(unaudited) Fourth Quarter 2020 Statistical Supplement Package 1 of 50
Ameriprise Financial, Inc. Page Ameriprise Financial, Inc. Statistical Supplement Presentation............................................................................................................ 4 Consolidated GAAP Income Statements..................................................................................................... 5 Consolidated Adjusted Operating Results and Highlights............................................................................ 6 Common Share and Capital Summary........................................................................................................ 8 Segment Summary...................................................................................................................................... 10 Advice & Wealth Management Segment Segment Adjusted Operating Income Statements....................................................................................... 12 Segment Metrics......................................................................................................................................... 13 Asset Management Segment Segment Adjusted Operating Income Statements....................................................................................... 15 Segment Metrics......................................................................................................................................... 16 Global Asset Management Products........................................................................................................... 17 Retail Fund Performance - Columbia........................................................................................................... 18 Retail Fund Performance - Threadneedle.................................................................................................... 19 Retirement & Protection Solutions Segment Adjusted Operating Income Statements....................................................................................... 21 Segment Metrics......................................................................................................................................... 22 Corporate & Other Segment Segment Adjusted Operating Income Statements....................................................................................... 25 Eliminations Adjusted Operating Income Statements ..................................................................................................... 26 Balance Sheet and Ratings Information Consolidated Balance Sheets...................................................................................................................... 28 Capital and Ratings Information................................................................................................................... 29 Investments................................................................................................................................................. 30 Non-GAAP Financial Information…................................................................................................................. 31 Glossary of Selected Terminology Glossary of Selected Terminology - Segments............................................................................................ 32 Glossary of Selected Terminology............................................................................................................... 33 Exhibit A Disclosed Items........................................................................................................................................... 36 Exhibit B Corporate & Other Segment Details............................................................................................................ 42 Exhibit C Non-GAAP Financial Measure Reconciliations............................................................................................ 46 Exhibit D Revenue Detail by Product.......................................................................................................................... 49 Statistical Supplement Information Table of Contents 2 of 50
(unaudited) Fourth Quarter 2020 Statistical Supplement Package Consolidated Results 3 of 50
Adjusted operating earnings is the measure of segment profit or loss management uses to evaluate segment performance. Adjusted operating earnings should not be viewed as a substitute for GAAP income from continuing operations before income tax provision. Management believes 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. In addition, management uses net pretax adjusted operating margin in the Asset Management segment to evaluate segment performance on a basis comparable to other asset managers. In the Asset Management segment, adjusted operating revenues are adjusted to exclude distribution pass through revenues and subadvisory and other pass through revenues, and adjusted operating earnings are adjusted to exclude adjusted operating net investment income and amortization of intangibles. Ameriprise Financial, Inc. Statistical Supplement Presentation Fourth Quarter 2020 Ameriprise Financial, Inc. ("Ameriprise Financial" or "the Company") prepares its financial statements in accordance with generally accepted accounting principles ("GAAP"). Management believes that adjusted operating measures, which exclude net realized investment gains or losses, net of the related deferred sales inducement costs ("DSIC") and deferred acquisition costs ("DAC"), unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and universal life (“UL”) insurance contracts), net of hedges and the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; mean reversion related impacts (the impact on variable annuity and variable universal life (“VUL”) products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves); the market impact of hedges to offset interest rate 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 the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. Management uses these non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors. Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and for certain compensation-related matters. However, these measures are not a substitute for GAAP. Therefore, reconciliations to GAAP measures are provided on page 6, page 15 and in Exhibit C "Non-GAAP Financial Measure Reconciliations" on pages 46 and 47. 4 of 50
Ameriprise Financial, Inc. Consolidated GAAP Income Statements Fourth Quarter 2020 Prior Year Comparisons (in millions, except per share amounts, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Revenues Management and financial advice fees 1,862$ 1,770$ 1,702$ 1,893$ 2,003$ 7,015$ 7,368$ 141$ 8 % 353$ 5 % 110$ 6 % Distribution fees 469 464 375 400 422 1,919 1,661 (47) (10)% (258) (13)% 22 6 % Net investment income 342 328 305 300 318 1,463 1,251 (24) (7)% (212) (14)% 18 6 % Premiums, policy and contract charges 359 395 272 353 375 2,224 1,395 16 4 % (829) (37)% 22 6 % Other revenues 72 69 76 67 71 269 283 (1) (1)% 14 5 % 4 6 % Gain on disposal of business 213 - - - - 213 - (213) # (213) # - - Total revenues 3,317 3,026 2,730 3,013 3,189 13,103 11,958 (128) (4)% (1,145) (9)% 176 6 % Banking and deposit interest expense 30 25 18 10 6 136 59 (24) (80)% (77) (57)% (4) (40)% Total net revenues 3,287 3,001 2,712 3,003 3,183 12,967 11,899 (104) (3)% (1,068) (8)% 180 6 % Expenses Distribution expenses 991 995 940 1,028 1,096 3,810 4,059 105 11 % 249 7 % 68 7 % Interest credited to fixed accounts 152 91 262 170 121 669 644 (31) (20)% (25) (4)% (49) (29)% Benefits, claims, losses and settlement expenses 728 (1,747) 1,467 1,104 982 2,576 1,806 254 35 % (770) (30)% (122) (11)% Amortization of deferred acquisition costs (7) 512 (248) 85 (72) 179 277 (65) # 98 55 % (157) # Interest and debt expense 50 46 41 37 38 214 162 (12) (24)% (52) (24)% 1 3 % General and administrative expense 839 753 776 763 828 3,287 3,120 (11) (1)% (167) (5)% 65 9 % Total expenses 2,753 650 3,238 3,187 2,993 10,735 10,068 240 9 % (667) (6)% (194) (6)% 534 2,351 (526) (184) 190 2,232 1,831 (344) (64)% (401) (18)% 374 # Income tax provision 71 315 13 (44) 13 339 297 (58) (82)% (42) (12)% 57 # Net income 463$ 2,036$ (539)$ (140)$ 177$ 1,893$ 1,534$ (286)$ (62)% (359)$ (19)% 317$ # Net Investment Income Investment income on fixed maturities 332$ 322$ 290$ 275$ 274$ 1,378$ 1,161$ (58)$ (17)% (217)$ (16)% (1)$ - Realized investment gains (losses) (1) (2) (19) (3) 4 8 (8) (10) 10 # (2) (25)% 4 # Affordable housing (40) (14) (22) (14) (16) (98) (66) 24 60 % 32 33 % (2) (14)% Other (including seed money) 30 22 23 13 31 97 89 1 3 % (8) (8)% 18 # Consolidated investment entities 22 17 17 22 21 94 77 (1) (5)% (17) (18)% (1) (5)% Total net investment income 342$ 328$ 305$ 300$ 318$ 1,463$ 1,251$ (24)$ (7)% (212)$ (14)% 18$ 6 % Earnings Per Share Basic earnings per share 3.59$ 16.11$ (4.31)$ (1.14)$ 1.46$ 14.12$ 12.39$ (2.13)$ (59)% (1.73)$ (12)% 2.60$ # Earnings per diluted share (2) 3.53$ 15.88$ (4.31)$ (1.14)$ 1.43$ 13.92$ 12.20$ (2.10)$ (59)% (1.72)$ (12)% 2.57$ # Earnings per diluted share growth (6.1)% NM NM NM (59.5)% (2.0)% (12.4)% (53.4)% (12.4)% NM Weighted average common shares outstanding Basic weighted average common shares outstanding 129.0 126.4 125.0 123.0 120.9 134.1 123.8 (8.1) (6)% (10.3) (8)% (2.1) (2)% 2.3 1.8 1.2 1.9 2.5 1.9 1.9 0.2 9 % - - 0.6 32 % Diluted weighted average common shares outstanding 131.3 128.2 126.2 124.9 123.4 136.0 125.7 (7.9) (6)% (10.3) (8)% (1.5) (1)% Metrics Net revenue growth 3.4 % (3.8)% (16.4)% (9.5)% (3.2)% 1.0 % (8.2)% (6.6)% (9.2)% 6.3 % Pretax income margin 16.2 % 78.3 % (19.4)% (6.1)% 6.0 % 17.2 % 15.4 % (10.2)% (1.8)% 12.1 % Effective tax rate 13.2 % 13.4 % (2.4)% 23.5 % 6.5 % 15.2 % 16.2 % (6.7)% 1.0 % (17.0)% 45.04$ 53.37$ 52.50$ 49.81$ 48.89$ 45.04$ 48.89$ 3.85$ 9 % 3.85$ 9 % (0.92)$ (2)% 42.98$ 55.73$ 49.32$ 45.57$ 43.65$ 42.98$ 43.65$ 0.67$ 2 % 0.67$ 2 % (1.92)$ (4)% (1) Q1 2019 included a $5M impairment classified as restructuring costs related to the sale of Auto & Home. (2) In Q2 2020 and Q3 2020, the diluted shares used in this calculation represent basic shares due to the net loss. Using actual diluted shares would result in anti-dilution. (3) Calculated as total equity divided by common shares outstanding plus common stock equivalents outstanding at period end. (4) Calculated as total equity excluding AOCI divided by common shares outstanding plus common stock equivalents outstanding at period end. (5) See non-GAAP financial information on pg 31. Non-GAAP financial measure reconciliations can be found on pgs 46 and 47. NM Not Meaningful # Variance equal to or greater than 100%. Pretax income Total equity excluding AOCI / outstanding shares (4)(5) Effect of potentially dilutive nonqualified stock options and other share-based awards Total equity / outstanding shares (3) 5 of 50
Ameriprise Financial, Inc. Consolidated Adjusted Operating Results and Highlights Fourth Quarter 2020 Prior Year Comparisons (in millions except per share amounts, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Revenues Total net revenues 3,287$ 3,001$ 2,712$ 3,003$ 3,183$ 12,967$ 11,899$ (104)$ (3)% (1,068)$ (8)% 180$ 6 % Less net realized investment gains (losses) (1) (2) (20) (3) 4 8 (6) (11) 10 # (5) (83)% 4 # Less market impact on non-traditional long-duration products (1) 8 55 (66) 1 20 - 10 12 # 10 - 19 # Mean reversion related impacts (1) - (1) 1 - - - - - - - - - - Less market impact of hedges on investments 2 - - - - (35) - (2) # 35 # - - Less gain on disposal of business 213 - - - - 213 - (213) # (213) # - - Less integration/restructuring charges (2) - - - - - (3) - - - 3 # - - Less revenues attributable to the CIEs 21 16 15 21 19 88 71 (2) (10)% (17) (19)% (2) (10)% Adjusted operating total net revenues (3) 3,045$ 2,951$ 2,765$ 2,977$ 3,136$ 12,710$ 11,829$ 91$ 3 % (881)$ (7)% 159$ 5 % Earnings Net income 463$ 2,036$ (539)$ (140)$ 177$ 1,893$ 1,534$ (286)$ (62)% (359)$ (19)% 317$ # Less net realized investment gains (losses) (1)(4) (2) (20) (2) 4 8 (4) (10) 10 # (6) # 4 # Market impact on non-traditional long-duration products (1)(4) 358 (1,783) 1,113 431 614 591 375 256 72 % (216) (37)% 183 42 % Mean reversion related impacts (1)(4) (39) 61 (14) (17) (117) (57) (87) (78) # (30) (53)% (100) # Market impact of hedges on investments (4) (2) - - - - 35 - 2 # (35) # - - Less gain on disposal of business (4) 213 - - - - 213 - (213) # (213) # - - Integration/restructuring charges (2)(4) 6 1 2 1 - 17 4 (6) # (13) (76)% (1) # Less net income (loss) attributable to the CIEs 1 (2) - - 5 1 3 4 # 2 # 5 - Tax effect of adjustments (5) (23) 357 (231) (87) (102) (79) (63) (79) # 16 20 % (15) (17)% Adjusted operating earnings (3) 551$ 694$ 333$ 184$ 559$ 2,190$ 1,770$ 8$ 1 % (420)$ (19)% 375$ # Pretax Earnings Pretax income 534$ 2,351$ (526)$ (184)$ 190$ 2,232$ 1,831$ (344)$ (64)% (401)$ (18)% 374$ # Less net realized investment gains (losses) (1) (2) (20) (2) 4 8 (4) (10) 10 # (6) # 4 # Market impact on non-traditional long-duration products (1) 358 (1,783) 1,113 431 614 591 375 256 72 % (216) (37)% 183 42 % Mean reversion related impacts (1) (39) 61 (14) (17) (117) (57) (87) (78) # (30) (53)% (100) # Market impact of hedges on investments (2) - - - - 35 - 2 # (35) # - - Less gain on disposal of business (4) 213 - - - - 213 - (213) # (213) # - - Integration/restructuring charges (2) 6 1 2 1 - 17 4 (6) # (13) (76)% (1) # Less pretax income (loss) attributable to the CIEs 1 (2) - - 6 1 4 5 # 3 # 6 - Pretax adjusted operating earnings (3) 645$ 652$ 577$ 227$ 673$ 2,608$ 2,129$ 28$ 4 % (479)$ (18)% 446$ # Pretax Adjusted Operating Margin (3)(6) 21.2% 22.1% 20.9% 7.6% 21.5% 20.5% 18.0% 0.3 % (2.5)% 13.9 % Adjusted Operating Effective Tax Rate (3)(7) 14.6 % (6.4)% 42.3 % 18.9% 16.9 % 16.0% 16.9 % 2.3 % 0.9 % (2.0)% Weighted Average Common Shares Outstanding Basic 129.0 126.4 125.0 123.0 120.9 134.1 123.8 (8.1) (6)% (10.3) (8)% (2.1) (2)% Diluted 131.3 128.2 126.2 124.9 123.4 136.0 125.7 (7.9) (6)% (10.3) (8)% (1.5) (1)% Basic adjusted operating earnings per share 4.27$ 5.49$ 2.66$ 1.50$ 4.62$ 16.33$ 14.30$ 0.35$ 8 % (2.03)$ (12)% 3.12$ # Adjusted operating earnings per diluted share 4.20$ 5.41$ 2.64$ 1.47$ 4.53$ 16.10$ 14.08$ 0.33$ 8 % (2.02)$ (13)% 3.06$ # Return on Equity Return on equity excluding AOCI (3)(7) 33.1 % 59.5 % 41.7 % 30.6 % 26.1 % 33.1 % 26.1 % (7.0)% (7.0)% (4.5)% Adjusted operating return on equity excluding AOCI (3)(7) 38.3 % 39.7 % 35.6 % 29.6 % 30.2 % 38.3 % 30.2 % (8.1)% (8.1)% 0.6 % (1) (2) Q1 2019 included a $5M impairment classified as restructuring costs related to the sale of Auto & Home. (3) See non-GAAP financial information on pg 31. (4) Pretax adjusted operating adjustments. (5) Calculated using the statutory tax rate of 21%. (6) Defined as pretax adjusted operating earnings as a percentage of adjusted operating total net revenues. (7) Non-GAAP financial measure reconciliations can be found on pg 46 and 47. # Variance equal to or greater than 100%. Adjusted Operating Earnings Per Share (3) Adjusted operating adjustments for net realized investment gains (losses), market impact on non-traditional long-duration products, mean reversion related impacts are net of the following impacts, as applicable: hedges, DAC and DSIC amortization, unearned revenue amortization and the reinsurance accrual. 6 of 50
Ameriprise Financial, Inc. Consolidated Adjusted Operating Results and Highlights Fourth Quarter 2020 Prior Year Comparisons (in millions except per share amounts, headcount and where noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Book Value 45.03$ 53.36$ 52.46$ 49.77$ 48.87$ 45.03$ 48.87$ 3.84$ 9 % 3.84$ 9 % (0.90)$ (2)% 42.97$ 55.73$ 49.33$ 45.57$ 43.61$ 42.97$ 43.61$ 0.64$ 1 % 0.64$ 1 % (1.96)$ (4)% Adjusted operating earnings per diluted share growth: Target 12 - 15% 10.5 % 44.3 % (35.0)% (64.3)% 7.9 % 10.0 % (12.5)% (2.6)% (22.5)% 72.2 % Adjusted operating return on equity excluding AOCI: Target 30%+ (1) 38.3 % 39.7 % 35.6 % 29.6 % 30.2 % 38.3 % 30.2 % (8.1)% (8.1)% 0.6 % Total Ameriprise Financial long-term debt to total Ameriprise Financial capital (4) 35.1 % 25.9 % 30.4 % 31.8 % 32.5 % 35.1 % 32.5 % (2.6)% (2.6)% 0.7 % 1,990$ 1,967$ 1,967$ 1,977$ 1,992$ 1,990$ 1,992$ 2$ - 2$ - 15$ 1 % Assets Under Management and Administration Advice & Wealth Management AUM 315,201$ 273,072$ 314,820$ 336,966$ 376,811$ 315,201$ 376,811$ 61,610$ 20 % 61,610$ 20 % 39,845$ 12 % Asset Management AUM 494,181 426,163 476,121 498,004 546,613 494,181 546,613 52,432 11 % 52,432 11 % 48,609 10 % Corporate AUM 49 48 71 65 82 49 82 33 67 % 33 67 % 17 26 % Eliminations (31,358) (27,923) (31,928) (34,128) (37,483) (31,358) (37,483) (6,125) (20)% (6,125) (20)% (3,355) (10)% Total Assets Under Management 778,073 671,360 759,084 800,907 886,023 778,073 886,023 107,950 14 % 107,950 14 % 85,116 11 % Total Assets Under Administration 195,376 167,760 187,696 197,699 216,066 195,376 216,066 20,690 11 % 20,690 11 % 18,367 9 % Total AUM and AUA 973,449$ 839,120$ 946,780$ 998,606$ 1,102,089$ 973,449$ 1,102,089$ 128,640$ 13 % 128,640$ 13 % 103,483$ 10 % Business Metrics AWM total client assets 643,046$ 559,808$ 630,202$ 666,800$ 732,171$ 643,046$ 732,171$ 89,125$ 14 % 89,125$ 14 % 65,371$ 10 % Total financial advisors 9,871 9,878 9,894 9,905 9,922 9,871 9,922 51 1 % 51 1 % 17 - Net Flows and Net Deposits Advisor wrap 4,359$ 6,111$ 4,916$ 5,169$ 7,929$ 17,624$ 24,125$ 3,570$ 82 % 6,501$ 37 % 2,760$ 53 % Asset Management 3,348$ (2,359)$ 2,597$ (1,551)$ 6,984$ (7,087)$ 5,671$ 3,636$ # 12,758$ # 8,535$ # Annuities (5) (931)$ (906)$ (591)$ (600)$ (609)$ (3,849)$ (2,706)$ 322$ 35 % 1,143$ 30 % (9)$ (2)% Variable universal life / Universal life (52)$ (77)$ (69)$ (63)$ (40)$ (265)$ (249)$ 12$ 23 % 16$ 6 % 23$ 37 % S&P 500 Daily average 3,089 3,069 2,927 3,316 3,555 2,914 3,218 466 15 % 304 10 % 239 7 % Period end 3,231 2,585 3,100 3,363 3,756 3,231 3,756 525 16 % 525 16 % 393 12 % Weighted Equity Index (WEI) (6) Daily average 2,152 2,111 1,975 2,234 2,414 2,045 2,184 262 12 % 139 7 % 180 8 % Period end 2,247 1,753 2,099 2,255 2,573 2,247 2,573 326 15 % 326 15 % 318 14 % (1) (2) Calculated as total equity excluding CIEs divided by common shares outstanding plus common stock equivalents outstanding at period end. (3) Calculated as total equity excluding CIEs and AOCI divided by common shares outstanding plus common stock equivalents outstanding at period end. (4) The first quarter of 2020 does not include $500 million of debt issuance that settled on April 2, 2020. (5) Excludes payout annuities. (6) Weighted Equity Index is an Ameriprise calculated proxy for equity market movements calculated using a weighted average of the S&P 500, Russell 2000, Russell Midcap and MSCI EAFE indices based on North America distributed equity assets. # Variance equal to or greater than 100%. Adjusted Operating Metrics Total equity excluding CIEs / outstanding shares (1)(2) Total equity excluding CIEs and AOCI / outstanding shares (1)(3) See non-GAAP financial information on pg 31. Non-GAAP financial measure reconciliations can be found on pages 46 and 47. Debt to Capital Goodwill and Intangible Assets 7 of 50
Ameriprise Financial, Inc. Common Share and Capital Summary Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Common shares Beginning balance 127.4 123.9 122.3 120.6 118.6 136.3 123.9 (8.8) (7)% (12.4) (9)% (2.0) (2)% Repurchases (3.6) (2.5) (1.7) (2.1) (2.1) (13.4) (8.4) 1.5 42 % 5.0 37 % - - Issuances 0.3 1.8 - 0.3 1.0 1.8 3.1 0.7 # 1.3 72 % 0.7 # Other (0.2) (0.9) - (0.2) (0.7) (0.8) (1.8) (0.5) # (1.0) # (0.5) # Total common shares outstanding 123.9 122.3 120.6 118.6 116.8 123.9 116.8 (7.1) (6)% (7.1) (6)% (1.8) (2)% Restricted stock units 3.3 3.1 3.2 3.2 3.2 3.3 3.2 (0.1) (3)% (0.1) (3)% - - Total basic common shares outstanding 127.2 125.4 123.8 121.8 120.0 127.2 120.0 (7.2) (6)% (7.2) (6)% (1.8) (1)% Total potentially dilutive shares 2.6 0.9 1.8 1.9 2.5 2.6 2.5 (0.1) (4)% (0.1) (4)% 0.6 32 % Total diluted shares 129.8 126.3 125.6 123.7 122.5 129.8 122.5 (7.3) (6)% (7.3) (6)% (1.2) (1)% Capital Returned to Shareholders Dividends paid 128$ 126$ 131$ 129$ 126$ 518$ 512$ (2)$ (2)% (6)$ (1)% (3)$ (2)% Common stock share repurchases 561$ 386$ 251$ 319$ 376$ 1,899$ 1,332$ (185)$ (33)% (567)$ (30)% 57$ 18 % Allocated Capital (1) Advice & Wealth Management 977$ 1,053$ 1,172$ 1,220$ 1,278$ 977$ 1,278$ 301$ 31 % 301$ 31 % 58$ 5 % Asset Management 1,838 1,818 1,831 1,838 1,856 1,838 1,856 18 1 % 18 1 % 18 1 % Retirement and Protection Solutions 1,561 1,737 1,576 1,523 1,529 1,561 1,529 (32) (2)% (32) (2)% 6 - Corporate & Other 4,140 4,681 4,328 3,770 3,370 4,140 3,370 (770) (19)% (770) (19)% (400) (11)% Total allocated capital 8,516$ 9,289$ 8,907$ 8,351$ 8,033$ 8,516$ 8,033$ (483)$ (6)% (483)$ (6)% (318)$ (4)% (1) # Variance equal to or greater than 100%. Allocated capital equals Ameriprise Financial shareholders' equity excluding consolidated investment entities less AOCI plus Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and finance lease liabilities. Allocated capital is not adjusted for non adjusted operating items except for CIEs. 8 of 50
Statistical Supplement Package (unaudited) Fourth Quarter 2020 Segment Results 9 of 50
Ameriprise Financial, Inc. Segment Summary Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Segment Summary Advice & Wealth Management Adjusted operating total net revenues 1,710$ 1,695$ 1,537$ 1,667$ 1,776$ 6,599$ 6,675$ 66$ 4 % 76$ 1 % 109$ 7 % Adjusted operating expenses 1,323 1,317 1,266 1,347 1,424 5,090 5,354 101 8 % 264 5 % 77 6 % Pretax adjusted operating earnings 387$ 378$ 271$ 320$ 352$ 1,509$ 1,321$ (35)$ (9)% (188)$ (12)% 32$ 10 % Allocated capital 977$ 1,053$ 1,172$ 1,220$ 1,278$ 977$ 1,278$ 301$ 31 % 301$ 31 % 58$ 5 % Adjusted operating return on allocated capital (1) 150.9 % 153.0 % 124.2 % 107.7 % 97.4 % 150.9 % 97.4 % (53.5)% (53.5)% (10.3)% Pretax adjusted operating margin 22.6 % 22.3 % 17.6 % 19.2 % 19.8 % 22.9 % 19.8 % (2.8)% (3.1)% 0.6 % Asset Management Adjusted operating total net revenues 770$ 686$ 668$ 739$ 798$ 2,913$ 2,891$ 28$ 4 % (22)$ (1)% 59$ 8 % Adjusted operating expenses 592 529 527 541 597 2,252 2,194 5 1 % (58) (3)% 56 10 % Pretax adjusted operating earnings 178$ 157$ 141$ 198$ 201$ 661$ 697$ 23$ 13 % 36$ 5 % 3$ 2 % Allocated capital 1,838$ 1,818$ 1,831$ 1,838$ 1,856$ 1,838$ 1,856$ 18$ 1 % 18$ 1 % 18$ 1 % Adjusted operating return on allocated capital (1) 30.2 % 32.8 % 29.9 % 30.6 % 31.4 % 30.2 % 31.4 % 1.2 % 1.2 % 0.8 % Pretax adjusted operating margin 23.1 % 22.9 % 21.1 % 26.8 % 25.2 % 22.7 % 24.1 % 2.1 % 1.4 % (1.6)% Adjusted operating total net revenues 770$ 686$ 668$ 739$ 798$ 2,913$ 2,891$ 28$ 4 % (22)$ (1)% 59$ 8 % Distribution pass thru revenues (193) (186) (177) (193) (205) (747) (761) (12) (6)% (14) (2)% (12) (6)% Subadvisory and other pass thru revenues (85) (78) (76) (74) (94) (330) (322) (9) (11)% 8 2 % (20) (27)% Net adjusted operating revenues (2) 492$ 422$ 415$ 472$ 499$ 1,836$ 1,808$ 7$ 1 % (28)$ (2)% 27$ 6 % Pretax adjusted operating earnings 178$ 157$ 141$ 198$ 201$ 661$ 697$ 23$ 13 % 36$ 5 % 3$ 2 % Adjusted operating net investment income (4) - (1) 6 (8) (15) (3) (4) # 12 80 % (14) # Amortization of intangibles 4 3 3 3 4 21 13 - - (8) (38)% 1 33 % Net adjusted operating earnings (2) 178$ 160$ 143$ 207$ 197$ 667$ 707$ 19$ 11 % 40$ 6 % (10)$ (5)% Net pretax adjusted operating margin (2)(3) 36.2 % 37.9 % 34.5 % 43.9 % 39.5 % 36.3 % 39.1 % 3.3 % 2.8 % (4.4)% Retirement and Protection Solutions Adjusted operating total net revenues 786$ 759$ 755$ 781$ 799$ 3,123$ 3,094$ 13$ 2 % (29)$ (1)% 18$ 2 % Adjusted operating expenses 607 592 533 870 619 2,399 2,614 12 2 % 215 9 % (251) (29)% Pretax adjusted operating earnings 179$ 167$ 222$ (89)$ 180$ 724$ 480$ 1$ 1 % (244)$ (34)% 269$ # Allocated capital 1,561$ 1,737$ 1,576$ 1,523$ 1,529$ 1,561$ 1,529$ (32)$ (2)% (32)$ (2)% 6$ - Adjusted operating return on allocated capital (1) 38.3 % 39.1 % 37.4 % 24.3 % 24.2 % 38.3 % 24.2 % (14.1)% (14.1)% (0.1)% Pretax adjusted operating margin 22.8 % 22.0 % 29.4 % (11.4)% 22.5 % 23.2 % 15.5 % Corporate & Other (103)$ (52)$ (77)$ (58)$ (79)$ (333)$ (266)$ 24$ 23 % 67$ 20 % (21)$ (36)% Long Term Care pretax adjusted operating earnings (loss) (2)$ 2$ 17$ (135)$ 21$ -$ (95)$ 23$ # (95)$ - 156$ # Fixed Annuities pretax adjusted operating earnings (loss) 6$ -$ 3$ (9)$ (2)$ 34$ (8)$ (8)$ # (42)$ # 7$ 78 % Auto & Home pretax adjusted operating earnings (loss) (4) -$ #REF! -$ -$ -$ 13$ -$ -$ - (13)$ # -$ - (1) (2) See non-GAAP financial information on pg 31. (3) Calculated as net adjusted operating earnings as a percentage of net adjusted operating revenues. (4) # Variance equal to or greater than 100%. Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. Corporate excluding Long Term Care, Fixed Annuities and Auto & Home pretax adjusted operating loss Auto & Home business sold as of October 1, 2019 to American Family Insurance N/A N/A N/A N/A N/A N/A N/A N/AN/AN/AN/AN/A 10 of 50
Statistical Supplement Package Advice & Wealth Management Segment (unaudited) Fourth Quarter 2020 11 of 50
Ameriprise Financial, Inc. Advice & Wealth Management Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Revenues Management and financial advice fees 1,025$ 1,024$ 969$ 1,077$ 1,141$ 3,841$ 4,211$ 116$ 11 % 370$ 10 % 64$ 6 % Distribution fees 562 548 453 479 522 2,281 2,002 (40) (7)% (279) (12)% 43 9 % Net investment income 101 100 77 70 66 411 313 (35) (35)% (98) (24)% (4) (6)% Premiums, policy and contract charges - - - - - - - - - - - - - Other revenues 52 48 56 51 53 202 208 1 2 % 6 3 % 2 4 % Total revenues 1,740 1,720 1,555 1,677 1,782 6,735 6,734 42 2 % (1) - 105 6 % Banking and deposit interest expense 30 25 18 10 6 136 59 (24) (80)% (77) (57)% (4) (40)% Adjusted operating total net revenues 1,710 1,695 1,537 1,667 1,776 6,599 6,675 66 4 % 76 1 % 109 7 % Expenses Distribution expenses 970 970 913 998 1,065 3,714 3,946 95 10 % 232 6 % 67 7 % Interest credited to fixed accounts - - - - - - - - - - - - - Benefits, claims, losses and settlement expenses - - - - - - - - - - - - - Amortization of deferred acquisition costs - - - - - - - - - - - - - Interest and debt expense 3 2 3 3 2 11 10 (1) (33)% (1) (9)% (1) (33)% General and administrative expense 350 345 350 346 357 1,365 1,398 7 2 % 33 2 % 11 3 % Adjusted operating expenses 1,323 1,317 1,266 1,347 1,424 5,090 5,354 101 8 % 264 5 % 77 6 % Pretax adjusted operating earnings 387$ 378$ 271$ 320$ 352$ 1,509$ 1,321$ (35)$ (9)% (188)$ (12)% 32$ 10 % Pretax adjusted operating margin 22.6 % 22.3 % 17.6 % 19.2 % 19.8 % 22.9 % 19.8 % (2.8)% (3.1)% 0.6 % Return on Capital Allocated capital 977$ 1,053$ 1,172$ 1,220$ 1,278$ 977$ 1,278$ 301$ 31 % 301$ 31 % 58$ 5 % Adjusted operating return on allocated capital (1) 150.9 % 153.0 % 124.2 % 107.7 % 97.4 % 150.9 % 97.4 % (53.5)% (53.5)% (10.3)% Brokerage Cash and Certificates Balances On-balance sheet (Net Investment Income) On-balance sheet - broker dealer 3,141$ 3,517$ 3,332$ 3,345$ 3,487$ 3,141$ 3,487$ 346$ 11 % 346$ 11 % 142$ 4 % On-balance sheet - bank 3,788 6,160 5,298 6,320 7,405 3,788 7,405 3,617 95 % 3,617 95 % 1,085 17 % On-balance sheet - certificate 7,522 7,336 7,451 7,165 6,760 7,522 6,760 (762) (10)% (762) (10)% (405) (6)% Total on-balance sheet 14,451 17,013 16,081 16,830 17,652 14,451 17,652 3,201 22 % 3,201 22 % 822 5 % Off-balance sheet (Distribution Fees) Off-balance sheet - broker dealer 18,470 22,988 22,498 22,591 23,842 18,470 23,842 5,372 29 % 5,372 29 % 1,251 Total Brokerage cash and certificates balances 32,921$ 40,001$ 38,579$ 39,421$ 41,494$ 32,921$ 41,494$ 8,573$ 26 % 8,573$ 26 % 2,073$ 5 % Gross Fee Yield On-balance sheet - broker dealer 1.98 % 1.17 % 0.10 % 0.11 % 0.11 % 2.67 % 0.36 % (1.9)% (2.3)% (0.0)% On-balance sheet - bank 2.45 % 2.15 % 1.65 % 1.53 % 1.45 % 2.32 % 1.63 % (1.0)% (0.7)% (0.1)% On-balance sheet - certificate 2.55 % 2.43 % 1.83 % 1.45 % 1.32 % 2.80 % 1.77 % (1.2)% (1.0)% (0.1)% Off-balance sheet - broker dealer 1.79 % 1.40 % 0.27 % 0.29 % 0.29 % 2.09 % 0.53 % (1.5)% (1.6)% 0.0 % Weighted Average Gross Fee Yield (2) 2.07 % 1.72 % 0.79 % 0.71 % 0.69 % 2.32 % 0.95 % (1.4)% (1.4)% (0.0)% (1) (2) Year-to-Date Advice & Wealth Management Segment Adjusted Operating Income Statements Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. Gross Fee yield represents annualized gross fee revenue earned on average interest-bearing balances for the period noted. 12 of 50
Ameriprise Financial, Inc. Advice & Wealth Management Segment Fourth Quarter 2020 Prior Year Comparisons (in millions, except headcount and where noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Product Information Certificates and Banking - Combined Pretax adjusted operating earnings 18$ 17$ 18$ 17$ 21$ 66$ 73$ 3$ 17 % 7$ 11 % 4$ 24 % Allocated capital 650$ 742$ 856$ 907$ 960$ 650$ 960$ 310$ 48 % 310$ 48 % 53$ 6 % Adjusted operating return on allocated capital (1) 10.6 % 10.3 % 8.6 % 7.7 % 7.3 % 10.6 % 7.3 % (3.3)% (3.3)% (0.4)% Wealth Management & Distribution Pretax adjusted operating earnings 369$ 361$ 253$ 303$ 331$ 1,443$ 1,248$ (38)$ (10)% (195)$ (14)% 28$ 9 % Allocated capital 327$ 311$ 316$ 313$ 318$ 327$ 318$ (9)$ (3)% (9)$ (3)% 5$ 2 % Adjusted operating return on allocated capital (1) 384.4 % 418.9 % 369.2 % 345.5 % 331.5 % 384.4 % 331.5 % (52.9)% (52.9)% (14.0)% Financial Advisors Employee advisors (2) 2,131 2,102 2,116 2,123 2,117 2,131 2,117 (14) (1)% (14) (1)% (6) - Franchisee advisors 7,740 7,776 7,778 7,782 7,805 7,740 7,805 65 1 % 65 1 % 23 - Total financial advisors 9,871 9,878 9,894 9,905 9,922 9,871 9,922 51 1 % 51 1 % 17 - 173$ 172$ 155$ 168$ 179$ 664$ 674$ 6$ 3 % 10$ 2 % 11$ 7 % 664$ 680$ 669$ 668$ 674$ 664$ 674$ 10$ 2 % 10$ 2 % 6$ 1 % Advisor Retention Employee 91.2 % 90.2 % 90.9 % 91.9 % 92.1 % 91.2 % 92.1 % 0.9 % 0.9 % 0.2 % Franchisee 92.8 % 92.8 % 93.4 % 93.6 % 94.0 % 92.8 % 94.0 % 1.2 % 1.2 % 0.4 % AWM Total Client Assets 643,046$ 559,808$ 630,202$ 666,800$ 732,171$ 643,046$ 732,171$ 89,125$ 14 % 89,125$ 14 % 65,371$ 10 % Total Wrap Accounts Beginning assets 298,063$ 317,536$ 275,505$ 317,615$ 339,950$ 251,486$ 317,536$ 41,887$ 14 % 66,050$ 26 % 22,335$ 7 % Other net flows 4,359 6,111 4,916 5,169 7,929 17,624 24,125 3,570 82 % 6,501 37 % 2,760 53 % Net flows 4,359 6,111 4,916 5,169 7,929 17,624 24,125 3,570 82 % 6,501 37 % 2,760 53 % Market appreciation (depreciation) and other 15,114 (48,142) 37,194 17,166 32,134 48,426 38,352 17,020 # (10,074) (21)% 14,968 87 % Total wrap ending assets 317,536$ 275,505$ 317,615$ 339,950$ 380,013$ 317,536$ 380,013$ 62,477$ 20 % 62,477$ 20 % 40,063$ 12 % Advisory wrap account assets ending balance (5) 314,281$ 272,263$ 313,898$ 335,980$ 375,657$ 314,281$ 375,657$ 61,376$ 20 % 61,376$ 20 % 39,677$ 12 % (1) (2) IPI advisors are being included in the employee advisor count. (3) Year-to-date is sum of current and prior quarters for the year under review. (4) Trailing twelve months is the sum of the last four quarters. (5) # Variance equal to or greater than 100%. Year-to-Date Adjusted operating total net revenues per financial advisor-trailing twelve months (in thousands) (4) Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. Adjusted operating total net revenues per financial advisor (in thousands) (3) 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. Beginning Q4 2019, all advisory fee billing is calculated in advance on a monthly basis using point-in-time assets. Prior to Q4 2019, some advisory accounts billed in arrears on a quarterly or monthly basis using average daily assets. 13 of 50
Statistical Supplement Package Asset Management Segment (unaudited) Fourth Quarter 2020 14 of 50
Ameriprise Financial, Inc. Asset Management Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Asset Management Segment Adjusted Operating Income Statements Revenues Management and financial advice fees 661$ 583$ 570$ 641$ 681$ 2,488$ 2,475$ 20$ 3 % (13)$ (1)% 40$ 6 % Distribution fees 105 103 96 104 108 408 411 3 3 % 3 1 % 4 4 % Net investment income 4 - 1 (6) 8 15 3 4 # (12) (80)% 14 # Premiums, policy and contract charges - - - - - - - - - - - - - Other revenues - - 1 - 1 2 2 1 - - - 1 - Total revenues 770 686 668 739 798 2,913 2,891 28 4 % (22) (1)% 59 8 % Banking and deposit interest expense - - - - - - - - - - - - - Adjusted operating total net revenues 770 686 668 739 798 2,913 2,891 28 4 % (22) (1)% 59 8 % Expenses Distribution expenses 239 231 220 240 254 928 945 15 6 % 17 2 % 14 6 % Interest credited to fixed accounts - - - - - - - - - - - - - Benefits, claims, losses and settlement expenses - - - - - - - - - - - - - Amortization of deferred acquisition costs 2 3 3 2 3 9 11 1 50 % 2 22 % 1 50 % Interest and debt expense 6 1 1 2 1 25 5 (5) (83)% (20) (80)% (1) (50)% General and administrative expense 345 294 303 297 339 1,290 1,233 (6) (2)% (57) (4)% 42 14 % Adjusted operating expenses 592 529 527 541 597 2,252 2,194 5 1 % (58) (3)% 56 10 % Pretax adjusted operating earnings 178$ 157$ 141$ 198$ 201$ 661$ 697$ 23$ 13 % 36$ 5 % 3$ 2 % Pretax adjusted operating margin 23.1 % 22.9 % 21.1 % 26.8 % 25.2 % 22.7 % 24.1 % 2.1 % 1.4 % (1.6)% Adjusted operating total net revenues 770$ 686$ 668$ 739$ 798$ 2,913$ 2,891$ 28$ 4 % (22)$ (1)% 59$ 8 % Distribution pass thru revenues (193) (186) (177) (193) (205) (747) (761) (12) (6)% (14) (2)% (12) (6)% Subadvisory and other pass thru revenues (85) (78) (76) (74) (94) (330) (322) (9) (11)% 8 2 % (20) (27)% Net adjusted operating revenues (1) 492$ 422$ 415$ 472$ 499$ 1,836$ 1,808$ 7$ 1 % (28)$ (2)% 27$ 6 % Pretax adjusted operating earnings 178$ 157$ 141$ 198$ 201$ 661$ 697$ 23$ 13 % 36$ 5 % 3$ 2 % Adjusted operating net investment income (4) - (1) 6 (8) (15) (3) (4) # 12 80 % (14) # Amortization of intangibles 4 3 3 3 4 21 13 - - (8) (38)% 1 33 % Net adjusted operating earnings (1) 178$ 160$ 143$ 207$ 197$ 667$ 707$ 19$ 11 % 40$ 6 % (10)$ (5)% Net pretax adjusted operating margin (1)(2) 36.2 % 37.9 % 34.5 % 43.9 % 39.5 % 36.3 % 39.1 % 3.3 % 2.8 % (4.4)% Performance Fees (3) Performance fees 41$ -$ 1$ -$ 17$ 92$ 18$ (24)$ (59)% (74)$ (80)% 17$ - Performance fee related general and administrative expense 22 - - - 4 40 4 (18) (82)% (36) (90)% 4 - Net performance fees 19$ -$ 1$ -$ 13$ 52$ 14$ (6)$ (32)% (38)$ (73)% 13$ - Return on Capital Allocated capital 1,838$ 1,818$ 1,831$ 1,838$ 1,856$ 1,838$ 1,856$ 18$ 1 % 18$ 1 % 18$ 1 % Adjusted operating return on allocated capital (4) 30.2 % 32.8 % 29.9 % 30.6 % 31.4 % 30.2 % 31.4 % 1.2 % 1.2 % 0.8 % (1) See non-GAAP financial information on pg 31. (2) Calculated as net adjusted operating earnings as a percentage of net adjusted operating revenues. (3) (4) # Variance equal to or greater than 100%. Year-to-Date Performance fees do not include CLO incentive fees. Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. 15 of 50
Ameriprise Financial, Inc. Asset Management Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Year-to-Date Total Managed Assets by Type Equity 271,149$ 210,463$ 251,362$ 264,840$ 302,563$ 271,149$ 302,563$ 31,414$ 12 % 31,414$ 12 % 37,723$ 14 % Fixed income 179,210 174,012 183,061 188,844 196,501 179,210 196,501 17,291 10 % 17,291 10 % 7,657 4 % Money market 5,634 4,947 4,997 5,076 5,899 5,634 5,899 265 5 % 265 5 % 823 16 % Alternative 3,093 2,745 3,148 3,465 3,623 3,093 3,623 530 17 % 530 17 % 158 5 % Hybrid and other 35,095 33,996 33,553 35,779 38,027 35,095 38,027 2,932 8 % 2,932 8 % 2,248 6 % Total managed assets by type 494,181$ 426,163$ 476,121$ 498,004$ 546,613$ 494,181$ 546,613$ 52,432$ 11 % 52,432$ 11 % 48,609$ 10 % Average Managed Assets by Type (1) Equity 260,719$ 246,757$ 235,797$ 264,206$ 279,128$ 251,472$ 259,763$ 18,409$ 7 % 8,291$ 3 % 14,922$ 6 % Fixed income 178,194 181,159 178,986 187,171 192,196 171,246 185,547 14,002 8 % 14,301 8 % 5,025 3 % Money market 5,252 4,745 5,121 5,100 5,397 5,112 5,109 145 3 % (3) - 297 6 % Alternative 3,084 3,030 2,956 3,340 3,512 3,122 3,231 428 14 % 109 3 % 172 5 % Hybrid and other 34,292 35,397 33,457 35,422 36,748 33,892 35,443 2,456 7 % 1,551 5 % 1,326 4 % Total average managed assets by type 481,541$ 471,088$ 456,317$ 495,239$ 516,981$ 464,844$ 489,093$ 35,440$ 7 % 24,249$ 5 % 21,742$ 4 % Model delivery AUA flows(2) 233$ 66$ 315$ 299$ 226$ 1,644$ 906$ (7)$ (3)% (738)$ (45)% (73)$ (24)% Total Assets Under Advisement (3) 11,707$ 12,796$ 10,454$ 12,714$ 13,929$ 11,707$ 13,929$ 2,222$ 19 % 2,222$ 19 % 1,215$ 10 % (1) Average ending balances are calculated using the average of the prior period's ending balance and all months in the current period. (2) Estimated flows based on the period to period change in assets less calculated performance based on strategy returns. Flows are presented on a one-quarter lag. (3) Assets are presented on a one-quarter lag. 16 of 50
Ameriprise Financial, Inc. Asset Management Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Managed Assets Rollforward Global Retail Funds Beginning assets 271,409$ 287,452$ 239,038$ 274,136$ 289,922$ 247,943$ 287,452$ 18,513$ 7 % 39,509$ 16 % 15,786$ 6 % Inflows 12,826 17,371 15,925 14,498 16,922 46,939 64,716 4,096 32 % 17,777 38 % 2,424 17 % Outflows (12,817) (20,028) (14,231) (13,192) (14,518) (53,793) (61,969) (1,701) (13)% (8,176) (15)% (1,326) (10)% Net VP/VIT fund flows (640) (737) (625) (691) (840) (2,743) (2,893) (200) (31)% (150) (5)% (149) (22)% Net new flows (631) (3,394) 1,069 615 1,564 (9,597) (146) 2,195 # 9,451 98 % 949 # Reinvested dividends 5,664 502 1,983 1,375 6,219 9,705 10,079 555 10 % 374 4 % 4,844 # Net flows 5,033 (2,892) 3,052 1,990 7,783 108 9,933 2,750 55 % 9,825 # 5,793 # Distributions (6,480) (669) (2,266) (1,540) (7,088) (11,306) (11,563) (608) (9)% (257) (2)% (5,548) # Market appreciation (depreciation) and other 15,743 (43,485) 34,278 13,848 30,847 50,236 35,488 15,104 96 % (14,748) (29)% 16,999 # Foreign currency translation (1) 1,747 (1,368) 34 1,488 2,019 471 2,173 272 16 % 1,702 # 531 36 % Total ending assets 287,452 239,038 274,136 289,922 323,483 287,452 323,483 36,031 13 % 36,031 13 % 33,561 12 % % of total retail assets sub-advised 18.3% 19.2% 19.2% 18.1% 17.7% 18.3% 17.7% (0.7)% (0.7)% (0.4)% Global Institutional Beginning assets 197,155 206,729 187,125 201,985 208,082 182,707 206,729 10,927 6 % 24,022 13 % 6,097 3 % Inflows (2) 6,151 8,561 6,437 7,021 5,378 22,711 27,397 (773) (13)% 4,686 21 % (1,643) (23)% Outflows (7,836) (8,028) (6,892) (10,562) (6,177) (29,906) (31,659) 1,659 21 % (1,753) (6)% 4,385 42 % Net flows (1,685) 533 (455) (3,541) (799) (7,195) (4,262) 886 53 % 2,933 41 % 2,742 77 % Market appreciation (depreciation) and other (3) 7,041 (16,698) 15,745 6,546 11,388 29,771 16,981 4,347 62 % (12,790) (43)% 4,842 74 % Foreign currency translation (1) 4,218 (3,439) (430) 3,092 4,459 1,446 3,682 241 6 % 2,236 # 1,367 44 % Total ending assets 206,729 187,125 201,985 208,082 223,130 206,729 223,130 16,401 8 % 16,401 8 % 15,048 7 % Total managed assets 494,181$ 426,163$ 476,121$ 498,004$ 546,613$ 494,181$ 546,613$ 52,432$ 11 % 52,432$ 11 % 48,609$ 10 % Total net flows 3,348$ (2,359)$ 2,597$ (1,551)$ 6,984$ (7,087)$ 5,671$ 3,636$ # 12,758$ # 8,535$ # (162)$ (205)$ 359$ 296$ 72$ (852)$ 522$ 234$ # 1,374$ # (224)$ (76)% (754) (598) (666) (851) (1,332) (3,450) (3,447) (578) (77)% 3 - (481) (57)% (916)$ (803)$ (307)$ (555)$ (1,260)$ (4,302)$ (2,925)$ (344)$ (38)% 1,377$ 32 % (705)$ # (1) Amounts represent local currency to US dollar translation for reporting purposes. (2) Inflows include $99M in Q1 2020, $281M in Q2 2020, $409M in Q3 2020 and $475M in Q4 2020 of net flows from our recently launched RiverSouce Structured Annuity which is designed to be a replacement for other Variable Annuity Products. (3) Included in Market appreciation (depreciation) and other for Global Institutional is the change in the affiliated general account balance excluding net flows related to the recently launched Structured Annuity product. (4) Former parent company related assets and net new flows are included in the rollforwards above and include Bank of America Pension, US Trust, Balboa and Zurich. # Variance equal to or greater than 100%. Former Parent Company Related (4) Retail net new flows Institutional net new flows Total net new flows 17 of 50
Ameriprise Financial, Inc. Asset Management Segment - Columbia Fourth Quarter 2020 Mutual Fund Rankings in top 2 Lipper Quartiles 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 Domestic Equity Equal weighted 1 year 59 % 53 % 65 % 71 % 68 % 3 year 55 % 50 % 56 % 61 % 61 % 5 year 48 % 58 % 58 % 57 % 57 % Asset weighted 1 year 75 % 75 % 82 % 75 % 73 % 3 year 66 % 69 % 71 % 72 % 77 % 5 year 69 % 75 % 75 % 69 % 78 % International Equity Equal weighted 1 year 100 % 64 % 68 % 79 % 71 % 3 year 80 % 80 % 70 % 92 % 92 % 5 year 65 % 60 % 65 % 92 % 92 % Asset weighted 1 year 100 % 54 % 70 % 67 % 61 % 3 year 86 % 84 % 82 % 89 % 88 % 5 year 69 % 61 % 62 % 89 % 88 % Taxable Fixed Income Equal weighted 1 year 83 % 33 % 41 % 71 % 76 % 3 year 81 % 47 % 69 % 69 % 81 % 5 year 88 % 75 % 87 % 80 % 73 % Asset weighted 1 year 90 % 20 % 30 % 83 % 88 % 3 year 89 % 29 % 58 % 57 % 91 % 5 year 90 % 79 % 90 % 83 % 77 % Tax Exempt Fixed Income Equal weighted 1 year 89 % 63 % 58 % 53 % 68 % 3 year 89 % 89 % 74 % 74 % 74 % 5 year 94 % 100 % 79 % 84 % 89 % Asset weighted 1 year 93 % 41 % 47 % 28 % 54 % 3 year 92 % 89 % 59 % 59 % 60 % 5 year 98 % 100 % 62 % 65 % 67 % Asset Allocation Funds Equal weighted 1 year 64 % 79 % 79 % 86 % 71 % 3 year 58 % 86 % 79 % 71 % 64 % 5 year 80 % 92 % 83 % 75 % 75 % Asset weighted 1 year 86 % 91 % 91 % 95 % 94 % 3 year 88 % 95 % 94 % 84 % 83 % 5 year 96 % 96 % 95 % 93 % 94 % Number of 4- or 5-star Morningstar rated funds Overall 56 56 55 58 53 3 year 51 41 43 39 38 5 year 53 48 49 50 49 Percent of 4- or 5-star Morningstar rated funds Overall 54 % 54 % 53 % 63 % 58 % 3 year 49 % 39 % 42 % 42 % 41 % 5 year 53 % 47 % 48 % 55 % 54 % Percent of 4- or 5-star Morningstar rated assets Overall 66 % 63 % 62 % 66 % 65 % 3 year 50 % 43 % 46 % 46 % 47 % 5 year 59 % 57 % 51 % 51 % 54 % Mutual fund performance rankings are based on the performance of the Institutional Class for Columbia branded mutual funds. Only funds with Institutional Class shares are included. 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. 18 of 50
Ameriprise Financial, Inc. Asset Management Segment - Threadneedle Fourth Quarter 2020 Retail Fund Rankings in Top 2 Morningstar and IA Quartiles or Above Index Benchmark 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 Equity Equal weighted 1 year 87 % 79 % 80 % 78 % 80 % 3 year 77 % 71 % 71 % 76 % 83 % 5 year 70 % 66 % 75 % 73 % 75 % Asset weighted 1 year 91 % 84 % 85 % 86 % 86 % 3 year 79 % 80 % 81 % 85 % 88 % 5 year 82 % 78 % 82 % 84 % 85 % Fixed Income Equal weighted 1 year 78 % 52 % 78 % 93 % 96 % 3 year 88 % 68 % 92 % 92 % 96 % 5 year 96 % 84 % 92 % 96 % 92 % Asset weighted 1 year 75 % 47 % 70 % 99 % 99 % 3 year 93 % 51 % 97 % 97 % 99 % 5 year 97 % 93 % 96 % 97 % 96 % Allocation (Managed) Funds Equal weighted 1 year 100 % 44 % 78 % 78 % 89 % 3 year 75 % 50 % 63 % 75 % 88 % 5 year 88 % 88 % 88 % 88 % 88 % Asset weighted 1 year 100 % 52 % 96 % 96 % 99 % 3 year 94 % 53 % 91 % 96 % 99 % 5 year 98 % 99 % 99 % 99 % 99 % Aggregated Threadneedle data includes funds on the Threadneedle platform sub-advised by Columbia as well as advisors not affiliated with Ameriprise Financial, Inc. 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. 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. Prior period rankings have been adjusted to reflect a change in the calculation of FX forward and spot contract transactions executed by those funds, and also to include cash items primarily fee rebates, that were previously excluded from the gross performance calculations. 19 of 50
Statistical Supplement Package Retirement & Protection Solutions Segment (unaudited) Fourth Quarter 2020 20 of 50
Ameriprise Financial, Inc. Retirement & Protection Solutions Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Adjusted Operating Income Statements Revenues Management and financial advice fees 213$ 199$ 200$ 213$ 219$ 827$ 831$ 6$ 3 % 4$ - 6$ 3 % Distribution fees 111 105 106 111 115 438 437 4 4 % (1) - 4 4 % Net investment income 129 130 129 121 128 528 508 (1) (1)% (20) (4)% 7 6 % Premiums, policy and contract charges 333 325 320 333 337 1,330 1,315 4 1 % (15) (1)% 4 1 % Other revenues - - - 3 - - 3 - - 3 - (3) # Total revenues 786 759 755 781 799 3,123 3,094 13 2 % (29) (1)% 18 2 % Banking and deposit interest expense - - - - - - - - - - - - - Adjusted operating total net revenues 786 759 755 781 799 3,123 3,094 13 2 % (29) (1)% 18 2 % Expenses Distribution expenses 119 110 111 110 124 469 455 5 4 % (14) (3)% 14 13 % Interest credited to fixed accounts 97 100 97 100 97 387 394 - - 7 2 % (3) (3)% Benefits, claims, losses and settlement expenses 253 245 212 421 253 988 1,131 - - 143 14 % (168) (40)% Amortization of deferred acquisition costs 57 54 30 157 59 230 300 2 4 % 70 30 % (98) (62)% Interest and debt expense 7 10 10 8 11 31 39 4 57 % 8 26 % 3 38 % General and administrative expense 74 73 73 74 75 294 295 1 1 % 1 - 1 1 % Adjusted operating expenses 607 592 533 870 619 2,399 2,614 12 2 % 215 9 % (251) (29)% Pretax adjusted operating earnings 179$ 167$ 222$ (89)$ 180$ 724$ 480$ 1$ 1 % (244)$ (34)% 269$ # Pretax adjusted operating margin 22.8 % 22.0 % 29.4 % (11.4)% 22.5 % 23.2% 15.5% (0.3)% (7.7)% 33.9 % Return on Capital Allocated capital 1,561$ 1,737$ 1,576$ 1,523$ 1,529$ 1,561$ 1,529$ (32)$ (2)% (32)$ (2)% 6$ - Adjusted operating return on allocated capital (1) 38.3 % 39.1 % 37.4 % 24.3 % 24.2 % 38.3 % 24.2 % (14.1)% (14.1)% (0.1)% (1) # Variance equal to or greater than 100%. Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. 21 of 50
Ameriprise Financial, Inc. Retirement & Protection Solutions Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Variable Annuities Rollforward Beginning balance 77,452$ 80,068$ 69,959$ 77,481$ 79,846$ 72,042$ 80,068$ 2,394$ 3 % 8,026$ 11 % 2,365$ 3 % Deposits 1,107 1,072 850 1,109 1,327 4,087 4,358 220 20 % 271 7 % 218 20 % Withdrawals and terminations (1,863) (1,784) (1,320) (1,567) (1,786) (7,250) (6,457) 77 4 % 793 11 % (219) (14)% Net flows (756) (712) (470) (458) (459) (3,163) (2,099) 297 39 % 1,064 34 % (1) - Investment performance and interest credited 3,374 (9,397) 7,992 2,823 6,387 11,189 7,805 3,013 89 % (3,384) (30)% 3,564 # Other (2) - - - - - - 2 # - - - - Total ending balance - contract accumulation values 80,068$ 69,959$ 77,481$ 79,846$ 85,774$ 80,068$ 85,774$ 5,706$ 7 % 5,706$ 7 % 5,928$ 7 % Variable annuities fixed sub-accounts 5,103$ 5,125$ 5,103$ 5,107$ 5,104$ 5,103$ 5,104$ 1$ - 1$ - (3)$ - Payout Annuities Reserve Balance 2,055$ 2,037$ 2,008$ 1,975$ 1,948$ 2,055$ 1,948$ (107)$ (5)% (107)$ (5)% (27)$ (1)% Protection Cash Sales VUL / UL (1) 69$ 56$ 41$ 49$ 65$ 266$ 211$ (4)$ (6)% (55)$ (21)% 16$ 33 % Term and whole life 3 2 2 2 3 9 9 - - - - 1 50 % Disability insurance - 1 - 1 1 3 3 1 - - - - - Total protection cash sales 72$ 59$ 43$ 52$ 69$ 278$ 223$ (3)$ (4)% (55)$ (20)% 17$ 33 % Retirement & Protection Detail VUL / UL Policyholder Account Balances Beginning balance 12,785$ 13,236$ 11,942$ 12,934$ 13,345$ 11,951$ 13,236$ 560$ 4 % 1,285$ 11 % 411$ 3 % Premiums and deposits 261 237 218 225 259 988 939 (2) (1)% (49) (5)% 34 15 % Investment performance and interest 503 (1,217) 1,062 474 941 1,551 1,260 438 87 % (291) (19)% 467 99 % Withdrawals and surrenders (313) (314) (287) (288) (299) (1,253) (1,188) 14 4 % 65 5 % (11) (4)% Other - - (1) - - (1) (1) - - - - - - Total ending balance 13,236$ 11,942$ 12,934$ 13,345$ 14,246$ 13,236$ 14,246$ 1,010$ 8 % 1,010$ 8 % 901$ 7 % Protection Premiums by Product Term and whole life 11$ 11$ 10$ 10$ 12$ 43$ 43$ 1$ 9 % -$ - 2$ 20 % Disability insurance 32 33 32 33 31 133 129 (1) (3)% (4) (3)% (2) (6)% Intercompany premiums 7 5 6 5 6 25 22 (1) (14)% (3) (12)% 1 20 % Total protection premiums by product 50$ 49$ 48$ 48$ 49$ 201$ 194$ (1)$ (2)% (7)$ (3)% 1$ 2 % Life Insurance in Force 195,103$ 194,617$ 194,980$ 195,007$ 195,750$ 195,103$ 195,750$ 647$ - 647$ - 743$ - Net Amount at Risk 38,976$ 40,075$ 38,950$ 38,403$ 37,817$ 38,976$ 37,817$ (1,159)$ (3)% (1,159)$ (3)% (586)$ (2)% Net Policyholder Reserves VUL / UL 12,676$ 11,224$ 12,387$ 12,836$ 13,738$ 12,676$ 13,738$ 1,062$ 8 % 1,062$ 8 % 902$ 7 % Term and whole life 181 180 178 177 174 181 174 (7) (4)% (7) (4)% (3) (2)% Disability insurance 519 508 505 504 504 519 504 (15) (3)% (15) (3)% - - Other insurance 682 668 661 652 643 682 643 (39) (6)% (39) (6)% (9) (1)% Total net policyholder reserves 14,058$ 12,580$ 13,731$ 14,169$ 15,059$ 14,058$ 15,059$ 1,001$ 7 % 1,001$ 7 % 890$ 6 % (1) Includes lump sum and UL-LTC single premium deposits. # Variance equal to or greater than 100%. Year-to-Date 22 of 50
Ameriprise Financial, Inc. Retirement & Protection Solutions Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Year-to-Date DAC Rollforward Life and Health Beginning balance 851$ 850$ 894$ 836$ 817$ 944$ 850$ (34)$ (4)% (94)$ (10)% (19)$ (2)% Capitalization 19 17 15 15 19 78 66 - - (12) (15)% 4 27 % Non adjusted operating amortization - (36) 41 (1) (1) 5 3 (1) - (2) (40)% - - Amortization per income statement (17) (11) (12) (16) (16) (53) (55) 1 6 % (2) (4)% - - Other (3) 74 (102) (17) (53) (124) (98) (50) # 26 21 % (36) # Total ending balance 850$ 894$ 836$ 817$ 766$ 850$ 766$ (84)$ (10)% (84)$ (10)% (51)$ (6)% Total Variable Annuities DAC Beginning balance 1,719$ 1,790$ 1,397$ 1,614$ 1,577$ 1,733$ 1,790$ (142)$ (8)% 57$ 3 % (37)$ (2)% Capitalization 40 39 30 38 42 154 149 2 5 % (5) (3)% 4 11 % Non adjusted operating amortization 72 (415) 241 75 142 108 43 70 97 % (65) (60)% 67 89 % Amortization per income statement (43) (43) (19) (143) (46) (175) (251) (3) (7)% (76) (43)% 97 68 % Other 2 26 (35) (7) (4) (30) (20) (6) # 10 33 % 3 43 % Total ending balance 1,790$ 1,397$ 1,614$ 1,577$ 1,711$ 1,790$ 1,711$ (79)$ (4)% (79)$ (4)% 134$ 8 % # Variance equal to or greater than 100%. 23 of 50
Corporate & Other Segment Statistical Supplement Package (unaudited) Fourth Quarter 2020 24 of 50
Ameriprise Financial, Inc. Corporate & Other Segment Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Product Information (1) Corporate excluding LTC, FA and Auto & Home Adjusted operating total net revenues (25)$ (5)$ (19)$ (11)$ (12)$ (61)$ (47)$ 13$ 52 % 14$ 23 % (1)$ (9)% Adjusted operating expenses 78 47 58 47 67 272 219 (11) (14)% (53) (19)% 20 43 % Pretax adjusted operating earnings (loss) (103)$ (52)$ (77)$ (58)$ (79)$ (333)$ (266)$ 24$ 23 % 67$ 20 % (21)$ (36)% Long Term Care Adjusted operating total net revenues 69$ 67$ 65$ 66$ 64$ 274$ 262$ (5)$ (7)% (12)$ (4)% (2)$ (3)% Adjusted operating expenses 71 65 48 201 43 274 357 (28) (39)% 83 30 % (158) (79)% Pretax adjusted operating earnings (loss) (2)$ 2$ 17$ (135)$ 21$ -$ (95)$ 23$ # (95)$ - 156$ # Fixed Annuities Adjusted operating total net revenues 93$ 87$ 85$ 77$ 82$ 383$ 331$ (11)$ (12)% (52)$ (14)% 5$ 6 % Adjusted operating expenses 87 87 82 86 84 349 339 (3) (3)% (10) (3)% (2) (2)% Pretax adjusted operating earnings (loss) 6$ -$ 3$ (9)$ (2)$ 34$ (8)$ (8)$ # (42)$ # 7$ 78 % Auto and Home Insurance (2) Pretax adjusted operating earnings (loss) #N/A -$ -$ -$ -$ 13$ -$ #N/A #N/A (13)$ # -$ - (1) (2) # Variance equal to or greater than 100%. See Exhibit B for details on Long Term Care, Fixed Annuities and Corporate Excluding Long Term Care, Fixed Annuities and Auto & Home Auto & Home business sold as of October 1, 2019 to American Family Insurance N/A N/A N/A N/A N/A N/A N/A N/AN/AN/AN/AN/A 25 of 50
Ameriprise Financial, Inc. Eliminations (1) Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Eliminations Adjusted Operating Income Statements Revenues Management and financial advice fees (36)$ (35)$ (35)$ (37)$ (36)$ (139)$ (143)$ -$ - (4)$ (3)% 1$ 3 % Distribution fees (310) (292) (280) (294) (323) (1,214) (1,189) (13) (4)% 25 2 % (29) (10)% Net investment income (6) (4) (4) (4) (5) (23) (17) 1 17 % 6 26 % (1) (25)% Premiums, policy and contract charges (9) (8) (8) (7) (8) (34) (31) 1 11 % 3 9 % (1) (14)% Other revenues - - - - - - - - - - - - - Total revenues (361) (339) (327) (342) (372) (1,410) (1,380) (11) (3)% 30 2 % (30) (9)% Banking and deposit interest expense (3) (1) (1) - (1) (8) (3) 2 67 % 5 63 % (1) - Adjusted operating total net revenues (358) (338) (326) (342) (371) (1,402) (1,377) (13) (4)% 25 2 % (29) (8)% Expenses Distribution expenses (334) (315) (302) (318) (345) (1,305) (1,280) (11) (3)% 25 2 % (27) (8)% Interest credited to fixed accounts - - - - - - - - - - - - - Benefits, claims, losses and settlement expenses 1 (5) (3) (4) (5) (12) (17) (6) # (5) (42)% (1) (25)% Amortization of deferred acquisition costs - - - - - - - - - - - - - Interest and debt expense (4) (3) (5) (2) (4) (15) (14) - - 1 7 % (2) # General and administrative expense (21) (15) (16) (18) (17) (70) (66) 4 19 % 4 6 % 1 6 % Adjusted operating expenses (358) (338) (326) (342) (371) (1,402) (1,377) (13) (4)% 25 2 % (29) (8)% Pretax adjusted operating earnings -$ -$ -$ -$ -$ -$ -$ -$ - -$ - -$ - (1) The majority of the amounts represent the impact of inter-segment transfer pricing for both revenues and expenses. # Variance equal to or greater than 100%. 26 of 50
Statistical Supplement Package Balance Sheet and Ratings Information (unaudited) Fourth Quarter 2020 27 of 50
Ameriprise Financial, Inc. Consolidated Balance Sheets Fourth Quarter 2020 (in millions, unaudited) December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Assets Cash and cash equivalents 3,709$ 8,730$ 7,654$ 7,441$ 6,751$ Cash of consolidated investment entities 118 99 49 227 94 Investments, net of allowance for credit losses 37,915 36,626 39,208 40,737 41,031 Investments of consolidated investment entities 1,606 1,398 1,495 1,903 1,918 Separate account assets 87,488 75,305 83,698 86,128 92,611 Receivables, net of allowance for credit losses 7,202 7,185 7,275 7,383 7,819 Receivables of consolidated investment entities 8 3 20 9 16 Deferred acquisition costs 2,698 2,364 2,499 2,450 2,532 Restricted and segregated cash and investments 2,386 2,848 2,416 2,551 2,558 Other assets 8,698 11,124 10,588 9,858 10,551 Assets held for sale - - - - - Total Assets 151,828$ 145,682$ 154,902$ 158,687$ 165,883$ Liabilities Policyholder account balances, future policy benefits and claims 30,512$ 32,685$ 33,312$ 34,020$ 33,992$ Separate account liabilities 87,488 75,305 83,698 86,128 92,611 Customer deposits 14,430 17,010 16,070 16,818 17,641 Short-term borrowings 201 200 200 200 200 Long-term debt (1) 3,097 2,344 2,835 2,833 2,831 Debt of consolidated investment entities 1,628 1,376 1,489 1,901 1,913 Accounts payable and accrued expenses 1,884 1,427 1,650 1,770 1,998 Other liabilities 6,775 8,536 9,090 8,730 8,737 Other liabilities of consolidated investment entities 84 106 58 220 93 Liabilities held for sale - - - - - Total Liabilities 146,099 138,989 148,402 152,620 160,016 Equity Ameriprise Financial Common shares ($.01 par) 3 3 3 3 3 Additional paid-in capital 8,461 8,578 8,622 8,677 8,822 Retained earnings 14,279 16,180 15,510 15,241 15,292 Treasury stock (17,276) (17,773) (18,029) (18,370) (18,879) Accumulated other comprehensive income, net of tax 262 (295) 394 516 629 Total Equity 5,729 6,693 6,500 6,067 5,867 Total Liabilities and Equity 151,828$ 145,682$ 154,902$ 158,687$ 165,883$ (1) The first quarter of 2020 does not include $500 million of debt issuance that settled on April 2, 2020. 28 of 50
Ameriprise Financial, Inc. Capital and Ratings Information Fourth Quarter 2020 (in millions unless otherwise noted, unaudited) December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Long-term Debt Summary Senior notes (1) 3,050$ 2,300$ 2,800$ 2,800$ 2,800$ Finance Lease Liabilities 57 54 51 47 44 Fair value of hedges, unamortized discount and debt issuance costs (10) (10) (16) (14) (13) Total Ameriprise Financial long-term debt 3,097 2,344 2,835 2,833 2,831 Non-recourse debt of consolidated investment entities 1,628 1,376 1,489 1,901 1,913 Total long-term debt 4,725$ 3,720$ 4,324$ 4,734$ 4,744$ Total Ameriprise Financial long-term debt 3,097$ 2,344$ 2,835$ 2,833$ 2,831$ Fair value of hedges, unamortized discount and debt issuance costs 10 10 16 14 13 Finance lease liabilities (57) (54) (51) (47) (44) 3,050$ 2,300$ 2,800$ 2,800$ 2,800$ Total equity (3) 5,729$ 6,693$ 6,500$ 6,067$ 5,867$ Equity of consolidated investment entities (1) (2) (5) (5) (3) Total equity excluding CIEs (2) 5,728$ 6,691$ 6,495$ 6,062$ 5,864$ Total Ameriprise Financial capital 8,826$ 9,037$ 9,335$ 8,900$ 8,698$ 8,778$ 8,991$ 9,295$ 8,862$ 8,664$ Debt to capital Total Ameriprise Financial long-term debt to total Ameriprise Financial capital (1) 35.1 % 25.9 % 30.4 % 31.8 % 32.5 % 34.7 % 25.6 % 30.1 % 31.6 % 32.3 % Ratings (as of December 31, 2020 earnings release date) A.M. Best Company Standard & Poor’s Rating Services Moody’s Investors Service, Inc. Claims Paying Ratings (4) RiverSource Life Insurance Company A+ A+ Aa3 Ameriprise Captive Insurance Company A N/R N/R Debt Ratings (4) Ameriprise Financial, Inc. a- A- A3 (1) The first quarter of 2020 does not include $500 million of debt issuance that settled on April 2, 2020. (2) See non-GAAP financial information on pg 31. Non-GAAP financial measure reconciliations can be found on page 47. (3) Includes accumulated other comprehensive income, net of tax. (4) For the most current ratings information, please see the individual rating agency's website. N/R - Not Rated. Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, finance lease liabilities and equity of CIEs (2) Total Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and finance lease liabilities (2) Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, finance lease liabilities and equity of CIEs (1)(2) 29 of 50
Ameriprise Financial, Inc. Ameriprise Financial Investments (1) Fourth Quarter 2020 (in millions unless otherwise noted, unaudited) December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Cash and cash equivalents 3,709$ 8,730$ 7,654$ 7,441$ 6,751$ Investments - Ending Balances Available-for-Sale securities, net of allowance for credit losses Corporate debt securities 12,187 11,694 12,697 13,022 13,674 Residential mortgage backed securities 10,029 9,715 9,956 10,258 10,029 Commercial mortgage backed securities 5,563 5,395 5,880 6,212 6,088 Asset backed securities 2,006 2,084 2,813 3,088 3,329 Total mortgage and other asset backed securities 17,598 17,194 18,649 19,558 19,446 State and municipal obligations 1,367 1,330 1,365 1,380 1,384 US government and agency obligations 1,680 1,376 1,465 1,680 1,456 Foreign government bonds and obligations 271 252 266 267 262 Other AFS Securities 26 - - 52 61 Total other 3,344 2,958 3,096 3,379 3,163 Total available-for-sale securities, net of allowance for credit losses 33,129 31,846 34,442 35,959 36,283 Commercial mortgage loans 2,797 2,805 2,816 2,778 2,725 Allowance for loan losses (19) (26) (28) (29) (29) Commercial mortgage loans, net 2,778 2,779 2,788 2,749 2,696 Residential mortgage loans - - 21 21 22 Residential mortgage loans, net - - 21 21 22 Policy loans 868 869 856 849 846 Other investments, net of allowance for credit losses 1,140 1,132 1,101 1,159 1,184 Total investments 37,915 36,626 39,208 40,737 41,031 Total cash, cash equivalents and investments 41,624$ 45,356$ 46,862$ 48,178$ 47,782$ Net unrealized gain Available-for-Sale Securities 1,797$ 610$ 2,138$ 2,359$ 2,693$ Allowance for credit losses Available-for-Sale Securities -$ 13$ 14$ 14$ 11$ AFS Fixed Maturity Asset Quality - % AAA 56 % 56 % 56 % 57 % 56 % AA 4 % 4 % 4 % 4 % 3 % AFS securities AA and above 60 % 60 % 60 % 61 % 59 % A 10 % 11 % 11 % 9 % 10 % BBB 28 % 26 % 26 % 25 % 26 % Below investment grade 2 % 3 % 3 % 5 % 5 % Total AFS fixed maturity asset quality - % 100 % 100 % 100 % 100 % 100 % 3 % 3 % 4 % 5 % 5 % (1) Investments excluding investments of CIEs. Fair Value of Below Investment Grade Investments as a % of Total Cash and Investments 30 of 50
Non-GAAP Financial Information These non-GAAP measures include: • Adjusted operating earnings; • Adjusted operating earnings per diluted share; • Adjusted operating effective tax rate; • Adjusted operating return on equity excluding AOCI; • Adjusted operating total net revenues; • Basic adjusted operating earnings per share; • Net adjusted operating earnings; • Net adjusted operating revenues; • Net pretax adjusted operating margin; • Pretax adjusted operating earnings; • Pretax adjusted operating margin; • Return on equity excluding AOCI; • Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, finance lease liabilities and equity of CIEs; • Total Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and finance lease liabilities; • Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, finance lease liabilities and equity of CIEs; • Total equity excluding AOCI; • Total equity excluding CIEs; • Total equity excluding CIEs and AOCI Reclassification Ameriprise Financial, Inc. Ameriprise Financial, Inc. (the Company) prepares its financial statements in accordance with accounting principles generally accepted in the United States (U.S. GAAP). This report includes information on both a U.S. GAAP and non-GAAP basis. Management believes that the presentation of these non-GAAP financial measures best reflect the underlying performance of the Company and facilitate a more meaningful trend analysis. Management uses certain of these non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors. Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and certain compensation-related matters. See the reconciliations on pages 6, 15, 46 and 47. Certain prior period information has been restated to conform to current period presentation. 31 of 50
Ameriprise Financial, Inc. Glossary of Selected Terminology - Segments Advice & Wealth Management - This segment provides financial planning and advice, as well as full service brokerage services, primarily to retail clients through our advisors. These services are centered on long-term, personal relationships between our advisors and our clients and focus on helping clients confidently achieve their financial goals. Our advisors provide a distinctive approach to financial planning and have access to a broad selection of both affiliated and non-affiliated products to help clients meet their financial needs. A significant portion of revenues in this segment is fee-based, driven by the level of client assets, which is impacted by both market movements and net asset flows. We also earn net investment income on owned assets primarily from bank and certificate products. This segment earns revenues (distribution fees) for providing non-affiliated products and intersegment revenues (distribution fees) for providing our affiliated products and services to our retail clients. Intersegment expenses for this segment include expenses for investment management services provided by our Asset Management segment. Asset Management - This segment provides investment management advice and investment products to retail, high net worth and institutional clients on a global scale through Columbia Threadneedle Investments. We provide clients with U.S. domestic individual products through unaffiliated third-party financial institutions and through our Advice & Wealth Management segment, and we provide institutional products and services through our institutional sales force. International retail products for non-U.S. investors are primarily distributed through third-party financial institutions and unaffiliated financial advisors. Retail products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds and variable product funds underlying insurance and annuity separate accounts. Institutional asset management services are designed to meet specific client objectives and may involve a range of products, including those that focus on traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds or alternative strategies, collective funds and property funds. Collateralized loan obligations, hedge funds or alternative strategies and certain private funds are often classified as alternative assets. Revenues in this segment are primarily earned as fees based on managed asset balances, which are impacted by market movements, net asset flows, asset allocation and product mix. We may also earn performance fees from certain accounts where investment performance meets or exceeds certain pre-identified targets. In addition our Asset Management segment provides all intercompany asset management services for Ameriprise Financial subsidiaries. The fees for such services are reflected within the Asset Management segment results through intersegment transfer pricing. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management and Retirement and Protection segments. Retirement & Protection Solutions - This segment provides RiverSource variable and payout annuity products to individual clients and a variety of products to address the protection and risk management needs of our retail clients, including life and disability income. RiverSource Life Insurance Company and RiverSource Life Insurance Co. of New York provide variable annuity products, life and disability income products and issue insurance policies through our advisors. Variable annuity products are designed to help individuals address their asset accumulation and income goals. Protection products are designed to provide a lifetime of solutions that allow clients to protect income, grow assets and give to loved ones or charity. Revenues for our variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for our immediate annuities with a life contingent feature are earned as premium revenue. Revenues for protection products are primarily premiums, fees, and charges we receive to assume insurance-related risk. We also earn net investment income on owned assets supporting reserves for immediate annuities with a non-life contingent feature, for certain guaranteed benefits offered with variable annuities and insurance reserves and on capital supporting the businesses. We also receive fees based on the level of assets supporting variable universal life separate account balances. This segment earns intersegment revenues from fees paid by our Asset Management segment for marketing support and other services provided in connection with the availability of VIT Funds under the variable annuity and variable universal life contracts. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment management services provided by our Asset Management segment. Corporate & Other - This segment consists of net investment income or loss on corporate level assets, including excess capital held in our subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses. It also includes the results of our closed-block long term care business, our closed-block fixed annuity business and IDS Property Casualty Insurance Company which was sold on 10-1-2019 to American Family Insurance. This segment also includes revenues and expenses of consolidated investment entities, which are excluded on an adjusted operating basis. 32 of 50
Ameriprise Financial, Inc. Glossary of Selected Terminology Adjusted Operating Earnings - Net income attributable to Ameriprise Financial excluding the impact of net realized investment gains or losses, net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; mean reversion related impacts (the impact on variable annuity and VUL products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves); the market impact of hedges to offset interest rate 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 the impact of consolidating CIEs. Adjusted Operating Expenses - Total expenses excluding the impact of net realized investment gains or losses, net of DSIC and DAC amortization; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the related DSIC and DAC amortization; mean reversion related impacts (the impact on variable annuity and VUL products for the difference between assumed and updated separate account investment performance on DAC, DSIC and additional insurance benefit reserves); gain or loss on disposal of business that is not considered discontinued operations; integration and restructuring charges; and the impact of consolidating CIEs. Adjusted Operating Net Investment Income - Net investment income excluding net realized investment gains (losses), market impact of hedges on investments and net investment income from consolidated investment entities. Adjusted Operating Return on Allocated Capital - Calculated using adjusted operating earnings subject to the quarterly adjusted operating effective tax rate for the last four quarters in the numerator and the average allocated capital as of the last day of the trailing four quarters and current quarter in the denominator. Adjusted operating earnings for each product line are based on the target level of assets which are based on management's best estimate after considering regulatory and rating agency requirements. Adjusted Operating Total Net Revenues - Total net revenues attributable to Ameriprise Financial excluding the impact of CIEs; integration and restructuring charges; the market impact on indexed universal life benefits, net of unearned revenue amortization and the reinsurance accrual; the mean reversion related impacts; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; net realized investment gains or losses, unearned revenue amortization and the reinsurance accrual. Affiliated General Account Assets - Balance sheet assets from various affiliates managed and reported by Columbia. Allocated Capital - The internal allocation of Total Ameriprise Financial Capital, excluding accumulated other comprehensive income (loss), CIEs, and capital lease obligations, fair value of hedges, debt issuance costs and unamortized discount on Ameriprise Financial long-term debt, is based on management's best estimate of capital required to support the business. Estimates reflect the higher of regulatory or rating agency capital requirements, and include capital held for some stress contingencies. Capital is allocated to our operating segments for the purpose of measuring segment return on allocated capital. For the Corporate & Other segment, allocated capital also includes any capital available after capital has been allocated to the operating segments. Allocated capital is not adjusted for non adjusted operating items except for CIEs. Alternative Assets - Assets reported by the Company that include Hedge Funds and Collateralized Loan Obligations ("CLO"). Ameriprise Financial - Ameriprise Financial includes ownership interests in subsidiaries that are attributable, directly or indirectly, to Ameriprise Financial, Inc. and excludes noncontrolling interests. AOCI - Accumulated other comprehensive income (loss), net of tax. Assets Under Administration - Assets under administration include assets for which we provide administrative services such as client assets invested in other companies' products that we offer outside of our advisory 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. Assets under administration also include 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 do not include assets under advisement, for which we provide model portfolios but do not have full discretionary investment authority. Assets Under Advisement - Assets under advisement include external client assets for which we provide advisory services, such as model portfolios. We earn a fee on these assets but do not have full discretionary authority. Assets Under Management - Assets under management include external client assets for which we provide investment management services, such as the assets of the Columbia Threadneedle funds, assets of institutional clients and advisory assets held in wrap accounts as well as assets managed by sub-advisors selected by us. Assets under management also include 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, RiverSource Variable Product funds held in the separate accounts of our life insurance subsidiaries, and client assets of CIEs. These assets do not include assets under advisement, for which we provide advisory services such as model portfolios, but do not have full discretionary investment authority. Auto & Home Insurance - Personal auto and home protection products marketed directly to customers through marketing affiliates such as Costco Wholesale Corporation. We sell these products through our auto and home subsidiary, IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance). Auto & Home was sold on 10-1-2019 to American Family Insurance. Cash Sales - Cash sales are the dollar value volume indicator that captures gross new cash inflows which generate product revenue streams to our company. This includes primarily "client initiated" activity that results in an incremental increase in assets or premiums in force (but doesn't need to result in time of sale revenue), or activity that doesn't increase assets or premiums in force, but generates "fee revenue". Consolidated Investment Entities ("CIEs") - CIEs include variable interest entities, such as property funds and CLOs, required to be consolidated under current accounting standards. DAC Rollforward Other - We record unrealized securities gains (losses) in accumulated other comprehensive income (loss), net of income tax provision (benefit) and net of adjustments in other asset and liability balances, such as DAC, to reflect the expected impact on their carrying values had the unrealized securities gains (losses) been realized as of the respective balance sheet dates. Deferred Acquisition Costs and Amortization - Deferred acquisition costs ("DAC") represent the direct costs of acquiring new protection and annuity contracts, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of life, disability income, long term care, auto, and home insurance and annuities. DAC also includes deferred direct sales commissions on certain mutual fund products. These costs are deferred to the extent they are directly related to the acquisition of new business and are recoverable from future profits. Life Insurance in Force - The total amount of all life insurance death benefits currently insured by our company. 33 of 50
Ameriprise Financial, Inc. Glossary of Selected Terminology Market Impact of Hedges on Investments - The market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments. Market impact on non-traditional long-duration products - The impact of changes in financial market conditions on benefit costs associated with non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts) accounted for as embedded derivatives, 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, unearned revenue amortization and the reinsurance accrual. The market impact includes the risk margin and nonperformance spread impact. Mean Reversion Related Impacts - The impact on variable annuity and variable universal life for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual, and additional insurance benefit reserves. The updated separate account investment performance includes actual investment performance in the current period and the impact of changes in financial market conditions on the assumptions for future investment performance. Net Adjusted Operating Earnings - Asset management segment pretax adjusted operating earnings less adjusted operating net investment income plus amortization of intangibles. Net Adjusted Operating Revenues - Asset management segment adjusted operating total net revenues less pass through distribution revenue and subadvisory and other pass through revenues. Net Amount at Risk - Life insurance in force less policyholder reserves net of reinsurance. Net Flows - Sales less redemptions and miscellaneous flows which may include reinvested dividends. Net New Flows - Retail fund inflows less outflows. Net Pretax Adjusted Operating Margin - An internal measure designed to calculate adjusted operating margins on a basis comparable to other asset management companies. A ratio representing net adjusted operating earnings as a percentage of net adjusted operating revenues for the asset management segment. Net Realized Investment Gains (Losses) - The net of realized investment gains and realized investment losses, net of DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual. Pretax Adjusted Operating Earnings - Income attributable to Ameriprise Financial excluding net realized investment gains or losses, net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; mean reversion related impacts (the impact on variable annuity and VUL products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves); the market impact of hedges to offset interest rate 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 the impact of consolidating CIEs. Pretax Adjusted Operating Margin - A ratio representing pretax adjusted operating earnings as a percentage of adjusted operating total net revenues. Pretax Income (Loss) Margin - A ratio representing pretax income (loss) as a percentage of total net revenues. Risk Margin and Nonperformance Spread Impact - The portion of the market impact on non traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance products) related to liability valuation adjustments made in accordance with Financial Accounting Standards Board Accounting Standards Codification 820, Fair Value Measurements and Disclosures ("ASC 820") that management considers to be non-economic, including the impact of discounting projected benefits at a rate reflecting a current estimate of RiverSource Life's nonperformance spread, net of related impacts on DAC, DSIC, unearned revenue amortization and the reinsurance accrual. Separate Account - Represents assets and liabilities that are maintained and established primarily for the purpose of funding variable annuity and insurance products. The assets of the separate account are only available to fund the liabilities of the variable annuity contract holders and others with contracts requiring premiums or other deposits to the separate account. Clients elect to invest premiums in stock, bond and/or money market funds depending on their risk tolerance. All investment performance, net of fees, is passed through to the client. Threadneedle - Threadneedle Asset Management Holdings Sarl is a holding company for the London-based Threadneedle companies, which provide investment management products and services. Total Ameriprise Financial Capital - Total equity plus total Ameriprise Financial long-term debt. Total Ameriprise Financial capital is also presented excluding fair value of hedges, unamortized discount, debt issuance costs, capital lease obligations and equity of CIEs. Total Ameriprise Financial Long-term Debt to Total Ameriprise Financial Capital Ratio - A ratio comprised of total Ameriprise Financial long-term debt divided by Ameriprise Financial capital. We also present total Ameriprise Financial long-term debt to total Ameriprise Financial capital ratios excluding fair value of hedges, unamortized discount, debt issuance costs, finance lease liabilities and equity of consolidated investment entities. Wrap Accounts - Wrap accounts enable our clients to purchase other securities such as mutual funds in connection with fee-based “wrap account” programs or services. We offer clients the opportunity to select products that include affiliated and non-affiliated funds. We currently offer both discretionary and non-discretionary wrap accounts. In a discretionary wrap account, an unaffiliated investment advisor or our investment management subsidiary, Columbia Management Investment Advisers, LLC, chooses the underlying investments in the portfolio on behalf of the client. In a non-discretionary wrap account, the client chooses the underlying investments in the portfolio based, to the extent the client elects, in part or whole on the recommendations of their financial advisor. Investors in our wrap accounts generally pay a fee based on the advisory assets held in their wrap accounts. These investors also pay any related fees or costs included in the underlying securities held in that account, such as underlying mutual fund operating expenses. 34 of 50
Exhibit A Statistical Supplement Package Disclosed Items (unaudited) Fourth Quarter 2020 35 of 50
Ameriprise Financial, Inc. Disclosed Items 4 Qtr 2020 Excluded from Adjusted Operating Earnings Advice & Wealth Management Market Impact on Market Impact on Mean Reversion Non-traditional Non-traditional Securities Securities Related Long-duration Securities Long-duration (in millions, unaudited) Gains/(Losses) (1) Gains/(Losses) (1) Impacts (2) Products (3) Gains/(Losses) (1) CIEs (4) Products (3) Revenues Management and financial advice fees -$ -$ -$ -$ -$ (2)$ -$ Distribution fees - - - - - - - Net investment income 3 1 - - 4 21 - Premiums, policy and contract charges - - - - - - - Other revenues - - - 20 - - - Total revenues 3 1 - 20 4 19 - Banking and deposit interest expense - - - - - - - Total net revenues 3 1 - 20 4 19 - Expenses Distribution expenses - - - - - - - Interest credited to fixed accounts - - - (43) - - 2 Benefits, claims, losses and settlement expenses - - (74) 769 - - - Amortization of deferred acquisition costs - - (43) (94) - - - Interest and debt expense - - - - - 12 - General and administrative expense - - - - - 1 - Total expenses - - (117) 632 - 13 2 Pretax segment income (loss) 3$ 1$ 117$ (612)$ 4$ 6$ (2)$ (1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities (2) Increase in DAC and DSIC amortization and increase in reserve accrual for SOP 03-1 reserves for living benefit guarantees (3) Market impact on non-traditional long-duration products include: $20 million increase in unearned revenue reserve amortization and reinsurance accrual from hedged benefits $41 million net benefit in Interest credited related to hedged benefits $769 million net expense related to hedged benefits $94 million net benefit in DAC and DSIC amortization resulting from hedged benefits (4) Reflects revenues and expenses of Consolidated Investment Entities Retirement & Protection Solutions Corporate and Eliminations 36 of 50
Ameriprise Financial, Inc. Disclosed Items 3 Qtr 2020 Excluded from Adjusted Operating Earnings Advice & Wealth Management Market Impact on Mean Reversion Non-traditional Integration/ Securities Securities Related Long-duration Securities Restructuring (in millions, unaudited) Gains/(Losses) (1) Gains/(Losses) (1) Impacts (2) Products (3) Gains/(Losses) (1) CIEs (4) Charges (5) Revenues Management and financial advice fees -$ -$ -$ -$ -$ (1)$ -$ Distribution fees - - - - - - - Net investment income 1 1 - - 2 22 - Premiums, policy and contract charges - - - - - - - Other revenues - - - 1 - - - Total revenues 1 1 - 1 2 21 - Banking and deposit interest expense - - - - - - - Total net revenues 1 1 - 1 2 21 - Expenses Distribution expenses - - - - - - - Interest credited to fixed accounts - - - 4 - - - Benefits, claims, losses and settlement expenses - - (8) 491 - - - Amortization of deferred acquisition costs - - (9) (63) - - - Interest and debt expense - - - - - 11 - General and administrative expense - - - - - 10 1 Total expenses - - (17) 432 - 21 1 Pretax segment income (loss) 1$ 1$ 17$ (431)$ 2$ -$ (1)$ Included in Adjusted Operating Earnings Retirement & Protection Solutions Valuation Valuation Affordable Housing Assumption & Assumption & Investment (in millions, unaudited) Model Changes (6) Model Changes (6) Adjustment (7) Revenues Management and financial advice fees -$ -$ -$ Distribution fees - - - Net investment income - - (2) Premiums - - - Other revenues 2 (3) - Total revenues 2 (3) (2) Banking and deposit interest expense - - - Adjusted operating total net revenues 2 (3) (2) Expenses Distribution expenses - - - Interest credited to fixed accounts - - - Benefits, claims, losses and settlement expenses 189 148 - Amortization of deferred acquisition costs 108 (4) - Interest and debt expense - - - General and administrative expense - - - Adjusted operating expenses 297 144 - (295)$ (147)$ (2)$ (1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities (2) Increase in DAC and DSIC amortization and increase in reserve accrual for SOP 03-1 reserves for living benefit guarantees (3) Market impact on non-traditional long-duration products include: $1 million increase in unearned revenue reserve amortization and reinsurance accrual from hedged benefits $4 million net expense in Interest credited related to hedged benefits $491 million net expense related to hedged benefits $63 million net benefit in DAC and DSIC amortization resulting from hedged benefits (4) Reflects revenues and expenses of Consolidated Investment Entities (5) Restructing charges related to the sale of IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance) (6) Net pretax impact of model changes and the annual review/updating of valuation assumptions, including the annual long term care review (7) Adjustment for an affordable housing investment to align it with the remaining tax benefit cash flows Corporate and Eliminations Pretax adjusted operating earnings Corporate Retirement & Protection Solutions 37 of 50
Ameriprise Financial, Inc. Disclosed Items 2 Qtr 2020 Excluded from Adjusted Operating Earnings Advice & Wealth Management Asset Management Market Impact on Market Impact on Mean Reversion Non-traditional Non-traditional Integration/ Securities Securities Related Long-duration Securities Securities Long-duration Restructuring (in millions, unaudited) Gains/(Losses) (1) Gains/(Losses) (1) Impacts (2) Products (3) Gains/(Losses) (1) CIEs (4) Gains/(Losses) (1) Products (3) Charges (5) Revenues Management and financial advice fees -$ -$ -$ -$ -$ (2)$ -$ -$ -$ Distribution fees - - - - - - - - - Net investment income 1 (4) - - (1) 17 1 - - Premiums, policy and contract charges - - - - - - - - - Other revenues - - 1 (66) - - - - - Total revenues 1 (4) 1 (66) (1) 15 1 - - Banking and deposit interest expense - - - - - - - - - Total net revenues 1 (4) 1 (66) (1) 15 1 - - Expenses Distribution expenses - - - - - - - - - Interest credited to fixed accounts - - - 97 - - - 4 - Benefits, claims, losses and settlement expenses - - 5 1,211 - - - - - Amortization of deferred acquisition costs - - (18) (264) (1) - - (1) - Interest and debt expense - - - - - 15 - - - General and administrative expense - - - - - - - - 2 Total expenses - - (13) 1,044 (1) 15 - 3 2 Pretax segment income (loss) 1$ (4)$ 14$ (1,110)$ -$ -$ 1$ (3)$ (2)$ (1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities (2) Increase in DAC and DSIC amortization and increase in reserve accrual for SOP 03-1 reserves for living benefit guarantees (3) Market impact on non-traditional long-duration products include: $66 million decrease in unearned revenue reserve amortization and reinsurance accrual from hedged benefits $101 million net expense in Interest credited related to hedged benefits $1,211 million net expense related to hedged benefits $265 million net benefit in DAC and DSIC amortization resulting from hedged benefits (4) Reflects revenues and expenses of Consolidated Investment Entities (5) Restructing charges related to the sale of IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance) Corporate and EliminationsRetirement & Protection Solutions 38 of 50
Ameriprise Financial, Inc. Disclosed Items 1 Qtr 2020 Excluded from Adjusted Operating Earnings Advice & Wealth Management Asset Management Market Impact on Market Impact on Mean Reversion Non-traditional Non-traditional Securities Securities Related Long-duration Securities Long-duration Securities Integration/Restructuring (in millions, unaudited) Gains/(Losses) (1) Gains/(Losses) (1) Impacts (2) Products (3) Gains/(Losses) (1) CIEs (4) Products (3) Gains/(Losses) (1) Charges (5) Revenues Management and financial advice fees -$ -$ -$ -$ -$ (1)$ -$ -$ -$ Distribution fees - - - - - - - - - Net investment income (1) (1) - - (11) 17 - (6) - Premiums, policy and contract charges - - - - - - - - - Other revenues - - (1) 55 (1) - - - - Total revenues (1) (1) (1) 55 (12) 16 - (6) - Banking and deposit interest expense - - - - - - - - - Total net revenues (1) (1) (1) 55 (12) 16 - (6) - Expenses Distribution expenses - - - - - - - - - Interest credited to fixed accounts - - - (71) - - (4) - - Benefits, claims, losses and settlement expenses - - 24 (2,070) - - - - - Amortization of deferred acquisition costs - - 36 416 - - 1 - - Interest and debt expense - - - - - 17 - - - General and administrative expense - - - - - 1 - - 1 Total expenses - - 60 (1,725) - 18 (3) - 1 Pretax segment income (loss) (1)$ (1)$ (61)$ 1,780$ (12)$ (2)$ 3$ (6)$ (1)$ Included in Adjusted Operating Earnings Asset Management Performance Fee (in millions, unaudited) Correction (6) Revenues Management and financial advice fees (19)$ Distribution fees - Net investment income - Premiums - Other revenues - Gain on Disposal of Business - Total revenues (19) Banking and deposit interest expense - Adjusted operating total net revenues (19) Expenses Distribution expenses - Interest credited to fixed accounts - Benefits, claims, losses and settlement expenses - Amortization of deferred acquisition costs - Interest and debt expense - General and administrative expense (4) Adjusted operating expenses (4) (15)$ Tax benefit (expense) (1) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities (2) Increase in DAC and DSIC amortization and increase in reserve accrual for SOP 03-1 reserves for living benefit guarantees (3) Market impact on non-traditional long-duration products include: $55 million increase in unearned revenue reserve amortization and reinsurance accrual from hedged benefits $75 million net benefit in Interest credited related to hedged benefits $2,070 million net benefit related to hedged benefits $417 million net expense in DAC and DSIC amortization resulting from hedged benefits (4) Reflects revenues and expenses of Consolidated Investment Entities (5) Restructing charges related to the sale of IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance) (6) Performance fee correction from prior periods for the UK property funds. Pretax adjusted operating earnings Corporate and EliminationsRetirement & Protection Solutions 39 of 50
Ameriprise Financial, Inc. Disclosed Items 4 Qtr 2019 Excluded from Adjusted Operating Earnings Market Impact on Mean Reversion Non-traditional Gain on Market Impact Related Long-duration Securities the Disposal Securities of Hedges Integration/Restructuring (in millions, unaudited) Impacts (1) Products (2) Gains/(Losses) (3) of Business (4) CIEs (5) Gains/(Losses) (3) on Investments (6) Charges (7) Revenues Management and financial advice fees -$ -$ -$ -$ (1)$ -$ -$ -$ Distribution fees - - - - - - - - Net investment income - - (3) - 22 1 2 - Premiums, policy and contract charges - - - - - - - - Other revenues - 8 - - - - - - Gain on disposal of business - - - 213 - - - - Total revenues - 8 (3) 213 21 1 2 - Banking and deposit interest expense - - - - - - - - Total net revenues - 8 (3) 213 21 1 2 - Expenses Distribution expenses - - - - - - - - Interest credited to fixed accounts - (13) - - - - - - Benefits, claims, losses and settlement expenses (24) 433 - - - - - - Amortization of deferred acquisition costs (15) (54) - - - - - - Interest and debt expense - - - - 20 - - - General and administrative expense - - - - - - - 6 Total expenses (39) 366 - - 20 - - 6 Pretax segment income (loss) 39$ (358)$ (3)$ 213$ 1$ 1$ 2$ (6)$ Included in Adjusted Operating Earnings Consolidated Affordable Housing Excess Tax Benefits Investment from Share- (in millions, unaudited) Severance Adjustment (8) Based Payments (9) Revenues Management and financial advice fees -$ -$ -$ Distribution fees - - - Net investment income - (25) - Premiums - - - Other revenues - - - Gain on Disposal of Business - - - Total revenues - (25) - Banking and deposit interest expense - - - Adjusted operating total net revenues - (25) - Expenses Distribution expenses - - - Interest credited to fixed accounts - - - Benefits, claims, losses and settlement expenses - - - Amortization of deferred acquisition costs - - - Interest and debt expense - - - General and administrative expense 11 - - Adjusted operating expenses 11 - - (11)$ (25)$ -$ Tax benefit (expense) 3$ (1) Increase in DAC and DSIC amortization and increase in reserve accrual for SOP 03-1 reserves for living benefit guarantees (2) Market impact on non-traditional long-duration products include: $8 million increase in unearned revenue reserve amortization and reinsurance accrual from hedged benefits $13 million net benefit in Interest credited related to hedged benefits $2,070 million net benefit related to hedged benefits $417 million net expense in DAC and DSIC amortization resulting from hedged benefits (3) Pretax net realized investment gains/(losses) on Available-for-Sale securities and other securities (4) Reflects gain on the sale of Auto and Home (5) Reflects revenues and expenses of Consolidated Investment Entities (6) The market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments (7) Restructing charges related to the sale of IDS Property Casualty Insurance Company (doing business as Ameriprise Auto & Home Insurance) (8) Adjustment for an affordable housing investment to align it with the remaining tax benefit cash flows (9) Excess tax benefits (deficiencies) related to share-based compensation Corporate Pretax adjusted operating earnings Corporate and EliminationsRetirement & Protection Solutions 40 of 50
Exhibit B Statistical Supplement Package (unaudited) Fourth Quarter 2020 Corporate & Other Segment Details 41 of 50
Ameriprise Financial, Inc. Corporate Excluding LTC, FA and Auto & Home Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Revenues Management and financial advice fees -$ -$ -$ -$ -$ -$ -$ -$ - -$ - -$ - Distribution fees - - - - - - - - - - - - - Net investment income (26) (10) (22) (14) (13) (69) (59) 13 50 % 10 14 % 1 7 % Premiums, policy and contract charges (1) - - - - (1) - 1 # 1 # - - Other revenues 5 6 4 3 2 17 15 (3) (60)% (2) (12)% (1) (33)% Total revenues (22) (4) (18) (11) (11) (53) (44) 11 50 % 9 17 % - - Banking and deposit interest expense 3 1 1 - 1 8 3 (2) (67)% (5) (63)% 1 - Adjusted operating total net revenues (25) (5) (19) (11) (12) (61) (47) 13 52 % 14 23 % (1) (9)% Expenses Distribution expenses - - - - - - - - - - - - - Interest credited to fixed accounts - - - - - - - - - - - - - Benefits, claims, losses and settlement expenses - - - 1 (1) - - (1) - - - (2) # Amortization of deferred acquisition costs - - - - - - - - - - - - - Interest and debt expense 10 9 9 6 10 33 34 - - 1 3 % 4 67 % General and administrative expense 68 38 49 40 58 239 185 (10) (15)% (54) (23)% 18 45 % Adjusted operating expenses 78 47 58 47 67 272 219 (11) (14)% (53) (19)% 20 43 % Pretax adjusted operating earnings (loss) (103)$ (52)$ (77)$ (58)$ (79)$ (333)$ (266)$ 24$ 23 % 67$ 20 % (21)$ (36)% # Variance equal to or greater than 100%. Corporate Excluding Long Term Care, Fixed Annuities and Auto & Home Adjusted Operating Income Statements 42 of 50
Ameriprise Financial, Inc. Corporate Segment - Long Term Care Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Long Term Care Adjusted Operating Income Statements Revenues Management and financial advice fees -$ -$ -$ -$ -$ -$ -$ -$ - -$ - -$ - Distribution fees - - - - - - - - - - - - - Net investment income 41 42 40 40 38 169 160 (3) (7)% (9) (5)% (2) (5)% Premiums, policy and contract charges 28 25 25 26 26 105 102 (2) (7)% (3) (3)% - - Other revenues - - - - - - - - - - - - - Total revenues 69 67 65 66 64 274 262 (5) (7)% (12) (4)% (2) (3)% Banking and deposit interest expense - - - - - - - - - - - - - Adjusted operating total net revenues 69 67 65 66 64 274 262 (5) (7)% (12) (4)% (2) (3)% Expenses Distribution expenses (4) (2) (3) (3) (3) (12) (11) 1 25 % 1 8 % - - Interest credited to fixed accounts - - - - - - - - - - - - - Benefits, claims, losses and settlement expenses 64 57 42 194 39 246 332 (25) (39)% 86 35 % (155) (80)% Amortization of deferred acquisition costs - - - - - - - - - - - - - Interest and debt expense 3 3 2 3 1 13 9 (2) (67)% (4) (31)% (2) (67)% General and administrative expense 8 7 7 7 6 27 27 (2) (25)% - - (1) (14)% Adjusted operating expenses 71 65 48 201 43 274 357 (28) (39)% 83 30 % (158) (79)% Pretax adjusted operating earnings (loss) (2)$ 2$ 17$ (135)$ 21$ -$ (95)$ 23$ # (95)$ - 156$ # Net Policyholder Long Term Care Reserves (1) Active Life Reserves 2,256$ 2,061$ 2,249$ 2,472$ 2,539$ 2,256$ 2,539$ 283$ 13 % 283$ 13 % 67$ 3 % Disabled Life Reserves 565 574 569 568 564 565 564 (1) - (1) - (4) (1)% Total net policyholder long term care reserves 2,821$ 2,635$ 2,818$ 3,040$ 3,103$ 2,821$ 3,103$ 282$ 10 % 282$ 10 % 63$ 2 % (1) SFAS 115 requires GAAP reserves to include all unrealized gains on available for sale securities in the portfolio to be reported as if they were realized on the last day of the accounting period with all financial impacts flowing through other comprehensive income. # Variance equal to or greater than 100%. 43 of 50
Ameriprise Financial, Inc. Corporate Segment - Fixed Annuities Fourth Quarter 2020 Prior Year Comparisons (in millions unless otherwise noted, unaudited) Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Fixed Annuities Segment Adjusted Operating Income Statements Revenues Management and financial advice fees -$ -$ -$ -$ -$ -$ -$ -$ - -$ - -$ - Distribution fees 1 - - - - 1 - (1) # (1) # - - Net investment income 77 72 70 67 67 334 276 (10) (13)% (58) (17)% - - Premiums, policy and contract charges - - - - - - - - - - - - - Other revenues 15 15 15 10 15 48 55 - - 7 15 % 5 50 % Total revenues 93 87 85 77 82 383 331 (11) (12)% (52) (14)% 5 6 % Banking and deposit interest expense - - - - - - - - - - - - - Adjusted operating total net revenues 93 87 85 77 82 383 331 (11) (12)% (52) (14)% 5 6 % Expenses Distribution expenses 1 1 1 1 1 5 4 - - (1) (20)% - - Interest credited to fixed accounts 68 66 64 66 65 270 261 (3) (4)% (9) (3)% (1) (2)% Benefits, claims, losses and settlement expenses 1 2 - 9 1 3 12 - - 9 # (8) (89)% Amortization of deferred acquisition costs 3 2 3 (2) 3 13 6 - - (7) (54)% 5 # Interest and debt expense 5 7 5 6 5 23 23 - - - - (1) (17)% General and administrative expense 9 9 9 6 9 35 33 - - (2) (6)% 3 50 % Adjusted operating expenses 87 87 82 86 84 349 339 (3) (3)% (10) (3)% (2) (2)% Pretax adjusted operating earnings 6$ -$ 3$ (9)$ (2)$ 34$ (8)$ (8)$ # (42)$ # 7$ 78 % Pretax adjusted operating margin 6.5 % - 3.5 % (11.7)% (2.4)% 8.9 % (2.4)% (8.9)% (11.3)% 9.3 % Fixed Deferred Annuities Rollforward Beginning balance 8,409$ 8,306$ 8,165$ 8,116$ 8,042$ 8,714$ 8,306$ (367)$ (4)% (408)$ (5)% (74)$ (1)% Deposits 44 37 28 14 13 292 92 (31) (70)% (200) (68)% (1) (7)% Withdrawals and terminations (219) (231) (149) (156) (163) (978) (699) 56 26 % 279 29 % (7) (4)% Net flows (175) (194) (121) (142) (150) (686) (607) 25 14 % 79 12 % (8) (6)% Policyholder interest credited 72 53 72 68 72 277 265 - - (12) (4)% 4 6 % Other - - - - - 1 - - - (1) # - - Total ending balance - contract accumulation values 8,306$ 8,165$ 8,116$ 8,042$ 7,964$ 8,306$ 7,964$ (342)$ (4)% (342)$ (4)% (78)$ (1)% Tax Equivalent Spread - Fixed Deferred Annuities (1) Gross rate of return on invested assets (2) 3.9 % 3.7 % 3.6 % 3.4 % 3.3 % 4.0 % 3.5 % (0.6)% (0.5)% (0.1)% Crediting rate excluding capitalized interest (3.3)% (3.3)% (3.3)% (3.3)% (3.3)% (3.3)% (3.3)% - - - Tax equivalent margin spread 0.6 % 0.4 % 0.3 % 0.1 % - 0.7 % 0.2 % (0.6)% (0.5)% (0.1)% Total Fixed Deferred Annuities DAC Beginning balance 53$ 54$ 68$ 44$ 52$ 81$ 54$ (1)$ (2)% (27)$ (33)% 8$ 18 % Capitalization 1 1 - - - 7 1 (1) # (6) (86)% - - Non adjusted operating amortization - (1) 1 - - - - - - - - - - Amortization per income statement (3) (3) (2) (2) (3) (16) (10) - - 6 38 % (1) (50)% Other - - - 4 - 3 4 - - 1 33 % (4) # Total ending balance 51$ 51$ 67$ 46$ 49$ 75$ 49$ (2)$ (4)% (26)$ (35)% 3$ 7 % (1) Attributable to interest sensitive products only, which has been approximately 99% of the total ending fixed deferred annuities accumulation values in the periods reported. The asset earnings rate is a calculated yield based on specifically assigned assets. (2) # Variance equal to or greater than 100%. In the 4th quarter of 2019 through the 4th quarter of 2020, the Gross rates of return on invested assets were impacted by outstanding repurchase agreements. Without these positions, the Gross rates of return on invested assets would have been 3.9%, 3.7%, 3.5%, 3.4% and 3.3% respectively. Year-to-Date 44 of 50
Exhibit C Statistical Supplement Package (unaudited) Fourth Quarter 2020 Non-GAAP Financial Measure Reconciliations 45 of 50
Ameriprise Financial, Inc. Non-GAAP Financial Measure Reconciliations Fourth Quarter 2020 (in millions unless otherwise noted, unaudited) 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Return on Equity Net income (last twelve months) 1,893$ 3,534$ 2,503$ 1,820$ 1,534$ 1,893$ 1,534$ Less adjustments (1) (297) 1,175 371 58 (236) (297) (236) Adjusted operating earnings (last twelve months) 2,190$ 2,359$ 2,132$ 1,762$ 1,770$ 2,190$ 1,770$ 5,837$ 6,058$ 6,190$ 6,197$ 6,171$ 5,837$ 6,171$ Less AOCI, net of tax (five point quarter end average) 122 121 194 243 301 122 301 5,715 5,937 5,996 5,954 5,870 5,715 5,870 1 1 - - 1 1 1 Adjusted operating equity (five point quarter end average) 5,714$ 5,936$ 5,996$ 5,954$ 5,869$ 5,714$ 5,869$ Return on equity excluding AOCI 33.1% 59.5% 41.7% 30.6% 26.1% 33.1% 26.1% Adjusted operating return on equity excluding AOCI 38.3% 39.7% 35.6% 29.6% 30.2% 38.3% 30.2% Pretax income 534$ 2,351$ (526)$ (184)$ 190$ 2,232$ 1,831$ Less adjustments (2) (324) 1,699 (1,103) (411) (483) (589) (298) Pretax adjusted operating earnings 858$ 652$ 577$ 227$ 673$ 2,821$ 2,129$ Income tax provision 71$ 315$ 13$ (44)$ 13$ 339$ 297$ Adjusted operating income tax provision 94$ (42)$ 244$ 43$ 114$ 418$ 359$ Effective tax rate 13.2% 13.4% -2.4% 23.5% 6.5% 15.2% 16.2% Adjusted operating effective tax rate 14.6% -6.4% 42.3% 18.9% 16.9% 16.0% 16.9% (1) (2) Adjustments reflect net realized investment gains or losses, net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long- duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; mean reversion related impacts (the impact on variable annuity and VUL products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves); the market impact of hedges to offset interest rate 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 the impact of consolidating CIEs. Adjusted Operating Earnings - Net income attributable to Ameriprise Financial excluding the impact of net realized investment gains or losses, net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; mean reversion related impacts (the impact on variable annuity and VUL products for the difference between assumed and updated separate account investment performance on DAC, DSIC, unearned revenue amortization, reinsurance accrual and additional insurance benefit reserves); the market impact of hedges to offset interest rate 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 the impact of consolidating CIEs. After-tax is calculated using the statutory tax rate of 21%. Total Ameriprise Financial shareholders' equity (five point quarter end average) Total Ameriprise Financial shareholders' equity excluding AOCI (five point quarter end average) Less equity impacts attributable to the consolidated investment entities (five point quarter end average) Effective Tax Rate Year-to-date 46 of 50
Ameriprise Financial, Inc. Non-GAAP Financial Measure Reconciliations Fourth Quarter 2020 (in millions unless otherwise noted, unaudited) December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Senior notes (1) 3,050$ 2,300$ 2,800$ 2,800$ 2,800$ 57 54 51 47 44 (10) (10) (16) (14) (13) Total Ameriprise Financial long-term debt 3,097 2,344 2,835 2,833 2,831 (10) (10) (16) (14) (13) 57 54 51 47 44 3,050$ 2,300$ 2,800$ 2,800$ 2,800$ Equity Summary Total equity 5,729$ 6,693$ 6,500$ 6,067$ 5,867$ 1 2 5 5 3 Total equity excluding CIEs 5,728$ 6,691$ 6,495$ 6,062$ 5,864$ Capital Summary 3,097$ 2,344$ 2,835$ 2,833$ 2,831$ 5,729 6,693 6,500 6,067 5,867 Total Ameriprise Financial capital 8,826 9,037 9,335 8,900 8,698 1 2 5 5 3 (10) (10) (16) (14) (13) 57 54 51 47 44 Total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, finance lease liabilities and equity of CIEs 8,778$ 8,991$ 9,295$ 8,862$ 8,664$ 35.1% 25.9% 30.4% 31.8% 32.5% 34.7% 25.6% 30.1% 31.6% 32.3% 5,729$ 6,693$ 6,500$ 6,067$ 5,867$ 262 (295) 394 516 629 1 (1) (1) - 5 - 3 6 5 (2) 5,729$ 6,693$ 6,500$ 6,067$ 5,867$ 262 (295) 394 516 629 5,467$ 6,988$ 6,106$ 5,551$ 5,238$ 5,729$ 6,693$ 6,500$ 6,067$ 5,867$ 1 (1) (1) - 5 262 (295) 394 516 629 5,466$ 6,989$ 6,107$ 5,551$ 5,233$ (1) The first quarter of 2020 does not include $500 million of debt issuance that settled on April 2, 2020. Finance lease liabilities Total equity Total Ameriprise Financial long-term debt excluding fair value of hedges, unamortized discount, debt issuance costs and finance lease liabilities Less finance lease liabilities Fair value of hedges, unamortized discount and debt issuance costs Total equity excluding CIEs and AOCI Total equity Total equity excluding AOCI Retained earnings attributable to CIEs Total equity Less equity of consolidated investment entities Less finance lease liabilities Less AOCI Less retained earnings attributable to CIEs Less AOCI Less fair value of hedges, unamortized discount and debt issuance costs Total Ameriprise Financial long-term debt Total Ameriprise Financial long-term debt to total Ameriprise Financial capital (1) Total Ameriprise Financial long-term debt to total Ameriprise Financial capital excluding fair value of hedges, unamortized discount, debt issuance costs, finance lease liabilities and equity of CIEs (1) Less equity of consolidated investment entities AOCI attributable to CIEs Less fair value of hedges, unamortized discount and debt issuance costs Total equity AOCI Long-term Debt Summary 47 of 50
Exhibit D Statistical Supplement Package (unaudited) Fourth Quarter 2020 Revenue Detail by Product 48 of 50
Ameriprise Financial, Inc. Advice & Wealth Management Segment Revenue From Contracts With Customers Fourth Quarter 2020 Prior Year Comparisons (in millions, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Revenues Management and financial advice fees: Asset management fees: Retail -$ -$ -$ -$ -$ -$ -$ -$ - -$ - -$ - Institutional - - - - - - - - - - - - - Advisory fees 839 854 797 907 953 3,156 3,511 114 14 % 355 11 % 46 5 % Financial planning fees 97 81 86 81 100 330 348 3 3 % 18 5 % 19 23 % Transaction and other fees 89 89 86 89 88 355 352 (1) (1)% (3) (1)% (1) (1)% Total management and financial advice fees 1,025 1,024 969 1,077 1,141 3,841 4,211 116 11 % 370 10 % 64 6 % Distribution Fees: Mutual funds 190 184 170 186 197 726 737 7 4 % 11 2 % 11 6 % Insurance and annuity 226 208 196 202 229 875 835 3 1 % (40) (5)% 27 13 % Other products 146 156 87 91 96 680 430 (50) (34)% (250) (37)% 5 5 % Total distribution fees 562 548 453 479 522 2,281 2,002 (40) (7)% (279) (12)% 43 9 % Other revenues 43 47 47 44 44 177 182 1 2 % 5 3 % - - Total revenue from contracts with customers 1,630 1,619 1,469 1,600 1,707 6,299 6,395 77 5 % 96 2 % 107 7 % Revenue from other sources 110 101 86 77 75 436 339 (35) (32)% (97) (22)% (2) (3)% Total segment gross revenues 1,740 1,720 1,555 1,677 1,782 6,735 6,734 42 2 % (1) - 105 6 % Banking and deposit interest expense 30 25 18 10 6 136 59 (24) (80)% (77) (57)% (4) (40)% Total segment net revenues 1,710 1,695 1,537 1,667 1,776 6,599 6,675 66 4 % 76 1 % 109 7 % Less: intersegment revenues 235 222 208 219 244 924 893 9 4 % (31) (3)% 25 11 % Total net revenues 1,475$ 1,473$ 1,329$ 1,448$ 1,532$ 5,675$ 5,782$ 57$ 4 % 107$ 2 % 84$ 6 % 49 of 50
Ameriprise Financial, Inc. Asset Management Segment Revenue From Contracts With Customers Fourth Quarter 2020 Prior Year Comparisons (in millions, unaudited) Year-to-Date Qtr Chg - 4Q YTD Chg - 4Q Seq Qtr Chg - 4Q 4 Qtr 2019 1 Qtr 2020 2 Qtr 2020 3 Qtr 2020 4 Qtr 2020 2019 2020 Diff. % Diff. % Diff. % Revenues Management and financial advice fees: Asset management fees: Retail 464$ 447$ 417$ 466$ 492$ 1,783$ 1,822$ 28$ 6 % 39$ 2 % 26$ 6 % Institutional 145 85 101 122 134 495 442 (11) (8)% (53) (11)% 12 10 % Advisory fees - - - - - - - - - - - - - Financial planning fees - - - - - - - - - - - - - Transaction and other fees 48 47 45 47 51 189 190 3 6 % 1 1 % 4 9 % Total management and financial advice fees 657 579 563 635 677 2,467 2,454 20 3 % (13) (1)% 42 7 % Distribution Fees: Mutual funds 61 60 55 59 63 237 237 2 3 % - - 4 7 % Insurance and annuity 44 43 41 45 45 171 174 1 2 % 3 2 % - - Other products - - - - - - - - - - - - - Total distribution fees 105 103 96 104 108 408 411 3 3 % 3 1 % 4 4 % Other revenues - 1 1 - - 4 2 - - (2) (50)% - - Total revenue from contracts with customers 762 683 660 739 785 2,879 2,867 23 3 % (12) - 46 6 % Revenue from other sources 8 3 8 - 13 34 24 5 63 % (10) (29)% 13 - Total segment gross revenues 770 686 668 739 798 2,913 2,891 28 4 % (22) (1)% 59 8 % Banking and deposit interest expense - - - - - - - - - - - - - Total segment net revenues 770 686 668 739 798 2,913 2,891 28 4 % (22) (1)% 59 8 % Less: intersegment revenues 15 13 13 13 14 55 53 (1) (7)% (2) (4)% 1 8 % Total net revenues 755$ 673$ 655$ 726$ 784$ 2,858$ 2,838$ 29$ 4 % (20)$ (1)% 58$ 8 % 50 of 50
