aligned with the financial solutions we offer to address our clients’ needs. The products and services we provide retail clients and, to a lesser extent, institutional clients, are the primary source of our revenues and net income. Revenues and net income are significantly affected by investment performance and the total value and composition of assets we manage and administer for our retail and institutional clients as well as the distribution fees we receive from other companies. These factors, in turn, are largely determined by overall investment market performance and the depth and breadth of our individual client relationships.
We operate our business in the broader context of the macroeconomic forces around us, including the global and U.S. economies, changes in interest and inflation rates, financial market volatility, fluctuations in foreign exchange rates, geopolitical strain, pandemics, the competitive environment, client and customer activities and preferences, and the various regulatory and legislative developments. Financial markets and macroeconomic conditions have had and will continue to have a significant impact on our operating and performance results. In addition, the business, political and regulatory environmentenvironments in which we operate remainsare subject to elevated uncertainty and substantial, frequent change. To succeed,Accordingly, we expect to continue focusing on our key strategic objectives.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. RiskItem 1A, “Risk Factors” in our 20162022 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 “spread” income generated on our fixed deferred annuities, fixed insurance, deposit products and the fixed portion of variable annuities and variable insurance contracts, the value of deferred acquisition costs (“DAC”) and deferred sales inducement costs (“DSIC”) assets, the values of liabilities for guaranteedmarket risk benefits associated with our variable annuities and the values of derivatives held to hedge these benefits.
Earnings, as well asbenefits and the “spread” income generated on our deposit products, fixed insurance, the fixed portion of variable annuities and variable insurance contracts and fixed deferred annuities. We have been operating earnings, will continue to be negatively impacted by the ongoingin a historically low interest rate environment. In addition to continuing spread compressionenvironment but have recently experienced a substantial increase in our interest sensitive product lines, a sustained lowrates with uncertainty about where rates will go in the future. A higher (lower) interest rate environment may result in increasesdecreases (increases) to our long-duration contract reserves, and changes in various rate assumptions we use to amortize DAC and DSIC, which may negatively impact our adjusted operating earnings.earnings after tax. For additional discussion on our interest rate risk, see Item 3. “Quantitative and Qualitative Disclosures About Market Risk.”
In the third quarter, of the year, we updated our market-related inputsassumptions and implemented model changes related to our living benefit valuation. In addition, we conducted our annual review of life insurance, annuity and annuitylong term care (“LTC”) valuation assumptions relative to current experience and management expectations including modeling changes. These aforementioned changes are collectively referred to as unlocking.
The favorable unlocking impact in the third quarter of 2017 primarily reflected a positive impact from updates to market-related inputs to our living benefit valuation. In addition, premium deficiency testing for our long term care (“LTC”) business resulted in a loss recognition reserve of $57 million in the third quarter of 2017 primarily due to higher morbidity, partially offset by premium increases.
The unfavorable unlocking impact in the third quarter of 2016 primarily reflected low interest rates and higher persistency on living benefit contracts that more than offset benefits from persistency on annuity contracts without living benefits, an update to market-related inputs related to our living benefit valuation and other model updates. Our long-term interest rate assumption remained unchanged, but we extended the period it would take for rates to reach our long term level from 3.5 years to 5.5 years. In addition, our review of our LTC business in the third quarter of 2016 resulted in a loss recognition of $31 million due to low interest rates, higher morbidity and higher reinsurance expenses, slightly offset by premium increases. The $31 million, which is included in the unlocking impact in the third quarter of 2016, was comprised of $58 million of amortization of DAC and the release of the related deferred reinsurance liability of $27 million.

AMERIPRISE FINANCIAL, INC. 

See our Consolidated and Segment Results of Operations sections below for the pretax impacts on our revenues and expenses attributable to unlockingunlocking.
On July 13, 2023, we announced that we withdrew our application to convert Ameriprise Bank, FSB (“Ameriprise Bank”) to a state-chartered industrial bank and additional discussionour application to establish a new limited purpose national trust bank. Ameriprise Bank will continue to operate as it does today, regulated by the Office of the driversComptroller of the unlocking impact.Currency and the Federal Deposit Insurance Corporation. These changes are not expected to impact our long-term growth strategy for Ameriprise Bank, and we will continue to offer our strong lineup of banking solutions, including deposits, credit cards, mortgages and securities-based lending to our wealth management clients without interruption.
We consolidate certain variable interest entities for which we provide asset management services. These entities are defined as consolidated investment entities (“CIEs”). While the consolidation of the CIEs impacts our balance sheet and income statement, our exposure to these entities is unchanged and there is no impact to the underlying business results. For further information on CIEs, see Note 35 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 netNet investment income. We continue to include the fees from these entities in the managementManagement and financial advice fees line within our Asset Management segment.
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AMERIPRISE FINANCIAL, INC. 
While our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), management believes that adjusted operating earnings measures, which exclude net realized investment gains or losses, net of 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 guaranteed benefits,contracts and universal life (“UL”) insurance contracts), net of hedges and the reinsurance accrual; mean reversion related DSIC and DAC amortization; the marketimpacts (the impact on indexedvariable universal life benefits, net of hedges(“VUL”) products for the difference between assumed and the related DAC amortization, unearned revenue amortization andupdated separate account investment performance on the reinsurance accrual;accrual and additional insurance benefit reserves); the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; block transfer reinsurance transaction impact; gain or loss on disposal of a business that is not considered discontinued operations; integration and restructuring charges; income (loss) from discontinued operations; and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis.
The market impact on non-traditional long-duration products includes changes in market risk benefits and embedded derivative values caused by changes in financial market conditions, net of changes in economic hedge values and unhedged items including the difference between assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and certain policyholder contract elections. The market impact also includes certain valuation adjustments made in accordance with FASB Accounting Standards Codification 820, Fair Value Measurements and Disclosures, including the impact on embedded derivative values of discounting projected benefits to reflect a current estimate of our life insurance subsidiary’s nonperformance spread.
In the first quarter of 2023, management introduced an adjusted capital measure (“Available Capital for Capital Adequacy”), which management believes best reflects the available capital resources of our core operations and facilitates a meaningful trend analysis. Available Capital for Capital Adequacy adjusts GAAP total equity and excludes accumulated other comprehensive income (“AOCI”); goodwill and intangibles; RiverSource Life Insurance Company’s GAAP equity excluding AOCI; and includes RiverSource Life Insurance Company’s statutory total adjusted capital prepared in conformity with accounting practices prescribed or permitted by the State of Minnesota Department of Commerce; and other adjustments, primarily certain deferred tax balances.
Management uses certain of these non-GAAP measures to evaluate our financial performance and available capital on a basis comparable to that used by some securities analysts and investors. Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and for certain compensation-related matters. Throughout our Management’s Discussion and Analysis, these non-GAAP measures are referred to as adjusted operating measures. These non-GAAP measures should not be viewed as a substitute for U.S. GAAP measures.
Concurrent with the adoption of ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts, management no longer excludes adjustments for deferred acquisition costs (“DAC”), deferred sales inducement costs (“DSIC”) and unearned revenue amortization from adjusted operating earnings measures. Amortization of DAC, DSIC, and unearned revenue is no longer impacted by markets and is now amortized on a constant-level basis in accordance with GAAP.
It is management’s priority to increase shareholder value over a multi-year horizon by achieving our on-average, over-time financial targets.
Our financial targets are:
Operating total net revenue growth of 6% to 8%,
Operating•Adjusted operating earnings per diluted share growth of 12% to 15%, and
Operating•Adjusted operating return on equity excluding accumulated other comprehensive income (“AOCI”) of 19% to 23%over 30%.
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AMERIPRISE FINANCIAL, INC. 
The following tables reconcile our GAAP measures to adjusted operating measures:
Per Diluted Share
Three Months Ended September 30,Three Months Ended September 30,
2023202220232022
(in millions, except per share amounts)
Net income (loss)$872 $1,061 $8.14 $9.41 
Adjustments:
Net realized investment gains (losses) (1)
(38)(88)(0.35)(0.78)
Market impact on non-traditional long-duration products (1)
211 405 1.96 3.60 
Mean reversion related impacts (1)
— (1)— (0.01)
Integration/restructuring charges (1)
(12)(11)(0.11)(0.10)
Net income (loss) attributable to CIEs— (3)— (0.03)
Tax effect of adjustments (2)
(34)(64)(0.32)(0.57)
Adjusted operating earnings$745 $823 $6.96 $7.30 
Weighted average common shares outstanding:    
Basic104.9 110.5   
Diluted107.1 112.7   
 Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
(in millions)
Total net revenues$2,981
 $2,998
 $8,867
 $8,634
Less: Revenue attributable to CIEs23
 27
 70
 77
Less: Net realized investment gains (losses)(3) 6
 35
 (5)
Less: Market impact on indexed universal life benefits(5) 6
 (7) 18
Less: Market impact of hedges on investments(1) 5
 (8) (54)
Operating total net revenues$2,967
 $2,954
 $8,777
 $8,598
 Per Diluted Share
Nine Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(in millions, except per share amounts)
Net income (loss)$2,179 $2,500 $20.08 $21.85 
Adjustments:
Net realized investment gains (losses) (1)
(32)(86)(0.29)(0.75)
Market impact on non-traditional long-duration products (1)
(137)566 (1.27)4.95 
Mean reversion related impacts (1)
— (3)— (0.03)
Integration/restructuring charges (1)
(47)(35)(0.43)(0.31)
Net income (loss) attributable to CIEs— (2)— (0.02)
Tax effect of adjustments (2)
45 (93)0.41 (0.81)
Adjusted operating earnings$2,350 $2,153 $21.66 $18.82 
Weighted average common shares outstanding:    
Basic106.4 112.1   
Diluted108.5 114.4   
(1) Pretax adjusted operating adjustments.
(2) Calculated using the statutory federal tax rate of 21%.

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AMERIPRISE FINANCIAL, INC. 

 Three Months Ended September 30, Per Diluted Share
Three Months Ended September 30,
2017 20162017 2016
(in millions, except per share amounts)
Net income$503
 $215
 $3.24
 $1.30
Add: Integration/restructuring charges (1)
1
 —
 0.01
 —
Add: Market impact on variable annuity guaranteed benefits (1)
55
 37
 0.35
 0.22
Add: Market impact on indexed universal life benefits (1)
10
 (7) 0.06
 (0.04)
Add: Market impact of hedges on investments (1)
1
 (5) 0.01
 (0.03)
Less: Net realized investment gains (losses) (1)
(3) 6
 (0.02) 0.04
Tax effect of adjustments (2)
(25) (7) (0.16) (0.04)
Operating earnings$548
 $227
 $3.53
 $1.37
 
Weighted average common shares outstanding: 
  
  
  
Basic153.0
 164.0
  
  
Diluted155.4
 165.8
  
  
(1) Pretax operating adjustments.
(2) Calculated using the statutory tax rate of 35%.
 Nine Months Ended September 30, Per Diluted Share
Nine Months Ended September 30,
2017 20162017 2016
(in millions, except per share amounts)
Net income$1,299
 $914
 $8.24
 $5.37
Less: Net income (loss) attributable to CIEs1
 (1) 0.01
 (0.01)
Add: Integration/restructuring charges (1)
1
 —
 0.01
 —
Add: Market impact on variable annuity guaranteed benefits (1)
198
 78
 1.26
 0.46
Add: Market impact on indexed universal life benefits (1)
16
 (31) 0.10
 (0.18)
Add: Market impact of hedges on investments (1)
8
 54
 0.05
 0.31
Less: Net realized investment gains (losses) (1)
33
 (5) 0.21
 (0.03)
Tax effect of adjustments (2)
(67) (37) (0.42) (0.22)
Operating earnings$1,421
 $984
 $9.02
 $5.78
 
Weighted average common shares outstanding: 
  
  
  
Basic155.2
 168.3
  
  
Diluted157.6
 170.1
  
  
(1) Pretax operating adjustments.
(2) Calculated using the statutory tax rate of 35%.

AMERIPRISE FINANCIAL, INC. 

The following table reconciles the trailing twelve months’ sum of net income attributable to Ameriprise Financial toadjusted operating earnings and the five-point average of quarter-end equity to adjusted operating equity:
 Twelve Months Ended September 30,
20232022
(in millions)
Net income$2,828 $3,200 
Less: Adjustments (1)
(254)332 
Adjusted operating earnings3,082 2,868 
Total Ameriprise Financial, Inc. shareholders’ equity3,894 4,367 
Less: AOCI, net of tax(2,477)(1,383)
Total Ameriprise Financial, Inc. shareholders’ equity, excluding AOCI6,371 5,750 
Less: Equity impacts attributable to CIEs(3)1 
Adjusted operating equity$6,374 $5,749 
 Twelve Months Ended September 30,
2017 2016
(in millions)
Net income attributable to Ameriprise Financial$1,699
 $1,271
Less: Adjustments (1)
(165) (154)
Operating earnings$1,864
 $1,425
 
Total Ameriprise Financial, Inc. shareholders’ equity$6,369
 $7,139
Less: AOCI, net of tax325
 478
Total Ameriprise Financial, Inc. shareholders’ equity, excluding AOCI6,044
 6,661
Less: Equity impacts attributable to CIEs1
 62
Operating equity$6,043
 $6,599
 
Return on equity, excluding AOCI28.1% 19.1%
Operating return on equity, excluding AOCI (2)
30.8% 21.6%
Return on equity, excluding AOCI44.4 %55.7 %
Adjusted operating return on equity, excluding AOCI (2)
48.4 %49.9 %
(1)
(1) Adjustments reflect the trailing twelve months’ 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 variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration and restructuring charges; and net income (loss) from consolidated investment entities. After-tax is calculated using the statutory tax rate of 35%.
(2)
Operating return on equity, excluding AOCI, is calculated using the trailing twelve months of earnings excluding the after-tax net realized investment gains/losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal benefits, net of hedges and the related DAC amortization, unearned revenue amortization, and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration and restructuring charges; and net income (loss) from consolidated investment entities 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 rate of 35%.
The Department of Labor published regulations in April 2016 that expanded the scope of who is considered an ERISA fiduciary and these regulations focus in large part on investment recommendations made by financial advisors, registered investment advisors, and other investment professionals to retirement investors, how financial advisors are able to discuss IRA rollovers, as well as how financial advisors and affiliates can transact with retirement investors. Tax qualified accounts, particularly IRAs, make up a significant portion of our assets under management and administration. The first phase of the regulations went into effectreinsurance accrual; the market impact on June 9, 2017non-traditional long-duration products (including variable and requires financial advisorsfixed deferred annuity contracts and UL insurance contracts), net of hedges and related reinsurance accrual; mean reversion related impacts; block transfer reinsurance transaction impacts; the market impact of hedges to make recommendations related to assets held in IRAsoffset interest rate and employer sponsored retirement plans in accordance withcurrency 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 following impartial conduct standards: recommendations must bestatutory tax rate of 21%.
(2) Adjusted operating return on equity, excluding AOCI is calculated using adjusted operating earnings in the best interest of the client, compensation paid for the recommendations must be reasonablenumerator, and Ameriprise Financial shareholders’ equity, excluding AOCI and the financial advisor must not make any misleading statements. We adopted policies and procedures designed to comply with the impartial conduct standards and communicated those policies and procedures to our advisors and staff. The second phaseimpact of the regulation pertaining toconsolidating investment entities using a new “best interest contract exemption” puts into place a numberfive-point average of additional requirements including entering into a best interest contract with clients, enhanced disclosure of fees and conflicts of interest, limits on differential commissions within a product category, the adoption of policies and procedures to ensure the best interest standard is met, and findings related to platforms that are limited to products that pay third-party payments and/or include proprietary products. The second phase of the regulation is currently scheduled to become effective on January 1, 2018. These regulations are currently under review by the Department of Labor and the Department has proposed to delay the second phase of the regulations until July 1, 2019, which would give the Department of Labor more time to determine if further revisions to the regulations are advisable. However, as of November 1 the Department of Labor has not issued final guidance implementing a further delay. As a result, it is unclear whether the Department of Labor will substantially rescind or revise the regulations as adopted in 2016. In light of the uncertainty regarding the fiduciary regulation, while we prudently continue to prepare to comply with the second phase of the Department of Labor’s investment fiduciary regulations and exemptionsquarter-end equity in the form in which they were adopted in April 2016, we are also evaluatingdenominator. After-tax is calculated using the impactstatutory tax rate of 21%.
The following table reconciles GAAP total equity to our clients, financial advisors and business should the Department of Labor decide to delay, rescind or revise the regulations per the developments since President Trump’s inauguration as generally described above.Available Capital for Capital Adequacy:
September 30, 2023December 31, 2022
(in millions)
Ameriprise Financial, Inc. GAAP total equity$3,825 $3,803 
Less: AOCI(2,840)(2,546)
Ameriprise Financial, Inc. GAAP total equity, excluding AOCI6,665 6,349 
Less: RiverSource Life Insurance Company GAAP equity, excluding AOCI2,084 2,057 
Add: RiverSource Life Insurance Company statutory total adjusted capital2,842 3,103 
Less: Goodwill and intangibles2,487 2,485 
Add: Other adjustments311 299 
   Available Capital for Capital Adequacy$5,247 $5,209 
Critical Accounting Estimates
The accounting and reporting policies that we use affect our Consolidated Financial Statements. Certain of our accounting and reporting policies are critical to an understanding of our consolidated results of operations and financial condition and, in some cases,

AMERIPRISE FINANCIAL, INC. 

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. TheseThe accounting and reporting policies and estimates we have identified as fundamental to a full understanding of our consolidated results of operations and financial condition are discusseddescribed below. See Note 2 to our Consolidated Financial Statements for further information about our accounting policies.
Valuation of Investments
The most significant component of our investments is our Available-for-Sale securities, which we carry at fair value within our Consolidated Balance Sheets. See Note 13 to our Consolidated Financial Statements for discussion of the fair value of our Available-for-Sale securities. Financial markets are subject to significant movements in detailvaluation and liquidity, which can impact our ability to liquidate and the selling price that can be realized for our securities and increases the use of judgment in “Management’s Discussiondetermining the estimated fair value of certain investments. We are unable to predict impacts and Analysis — Critical Accounting Estimates”determine sensitivities in reported amounts reflecting such market movements on our aggregate Available-for-Sale portfolio. Changes to these assumptions do not occur in isolation and it is impracticable to predict such impacts at the individual security unit of measure which are predominately Level 2 fair value and based on observable inputs.
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Market Risk Benefits
Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose us to other-than-nominal capital market risk. Market risk benefits include certain contract features on variable annuity products that provide minimum guarantees to policyholders. Guarantees accounted for as market risk benefits include guaranteed minimum death benefit (“GMDB”), guaranteed minimum income benefit (“GMIB”), guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum accumulation benefit (“GMAB”).
Variable Annuities
We have approximately $75 billion of variable annuity account value that has been issued over a period of more than fifty years. The diversified variable annuity block consists of $34 billion of account value with no living benefit guarantees and $41 billion of account value with living benefit guarantees, primarily GMWB provisions. The business is predominately issued through the Ameriprise Financial® advisor network. The majority of the variable annuity contracts currently offered by us contain GMDB provisions. We discontinued most new sales of GMWB and GMAB at the end of 2021 and new sales were completely discontinued as of mid-2022. We also previously offered contracts containing GMIB provisions. See Note 11 to our Consolidated Financial Statements for further discussion of our variable annuity contracts.
In determining the assets or liabilities for market risk benefits, we project these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency, benefit utilization and investment margins. Management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year.
In addition, the valuation of market risk benefits is impacted by an estimate of our nonperformance risk adjustment. This estimate includes a spread over the U.S. Treasury curve as of the balance sheet date. As our estimate of this spread over the U.S. Treasury curve widens or tightens, the liability will decrease or increase. The change in fair value due to changes in our 2016 10-K.nonperformance risk is recorded in other comprehensive income.
Regarding the exposure to variable annuity living benefit guarantees, changes to reserves due to behavioral risk are driven by changes in policyholder surrenders and utilization of guaranteed withdrawal benefits. We have extensive experience studies and analysis to monitor changes and trends in policyholder behavior. A significant volume of company-specific policyholder experience data is available and provides management with the ability to regularly analyze policyholder behavior. On a monthly basis, actual surrender and benefit utilization experience is compared to expectations. Experience data includes detailed policy information providing the opportunity to review impacts of multiple variables. The ability to analyze differences in experience, such as presence of a living benefit rider, existence of surrender charges, and tax qualifications provide us an effective approach in detecting changes in policyholder behavior.
At least annually, we perform a thorough policyholder behavior analysis to validate the assumptions included in our market risk benefit reserves. The variable annuity assumptions and resulting reserve computations reflect multiple policyholder variables. Differentiation in assumptions by policyholder age, existence of surrender charges, guaranteed withdrawal utilization, and tax qualification are examples of factors recognized in establishing management’s assumptions used in market risk benefit calculations. The extensive data derived from our variable annuity block informs management in confirming previous assumptions and revising the variable annuity behavior assumptions. Changes in assumptions are governed by a review and approval process to ensure an appropriate measurement of all impacted financial statement balances. Changes in these assumptions can be offsetting and we are unable to predict their movement, sensitivities in reported amounts, offsetting impacts, or future impacts to the Consolidated Financial Statements over time or in any given future period.
Future Policy Benefits and Claims
We establish reserves to cover the benefits associated with non-traditional and traditional long-duration products. Non-traditional long-duration products include variable and structured variable annuity contracts, fixed annuity contracts and UL and VUL policies. Traditional long-duration products include term life insurance, whole life insurance, disability income (“DI”) and LTC insurance and life contingent payout annuity products. UL and VUL policies with product features that result in profits followed by losses are accounted for as insurance liabilities. The portion of structured variable annuities, indexed annuities and indexed universal life (“IUL”) policies allocated to the indexed account is accounted for as an embedded derivative.
The establishment of reserves is an estimation process using a variety of methods, assumptions and data elements. If actual experience is better than or equal to the results of the estimation process, then reserves should be adequate to provide for future benefits and expenses. If actual experience is worse than the results of the estimation process, additional reserves may be required.
Non-Traditional Long-Duration Products, including Embedded Derivatives
UL and VUL
A portion of our UL and VUL policies have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the
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contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The liability for these future losses is determined at the reporting date using actuarial models to estimate the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). Significant assumptions made in projecting future benefits and assessments relate to client asset value growth rates, mortality, persistency and investment margins. Changes in these assumptions can be offsetting and we are unable to predict their movement, sensitivities in reported amounts, offsetting impacts, or future impacts to the Consolidated Financial Statements over time or in any given future period. See Note 9 to our Consolidated Financial Statements for information regarding the liability for contracts with secondary guarantees.
Embedded Derivatives
The fair value of embedded derivatives related to structured variable annuities, indexed annuities and IUL fluctuates based on equity markets and interest rates and is a liability. In addition, the valuation of embedded derivatives is impacted by an estimate of our nonperformance risk adjustment. This estimate includes a spread over the U.S. Treasury curve as of the balance sheet date. As our estimate of this spread over the U.S. Treasury curve widens or tightens, the liability will decrease or increase.
See Note 13 to our Consolidated Financial Statements for information regarding the fair value measurement of embedded derivatives.
Traditional Long-Duration Products
The liabilities for traditional long-duration products include cash flows related to unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI, LTC, and life contingent payout annuity policies as claims are incurred in the future. Accordingly, the claim liability (also referred to as disabled life reserves) is presented together as one liability for future policy benefits.
A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. Expected insurance benefits are accrued over the life of the contract in proportion to premium revenue recognized (referred to as the net premium approach). The net premium ratio reflects cash flows from contract inception to contract termination (i.e., through the claim paying period) and cannot exceed 100%.
The liability for future policy benefits will be updated for actual experience at least on an annual basis and concurrent with changes to cash flow assumptions. When net premiums are updated for cash flow changes, the estimated cash flows over the entire life of a group of contracts are updated using historical experience and updated future cash flow assumptions.
The cash flows used in the calculation are discounted using the forward rate curve on the original contract issue date. The discount rate represents an upper-medium-grade (i.e., low credit risk) fixed-income instrument yield (i.e., an A rating) that reflects the duration characteristics of the liability.
Derivative Instruments and Hedging Activities
We use derivative instruments to manage our exposure to various market risks. All derivatives are recorded at fair value. The fair value of our derivative instruments is determined using either market quotes or valuation models that are based upon the net present value of estimated future cash flows and incorporate current market observable inputs to the extent available. We are unable to predict impacts and determine sensitivities in reported amounts reflecting such market movements on our aggregate derivative portfolio. Changes to assumptions do not occur in isolation and it is impracticable to predict such impacts at the individual security unit of measure which are predominately Level 2 fair value and based on observable inputs.
For further details on the types of derivatives we use and how we account for them, see Note 2, Note 13 and Note 15 to our Consolidated Financial Statements. For discussion of our market risk exposures and hedging program and related sensitivity testing, see Item 3. “Quantitative and Qualitative Disclosures About Market Risk.”
Recent Accounting Pronouncements
For information regarding recent accounting pronouncements and their expected impact on our future consolidated results of operations and financial condition, see Note 23 to our Consolidated Financial Statements.
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Economic Environment
Global equity market conditions could materially affect our financial condition and results of operations. The following table presents relevant market indices:
Three Months Ended September 30,Nine Months Ended September 30,
20232022Change20232022Change
S&P 500
Daily average4,4563,98312%4,2224,1851%
Period end4,2883,58620%4,2883,58620%
Weighted Equity Index (“WEI”) (1)
Daily average2,9032,60611%2,7792,7541%
Period end2,7882,34719%2,7882,34719%
(1) Weighted Equity Index is an Ameriprise calculated proxy for equity market movements calculated using a weighted average of the S&P 500, Russell 2000, Russell Midcap and MSCI EAFE indices based on North America distributed equity assets.
See our segment results of operations discussion below for additional information on how changes in the economic environment have and may continue to impact our results. For further information regarding the impact of the economic environment on our results of operations and financial condition, and potentially material effects, see Part 1 - Item 1A “Risk Factors” of our 2022 10-K.
Assets Under Management and Administration
Assets under management (“AUM”) include external client assets for which we provide investment management services, such as the assets of the Columbia Threadneedle Investments funds, assets of institutional clients and assets of 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. These assets do not include assets under advisement, for which we provide model portfolios but do not have full discretionary investment authority. Corporate & Other AUM primarily includes former bank assets that are managed within our Corporate & Other segment.
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. These assets
AUM and AUA do not include assets under advisement, for which we provide advisory services such as model portfolios but do not have full discretionary investment authority.
The following table presents detail regarding our AUM and AUA:
September 30, ChangeSeptember 30,Change
2017 201620232022
(in billions)  (in billions)
Assets Under Management and AdministrationAssets Under Management and AdministrationAssets Under Management and Administration
Advice & Wealth Management AUM$233.9
 $196.2
 $37.7
 19 %Advice & Wealth Management AUM$440.7 $382.4 $58.3 15 %
Asset Management AUM484.0
 467.8
 16.2
 3
Asset Management AUM587.2 546.5 40.7 7 
Corporate & Other AUM0.3
 0.3
 —
 —
Corporate AUMCorporate AUM0.3 0.2 0.1 50 
Eliminations(25.9) (24.7) (1.2) (5)Eliminations(37.8)(35.6)(2.2)(6)
Total Assets Under Management692.3
 639.6
 52.7
 8
Total Assets Under Management990.4 893.5 96.9 11 
Total Assets Under Administration177.2
 156.0
 21.2
 14
Total Assets Under Administration242.4 208.0 34.4 17 
Total AUM and AUA$869.5
 $795.6
 $73.9
 9 %Total AUM and AUA$1,232.8 $1,101.5 $131.3 12 %
Total AUM increased $52.7$96.9 billion, or 8%11%, to $692.3$990.4 billion as of September 30, 20172023 compared to $639.6$893.5 billion as of September 30, 2016 primarily2022 due to a $37.7$58.3 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and market appreciation and a $16.2$40.7 billion increase in Asset Management AUM primarily driven by equity market appreciation, and a positive impact of foreign currency translation, partially offset by net outflows. See our segment results of operations discussion below for additional information on changes in our AUM.

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Consolidated Results of Operations for the Three Months Ended September 30, 20172023 and 20162022
The following table presents our consolidated results of operations:
Three Months Ended September 30, ChangeThree Months Ended September 30,Change
2017 201620232022
(in millions)  (in millions)
RevenuesRevenuesRevenues
Management and financial advice fees$1,626
 $1,464
 $162
 11 %Management and financial advice fees$2,287 $2,172 $115 5 %
Distribution fees437
 455
 (18) (4)Distribution fees463 506 (43)(8)
Net investment income372
 387
 (15) (4)Net investment income809 349 460 NM
Premiums348
 374
 (26) (7)
Premiums, policy and contract chargesPremiums, policy and contract charges390 354 36 10 
Other revenues210
 330
 (120) (36)Other revenues127 118 9 8 
Total revenues2,993
 3,010
 (17) (1)Total revenues4,076 3,499 577 16 
Banking and deposit interest expense12
 12
 —
 —
Banking and deposit interest expense151 15 136 NM
Total net revenues2,981
 2,998
 (17) (1)Total net revenues3,925 3,484 441 13 
ExpensesExpensesExpenses
Distribution expenses850
 798
 52
 7
Distribution expenses1,297 1,198 99 8
Interest credited to fixed accounts176
 161
 15
 9
Interest credited to fixed accounts139 157 (18)(11)
Benefits, claims, losses and settlement expenses474
 855
 (381) (45)Benefits, claims, losses and settlement expenses120 81 39 48 
Remeasurement (gains) losses of future policy benefit reservesRemeasurement (gains) losses of future policy benefit reserves(12)(1)(11)NM
Change in fair value of market risk benefitsChange in fair value of market risk benefits168 (321)489 NM
Amortization of deferred acquisition costs48
 163
 (115) (71)Amortization of deferred acquisition costs62 58 4 7 
Interest and debt expense52
 52
 —
 —
Interest and debt expense84 52 32 62 
General and administrative expense753
 731
 22
 3
General and administrative expense950 925 25 3 
Total expenses2,353
 2,760
 (407) (15)%Total expenses2,808 2,149 659 31 
Pretax income628
 238
 390
 NM
Pretax income1,117 1,335 (218)(16)
Income tax provision125
 23
 102
 NM
Income tax provision245 274 (29)(11)
Net income$503
 $215
 $288
 NM
Net income$872 $1,061 $(189)(18)%
NM Not Meaningful.
Overall
Pretax income increased $390decreased $218 million, or 16%, for the three months ended September 30, 2023 compared to $628the prior year period. The following impacts were significant drivers of the period-over-period change in pretax income:
•The unfavorable impact of unlocking was $99 million for the three months ended September 30, 20172023 compared to $238a favorable impact of $133 million for the prior year period primarily dueperiod.
•The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was a benefit of $211 million for the three months ended September 30, 2023 compared to a benefit of $405 million for the prior year period.
•A favorable impact from the trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022, along with higher balances in bank and certificate products.
•A favorable impact from higher average equity markets compared to the impact of unlocking, market appreciation, wrap account net inflows,prior year period. Our average WEI, which is a positive impact of higher short-term interest rates and an unfavorable $29 million LTC reserve correctionproxy for equity movements on AUM, increased 11% in the third quarter of 2016, partially offset by asset management net outflows, loss recognition of $57 million on LTC insurance productsthree months ended September 30, 2023 compared to the prior year period. The ending WEI increased 19% compared to the prior year. The average S&P 500 index was 12% higher in the third quarter of 2017 and higher performance-based compensation.compared to the prior year period.
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The following table presents the total pretax impacts on our revenues and expenses attributable to unlocking for the three months ended September 30:30:
Pretax Increase (Decrease) 2017 2016
  (in millions)
Other revenues $(47) $64
Total revenues (47) 64
     
Distribution expenses —
 (27)
Benefits, claims, losses and settlement expenses (139) 229
Amortization of DAC (12) 81
Total expenses (151) 283
Total (1)
 $104
 $(219)
(1) Includes a $5 million and $16 million net benefit related to the market impact on variable annuity guaranteed benefits for the three months ended September 30, 2017 and 2016, respectively.

AMERIPRISE FINANCIAL, INC. 

Net Revenues
Net revenues decreased $17
Pretax Increase (Decrease)20232022
(in millions)
Premiums, policy and contract charges$1 $(1)
Total revenues1 (1)
Benefits, claims, losses and settlement expenses(17)7 
Remeasurement (gains) losses of future policy benefit reserves:
LTC unlocking(5)(6)
Unlocking impact, excluding LTC(6)6 
Total remeasurement (gains) losses of future policy benefit reserves(11)— 
Change in fair value of market risk benefits128 (139)
Amortization of DAC— (2)
Total expenses100 (134)
Pretax income (loss) (1)
$(99)$133 
(1) Includes a $2 million or 1%,net expense related to $3.0 billionthe market impact on IUL benefits for the three months ended September 30, 2017 compared2022, which is excluded from adjusted operating earnings. Refer to the prior year period primarily due toResults of Operations by Segment for the impact to pretax adjusted operating earnings attributable to unlocking.
The primary drivers of the year-over-year unlocking impact include the following items:
•We lowered our surrender assumptions on variable annuities with living benefits resulting in an expense in the third quarter of 2023.
•Interest rate assumptions resulted in a $54 million decreasebenefit in revenues from the net impactthird quarter of transitioning advisory accounts to share classes without 12b-1 fees, asset management net outflows, lower earned interest rates on fixed annuities and higher ceded premiums for our auto and home business,2022, partially offset by market appreciation, wrap account net inflowslower surrender assumptions and a positive impact of higher short-term interest rates.updated mortality assumptions for variable annuities with living benefits.
Net Revenues
Management and financial advice fees increased $162$115 million, or 11%5%, to $1.6 billion for the three months ended September 30, 2017 compared to $1.5 billion for the prior year period primarily due to an increase in AUM, as well as a $15 million increase in performance fees. Average AUM increased $46.5 billion, or 7%,2023 compared to the prior year period due toreflecting market appreciation and wrap account net inflows, partially offset by asset managementthe cumulative impact of Asset Management net outflows. See our discussion on the changes in AUM in our segment results of operations section.
Distribution fees decreased $18$43 million, or 4%8%, for the three months ended September 30, 2023 compared to $437the prior year period primarily due to lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances.
Net investment income increased $460 million, for the three months ended September 30, 20172023 compared to $455 million for the prior year period primarily due to a $64 million decrease related to our transition to share classes without 12b-1 fees in advisory accounts, partially offset by market appreciation and higher brokerage cash spread due to an increase in short-term interest rates.
Premiums decreased $26 million, or 7%, to $348 million for the three months ended September 30, 2017 compared to $374 million for the prior year period primarily reflecting higher ceded premiums for our auto and home business due to new reinsurance arrangements we entered into at the beginning of the year to reduce risk.
Other revenues decreased $120 million, or 36%, to $210 million for the three months ended September 30, 2017 compared to $330 million for the prior year period due to the impact of unlocking. Other revenues for the third quarter of 2017 included a $47 million unfavorable impact from unlocking compared to a $64 million favorable impact in the prior year period. The primary driver of the unlocking impact to other revenues for the third quarter of 2017 was a negative impact from lower projected gains on reinsurance contracts resulting from favorable mortality experience. The primary driver of the unlocking impact to other revenues for the prior year period was a positive impact from higher projected gains on reinsurance contracts resulting from unfavorable mortality experience.
Expenses
Total expenses decreased $407 million, or 15%, to $2.4 billion for the three months ended September 30, 2017 compared to $2.8 billion the prior year period primarily due to the impact of unlocking, partially offset by higher distribution expenses.
Distribution expenses increased $52 million, or 7%, to $850 million for the three months ended September 30, 2017 compared to $798 million for the prior year period primarily due to market appreciation, wrap account net inflows and a $27 million benefit in the prior year period related to the write-off of the deferred reinsurance liability in connection with loss recognition testing of LTC insurance products, partially offset by a $43 million decrease from changes related to our transition to share classes without 12b-1 fees in advisory accounts and asset management net outflows.
Interest credited to fixed accounts increased $15 million, or 9%, to $176 million for the three months ended September 30, 2017 compared to $161 million for the prior year period primarily due to the market impact on indexed universal life benefits, net of hedges, which was an expense of $8 million for the three months ended September 30, 2017 compared to a benefit of $5 million for the prior year period.
Benefits, claims, losses and settlement expenses decreased $381 million, or 45%, to $474 million for the three months ended September 30, 2017 compared to $855 million for the prior year period primarily reflecting the following items:
•The favorable impact of growth in Ameriprise Bank customer deposits and certificate business as a result of the market environment and our strategic decision to invest in these businesses.
•The favorable impact of the trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022.
•The favorable impact of net realized investment losses of $37 million for the three months ended September 30, 2017 included a $139 million benefit from unlocking2023 compared to a $229net realized investment losses of $87 million expense infor the prior year period. Net realized investment losses for three months ended September 30, 2023 were primarily driven by the continued fixed maturity investment portfolio repositioning. Net realized investment losses for three months ended September 30, 2022 were primarily driven by the fixed maturity investment portfolio repositioning in response to market conditions.
•The unlockingfavorable impact of higher net investment income of CIEs.
Premiums, policy and contract charges increased $36 million, or 10%, for the third quarter of 2017 primarily reflected a benefit from updatesthree months ended September 30, 2023 compared to market-related inputs to our living benefit valuation. The unlocking impact for the prior year period primarily reflected lowdue to higher sales of life contingent payout annuities.
Banking and deposit interest expense increased $136 million, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.
Expenses
Distribution expenses increased $99 million, or 8%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting higher market appreciation.
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Interest credited to fixed accounts decreased $18 million, or 11%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:
•A $4 million decrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The unfavorable impact of the nonperformance credit spread was $2 million for the three months ended September 30, 2023 compared to an unfavorable impact from persistency on living benefit reserves, partially offset by a benefit from updates to withdrawal utilization and fee assumptions, as well as market-related inputs to our living benefit valuation.of $6 million for the prior year period.
•A $29 million increase in LTC reserves from a correction related to our claim utilization assumption in the third quarter of 2016.
A $26$9 million decrease in auto and home expenses reflecting the impact of new reinsurance arrangements, a lower non-catastrophe loss ratio and an $8 million benefitexpense from a correction of a reinsurance recoverable estimate, partially offset by higher gross catastrophe losses and a $10 million positive impact from prior year reserve development in the third quarter of 2016. Catastrophe losses,other market impacts on IUL benefits, net of the impacthedges, which was a benefit of reinsurance, were $15 million for the three months ended September 30, 2017, primarily related to Hurricanes Harvey and Irma,2023 compared to $29a benefit of $6 million for the prior year period. In the first quarter of 2017, we entered into quota share and excess of loss reinsurance arrangements designed to reduce net retained exposure to property losses. The expanded reinsurance program resulteddecrease in ceded losses of approximately $38 million in the third quarter.
A $57 million expense from loss recognition on LTC insurance products in the third quarter of 2017was primarily due to unfavorable morbidity experience, partiallya decrease in the IUL embedded derivative in the current period, which reflected higher option costs due to a higher new money rate, offset by premium increases.more discounting due to higher Treasury rates.

AMERIPRISE FINANCIAL, INC. 

Amortization of DAC decreased $115Benefits, claims, losses and settlement expenses increased $39 million, or 71%48%, for the three months ended September 30, 2023 compared to $48the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities.
Change in fair value of market risk benefits increased $489 million, for the three months ended September 30, 20172023 compared to $163the prior year period primarily reflecting the following items:
•The impact of unlocking was an expense of $128 million for three months ended September 30, 2023 primarily reflecting the impact of lower surrender assumptions on variable annuities with living benefits compared to a benefit of $139 million for the prior year period primarily reflecting the impact of unlocking, whichinterest rate assumptions, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.
•A $178 million increase in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks. This increase was the result of an unfavorable $495 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits, partially offset by a benefitfavorable $317 million change in the market impact on variable annuity guaranteed benefits reserves. The main market drivers contributing to these changes are summarized below:
•Equity market impact on the variable annuity guaranteed benefits liability net of $12 millionthe impact on the corresponding hedge assets resulted in a lower expense for the three months ended September 30, 20172023 compared to an expense of $81 million for the prior year period. The
•Interest rate and bond impact of unlocking inon the third quarter of 2017 primarily reflected improved persistency and mortality on life insurance contracts and a $10 million benefit from a correction related to a variable annuity model assumption, partially offset by updates to market-related inputs toguaranteed benefits liability net of the livingimpact on the corresponding hedge assets resulted in a lower benefit valuation. The impact of unlocking in the prior year period primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, we wrote-off $58 million of DAC in connection with the loss recognition on LTC insurance products in the prior year period.
General and administrative expense increased $22 million, or 3%, to $753 million for the three months ended September 30, 20172023 compared to $731the prior year period.
•Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the three months ended September 30, 2023 compared to the prior year period.
•Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a higher net expense for the three months ended September 30, 2023 compared to the prior year period.
Interest and debt expense increased $32 million, or 62%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting higher interest expense of CIEs and the issuance of $750 million of unsecured senior notes in March 2023.
General and administrative expense increased $25 million, or 3%, for the three months ended September 30, 2023 compared to the prior year period primarily due to a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements, higher performance-based compensation.volume related expenses and investments for business growth.
Income Taxes
Our effective tax rate was 19.9%21.8% for the three months ended September 30, 20172023 compared to 9.7%20.5% for the prior year period. Our effective tax ratesSee Note 17 to our Consolidated Financial Statements for the three months ended September 30, 2017 and 2016 are lower than the statutory rate as a result of tax preferred items including the dividends received deduction, lowadditional discussion on income housing tax credits, stock compensation, and lower taxes on net income from foreign subsidiaries. The increase in the effective tax rate for the three months ended September 30, 2017 compared to the prior year period is primarily due to higher pretax income, partially offset by a $25 million benefit for stock compensation due to the adoption of a new accounting standard.taxes.
Results of Operations by Segment for the Three Months Ended September 30, 20172023 and 20162022 
OperatingAdjusted operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. OperatingAdjusted 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 1720 to the Consolidated Financial Statements for further information on the presentation of segment results and our definition of adjusted operating earnings.
Beginning in the first quarter of 2017, the long term care business, which had been reported as part of the Protection segment, is reflected in the Corporate & Other segment. We discontinued underwriting long term care insurance in 2002 and the transfer of this closed block to the Corporate & Other segment allows investors to better understand the performance of our on-going Protection businesses. Prior periods presented have been restated to reflect the change.
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Index
AMERIPRISE FINANCIAL, INC. 
The following table presents summary financial information by segment:
 Three Months Ended September 30,
2017 2016
(in millions)
Advice & Wealth Management 
  
Net revenues$1,383
 $1,272
Expenses1,085
 1,041
Operating earnings$298
 $231
Asset Management 
  
Net revenues$778
 $740
Expenses578
 585
Operating earnings$200
 $155
Annuities 
  
Net revenues$626
 $631
Expenses345
 699
Operating earnings (loss)$281
 $(68)
Protection 
  
Net revenues$478
 $613
Expenses423
 529
Operating earnings$55
 $84
Corporate & Other 
  
Net revenues$50
 $51
Expenses186
 196
Operating loss$(136) $(145)

AMERIPRISE FINANCIAL, INC. 

Three Months Ended September 30,
20232022
(in millions)
Advice & Wealth Management  
Net revenues$2,407 $2,137 
Expenses1,678 1,542 
Adjusted operating earnings$729 $595 
Asset Management
Net revenues$826 $823 
Expenses627 632 
Adjusted operating earnings$199 $191 
Retirement & Protection Solutions
Net revenues$876 $783 
Expenses776 458 
Adjusted operating earnings$100 $325 
Corporate & Other
Net revenues$143 $115 
Expenses215 193 
Adjusted operating loss$(72)$(78)
The following table presents the segment pretax adjusted operating impacts on our revenues and expenses attributable to unlocking:unlocking for the three months ended September 30:
Segment Pretax Operating Increase (Decrease)20232022
Retirement & Protection SolutionsCorporateRetirement & Protection SolutionsCorporate
(in millions)
Premiums, policy and contract charges$1 $— $1 $(2)
Total revenues1 — 1 (2)
Benefits, claims, losses and settlement expenses(17)— 6 (1)
Remeasurement (gains) losses of future policy benefit reserves:
LTC unlocking— (5)— (6)
Unlocking impact, excluding LTC(6)— 6 — 
Total remeasurement (gains) losses of future policy benefit reserves(6)(5)6 (6)
Change in fair value of market risk benefits128 — (139)— 
Amortization of DAC— — — (2)
Total expenses105 (5)(127)(9)
Pretax income (loss)$(104)$5 $128 $7 
91
Segment Pretax Operating Increase (Decrease) Three Months Ended September 30,
2017 2016
Annuities Protection CorporateAnnuities Protection Corporate
  (in millions)
Other revenues $—
 $(47) $—
 $—
 $64
 $—
Total revenues —
 (47) —
 —
 64
 —
             
Distribution expenses —
 —
 —
 —
 —
 (27)
Benefits, claims, losses and settlement expenses (119) (14) 1
 197
 40
 6
Amortization of DAC (1) (13) —
 18
 7
 58
Total expenses (120) (27) 1
 215
 47
 37
Total $120
 $(20) $(1) $(215) $17
 $(37)

Index
AMERIPRISE FINANCIAL, INC. 
Advice & Wealth Management
On July 1, 2017, we closed our acquisition of Investment Professionals, Inc. (“IPI”), an independent broker dealer based in San Antonio, Texas specializing in the on-site delivery of investment programs for financial institutions, including banks and credit unions. The acquisition added 215 financial advisors and $8 billion in client assets.
The following table presents the changes in wrap account assets and average balances for the three months ended September 30:
20232022
(in billions)
Beginning balance$454.7 $399.3 
Net flows5.4 6.4 
Market appreciation (depreciation) and other(16.0)(20.5)
Ending balance$444.1 $385.2 
Advisory wrap account assets ending balance (1)
$439.3 $381.1 
Average advisory wrap account assets (2)
$455.4 $407.8 
 2017 2016
(in billions)
Beginning balance$222.3
 $189.7
Inflows from acquisition (1)
0.7
 —
Other net flows5.4
 2.8
Net flows6.1
 2.8
Market appreciation (depreciation) and other6.8
 5.0
Ending balance$235.2
 $197.5
    
Advisory wrap account assets ending balance (2)
$233.0
 $195.4
Average advisory wrap account assets (3)
$227.0
 $192.7
(1)
Inflows associated with acquisition that closed during the period.
(2)
(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.
(3)
Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
Wrap account assets increased $12.9represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the three months ended September 30, 2023 and 2022.
Ending wrap account assets decreased $10.6 billion, or 6%2%, to $444.1 billion during the three months ended September 30, 20172023 due to market depreciation of $16.0 billion, partially offset by net inflows of $6.1 billion, including $0.7 billion from our acquisition of IPI, and market appreciation and other of $6.8$5.4 billion. Average advisory wrap account assets increased $34.3$47.6 billion, or 18%12%, compared to the prior year period primarily reflecting market appreciation and net inflows and market appreciation.
The following table presents the changes in wrap account assets for the twelve months ended September 30:
 2017 2016
(in billions)
Beginning balance$197.5
 $173.8
Inflows from acquisition (1)
0.7
 —
Other net flows17.1
 9.0
Net flows17.8
 9.0
Market appreciation (depreciation) and other19.9
 14.7
Ending balance$235.2
 $197.5
(1) Inflows associated with acquisition that closed during the period.
Wrap account assets increased $37.7 billion, or 19%, from the prior year period primarily due to net inflows and market appreciation.

AMERIPRISE FINANCIAL, INC. 

inflows.
The following table presents the results of operations of our Advice & Wealth Management segment on an adjusted operating basis:
Three Months Ended September 30, ChangeThree Months Ended September 30,Change
2017 201620232022
(in millions)  (in millions)
RevenuesRevenuesRevenues
Management and financial advice fees$799
 $689
 $110
 16 %Management and financial advice fees$1,424 $1,297 $127 10 %
Distribution fees515
 531
 (16) (3)Distribution fees552 579 (27)(5)
Net investment income64
 47
 17
 36
Net investment income517 219 298 NM
Other revenues17
 17
 —
 —
Other revenues65 57 8 14 
Total revenues1,395
 1,284
 111
 9
Total revenues2,558 2,152 406 19 
Banking and deposit interest expense12
 12
 —
 —
Banking and deposit interest expense151 15 136 NM
Total net revenues1,383
 1,272
 111
 9
Total net revenues2,407 2,137 270 13 
ExpensesExpensesExpenses
Distribution expenses813
 781
 32
 4
Distribution expenses1,253 1,149 104 9 
Interest and debt expense2
 2
 —
 —
Interest and debt expense6 3 3 NM
General and administrative expense270
 258
 12
 5
General and administrative expense419 390 29 7 
Total expenses1,085
 1,041
 44
 4
Total expenses1,678 1,542 136 9
Operating earnings$298
 $231
 $67
 29 %
Adjusted operating earningsAdjusted operating earnings$729 $595 $134 23 %
NM Not Meaningful.NM Not Meaningful.
Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $67$134 million, or 29%23%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting a benefit from higher short-term interest rates and growth in investments supporting the bank cash deposits and certificate products along with higher average wrap account balances due to market appreciation and net inflows. Pretax adjusted operating margin increased to 30.3% for the three months ended September 30, 2023 compared to 27.8% for the prior year period, reflecting the benefit of higher short-term interest rates.
Ameriprise Bank is continuing its deposit growth trend, with bank deposits balances increasing $2.4 billion from the prior year period to $21.0 billion as of September 30, 2023. Profitability at the bank increased compared to the prior year period primarily reflecting increased interest rates along with the trend in deposit growth. The Ameriprise Certificate Company experienced strong growth in the current interest rate environment with client deposits increasing $6.4 billion from the prior year period to $12.6 billion.

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Index
AMERIPRISE FINANCIAL, INC. 
Net Revenues
Management and financial advice fees increased $127 million, or 10%, for the three months ended September 30, 2023 compared to the prior year period primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $47.6 billion, or 12%, compared to the prior year period primarily reflecting market appreciation and net inflows.
Distribution fees decreased $27 million, or 5%, for the three months ended September 30, 2023 compared to the prior year period reflecting lower fees on off-balance sheet brokerage cash due to lower off-balance sheet brokerage cash balances.
Net investment income, which excludes net realized investment gains or losses, increased $298 million, for the three months ended September 30, 20172023 compared to $231 million for the prior year period reflecting wrap account net inflows, market appreciation and higher earnings on brokerage cash due to higher short-term interest rates, partially offset by expenses associated with recruiting experienced advisors and higher performance-based compensation. Pretax operating margin was 21.5% for the three months ended September 30, 2017 compared to 18.2% for the prior year period.
Net Revenues
Net revenues exclude net realized investment gains or losses. Net revenues increased $111 million, or 9%, to $1.4 billion for the three months ended September 30, 2017 compared to $1.3 billion for the prior year period primarily due to higher average invested assets due to growth in wrap account assets,bank cash deposits and certificate products and the favorable impact of increasing short-term interest rates, including higher earningsinvestment yields on brokerage cashthe investment portfolios supporting the products.
Banking and a $12 million increase in revenues from IPI, partially offset by lower 12b-1 fee revenue. During the first quarter, we completed our transition to share classes without 12b-1 fees in advisory accounts, which reduced revenue by a net $54 million in the third quarter compared to the prior year period. Operating net revenue per advisordeposit interest expense increased to $140,000 for the three months ended September 30, 2017, up 7%, from $131,000 for the prior year period. Total advisors were 9,890 at September 30, 2017 compared to 9,747 at September 30, 2016.
Management and financial fees increased $110 million, or 16%, to $799$136 million, for the three months ended September 30, 20172023 compared to $689 million for the prior year period primarily due to growth in wrap account assets. Average advisory wrap account assets increased $34.3 billion, or 18%, compared to the prior year period reflecting net inflows and market appreciation.
Distribution fees decreased $16 million, or 3%, to $515 million for the three months ended September 30, 2017 compared to $531 million for the prior year period primarily due to a $64 million decrease related to our transition to share classes without 12b-1 fees in advisory accounts, partially offset by higher brokerage cash spread due to an increase in short-term interest rates and revenues from IPI.
Net investment income increased $17 million, or 36%, to $64 million for the three months ended September 30, 2017 compared to $47 million for the prior year period primarily due to higher investment yieldsaverage crediting rates and an increase in invested balances driven by certificate net inflows.higher average volumes on certificates and bank cash deposits.
Expenses
Total expensesGeneral and administrative expense increased $44$29 million, or 4%7%, to $1.1 billion for the three months ended September 30, 20172023 compared to $1.0 billion for the prior year period dueprimarily reflecting a $20 million accrual for a regulatory matter relating to increases in distributionelectronic communication recordkeeping requirements, higher volume related expenses and general and administrative expense.investing for business growth.
Distribution expenses increased $32 million, or 4%, to $813 million for the three months ended September 30, 2017 compared to $781 million for the prior year period reflecting higher advisor compensation due to growth in wrap account assets, the IPI acquisition and investments in recruiting experienced advisors, partially offset by a $43 million decrease related to our transition to share classes without 12b-1 fees in advisory accounts.
General and administrative expense increased $12 million, or 5%, to $270 million for the three months ended September 30, 2017 compared to $258 million for the prior year period due to higher performance-based compensation, as well as higher expenses related to the IPI acquisition.

AMERIPRISE FINANCIAL, INC. 

Asset Management
Voluntary fee waivers we provided to the Columbia Money Market Funds were not material for the three months and nine months ended September 30, 2017 and 2016.
The following tables present the mutual fund performance of our retail Columbia and Threadneedle funds as of September 30:
Columbia
Mutual Fund Rankings in top 2 Lipper Quartiles		2017 2016
Domestic EquityEqual weighted1 year72% 62%
  3 year75% 68%
  5 year78% 67%
 Asset weighted1 year68% 74%
  3 year82% 78%
  5 year82% 84%
International EquityEqual weighted1 year75% 55%
  3 year55% 60%
  5 year75% 80%
 Asset weighted1 year56% 73%
  3 year44% 44%
  5 year55% 52%
Taxable Fixed IncomeEqual weighted1 year72% 78%
  3 year78% 71%
  5 year76% 76%
 Asset weighted1 year74% 82%
  3 year83% 76%
  5 year87% 85%
Tax Exempt Fixed IncomeEqual weighted1 year74% 84%
  3 year89% 89%
  5 year100% 94%
 Asset weighted1 year60% 92%
  3 year98% 81%
  5 year100% 88%
Asset Allocation FundsEqual weighted1 year54% 69%
  3 year90% 100%
  5 year78% 75%
 Asset weighted1 year47% 87%
  3 year94% 100%
  5 year93% 81%
Number of funds with 4 or 5 Morningstar star ratings Overall51
 54
  3 year56
 54
  5 year49
 52
Percent of funds with 4 or 5 Morningstar star ratings Overall50% 56%
  3 year55% 56%
  5 year49% 55%
Percent of assets with 4 or 5 Morningstar star ratings Overall58% 68%
  3 year66% 75%
  5 year57% 67%
Mutual fund performance rankings are based on the performance of Class Z fund shares for Columbia branded mutual funds. Only funds with Class Z shares are included.

AMERIPRISE FINANCIAL, INC. 

Equal Weighted Rankings in Top 2 Quartiles: Counts the number of funds with above median ranking divided by the total number of funds. Asset size is not a factor.
Asset Weighted Rankings in Top 2 Quartiles: Sums the total assets of the funds with above median ranking divided by total assets of all funds. Funds with more assets will receive a greater share of the total percentage above or below median.
Threadneedle
Retail Fund Rankings in Top 2 Morningstar Quartiles or Above Index Benchmark		2017 2016
EquityEqual weighted1 year48% 52%
  3 year72% 72%
  5 year72% 71%
 Asset weighted1 year50% 62%
  3 year79% 69%
  5 year59% 63%
Fixed IncomeEqual weighted1 year76% 58%
  3 year79% 50%
  5 year76% 64%
 Asset weighted1 year85% 57%
  3 year90% 69%
  5 year92% 73%
Allocation (Managed) FundsEqual weighted1 year78% 88%
  3 year89% 88%
  5 year86% 83%
 Asset weighted1 year61% 80%
  3 year94% 97%
  5 year93% 92%
The performance of each fund is measured on a consistent basis against the most appropriate benchmark — a peer group of similar funds or an index. 
Equal weighted: Counts the number of funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total number of funds. Asset size is not a factor. 
Asset weighted: Sums the assets of the funds with above median ranking (if measured against peer group) or above index performance (if measured against an index) divided by the total sum of assets in the funds. Funds with more assets will receive a greater share of the total percentage above or below median or index. 
Aggregated Allocation (Managed) Funds include funds that invest in other funds of the Threadneedle range including those funds that invest in both equity and fixed income. 
Aggregated Threadneedle data includes funds on the Threadneedle platform sub-advised by Columbia Management as well as advisors not affiliated with Ameriprise Financial, Inc.
The following table presents global managed assets by type:
 September 30, Change 
Average(1)
 Change
Three Months Ended September 30,
2017 20162017 2016
(in billions)
Equity$265.8
 $245.9
 $19.9
 8 % $261.7
 $244.6
 $17.1
 7 %
Fixed income178.0
 183.3
 (5.3) (3) 177.3
 182.4
 (5.1) (3)
Money market5.9
 6.6
 (0.7) (11) 5.8
 6.9
 (1.1) (16)
Alternative6.5
 7.3
 (0.8) (11) 6.5
 7.2
 (0.7) (10)
Hybrid and other27.8
 24.7
 3.1
 13
 27.2
 24.7
 2.5
 10
Total managed assets$484.0
 $467.8
 $16.2
 3 % $478.5
 $465.8
 $12.7
 3 %
(1) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.

AMERIPRISE FINANCIAL, INC. 

The following table presents the changes in global managed assets:
 Three Months Ended September 30,
2017 2016
(in billions)
Global Retail Funds
Beginning assets$272.9
—
$259.2
Inflows10.9
—
12.3
Acquisition related inflows (1)
—
 1.0
Outflows(12.3)—
(14.2)
Net VP/VIT fund flows(0.8)—
(0.6)
Net new flows(2.2) (1.5)
Reinvested dividends0.5
—
0.6
Net flows(1.7) (0.9)
Distributions(0.7)—
(0.9)
Market appreciation (depreciation) and other9.2
—
9.5
Foreign currency translation (2)
1.1
—
(0.9)
Total ending assets280.8
 266.0
 
Global Institutional
Beginning assets199.7
—
200.4
Inflows5.8
—
5.1
Outflows(8.8)—
(8.5)
Net flows(3.0) (3.4)
Market appreciation (depreciation) and other (3)
4.1
—
7.1
Foreign currency translation (2)
2.4
—
(2.3)
Total ending assets203.2
 201.8
Total managed assets$484.0
 $467.8
Total net flows$(4.7) $(4.3)
 
Former Parent Company Related (4)(5)
Retail net new flows$(0.6)—
$—
Institutional net new flows(2.4)—
(1.5)
Total net new flows$(3.0) $(1.5)
(1) Inflows associated with acquisitions that closed during the period.
(2) Amounts represent local currency to US dollar translation for reporting purposes.
(3) Includes $0.3 billion and $0.8 billion for the total change in Affiliated General Account Assets during the three months ended September 30, 2017 and 2016, respectively.
(4) Former parent company related assets and net new flows are included in the rollforwards above.
(5) Prior period former parent company related net new flows were restated to include additional Former Parent Company net new flows that were previously not considered. The change was a decrease of $65 million for the three months ended September 30, 2016.
In a referendum in June 2016, the United Kingdom (UK) voted to leave the European Union (EU), which caused volatility in capital and currency markets. Further, in March 2017 the UK invoked article 50 of the Treaty of Lisbon in serving its relevant notice to leave the European Union on March 30, 2019. The full impact of the British exit from the EU (commonly known as “Brexit”) remains uncertain. This uncertainty, which is expected to last for a lengthy period of time, has had and may have a negative impact on our UK and European net flows and foreign currency translation resulting from the weakening of the British Pound.
Total segment AUM increased $11.4 billion, or 2%, during the three months ended September 30, 2017 driven by market appreciation and a positive impact of foreign currency translation, partially offset by net outflows. Total segment AUM net outflows were $4.7 billion for the three months ended September 30, 2017, which included $3.0 billion of outflows of former parent-related assets. Management expects, consistent with prior patterns of outflows, that outflows of primarily low margin assets directly or indirectly affiliated with Threadneedle and Columbia former parent companies will continue for the foreseeable future. The overall impact to segment results is difficult to quantify due to uncertain timing, volume and mix of the outflows. Former parent company related AUM was approximately $73 billion as of September 30, 2017.

AMERIPRISE FINANCIAL, INC. 

Global retail net outflows of $1.7 billion included $0.8 billion of outflows of our variable product funds underlying insurance and annuity separate accounts and $0.6 billion of outflows from former parent-related assets. In U.S. retail, net outflows excluding the former parent-related assets were $1.5 billion, reflecting ongoing industry pressure on active strategies. In Europe, Middle East and Africa (“EMEA”), net inflows were $0.4 billion.
Global institutional net outflows of $3.0 billion included $2.4 billion of outflows from former parent-related assets. Institutional outflows from former parent-related assets included Zurich outflows of $0.9 billion and U.S. Trust outflows of $1.5 billion.
On September 20, 2017, we announced our acquisition of Lionstone Investments, a leading national real estate investment firm, specializing in investment strategies based upon proprietary analytics. The acquisition closed on November 1, 2017 and adds approximately $6 billion in assets under management.
The following table presents the results of operations of our Asset Management segment on an operating basis:
 Three Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$657
 $612
 $45
 7 %
Distribution fees111
 125
 (14) (11)
Net investment income6
 1
 5
 NM
Other revenues4
 2
 2
 NM
Total revenues778
 740
 38
 5
Banking and deposit interest expense—
 —
 —
 —
Total net revenues778
 740
 38
 5
Expenses
Distribution expenses246
 261
 (15) (6)
Amortization of deferred acquisition costs4
 4
 —
 —
Interest and debt expense5
 5
 —
 —
General and administrative expense323
 315
 8
 3
Total expenses578
 585
 (7) (1)
Operating earnings$200
 $155
 $45
 29 %
NM  Not Meaningful.
Our Asset Management segment pretax operating earnings, which exclude net realized investment gains or losses, increased $45 million, or 29%, to $200 million for the three months ended September 30, 2017 compared to $155 million for the prior year period primarily due to market appreciation, a $7 million increase in performance fees (net of related compensation), an $8 million increase in incentive fees from CLO unwinds and continued expense management, partially offset by net outflows.
Net Revenues
Net revenues, which exclude net realized investment gains or losses, increased $38 million, or 5%, to $778 million for the three months ended September 30, 2017 compared to $740 million for the prior year period reflecting market appreciation, higher performance fees and an increase in incentive fees from CLO unwinds, partially offset by net outflows and a $13 million decrease related to the transition of advisory accounts to share classes without 12b-1 fees. The Asset Management segment revenue related to 12b-1 fees is eliminated on a consolidated basis.
Management and financial advice fees increased $45 million, or 7%, to $657 million for the three months ended September 30, 2017 compared to $612 million for the prior year period driven by market appreciation, a $15 million increase in performance fees and an $8 million increase in incentive fees from CLO unwinds, partially offset by cumulative net outflows from former parent-related assets and higher fee yielding retail funds. Our average weighted equity index, which is a proxy for equity movements on AUM, increased 14% for the three months ended September 30, 2017 compared to the prior year period.
Distribution fees decreased $14 million, or 11%, to $111 million for the three months ended September 30, 2017 compared to $125 million for the prior year period due to cumulative net outflows and a $13 million decrease related to the transition of advisory accounts to share classes without 12b-1 fees, partially offset by market appreciation.
Expenses
Total expenses decreased $7 million, or 1%, to $578 million for the three months ended September 30, 2017 compared to $585 million for the prior year period due to lower distribution expenses, partially offset by higher general and administrative expense.

AMERIPRISE FINANCIAL, INC. 

Distribution expenses decreased $15 million, or 6%, to $246 million for the three months ended September 30, 2017 compared to $261 million for the prior year period due to lower compensation driven by cumulative net outflows and a decrease related to the transition of advisory accounts to share classes without 12b-1 fees, partially offset by market appreciation. The Asset Management segment expense related to 12b-1 fees is eliminated on a consolidated basis.
General and administrative expense increased $8 million, or 3%, to $323 million for the three months ended September 30, 2017 compared to $315 million for the prior year period due to an $8 million increase in compensation related to higher performance fees.
Annuities
The following table presents the results of operations of our Annuities segment on an operating basis:
 Three Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$196
 $188
 $8
 4 %
Distribution fees91
 89
 2
 2
Net investment income173
 192
 (19) (10)
Premiums24
 29
 (5) (17)
Other revenues142
 133
 9
 7
Total revenues626
 631
 (5) (1)
Banking and deposit interest expense—
 —
 —
 —
Total net revenues626
 631
 (5) (1)
Expenses
Distribution expenses105
 106
 (1) (1)
Interest credited to fixed accounts121
 122
 (1) (1)
Benefits, claims, losses and settlement expenses19
 346
 (327) (95)
Amortization of deferred acquisition costs40
 66
 (26) (39)
Interest and debt expense9
 7
 2
 29
General and administrative expense51
 52
 (1) (2)
Total expenses345
 699
 (354) (51)%
Operating earnings (loss)$281
 $(68) $349
 NM
NM  Not Meaningful.
Our Annuities segment pretax operating income, which excludes net realized investment gains or losses (net of the related DSIC and DAC amortization) and the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization), increased $349 million to $281 million for the three months ended September 30, 2017 compared to a loss of $68 million for the prior year period primarily due to the impact of unlocking.
RiverSource variable annuity account balances increased 4% to $78.7 billion at September 30, 2017 compared to the prior year period due to equity market appreciation, partially offset by net outflows of $3.7 billion. Lapse rates were higher in the quarter, reflecting increased client asset transfers from variable annuities to fee-based investment advisory accounts.
RiverSource fixed deferred annuity account balances declined 7% to $9.5 billion at September 30, 2017 compared to the prior year period as older policies continue to lapse and new sales are limited due to low interest rates. Given the current interest rate environment, our current fixed deferred annuity book is expected to gradually run off and earnings on our fixed deferred annuity business will trend down.
Net Revenues
Net revenues, which exclude net realized investment gains or losses, decreased $5 million, or 1%, to $626 million for the three months ended September 30, 2017 compared to $631 million for the prior year period due to lower investment yields and net outflows in fixed and variable annuities, partially offset by equity market appreciation and an increase in variable annuity rider fees.
Management and financial advice fees increased $8 million, or 4%, to $196 million for the three months ended September 30, 2017 compared to $188 million for the prior year period due to higher fees on variable annuities driven by higher average separate account balances. Average variable annuity account balances increased $2.1 billion, or 3%, from the prior year period due to market appreciation, partially offset by net outflows.

AMERIPRISE FINANCIAL, INC. 

Net investment income, which excludes net realized investment gains or losses, decreased $19 million, or 10%, to $173 million for the three months ended September 30, 2017 compared to $192 million for the prior year period reflecting a decrease of approximately $11 million from lower earned interest rates and approximately $8 million from lower invested assets due to fixed annuity net outflows.
Other revenues increased $9 million, or 7%, to $142 million for the three months ended September 30, 2017 compared to $133 million for the prior year period due to higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date and higher average fee rates.
Expenses
Total expenses, which exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization) and the DAC and DSIC offset to net realized investment gains or losses, decreased $354 million, or 51%, to $345 million for the three months ended September 30, 2017 compared to $699 million for the prior year period primarily due to the impact of unlocking.
Benefits, claims, losses and settlement expenses, which exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization) and the DSIC offset to net realized investment gains or losses, decreased $327 million, or 95%, to $19 million for the three months ended September 30, 2017 compared to $346 million for the prior year period primarily due to the impact of unlocking, which was a $119 million benefit for the third quarter of 2017 compared to a $197 million expense for the prior year period. The unlocking impact for the third quarter of 2017 primarily reflected a benefit from updates to market-related inputs to our living benefit valuation. The unlocking impact for the prior year period primarily reflected low interest rates and an unfavorable impact from persistency on living benefit reserves, partially offset by a benefit from updates to withdrawal utilization and fee assumptions, as well as market-related inputs related to our living benefit valuation.
Amortization of DAC decreased $26 million, or 39%, to $40 million for the three months ended September 30, 2017 compared to $66 million for the prior year period primarily reflecting the impact of unlocking, which was a benefit of $1 million for the three months ended September 30, 2017 compared to an expense of $18 million for the prior year period. The impact of unlocking in the third quarter of 2017 primarily reflected a $10 million benefit from a correction related to a variable annuity model assumption and slightly higher interest rates, largely offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking in the prior year period primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. Our long-term interest rate assumption remained unchanged, but we extended the period it would take for rates to reach our long term level from 3.5 years to 5.5 years.
Protection
The following table presents the results of operations of our Protection segment on an operating basis:
 Three Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$12
 $13
 $(1) (8)%
Distribution fees24
 24
 —
 —
Net investment income86
 85
 1
 1
Premiums305
 323
 (18) (6)
Other revenues51
 168
 (117) (70)
Total revenues478
 613
 (135) (22)
Banking and deposit interest expense—
 —
 —
 —
Total net revenues478
 613
 (135) (22)
Expenses
Distribution expenses17
 17
 —
 —
Interest credited to fixed accounts47
 44
 3
 7
Benefits, claims, losses and settlement expenses278
 363
 (85) (23)
Amortization of deferred acquisition costs13
 38
 (25) (66)
Interest and debt expense7
 6
 1
 17
General and administrative expense61
 61
 —
 —
Total expenses423
 529
 (106) (20)
Operating earnings$55
 $84
 $(29) (35)%

AMERIPRISE FINANCIAL, INC. 

Our Protection segment pretax operating earnings, which excludes net realized investment gains or losses (net of the related DAC amortization, unearned revenue amortization and the reinsurance accrual) and the market impact on indexed universal life benefits (net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance accrual), decreased $29 million, or 35%, to $55 million for the three months ended September 30, 2017 compared to $84 million for the prior year period primarily due to the impact of unlocking, partially offset by improved auto and home results.
Net Revenues
Net revenues, which exclude net realized investment gains or losses (net of unearned revenue amortization and the reinsurance accrual) and the unearned revenue amortization and the reinsurance accrual offset to the market impact on indexed universal life benefits, decreased $135 million, or 22%, to $478 million for the three months ended September 30, 2017 compared to $613 million for the prior year period primarily due to the impact of unlocking and a decrease in premiums.
Premiums decreased $18 million, or 6%, to $305 million for the three months ended September 30, 2017 compared to $323 million for the prior year period primarily reflecting higher ceded premiums for our auto and home business due to new reinsurance arrangements. In the first quarter of 2017, we entered into reinsurance arrangements designed to reduce risk, particularly in several wind/hail states where losses have been elevated.
Other revenues decreased $117 million, or 70%, to $51 million for the three months ended September 30, 2017 compared to $168 million for the prior year period due to the impact of unlocking. Other revenues for the third quarter of 2017 included a $47 million unfavorable impact from unlocking compared to a $64 million favorable impact in the prior year period. The primary driver of the unlocking impact to other revenues for the third quarter of 2017 was a negative impact from lower projected gains on reinsurance contracts resulting from favorable mortality experience. The primary driver of the unlocking impact to other revenues for the prior year period was a positive impact from higher projected gains on reinsurance contracts resulting from unfavorable mortality experience.
Expenses
Total expenses, which exclude the market impact on indexed universal life benefits (net of hedges and the related DAC amortization) and the DAC offset to net realized investment gains or losses, decreased $106 million, or 20%, to $423 million for the three months ended September 30, 2017 compared to $529 million for the prior year period primarily due to the impact of unlocking and a decrease in auto and home expenses.
Benefits, claims, losses and settlement expenses decreased $85 million, or 23%, to $278 million for the three months ended September 30, 2017 compared to $363 million for the prior year period due to the impact of unlocking and a $26 million decrease in auto and home expenses reflecting the impact of new reinsurance arrangements, a lower non-catastrophe loss ratio and an $8 million benefit from a correction of a reinsurance recoverable estimate, partially offset by higher gross catastrophe losses and a $10 million positive impact from prior year reserve development in the third quarter of 2016. The unlocking impact for the third quarter of 2017 was a $14 million benefit and primarily reflected favorable mortality experience on life insurance contracts. The unlocking impact for the third quarter of 2016 was a $40 million expense and primarily reflected low interest rates and unfavorable mortality experience. Catastrophe losses, net of the impact of reinsurance, were $15 million for the three months ended September 30, 2017, primarily related to Hurricanes Harvey and Irma, compared to $29 million for the prior year period. In the first quarter of 2017, we entered into quota share and excess of loss reinsurance arrangements designed to reduce net retained exposure to property losses. The expanded reinsurance program resulted in ceded losses of approximately $38 million in the third quarter.
Amortization of DAC decreased $25 million, or 66%, to $13 million for the three months ended September 30, 2017 compared to $38 million for the prior year period primarily reflecting the impact of unlocking, which was a benefit of $13 million for the three months ended September 30, 2017 compared to an expense of $7 million for the prior year period. The impact of unlocking in the third quarter of 2017 primarily reflected improved persistency and mortality on life insurance contracts.

AMERIPRISE FINANCIAL, INC. 

Corporate & Other
The following table presents the results of operations of our Corporate & Other segment on an operating basis:
 Three Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Net investment income$22
 $21
 $1
 5 %
Premiums28
 27
 1
 4
Other revenues1
 4
 (3) (75)
Total revenues51
 52
 (1) (2)
Banking and deposit interest expense1
 1
 —
 —
Total net revenues50
 51
 (1) (2)
Expenses
Distribution expenses(2) (31) 29
 94
Benefits, claims, losses and settlement expenses119
 101
 18
 18
Amortization of deferred acquisition costs—
 59
 (59) NM
Interest and debt expense6
 7
 (1) (14)
General and administrative expense63
 60
 3
 5
Total expenses186
 196
 (10) (5)
Operating loss$(136) $(145) $9
 6 %
NM  Not Meaningful.
Our Corporate & Other segment pretax operating loss excludes net realized investment gains or losses, the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax operating loss decreased $9 million, or 6%, to $136 million for the three months ended September 30, 2017 compared to $145 million for the prior year period reflecting loss recognition on LTC insurance products of $31 million in the prior year period and a $29 million increase in LTC reserves in the prior year period from a correction related to our claim utilization assumption, partially offset by LTC loss recognition of $57 million for the three months ended September 30, 2017.
Distribution expenses increased $29 million to a benefit of $2 million for the three months ended September 30, 2017 compared to a benefit of $31 million for the prior year period. Distribution expenses for the prior year period included a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with loss recognition on LTC insurance products.
Benefits, claims, losses and settlement expenses increased $18 million, or 18%, to $119 million for the three months ended September 30, 2017 compared to $101 million for the prior year period primarily due to a $57 million expense from loss recognition on LTC insurance products in the third quarter of 2017, partially offset by a $29 million increase in LTC reserves in the prior year period from a correction related to our claim utilization assumption. The LTC loss recognition in the third quarter of 2017 was primarily due to unfavorable morbidity experience, partially offset by premium increases.
Amortization of DAC decreased $59 million compared to the prior year period reflecting the write-off of DAC in the third quarter of 2016 in connection with the loss recognition on LTC insurance products.

AMERIPRISE FINANCIAL, INC. 

Consolidated Results of Operations for the Nine Months Ended September 30, 2017 and 2016
The following table presents our consolidated results of operations:
 Nine Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$4,669
 $4,289
 $380
 9 %
Distribution fees1,310
 1,338
 (28) (2)
Net investment income1,154
 1,090
 64
 6
Premiums1,035
 1,114
 (79) (7)
Other revenues733
 832
 (99) (12)
Total revenues8,901
 8,663
 238
 3
Banking and deposit interest expense34
 29
 5
 17
Total net revenues8,867
 8,634
 233
 3
Expenses
Distribution expenses2,505
 2,371
 134
 6
Interest credited to fixed accounts509
 465
 44
 9
Benefits, claims, losses and settlement expenses1,652
 1,934
 (282) (15)
Amortization of deferred acquisition costs189
 360
 (171) (48)
Interest and debt expense154
 160
 (6) (4)
General and administrative expense2,244
 2,221
 23
 1
Total expenses7,253
 7,511
 (258) (3)
Pretax income1,614
 1,123
 491
 44
Income tax provision315
 209
 106
 51
Net income$1,299
 $914
 $385
 42 %
Overall
Pretax income increased $491 million, or 44%, to $1.6 billion for the nine months ended September 30, 2017 compared to $1.1 billion for the prior year period primarily reflecting the impact of unlocking, market appreciation, wrap account net inflows, a positive impact from higher short-term interest rates, a $23 million expense in the prior year period from the resolution of a legacy legal matter related to the hedge fund business and an unfavorable $29 million LTC reserve correction in the prior year period, partially offset by asset management net outflows, loss recognition of $57 million on LTC insurance products in the third quarter of 2017 and higher performance-based compensation.
The following market-related impacts were also significant drivers of the year-over-year change in pretax income:
The market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization) was an expense of $198 million for the nine months ended September 30, 2017 compared to an expense of $78 million for the prior year period.
The market impact on indexed universal life benefits (net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance accrual) was an expense of $16 million for the nine months ended September 30, 2017 compared to a benefit of $31 million for the prior year period.
The market impact of hedges on investments was an expense of $8 million for the nine months ended September 30, 2017 compared to an expense of $54 million for the prior year period.
Net realized investment gains were $33 million for the nine months ended September 30, 2017 compared to net realized investment losses of $5 million for the prior year period.
The impact on DAC, DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on our view of bond and equity performance was a benefit of $63 million ($27 million for DAC, $6 million for DSIC and $30 million for insurance features in non-traditional long duration contracts) for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $5 million ($3 million for DAC, $1 million for DSIC and $1 million for insurance features in non-traditional long duration contracts) for the prior year period.

AMERIPRISE FINANCIAL, INC. 

See the table of total pretax impacts on our revenues and expenses attributable to unlocking within our Consolidated Results of Operations for the three months ended September 30, 2017.
Net Revenues
Net revenues increased $233 million, or 3%, to $8.9 billion for the nine months ended September 30, 2017 compared to $8.6 billion for the prior year period primarily due to market appreciation, wrap account net inflows, an increase in net investment income, and higher brokerage cash spread due to an increase in short-term interest rates, partially offset by the impact of unlocking, a $138 million decrease in revenues from the net impact of transitioning advisory accounts to share classes without 12b-1 fees, asset management net outflows and higher ceded premiums for our auto and home business.
Management and financial advice fees increased $380 million, or 9%, to $4.7 billion for the nine months ended September 30, 2017 compared to $4.3 billion for the prior year period primarily due to an increase in AUM. Average AUM increased $37.9 billion, or 6%, compared to the prior year period due to market appreciation and wrap account net inflows, partially offset by asset management net outflows and the negative impact of foreign currency translation. See our discussion on the changes in AUM in our segment results of operations section.
Distribution fees decreased $28 million, or 2%, to $1.3 billion for the nine months ended September 30, 2017 compared to the prior year period primarily due to a $162 million decrease related to our transition to share classes without 12b-1 fees in advisory accounts, partially offset by market appreciation and higher brokerage cash spread due to an increase in short-term interest rates.
Net investment income increased $64 million, or 6%, to $1.2 billion for the nine months ended September 30, 2017 compared to $1.1 billion for the prior year period primarily due to a $46 million favorable change in the market impact of hedges on investments and net realized investment gains of $35 million for the nine months ended September 30, 2017 compared to net realized investment losses of $5 million for the prior year period, partially offset by a $16 million decrease in investment income on fixed maturities driven by lower earned interest rates and fixed annuity net outflows.
Premiums decreased $79 million, or 7%, to $1.0 billion for the nine months ended September 30, 2017 compared to $1.1 billion for the prior year period primarily reflecting higher ceded premiums for our auto and home business due to new reinsurance arrangements we entered into at the beginning of the year to reduce risk.
Other revenues decreased $99 million, or 12%, to $733 million for the nine months ended September 30, 2017 compared to $832 million for the prior year period primarily due to the impact of unlocking, partially offset by higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date and higher average fee rates. Other revenues for the nine months ended September 30, 2017 included a $47 million unfavorable impact from unlocking compared to a $64 million favorable impact in the prior year period. The primary driver of the unlocking impact to other revenues for the nine months ended September 30, 2017 was a negative impact from lower projected gains on reinsurance contracts resulting from favorable mortality experience. The primary driver of the unlocking impact to other revenues for the prior year period was a positive impact from higher projected gains on reinsurance contracts resulting from unfavorable mortality experience.
Expenses
Total expenses decreased $258 million, or 3%, to $7.3 billion for the nine months ended September 30, 2017 compared to $7.5 billion for the prior year period primarily due to the impact of unlocking, partially offset by higher distribution expenses.
Distribution expenses increased $134 million, or 6%, to $2.5 billion for the nine months ended September 30, 2017 compared to $2.4 billion for the prior year period reflecting market appreciation, wrap account net inflows and a $27 million benefit in the prior year period related to the write-off of the deferred reinsurance liability in connection with loss recognition testing of LTC insurance products, partially offset by a $106 million decrease from changes related to our transition to share classes without 12b-1 fees in advisory accounts and asset management net outflows.
Interest credited to fixed accounts increased $44 million, or 9%, to $509 million for the nine months ended September 30, 2017 compared to $465 million for the prior year period primarily due to the market impact on indexed universal life benefits, net of hedges, which was an expense of $14 million for the nine months ended September 30, 2017 compared to a benefit of $25 million for the prior year period.
Benefits, claims, losses and settlement expenses decreased $282 million, or 15%, to $1.7 billion for the nine months ended September 30, 2017 compared to $1.9 billion for the prior year period primarily reflecting the following items:
The nine months ended September 30, 2017 included a $139 million benefit from unlocking compared to a $229 million expense in the prior year period. The unlocking impact for the nine months ended September 30, 2017 primarily reflected a benefit from updates to market-related inputs to our living benefit valuation. The unlocking impact for the prior year period primarily reflected low interest rates and an unfavorable impact from persistency on living benefit reserves, partially offset by a benefit from updates to withdrawal utilization and fee assumptions, as well as market-related inputs related to our living benefit valuation.
A $29 million increase in LTC reserves from a correction related to our claim utilization assumption in the third quarter of 2016.

AMERIPRISE FINANCIAL, INC. 

The impact on DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on our view of bond and equity performance was a benefit of $36 million for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $2 million for the prior year period.
An $84 million decrease in auto and home expenses reflecting the impact of new reinsurance arrangements and a lower non-catastrophe loss ratio, partially offset by higher gross catastrophe losses. Catastrophe losses, net of the impact of reinsurance, were $84 million for the nine months ended September 30, 2017 compared to $89 million for the prior year period. The expanded reinsurance program resulted in ceded losses of approximately $82 million for the nine months ended September 30, 2017.
A $57 million expense from loss recognition on LTC insurance products in the third quarter of 2017 primarily due to unfavorable morbidity experience, partially offset by premium increases.
A $24 million increase in expense related to higher reserve funding driven by the impact of higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date.
A $21 million negative impact from changes in assumptions in the prior year unlocking process that resulted in ongoing increases to living benefit reserves.
A $459 million increase in expense compared to the prior year period from the unhedged nonperformance credit spread risk adjustment on variable annuity guaranteed benefits. As the embedded derivative liability on which the nonperformance credit spread is applied increases (decreases), the impact of the nonperformance credit spread is favorable (unfavorable) to expense. The unfavorable impact of the nonperformance credit spread was $122 million for the nine months ended September 30, 2017 compared to a favorable impact of $337 million for the prior year period.
A $309 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 $1.7 billion change in the market impact on variable annuity guaranteed living benefits reserves, an unfavorable $1.4 billion change in the market impact on derivatives hedging the variable annuity guaranteed benefits and a favorable $3 million change in the DSIC offset. The main market drivers contributing to these changes are summarized below:
Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the nine months ended September 30, 2017 compared to the prior year period.
Equity market impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the nine months ended September 30, 2017 compared to an expense in 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 higher expense for the nine months ended September 30, 2017 compared to the prior year period.
Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, fixed income credit exposures, transaction costs and various behavioral items, were a net favorable impact compared to the prior year period.
Amortization of DAC decreased $171 million, or 48%, to $189 million for the nine months ended September 30, 2017 compared to $360 million for the prior year period primarily reflecting the following items:
The impact of unlocking was a benefit of $12 million for the nine months ended September 30, 2017 compared to an expense of $81 million for the prior year period. The impact of unlocking for the nine months ended September 30, 2017 primarily reflected improved persistency and mortality on life insurance contracts and a $10 million benefit from a correction related to a variable annuity model assumption, partially offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking in the prior year period primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits. In addition, we wrote-off $58 million of DAC in connection with the loss recognition on LTC insurance products in the prior year period.
The impact on DAC from actual versus expected market performance based on our view of bond and equity performance was a benefit of $27 million for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $3 million for the prior year period.
The DAC offset to the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization) was a benefit of $24 million for the nine months ended September 30, 2017 compared to an expense of $6 million for the prior year period.
General and administrative expense increased $23 million, or 1%, to $2.2 billion for the nine months ended September 30, 2017 compared to the prior year period primarily due to higher performance-based compensation, partially offset by a $23 million expense in the prior year period from the resolution of a legacy legal matter related to the hedge fund business.

AMERIPRISE FINANCIAL, INC. 

Income Taxes
Our effective tax rate was 19.5% for the nine months ended September 30, 2017 compared to 18.6% for the prior year period. Our effective tax rates for the nine months ended September 30, 2017 and 2016 were lower than the statutory rate as a result of tax preferred items including the dividends received deduction, low income housing tax credits, stock compensation and lower taxes on net income from foreign subsidiaries.
Results of Operations by Segment for the Nine Months Ended September 30, 2017 and 2016 
The following table presents summary financial information by segment:
 Nine Months Ended September 30,
2017 2016
(in millions)
Advice & Wealth Management
Net revenues$4,026
 $3,720
Expenses3,189
 3,063
Operating earnings$837
 $657
Asset Management
Net revenues$2,252
 $2,203
Expenses1,726
 1,751
Operating earnings$526
 $452
Annuities
Net revenues$1,861
 $1,846
Expenses1,299
 1,644
Operating earnings$562
 $202
Protection
Net revenues$1,516
 $1,693
Expenses1,347
 1,503
Operating earnings$169
 $190
Corporate & Other
Net revenues$162
 $178
Expenses454
 449
Operating loss$(292) $(271)
See the table of total pretax impacts on our revenues and expenses attributable to unlocking within our Results of Operations by Segment for the three months ended September 30, 2017.
Advice & Wealth Management
The following table presents the changes in wrap account assets and average balances for the nine months ended September 30:
 2017 2016
(in billions)
Beginning balance$201.1
 $180.5
Inflows from acquisition (1)
0.7
 —
Other net flows13.8
 6.9
Net flows14.5
 6.9
Market appreciation (depreciation) and other19.6
 10.1
Ending balance$235.2
 $197.5
 
Advisory wrap account assets ending balance (2)
$233.0
 $195.4
Average advisory wrap account assets (3)
$216.2
 $184.7
(1) Inflows associated with acquisition that closed during the period.

AMERIPRISE FINANCIAL, INC. 

(2)
Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
(3)
Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
Wrap account assets increased $34.1 billion, or 17%, during the nine months ended September 30, 2017 due to net inflows of $14.5 billion, including $0.7 billion from our acquisition of IPI, and market appreciation and other of $19.6 billion. Net flows increased $7.6 billion compared to the prior year period. Average advisory wrap account assets increased $31.5 billion, or 17%, compared to the prior year period reflecting net inflows and market appreciation.
The following table presents the results of operations of our Advice & Wealth Management segment on an operating basis:
 Nine Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$2,294
 $1,989
 $305
 15 %
Distribution fees1,533
 1,569
 (36) (2)
Net investment income174
 138
 36
 26
Other revenues59
 53
 6
 11
Total revenues4,060
 3,749
 311
 8
Banking and deposit interest expense34
 29
 5
 17
Total net revenues4,026
 3,720
 306
 8
Expenses
Distribution expenses2,379
 2,275
 104
 5
Interest and debt expense7
 6
 1
 17
General and administrative expense803
 782
 21
 3
Total expenses3,189
 3,063
 126
 4
Operating earnings$837
 $657
 $180
 27 %
Our Advice & Wealth Management segment pretax operating earnings, which exclude net realized investment gains or losses, increased $180 million, or 27%, to $837 million for the nine months ended September 30, 2017 compared to $657 million for the prior year period reflecting wrap account net inflows, market appreciation and higher earnings on brokerage cash, partially offset by expenses associated with recruiting experienced advisors and higher performance-based compensation. Pretax operating margin was 20.8% for the nine months ended September 30, 2017 compared to 17.7% for the prior year period.
Net Revenues
Net revenues exclude net realized investment gains or losses. Net revenues increased $306 million, or 8%, to $4.0 billion for the nine months ended September 30, 2017 compared to $3.7 billion for the prior year period primarily due to growth in wrap account assets, higher earnings on brokerage cash and increased transactional activity, partially offset by a $138 million decrease in revenues from the net impact of transitioning advisory accounts to share classes without 12b-1 fees. Operating net revenue per advisor increased to $414,000 for the nine months ended September 30, 2017, up 8%, from $382,000 for the prior year period.
Management and financial fees increased $305 million, or 15%, to $2.3 billion for the nine months ended September 30, 2017 compared to $2.0 billion for the prior year period primarily due to growth in wrap account assets. Average advisory wrap account assets increased $31.5 billion, or 17%, compared to the prior year period reflecting net inflows and market appreciation.
Distribution fees decreased $36 million, or 2%, to $1.5 billion for the nine months ended September 30, 2017 compared to $1.6 billion for the prior year period primarily due to a $162 million decrease related to our transition to share classes without 12b-1 fees in advisory accounts, partially offset by market appreciation, increased transactional activity and higher brokerage cash spread due to an increase in short-term interest rates.
Net investment income increased $36 million, or 26%, to $174 million for the nine months ended September 30, 2017 compared to $138 million for the prior year period primarily due to higher investment yields and an increase in invested balances driven by certificate net inflows.
Expenses
Total expenses increased $126 million, or 4%, to $3.2 billion for the nine months ended September 30, 2017 compared to $3.1 billion for the prior year period primarily due to an increase in distribution expenses and general and administrative expense.

AMERIPRISE FINANCIAL, INC. 

Distribution expenses increased $104 million, or 5%, to $2.4 billion for the nine months ended September 30, 2017 compared to $2.3 billion for the prior year period reflecting higher advisor compensation due to growth in wrap account assets, increased transactional activity and investments in recruiting experienced advisors, partially offset by a $106 million decrease related to our transition to share classes without 12b-1 fees in advisory accounts.
General and administrative expense increased $21 million, or 3%, to $803 million for the nine months ended September 30, 2017 compared to $782 million for the prior year period primarily due to higher performance-based compensation, as well as expenses related to the IPI acquisition.
Asset Management
The following table presents global managedtables present the mutual fund performance of our retail Columbia Threadneedle Investments funds as of September 30, 2023:
Retail Fund Rankings in Top 2 Quartiles or Above Index Benchmark - Asset Weighted (1)
1 year3 year5 year10 year
Equity66%72%77%87%
Fixed Income64%61%74%85%
Asset Allocation69%52%74%90%
4- or 5-star Morningstar rated funds (2)
Overall3 year5 year10 year
Number of rated funds112749497
(1) Retail Fund performance rankings for each fund are measured on a consistent basis against the most appropriate peer group or index. Peer groupings of Columbia funds are defined by Lipper category and are based on the Primary Share Class (i.e. Institutional if available, otherwise Advisor or Instl3 share class), net of fees. Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and are based on the Primary Share Class. Comparison to Index are measured gross of fees.
To calculate asset weighted performance, the sum of the total assets of the funds with above median ranking are divided by type: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 99 Columbia funds rated (based on primary share class), 9 received a 5-star Overall Rating and 31 received a 4-star Overall Rating. Out of 150 Threadneedle funds rated (based on highest-rated share class), 17 received a 5-star Overall Rating and 55 received a 4-star Overall Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.
The following table presents global managed assets by type:
Average (1)
Change
As of September 30,Change
Three Months Ended
September 30,
2023202220232022
(in billions)
Equity$299.1 $278.5 $20.6 7 %$313.9 $305.1 $8.8 3 %
Fixed income214.9 194.6 20.3 10 222.8 214.3 8.5 4 
Money market22.7 21.3 1.4 7 22.6 18.5 4.1 22 
Alternative33.6 35.2 (1.6)(5)34.8 37.0 (2.2)(6)
Hybrid and other16.9 16.9 — — 17.5 18.4 (0.9)(5)
Total managed assets$587.2 $546.5 $40.7 7 %$611.6 $593.3 $18.3 3 %
(1) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
93
 September 30, Change 
Average(1)
 Change
Nine Months Ended September 30,
2017 20162017 2016
(in billions)
Equity$265.8
 $245.9
 $19.9
 8 % $254.3
 $244.0
 $10.3
 4 %
Fixed income178.0
 183.3
 (5.3) (3) 177.3
 179.6
 (2.3) (1)
Money market5.9
 6.6
 (0.7) (11) 5.9
 7.3
 (1.4) (19)
Alternative6.5
 7.3
 (0.8) (11) 7.0
 7.7
 (0.7) (9)
Hybrid and other27.8
 24.7
 3.1
 13
 26.1
 24.2
 1.9
 8
Total managed assets$484.0
 $467.8
 $16.2
 3 % $470.6
 $462.8
 $7.8
 2 %
(1) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.

Index
AMERIPRISE FINANCIAL, INC. 
The following table presents the changes in global managed assets:
 Nine Months Ended September 30,
2017 2016
(in billions)
Global Retail Funds
Beginning assets$259.9
 $263.9
Inflows38.0
 38.3
Acquisition related inflows (1)
—
 1.0
Outflows(45.7) (45.7)
Net VP/VIT fund flows(2.5) (1.3)
Net new flows(10.2) (7.7)
Reinvested dividends3.3
 3.8
Net flows(6.9) (3.9)
Distributions(4.1) (4.6)
Market appreciation (depreciation) and other28.5
 13.8
Foreign currency translation (2)
3.4
 (3.2)
Total ending assets280.8
 266.0
 
Global Institutional
Beginning assets194.5
 208.0
Inflows18.9
 18.5
Outflows(31.0) (31.1)
Net flows(12.1) (12.6)
Market appreciation (depreciation) and other (3)
13.9
 14.9
Foreign currency translation (2)
6.9
 (8.5)
Total ending assets203.2
 201.8
Total managed assets$484.0
 $467.8
Total net flows$(19.0) $(16.5)
 

AMERIPRISE FINANCIAL, INC. 

 Nine Months Ended September 30,
2017 2016
(in billions)
Former Parent Company Related (4)(5)
Retail net new flows$(2.3) $(0.6)
Institutional net new flows(10.4) (7.6)
Total net new flows$(12.7) $(8.2)
(1)
Inflows associated with acquisitions that closed during the period.
(2)
Three Months Ended September 30,
20232022
(in billions)
Global Retail Funds
Beginning assets$327.4 $323.0 
Inflows11.3 11.7 
Outflows(15.2)(17.6)
Net VP/VIT fund flows(1.3)(1.0)
Net new flows(5.2)(6.9)
Reinvested dividends1.3 1.6 
Net flows(3.9)(5.3)
Distributions(1.5)(1.9)
Market appreciation (depreciation) and other(8.5)(15.3)
Foreign currency translation (1)
(3.3)(4.3)
Total ending assets310.2 296.2 
Global Institutional
Beginning assets289.2 275.2 
Inflows (2)
8.5 14.9 
Outflows (2)
(8.8)(12.0)
Net flows(0.3)2.9 
Market appreciation (depreciation) and other (3)
(4.6)(17.8)
Foreign currency translation (1)
(7.3)(10.0)
Total ending assets277.0 250.3 
Total managed assets$587.2 $546.5 
Total net flows$(4.2)$(2.4)
Legacy insurance partners net flows (4)
$(0.9)$(1.0)
(1) Amounts represent local currency to USU.S. dollar translation for reporting purposes.
(3) Includes $0.3 billion(2) Global Institutional inflows and $2.6 billionoutflows include net flows from our structured annuity product and Ameriprise Bank.
(3) Included in Market appreciation (depreciation) and other for Global Institutional is the total change in Affiliated General Account Assets during the nine months ended September 30, 2017affiliated general account balance, excluding net flows related to our structured variable annuity product and 2016, respectively.Ameriprise Bank.
(4) Former parent company related Legacy insurance partners assets and net new flows are included in the rollforwards above.
(5) Prior period former parent company related net new flows were restated to include additional Former Parent Company net new flows that were previously not considered. The change was a decrease of $199 million forTotal segment AUM decreased $29.4 billion, or 5%, during the ninethree months ended September 30, 2017
Total segment AUM increased $29.6billion, or 7%,during the nine monthsendedSeptember 30, 2017drivenby2023 primarily due to equity and fixed income market appreciationdepreciation, foreign exchange translation, and a positive impact of foreign currency translation, partially offset by net outflows. Total segment AUM netNet outflows were $19.0$4.2 billion forin the nine months ended September 30, 2017, which included $12.7third quarter of 2023, a $1.8 billion of outflows of former parent-related assets.decrease compared to the prior year period.
Global retail net outflows of $6.9 billion included $2.5 billion of outflows of our variable product funds underlying insurance and annuity separate accounts and $2.3 billion of outflows from former parent-related assets. In U.S. retail, net outflows excluding the former parent-related assets were $5.5 billion, reflecting industry pressures on active strategies partially offset by $3.3 billion of reinvested dividends. In EMEA, net inflows were $0.9 billion.
94

Global institutional net outflows of $12.1 billion included $10.4 billion of outflows from former parent-related assets and a $1.6 billion outflow from an institutional client that continued a pattern of redeeming assets for liquidity purposes that started in 2015. Institutional outflows from former parent-related assets included Zurich outflows of $6.6 billion and U.S. Trust outflows of $3.8 billion.Index
AMERIPRISE FINANCIAL, INC. 
The following table presents the results of operations of our Asset Management segment on an adjusted operating basis:
Nine Months Ended September 30, ChangeThree Months Ended September 30,Change
2017 201620232022
(in millions)  (in millions)
RevenuesRevenuesRevenues
Management and financial advice fees$1,880
 $1,826
 $54
 3 %Management and financial advice fees$717 $723 $(6)(1)%
Distribution fees344
 363
 (19) (5)Distribution fees92 96 (4)(4)
Net investment income16
 9
 7
 78
Net investment income10 2 8 NM
Other revenues12
 5
 7
 NM
Other revenues7 2 5 NM
Total revenues2,252
 2,203
 49
 2
Total revenues826 823 3 — 
Banking and deposit interest expense—
 —
 —
 —
Banking and deposit interest expense— — — — 
Total net revenues2,252
 2,203
 49
 2
Total net revenues826 823 3 — 
ExpensesExpensesExpenses
Distribution expenses750
 762
 (12) (2)Distribution expenses234 238 (4)(2)
Amortization of deferred acquisition costs12
 13
 (1) (8)Amortization of deferred acquisition costs1 2 (1)(50)
Interest and debt expense16
 16
 —
 —
Interest and debt expense2 1 1 NM
General and administrative expense948
 960
 (12) (1)General and administrative expense390 391 (1)— 
Total expenses1,726
 1,751
 (25) (1)Total expenses627 632 (5)(1)
Operating earnings$526
 $452
 $74
 16 %
Adjusted operating earningsAdjusted operating earnings$199 $191 $8 4 %
NM Not Meaningful.NM Not Meaningful.NM Not Meaningful.
Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $74$8 million, or 16%4%, to $526 million for the ninethree months ended September 30, 20172023 compared to $452 million for the prior year period primarily due to equity market appreciation, an increase in incentive fees from CLO unwinds, a $9 million expense in the prior year period from the resolution of a legacy legal matter related to the hedge fund business and continued expense management, partially offset by the cumulative impact from net outflows and higher performance-based compensation.

AMERIPRISE FINANCIAL, INC. 

outflows.
Net Revenues
Net revenues, which exclude net realized investment gains or losses, increased $49Management and financial advice fees decreased $6 million, or 2%1%, to $2.3 billion for the ninethree months ended September 30, 20172023 compared to $2.2 billion for the prior year period reflecting market appreciation and an increase in incentive fees from CLO unwinds, partially offset by net outflows, foreign exchange translation and a $28 million decrease related to the transition of advisory accounts to share classes without 12b-1 fees. The Asset Management segment revenue related to 12b-1 fees is eliminated on a consolidated basis.
Management and financial advice fees increased $54 million, or 3%, to $1.9 billion for the nine months ended September 30, 2017 compared to $1.8 billion for the prior year period driven by market appreciation and an increase in incentive fees fromCLOunwinds,partiallyoffsetbycumulativenetoutflowsfromformerparent-related assetsandhigher fee yielding retail funds and a $24 million negative foreign currency translation impact. Our average weighted equity index, which is a proxyforequity movementsonAUM,increased16%for the nine months ended September 30, 2017comparedto theprioryear period.
Distribution fees decreased $19 million, or 5%, to $344 million for the nine months ended September 30, 2017 compared to $363 million for the prior year period due to cumulative net outflows and a $28 million decrease related to the transition of advisory accounts to share classes without 12b-1 fees, partially offset by market appreciation.
Expenses
Total expenses decreased $25 million, or 1%, to $1.7 billion for the nine months ended September 30, 2017 compared to $1.8 billion for the prior year period due to lower distribution expenses and general and administrative expense.
Distribution expenses decreased $12 million, or 2%, to $750 million for the nine months ended September 30, 2017 compared to $762 million for the prior year period due to lower compensation driven by cumulative net outflows and a decrease related to the transition of advisory accounts to share classes without 12b-1 fees, partially offset by market appreciation. The Asset Management segment expense related to 12b-1 fees is eliminated on a consolidated basis.
General and administrative expense decreased $12 million, or 1%, to $948 million for the nine months ended September 30, 2017 compared to $960 million for the prior year period primarily due to a $20the cumulative impact from net outflows, partially offset by higher average equity markets.
Distribution fees decreased $4 million, benefit fromor 4%, for the impact of foreign exchange, a $9 million expense inthree months ended September 30, 2023 compared to the prior year period primarily reflecting the cumulative impact from net outflows.
Net investment income increased $8 million, for the resolution of a legacy legal matter relatedthree months ended September 30, 2023 compared to the hedge fund business and continued expense management, partially offsetprior year period primarily driven by higher performance-based compensation.interest rates.
Expenses
AnnuitiesDistribution expenses decreased $4 million, or 2%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the cumulative impact from net outflows.

95

Index
AMERIPRISE FINANCIAL, INC. 
Retirement & Protection Solutions
The following table presents the results of operations of our AnnuitiesRetirement & Protection Solutions segment on an adjusted operating basis:
 Nine Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$573
 $549
 $24
 4 %
Distribution fees270
 260
 10
 4
Net investment income527
 573
 (46) (8)
Premiums84
 89
 (5) (6)
Other revenues407
 375
 32
 9
Total revenues1,861
 1,846
 15
 1
Banking and deposit interest expense—
 —
 —
 —
Total net revenues1,861
 1,846
 15
 1
Expenses
Distribution expenses314
 316
 (2) (1)
Interest credited to fixed accounts357
 360
 (3) (1)
Benefits, claims, losses and settlement expenses311
 628
 (317) (50)
Amortization of deferred acquisition costs135
 159
 (24) (15)
Interest and debt expense26
 24
 2
 8
General and administrative expense156
 157
 (1) (1)
Total expenses1,299
 1,644
 (345) (21)
Operating earnings$562
 $202
 $360
 NM
NM  Not Meaningful.

AMERIPRISE FINANCIAL, INC. 

Three Months Ended September 30,Change
20232022
(in millions)
Revenues
Management and financial advice fees$186 $189 $(3)(2)%
Distribution fees101 101 — — 
Net investment income215 151 64 42 
Premiums, policy and contract charges372 339 33 10 
Other revenues2 3 (1)(33)
Total revenues876 783 93 12 
Banking and deposit interest expense— — — —
Total net revenues876 783 93 12 
Expenses
Distribution expenses117 106 11 10 
Interest credited to fixed accounts94 97 (3)(3)
Benefits, claims, losses and settlement expenses168 113 55 49 
Remeasurement (gains) losses of future policy benefit reserves(10)5 (15)NM
Change in fair value of market risk benefits259 (11)270 NM
Amortization of deferred acquisition costs57 56 1 2 
Interest and debt expense12 10 2 20 
General and administrative expense79 82 (3)(4)
Total expenses776 458 318 69 
Adjusted operating earnings$100 $325 $(225)(69)%
NM  Not Meaningful.
Our AnnuitiesRetirement & Protection Solutions segment pretax operating income, which excludes net realized investment gains or losses (net of the related DSIC and DAC amortization) and the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization), increased $360 million to $562 million for the nine months ended September 30, 2017 compared to $202 million for the prior year period primarily due to the impact of unlocking, equity market appreciation and the impact on DAC, DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on our view of bond and equity performance, partially offset by lower investment yields and a $21 million negative impact from changes in assumptions in the prior year unlocking process that resulted in ongoing increases to living benefit reserves.
The impact on DAC, DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on our view of bond and equity performance was a benefit of $61 million ($25 million for DAC, $6 million for DSIC and $30 million for insurance features in non-traditional long duration contracts) for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $5 million ($3 million for DAC, $1 million for DSIC and $1 million for insurance features in non-traditional long duration contracts) for the prior year period.
Net Revenues
Net revenues, which exclude net realized investment gains or losses, increased $15 million, or 1%, to $1.9 billion for the nine months ended September 30, 2017 compared to $1.8 billion for the prior year period due to equity market appreciation and an increase in variable annuity rider fees, partially offset by lower investment yields and net outflows in fixed and variable annuities.
Management and financial advice fees increased $24 million, or 4%, to $573 million for the nine months ended September 30, 2017 compared to $549 million for the prior year period due to higher fees on variable annuities driven by higher average separate account balances. Average variable annuity account balances increased $2.8 billion, or 4%, from the prior year period due to market appreciation, partially offset by net outflows.
Net investment income, which excludes net realized investment gains or losses, decreased $46 million, or 8%, to $527 million for the nine months ended September 30, 2017 compared to $573 million for the prior year period primarily reflecting a decrease of approximately $34 million from lower earned interest rates and approximately $12 million from lower invested assets due to fixed annuity net outflows.
Other revenues increased $32 million, or 9%, to $407 million for the nine months ended September 30, 2017 compared to $375 million for the prior year period due to higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date and higher average fee rates.
Expenses
Total expenses, which exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization) and the DAC and DSIC offset to net realized investment gains or losses, decreased $345 million, or 21%, to $1.3 billion for the nine months ended September 30, 2017 compared to $1.6 billion for the prior year period primarily due to the impact of unlocking.
Benefits, claims, losses and settlement expenses, which exclude the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC amortization) and the DSIC offset to net realized investment gains or losses, decreased $317 million, or 50%, to $311 million for the nine months ended September 30, 2017 compared to $628 million for the prior year period primarily reflecting the following items:
The impact of unlocking was a $119 million benefit for the nine months ended September 30, 2017 compared to a $197 million expense for the prior year period. The unlocking impact for the nine months ended September 30, 2017 primarily reflected a benefit from updates to market-related inputs to our living benefit valuation. The unlocking impact for the prior year period primarily reflected low interest rates and an unfavorable impact from persistency on living benefit reserves, partially offset by a benefit from updates to withdrawal utilization and fee assumptions, as well as market-related inputs related to our living benefit valuation.
The impact on DSIC and reserves for insurance features in non-traditional long-duration contracts from actual versus expected market performance based on our view of bond and equity performance was a benefit of $36 million for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $2 million for the prior year period.
A $24 million increase in expense related to higher reserve funding driven by the impact of higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date.
A $21 million negative impact from changes in assumptions in the prior year unlocking process that resulted in ongoing increases to living benefit reserves.
Amortization of DAC decreased $24 million, or 15%, to $135 million for the nine months ended September 30, 2017 compared to $159 million for the prior year period primarily reflecting the following items:
The impact of unlocking was a benefit of $1 million for the nine months ended September 30, 2017 compared to an expense of $18 million for the prior year period. The impact of unlocking for the nine months ended September 30, 2017 primarily

AMERIPRISE FINANCIAL, INC. 

reflected a $10 million benefit from a correction related to a variable annuity model assumption and slightly higher interest rates, largely offset by updates to market-related inputs to the living benefit valuation. The impact of unlocking in the prior year period primarily reflected low interest rates that more than offset benefits from persistency on annuity contracts without living benefits.
The impact on DAC from actual versus expected market performance based on our view of bond and equity performance was a benefit of $25 million for the nine months ended September 30, 2017 reflecting favorable equity market and bond fund returns compared to a benefit of $3 million for the prior year period.
The negative impact on DAC from higher than expected lapses on variable annuities was $14 million.
Protection
The following table presents the results of operations of our Protection segment on an operating basis:
 Nine Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Management and financial advice fees$35
 $38
 $(3) (8)%
Distribution fees74
 72
 2
 3
Net investment income253
 247
 6
 2
Premiums896
 959
 (63) (7)
Other revenues258
 377
 (119) (32)
Total revenues1,516
 1,693
 (177) (10)
Banking and deposit interest expense—
 —
 —
 —
Total net revenues1,516
 1,693
 (177) (10)
Expenses
Distribution expenses50
 50
 —
 —
Interest credited to fixed accounts138
 130
 8
 6
Benefits, claims, losses and settlement expenses888
 1,015
 (127) (13)
Amortization of deferred acquisition costs70
 107
 (37) (35)
Interest and debt expense19
 18
 1
 6
General and administrative expense182
 183
 (1) (1)
Total expenses1,347
 1,503
 (156) (10)
Operating earnings$169
 $190
 $(21) (11)%
Our Protection segment pretaxadjusted operating earnings, which excludes net realized investment gains or losses (net of the related DAC amortization, unearned revenue amortization and the reinsurance accrual) and, the market impact on indexed universal lifevariable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts decreased $21$225 million, or 11%69%, to $169 million for the ninethree months ended September 30, 20172023 compared to $190 million for the prior year period primarily due to the impact of unlocking and the low interest rate environment, partially offset by improved auto and home results.
Net Revenues
Net revenues, which exclude net realized investment gains or losses (net of unearned revenue amortization and the reinsurance accrual) and the unearned revenue amortization and the reinsurance accrual offset to the market impact on indexed universal life benefits, decreased $177 million, or 10%, to $1.5 billion for the nine months ended September 30, 2017 compared to $1.7 billion for the prior year period primarily due to the impact of unlocking and a decrease in premiums.
Premiums decreased $63 million, or 7%, to $896 million for the nine months ended September 30, 2017 compared to $959 million for the prior year period primarily reflecting higher ceded premiums for our auto and home business due to new reinsurance arrangements we entered into at the beginning of the year to reduce risk.
Other revenues decreased $119 million, or 32%, to $258 million for the nine months ended September 30, 2017 compared to $377 million for the prior year period due to the impact of unlocking. Other revenues
Variable annuity account balances increased 5% to $75.1 billion as of September 30, 2023 compared to the prior year period due to market appreciation, partially offset by net outflows of $2.8 billion. Variable annuity sales increased 18% compared to the prior year period reflecting an increase in sales of structured variable annuities. Account values with living benefit riders declined to 55% as of September 30, 2023 compared to 58% a year ago reflecting our actions to optimize our business mix. This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.
Net Revenues
Net investment income, which excludes net realized investment gains or losses, increased $64 million, or 42%, for the ninethree months ended September 30, 2017 included a $47 million unfavorable impact from unlocking2023 compared to a $64 million favorable impact in the prior year period. The primary driver of the unlocking impactperiod primarily due to other revenueshigher interest rates, investment portfolio repositioning resulting in higher yields and increased structured variable annuities (“SVA”) balances.
Premiums, policy and contract charges increased $33 million, or 10%, for the ninethree months ended September 30, 2017 was a negative impact from lower projected gains on reinsurance contracts resulting from favorable mortality experience. The primary driver of the unlocking

AMERIPRISE FINANCIAL, INC. 

impact2023 compared to other revenues for the prior year period was a positive impact fromdue to higher projected gains on reinsurance contracts resulting from unfavorable mortality experience.sales of life contingent payout annuities.
Expenses
TotalBenefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed universal life benefitsaccount embedded derivative (net of hedgeshedges) and themean reversion related DAC amortization) and the DAC offset to net realized investment gains or losses, decreased $156impacts, increased $55 million, or 10%49%, to $1.3 billion for the ninethree months ended September 30, 20172023 compared to $1.5 billion for the prior year period due toprimarily reflecting the impact of unlockinghigher sales of life contingent payout annuities and a decreaseincreased volume in auto and home expenses.SVAs, partially offset by the favorable impact of unlocking.
Benefits, claims, losses and settlement expenses decreased $127 million, or 13%Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), to $888increased $270 million, for the ninethree months ended September 30, 20172023 compared to $1.0 billion for the prior year period due to the impact of unlocking and an $84 million decrease in auto and home expenses reflecting the impact of new reinsurance arrangements and a lower non-catastrophe loss ratio, partially offset by higher gross catastrophe losses.
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unlocking. The unlocking impact for the ninethree months ended September 30, 20172023 was a $14an expense of $128 million benefit and primarily reflected favorable mortality experiencereflecting lower surrender assumptions on life insurance contracts. The unlocking impact for the prior year period was a $40 million expense and primarily reflected low interest rates and unfavorable mortality experience. Catastrophe losses, net of the impact of reinsurance, were $84 million for the nine months ended September 30, 2017variable annuities with living benefits compared to $89 million for the prior year period. The expanded reinsurance program resulted in ceded lossesa benefit of approximately $82 million for the nine months ended September 30, 2017.
Amortization of DAC decreased $37 million, or 35%, to $70 million for the nine months ended September 30, 2017 compared to $107$139 million for the prior year period primarily reflecting the impact of unlocking, as well asinterest rate assumptions, partially offset by lower DAC amortization on our autosurrender assumptions and home business. The unlocking impactupdated mortality assumptions for the nine months ended September 30, 2017 was a benefit of $13 million and primarily reflected improved persistency and mortality on life insurance contracts. The unlocking impact for the prior year period was an expense of $7 million.variable annuities with living benefits.
Corporate & Other
The following table presents the results of operations of our Corporate & Other segment on an adjusted operating basis:
Three Months Ended September 30,Change
20232022
(in millions)
Revenues
Distribution fees$1 $— $1 — %
Net investment income71 35 36 NM
Premiums, policy and contract charges25 25 — — 
Other revenues52 57 (5)(9)
Total revenues149 117 32 27 
Banking and deposit interest expense6 2 4 NM
Total net revenues143 115 28 24 
Expenses
Distribution expenses(3)(2)(1)(50)
Interest credited to fixed accounts59 61 (2)(3)
Benefits, claims, losses and settlement expenses59 67 (8)(12)
Remeasurement (gains) losses of future policy benefit reserves(2)(6)4 67 
Amortization of deferred acquisition costs4 — 4 — 
Interest and debt expense28 17 11 65 
General and administrative expense70 56 14 25 
Total expenses215 193 22 11 
Adjusted operating loss$(72)$(78)$6 8 %
NM  Not Meaningful.
 Nine Months Ended September 30, Change
2017 2016
(in millions)  
Revenues
Net investment income$79
 $94
 $(15) (16)%
Premiums81
 81
 —
 —
Other revenues4
 4
 —
 —
Total revenues164
 179
 (15) (8)
Banking and deposit interest expense2
 1
 1
 NM
Total net revenues162
 178
 (16) (9)
Expenses
Distribution expenses(7) (39) 32
 82
Benefits, claims, losses and settlement expenses239
 219
 20
 9
Amortization of deferred acquisition costs—
 63
 (63) NM
Interest and debt expense20
 21
 (1) (5)
General and administrative expense202
 185
 17
 9
Total expenses454
 449
 5
 1
Operating loss$(292) $(271) $(21) (8)%
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 annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss decreased $6 million for the three months ended September 30, 2023 compared to the prior year period.
LTC insurance had a pretax adjusted operating earnings of $10 million for the three months ended September 30, 2023 compared to pretax adjusted operating earnings of nil for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.
FA business had a pretax adjusted operating loss of $8 million for the three months ended September 30, 2023 compared to a pretax adjusted operating loss of $5 million for the prior year period. Fixed deferred annuity account balances declined 11% to $6.5 billion as of September 30, 2023 compared to the prior year period as policies continue to lapse and we previously discontinued new sales of fixed deferred annuities.
Net Revenues
Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impacts, integration and restructuring charges, and the impact of consolidating CIEs, increased $36 million for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions.
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Expenses
Interest and debt expense increased $11 million, or 65%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting the issuance of $750 million of unsecured senior notes in March 2023.
General and administrative expense increased $14 million, or 25%, for the three months ended September 30, 2023 compared to the prior year period primarily reflecting $7 million of severance expenses related to our expense management initiatives and are designed to improve operating efficiency and effectiveness.
Consolidated Results of Operations for the Nine Months Ended September 30, 2023 and 2022
The following table presents our consolidated results of operations:
Nine Months Ended September 30,Change
20232022
(in millions)
Revenues
Management and financial advice fees$6,623 $6,908 $(285)(4)%
Distribution fees1,462 1,411 51 4 
Net investment income2,318 897 1,421 NM
Premiums, policy and contract charges1,135 1,034 101 10 
Other revenues390 365 25 7 
Total revenues11,928 10,615 1,313 12 
Banking and deposit interest expense385 20 365 NM
Total net revenues11,543 10,595 948 9 
Expenses
Distribution expenses3,771 3,737 34 1 
Interest credited to fixed accounts464 443 21 5 
Benefits, claims, losses and settlement expenses748 (83)831 NM
Remeasurement (gains) losses of future policy benefit reserves(17)(6)(11)NM
Change in fair value of market risk benefits558 298 260 87 
Amortization of deferred acquisition costs185 190 (5)(3)
Interest and debt expense240 136 104 76 
General and administrative expense2,854 2,766 88 3 
Total expenses8,803 7,481 1,322 18 
Pretax income2,740 3,114 (374)(12)
Income tax provision561 614 (53)(9)
Net income$2,179 $2,500 $(321)(13)%
NM Not Meaningful.
Overall
Pretax income decreased $374 million, or 12%, for the nine months ended September 30, 2023 compared to the prior year period.
•The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was an expense of $137 million for the nine months ended September 30, 2023 compared to a benefit of $566 million for the prior year period.
•The unfavorable impact of unlocking was $99 million for the nine months ended September 30, 2023 compared to a favorable impact of $133 million for the prior year period.
•An unfavorable impact from the cumulative impact of Asset Management net outflows.
•A favorable impact from the trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022, along with higher balances in bank and certificate products.
See our Consolidated Results of Operations for the three months ended September 30, 2023 and 2022 for a table and discussion of total pretax impacts on our revenues and expenses attributable to unlocking.
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Net Revenues
Management and financial advice fees decreased $285 million, or 4%, for the nine months ended September 30, 2023 compared to the prior year period reflecting the cumulative impact of Asset Management net outflows, fixed income market depreciation and a decrease in performance fees of $47 million, partially offset by continued wrap account net inflows.
Distribution fees increased $51 million, or 4%, for the nine months ended September 30, 2023 compared to the prior year period due to $88 million of higher fees on off-balance sheet brokerage cash due to an increase in short-term interest rates, partially offset by the cumulative impact of net outflows.
Net investment income increased $1.4 billion for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting:
•The favorable impact of growth in Ameriprise Bank customer deposits and certificate business as a result of the market environment and our strategic decision to invest in these businesses.
•The favorable impact of the trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance business in the fourth quarter of 2022.
•The favorable impact of higher net investment income of CIEs.
•The favorable impact of net realized investment losses of $27 million for the nine months ended September 30, 2023 compared to net realized investment losses of $82 million for the prior year period. Net realized investment losses for nine months ended September 30, 2023 were primarily driven by the continued fixed maturity investment portfolio repositioning. Net realized investment losses for nine months ended September 30, 2022 were primarily driven by the fixed maturity investment portfolio repositioning in response to market conditions.
Premiums, policy and contract charges increased $101 million, or 10%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.
Banking and deposit interest expense increased $365 million for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and Ameriprise Bank cash deposits.
Expenses
Interest credited to fixed accounts increased $21 million, or 5%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:
•A $48 million increase in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The favorable impact of the nonperformance credit spread was $6 million for the nine months ended September 30, 2023 compared to a favorable impact of $54 million for the prior year period.
•A $13 million decrease in expense from other market impacts on IUL benefits, net of hedges, which was an expense of $16 million for the nine months ended September 30, 2023 compared to an expense of $29 million for the prior year period. The decrease in expense was primarily due to an increase in the IUL embedded derivative in the prior period, which reflected higher option costs due to a higher new money rate, offset by more discounting due to higher Treasury rates.
Benefits, claims, losses and settlement expenses increased $831 million, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:
•A $643 million increase in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks. This increase was the result of a favorable $746 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $1.4 billion change in the market impact on SVA embedded derivative. The main market driver contributing to these changes was the equity market impact on the SVA embedded derivative net of the impact on the corresponding hedge assets resulted in an expense for the nine months ended September 30, 2023 compared to a benefit in the prior year period.
•The impact of higher sales of life contingent payout annuities.
•The impact of increased volume in SVAs.
Change in fair value of market risk benefits increased $260 million, or 87%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the following items:
•The impact of unlocking was an expense of $128 million for nine months ended September 30, 2023 primarily reflecting the impact of lower surrender assumptions on variable annuities with living benefits compared to a benefit of $139 million for the prior year period primarily reflecting the impact of interest rate assumptions, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.
•A $29 million decrease in expense from market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks. This decrease was the result of a favorable $870 million change in the market impact on variable annuity guaranteed
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benefits reserves and an unfavorable $841 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes are summarized below:
•Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the nine months ended September 30, 2023 compared to an expense in the prior year period.
•Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower benefit for the nine months ended September 30, 2023 compared to the prior year period.
•Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower expense for the nine months ended September 30, 2023 compared to the prior year period.
•Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a lower net expense for the nine months ended September 30, 2023 compared to the prior year period.
Interest and debt expense increased $104 million, or 76%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher interest expense of CIEs and the issuance of $750 million of unsecured senior notes in March 2023.
General and administrative expense increased $88 million, or 3%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements, higher volume related expenses and investments for business growth, $12 million of higher integration related expenses and an unfavorable change in the mark-to-market impact on share-based compensation. A portion of the higher integration related expenses was driven by the consolidation of the majority of our London-based teams into a single location following the acquisition of the BMO Global Asset Management (EMEA) business.
Income Taxes
Our effective tax rate was 20.5% for the nine months ended September 30, 2023 compared to 19.7% for the prior year period. See Note 17 to our Consolidated Financial Statements for additional discussion on income taxes.
Results of Operations by Segment for the Nine Months Ended September 30, 2023 and 2022 
The following table presents summary financial information by segment:
Nine Months Ended September 30,
20232022
(in millions)
Advice & Wealth Management
Net revenues$7,015 $6,235 
Expenses4,862 4,708 
Adjusted operating earnings$2,153 $1,527 
Asset Management
Net revenues$2,433 $2,721 
Expenses1,907 2,023 
Adjusted operating earnings$526 $698 
Retirement & Protection Solutions
Net revenues$2,558 $2,311 
Expenses2,075 1,643 
Adjusted operating earnings$483 $668 
Corporate & Other
Net revenues$417 $350 
Expenses623 569 
Adjusted operating loss$(206)$(219)
See our Results of Operations by Segment for the nine months ended September 30, 2023 and 2022 for a table of segment pretax adjusted operating impacts on our revenues and expenses attributable to unlocking.
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Advice & Wealth Management
The following table presents the changes in wrap account assets and average balances for the nine months ended September 30:
20232022
(in billions)
Beginning balance$412.1 $464.7 
Net flows17.3 21.3 
Market appreciation (depreciation) and other14.7 (100.8)
Ending balance$444.1 $385.2 
Advisory wrap account assets ending balance (1)
$439.3 $381.1 
Average advisory wrap account assets (2)
$435.6 $426.4 
(1) Advisory wrap account assets represent those assets for which clients receive advisory services and are the primary driver of revenue earned on wrap accounts. Clients may hold non-advisory investments in their wrap accounts that do not incur an advisory fee.
(2) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period excluding the most recent month for the nine months ended September 30, 2023 and 2022.
Ending wrap account assets increased $32.0 billion, or 8%, to $444.1 billion during the nine months ended September 30, 2023 due to market appreciation and other of $14.7 billion and net inflows of $17.3 billion. Average advisory wrap account assets increased $9.2 billion, or 2%, compared to the prior year period primarily reflecting net inflows.
The following table presents the results of operations of our Advice & Wealth Management segment on an adjusted operating basis:
Nine Months Ended September 30,Change
20232022
(in millions)
Revenues
Management and financial advice fees$4,077 $4,017 $60 1 %
Distribution fees1,714 1,650 64 4 
Net investment income1,409 417 992 NM
Other revenues200 171 29 17
Total revenues7,400 6,255 1,145 18 
Banking and deposit interest expense385 20 365 NM
Total net revenues7,015 6,235 780 13 
Expenses
Distribution expenses3,622 3,566 56 2 
Interest and debt expense19 8 11 NM
General and administrative expense1,221 1,134 87 8 
Total expenses4,862 4,708 154 3 
Adjusted operating earnings$2,153 $1,527 $626 41 %
NM  Not Meaningful.
Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $626 million, or 41%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher short-term interest rates and growth in bank cash deposits and certificate products along with the cumulative impact of client net flows, partially offset by market depreciation. Pretax adjusted operating margin was 30.7% for the for the nine months ended September 30, 2023 compared to 24.5% for the prior year period.
Net Revenues
Management and financial advice fees increased $60 million, or 1%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher average wrap account assets. Average advisory wrap account assets increased $9.2 billion, or 2%, compared to the prior year period primarily reflecting net inflows.
Distribution fees increased $64 million, or 4%, for the nine months ended September 30, 2023 compared to the prior year period reflecting $88 million of higher fees on off-balance sheet brokerage cash, primarily due to an increase in short-term interest rates.
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Net investment income, which excludes net realized investment gains or losses, increased $992 million, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher average invested assets due to increased bank and certificate deposits and the favorable impact of increased short-term interest rates, including higher investment yields on the investment portfolio supporting the bank and certificate products.
Banking and deposit interest expense increased $365 million for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher average crediting rates and higher average volumes on certificates and bank cash deposits.
Expenses
Distribution expenses increased $56 million, or 2%, for the nine months ended September 30, 2023 compared to the prior year period reflecting higher asset-based advisor compensation from higher average wrap account assets and increased investments in recruiting experienced advisors.
Interest and debt expense increased $11 million for the nine months ended September 30, 2023 compared to the prior year period due to the increase in capital supporting the growth in the bank and certificate products.
General and administrative expense increased $87 million, or 8%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to a $20 million accrual for a regulatory matter relating to electronic communication recordkeeping requirements, higher volume related expenses and investments for business growth.
Asset Management
The following table presents global managed assets by type:
Average (1)
Change
As of September 30,ChangeNine Months Ended September 30,
2023202220232022
(in billions)
Equity$299.1 $278.5 $20.6 7 %$310.3 $341.4 $(31.1)(9)%
Fixed income214.9 194.6 20.3 10 220.7 239.3 (18.6)(8)
Money market22.7 21.3 1.4 7 22.6 15.6 7.0 45 
Alternative33.6 35.2 (1.6)(5)34.8 38.4 (3.6)(9)
Hybrid and other16.9 16.9 — — 17.2 20.5 (3.3)(16)
Total managed assets$587.2 $546.5 $40.7 7 %$605.6 $655.2 $(49.6)(8)%
(1) Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
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The following table presents the changes in global managed assets:

Nine Months Ended September 30,
20232022
(in billions)
Global Retail Funds
Beginning assets$309.3 $409.4 
Inflows34.9 49.1 
Outflows(47.9)(64.6)
Net VP/VIT fund flows(3.7)(3.1)
Net new flows (1)
(16.7)(18.6)
Reinvested dividends3.4 5.7 
Net flows(13.3)(12.9)
Distributions(4.1)(6.5)
Market appreciation (depreciation) and other17.5 (84.2)
Foreign currency translation (2)
0.8 (9.6)
Total ending assets310.2 296.2 
Global Institutional
Beginning assets274.7 344.7 
Inflows (3)
32.9 43.8 
Outflows (3)
(31.6)(37.0)
Net flows (1)
1.3 6.8 
Market appreciation (depreciation) and other (4)
(0.1)(75.9)
Foreign currency translation (2)
1.1 (25.3)
Total ending assets277.0 250.3 
Total managed assets$587.2 $546.5 
Total net flows$(12.0)$(6.1)
Legacy insurance partners net flows (5)
$(3.1)$(2.9)
(1) First quarter 2022 net flows included $2.5 billion of retail and $0.1 billion of institutional net flows from the U.S. asset transfer in connection with our acquisition of the BMO Global Asset Management (EMEA) business.
(2) Amounts represent local currency to US dollar translation for reporting purposes.
(3) Global Institutional inflows and outflows include net flows from our structured annuity product and Ameriprise Bank.
(4) Included in Market appreciation (depreciation) and other for Global Institutional is the change in affiliated general account balance, excluding net flows related to our structured variable annuity product and Ameriprise Bank.
(5) Legacy insurance partners assets and net flows are included in the rollforwards above.
Total segment AUM increased $3.2 billion, or 1%, during the nine months ended September 30, 2023 primarily due to equity market appreciation. Net outflows were $12.0 billion for the nine months ended September 30, 2023, a decrease of $5.9 billion compared to the prior year period.
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The following table presents the results of operations of our Asset Management segment on an adjusted operating basis:
Nine Months Ended September 30,Change
20232022
(in millions)
Revenues
Management and financial advice fees$2,110 $2,398 $(288)(12)%
Distribution fees272 307 (35)(11)
Net investment income29 6 23 NM
Other revenues22 10 12 NM
Total revenues2,433 2,721 (288)(11)
Banking and deposit interest expense— — — —
Total net revenues2,433 2,721 (288)(11)
Expenses
Distribution expenses697 767 (70)(9)
Amortization of deferred acquisition costs4 8 (4)(50)
Interest and debt expense5 3 2 67
General and administrative expense1,201 1,245 (44)(4)
Total expenses1,907 2,023 (116)(6)
Adjusted operating earnings$526 $698 $(172)(25)%
NM  Not Meaningful.
Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, decreased $172 million, or 25%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact of net outflows, fixed income market depreciation, and lower performance fees.
Net Revenues
Management and financial advice fees decreased $288 million, or 12%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows, fixed income market depreciation, and a decrease in performance fees of $47 million.
Distribution fees decreased $35 million, or 11%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows.
Net investment income increased $23 million, for the nine months ended September 30, 2023 compared to the prior year period primarily driven by higher interest rates.
Expenses
Distribution expenses decreased $70 million, or 9%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows.
General and administrative expense decreased $44 million, or 4%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting lower performance fee related compensation and disciplined expense management.
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Retirement & Protection Solutions
The following table presents the results of operations of our Retirement & Protection Solutions segment on an adjusted operating basis:
Nine Months Ended September 30,Change
20232022
(in millions)
Revenues
Management and financial advice fees$554 $604 $(50)(8)%
Distribution fees298 320 (22)(7)
Net investment income613 389 224 58 
Premiums, policy and contract charges1,086 988 98 10 
Other revenues7 10 (3)(30)
Total revenues2,558 2,311 247 11 
Banking and deposit interest expense— — — — 
Total net revenues2,558 2,311 247 11 
Expenses
Distribution expenses347 346 1 — 
Interest credited to fixed accounts276 289 (13)(4)
Benefits, claims, losses and settlement expenses518 330 188 57 
Remeasurement (gains) losses of future policy benefit reserves(17)(5)(12)NM
Change in fair value of market risk benefits497 249 248 NM
Amortization of deferred acquisition costs172 176 (4)(2)
Interest and debt expense37 28 9 32 
General and administrative expense245 230 15 7 
Total expenses2,075 1,643 432 26 
Adjusted operating earnings$483 $668 $(185)(28)%
NM  Not Meaningful.
Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts decreased $185 million, or 28%, for the nine months ended September 30, 2023 compared to the prior year period.
Net Revenues
Management and financial advice fees decreased $50 million, or 8%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to the cumulative impact from net outflows and market depreciation.
Distribution fees decreased $22 million, or 7%, for the nine months ended September 30, 2023 compared to the prior year period due to the cumulative impact from net outflows and market depreciation.
Net investment income, which excludes net realized investment gains or losses, increased $224 million, or 58%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher interest rates, investment portfolio repositioning resulting in higher yields and increased SVA balances.
Premiums, policy and contract charges increased $98 million, or 10%, for the nine months ended September 30, 2023 compared to the prior year period primarily due to higher sales of life contingent payout annuities.
Expenses
Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, increased $188 million, or 57%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the impact of higher sales of life contingent payout annuities and increased volume in SVAs.
Change in fair value of market risk benefits, which exclude the market impact on variable annuity guaranteed benefits (net of hedges), increased $248 million, for the nine months ended September 30, 2023 compared to the prior year period reflecting market depreciation on contractual fees and the impact of unlocking. The unlocking impact for nine months ended September 30, 2023 was an expense of $128 million primarily reflecting the lower surrender assumptions on variable annuities with living benefits compared to a
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benefit of $139 million for the prior year period primarily reflecting the impact of interest rate assumptions, partially offset by lower surrender assumptions and updated mortality assumptions for variable annuities with living benefits.
General and administrative expense increased $15 million, or 7%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting higher one-time related expenses, timing, and a modest increase in core expenses.
Corporate & Other
The following table presents the results of operations of our Corporate & Other segment on an adjusted operating basis:
Nine Months Ended September 30,Change
20232022
(in millions)
Revenues
Distribution fees$1 $— $1 — %
Net investment income198 107 91 85 
Premiums, policy and contract charges72 73 (1)(1)
Other revenues159 172 (13)(8)
Total revenues430 352 78 22 
Banking and deposit interest expense13 2 11 NM
Total net revenues417 350 67 19 
Expenses
Distribution expenses(7)(6)(1)(17)
Interest credited to fixed accounts177 182 (5)(3)
Benefits, claims, losses and settlement expenses175 184 (9)(5)
Remeasurement (gains) losses of future policy benefit reserves— (1)1 NM
Amortization of deferred acquisition costs9 6 3 50 
Interest and debt expense75 48 27 56 
General and administrative expense194 156 38 24 
Total expenses623 569 54 9 
Adjusted operating loss$(206)$(219)$13 6 %
NM  Not Meaningful.
Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed index annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss decreased $13 million, or 6%, for the nine months ended September 30, 2023 compared to the prior year period.
LTC insurance had a pretax adjusted operating earnings of $19 million for the nine months ended September 30, 2023 compared to a pretax adjusted operating loss of $11 million for the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions compared to the prior year period.
FA business had a pretax adjusted operating loss of $22 million for the nine months ended September 30, 2023 compared to a pretax adjusted operating loss of $15 million for the prior year period.
Net Revenues
Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax operating lossCIEs, increased $21$91 million, or 8%85%, for the nine months ended September 30, 2023 compared to $292the prior year period primarily reflecting the benefit of investment portfolio repositioning and higher interest rates on cash positions.
Expenses
Interest and debt expense increased $27 million, or 56%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the issuance of $750 million of unsecured senior notes in March 2023.
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General and administrative expense, which excludes integration and restructuring charges, increased $38 million, or 24%, for the nine months ended September 30, 2023 compared to the prior year period primarily reflecting the unfavorable mark-to-market impact on share-based compensation expense and increased severance expense related to our expense management initiatives.
Fair Value Measurements
We report certain assets and liabilities at fair value; specifically, separate account assets, derivatives, market risk benefits, embedded derivatives, and most investments and cash equivalents. Fair value assumes the exchange of assets or liabilities occurs in orderly transactions and is not the result of a forced liquidation or distressed sale. We include actual market prices, or observable inputs, in our fair value measurements to the extent available. Broker quotes are obtained when quotes from pricing services are not available. We validate prices obtained from third parties through a variety of means such as: price variance analysis, subsequent sales testing, stale price review, price comparison across pricing vendors and due diligence reviews of vendors. See Note 13 to the Consolidated Financial Statements for additional information on our fair value measurements.
Fair Value of Liabilities and Nonperformance Risk
Companies are required to measure the fair value of liabilities at the price that would be received to transfer the liability to a market participant (an exit price). Since there is not a market for our obligations of our market risk benefits, fixed deferred indexed annuities, structured variable annuities, and IUL insurance, we consider the assumptions participants in a hypothetical market would make to reflect an exit price. As a result, we adjust the valuation of market risk benefits, fixed deferred indexed annuities, structured variable annuities, and IUL insurance by updating certain contractholder assumptions, adding explicit margins to provide for risk, and adjusting the rates used to discount expected cash flows to reflect a current market estimate of our nonperformance risk. The nonperformance risk adjustment is based on observable market data adjusted to estimate the risk of our life insurance company subsidiaries not fulfilling these liabilities. Consistent with general market conditions, this estimate resulted in a spread over the U.S. Treasury curve as of September 30, 2023. As our estimate of this spread widens or tightens, the liability will decrease or increase, respectively. If this nonperformance credit spread moves to a zero spread over the U.S. Treasury curve, the reduction to total equity would be approximately $812 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on September 30, 2023 credit spreads.
Liquidity and Capital Resources
Overview
As of both September 30, 2023 and December 31, 2022, we had Available Capital for Capital Adequacy of $5.2 billion. Available Capital for Capital Adequacy best reflects the available capital resources of our core operations.
We maintained substantial liquidity during the nine months ended September 30, 2023. As of both September 30, 2023 and December 31, 2022, we had $7.0 billion in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.
As of September 30, 2023 and December 31, 2022, the parent company had $728 million and $389 million, respectively, in cash, cash equivalents, and unencumbered liquid securities. Liquid securities predominantly include U.S. government agency mortgage backed securities. Additional sources of liquidity at the parent company include a line of credit with an affiliate up to $727 million and an unsecured revolving committed credit facility for up to $1.0 billion that expires in June 2026. Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of September 30, 2023 was $1.9 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.
Under the terms of the committed credit facility, we can increase the availability to $1.25 billion upon satisfaction of certain approval requirements. Available borrowings under this facility are reduced by any outstanding letters of credit. At September 30, 2023, we had no outstanding borrowings under this credit facility and had $1 million of letters of credit issued against the facility. Our credit facility contains various administrative, reporting, legal and financial covenants. We remained in compliance with all such covenants at September 30, 2023.
In addition, we have access to collateralized borrowings, which may include repurchase agreements, Federal Home Loan Bank (“FHLB”) advances, and advances at the Federal Reserve. Our subsidiaries, RiverSource Life Insurance Company (“RiverSource Life”), and Ameriprise Bank, FSB are members of the FHLB of Des Moines, which provides access to collateralized borrowings. As of September 30, 2023 and December 31, 2022, we had $8.1 billion and $8.0 billion, respectively, of estimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both September 30, 2023 and December 31, 2022, and is collateralized with commercial mortgage backed securities. In addition, Ameriprise Bank, FSB maintains access to borrowings from the Federal Reserve which are collateralized with residential mortgage backed securities, commercial mortgage backed securities and corporate debt securities. As of September 30, 2023 and December 31, 2022, we estimated $11.8 billion and $9.0 billion, respectively, of borrowing capacity from the Federal Reserve in addition to the FHLB capacity and there were no outstanding obligations.
There have been no material changes to our contractual obligations disclosed in our 2022 10-K.
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We issued $750 million of 5.15% unsecured senior notes on March 9, 2023. We repaid $750 million principal amount of our 4.0% senior notes at maturity on October 16, 2023. See Note 12 to our Consolidated Financial Statements for further information about our long-term debt maturities, including $550 million maturing within the 2024 calendar year.
We believe cash flows from operating activities, available cash balances, our availability of internal and external borrowings, access to debt markets, and dividends from our subsidiaries will be sufficient to fund our short-term and long-term operating liquidity needs and stress requirements.
On August 16, 2022, federal legislation commonly referred to as the Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax (“CAMT”) and the share repurchase excise tax. Both the CAMT and share repurchase tax are effective beginning in 2023. We are an applicable corporation required to compute CAMT; however, based on current estimates, we do not believe we will be liable for the CAMT in 2023 and therefore have not recorded a liability. We are a covered corporation subject to the 1% excise tax on the net shares repurchased. As the Internal Revenue Service issues additional guidance related to the IRA, we will continue to evaluate any impact to our consolidated financial statements.
Dividends from Subsidiaries
Ameriprise Financial is primarily a parent holding company for the operations carried out by our wholly-owned subsidiaries. Because of our holding company structure, our ability to meet our cash requirements, including the payment of dividends on our common stock, substantially depends upon the receipt of dividends or return of capital from our subsidiaries, particularly our life insurance subsidiary, RiverSource Life, our face-amount certificate subsidiary, Ameriprise Certificate Company (“ACC”), AMPF Holding, LLC, which is the parent company of our retail introducing broker-dealer subsidiary, Ameriprise Financial Services, LLC (“AFS”) and our clearing broker-dealer subsidiary, American Enterprise Investment Services, Inc. (“AEIS”), our transfer agent subsidiary, Columbia Management Investment Services Corp., our investment advisory company, Columbia Management Investment Advisers, LLC, TAM UK International Holdings Ltd, which includes 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 CapitalRegulatory Capital Requirements
September 30, 2023December 31, 2022September 30, 2023December 31, 2022
(in millions)
RiverSource Life (1)
$2,842 $3,103 N/A$571 
RiverSource Life of NY (1)
222 320 N/A40 
ACC (3)(4)
720 534 $672 496 
TAM UK International Holdings Ltd (5)
328 437 211 214 
Ameriprise Bank, FSB (6)
1,719 1,542 1,141 999 
AFS (2)(3)
204 90 ##
Ameriprise Captive Insurance Company (2)
39 38 13 10 
Ameriprise Trust Company (2)
60 54 41 38 
AEIS (2)(3)
152 208 28 26 
RiverSource Distributors, Inc. (2)(3)
13 12 ##
Columbia Management Investment Distributors, Inc. (2)(3)
17 17 ##
Columbia Threadneedle Investments UK International Ltd. (5)
333 330 154 152 
N/A Not applicable as only required to be calculated annually.
#  Amounts are less than $1 million.
(1) Actual capital is determined on a statutory basis. Regulatory capital requirement is the company action level and is based on the statutory risk-based capital filing.
(2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of September 30, 2023 and December 31, 2022.
(3) Actual capital is determined on an adjusted GAAP basis.
(4) ACC is required to hold capital in compliance with the Minnesota Department of Commerce and SEC capital requirements.
(5) Actual capital and regulatory capital requirements are determined in accordance with U.K. regulatory legislation.
(6) Actual capital and regulatory capital requirements are determined in accordance with rules defined under Basel III capital framework. As permitted, AOCI is excluded from the calculation of regulatory capital.
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In October 2023, the Federal Reserve Board issued its final rule establishing a consolidated capital framework termed the “Building Block Approach” for savings and loan holding companies like Ameriprise Financial that are significantly engaged in insurance activities. The rule is effective January 1, 2024, with reporting beginning in 2025.
In addition to the particular regulations restricting dividend payments and establishing subsidiary capitalization requirements, we take into account the overall health of the business, capital levels and risk management considerations in determining a strategy for payments to our parent holding company from our subsidiaries, and in deciding to use cash to make capital contributions to our subsidiaries.
During the nine months ended September 30, 2023, the parent holding company received cash dividends or a return of capital from its subsidiaries of $2.3 billion (including $500 million from RiverSource Life and $1.1 billion from AMPF Holding, LLC) and contributed cash to its subsidiaries of $277 million. During the nine months ended September 30, 2022, the parent holding company received cash dividends or a return of capital from its subsidiaries of $2.2 billion (including $600 million from RiverSource Life) and contributed cash to its subsidiaries of $512 million (including $375 million to Ameriprise Bank, FSB).
In 2009, RiverSource Life established an agreement to protect its exposure to Genworth Life Insurance Company (“GLIC”) for its reinsured LTC. In 2016, substantial enhancements to this reinsurance protection agreement were finalized. The terms of these confidential provisions within the agreement have been shared, in the normal course of regular reviews, with our domiciliary regulator and rating agencies. GLIC is domiciled in Delaware, so in the event GLIC was subjected to rehabilitation or insolvency proceedings, such proceedings would be located in (and governed by) Delaware laws. Delaware courts have a long tradition of respecting commercial and reinsurance affairs as well as contracts among sophisticated parties. Similar credit protections to what we have with GLIC have been tested and respected in Delaware and elsewhere in the United States, and as a result we believe our credit protections would be respected even in the unlikely event that GLIC becomes subject to rehabilitation or insolvency proceedings in Delaware. Accordingly, while no credit protections are perfect, we believe the correct way to think about the risks represented by our counterparty credit exposure to GLIC is not the full amount of the gross liability that GLIC reinsures, but a much smaller net exposure to GLIC (if any that might exist after taking into account our credit protections). Thus, management believes that our agreement and offsetting non-LTC legacy arrangements with Genworth Financial, Inc. will enable RiverSource Life to recover on all net exposure in all material respects in the event of a rehabilitation or insolvency of GLIC.
Dividends Paid to Shareholders and Share Repurchases
We paid regular quarterly dividends to our shareholders totaling $427 million and $416 million for the nine months ended September 30, 20172023 and 2022, respectively. On October 25, 2023, we announced a quarterly dividend of $1.35 per common share. The dividend will be paid on November 17, 2023 to our shareholders of record at the close of business on November 6, 2023.
In January 2022, our Board of Directors authorized us to repurchase up to $3.0 billion for the repurchase of our common stock through March 31, 2024. On July 24, 2023, our Board of Directors authorized an additional $3.5 billion for the repurchase of our common stock through September 30, 2025. As of September 30, 2023, we had $3.6 billion remaining under these share repurchase authorizations. We intend to fund share repurchases through existing excess capital, future free cash flow generation and other customary financing methods. The share repurchase program does not require the purchase of any minimum number of shares, and depending on market conditions and other factors, these purchases may be commenced or suspended at any time without prior notice. Acquisitions under the share repurchase program may be made in the open market, through privately negotiated transactions or block trades or other means. During the nine months ended September 30, 2023, we repurchased a total of 4.7 million shares of our common stock at an average price of $325.53 per share.
Cash Flows
Cash flows of CIEs and restricted and segregated cash and cash equivalents are reflected in our cash flows provided by (used in) operating activities, investing activities and financing activities. Cash held by CIEs is not available for general use by Ameriprise Financial, nor is Ameriprise Financial cash available for general use by its CIEs. Cash and cash equivalents segregated under federal and other regulations is held for the exclusive benefit of our brokerage customers and is not available for general use by Ameriprise Financial.
Operating Activities
Net cash provided by operating activities decreased $648 million to $2.5 billion for the nine months ended September 30, 2023 compared to $271 million$3.2 billion for the prior year period primarily reflecting higher income taxes paid and decreases in brokerage deposits, partially offset by higher investment income on fixed maturity securities. The higher investment income is driven by higher yields and the growth in Ameriprise Bank customer deposits and certificate business growth.
Investing Activities
Our investing activities primarily relate to our Available-for-Sale investment portfolio and in recent quarters is significantly affected by the net flows of our face amount certificates and bank deposit activity.
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Net cash used in investing activities decreased $1.9 billion to $7.3 billion for the nine months ended September 30, 2023 compared to $9.2 billion for the prior year period primarily reflecting a $811 million increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities, a $442 million decrease in net cash outflows related to investments of consolidated investment income, an increaseentities, a $254 million decrease in general and administrative expense and LTC loss recognition of $57 millionnet cash outflows for the third quarter of 2017, partially offset by LTC loss recognition of $31 million in the prior year periodwritten options with deferred premiums and a $29$258 million increasedecrease in LTC reserves in the prior year period from a correction relatedcash used for purchases of Available-for-Sale securities.
Financing Activities
Net cash provided by financing activities decreased $2.2 billion to our claim utilization assumption.

AMERIPRISE FINANCIAL, INC. 

Net investment income decreased $15 million, or 16%, to $79 million$4.0 billion for the nine months ended September 30, 20172023 compared to $94 million$6.2 billion for the prior year period primarily due to higher amortization relating to an increase in low income housing investments and the impact of interest allocation between subsidiaries.
Distribution expenses increased $32 million toreflecting a benefit of $7 million for the nine months ended September 30, 2017 compared to a benefit of $39 million for the prior year period. Distribution expenses for the prior year period included a $27 million benefit related to the write-off of the deferred reinsurance liability in connection with loss recognition on LTC insurance products.
Benefits, claims, losses and settlement expenses increased $20 million, or 9%, to $239 million for the nine months ended September 30, 2017 compared to $219 million for the prior year period primarily due to a $57 million expense from loss recognition on LTC insurance products$4.5 billion decrease in the third quarter of 2017,change in banking deposits, net, partially offset by a $29 million$2.4 billion increase in LTC reservesnet cash flows from investment certificates.
Forward-Looking Statements
This report contains forward-looking statements that reflect management’s plans, estimates and beliefs. Actual results could differ materially from those described in these forward-looking statements. Examples of such forward-looking statements include: 
•statements of the Company’s plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, acquisition integration, benefits and claims expenses, general and administrative costs, consolidated tax rate, return of capital to shareholders, debt repayment and excess capital position and financial flexibility to capture additional growth opportunities;
•statements about the expected trend in the prior year periodshift to lower-risk products, including the exit from variable annuities with living benefit riders;
•statements about the strategic and regulatory outcomes from the withdrawal of our application to convert Ameriprise Bank to a correction relatedstate-chartered bank and national trust bank;
•statements about the anticipated deposit growth or statements about rising interest rates and the impacts on investment portfolio yield;
•other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets; and
•statements of assumptions underlying such statements.
The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on track,” “project,” “continue,” “able to remain,” “resume,” “deliver,” “develop,” “evolve,” “drive,” “enable,” “flexibility,” “scenario,” “case”, “appear”, “expand” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.
Such factors include, but are not limited to:
•market fluctuations and general economic and political factors, including volatility in the U.S. and global market conditions, client behavior and volatility in the markets for our products;
•changes in interest rates;
•adverse capital and credit market conditions or any downgrade in our credit ratings;
•effects of competition and our larger competitors’ economies of scale;
•declines in our investment management performance;
•our ability to compete in attracting and retaining talent, including financial advisors;
•impairment, negative performance or default by financial institutions or other counterparties;
•the ability to maintain our unaffiliated third-party distribution channels and the impacts of sales of unaffiliated products;
•changes in valuation of securities and investments included in our assets;
•the determination of the amount of allowances taken on loans and investments;
•the illiquidity of our investments;
•effects of the elimination of LIBOR on, and value of, securities and other assets and liabilities tied to LIBOR;
•failures by other insurers that lead to higher assessments we owe to state insurance guaranty funds;
•failures or defaults by counterparties to our claim utilization assumption. The LTC loss recognitionreinsurance arrangements;
•inadequate reserves for future policy benefits and claims or for future redemptions and maturities;
•deviations from our assumptions regarding morbidity, mortality and persistency affecting our insurance profitability;
•changes to our reputation arising from employee or advisor misconduct or otherwise;
•direct or indirect effects of or responses to climate change;
•interruptions or other failures in the third quarterour operating systems and networks, including errors or failures caused by third-party service providers, interference or third-party attacks;
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•interruptions or other errors in our telecommunications or data processing systems;
•    identification and mitigation of 2017 was primarily duerisk exposure in market environments, new products, vendors and other types of risk;
•    ability of our subsidiaries to unfavorable morbidity experience, partially offset by premium increases.transfer funds to us to pay dividends;
Amortization of DAC decreased $63 million compared to the prior year period reflecting the write-off of DAC•    changes in the third quarter of 2016exchange 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 loss recognitionintegration 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 LTC insurance products.these forward-looking statements, which speak only as of the date on which they are made. Management undertakes no obligation to update publicly or revise any forward-looking statements. The foregoing list of factors should be read in conjunction with the “Risk Factors” discussion included in Part I, Item 1A of our 2022 10-K.
GeneralAmeriprise Financial announces financial and administrative expense increased $17 million, or 9%,other information to $202 million forinvestors through the nine months ended September 30, 2017 compared to $185 million for the prior year period primarily due to higher performance-based compensationCompany’s investor relations website at ir.ameriprise.com, as well as SEC filings, press releases, public conference calls and a $9 million expense related to the renegotiation of a vendor arrangement, partially offset by a $14 million expensewebcasts. Investors and others interested in the prior year periodcompany 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 resolution of a legacy legal matter related toevent new materials are posted. The information found on the hedge fund business.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
MarketFair Value Measurements
We report certain assets and liabilities at fair value; specifically, separate account assets, derivatives, market risk benefits, embedded derivatives, and most investments and cash equivalents. Fair value assumes the exchange of assets or liabilities occurs in orderly transactions and is not the result of a forced liquidation or distressed sale. We include actual market prices, or observable inputs, in our fair value measurements to the extent available. Broker quotes are obtained when quotes from pricing services are not available. We validate prices obtained from third parties through a variety of means such as: price variance analysis, subsequent sales testing, stale price review, price comparison across pricing vendors and due diligence reviews of vendors. See Note 13 to the Consolidated Financial Statements for additional information on our fair value measurements.
Fair Value of Liabilities and Nonperformance Risk
Our primaryCompanies are required to measure the fair value of liabilities at the price that would be received to transfer the liability to a market participant (an exit price). Since there is not a market for our obligations of our market risk 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 ourbenefits, fixed deferred indexed annuities, fixed insurance, brokerage client cash balances, face-amount certificate products and the fixed portion of ourstructured variable annuities, and variableIUL insurance, contracts,we consider the valueassumptions participants in a hypothetical market would make to reflect an exit price. As a result, we adjust the valuation of DAC and DSIC assets, the value of liabilities for guaranteedmarket risk benefits, associated with ourfixed deferred indexed annuities, structured variable annuities, and the value of derivatives heldIUL insurance by updating certain contractholder assumptions, adding explicit margins to hedge these benefits.
Our earnings from fixed deferred annuities, fixed insurance,provide for risk, and the fixed portion of variable annuities and variable insurance contracts are based upon the spread between rates earned on assets held andadjusting 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 low interest rate environment, our current reinvestment yields are generally lower than the current portfolio yield. We expect our portfolio income yields to continue to decline in future periods if interest rates remain 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 September 30, 2019 due to prepayment, maturity or call activity at the option of the issuer, excluding securities with a make-whole provision, were $4.9 billion and 4.4%, respectively, as of September 30, 2017. In addition, residential mortgage-backed securities, which are subject to prepayment risk as a result of the low interest rate environment, totaled $6.8 billion and had a weighted average yield of 2.7% as of September 30, 2017. While these amounts represent investments that could be subject to reinvestment risk, it is also possible that these investments will be used to fund liabilities or may not be prepaid and will remain invested at their current yields. In addition to the interest rate environment, the mix of benefit payments versus product sales as well as the timing and volumes associated with such mix may impact our investment yield. Furthermore, reinvestment activities and the associated investment yield may also be impacted by corporate strategies implemented at management’s discretion. The average yield for investment purchases during the nine months ended September 30, 2017 was approximately 2.8%.
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 also has the following variable annuity guarantee benefits: guaranteed minimum withdrawal benefits (“GMWB”), guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum

AMERIPRISE FINANCIAL, INC. 

death benefits (“GMDB”) and guaranteed minimum income benefits (“GMIB”). Each of these guaranteed 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 index options across the term structure, interest rate swaps and swaptions, total return swaps and futures to manage the risk exposures. The exposures are measured and monitored daily, and adjustments to the hedge portfolio are made as necessary.
We have a macro hedge program to provide protection against the statutory tail scenario risk arising from variable annuity reserves on our statutory surplus and to cover some of the residual risks not covered by other hedging activities. We assess the residual risk under a range of scenarios in creating and executing the macro hedge program. As a means of economically hedging these risks, we use a combination of futures, options, interest rate swaptions and/or swaps. 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 annuity riders, equity indexed annuities, stock market certificates, indexed universal life insurance and the associated hedge assets, we assume no change in implied market volatility despite the 10% drop in equity prices.
The following tables present our estimate of the impact on pretax income from the above defined hypothetical market movements as of September 30, 2017:
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)
 $(261) $6
 $(255)
DAC and DSIC amortization (2) (3)
 (129) —
 (129)
Variable annuity riders:  
  
  
GMDB and GMIB (3)
 (29) —
 (29)
GMWB (3) (4)
 (379) 233
 (146)
GMAB (25) 26
 1
DAC and DSIC amortization (4)
 N/A
 N/A
 (3)
Total variable annuity riders (433) 259
 (177)
Macro hedge program (5)
 —
 43
 43
Equity indexed annuities 1
 (1) —
Certificates 3
 (3) —
Indexed universal life insurance 66
 (49) 17
Total $(753) $255
 $(501)

AMERIPRISE FINANCIAL, INC. 

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)
 $(50) $—
 $(50)
Variable annuity riders:  
  
  
GMDB and GMIB —
 —
 —
GMWB 983
 (1,089) (106)
GMAB 21
 (23) (2)
DAC and DSIC amortization (4)
 N/A
 N/A
 18
Total variable annuity riders 1,004
 (1,112) (90)
Macro hedge program (5)
 —
 (2) (2)
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products 99
 —
 99
Brokerage client cash balances 115
 —
 115
Certificates —
 —
 —
Indexed universal life insurance 93
 2
 95
Total $1,261
 $(1,112) $167
N/A  Not Applicable.
(1) Excludes incentive income which is impacted by market and fund performance during the period and cannot be readily estimated.
(2) Market impact on DAC and DSIC amortization resulting from lower projected profits.
(3) In estimating the impact on DAC and DSIC amortization resulting from lower projected profits, we have not changed our assumed equity asset growth rates. This is a significantly more conservative estimate than if we assumed management follows its mean reversion guideline and increased near-term rates to recover the drop in equity values over a five-year period. We make this same conservative assumption in estimating the impact from GMDB and GMIB riders and the life contingent benefits associated with GMWB.
(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.
The above results compare to an estimated negative net impact to pretax income of $490 million related to a 10% equity price decline and an estimated positive net impact to pretax income of $297 million related to a 100 basis point increase in interest rates as of December 31, 2016. The change in interest rate exposure from December 31, 2016 is primarily the result of changes in market conditions.
Net impacts shown in the above table from GMWB and GMAB 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 increasedexpected cash flows to reflect a current market estimate of our nonperformance risk. The nonperformance risk of nonperformance specific to these liabilities. Our hedgingadjustment is based on observable market data adjusted to estimate the risk of our determinationlife insurance company subsidiaries not fulfilling these liabilities. Consistent with general market conditions, this estimate resulted in a spread over the U.S. Treasury curve as of September 30, 2023. As our estimate of this spread widens or tightens, the liability will decrease or increase, respectively. If this nonperformance credit spread moves to a zero spread over the U.S. Treasury curve, the reduction to total equity would be approximately $812 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on September 30, 2023 credit spreads.
Liquidity and Capital Resources
Overview
As of both September 30, 2023 and December 31, 2022, we had Available Capital for Capital Adequacy of $5.2 billion. Available Capital for Capital Adequacy best reflects the available capital resources of our core operations.
We maintained substantial liquidity during the nine months ended September 30, 2023. As of both September 30, 2023 and December 31, 2022, we had $7.0 billion in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.
As of September 30, 2023 and December 31, 2022, the parent company had $728 million and $389 million, respectively, in cash, cash equivalents, and unencumbered liquid securities. Liquid securities predominantly include U.S. government agency mortgage backed securities. Additional sources of liquidity at the parent company include a line of credit with an affiliate up to $727 million and an unsecured revolving committed credit facility for up to $1.0 billion that expires in June 2026. Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of September 30, 2023 was $1.9 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.
Under the terms of the committed credit facility, we can increase the availability to $1.25 billion upon satisfaction of certain approval requirements. Available borrowings under this facility are reduced by any outstanding letters of credit. At September 30, 2023, we had no outstanding borrowings under this credit facility and had $1 million of letters of credit issued against the facility. Our credit facility contains various administrative, reporting, legal and financial covenants. We remained in compliance with all such covenants at September 30, 2023.
In addition, we have access to collateralized borrowings, which may include repurchase agreements, Federal Home Loan Bank (“FHLB”) advances, and advances at the Federal Reserve. Our subsidiaries, RiverSource Life Insurance Company (“RiverSource Life”), and Ameriprise Bank, FSB are members of the FHLB of Des Moines, which provides access to collateralized borrowings. As of September 30, 2023 and December 31, 2022, we had $8.1 billion and $8.0 billion, respectively, of estimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both September 30, 2023 and December 31, 2022, and is collateralized with commercial mortgage backed securities. In addition, Ameriprise Bank, FSB maintains access to borrowings from the Federal Reserve which are collateralized with residential mortgage backed securities, commercial mortgage backed securities and corporate debt securities. As of September 30, 2023 and December 31, 2022, we estimated $11.8 billion and $9.0 billion, respectively, of borrowing capacity from the Federal Reserve in addition to the FHLB capacity and there were no outstanding obligations.
There have been no material changes to our contractual obligations disclosed in our 2022 10-K.
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We issued $750 million of 5.15% unsecured senior notes on March 9, 2023. We repaid $750 million principal amount of our 4.0% senior notes at maturity on October 16, 2023. See Note 12 to our Consolidated Financial Statements for further information about our long-term debt maturities, including $550 million maturing within the 2024 calendar year.
We believe cash flows from operating activities, available cash balances, our availability of internal and external borrowings, access to debt markets, and dividends from our subsidiaries will be sufficient to fund our short-term and long-term operating liquidity needs and stress requirements.
On August 16, 2022, federal legislation commonly referred to as the Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax (“CAMT”) and the share repurchase excise tax. Both the CAMT and share repurchase tax are effective beginning in 2023. We are an applicable corporation required to compute CAMT; however, based on current estimates, we do not believe we will be liable for the CAMT in 2023 and therefore have not recorded a liability. We are a covered corporation subject to the 1% excise tax on the net shares repurchased. As the Internal Revenue Service issues additional guidance related to the IRA, we will continue to evaluate any impact to our consolidated financial statements.
Dividends from Subsidiaries
Ameriprise Financial is primarily a parent holding company for the operations carried out by our wholly-owned subsidiaries. Because of our holding company structure, our ability to meet our cash requirements, including the payment of dividends on our common stock, substantially depends upon the receipt of dividends or return of capital from our subsidiaries, particularly our life insurance subsidiary, RiverSource Life, our face-amount certificate subsidiary, Ameriprise Certificate Company (“ACC”), AMPF Holding, LLC, which is the parent company of our retail introducing broker-dealer subsidiary, Ameriprise Financial Services, LLC (“AFS”) and our clearing broker-dealer subsidiary, American Enterprise Investment Services, Inc. (“AEIS”), our transfer agent subsidiary, Columbia Management Investment Services Corp., our investment advisory company, Columbia Management Investment Advisers, LLC, TAM UK International Holdings Ltd, which includes 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 CapitalRegulatory Capital Requirements
September 30, 2023December 31, 2022September 30, 2023December 31, 2022
(in millions)
RiverSource Life (1)
$2,842 $3,103 N/A$571 
RiverSource Life of NY (1)
222 320 N/A40 
ACC (3)(4)
720 534 $672 496 
TAM UK International Holdings Ltd (5)
328 437 211 214 
Ameriprise Bank, FSB (6)
1,719 1,542 1,141 999 
AFS (2)(3)
204 90 ##
Ameriprise Captive Insurance Company (2)
39 38 13 10 
Ameriprise Trust Company (2)
60 54 41 38 
AEIS (2)(3)
152 208 28 26 
RiverSource Distributors, Inc. (2)(3)
13 12 ##
Columbia Management Investment Distributors, Inc. (2)(3)
17 17 ##
Columbia Threadneedle Investments UK International Ltd. (5)
333 330 154 152 
N/A Not applicable as only required to be calculated annually.
#  Amounts are less than $1 million.
(1) Actual capital is determined on a statutory basis. Regulatory capital requirement is the company action level and is based on the statutory risk-based capital filing.
(2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of September 30, 2023 and December 31, 2022.
(3) Actual capital is determined on an adjusted GAAP basis.
(4) ACC is required to hold capital in compliance with the Minnesota Department of Commerce and SEC capital requirements.
(5) Actual capital and regulatory capital requirements are determined in accordance with U.K. regulatory legislation.
(6) Actual capital and regulatory capital requirements are determined in accordance with rules defined under Basel III capital framework. As permitted, AOCI is excluded from the calculation of regulatory capital.
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In October 2023, the Federal Reserve Board issued its final rule establishing a consolidated capital framework termed the “Building Block Approach” for savings and loan holding companies like Ameriprise Financial that are significantly engaged in insurance activities. The rule is effective January 1, 2024, with reporting beginning in 2025.
In addition to the particular regulations restricting dividend payments and establishing subsidiary capitalization requirements, we take into account the overall health of the business, capital levels and risk which excludes certain itemsmanagement considerations in determining a strategy for payments to our parent holding company from our subsidiaries, and in deciding to use cash to make capital contributions to our subsidiaries.
During the nine months ended September 30, 2023, the parent holding company received cash dividends or a return of capital from its subsidiaries of $2.3 billion (including $500 million from RiverSource Life and $1.1 billion from AMPF Holding, LLC) and contributed cash to its subsidiaries of $277 million. During the nine months ended September 30, 2022, the parent holding company received cash dividends or a return of capital from its subsidiaries of $2.2 billion (including $600 million from RiverSource Life) and contributed cash to its subsidiaries of $512 million (including $375 million to Ameriprise Bank, FSB).
In 2009, RiverSource Life established an agreement to protect its exposure to Genworth Life Insurance Company (“GLIC”) for its reinsured LTC. In 2016, substantial enhancements to this reinsurance protection agreement were finalized. The terms of these confidential provisions within the agreement have been shared, in the normal course of regular reviews, with our domiciliary regulator and rating agencies. GLIC is domiciled in Delaware, so in the event GLIC was subjected to rehabilitation or insolvency proceedings, such proceedings would be located in (and governed by) Delaware laws. Delaware courts have a long tradition of respecting commercial and reinsurance affairs as well as contracts among sophisticated parties. Similar credit protections to what we have with GLIC have been tested and respected in Delaware and elsewhere in the United States, and as a result we believe our credit protections would be respected even in the unlikely event that GLIC becomes subject to rehabilitation or insolvency proceedings in Delaware. Accordingly, while no credit protections are perfect, we believe the correct way to think about the risks represented by our counterparty credit exposure to GLIC is not the full amount of the gross liability valuation includingthat GLIC reinsures, but a much smaller net exposure to GLIC (if any that might exist after taking into account our credit protections). Thus, management believes that our agreement and offsetting non-LTC legacy arrangements with Genworth Financial, Inc. will enable RiverSource Life to recover on all net exposure in all material respects in the nonperformance spread risk.event of a rehabilitation or insolvency of GLIC.
Dividends Paid to Shareholders and Share Repurchases
We paid regular quarterly dividends to our shareholders totaling $427 million and $416 million for the nine months ended September 30, 2023 and 2022, respectively. On October 25, 2023, we announced a quarterly dividend of $1.35 per common share. The dividend will be paid on November 17, 2023 to our shareholders of record at the close of business on November 6, 2023.
In January 2022, our Board of Directors authorized us to repurchase up to $3.0 billion for the repurchase of our common stock through March 31, 2024. On July 24, 2023, our Board of Directors authorized an additional $3.5 billion for the repurchase of our common stock through September 30, 2025. As of September 30, 2023, we had $3.6 billion remaining under these share repurchase authorizations. We intend to fund share repurchases through existing excess capital, future free cash flow generation and other customary financing methods. The share repurchase program does not require the purchase of any minimum number of shares, and depending on market conditions and other factors, these purchases may be commenced or suspended at any time without prior notice. Acquisitions under the share repurchase program may be made in the open market, through privately negotiated transactions or block trades or other means. During the nine months ended September 30, 2023, we repurchased a total of 4.7 million shares of our common stock at an average price of $325.53 per share.
Cash Flows
Cash flows of CIEs and restricted and segregated cash and cash equivalents are reflected in our cash flows provided by (used in) operating activities, investing activities and financing activities. Cash held by CIEs is not available for general use by Ameriprise Financial, nor is Ameriprise Financial cash available for general use by its CIEs. Cash and cash equivalents segregated under federal and other regulations is held for the exclusive benefit of our brokerage customers and is not available for general use by Ameriprise Financial.
Operating Activities
Net cash provided by operating activities decreased $648 million to $2.5 billion for the nine months ended September 30, 2023 compared to $3.2 billion for the prior year period primarily reflecting higher income taxes paid and decreases in brokerage deposits, partially offset by higher investment income on fixed maturity securities. The higher investment income is driven by higher yields and the growth in Ameriprise Bank customer deposits and certificate business growth.
Investing Activities
Our investing activities primarily relate to our Available-for-Sale investment portfolio and in recent quarters is significantly affected by the net flows of our face amount certificates and bank deposit activity.
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Net cash used in investing activities decreased $1.9 billion to $7.3 billion for the nine months ended September 30, 2023 compared to $9.2 billion for the prior year period primarily reflecting a $811 million increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities, a $442 million decrease in net cash outflows related to investments of consolidated investment entities, a $254 million decrease in net cash outflows for written options with deferred premiums and a $258 million decrease in cash used for purchases of Available-for-Sale securities.
Financing Activities
Net cash provided by financing activities decreased $2.2 billion to $4.0 billion for the nine months ended September 30, 2023 compared to $6.2 billion for the prior year period primarily reflecting a $4.5 billion decrease in the change in banking deposits, net, partially offset by a $2.4 billion increase in net cash flows from investment certificates.
Forward-Looking Statements
This report contains forward-looking statements that reflect management’s plans, estimates and beliefs. Actual results could differ materially from those illustrated abovedescribed in these forward-looking statements. Examples of such forward-looking statements include: 
•statements of the Company’s plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, acquisition integration, benefits and claims expenses, general and administrative costs, consolidated tax rate, return of capital to shareholders, debt repayment and excess capital position and financial flexibility to capture additional growth opportunities;
•statements about the expected trend in the shift to lower-risk products, including the exit from variable annuities with living benefit riders;
•statements about the strategic and regulatory outcomes from the withdrawal of our application to convert Ameriprise Bank to a state-chartered bank and national trust bank;
•statements about the anticipated deposit growth or statements about rising interest rates and the impacts on investment portfolio yield;
•other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets; and
•statements of assumptions underlying such statements.
The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on track,” “project,” “continue,” “able to remain,” “resume,” “deliver,” “develop,” “evolve,” “drive,” “enable,” “flexibility,” “scenario,” “case”, “appear”, “expand” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.
Such factors include, but are not limited to:
•market fluctuations and general economic and political factors, including volatility in the U.S. and global market conditions, client behavior and volatility in the markets for our products;
•changes in interest rates;
•adverse capital and credit market conditions or any downgrade in our credit ratings;
•effects of competition and our larger competitors’ economies of scale;
•declines in our investment management performance;
•our ability to compete in attracting and retaining talent, including financial advisors;
•impairment, negative performance or default by financial institutions or other counterparties;
•the ability to maintain our unaffiliated third-party distribution channels and the impacts of sales of unaffiliated products;
•changes in valuation of securities and investments included in our assets;
•the determination of the amount of allowances taken on loans and investments;
•the illiquidity of our investments;
•effects of the elimination of LIBOR on, and value of, securities and other assets and liabilities tied to LIBOR;
•failures by other insurers that lead to higher assessments we owe to state insurance guaranty funds;
•failures or defaults by counterparties to our reinsurance arrangements;
•inadequate reserves for future policy benefits and claims or for future redemptions and maturities;
•deviations from our assumptions regarding morbidity, mortality and persistency affecting our insurance profitability;
•changes to our reputation arising from employee or advisor misconduct or otherwise;
•direct or indirect effects of or responses to climate change;
•interruptions or other failures in our operating systems and networks, including errors or failures caused by third-party service providers, interference or third-party attacks;
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•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 based on a numbermade. Management undertakes no obligation to update publicly or revise any forward-looking statements. The foregoing list of estimatesfactors should be read in conjunction with the “Risk Factors” discussion included in Part I, Item 1A of our 2022 10-K.
Ameriprise Financial announces financial and assumptions. These include assuming that implied market volatility does not change when equity prices fall by 10%, that management does not increase assumed equity asset growth ratesother information to anticipate recovery ofinvestors through the drop in equity values when valuing DAC, DSIC and GMDB and GMIB liability values 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 actions management might take to increase revenues or reduce expenses in these scenarios.
The selection of a 100 basis point interest rate increaseCompany’s investor relations website at ir.ameriprise.com, as well as a 10% equity price decline shouldSEC 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 be construed as a prediction of future market events. Impacts of largerincorporated by reference into this report or smaller changes in interest ratesany other report or equity prices may not be proportional to those shown for a 100 basis point increase in interest ratesdocument the Company furnishes or a 10% decline in equity prices.files with the SEC.
ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Fair Value Measurements
We report certain assets and liabilities at fair value; specifically, separate account assets, derivatives, market risk benefits, embedded derivatives, properties held by our consolidated property funds, 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 1013 to the Consolidated Financial Statements for additional information on our fair value measurements.

AMERIPRISE FINANCIAL, INC. 

Fair Value of Liabilities and Nonperformance Risk
Companies are required to measure the fair value of liabilities at the price that would be received to transfer the liability to a market participant (an exit price). Since there is not a market for our obligations of our market risk benefits, fixed deferred indexed annuities, structured variable annuity ridersannuities, and indexed universal lifeIUL insurance, we consider the assumptions participants in a hypothetical market would make to reflect an exit price. As a result, we adjust the valuation of market risk benefits, fixed deferred indexed annuities, structured variable annuity ridersannuities, and indexed universal lifeIUL insurance by updating certain contractholder assumptions, adding explicit margins to provide for profit, risk, and expenses, 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 swapU.S. Treasury curve as of September 30, 2017.2023. As our estimate of this spread widens or tightens, the liability will decrease or increase.increase, respectively. If this nonperformance credit spread moves to a zero spread over the LIBOR swapU.S. Treasury curve, the reduction to net incometotal equity would be approximately $213$812 million, net of DAC, DSIC, unearned revenue amortization, the reinsurance accrual and income taxes (calculated at the statutory tax rate of 35%21%), based on September 30, 20172023 credit spreads.
Liquidity and Capital Resources
Overview
As of both September 30, 2023 and December 31, 2022, we had Available Capital for Capital Adequacy of $5.2 billion. Available Capital for Capital Adequacy best reflects the available capital resources of our core operations.
We maintained substantial liquidity during the nine months ended September 30, 2017. At2023. As of both September 30, 20172023 and December 31, 2016,2022, we had $2.4$7.0 billion and $2.3 billion, respectively, in cash and cash equivalents excluding CIEs. On October 12, 2017, we entered intoCIEs and other restricted cash on a consolidated basis.
As of September 30, 2023 and December 31, 2022, the parent company had $728 million and $389 million, respectively, in cash, cash equivalents, and unencumbered liquid securities. Liquid securities predominantly include U.S. government agency mortgage backed securities. Additional sources of liquidity at the parent company include a line of credit with an amendedaffiliate up to $727 million and restated credit agreement that provides for an unsecured revolving committed credit facility offor up to $750 million$1.0 billion that expires in October 2022. June 2026. Management’s estimate of liquidity available to the parent company in a volatile and uncertain economic environment as of September 30, 2023 was $1.9 billion which includes cash, cash equivalents, unencumbered liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.
Under the terms of the committed credit agreement for the facility, we maycan increase the amount of this facility upavailability to $1.0$1.25 billion upon satisfaction of certain approval requirements. This agreement replaced our unsecured revolving creditAvailable borrowings under this facility that was to expire in May 2020.are reduced by any outstanding letters of credit. At September 30, 2017,2023, we had no outstanding borrowings under this credit facility and had $1 million of outstanding letters of credit.credit issued against the facility. Our credit facility contains various administrative, reporting, legal and financial covenants. We wereremained in compliance with all such covenants at September 30, 2017.2023.
We enter into short-termIn addition, we have access to collateralized borrowings, which may include repurchase agreements, and Federal Home Loan Bank (“FHLB”) advances, to reduce reinvestment risk. Short-term borrowings allow us to receive cash to reinvest in longer-duration assets, while paying backand advances at the short-term debt with cash flows generated by the fixed income portfolio. The balance of repurchase agreements as of both September 30, 2017 and December 31, 2016 was $50 million, which is collateralized with agency residential mortgage backed securities and commercial mortgage backed securities from our investment portfolio.Federal Reserve. Our subsidiary,subsidiaries, RiverSource Life Insurance Company (“RiverSource Life”), is a memberand Ameriprise Bank, FSB are members of the FHLB of Des Moines, which provides access to collateralized borrowings. WeAs of September 30, 2023 and December 31, 2022, we had $151 million$8.1 billion and $150 million$8.0 billion, respectively, of borrowings fromestimated borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both September 30, 2023 and December 31, 2022, and is collateralized with commercial mortgage backed securities. In addition, Ameriprise Bank, FSB maintains access to borrowings from the Federal Reserve which are collateralized with residential mortgage backed securities, ascommercial mortgage backed securities and corporate debt securities. As of September 30, 20172023 and December 31, 2016, respectively. 2022, we estimated $11.8 billion and $9.0 billion, respectively, of borrowing capacity from the Federal Reserve in addition to the FHLB capacity and there were no outstanding obligations.
There have been no material changes to our contractual obligations disclosed in our 2022 10-K.
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We issued $750 million of 5.15% unsecured senior notes on March 9, 2023. We repaid $750 million principal amount of our 4.0% senior notes at maturity on October 16, 2023. See Note 12 to our Consolidated Financial Statements for further information about our long-term debt maturities, including $550 million maturing within the 2024 calendar year.
We believe cash flows from operating activities, available cash balances, and our availability of revolverinternal and external borrowings, access to debt markets, and dividends from our subsidiaries will be sufficient to fund our short-term and long-term operating liquidity needs.needs and stress requirements.
On August 16, 2022, federal legislation commonly referred to as the Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax (“CAMT”) and the share repurchase excise tax. Both the CAMT and share repurchase tax are effective beginning in 2023. We are an applicable corporation required to compute CAMT; however, based on current estimates, we do not believe we will be liable for the CAMT in 2023 and therefore have not recorded a liability. We are a covered corporation subject to the 1% excise tax on the net shares repurchased. As the Internal Revenue Service issues additional guidance related to the IRA, we will continue to evaluate any impact to our consolidated financial statements.
Dividends from Subsidiaries
Ameriprise Financial is primarily a parent holding company for the operations carried out by our wholly ownedwholly-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,LLC, which is the parent company of our retail introducing broker-dealer subsidiary, Ameriprise Financial Services, Inc.LLC (“AFSI”AFS”) and our clearing broker-dealer subsidiary, American Enterprise Investment Services, Inc. (“AEIS”), our Auto and Home insurance subsidiary, IDS Property Casualty Insurance Company (“IDS Property Casualty”), doing business as Ameriprise Auto & Home Insurance, our transfer agent subsidiary, Columbia Management Investment Services Corp., our investment advisory company, Columbia Management Investment Advisers, LLC, TAM UK International Holdings Ltd, which includes Ameriprise International Holdings GmbH within its organizational structure, and Columbia Threadneedle Asset Management Holdings Sàrl.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.

AMERIPRISE FINANCIAL, INC. 

Actual capital and regulatory capital requirements for our wholly owned subsidiaries subject to regulatory capital requirements were as follows:
Actual CapitalRegulatory Capital Requirements
September 30, 2023December 31, 2022September 30, 2023December 31, 2022
(in millions)
RiverSource Life (1)
$2,842 $3,103 N/A$571 
RiverSource Life of NY (1)
222 320 N/A40 
ACC (3)(4)
720 534 $672 496 
TAM UK International Holdings Ltd (5)
328 437 211 214 
Ameriprise Bank, FSB (6)
1,719 1,542 1,141 999 
AFS (2)(3)
204 90 ##
Ameriprise Captive Insurance Company (2)
39 38 13 10 
Ameriprise Trust Company (2)
60 54 41 38 
AEIS (2)(3)
152 208 28 26 
RiverSource Distributors, Inc. (2)(3)
13 12 ##
Columbia Management Investment Distributors, Inc. (2)(3)
17 17 ##
Columbia Threadneedle Investments UK International Ltd. (5)
333 330 154 152 
 Actual Capital Regulatory Capital 
Requirements
September 30, 2017 December 31, 2016September 30, 2017 December 31, 2016
 (in millions)
RiverSource Life(1)(2)
$2,737
 $3,052
 N/A
 $606
RiverSource Life of NY(1)(2)
306
 323
 N/A
 38
IDS Property Casualty(1)(3)
805
 800
 $216
 213
Ameriprise Insurance Company(1)(3)
48
 47
 3
 2
ACC(4)(5)
369
 335
 341
 317
Threadneedle Asset Management Holdings Sàrl(6)
424
 360
 169
 149
Ameriprise National Trust Bank(7)
23
 22
 10
 10
AFSI(3)(4)
126
 77
 #
 #
Ameriprise Captive Insurance Company(3)
54
 51
 10
 9
Ameriprise Trust Company(3)
30
 29
 26
 24
AEIS(3)(4)
115
 107
 21
 19
RiverSource Distributors, Inc.(3)(4)
13
 11
 #
 #
Columbia Management Investment Distributors, Inc.(3)(4)
17
 14
 #
 #
N/A  Not applicable.
#  Amounts are less than $1 million.
N/A Not applicable as only required to be calculated annually.
(1)
Actual capital is determined on a statutory basis.
(2)
Regulatory capital requirement is based on the statutory risk-based capital filing.
(3)
Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of September 30, 2017 and December 31, 2016.
(4)
Actual capital is determined on an adjusted GAAP basis.
(5)
#  Amounts are less than $1 million.
(1) Actual capital is determined on a statutory basis. Regulatory capital requirement is the company action level and is based on the statutory risk-based capital filing.
(2) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of September 30, 2023 and December 31, 2022.
(3) Actual capital is determined on an adjusted GAAP basis.
(4)ACC is required to hold capital in compliance with the Minnesota Department of Commerce and SEC capital requirements.
(6)
Actual capital and regulatory capital requirements are determined in accordance with U.K. regulatory legislation. The regulatory capital requirements at September 30, 2017 represent calculations at December 31, 2016 of the rule based requirements, as specified by FCA regulations.
(7)
Ameriprise National Trust Bank is required to maintain capital in compliance with the Office of the Comptroller of the Currency regulations and policies.
Our insurance companies’ statutory capital is calculated in accordance with the accounting practices prescribed or permitted by domiciliary state insurance regulators. RiverSource Life received approval from the Minnesota Department of Commerce to apply aand SEC capital requirements.
(5) Actual capital and regulatory capital requirements are determined in accordance with U.K. regulatory legislation.
(6) Actual capital and regulatory capital requirements are determined in accordance with rules defined under Basel III capital framework. As permitted, statutory accounting practice, effective July 1, 2017 through June 30, 2018, for certain derivative instruments used to economically hedge the interest rate exposure of certain variable annuity products that do not qualify for statutory hedge accounting. The permitted practiceAOCI is intended to mitigate the impact to statutory capitalexcluded from the misalignment between variable annuity statutory reserves, whichcalculation of regulatory capital.
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In October 2023, the Federal Reserve Board issued its final rule establishing a consolidated capital framework termed the “Building Block Approach” for savings and loan holding companies like Ameriprise Financial that are not carried at fair value, and the fair value of derivatives used to economically hedge the interest rate exposure of non-life contingent living benefit guarantees.significantly engaged in insurance activities. The permitted practice allows RiverSource Life to defer a portion of the changerule is effective January 1, 2024, with reporting beginning in fair value, net investment income and realized gains or losses generated from designated derivatives to the extent the amounts do not offset the current period interest-rate related change in the variable annuity statutory reserve liability. The deferred amount will be amortized over ten years using the straight-line method with the ability to accelerate amortization at management’s discretion. There was no immediate impact to statutory capital at the effective date for the permitted statutory accounting practice. As of September 30, 2017, application of this permitted practice resulted in a decrease to RiverSource Life’s statutory capital of approximately $21 million.2025.
In addition to the particular regulations restricting dividend payments and establishing subsidiary capitalization requirements, we take into account the overall health of the business, capital levels and risk management considerations in determining a dividend strategy for payments to our parent holding company from our subsidiaries, and in deciding to use cash to make capital contributions to our subsidiaries.
During the nine months ended September 30, 2017,2023, the parent holding company received cash dividends or a return of capital from its subsidiaries of $1.3$2.3 billion (including $700$500 million from RiverSource Life)Life and $1.1 billion from AMPF Holding, LLC) and contributed cash to its subsidiaries of $64$277 million. During the nine months ended September 30, 2016,2022, the parent holding company received cash dividends or a return of capital from its subsidiaries of $1.3$2.2 billion (including $800$600 million from RiverSource Life) and contributed cash to its subsidiaries of $135$512 million (including $75$375 million to IDS Property Casualty)Ameriprise Bank, FSB).

AMERIPRISE FINANCIAL, INC. 

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. ManagementGLIC is domiciled in Delaware, so in the event GLIC was subjected to rehabilitation or insolvency proceedings, such proceedings would be located in (and governed by) Delaware laws. Delaware courts have a long tradition of respecting commercial and reinsurance affairs as well as contracts among sophisticated parties. Similar credit protections to what we have with GLIC have been tested and respected in Delaware and elsewhere in the United States, and as a result we believe our credit protections would be respected even in the unlikely event that GLIC becomes subject to rehabilitation or insolvency proceedings in Delaware. Accordingly, while no credit protections are perfect, we believe the correct way to think about the risks represented by our counterparty credit exposure to GLIC is not the full amount of the gross liability that GLIC reinsures, but a much smaller net exposure to GLIC (if any that might exist after taking into account our credit protections). Thus, management believes that thisour agreement and offsetting non LTCnon-LTC legacy arrangements with Genworth Financial, Inc. will enable RiverSource Life to recover on all net exposure in all material respects in the event of ana rehabilitation or insolvency of GLIC.
Dividends Paid to Shareholders and Share Repurchases
We paid regular quarterly dividends to our shareholders totaling $379$427 million and $368$416 million for the nine months ended September 30, 20172023 and 2016,2022, respectively. On October 24, 2017,25, 2023, we announced a quarterly dividend of $0.83$1.35 per common share. The dividend will be paid on November 17, 20172023 to our shareholders of record at the close of business on November 6, 2017.2023.
In December 2015,January 2022, our Board of Directors authorized us to repurchase up to $2.5$3.0 billion for the repurchase of our common stock through DecemberMarch 31, 2017, which was exhausted in the third quarter 2017. In April 2017,2024. On July 24, 2023, our Board of Directors authorized us to repurchase up to an additional $2.5$3.5 billion for the repurchase of our common stock through JuneSeptember 30, 2019.2025. As of September 30, 2017,2023, we had $2.4$3.6 billion remaining under thisthese share repurchase authorization.authorizations. We intend to fund share repurchases through existing workingexcess capital, future earningsfree cash flow generation and other customary financing methods. The share repurchase programs doprogram 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 programsprogram may be made in the open market, through privately negotiated transactions or block trades or other means. During the nine months ended September 30, 2017,2023, we repurchased a total of 8.04.7 million shares of our common stock at an average price of $129.76$325.53 per share.
Cash Flows
Cash flows of CIEs and restricted and segregated cash and cash equivalents are reflected in our cash flows provided by (used in) operating activities, investing activities and financing activities. Cash held by CIEs is not available for general use by Ameriprise Financial, nor is Ameriprise Financial cash available for general use by its CIEs. Cash and cash equivalents segregated under federal and other regulations is held for the exclusive benefit of our brokerage customers and is not available for general use by Ameriprise Financial.
Operating Activities
Net cash provided by operating activities decreased $843$648 million to $1.2$2.5 billion for the nine months ended September 30, 20172023 compared to $2.0$3.2 billion for the prior year period primarily due to a $186 million increase inreflecting higher income taxes paid a $148 million decreaseand decreases in cash from changesbrokerage deposits, partially offset by higher investment income on fixed maturity securities. The higher investment income is driven by higher yields and the growth in other investments (primarily trading securities),Ameriprise Bank customer deposits and net cash outflows related to derivatives for the nine months ended September 30, 2017 compared to net cash inflows for the prior year period.certificate business growth.
Investing Activities
Our investing activities primarily relate to our Available-for-Sale investment portfolio. Further, this activityportfolio and in recent quarters is significantly affected by the net flows of our investment certificate, fixed annuityface amount certificates and universal life products reflected in financing activities.bank deposit activity.
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Net cash used in investing activities decreased $261 million$1.9 billion to $106 million$7.3 billion for the nine months ended September 30, 20172023 compared to $367 million$9.2 billion for the prior year period primarily duereflecting a $811 million increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities, a $442 million decrease in net cash outflows related to investments of consolidated investment entities, a $944$254 million decrease in net cash outflows for written options with deferred premiums and a $258 million decrease in cash used for purchases of Available-for-Sale securities and a $204 million increase in proceeds from maturities, sinking fund payments and calls of Available-for-Sale securities, partially offset by a $357 million decrease in proceeds from sales, maturities and repayments of mortgage loans reflecting the sale of a portion of our consumer loans in 2016 and a $242 million decrease in net cash related to changes in investments of CIEs.securities.
Financing Activities
Net cash used inprovided by financing activities increased $713 milliondecreased $2.2 billion to $1.3$4.0 billion for the nine months ended September 30, 20172023 compared to $573 million$6.2 billion for the prior year period primarily due to the issuance of $500 million of long-term debt in 2016 andreflecting a $371 million$4.5 billion decrease in the change in banking deposits, net, cash inflows related to investment certificates, partially offset by a $246 million decrease$2.4 billion increase in repayments of long-term debt.net cash flows from investment certificates.
Contractual Commitments
There have been no material changes to our contractual obligations disclosed in our 2016 10-K. 
Off-Balance Sheet Arrangements
We provide asset management services to investment entities which are considered to be VIEs, such as CLOs, hedge funds, property funds and private equity funds, which are sponsored by us. We consolidate certain CLOs. We have determined that consolidation is not required for hedge funds, property funds and private equity funds, which are sponsored by us. Our maximum exposure to loss with respect to our investment in these non-consolidated entities is limited to our carrying value. We have no obligation to provide further financial or other support to these investment entities nor have we provided any support to these investment entities. See Note 3 to our Consolidated Financial Statements for additional information on our arrangements with these investment entities.

AMERIPRISE FINANCIAL, INC. 

Forward-Looking Statements
This report contains forward-looking statements that reflect management’s plans, estimates and beliefs. Actual results could differ materially from those described in these forward-looking statements. Examples of such forward-looking statements include: 
•statements of the Company’s plans, intentions, positioning, expectations, objectives or goals, including those relating to asset flows, mass affluent and affluent client acquisition strategy, client retention and growth of our client base, financial advisor productivity, retention, recruiting and enrollments, the introduction, cessation, terms or pricing of new or existing products and services, acquisition integration, benefits and claims expenses, general and administrative costs, consolidated tax rate, return of capital to shareholders, debt repayment and excess capital position and financial flexibility to capture additional growth opportunities;
•statements about the expected trend in the shift to lower-risk products, including the exit from variable annuities with living benefit riders;
•statements about the strategic and regulatory outcomes from the withdrawal of our application to convert Ameriprise Bank to a state-chartered bank and national trust bank;
•statements about the anticipated deposit growth or statements about rising interest rates and the impacts on investment portfolio yield;
•other statements about future economic performance, the performance of equity markets and interest rate variations and the economic performance of the United States and of global markets; and
•statements of assumptions underlying such statements.
The words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” “forecast,” “on pace,track,” “project”“project,” “continue,” “able to remain,” “resume,” “deliver,” “develop,” “evolve,” “drive,” “enable,” “flexibility,” “scenario,” “case”, “appear”, “expand” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from such statements.
Such factors include, but are not limited to:
conditions•market fluctuations and general economic and political factors, including volatility in the interest rate, credit default, equityU.S. and global market conditions, client behavior and foreign exchange environments, including volatility in the markets for our products;
•changes in valuations, liquidityinterest rates;
•adverse capital and volatility;credit market conditions or any downgrade in our credit ratings;
changes in and the adoption of relevant accounting standards and securities rating agency standards and processes, as well as changes in the litigation and regulatory environment, including ongoing legal proceedings and regulatory actions, the frequency and extent of legal claims threatened or initiated by clients, other persons and regulators, and developments in regulation and legislation, including the rules and regulations implemented or that may be implemented or modified in connection with the Dodd-Frank Wall Street Reform and Consumer Protection Act or in light of the U.S. Department of Labor rule and exemptions pertaining to the fiduciary status of investment advice providers to 401(k) plans, plan sponsors, plan participants and the holders of individual retirement or health savings accounts;
investment management performance and distribution partner and consumer acceptance of the Company’s products;
•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 financial services industry, including pricing pressure,ability to maintain our unaffiliated third-party distribution channels and the introductionimpacts of new products and services and sales of unaffiliated products;
•changes in product distribution mixvaluation of securities and distribution channels;investments included in our assets;
changes to •the Company’s reputation that may arise from employee or advisor misconduct, legal or regulatory actions, perceptionsdetermination of the financial services industry generally, improper managementamount of conflictsallowances taken on loans and investments;
•the illiquidity of interest or otherwise;our investments;
•effects of the Company’s capital structure, including indebtedness, limitationselimination of LIBOR on, subsidiaries to pay dividends, and the extent, manner, terms and timingvalue of, any share or debt repurchases management may effect as well as the opinions of rating agenciessecurities and other analystsassets and the reactions of market participantsliabilities tied to LIBOR;
•failures by other insurers that lead to higher assessments we owe to state insurance guaranty funds;
•failures or the Company’s regulators, advisors, distribution partners or customers in response to any change or prospect of change in any such opinion;
changes to the availability and cost of liquidity and the Company’s credit capacity that may arise due to shifts in market conditions, the Company’s credit ratings and the overall availability of credit;
risks of default, capacity constraint or repricing by issuers or guarantors of investments the Company owns ordefaults by counterparties to hedge, derivative, insuranceour reinsurance arrangements;
•inadequate reserves for future policy benefits and claims or reinsurance arrangements or by manufacturers of products the Company distributes, experience for future redemptions and maturities;
•deviations from the Company’s assumptions regarding such risks, the evaluations or the prospect of changes in evaluations of any such third parties published by rating agencies or other analysts, and the reactions of other market participants or the Company’s regulators, advisors, distribution partners or customers in response to any such evaluation or prospect of changes in evaluation;
experience deviations from the Company’sour assumptions regarding morbidity, mortality and persistency in certain annuity andaffecting our insurance products,profitability;
•changes to our reputation arising from employee or from assumptions regarding market returns assumed in valuingadvisor misconduct or unlocking DAC and DSICotherwise;
•direct or market volatility underlying the Company’s valuation and hedgingindirect effects of guaranteed benefit annuity riders, or from assumptions regarding interest rates assumed in the Company's loss recognition testing of its long term care business, or from assumptions regarding anticipated claims and losses relatingresponses to the Company’s automobile and home insurance products;climate change;
changes in capital requirements that may be indicated, required or advised by regulators or rating agencies;
the impacts of the Company’s efforts to improve distribution economics and to grow third-party distribution of its products;
the ability to pursue and complete strategic transactions and initiatives, including acquisitions, divestitures, restructurings, joint ventures and the development of new products and services;
the ability to realize the financial, operating and business fundamental benefits of strategic transactions and initiatives the Company has completed, is pursuing or may pursue in the future, which may be impacted by the ability to obtain regulatory

AMERIPRISE FINANCIAL, INC. 

approvals, the ability to effectively manage related expenses and by market, business partner and consumer reactions to such strategic transactions and initiatives;
the ability and timing to realize savings and other benefits from re-engineering and tax planning;
•interruptions or other failures in the Company’s communications, technologyour operating systems and other operating systems,networks, including errors or failures caused by third-party service providers, interference or failures caused by third party attacks on the Company’s systems,third-party attacks;
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•interruptions or the failureother 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 safeguard the privacytransfer 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 confidentiality of sensitive informationman-made disasters and data on such systems; andcatastrophes;
general economic and political factors, including consumer confidence•    risks in the economy and the financial industry, the ability and inclination of consumers generally to invest as well as their ability and inclination to invest in financial instruments and products other than cash and cash equivalents, the costs of products and services the Company consumes in the conduct of its business, and applicable legislation and regulation and changes therein (acquisition transactions, such as the June 2016 UK referendum on membershipintegration 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 European Unionintellectual property of others; and
•changes in and the uncertain regulatory environment in the U.S. after the recent U.S. election), including tax laws, tax treaties, fiscal and central government treasury policy, and policies regarding the financial services industry and publicly-held firms, and regulatory rulings and pronouncements.
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 20162022 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 DiscussionMarket Risk
Our primary market risk exposures are interest rate, equity price, foreign currency exchange rate and Analysiscredit risk. Equity price and interest rate fluctuations can have a significant impact on our results of Financial Conditionoperations, primarily due to the effects they have on the asset management and Resultsother asset-based fees we earn, the spread income generated on our brokerage client cash balances, banking deposits, face-amount certificate products, fixed portion of Operations — our variable annuities and variable insurance contracts, fixed annuity and insurance contracts, the value of market risk benefits and other liabilities associated with our variable annuities and the value of derivatives held to hedge related benefits.
Market Risk” in this report is incorporated hereinrisk benefits continue to be managed by reference. These disclosures should be read in conjunctionutilizing a hedging program which attempts to match the sensitivity of the assets with the “Quantitativesensitivity of the benefits. 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 Qualitative Disclosures Aboutliabilities: Equity Market Risk” discussion includedLevel (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 Part II, Item 7Anecessary.
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 hedging instruments, we assume no change in implied market volatility despite the 10% drop in equity prices.
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The following tables present our estimate of the impact on pretax income from the above defined hypothetical market movements as of September 30, 2023 and December 31, 2022:
September 30, 2023
Equity Price Decline 10%Equity Price Exposure to Pretax Income
Before Hedge ImpactHedge ImpactNet Impact
 (in millions)
Asset-based management and distribution fees (1)
$(292)$2 $(290)
Variable annuity and structured variable annuity benefits:
Market risk benefits(936)688 (248)
Indexing feature for structured variable annuities692 (449)243 
Total variable annuity and structured variable annuity benefits(244)239 (5)
Certificates3 (3)— 
IUL insurance56 (53)3 
Total$(477)$185 $(292)(2)
Interest Rate Increase 100 Basis PointsInterest Rate Exposure to Pretax Income
Before Hedge ImpactHedge ImpactNet Impact
(in millions)
Asset-based management and distribution fees (1)
$(54)$— $(54)
Variable annuity and structured variable annuity benefits:   
Market risk benefits1,223 (841)382 
Indexing feature for structured variable annuities12 114 126 
Total variable annuity and structured variable annuity benefits1,235 (727)508 
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products46 — 46 
Banking deposits25 — 25 
Brokerage client cash balances50 — 50 
Certificates(9)— (9)
IUL insurance13 2 15 
Total$1,306 $(725)$581 
December 31, 2022
Equity Price Decline 10%Equity Price Exposure to Pretax Income
Before Hedge ImpactHedge ImpactNet Impact
 (in millions)
Asset-based management and distribution fees (1)
$(285)$2 $(283)
Variable annuity and structured variable annuity benefits:
Market risk benefits(870)648 (222)
Indexing feature for structured variable annuities494 (291)203 
Total variable annuity and structured variable annuity benefits(376)357 (19)
Certificates1 (1)— 
IUL insurance39 (21)18 
Total$(621)$337 $(284)(2)
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AMERIPRISE FINANCIAL, INC. 
Interest Rate Increase 100 Basis PointsInterest Rate Exposure to Pretax Income
Before Hedge ImpactHedge ImpactNet Impact
(in millions)
Asset-based management and distribution fees (1)
$(53)$— $(53)
Variable annuity and structured variable annuity benefits:   
Market risk benefits1,484 (1,028)456 
Indexing feature for structured variable annuities(29)82 53 
Total variable annuity and structured variable annuity benefits1,455 (946)509 
Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products25 — 25 
Banking deposits28 — 28 
Brokerage client cash balances146 — 146 
Certificates(9)— (9)
IUL insurance12 1 13 
Total$1,604 $(945)$659 
(1) Excludes incentive income which is impacted by market and fund performance during the period and cannot be readily estimated.
(2) Represents the net impact to pretax income. The estimated net impact to pretax adjusted operating income is $(290) million as of September 30, 2023 and $(283) million as of December 31, 2022, respectively.
Net impacts shown in the above tables from market risk benefits 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. Our hedging is based on our determination of economic risk, which excludes certain items in the liability valuation.
Actual results could and likely will differ materially from those illustrated above as fair values have a number of estimates and assumptions. For example, the illustration above includes 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 the above 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 will not be proportional to those shown for a 100 basis point increase in interest rates or a 10% decline in equity prices.
Asset-Based Management and Distribution Fees
We earn asset-based management fees and distribution fees on our assets under management. As of September 30, 2023, the value of our 2016 10-K filedassets under management was $1.0 trillion. These sources of revenue are subject to both interest rate and equity price risk since the value of these assets and the fees they earn fluctuate inversely with interest rates and directly with equity prices. We currently only hedge certain equity price risk for this exposure, primarily using futures and swaps. We currently do not hedge any of the interest rate risk for this exposure.
Market Risk Benefits
The total contract value of all variable annuities as of September 30, 2023 was $75.1 billion. See Note 11 for details of the reserves associated with market risk benefits. The changes in fair value of variable annuity market risk benefits are recorded through earnings, with the SECexception of the portion of the change in fair value due to a change in our nonperformance risk, which is recognized in other comprehensive income (loss). Fair value is calculated based on February 23, 2017.projected, discounted cash flows over the life of the contract, including projected, discounted benefits and fees.
Equity Price Risk 
The variable annuity guaranteed benefits guarantee payouts to the annuity holder under certain specific conditions regardless of the performance of the investment assets. For this reason, when equity prices decline, the returns from the separate account assets coupled with guaranteed benefit fees from annuity holders may not be sufficient to fund expected payouts. In that case, reserves must be increased with a negative impact to earnings.
The core derivative instruments with which we hedge the equity price of risk these benefits are longer dated put and call options; these core instruments are supplemented with equity futures and total return swaps. See Note 15 to our Consolidated Financial Statements for further information on our derivative instruments.
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Interest Rate Risk
Increases in interest rates reduce the fair value of the liabilities and may result in market risk benefits in an asset position. The interest rate exposure is hedged with a portfolio of interest rate swaps, futures and swaptions. We have entered into interest rate swaps according to risk exposures along maturities, thus creating both fixed rate payor and variable rate payor terms. If interest rates were to increase, we would have to pay more to the swap counterparty, and the fair value of our equity puts would decrease, resulting in a negative impact to our pretax income.
Structured Variable Annuities
Structured variable annuities offer the contractholder the ability to allocate account value to either an account that earns fixed interest (fixed account) or an account that is impacted by the performance of various equity indices (indexed account) subject to a cap, floor or buffer. Our earnings are based upon the spread between investment income earned and the credits made to the fixed account and benefits reflected in an indexed account of the structured variable annuities. As of September 30, 2023, we had $9.2 billion in liabilities related to structured variable annuities.
Equity Price Risk
The equity-linked return to contractholders creates equity price risk as the amount paid to contractholders depends on changes in equity prices. The equity price risk for structured variable annuities is evaluated together with the variable annuity riders as part of a hedge program using the derivative instruments consistent with our hedging on variable annuity riders.
Interest Rate Risk
The fair value of the embedded derivative associated with structured variable annuities is based on a discounted cash flow approach. Changes in interest rates impact the discounting of the embedded derivative liability. The spread between the investment income earned and amounts transferred to contractholders is also affected by changes in interest rates. These interest rate risks associated with structured variable annuities are not currently hedged.
Fixed Annuities, Fixed Insurance and Fixed Portion of Variable Annuities and Variable Insurance Contracts
Our earnings from fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts are based upon the spread between rates earned on assets held and the rates at which interest is credited to accounts. We primarily invest in fixed rate securities to fund the rate credited to clients. We guarantee an interest rate to the holders of these products. Investment assets and client liabilities generally differ as it relates to basis, repricing or maturity characteristics. Rates credited to clients’ accounts generally reset at shorter intervals than the yield on the underlying investments. Therefore, in an increasing interest rate environment, higher interest rates may be reflected in crediting rates to clients sooner than in rates earned on invested assets, which could result in a reduced spread between the two rates, reduced earned income and a negative impact on pretax income. While interest rates under the current environment have relieved some pressure from the liability guaranteed minimum interest rates (“GMIRs”), there are still some GMIRs above current levels. Hence, liability credited rates will move more slowly under a modest rise in interest rates while projected asset purchases would capture the full increase in interest rates. This dynamic would result in widening spreads under a modestly rising rate scenario given the current relationship between the current level of interest rates and the underlying GMIRs on the business. Of the $35.5 billion in Policyholder account balances, future policy benefits and claims as of September 30, 2023, $17.2 billion is related to liabilities created by these products. We do not hedge this exposure.
As a result of the current market environment, reinvestment yields are becoming more aligned with the current portfolio yield. We would expect the recent decline in our portfolio income yields to slow and begin to stabilize in future periods under the current environment. The carrying value and weighted average yield of non-structured fixed maturity securities and commercial mortgage loans that may generate proceeds to reinvest through September 25, 2025 due to prepayment, maturity or call activity at the option of the issuer, excluding securities with a make-whole provision, were $5.2 billion and 4.9%, respectively, as of September 30, 2023. In addition, residential mortgage backed securities, which can be subject to prepayment risk under a low interest rate environment, totaled $19.3 billion and had a weighted average yield of 4.3% as of September 30, 2023. While these amounts represent investments that could be subject to reinvestment risk, it is also possible that these investments will be used to fund liabilities or may not be prepaid and will remain invested at their current yields. In addition to the interest rate environment, the mix of benefit payments versus product sales as well as the timing and volumes associated with such mix may impact our investment yield. Furthermore, reinvestment activities and the associated investment yield may also be impacted by corporate strategies implemented at management’s discretion. The average yield for investment purchases during the nine months ended September 30, 2023 was approximately 5.7%.
The reinvestment of proceeds from maturities, calls and prepayments at rates near the current portfolio yield will have limited impact to future operating results. In this volatile rate environment, we assess reinvestment risk in our investment portfolio and monitor this risk in accordance with our asset/liability management framework. In addition, we may update the crediting rates on our fixed products when warranted, subject to guaranteed minimums.
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See Note 9 for more information on the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of GMIRs and the range of the difference between rates credited to policyholders and contractholders as of September 30, 2023 and December 31, 2022 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated.
Banking Deposits and Brokerage Client Cash Balances
We pay interest on banking deposits and certain brokerage client cash balances and have the ability to reset these rates from time to time based on prevailing economic and business conditions. We earn revenue to fund the interest paid from interest-earning assets or fees from off-balance sheet deposits at Federal Deposit Insurance Corporation insured institutions, which are indexed to short-term interest rates. In general, the change in interest paid lags the change in revenues earned.
Certificate Products
Fixed Rate Certificates
We have interest rate risk from our investment certificates generally ranging in amounts from $1 thousand to $2 million with interest crediting rate terms ranging from 3 to 36 months. We guarantee an interest rate to the holders of these products. Payments collected from clients are primarily invested in fixed income securities to fund the client credited rate with the spread between the rate earned from investments and the rate credited to clients recorded as earned income. Client liabilities and investment assets generally differ as it relates to basis, repricing or maturity characteristics. Rates credited to clients generally reset at shorter intervals than the yield on underlying investments. This exposure is not currently hedged although we monitor our investment strategy and make modifications based on our changing liabilities and the expected interest rate environment. Of the $36.1 billion in customer deposits as of September 30, 2023, $12.4 billion related to reserves for our fixed rate certificate products.
Stock Market Certificates
Stock market certificates are purchased for amounts generally from $1 thousand to $2 million for terms of 52 weeks, 104 weeks or 156 weeks, which can be extended to a maximum of 15 years depending on the term. For each term the certificate holder can choose to participate 100% in any percentage increase in the S&P 500® Index up to a maximum return or choose partial participation in any increase in the S&P 500® Index plus a fixed rate of interest guaranteed in advance. If partial participation is selected, the total of equity-linked return and guaranteed rate of interest cannot exceed the maximum return. Liabilities for our stock market certificates are included in Customer deposits. As of September 30, 2023, we had $203 million in reserves related to stock market certificates. The equity-linked return to investors creates equity price risk exposure. We seek to minimize this exposure with purchased futures and call spreads that replicate what we must credit to client accounts. This risk continues to be fully hedged. Stock market certificates have some interest rate risk as changes in interest rates affect the fair value of the payout to be made to the certificate holder. This risk is not currently hedged and was immaterial as of September 30, 2023.
Indexed Universal Life
IUL insurance is similar to UL in many regards, although the rate of credited interest above the minimum guarantee for funds allocated to an indexed account is linked to the performance of the specified index for the indexed account (subject to stated account parameters, which include a cap and floor, or a spread and floor). The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed account. As of September 30, 2023, we had $2.6 billion in liabilities related to the indexed accounts of IUL.
Equity Price Risk 
The equity-linked return to investors creates equity price risk as the amount credited depends on changes in equity prices. Most of the proceeds received from IUL insurance are invested in fixed income securities. To hedge the equity exposure, a portion of the investment earnings received from the fixed income securities is used to purchase call spreads which generate returns to replicate what we must credit to client accounts.
Interest Rate Risk 
As mentioned above, most of the proceeds received from IUL insurance are invested in fixed income securities with the return on those investments intended to fund the purchase of call spreads and options. There are two risks relating to interest rates. First, we have the risk that investment returns are such that we do not have enough investment income to purchase the needed call spreads. Second, in the event the policy is surrendered we pay out a book value surrender amount and there is a risk that we will incur a loss upon having to sell the fixed income securities backing the liability (if interest rates have risen). This risk is not currently hedged.
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Foreign Currency Risk
We have foreign currency risk through our net investment in foreign subsidiaries and our operations in foreign countries. We are primarily exposed to changes in British Pounds related to our net investment in Threadneedle, which was approximately $1.3 billion as of September 30, 2023. We also have exposure related to operations in foreign countries to Euros, Indian Rupees and other currencies. We monitor the foreign exchange rates that we have exposure to and enter into foreign currency forward contracts to mitigate risk when economically prudent. As of September 30, 2023, the notional value of outstanding contracts and our remaining foreign currency risk related to operations in foreign countries were not material.
Interest Rate Risk on External Debt
The stated interest rates on our $3.6 billion of senior unsecured notes are fixed.
Credit Risk
We are exposed to credit risk within our investment portfolio, including our loan portfolio, and through our derivative and reinsurance activities. Credit risk relates to the uncertainty of an obligor’s continued ability to make timely payments in accordance with the contractual terms of the financial instrument or contract. We consider our total potential credit exposure to each counterparty and its affiliates to ensure compliance with pre-established credit guidelines at the time we enter into a transaction which would potentially increase our credit risk. These guidelines and oversight of credit risk are managed through a comprehensive enterprise risk management program that includes members of senior management.
We manage the risk of credit-related losses in the event of nonperformance by counterparties by applying disciplined fundamental credit analysis and underwriting standards, prudently limiting exposures to lower-quality, higher-yielding investments, and diversifying exposures by issuer, industry, region and underlying investment type. We remain exposed to occasional adverse cyclical economic downturns during which default rates may be significantly higher than the long-term historical average used in pricing.
We manage our credit risk related to over-the-counter derivatives by entering into transactions with creditworthy counterparties, maintaining collateral arrangements and through the use of master netting arrangements that provide for a single net payment to be made by one counterparty to another at each due date and upon termination. Generally, our current credit exposure on over-the-counter derivative contracts is limited to a derivative counterparty’s net positive fair value of derivative contracts after taking into consideration the existence of netting arrangements and any collateral received. This exposure is monitored and managed to an acceptable threshold level.
The counterparty risk for centrally cleared over-the-counter derivatives is transferred to a central clearing party through contract novation. The central clearing party requires both daily settlement of mark-to-market and initial margin. Because the central clearing party monitors open positions and adjusts collateral requirements daily, we have minimal credit exposure from such derivative instruments.
Exchange-traded derivatives are effected through regulated exchanges that require contract standardization and initial margin to transact through the exchange. Because exchange-traded futures are marked to market and generally cash settled on a daily basis, we have minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivative instruments. Other exchange-traded derivatives would be exposed to nonperformance by counterparties for amounts in excess of initial margin requirements only if the exchange is unable to fulfill the contract.
We manage our credit risk related to reinsurance treaties by evaluating the financial condition of reinsurance counterparties prior to entering into new reinsurance treaties. In addition, we regularly evaluate their financial strength during the terms of the treaties. As of September 30, 2023, our largest reinsurance credit risks are related to coinsurance treaties with Global Atlantic Financial Group’s subsidiary Commonwealth Annuity and Life Insurance Company and with life insurance subsidiaries of Genworth Financial, Inc.
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.
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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 September 30, 2017.2023.
Changes in Internal Control over Financial Reporting
There have not been any changes into 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.

AMERIPRISE FINANCIAL, INC. 

PART II.  OTHER INFORMATION
ITEM 1.  LEGAL PROCEEDINGS
The information set forth in Note 1518 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 20162022 10-K.
ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES, AND USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES
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 third quarter of 2017:2023:
Period (a) (b) (c) (d)Period(a)(b)(c)(d)
Total Number
of Shares Purchased
Average Price
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)
Total Number
of Shares Purchased
Average Price
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)
July 1 to July 31, 2017
July 1 to July 31, 2023July 1 to July 31, 2023
Share repurchase program (1)
 622,117
 $136.67
 622,117
 $2,635,014,130
Share repurchase program (1)
261,064 $347.15 261,064 $3,993,247,664 
Employee transactions (2)
 432,319
 $143.36
 N/A
 N/A
Employee transactions (2)
65,652 $345.89 N/AN/A
August 1 to August 31, 2017
August 1 to August 31, 2023August 1 to August 31, 2023
Share repurchase program (1)
 842,580
 $142.26
 842,580
 $2,515,148,831
Share repurchase program (1)
608,198 $343.62 608,198 $3,784,261,622 
Employee transactions (2)
 276,391
 $145.67
 N/A
 N/A
Employee transactions (2)
61,644 $351.74 N/AN/A
September 1 to September 30, 2017
September 1 to September 30, 2023September 1 to September 30, 2023
Share repurchase program (1)
 910,991
 $140.48
 910,991
 $2,387,172,782
Share repurchase program (1)
641,884 $344.47 641,884 $3,563,149,952 
Employee transactions (2)
 74,414
 $143.50
 N/A
 N/A
Employee transactions (2)
6,648 $338.77 N/AN/A
TotalsTotalsTotals
Share repurchase program (1)
 2,375,688
 $140.11
 2,375,688
  
Share repurchase program (1)
1,511,146 $344.59 1,511,146  
Employee transactions (2)
 783,124
 $144.19
 N/A
  
Employee transactions (2)
133,944 $348.23 N/A 
 3,158,812
  
 2,375,688
  
 1,645,090  1,511,146  
N/A  Not applicable.
(1) On December 7, 2015, we announced that our Board of Directors authorized us to repurchase up to $2.5 billion of our common stock through December 31, 2017. On April 24, 2017, we announced thatIn January 2022, our Board of Directors authorized an additional expenditure of up to $2.5$3.0 billion for the repurchase of our common stock through JuneMarch 31, 2024. On July 24, 2023, our Board of Directors authorized an additional $3.5 billion for the repurchase of our common stock through September 30, 2019.2025. The share repurchase programs doprogram 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 programsprogram 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.

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ITEM 5. OTHER INFORMATION
During the three months ended September 30, 2023, no director or officer of the Company adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
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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.
ExhibitDescription
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 CurrentAnnual Report on Form 8-K,10-K, File No. 1-32525, filed on May 1, 2014)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).

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.
Third Amended and Restated Credit Agreement dated as of October 12, 2017 among Ameriprise Financial Inc., as Borrower, the lenders party thereto, Wells Fargo Bank, National Association as Administrative Agent, Swingline Lender and Issuing Lender, BankForm of America, N.A. and Citibank, N.A. as Co-Syndication Agents, Credit Suisse AG, Cayman Islands Branch, Goldman Sachs Bank USA, HSBC Bank USA, National Association, JPMorgan Chase Bank, N.A. and U.S. Bank National Association as Co-Documentation Agents, and Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith, Incorporated, and Citigroup Global Markets Inc., as Joint Lead Arrangers and Joint Bookrunners (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, File No. 1-32525, filed on October 16, 2017).Award Certificate - Restricted Stock Award
Ameriprise Financial Form of Award Certificate - Restricted Stock Unit Award
10.3†*
Ameriprise Financial Form of Award Certificate - Non-Qualified Stock Option Award
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*31.2*
Certification of Walter S. Berman pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
32*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*101The following materials from Ameriprise Financial, Inc.’s Quarterly Report on Form 10-Q for the period ended September 30, 2017,2023 are formatted in XBRL:iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Statements of Operations for the three months and nine months ended September 30, 20172023 and 2016;2022; (ii) Consolidated Statements of Comprehensive Income for the three months and nine months ended September 30, 20172023 and 2016;2022; (iii) Consolidated Balance Sheets at September 30, 20172023 and December 31, 2016;2022; (iv) Consolidated Statements of Equity for the three and nine months ended September 30, 20172023 and 2016;2022; (v) Consolidated Statements of Cash Flows for the nine months ended September 30, 20172023 and 2016;2022; and (vi) Notes to the Consolidated Financial Statements.
104The cover page from Ameriprise Financial, Inc.’s Quarterly Report on Form 10-Q for the period ended September 30, 2023 is formatted in iXBRL and contained in Exhibit 101.
* Filed electronically herewithin.
† Management contract or compensation plan or arrangement.





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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)

(Registrant)
Date:November 1, 20172, 2023ByBy:/s/ Walter S. Berman
Walter S. Berman
Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)

Date:November 1, 20172, 2023ByBy:/s/ David K. StewartDawn M. Brockman
David K. StewartDawn M. Brockman
Senior Vice President and Controller
(Principal Accounting Officer)


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