Regulatory Requirements

12 Months Ended

Dec. 31, 2023

Restrictions on the transfer of funds exist under regulatory requirements applicable to certain of the Company’s operating subsidiaries.

Insurance subsidiaries

The National Association of Insurance Commissioners (“NAIC”) defines Risk-Based Capital (“RBC”) requirements for insurance companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory actions designed to protect policyholders. These requirements apply to the Company’s life insurance companies. The Company’s life insurance companies each met their respective minimum RBC requirements.

The Company’s life insurance companies are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of their respective states of domicile, which vary materially from GAAP. Prescribed statutory accounting practices include publications of the NAIC, as well as state laws, regulations and general administrative rules. The more significant differences from GAAP include charging policy acquisition costs to expense as incurred, establishing annuity and insurance reserves using different actuarial methods and assumptions, valuing investments on a different basis and excluding certain assets from the balance sheet by charging them directly to surplus, such as a portion of the net deferred income tax assets.

State insurance statutes contain limitations as to the amount of dividends that insurers may make without providing prior notification to state regulators. For RiverSource Life, payments in excess of unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life’s primary regulator, and are subject to potential disapproval. RiverSource Life’s statutory unassigned deficit was $582 million and $679 million as of December 31, 2023 and 2022, respectively.

In addition, dividends whose fair market value, together with that of other dividends made within the preceding 12 months, exceed the greater of the previous year’s statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as “extraordinary dividends.” Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Statutory capital and surplus for RiverSource Life was $3.1 billion as of both December 31, 2023 and 2022.

Statutory net gain from operations and net income are summarized as follows:


	Years Ended December 31,
	2023		2022		2021
	(in millions)
RiverSource Life
Statutory net gain from operations	$	1,331	$	1,615	$	1,366
Statutory net income	845		1,769		253

Government debt securities of $4 million as of both December 31, 2023 and 2022 held by the Company’s life insurance subsidiaries were on deposit with various states as required by law.

Broker-dealer subsidiaries

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

The following table presents the net capital position of both AEIS and AFS:


	December 31,
	2023			2022
	(in millions, except percentages)
AEIS
Net capital as a percent of aggregate debit items	11.62		%	15.76		%

Net capital	$	171		$	208
Less: required net capital	29			26
Excess net capital	$	142		$	182

AFS
Net capital	$	101		$	90
Less: required net capital	—			—
Excess net capital	$	101		$	90

On February 14, 2024, AEIS and AFS paid cash dividends of $40 million and $20 million, respectively, to AMPF Holding, LLC. These dividends were declared subsequent to the balance sheet date.

Bank subsidiary

The Company is a savings and loan holding company that is subject to various banking regulations. However, the Company is not currently subject to the risk-based capital requirements of the Federal Reserve Bank because it is substantially engaged in insurance activities.

Ameriprise Bank is subject to regulation by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation in its role as insurer of its deposits. Ameriprise Bank is required to maintain minimum amounts and ratios of Total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), Tier 1 Capital to average assets (as defined), and under rules defined under the Basel III capital framework, Common equity Tier 1 capital (“CEIT”) to risk-weighted assets. Ameriprise Bank calculates these ratios under the Basel III standardized approach in order to assess compliance with both regulatory requirements and Ameriprise Bank’s internal capital policies. As permitted under the rules of the Basel III capital framework, the Company has elected to exclude AOCI from its calculation of regulatory capital. Ameriprise Bank’s requirements to maintain adequate capital ratios in relation to its risk-weighted asset levels could affect its ability to take capital actions, such as the payment of dividends. As of December 31, 2023, Ameriprise Bank’s capital levels exceeded the capital conservation buffer requirement and was categorized as “well-capitalized.”

To meet requirements for capital adequacy purposes or to be categorized as “well-capitalized,”Ameriprise Bank must maintain minimum CEIT, Tier 1 capital, Total capital and Tier 1 leverage amounts and ratios as set forth in the following table:


Regulatory Capital	Actual				Requirement for capital adequacy purposes				To be well capitalized under regulatory provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(in millions, except percentages)
At December 31, 2023
Common equity Tier 1 capital	$	1,715	31.72	%	$	243	4.50	%	$	351	6.50	%
Tier 1 capital	1,715		31.72		324		6.00		433		8.00
Total capital	1,724		31.89		433		8.00		541		10.00
Tier 1 leverage	1,715		7.44		922		4.00		1,153		5.00

At December 31, 2022
Common equity Tier 1 capital	$	1,542	30.18	%	$	230	4.50	%	$	332	6.50	%
Tier 1 capital	1,542		30.18		307		6.00		409		8.00
Total capital	1,546		30.26		409		8.00		511		10.00
Tier 1 leverage	1,542		7.72		799		4.00		999		5.00

Other subsidiaries

Ameriprise Certificate Company (“ACC”) is registered as an investment company under the Investment Company Act of 1940 (the “1940 Act”). ACC markets and sells investment certificates to clients. ACC is subject to various capital requirements under the 1940 Act, laws of the State of Minnesota and understandings with the Securities and Exchange Commission (“SEC”) and the Minnesota Department of Commerce. The terms of the investment certificates issued by ACC and the provisions of the 1940 Act also require the maintenance by ACC of qualified assets. Under the provisions of its certificates and the 1940 Act, ACC was required to have qualified assets (as that term is defined in Section 28(b) of the 1940 Act) in the amount of $13.5 billion and $9.3 billion as of December 31, 2023 and 2022, respectively. ACC had qualified assets of $14.3 billion and $9.9 billion as of December 31, 2023 and 2022, respectively.

Ameriprise Trust Company is subject to capital adequacy requirements under the laws of the State of Minnesota as enforced by the Minnesota Department of Commerce.

Required capital for Columbia Threadneedle Investments UK International Ltd. is predominantly based on the requirements specified by its regulator, the Financial Conduct Authority (“FCA”), under its Capital Adequacy Requirements for investment firms.