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AMERIPRISE FINANCIAL, INC.

(AMP)
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AMERIPRISE FINANCIAL INC MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)

08/01/2022 | 04:00pm EDT
The following discussion and analysis of our consolidated results of operations
and financial condition should be read in conjunction with the "Forward-Looking
Statements" that follow and our Consolidated Financial Statements and Notes
presented in Item 1. Our Management's Discussion and Analysis should be read in
conjunction with our Annual Report on Form 10-K for the year ended December 31,
2021, filed with the Securities and Exchange Commission ("SEC") on February 25,
2022 ("2021 10-K"), as well as our current reports on Form 8-K and other
publicly available information. References below to "Ameriprise Financial,"
"Ameriprise," the "Company," "we," "us," and "our" refer to Ameriprise
Financial, Inc. exclusively, to our entire family of companies, or to one or
more of our subsidiaries.

Overview

Ameriprise Financial is a diversified financial services company with a more
than 125-year history of providing financial solutions. We are a long-standing
leader in financial planning and advice with $1.2 trillion in assets under
management and administration as of June 30, 2022. We offer a broad range of
products and services designed to achieve individual and institutional clients'
financial objectives.

The products and services we provide retail clients and, to a lesser extent,
institutional clients, are the primary source of our revenues and net income.
Revenues and net income are significantly affected by investment performance and
the total value and composition of assets we manage and administer for our
retail and institutional clients as well as the distribution fees we receive
from other companies. These factors, in turn, are largely determined by overall
investment market performance and the depth and breadth of our individual
client relationships.

We operate our business in the broader context of the macroeconomic forces
around us, including the global and U.S. economies, the coronavirus disease 2019
("COVID-19") pandemic, changes in interest and inflation rates, financial market
volatility, fluctuations in foreign exchange rates, geopolitical strain, the
competitive environment, client and customer activities and preferences, and the
various regulatory and legislative developments. Financial markets and
macroeconomic conditions have had and will continue to have a significant impact
on our operating and performance results. In addition, the business, political
and regulatory environments in which we operate are subject to elevated
uncertainty and substantial, frequent change. Accordingly, we expect to continue
focusing on our key strategic objectives and obtaining operational and strategic
leverage from our core capabilities. The success of these and other strategies
may be affected by the factors discussed in Item 1A, "Risk Factors" in our 2021
10-K and other factors as discussed herein.

Equity price, credit market and interest rate fluctuations can have a
significant impact on our results of operations, primarily due to the effects
they have on the asset management and other asset-based fees we earn, the value
of deferred acquisition costs ("DAC") and deferred sales inducement costs
("DSIC") assets, the values of liabilities for guaranteed benefits associated
with our variable annuities and the values of derivatives held to hedge these
benefits and the "spread" income generated on our deposit products, fixed
insurance, the fixed portion of variable annuities and variable insurance
contracts and fixed deferred annuities. We have been operating in a historically
low interest rate environment and though short term rates have risen, remain in
a low interest rate environment today with uncertainty about where rates will go
in the future. A lower interest rate environment may result in increases to our
reserves and changes in various rate assumptions we use to amortize DAC and
DSIC, which may negatively impact our adjusted operating earnings after tax. For
additional discussion on our interest rate risk, see Item 3. "Quantitative and
Qualitative Disclosures About Market Risk" and the information set forth in this
Item 2, "Management's Discussion and Analysis of Financial Condition and Results
of Operations - Market Risk."

On June 2, 2021, we filed an application to convert Ameriprise Bank, FSB to a
state-chartered industrial bank regulated by the Utah Department of Financial
Institutions and the Federal Deposit Insurance Corporation. We also filed an
application to transition the FSB's personal trust services business to a new
limited purpose national trust bank regulated by the Office of the Comptroller
of the Currency. If the applications are approved, the proposed changes are not
expected to impact our long-term strategy for the bank and should enable us to
continue our strong lineup of banking solutions, including deposits, credit
cards, mortgages and securities-based lending to our wealth management clients
without interruption.

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

While our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), management believes that adjusted operating measures, which exclude net realized investment gains or losses, net of the related DSIC

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

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

Our financial targets are:

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


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

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                          AMERIPRISE FINANCIAL, INC.
The following tables reconcile our GAAP measures to adjusted operating measures:

                                                                                                                 Per Diluted Share
                                                           Three Months Ended June 30,                      Three Months Ended June 30,
                                                              2022                    2021                     2022                    2021
                                                                                (in millions, except per share amounts)
Net income (loss)                                   $          756                 $    591           $         6.61                $  4.88

Less: Net realized investment gains (losses) (1)               (14)                      11                    (0.12)                  0.09

Add: Market impact on non-traditional long-duration products (1)

                                                  (305)                      87                    (2.67)                  0.71
Add: Mean reversion related impacts (1)                        161                      (42)                    1.41                  (0.35)
Add: Market impact of hedges on investments (1)                  -                       17                        -                   0.14

Add: Integration/restructuring charges (1)                      14                        7                     0.12                   0.06
Less: Net income (loss) attributable to CIEs                    (1)                      (2)                   (0.01)                 (0.02)
Tax effect of adjustments (2)                                   24                      (12)                    0.21                  (0.10)
Adjusted operating earnings                         $          665                 $    639           $         5.81                $  5.27

Weighted average common shares outstanding:
Basic                                                        112.3                    118.4
Diluted                                                      114.4                    121.2


                                                                                                                           Per Diluted Share
                                                                        Six Months Ended June 30,                      Six Months Ended June 30,
                                                                          2022                     2021                  2022                 2021
                                                                                      (in millions, except per share amounts)
Net income (loss)                                              $       1,517                    $ 1,028           $         13.16          $  8.45
Less: Net realized investment gains (losses) (1)                           2                         66                      0.02             0.54

Add: Market impact on non-traditional long-duration products (1)

                                                            (439)                       483                     (3.81)            3.97
Add: Mean reversion related impacts (1)                                  220                        (98)                     1.91            (0.81)
Add: Market impact of hedges on investments (1)                            -                         17                         -             0.14

Add: Integration/restructuring charges (1)                                24                          7                      0.21             0.06
Less: Net income (loss) attributable to CIEs                               1                         (3)                     0.01            (0.02)
Tax effect of adjustments (2)                                             41                        (72)                     0.36            (0.59)
Adjusted operating earnings                                    $       1,360                    $ 1,302           $         11.80          $ 10.70

Weighted average common shares outstanding:
Basic                                                                  113.0                      119.1
Diluted                                                                115.3                      121.7


(1) Pretax adjusted operating adjustments.
(2) Calculated using the statutory federal tax rate of 21%.
                                                                            

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                          AMERIPRISE FINANCIAL, INC.
The following table reconciles the trailing twelve months' sum of net income to
adjusted operating earnings and the five-point average of quarter-end equity to
adjusted operating equity:
                                                                                Twelve Months Ended June 30,
                                                                                   2022                 2021
                                                                                        (in millions)
Net income                                                                   $        3,249          $  1,065
Less: Adjustments (1)                                                                   467              (980)
Adjusted operating earnings                                                           2,782             2,045

Total Ameriprise Financial, Inc. shareholders' equity                                 5,278             5,924
Less: AOCI, net of tax                                                                 (426)              463

Total Ameriprise Financial, Inc. shareholders' equity, excluding AOCI

           5,704             5,461
Less: Equity impacts attributable to CIEs                                                 2                 1
Adjusted operating equity                                                   

$ 5,702 $ 5,460



Return on equity, excluding AOCI                              57.0  %      

19.5 % Adjusted operating return on equity, excluding AOCI (2) 48.8 % 37.5 %



(1) Adjustments reflect the sum of after-tax net realized investment
gains/losses, net of DSIC and DAC amortization, unearned revenue amortization
and the reinsurance accrual; the market impact on non-traditional long-duration
products (including variable and fixed deferred annuity contracts and UL
insurance contracts), net of hedges and related DSIC and DAC amortization,
unearned revenue amortization and the reinsurance accrual; mean reversion
related impacts; block transfer reinsurance transaction impacts; the market
impact of hedges to offset interest rate and currency changes on unrealized
gains or losses for certain investments; gain or loss on disposal of a business
that is not considered discontinued operations; integration and restructuring
charges; income (loss) from discontinued operations; and net income (loss) from
consolidated investment entities. After-tax is calculated using the statutory
tax rate of 21%.

(2) Adjusted operating return on equity, excluding AOCI is calculated using
adjusted operating earnings in the numerator, and Ameriprise Financial
shareholders' equity, excluding AOCI and the impact of consolidating investment
entities using a five-point average of quarter-end equity in the denominator.
After-tax is calculated using the statutory tax rate of 21%.

Critical Accounting Estimates


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

Recent Accounting Pronouncements


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

Economic Environment


Global equity market conditions could materially affect our financial condition
and results of operations. The following table presents relevant market indices:
                                      Three months ended June 30,                                        Six Months Ended June 30,
                                    2022                       2021              Change               2022                       2021              Change
S&P 500
Daily average                           4,110                      4,182              (2)%                4,288                      4,022                7%
Period end                              3,785                      4,298             (12)%                3,785                      4,298             (12)%
Weighted Equity Index ("WEI")
(1)
Daily average                           2,707                      2,858              (5)%                2,829                      2,761                2%
Period end                              2,491                      2,921             (15)%                2,491                      2,921             (15)%


(1) Weighted Equity Index is an Ameriprise calculated proxy for equity market
movements calculated using a weighted average of the S&P 500, Russell 2000,
Russell Midcap and MSCI EAFE indices based on North America distributed equity
assets.

See our segment results of operations discussion below for additional
information on how changes in the economic environment have and may continue to
impact our results. For further information regarding the impact of the economic
environment on our financial condition and results of operations, and
potentially material effects, see Part 1 - Item 1A "Risk Factors" of our 2021
10-K.

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                          AMERIPRISE FINANCIAL, INC.

Assets Under Management and Administration


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

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

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

The following table presents detail regarding our AUM and AUA:

                                                      June 30,
                                                2022           2021         

Change

                                                          (in billions)
Assets Under Management and Administration
Advice & Wealth Management AUM               $   396.3      $   426.5      $ (30.2)       (7) %
Asset Management AUM                             598.2          593.4          4.8         1
Corporate AUM                                      0.2            0.1          0.1          NM
Eliminations                                     (37.5)         (42.0)         4.5        11
Total Assets Under Management                    957.2          978.0        (20.8)       (2)
Total Assets Under Administration                212.9          233.3        (20.4)       (9)
Total AUM and AUA                            $ 1,170.1      $ 1,211.3      $ (41.2)       (3) %


Total AUM decreased $20.8 billion, or 2%, to $957.2 billion as of June 30, 2022
compared to $978.0 billion as of June 30, 2021 due to a $30.2 billion decrease
in Advice & Wealth Management AUM driven by equity market depreciation,
partially offset by wrap account net inflows, and a $4.8 billion increase in
Asset Management AUM driven by the acquisition of the BMO Global Asset
Management (EMEA) business, partially offset by equity market depreciation.
See our segment results of operations discussion below for additional
information on changes in our AUM.
                                                                            

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                          AMERIPRISE FINANCIAL, INC.

Consolidated Results of Operations for the Three Months Ended June 30, 2022 and 2021

The following table presents our consolidated results of operations:

                                                      Three Months Ended June 30,
                                                        2022                 2021                     Change
                                                                     (in millions)
Revenues
Management and financial advice fees              $        2,277          $  2,251          $    26                1  %
Distribution fees                                            458               452                6                1
Net investment income                                        287               278                9                3
Premiums, policy and contract charges                        365               364                1                   -
Other revenues                                               124                75               49               65
Total revenues                                             3,511             3,420               91                3
Banking and deposit interest expense                           3                 2                1               50
Total net revenues                                         3,508             3,418               90                3
Expenses
Distribution expenses                                      1,236             1,233                3                   -
Interest credited to fixed accounts                          145               124               21               17
Benefits, claims, losses and settlement expenses              82               404             (322)             (80)
Amortization of deferred acquisition costs                   152                63               89                 NM
Interest and debt expense                                     44                43                1                2
General and administrative expense                           894               830               64                8
Total expenses                                             2,553             2,697             (144)              (5)
Pretax income                                                955               721              234               32
Income tax provision                                         199               130               69               53
Net income                                        $          756          $    591          $   165               28  %
NM  Not Meaningful.


Overall

Pretax income increased $234 million, or 32%, for the three months ended June 30, 2022 compared to the prior year period. The following impacts were significant drivers of the period-over-period change in pretax income:


•The market impact on non-traditional long duration products (including variable
and fixed deferred annuity contracts and UL insurance contracts), net of hedges
and related DSIC and DAC amortization, unearned revenue amortization and the
reinsurance accrual was a benefit of $305 million for the three months ended
June 30, 2022 compared to an expense of $87 million for the prior year period.

•A favorable impact from higher short-term interest rates.

•An unfavorable impact from lower average equity markets for the three months ended June 30, 2022 compared to the prior year period.


•The mean reversion related impact was an expense of $161 million for the three
months ended June 30, 2022 compared to a benefit of $42 million for the prior
year period.

Net Revenues

Management and financial advice fees increased $26 million, or 1%, for the three
months ended June 30, 2022 compared to the prior year period reflecting revenue
associated with the acquisition of the BMO Global Asset Management (EMEA)
business and continued wrap account net inflows, partially offset by lower
average equity markets and an unfavorable foreign exchange impact.

Distribution fees increased $6 million, or 1%, for the three months ended June 30, 2022 compared to the prior year period due to higher fees on off-balance sheet brokerage cash due to an increase in short-term interest rates, partially offset by decreased transactional activity and lower average equity markets.

Net investment income increased $9 million, or 3%, for the three months ended June 30, 2022 compared to the prior year period primarily reflecting the following items:


•Net realized investment losses of $15 million for the three months ended
June 30, 2022 compared to net realized investment gains of $11 million for the
prior year period. Net realized investment losses for three months ended
June 30, 2022 were driven by the sale of specific Available-for-Sale securities
and impairments on securities we intend to sell as we repositioned a portion of
our fixed maturity bond portfolio in response to recent market conditions.
                                                                            

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                          AMERIPRISE FINANCIAL, INC.

•The favorable impact of rising interest rates on the investment portfolio yield.

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

Other revenues increased $49 million, or 65%, for the three months ended June 30, 2022 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.

Expenses

Interest credited to fixed accounts increased $21 million, or 17%, for the three months ended June 30, 2022 compared to the prior year period primarily reflecting the following items:


•A $45 million decrease in expense from the unhedged nonperformance credit
spread risk adjustment on IUL benefits. The favorable impact of the
nonperformance credit spread was $32 million for the three months ended June 30,
2022 compared to an unfavorable impact of $13 million for the prior year period.

•A $73 million increase in expense from other market impacts on IUL benefits,
net of hedges, which was an expense of $23 million for the three months ended
June 30, 2022 compared to a benefit of $50 million for the prior year period.
The increase in expense was primarily due to an increase in the IUL embedded
derivative in the current period, which reflected higher option costs due to a
higher new money rate.

Benefits, claims, losses and settlement expenses decreased $322 million, or 80%,
the three months ended June 30, 2022 compared to the prior year period primarily
reflecting the following items:

•A $67 million decrease in expense primarily reflecting the impact of
year-over-year changes in the unhedged nonperformance credit spread risk
adjustment on variable annuity guaranteed benefits. The favorable impact of the
nonperformance credit spread was $130 million for the three months ended
June 30, 2022 primarily as a result of the nonperformance credit spread
increasing compared to a favorable impact of $63 million for the prior year
period. As the undiscounted embedded derivative liability on which the
nonperformance credit spread is applied increases (decreases), the impact of the
nonperformance credit spread on benefits expenses is favorable (unfavorable).
Additionally, as the estimate of the nonperformance credit spread over the LIBOR
swap curve tightens or widens, the embedded derivative liability will increase
or decrease.

•A $348 million decrease in expense from other market impacts on variable
annuity guaranteed benefits, net of hedges in place to offset those risks and
the related DSIC amortization. This decrease was the result of a favorable $1.1
billion change in the market impact on variable annuity guaranteed living
benefits reserves, partially offset by an unfavorable $800 million change in the
market impact on derivatives hedging the variable annuity guaranteed benefits.
The main market drivers contributing to these changes are summarized below:

•Equity market impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the three months ended June 30, 2022 compared to an expense for the prior year period.

•Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the three months ended June 30, 2022 compared to the prior year period.


•Volatility impact on the variable annuity guaranteed living benefits liability
net of the impact on the corresponding hedge assets resulted in a benefit for
the three months ended June 30, 2022 compared to an expense for the prior year
period.

•Other unhedged items, including the difference between the assumed and actual
underlying separate account investment performance, fixed income credit
exposures, transaction costs and various behavioral items, were a net expense
for the three months ended June 30, 2022 compared to a net benefit for the prior
year period.

•The mean reversion related impact was an expense of $90 million for the three
months ended June 30, 2022 compared to a benefit of $25 million for the prior
year period.

Amortization of DAC increased $89 million, for the three months ended June 30, 2022 compared to the prior year period primarily reflecting the following items:


•The DAC offset to the market impact on non-traditional long-duration products
was an expense of $26 million for the three months ended June 30, 2022 compared
to an expense of $5 million for the prior year period.

•The mean reversion related impact was an expense of $70 million for the three
months ended June 30, 2022 compared to a benefit of $16 million for the prior
year period.

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


General and administrative expense increased $64 million, or 8%, for the three
months ended June 30, 2022 compared to the prior year period primarily
reflecting the operating expenses of the acquired BMO Global Asset Management
(EMEA) business, and $14 million of integration related expenses, partially
offset by a favorable change in the mark-to-market impact on share-based
compensation.

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                          AMERIPRISE FINANCIAL, INC.

Income Taxes


Our effective tax rate was 20.8% for the three months ended June 30, 2022
compared to 18.1% for the prior year period. The higher effective tax rate for
the three months ended June 30, 2022 compared to the three months ended June 30,
2021 was primarily the result of higher pretax income and a decrease in low
income housing tax credits compared to the prior year period. See Note 15 to our
Consolidated Financial Statements for additional discussion on income taxes.

Results of Operations by Segment for the Three Months Ended June 30, 2022 and 2021


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

The following table presents summary financial information by segment:

                                           Three Months Ended June 30,
                                                2022                   2021
                                                  (in millions)
Advice & Wealth Management
Net revenues                        $        2,056                   $ 1,980
Expenses                                     1,564                     1,557
Adjusted operating earnings         $          492                   $   423
Asset Management
Net revenues                        $          881                   $   879
Expenses                                       659                       626
Adjusted operating earnings         $          222                   $   253
Retirement & Protection Solutions
Net revenues                        $          760                   $   808
Expenses                                       581                       626
Adjusted operating earnings         $          179                   $   182
Corporate & Other
Net revenues                        $          119                   $   119
Expenses                                       172                       196
Adjusted operating loss             $          (53)                  $   (77)


Advice & Wealth Management

The following table presents the changes in wrap account assets and average balances for the three months ended June 30:

                                                    2022         2021
                                                      (in billions)
Beginning balance                                 $ 447.0      $ 399.8
Net flows                                             6.2         10.0

Market appreciation (depreciation) and other (53.9) 20.2 Ending balance

                                    $ 399.3      $ 430.0

Advisory wrap account assets ending balance (1) $ 395.1 $ 425.2 Average advisory wrap account assets (2) $ 425.6 $ 407.7



(1) Advisory wrap account assets represent those assets for which clients
receive advisory services and are the primary driver of revenue earned on wrap
accounts. Clients may hold non-advisory investments in their wrap accounts that
do not incur an advisory fee.

(2) Average ending balances are calculated using an average of the prior period's ending balance and all months in the current period excluding the most recent month for the three months ended June 30, 2022 and 2021.


Ending wrap account assets decreased $47.7 billion, or 11%, to $399.3 billion
during the three months ended June 30, 2022 due to market depreciation of
$53.9 billion, partially offset by net inflows of $6.2 billion. Average advisory
wrap account assets increased $17.9 billion, or 4%, compared to the prior year
period primarily reflecting net inflows, partially offset by market
depreciation.

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                          AMERIPRISE FINANCIAL, INC.

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

                                              Three Months Ended June 30,
                                                   2022                   2021            Change
                                                           (in millions)
Revenues
Management and financial advice fees   $        1,340                   $ 1,299      $  41        3  %
Distribution fees                                 542                       562        (20)      (4)
Net investment income                             120                        63         57       90
Other revenues                                     57                        58         (1)      (2)
Total revenues                                  2,059                     1,982         77        4
Banking and deposit interest expense                3                         2          1       50
Total net revenues                              2,056                     1,980         76        4
Expenses
Distribution expenses                           1,185                     1,194         (9)      (1)
Interest and debt expense                           3                         2          1       50
General and administrative expense                376                       361         15        4
Total expenses                                  1,564                     1,557          7           -
Adjusted operating earnings            $          492                   $   423      $  69       16  %


Our Advice & Wealth Management segment pretax adjusted operating earnings, which
exclude net realized investment gains or losses, increased $69 million, or 16%,
for the three months ended June 30, 2022 compared to the prior year period
primarily reflecting higher average wrap account balances due to net inflows and
a benefit from higher short-term interest rates. Pretax adjusted operating
margin increased to 23.9% for the three months ended June 30, 2022 compared to
21.4% for the prior year period, reflecting the benefit of higher short-term
interest rates. Client brokerage cash balances continued to increase to $47.4
billion given the market volatility.

Ameriprise Bank, FSB is continuing its deposit growth trend, with cash sweep
balances increasing $6.8 billion from the prior year period to $15.5 billion and
brokerage client pledged asset lines of credit increasing $251 million from the
prior year period to $601 million as of June 30, 2022. Profitability at the bank
increased compared to the prior year period reflecting deposit growth and
increased interest rates.

Net Revenues


Management and financial advice fees increased $41 million, or 3%, for the three
months ended June 30, 2022 compared to the prior year period primarily due to
growth in average wrap account assets. Average advisory wrap account assets
increased $17.9 billion, or 4%, compared to the prior year period reflecting net
inflows, partially offset by market depreciation.

Distribution fees decreased $20 million, or 4%, for the three months ended June
30, 2022 compared to the prior year period reflecting decreased transactional
activity, partially offset by higher fees on off-balance sheet brokerage cash
due to an increase in short-term interest rates.

Net investment income, which excludes net realized investment gains or losses,
increased $57 million, or 90%, for the three months ended June 30, 2022 compared
to the prior year period primarily due to higher average invested assets due to
increased bank deposits and the favorable impact of increasing short-term
interest rates, including higher investment yields on the investment portfolio
supporting the certificate products.

Expenses

Distribution expenses decreased $9 million, or 1%, for the three months ended June 30, 2022 compared to the prior year period reflecting decreased transactional activity, partially offset by higher asset-based advisor compensation from higher average wrap account assets.

General and administrative expense increased $15 million, or 4%, for the three months ended June 30, 2022 compared to the prior year period primarily reflecting higher volume related expenses.

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Asset Management


The following tables present the mutual fund performance of our retail Columbia
Threadneedle Investments funds, including funds recently acquired through the
BMO Global Asset Management (EMEA) acquisition, as of June 30, 2022:
Retail Fund Rankings in Top 2 Quartiles or Above Index
Benchmark - Asset Weighted(1)                                 1 year          3 year         5 year         10 year
Equity                                                                50%            76%            76%              89%
Fixed Income                                                          35%            82%            73%              91%
Asset Allocation                                                      53%            60%            72%              90%

4- or 5-star Morningstar rated funds(2)                      Overall          3 year         5 year         10 year
Number of rated funds                                                 144            107             93              106
Percent of rated assets                                               66%            56%            52%              63%


(1) Retail Fund performance rankings for each fund are measured on a consistent
basis against the most appropriate peer group or index. Peer groupings of
Columbia funds are defined by Lipper category and are based on the Primary Share
Class (i.e. Institutional if available, otherwise Advisor or Instl3 share
class), net of fees. Peer groupings of Threadneedle and legacy BMO funds are
defined by either IA or Morningstar index, and are based on the highest-rated
share class. Comparisons to Index are measured Gross of Fees.

To calculate asset weighted performance, the sum of the total assets of the
funds with above median ranking are divided by total assets of all funds. Funds
with more assets will receive a greater share of the total percentage above or
below median.

Aggregated Asset Allocation Funds may include funds that invest in other Columbia or Threadneedle branded mutual funds included in both equity and fixed income.


(2) Columbia funds are available for purchase by U.S. customers. Out of 104
Columbia funds rated (based on primary share class), 18 received a 5-star
Overall Rating and 41 received a 4-star Overall Rating. Out of 92 Threadneedle
funds rated (based on highest-rated share class), 13 received a 5-star Overall
Rating and 39 received a 4-star Overall Rating. Out of 63 BMO funds rated (based
on highest-rated share class), 6 received a 5-star Overall Rating and 27
received a 4-star Overall Rating. The Overall Morningstar Rating is derived from
a weighted average of the performance figures associated with its 3-, 5- and
10-year (if applicable) Morningstar Rating metrics.

The following table presents global managed assets by type:                                          Average (1)
                               As of June 30,                                                Three Months Ended June 30,
                            2022             2021                    Change                     2022              2021                    Change
                                                                                   (in billions)
Equity                   $ 306.0          $ 339.0          $ (33.0)            (10) %        $  336.7          $ 330.8          $  5.9                2  %
Fixed income               216.5            202.5             14.0               7              235.6            199.5            36.1               18
Money market                19.3              5.5             13.8                NM             16.5              5.8            10.7                 NM
Alternative                 38.4             23.3             15.1              65               39.4             23.1            16.3               71
Hybrid and other            18.0             23.1             (5.1)            (22)              19.5             22.6            (3.1)             (14)

Total managed assets (2) $ 598.2 $ 593.4 $ 4.8

     1  %        $  647.7          $ 581.8          $ 65.9               11  %
NM  Not Meaningful.

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


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

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                          AMERIPRISE FINANCIAL, INC.

The following table presents the changes in global managed assets:

                                                                         Three Months Ended June 30,
                                                                           2022                  2021
                                                                                (in billions)
Global Retail Funds
Beginning assets                                                     $        380.0          $   340.2
Inflows                                                                        15.5               19.4
Outflows                                                                      (23.8)             (17.1)
Net VP/VIT fund flows                                                          (1.0)              (1.0)
Net new flows                                                                  (9.3)               1.3
Reinvested dividends                                                            3.5                2.9
Net flows                                                                      (5.8)               4.2
Distributions                                                                  (3.8)              (3.3)

Market appreciation (depreciation) and other                                  (43.1)              18.1
Foreign currency translation (1)                                               (4.3)               0.3
Total ending assets                                                           323.0              359.5

Global Institutional
Beginning assets                                                              318.6              223.9
Inflows (2)                                                                    16.1                9.3
Outflows (2)                                                                  (13.4)              (6.8)
Net flows                                                                       2.7                2.5

Market appreciation (depreciation) and other (3)                              (36.4)               7.1
Foreign currency translation (1)                                               (9.7)               0.4
Total ending assets                                                           275.2              233.9
Total managed assets                                                 $        598.2          $   593.4

Total net flows                                                      $         (3.1)         $     6.7

Legacy insurance partners net flows (4)                              $      

(1.2) $ (1.4)

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

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


(3) Included in Market appreciation (depreciation) and other for Global
Institutional is the change in affiliated general account balance, excluding net
flows related to our structured variable annuity product and Ameriprise Bank,
FSB.
(4) Legacy insurance partners assets and net flows are included in the
rollforwards above.

Total segment AUM decreased $100.4 billion, or 14%, during the three months
ended June 30, 2022 primarily due to equity market depreciation. Net outflows
were $3.1 billion in the second quarter of 2022, a $9.8 billion decrease
compared to the prior year period. Global retail net outflows were $5.8 billion.
Global institutional net inflows were $2.7 billion and included $1.2 billion of
outflows from legacy insurance partners assets.

                                                                            

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                          AMERIPRISE FINANCIAL, INC.

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

                                                      Three Months Ended June 30,
                                                        2022                 2021                     Change
                                                                     (in millions)
Revenues
Management and financial advice fees              $          777          $    758          $    19               3  %
Distribution fees                                            100               118              (18)            (15)
Net investment income                                          -                 2               (2)               NM
Other revenues                                                 4                 1                3                NM
Total revenues                                               881               879                2                  -
Banking and deposit interest expense                           -                 -                -                  -
Total net revenues                                           881               879                2                  -
Expenses
Distribution expenses                                        252               282              (30)            (11)
Amortization of deferred acquisition costs                     3                 3                -                  -
Interest and debt expense                                      1                 1                -                  -
General and administrative expense                           403               340               63              19
Total expenses                                               659               626               33               5
Adjusted operating earnings                       $          222          $    253          $   (31)            (12) %
NM  Not Meaningful.


Our Asset Management segment pretax adjusted operating earnings, which exclude
net realized investment gains or losses, decreased $31 million, or 12%, for the
three months ended June 30, 2022 compared to the prior year period primarily due
to equity market depreciation and net outflows, partially offset by AUM from the
acquisition of the BMO Global Asset Management (EMEA) business.

Net Revenues


Management and financial advice fees increased $19 million, or 3%, for the three
months ended June 30, 2022 compared to the prior year period primarily due to
the acquired BMO Global Asset Management (EMEA) business, partially offset by
lower average equity markets, the cumulative impact from net outflows and the
impact of foreign exchange rates.

Distribution fees decreased $18 million, or 15%, for the three months ended June 30, 2022 compared to the prior year period reflecting lower average equity markets and the cumulative impact from net outflows.

Expenses

Distribution expenses decreased $30 million, or 11%, for the three months ended June 30, 2022 compared to the prior year period primarily reflecting lower average equity markets and the cumulative impact from net outflows.


General and administrative expense increased $63 million, or 19%, for the three
months ended June 30, 2022 compared to the prior year period primarily
reflecting the operating expenses of the acquired BMO Global Asset Management
(EMEA) business, partially offset by the cumulative impact from net outflows and
the impact of foreign exchange rates.

                                                                            

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                          AMERIPRISE FINANCIAL, INC.

Retirement & Protection Solutions

The following table presents the results of operations of our Retirement & Protection Solutions segment on an adjusted operating basis:

                                                       Three Months Ended June 30,
                                                         2022                 2021                    Change
                                                                      (in millions)
Revenues
Management and financial advice fees               $          197          $    234          $  (37)            (16) %
Distribution fees                                             106               122             (16)            (13)
Net investment income                                         124               127              (3)             (2)
Premiums, policy and contract charges                         329               325               4               1
Other revenues                                                  4                 -               4                  -
Total revenues                                                760               808             (48)             (6)
Banking and deposit interest expense                            -                 -               -                  -
Total net revenues                                            760               808             (48)             (6)
Expenses
Distribution expenses                                         115               134             (19)            (14)
Interest credited to fixed accounts                            96                98              (2)             (2)
Benefits, claims, losses and settlement expenses              233               241              (8)             (3)
Amortization of deferred acquisition costs                     54                70             (16)            (23)
Interest and debt expense                                       9                 9               -                  -
General and administrative expense                             74                74               -                  -
Total expenses                                                581               626             (45)             (7)
Adjusted operating earnings                        $          179          $    182          $   (3)             (2) %


Our Retirement & Protection Solutions segment pretax adjusted operating
earnings, which excludes net realized investment gains or losses (net of the
related DSIC and DAC amortization, unearned revenue amortization and the
reinsurance accrual), the market impact on non-traditional long-duration
products (including variable annuity contracts and IUL contracts, net of hedges
and the related DSIC and DAC amortization, unearned amortization and the
reinsurance accrual), mean reversion related impacts, and block transfer
reinsurance transaction impacts decreased $3 million, or 2%, for the three
months ended June 30, 2022 compared to prior year period.

Variable annuity account balances decreased 16% to $75.7 billion as of June 30,
2022 compared to the prior year period due to market depreciation and net
outflows of $2.0 billion. Variable annuity sales decreased 29% compared to the
prior year period reflecting a decrease in sales of variable annuities with
living benefit guarantees. The risk profile of our in force block continues to
improve, with account values with living benefit riders down to 59% as of
June 30, 2022 compared to 62% a year ago. This trend is expected to continue and
meaningfully shift the mix of business away from products with living benefit
guarantees over time.

We continue to optimize our risk profile and shift our business mix to lower
risk offerings. During the fourth quarter of 2021, we made the decision to
discontinue new sales of substantially all of our variable annuities with living
benefit guarantees at the end of 2021, and have fully stopped issuing new
contracts as of June 30, 2022. In addition, we discontinued new sales of our
universal life insurance with secondary guarantees and our single-pay fixed
universal life with a long term care rider products at the end of 2021.

Net Revenues

Management and financial advice fees decreased $37 million, or 16%, for the three months ended June 30, 2022 compared to the prior year period primarily due to lower average equity markets and the cumulative impact from net outflows.

Distribution fees decreased $16 million, or 13%, for the three months ended June 30, 2022 compared to the prior year period reflecting lower average equity markets and the cumulative impact from net outflows.

Expenses


Distribution expenses decreased $19 million, or 14%, for the three months ended
June 30, 2022 compared to the prior year period primarily reflecting decreased
variable annuity sales.

Amortization of DAC, which excludes mean reversion related impacts, the DAC
offset to the market impact on variable annuity contracts and IUL contracts and
the DAC offset to net realized investment gains or losses, decreased
$16 million, or 23%, for the three months ended June 30, 2022 compared to the
prior year period primarily reflecting lower than expected client exit rates.

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                          AMERIPRISE FINANCIAL, INC.

Corporate & Other

The following table presents the results of operations of our Corporate & Other segment on an adjusted operating basis:

                                                      Three Months Ended June 30,
                                                        2022                 2021                     Change
                                                                     (in millions)
Revenues

Net investment income                             $           39          $     79          $   (40)            (51) %
Premiums, policy and contract charges                         24                25               (1)             (4)
Other revenues                                                56                16               40                NM
Total revenues                                               119               120               (1)             (1)
Banking and deposit interest expense                           -                 1               (1)               NM
Total net revenues                                           119               119                -                  -
Expenses
Distribution expenses                                         (3)               (2)              (1)            (50)
Interest credited to fixed accounts                           60                62               (2)             (3)
Benefits, claims, losses and settlement expenses              59                54                5                  9
Amortization of deferred acquisition costs                     -                 2               (2)               NM
Interest and debt expense                                     15                17               (2)            (12)
General and administrative expense                            41                63              (22)            (35)
Total expenses                                               172               196              (24)            (12)
Adjusted operating loss                           $          (53)         $    (77)         $    24              31  %
NM  Not Meaningful.

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


Our Corporate & Other segment pretax adjusted operating loss excludes net
realized investment gains or losses, the market impact on fixed deferred annuity
contracts (net of hedges and the related DAC amortization), the market impact of
hedges to offset interest rate and currency changes on unrealized gains or
losses for certain investments, block transfer reinsurance transaction impacts,
gain or loss on disposal of a business that is not considered discontinued
operations, integration and restructuring charges, and the impact of
consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss
decreased $24 million, for the three months ended June 30, 2022 compared to the
prior year period.

LTC insurance had a pretax adjusted operating loss of $1 million for the three
months ended June 30, 2022 compared to pretax adjusted operating earnings of $3
million for the prior year period.

FA business had a pretax adjusted operating loss of $4 million for the three
months ended June 30, 2022 compared to a pretax adjusted operating loss of $6
million. Fixed deferred annuity account balances declined 5% to $7.4 billion as
of June 30, 2022 compared to the prior year period as policies continue to lapse
and the discontinuance of new sales of fixed deferred annuities. During the
third quarter of 2021, we closed on a transaction to reinsure RiverSource Life's
fixed deferred and immediate annuity policies.

Net Revenues


Net investment income, which excludes net realized investment gains or losses,
the market impact of hedges to offset interest rate and currency changes on
unrealized gains or losses for certain investments, block transfer reinsurance
transaction impacts, integration and restructuring charges, and the impact of
consolidating CIEs, decreased $40 million, or 51%, for the three months ended
June 30, 2022 compared to the prior year period primarily reflecting lower
average invested assets due to the sale of investments to a reinsurer as a
result of the fixed deferred and immediate annuity reinsurance transaction and a
$7 million impairment in our affordable housing partnerships in the prior year
period.

Other revenues increased $40 million to $56 million for the three months ended
June 30, 2022 compared to the prior year period primarily reflecting the yield
on deposit receivables arising from reinsurance transactions.

                                                                            

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                          AMERIPRISE FINANCIAL, INC.

Expenses


Benefits, claims, losses and settlement expenses, which excludes DSIC offset to
net realized investment gains or losses, increased $5 million, or 9%, for the
three months ended June 30, 2022 compared to the prior year period primarily
reflecting more normalized claims on LTC insurance, which benefited from
COVID-19 related impacts in the prior year period.

General and administrative expense decreased $22 million, or 35%, for the three months ended June 30, 2022 compared to the prior year period primarily reflecting the favorable mark-to-market impact on share-based compensation expense.

Consolidated Results of Operations for the Six Months Ended June 30, 2022 and 2021

The following table presents our consolidated results of operations:

                                                      Six Months Ended June 30,
                                                        2022                2021                     Change
                                                                     (in millions)
Revenues
Management and financial advice fees              $       4,736          $  4,353          $   383                9  %
Distribution fees                                           904               910               (6)              (1)
Net investment income                                       548               655             (107)             (16)
Premiums, policy and contract charges                       733               711               22                3
Other revenues                                              247               146              101               69
Total revenues                                            7,168             6,775              393                6
Banking and deposit interest expense                          5                 7               (2)             (29)
Total net revenues                                        7,163             6,768              395                6
Expenses
Distribution expenses                                     2,533             2,408              125                5
Interest credited to fixed accounts                         286               283                3                1
Benefits, claims, losses and settlement expenses            293             1,057             (764)               (72)
Amortization of deferred acquisition costs                  248                68              180                 NM
Interest and debt expense                                    84                85               (1)              (1)
General and administrative expense                        1,841             1,653              188               11
Total expenses                                            5,285             5,554             (269)              (5)
Pretax income                                             1,878             1,214              664               55
Income tax provision                                        361               186              175               94
Net income                                        $       1,517          $  1,028          $   489               48  %
NM Not Meaningful.


Overall

Pretax income increased $664 million, or 55%, for the six months ended June 30, 2022 compared to the prior year period.


•The market impact on non-traditional long duration products (including variable
and fixed deferred annuity contracts and UL insurance contracts), net of hedges
and the related DSIC and DAC amortization, unearned revenue amortization and the
reinsurance accrual was a benefit of $439 million for the six months ended
June 30, 2022 compared to an expense of $483 million for the prior year period.

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


•The mean reversion related impact was an expense of $220 million for the six
months ended June 30, 2022 compared to a benefit of $98 million for the prior
year period.

Net Revenues

Management and financial advice fees increased $383 million, or 9%, for the six
months ended June 30, 2022 compared to the prior year period reflecting revenue
associated with the acquisition of the BMO Global Asset Management (EMEA)
business and continued wrap account net inflows, and an increase in performance
fees of $55 million.

Distribution fees decreased $6 million, or 1%, for the six months ended June 30,
2022 compared to the prior year period due to lower transactional activity,
partially offset by higher fees on off-balance sheet brokerage cash primarily
due to an increase in short-term interest rates.

                                                                            

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Net investment income decreased $107 million, or 16%, for the six months ended June 30, 2022 compared the prior year period primarily reflecting:


•Net realized investment gains of $5 million for the six months ended June 30,
2022 compared to net realized investment gains of $65 million for the prior year
period. Net realized investment gains for the six months ended June 30, 2021
included a $15 million gain on strategic investment.

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

•The favorable impact of increased bank deposits and rising short-term interest rates.


Other revenues increased $101 million, or 69%, for the six months ended June 30,
2022 compared to the prior year period primarily reflecting the yield on deposit
receivables arising from reinsurance transactions.

Expenses

Distribution expenses increased $125 million, or 5%, for the six months ended June 30, 2022 compared to the prior year period primarily reflecting higher advisor compensation due to an increase in average wrap account balances.


Interest credited to fixed accounts increased $3 million, or 1%, for the six
months ended June 30, 2022 compared to the prior year period primarily
reflecting the following items:
•A $74 million decrease in expense from the unhedged nonperformance credit
spread risk adjustment on IUL benefits. The favorable impact of the
nonperformance credit spread was $60 million for the six months ended June 30,
2022 compared to an unfavorable impact of $14 million for the prior year period.

•An $87 million increase in expense from other market impacts on IUL benefits,
net of hedges, which was an expense of $35 million for the six months ended
June 30, 2022 compared to a benefit of $52 million for the prior year period.
The increase in expense was primarily due to an increase in the IUL embedded
derivative in the current period, which reflected higher option costs due to a
higher new money rate.

Benefits, claims, losses and settlement expenses decreased $764 million, or 72%, for the six months ended June 30, 2022 compared to the prior year period primarily reflecting the following items:


•A $274 million decrease in expense primarily reflecting the impact of
year-over-year changes in the unhedged nonperformance credit spread risk
adjustment on variable annuity guaranteed benefits. The favorable impact of the
nonperformance credit spread was $112 million for the six months ended June 30,
2022 primarily as a result of the nonperformance credit spread increasing
compared to an unfavorable impact of $162 million for the prior year period. As
the undiscounted embedded derivative liability on which the nonperformance
credit spread is applied increases (decreases), the impact of the nonperformance
credit spread is favorable (unfavorable) to expense. Additionally, as the
estimate of the nonperformance credit spread over the LIBOR swap curve tightens
or widens, the embedded derivative liability will increase or decrease.

•A $687 million decrease in expense from other market impacts on variable
annuity guaranteed benefits, net of hedges in place to offset those risks and
the related DSIC amortization. This decrease was the result of a favorable $489
million change in the market impact on derivatives hedging the variable annuity
guaranteed benefits and a favorable $198 million change in the market impact on
variable annuity guaranteed living benefits reserves. The main market drivers
contributing to these changes are summarized below:

•Equity market impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a benefit for the six months ended June 30, 2022 compared to an expense in the prior year period.

•Interest rate impact on the variable annuity guaranteed living benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for the six months ended June 30, 2022 compared to the prior year period.


•Volatility impact on the variable annuity guaranteed living benefits liability
net of the impact on the corresponding hedge assets resulted in a benefit for
the six months ended June 30, 2022 compared to an expense in the prior year
period.

•Other unhedged items, including the difference between the assumed and actual
underlying separate account investment performance, fixed income credit
exposures, transaction costs and various behavioral items, were a net expense
for the six months ended June 30, 2022 compared to a net benefit for the prior
year period.

•The mean reversion related impact was an expense of $124 million for the six
months ended June 30, 2022 compared to a benefit of $59 million for the prior
year period.

•A $46 million increase in expense on LTC insurance as claims returned to more normalized levels compared to the prior year period which benefited from COVID-19 related impacts.

Amortization of DAC increased $180 million, for the six months ended June 30, 2022 compared to the prior year period primarily reflecting the following items:


•The DAC offset to the market impact on non-traditional long-duration products
was an expense of $37 million for the six months ended June 30, 2022 compared to
a benefit of $40 million for the prior year period.

                                                                            

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•The mean reversion related impact was an expense of $95 million for the six
months ended June 30, 2022 compared to a benefit of $38 million for the prior
year period.

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


General and administrative expense increased $188 million, or 11%, for the six
months ended June 30, 2022 compared to the prior year period primarily
reflecting the operating expenses of the acquired BMO Global Asset Management
(EMEA) business, and $24 million of integration related expenses, partially
offset by a favorable change in the mark-to-market impact on share-based
compensation.

Income Taxes


Our effective tax rate was 19.2% for the six months ended June 30, 2022 compared
to 15.4% for the prior year period. The higher effective tax rate for the six
months ended June 30, 2022 compared to the six months ended June 30, 2021 was
primarily the result of higher pretax income, a decrease in low income housing
tax credits and an increase in state income taxes, net of federal benefit,
compared to the prior year period. See Note 15 to our Consolidated Financial
Statements for additional discussion on income taxes.

Results of Operations by Segment for the Six Months Ended June 30, 2022 and 2021

The following table presents summary financial information by segment:

                                           Six Months Ended June 30,
                                               2022                 2021
                                                 (in millions)
Advice & Wealth Management
Net revenues                        $       4,098                 $ 3,859
Expenses                                    3,166                   3,047
Adjusted operating earnings         $         932                 $   812
Asset Management
Net revenues                        $       1,898                 $ 1,707
Expenses                                    1,391                   1,226
Adjusted operating earnings         $         507                 $   481
Retirement & Protection Solutions
Net revenues                        $       1,532                 $ 1,595
Expenses                                    1,162                   1,230
Adjusted operating earnings         $         370                 $   365
Corporate & Other
Net revenues                        $         235                 $   258
Expenses                                      364                     356
Adjusted operating loss             $        (129)                $   (98)


Advice & Wealth Management

The following table presents the changes in wrap account assets and average balances for the six months ended June 30:

                                                     2022         2021
                                                       (in billions)
Beginning balance                                  $ 464.7      $ 380.0
Net flows (1)                                         14.8         20.4

Market appreciation (depreciation) and other (1) (80.2) 29.6 Ending balance

                                     $ 399.3      $ 430.0

Advisory wrap account assets ending balance (2) $ 395.1 $ 425.2 Average advisory wrap account assets (3)

           $ 435.7      $ 393.5


(1) Beginning in the first quarter of 2021, wrap net flows is calculated
including dividends and interest less fees which were previously recorded in
Market appreciation (depreciation) and other. Net flows excludes short-term and
long-term capital gain distributions. Prior periods have been restated.

(2) Advisory wrap account assets represent those assets for which clients
receive advisory services and are the primary driver of revenue earned on wrap
accounts. Clients may hold non-advisory investments in their wrap accounts that
do not incur an advisory fee.

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(3) Average ending balances are calculated using an average of the prior period's ending balance and all months in the current period excluding the most recent month for the six months ended June 30, 2022 and 2021.


Ending wrap account assets decreased $65.4 billion, or 14%, to $399.3 billion
during the six months ended June 30, 2022 due to market depreciation and other
of $80.2 billion, partially offset by net inflows of $14.8 billion. Average
advisory wrap account assets increased $42.2 billion, or 11%, compared to the
prior year period primarily reflecting net inflows, partially offset by market
depreciation.

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

                                              Six Months Ended June 30,
                                                  2022                 2021             Change
                                                         (in millions)
Revenues
Management and financial advice fees   $       2,720                 $ 2,504      $ 216         9  %
Distribution fees                              1,071                   1,121        (50)       (4)
Net investment income                            198                     127         71        56
Other revenues                                   114                     114          -            -
Total revenues                                 4,103                   3,866        237         6
Banking and deposit interest expense               5                       7         (2)      (29)
Total net revenues                             4,098                   3,859        239         6
Expenses
Distribution expenses                          2,417                   2,329         88         4

Interest and debt expense                          5                       5          -            -
General and administrative expense               744                     713         31         4
Total expenses                                 3,166                   3,047        119         4
Adjusted operating earnings            $         932                 $   812      $ 120        15  %


Our Advice & Wealth Management segment pretax adjusted operating earnings, which
exclude net realized investment gains or losses, increased $120 million, or 15%,
for the six months ended June 30, 2022 compared to the prior year period due to
higher average wrap account balances and higher earnings on brokerage cash as a
result of increasing short-term interest rates. Pretax adjusted operating margin
was 22.7% for the for the six months ended June 30, 2022 compared to 21.0% for
the prior year period.

Net Revenues

Management and financial advice fees increased $216 million, or 9%, for the six
months ended June 30, 2022 compared to the prior year period primarily due to
growth in average wrap account assets. Average advisory wrap account assets
increased $42.2 billion, or 11%, compared to the prior year period primarily
reflecting net inflows.

Distribution fees decreased $50 million, or 4%, for the six months ended June
30, 2022 compared to the prior year period reflecting decreased transactional
activity, partially offset by higher fees on off-balance sheet brokerage cash
due to an increase in short-term interest rates.

Net investment income, which excludes net realized investment gains or losses,
increased $71 million, or 56%, for the six months ended June 30, 2022 compared
to the prior year period primarily due to higher average invested assets due to
increased bank deposits and the favorable impact of increased short-term
interest rates.

Expenses


Distribution expenses increased $88 million, or 4%, for the six months ended
June 30, 2022 compared to the prior year period reflecting higher asset-based
advisor compensation from higher average wrap account assets and increased
investments in recruiting experienced advisors, partially offset by decreased
transactional activity.

General and administrative expense increased $31 million, or 4%, for the six
months ended June 30, 2022 compared to the prior year period primarily due to
higher volume related expenses and investments for business growth.

                                                                            

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Asset Management


The following table presents global managed assets by type:                                            Average (1)
                              As of June 30,                                                    Six Months Ended June 30,
                           2022             2021                    Change                        2022                2021                    Change
                                                                                    (in billions)
Equity                  $ 306.0          $ 339.0          $ (33.0)            (10) %        $       357.0          $ 319.8          $  37.2              12  %
Fixed income              216.5            202.5             14.0               7                   250.6            197.8             52.8              27
Money market               19.3              5.5             13.8                NM                  14.3              5.9              8.4                NM
Alternative                38.4             23.3             15.1              65                    39.6             22.9             16.7              73
Hybrid and other           18.0             23.1             (5.1)            (22)                   20.9             21.8             (0.9)             (4)
Total managed assets
(2)                     $ 598.2          $ 593.4          $   4.8               1  %        $       682.4          $ 568.2          $ 114.2              20  %

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


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

The following table presents the changes in global managed assets:

                                                          Six Months Ended June 30,
                                                              2022                 2021
                                                                (in billions)
Global Retail Funds (1)
Beginning assets                                   $       409.4                 $ 323.5
Inflows                                                     37.3                    41.9
Outflows                                                   (47.0)                  (34.7)
Net VP/VIT fund flows                                       (2.1)                   (2.0)
Net new flows (2)                                          (11.8)                    5.2
Reinvested dividends                                         4.1                     3.6
Net flows                                                   (7.7)                    8.8
Distributions                                               (4.6)                   (4.2)
Market appreciation (depreciation) and other               (68.9)           

31.3

Foreign currency translation (3)                            (5.2)                    0.1
Total ending assets                                        323.0                   359.5

Global Institutional (1)
Beginning assets                                           344.7                   223.1
Inflows (4)                                                 28.8                    17.1
Outflows (4)                                               (24.9)                  (14.3)
Net flows                                                    3.9                     2.8
Market appreciation (depreciation) and other (5)           (58.1)           

7.3

Foreign currency translation (3)                           (15.3)                    0.7
Total ending assets                                        275.2                   233.9

Total managed assets                               $       598.2                 $ 593.4
Total net flows                                    $        (3.8)                $  11.6

Legacy insurance partners net flows (6)            $        (1.9)           

$ (2.6)



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

(2) First quarter 2022 net flows included $2.5 billion of retail and $0.1 billion of institutional net flows from the US asset transfer in connection with our acquisition of the BMO Global Asset Management (EMEA) business.

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

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


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

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


Total segment AUM decreased $155.9 billion, or 21%, during the six months ended
June 30, 2022 primarily due to equity market depreciation. Net outflows were
$3.8 billion for the six months ended June 30, 2022, a decrease of $15.4 billion
compared to the prior year period.

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

                                                      Six Months Ended June 30,
                                                        2022                2021                     Change
                                                                     (in millions)
Revenues
Management and financial advice fees              $       1,675          $  1,471          $   204              14  %
Distribution fees                                           211               232              (21)             (9)
Net investment income                                         4                 3                1              33
Other revenues                                                8                 1                7                NM
Total revenues                                            1,898             1,707              191              11
Banking and deposit interest expense                          -                 -                -                  -
Total net revenues                                        1,898             1,707              191              11
Expenses
Distribution expenses                                       529               550              (21)             (4)
Amortization of deferred acquisition costs                    6                 6                -                  -
Interest and debt expense                                     2                 2                -                  -
General and administrative expense                          854               668              186              28
Total expenses                                            1,391             1,226              165              13
Adjusted operating earnings                       $         507          $    481          $    26               5  %
NM  Not Meaningful.


Our Asset Management segment pretax adjusted operating earnings, which exclude
net realized investment gains or losses, increased $26 million, or 5%, for the
six months ended June 30, 2022 compared to the prior year period primarily due
to market appreciation and disciplined expense management.

Net Revenues


Management and financial advice fees increased $204 million, or 14%, for the six
months ended June 30, 2022 compared to the prior year period primarily due to
the acquired BMO Global Asset Management (EMEA) business and an increase in
performance fees of $55 million, partially offset by the cumulative impact from
net outflows and the impact of foreign exchange rates.

Distribution fees decreased $21 million, or 9%, for the six months ended June 30, 2022 compared to the prior year period primarily due to the cumulative impact from net outflows.

Other revenues increased $7 million for the six months ended June 30, 2022 compared to the prior year period primarily due to the acquired BMO Global Asset Management (EMEA) business.


Expenses

Distribution expenses decreased $21 million, or 4%, for the six months ended
June 30, 2022 compared to the prior year period primarily due to the cumulative
impact from net outflows.

General and administrative expense increased $186 million, or 28%, for the six
months ended June 30, 2022 compared to the prior year period primarily
reflecting the operating expenses of the acquired BMO Global Asset Management
(EMEA) business and higher performance fee related compensation, partially
offset by the cumulative impact from net outflows and the impact of foreign
exchange rates.

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Retirement & Protection Solutions

The following table presents the results of operations of our Retirement & Protection Solutions segment on an adjusted operating basis:

                                                        Six Months Ended June 30,
                                                          2022                2021                     Change
                                                                       (in millions)
Revenues
Management and financial advice fees                $         415          $    456          $   (41)             (9) %
Distribution fees                                             218               238              (20)             (8)
Net investment income                                         238               253              (15)             (6)
Premiums, policy and contract charges                         654               648                6                  1
Other revenues                                                  7                 -                7                  -
Total revenues                                              1,532             1,595              (63)             (4)
Banking and deposit interest expense                            -                 -                -                  -
Total net revenues                                          1,532             1,595              (63)             (4)
Expenses
Distribution expenses                                         234               263              (29)            (11)
Interest credited to fixed accounts                           192               194               (2)             (1)
Benefits, claims, losses and settlement expenses              463               475              (12)             (3)
Amortization of deferred acquisition costs                    107               133              (26)            (20)
Interest and debt expense                                      18                19               (1)               (5)
General and administrative expense                            148               146                2               1
Total expenses                                              1,162             1,230              (68)             (6)
Adjusted operating earnings                         $         370          $    365          $     5               1  %


Our Retirement & Protection Solutions segment pretax adjusted operating
earnings, which excludes net realized investment gains or losses (net of the
related DAC amortization, unearned revenue amortization and the reinsurance
accrual), the market impact on variable annuity guaranteed benefits (net of
hedges and the related DSIC and DAC amortization), the market impact on IUL
benefits (net of hedges and the related DAC amortization, unearned revenue
amortization and the reinsurance accrual), mean reversion related impacts, and
block transfer reinsurance transaction impacts increased $5 million, or 1%, for
the six months ended June 30, 2022 compared to the prior year period.

Net Revenues


Management and financial advice fees decreased $41 million, or 9%, for the six
months ended June 30, 2022 compared to the prior year period primarily due to
variable annuity net outflows and market depreciation.

Distribution fees decreased $20 million, or 8%, for the six months ended June 30, 2022 compared to the prior year period due to market depreciation.

Expenses

Distribution expenses decreased $29 million, or 11%, for the six months ended June 30, 2022 compared to the prior year period primarily reflecting lower variable annuity sales and market depreciation.


Amortization of DAC, which excludes mean reversion related impacts and the DAC
offset to the market impact on variable annuity guaranteed benefits, decreased
$26 million, or 20%, for the six months ended June 30, 2022 compared to the
prior year period reflecting lower than expected client exit rates.

                                                                            

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Corporate & Other

The following table presents the results of operations of our Corporate & Other segment on an adjusted operating basis:

                                                       Six Months Ended June 30,
                                                         2022                 2021                     Change
                                                                      (in millions)
Revenues

Net investment income                             $            72          $    179          $  (107)            (60) %
Premiums, policy and contract charges                          48                49               (1)             (2)
Other revenues                                                115                31               84                NM
Total revenues                                                235               259              (24)             (9)
Banking and deposit interest expense                            -                 1               (1)               NM
Total net revenues                                            235               258              (23)             (9)
Expenses
Distribution expenses                                          (4)               (4)               -                  -
Interest credited to fixed accounts                           121               123               (2)             (2)
Benefits, claims, losses and settlement expenses              113                67               46              69
Amortization of deferred acquisition costs                      3                 6               (3)            (50)
Interest and debt expense                                      31                32               (1)             (3)
General and administrative expense                            100               132              (32)            (24)
Total expenses                                                364               356                8               2
Adjusted operating loss                           $          (129)         $    (98)         $   (31)            (32) %
NM  Not Meaningful.


Our Corporate & Other segment pretax adjusted operating loss excludes net
realized investment gains or losses, the market impact on fixed index annuity
benefits (net of hedges and the related DAC amortization), the market impact of
hedges to offset interest rate and currency changes on unrealized gains or
losses for certain investments, block transfer reinsurance transaction impact,
gain or loss on disposal of a business that is not considered discontinued
operations, integration and restructuring charges, and the impact of
consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss
increased $31 million, or 32%, for the six months ended June 30, 2022 compared
to the prior year period.

LTC insurance had a pretax adjusted operating earnings of nil for the six months
ended June 30, 2022 compared to a pretax adjusted operating earnings of
$49 million for the prior year period primarily reflecting the return to more
normalized results compared to the COVID-19 related impacts in the prior year
period.

FA business had a pretax adjusted operating loss of $9 million for the six months ended June 30, 2022 compared to a pretax adjusted operating loss of $10 million for the prior year period.

Net Revenues


Net investment income, which excludes net realized investment gains or losses,
the market impact of hedges to offset interest rate and currency changes on
unrealized gains or losses for certain investments, integration and
restructuring charges, and the impact of consolidating CIEs, decreased
$107 million, or 60%, for the six months ended June 30, 2022 compared to the
prior year period primarily reflecting lower average invested assets due to the
sale of investments to a reinsurer as a result of the fixed deferred and
immediate annuity reinsurance transaction and a $15 million gain on a strategic
investment in the prior year period.

Other revenues increased $84 million for the six months ended June 30, 2022 compared to the prior year period primarily reflecting the yield on deposit receivables arising from reinsurance transactions.

Expenses


Benefits, claims, losses and settlement expenses, which excludes DSIC offset to
net realized investment gains or losses, increased $46 million, or 69%, for the
six months ended June 30, 2022 compared to the prior year period primarily
reflecting more normalized claims on LTC insurance, which benefited from
COVID-19 related impacts in the prior year period.

General and administrative expense, which excludes integration and restructuring
charges, decreased $32 million, or 24%, for the six months ended June 30, 2022
compared to the prior year period primarily reflecting the favorable
mark-to-market impact on share-based compensation expense.

                                                                            

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Market Risk

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


Our earnings from fixed insurance, the fixed portion of variable annuities and
variable insurance contracts, and fixed deferred annuities are based upon the
spread between rates earned on assets held and the rates at which interest is
credited to accounts. We primarily invest in fixed rate securities to fund the
rate credited to clients. We guarantee an interest rate to the holders of these
products. Investment assets and client liabilities generally differ as it
relates to basis, repricing or maturity characteristics. Rates credited to
clients' accounts generally reset at shorter intervals than the yield on the
underlying investments. Therefore, in an increasing interest rate environment,
higher interest rates may be reflected in crediting rates to clients sooner than
in rates earned on invested assets, which could result in a reduced spread
between the two rates, reduced earned income and a negative impact on pretax
income. While interest rates under the current environment have relieved some
pressure from the liability guaranteed minimum interest rates ("GMIRs"), there
are still some GMIRs above current levels. Hence, liability credited rates will
move more slowly under a modest rise in interest rates while projected asset
purchases would capture the full increase in interest rates. This dynamic would
result in widening spreads under a modestly rising rate scenario given the
current relationship between the current level of interest rates and the
underlying GMIRs on the business.

As a result of the current market environment, reinvestment yields are becoming
more aligned with the current portfolio yield. We would expect the recent
decline in our portfolio income yields to slow and begin to stabilize in future
periods under the current environment. The carrying value and weighted average
yield of non-structured fixed maturity securities and commercial mortgage loans
that may generate proceeds to reinvest through June 30, 2024 due to prepayment,
maturity or call activity at the option of the issuer, excluding securities with
a make-whole provision, were $2.6 billion and 2.5%, respectively, as of June 30,
2022. In addition, residential mortgage backed securities, which can be subject
to prepayment risk under a low interest rate environment, totaled $13.3 billion
and had a weighted average yield of 2.5% as of June 30, 2022. While these
amounts represent investments that could be subject to reinvestment risk, it is
also possible that these investments will be used to fund liabilities or may not
be prepaid and will remain invested at their current yields. In addition to the
interest rate environment, the mix of benefit payments versus product sales as
well as the timing and volumes associated with such mix may impact our
investment yield. Furthermore, reinvestment activities and the associated
investment yield may also be impacted by corporate strategies implemented at
management's discretion. The average yield for investment purchases during the
six months ended June 30, 2022 was approximately 3.3%.

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

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

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

We have a macro hedge program to provide protection against the statutory tail
scenario risk arising from variable annuity reserves on our statutory surplus
and to cover some of the residual risks not covered by other hedging activities.
We assess the residual risk under a range of scenarios in creating and executing
the macro hedge program. As a means of economically hedging these risks, we may
use a combination of futures, options, swaps and swaptions. Certain of the macro
hedge derivatives used contain settlement provisions linked to both equity
returns and interest rates; the remaining are interest rate contracts or equity
contracts. The macro hedge program could result in additional earnings
volatility as changes in the value of the macro hedge derivatives, which are
designed to reduce statutory capital volatility, may not be closely aligned to
changes in the variable annuity guarantee embedded derivatives.

To evaluate interest rate and equity price risk we perform sensitivity testing
which measures the impact on pretax income from the sources listed below for a
12-month period following a hypothetical 100 basis point increase in interest
rates or a hypothetical 10%

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decline in equity prices. The interest rate risk test assumes a sudden 100 basis
point parallel shift in the yield curve, with rates then staying at those levels
for the next 12 months. The equity price risk test assumes a sudden 10% drop in
equity prices, with equity prices then staying at those levels for the next 12
months. In estimating the values of variable annuities, indexed annuities, stock
market certificates, indexed universal life ("IUL") insurance and the associated
hedge assets, we assume no change in implied market volatility despite the 10%
drop in equity prices.

The following tables present our estimate of the impact on pretax income from the above defined hypothetical market movements as of June 30, 2022:

                                                                                        Equity Price Exposure to Pretax Income
                 Equity Price Decline 10%                                  Before Hedge Impact                   Hedge Impact           Net Impact
                                                                                                    (in millions)
Asset-based management and distribution fees (1)                  $          (287)                             $           3          $      (284)
DAC and DSIC amortization (2)(3)                                              (40)                                         -                  (40)
Variable annuities:
GMDB and GMIB (3)                                                             (19)                                         -                  (19)
GMWB (3)                                                                     (593)                                       585                   (8)
GMAB                                                                          (37)                                        37                    -
Structured variable annuities                                                 399                                       (370)                  29
DAC and DSIC amortization (4)                                                                        N/A                    N/A                (3)
Total variable annuities                                                     (250)                                       252                   (1)
Macro hedge program (5)                                                         -                                        117                  117

IUL insurance                                                                  19                                        (22)                  (3)
Total                                                             $          (558)                             $         350          $      (211)   (6)
N/A Not Applicable.


                                                                                                    Interest Rate Exposure to Pretax Income
                 Interest Rate Increase 100 Basis Points                                Before Hedge Impact                 Hedge Impact           Net Impact
                                                                                                                 (in millions)
Asset-based management and distribution fees (1)                                $          (54)                           $           -          $        (54)
Variable annuities:

GMWB                                                                                       867                                   (1,072)                 (205)
GMAB                                                                                         6                                       (8)                   (2)
Structured variable annuities                                                              (33)                                     131                    98
DAC and DSIC amortization (4)                                                                                   N/A                    N/A                 13
Total variable annuities                                                                   840                                     (949)                  (96)
Macro hedge program (5)                                                                      -                                     (148)                 (148)

Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products

                43                                        -                    43
Banking deposits                                                                            31                                        -                    31
Brokerage client cash balances                                                             199                                        -                   199

Certificates                                                                                14                                        -                    14
IUL insurance                                                                               16                                        2                    18
Total                                                                           $        1,089                            $      (1,095)         $          7
N/A Not Applicable.


(1) Excludes incentive income which is impacted by market and fund performance
during the period and cannot be readily estimated.
(2) Market impact on DAC and DSIC amortization resulting from lower projected
profits.

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

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

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

(6) Represents the net impact to pretax income. The estimated net impact to pretax adjusted operating income is approximately $(284) million.


The above results compare to an estimated negative net impact to pretax income
of $190 million related to a 10% equity price decline and an estimated positive
net impact to pretax income of $80 million related to a 100 basis point increase
in interest rates as of

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December 31, 2021. The change in interest rate exposure as of June 30, 2022 compared to December 31, 2021 was driven by additional downside rate protection added in the macro hedge program.


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

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

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

Fair Value Measurements


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

Fair Value of Liabilities and Nonperformance Risk


Companies are required to measure the fair value of liabilities at the price
that would be received to transfer the liability to a market participant (an
exit price). Since there is not a market for our obligations of our variable
annuity riders, fixed deferred indexed annuities, structured variable annuities,
and IUL insurance, we consider the assumptions participants in a hypothetical
market would make to reflect an exit price. As a result, we adjust the valuation
of variable annuity riders, fixed deferred indexed annuities, structured
annuities, and IUL insurance by updating certain contractholder assumptions,
adding explicit margins to provide for risk, and adjusting the rates used to
discount expected cash flows to reflect a current market estimate of our
nonperformance risk. The nonperformance risk adjustment is based on observable
market data adjusted to estimate the risk of our life insurance company
subsidiaries not fulfilling these liabilities. Consistent with general market
conditions, this estimate resulted in a spread over the LIBOR swap curve as of
June 30, 2022. As our estimate of this spread widens or tightens, the liability
will decrease or increase. If this nonperformance credit spread moves to a zero
spread over the LIBOR swap curve, the reduction to future net income would be
approximately $577 million, net of DAC, DSIC, unearned revenue amortization, the
reinsurance accrual and income taxes (calculated at the statutory tax rate of
21%), based on June 30, 2022 credit spreads.

Liquidity and Capital Resources

Overview


We maintained substantial liquidity during the six months ended June 30, 2022.
At June 30, 2022 and December 31, 2021, we had $7.5 billion and $7.1 billion,
respectively, in cash and cash equivalents excluding CIEs and other restricted
cash on a consolidated basis.

At June 30, 2022 and December 31, 2021, the parent company had $759 million and
$841 million, respectively, in cash, cash equivalents, and unencumbered liquid
securities. Liquid securities predominantly include U.S. government agency
mortgage back securities. Additional sources of liquidity include a line of
credit with an affiliate up to $729 million and an unsecured revolving committed
credit facility for up to $1.0 billion that expires in June 2026. Management's
estimate of liquidity available to the parent company in a volatile and
uncertain economic environment as of June 30, 2022 was $1.9 billion which
includes cash, cash equivalents, unencumbered liquid securities, the line of
credit with an affiliate and a portion of the committed credit facility.

Under the terms of the committed credit facility, we can increase the availability to $1.25 billion upon satisfaction of certain approval requirements. Available borrowings under this facility are reduced by any outstanding letters of credit. At June 30, 2022, we had no outstanding borrowings under this credit facility and had $1 million of letters of credit issued against the facility. Our credit facility contains various administrative, reporting, legal and financial covenants. We remain in compliance with all such covenants at June 30, 2022.

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                          AMERIPRISE FINANCIAL, INC.
In addition, we have access to collateralized borrowings, which may include
repurchase agreements and Federal Home Loan Bank ("FHLB") advances. Our
subsidiaries, RiverSource Life Insurance Company ("RiverSource Life"), and
Ameriprise Bank, FSB are members of the FHLB of Des Moines, which provides
access to collateralized borrowings. As of June 30, 2022 and December 31, 2021,
we had $9.0 billion and $8.1 billion, respectively, under the FHLB facilities,
of which $200 million was outstanding as of both June 30, 2022 and December 31,
2021, and is collateralized with commercial mortgage backed securities and
residential mortgage backed securities.

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


We repaid $500 million principal amount of our 3.0% senior notes at maturity on
March 22, 2022. We issued $500 million of 4.5% unsecured senior notes on May 13,
2022. See Note 10 to our Consolidated Financial Statements for further
information about our long-term debt maturities.

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

We continue to monitor and respond to the ongoing COVID-19 pandemic. Our risk
management strategy is designed to provide proactive protection during stress
events such as the current pandemic. We believe our process is working as
intended, and our liquidity and capital resources have remained a source of
balance sheet strength during the six months ended June 30, 2022.

Dividends from Subsidiaries


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

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

                                                                 Actual Capital                                   Regulatory Capital Requirements
                                                    June 30, 2022           December 31, 2021                June 30, 2022                December 31, 2021
                                                                                                 (in millions)
RiverSource Life (1)(2)                           $        3,085          $            3,419                                  N/A       $              

502

RiverSource Life of NY (1)(2)                                210                         310                                  N/A                       42
ACC (4)(5)                                                   303                         304          $             282                                283
TAM UK International Holdings Ltd (6)                        476                         330                        241                                

248


Ameriprise Bank, FSB (4) (7)                               1,181                         853                        769                                589
AFS (3)(4)                                                   162                         103                                    #                           #
Ameriprise Captive Insurance Company (3)                      37                          39                         12                                 

10

Ameriprise Trust Company (3)                                  50                          47                         37                                 44
AEIS (3)(4)                                                  168                         155                         31                                 29
RiverSource Distributors, Inc. (3)(4)                         11                          10                                    #                       

#

Columbia Management Investment Distributors, Inc.
(3)(4)                                                        18                          14                                    #                       

#

Columbia Threadneedle Investments UK
International Ltd. (8)                                       315                         348                        153                                170

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

# Amounts are less than $1 million.

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

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

(3) Regulatory capital requirement is based on the applicable regulatory requirement, calculated as of June 30, 2022 and December 31, 2021.

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

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

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                          AMERIPRISE FINANCIAL, INC.

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

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

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

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


During the six months ended June 30, 2022, the parent holding company received
cash dividends or a return of capital from its subsidiaries of $1.4 billion
(including $500 million from RiverSource Life) and contributed cash to its
subsidiaries of $294 million (including $245 million to Ameriprise Bank, FSB).
During the six months ended June 30, 2021, the parent holding company received
cash dividends or a return of capital from its subsidiaries of $1.6 billion
(including $750 million from RiverSource Life) and contributed cash to its
subsidiaries of $71 million (including $7 million to Ameriprise Bank, FSB).

In 2009, RiverSource Life established an agreement to protect its exposure to
Genworth Life Insurance Company ("GLIC") for its reinsured LTC. In 2016,
substantial enhancements to this reinsurance protection agreement were
finalized. The terms of these confidential provisions within the agreement have
been shared, in the normal course of regular reviews, with our domiciliary
regulator and rating agencies. GLIC is domiciled in Delaware, so in the event
GLIC was subjected to rehabilitation or insolvency proceedings, such proceedings
would be located in (and governed by) Delaware laws. Delaware courts have a long
tradition of respecting commercial and reinsurance affairs as well as contracts
among sophisticated parties. Similar credit protections to what we have with
GLIC have been tested and respected in Delaware and elsewhere in the United
States, and as a result we believe our credit protections would be respected
even in the unlikely event that GLIC becomes subject to rehabilitation or
insolvency proceedings in Delaware. Accordingly, while no credit protections are
perfect, we believe the correct way to think about the risks represented by our
counterparty credit exposure to GLIC is not the full amount of the gross
liability that GLIC reinsures, but a much smaller net exposure to GLIC (if any
that might exist after taking into account our credit protections). Thus,
management believes that our agreement and offsetting non-LTC legacy
arrangements with Genworth will enable RiverSource Life to recover on all net
exposure in all material respects in the event of a rehabilitation or insolvency
of GLIC.

Dividends Paid to Shareholders and Share Repurchases


We paid regular quarterly dividends to our shareholders totaling $275 million
and $263 million for the six months ended June 30, 2022 and 2021, respectively.
On July 26, 2022, we announced a quarterly dividend of $1.25 per common share.
The dividend will be paid on August 19, 2022 to our shareholders of record at
the close of business on August 8, 2022.

In August 2020, the Company's Board of Directors authorized us to repurchase up
to $2.5 billion of our common stock through September 30, 2022, which was
exhausted in the second quarter of 2022. In January 2022, the Company's Board of
Directors authorized an additional $3.0 billion for the repurchase of the
Company's common stock through March 31, 2024. As of June 30, 2022, we had
$2.5 billion remaining under the share repurchase authorization. We intend to
fund share repurchases through existing working capital, future earnings and
other customary financing methods. The share repurchase program does not require
the purchase of any minimum number of shares, and depending on market conditions
and other factors, these purchases may be commenced or suspended at any time
without prior notice. Acquisitions under the share repurchase program may be
made in the open market, through privately negotiated transactions or block
trades or other means. During the six months ended June 30, 2022, we repurchased
a total of 3.2 million shares of our common stock at an average price of $279.74
per share.

Cash Flows

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

Operating Activities


Net cash provided by operating activities increased $887 million to $1.8 billion
for the six months ended June 30, 2022 compared to $931 million for the prior
year period primarily reflecting a $489 million increase in net income, a $327
million increase in current income tax, net and a $318 million increase in
deferred taxes, net, partially offset by a $224 million decrease in policyholder
account balances, future policy benefits and claims, net.

Investing Activities


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

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                          AMERIPRISE FINANCIAL, INC.
Net cash used in investing activities increased $3.7 billion to $4.6 billion for
the six months ended June 30, 2022 compared to $909 million for the prior year
period primarily reflecting a $2.7 billion increase in cash used for purchases
of Available-for-Sale securities and a $1.7 billion decrease in proceeds from
maturities, sinking fund payments and calls of Available-for-Sale securities,
partially offset by a $567 million decrease in net cash flows used related to
investments of consolidated investment entities.

Financing Activities


Net cash provided by financing activities increased $2.7 billion to $2.6 billion
for the six months ended June 30, 2022 compared to net cash used in financing
activities of $101 million for the prior year period primarily reflecting a $2.8
billion increase in banking deposits, a $995 million reduction in net cash
outflows from investment certificates and $491 million increase in issuance of
long-term debt, partially offset by a $1.4 billion decrease in borrowings by
CIEs and a $501 million increase in repayments of long-term debt.

Forward-Looking Statements


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

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

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


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

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

•statements of assumptions underlying such statements.


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

Such factors include, but are not limited to:

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

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

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

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

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

•declines in our investment management performance;

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

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

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

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

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

•the illiquidity of our investments;

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

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

•failures or defaults by counterparties to our reinsurance arrangements;

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

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

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

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

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

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                          AMERIPRISE FINANCIAL, INC.

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

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

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

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

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


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

• legal and regulatory actions brought against us;

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

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

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

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

•changes in and the adoption of new accounting standards.


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

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

© Edgar Online, source Glimpses

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