AMP 10-K & 10-Q changes, risk factors and insider trading

Our results of operations and financial condition may be materially affected by market fluctuations and by economic and other factors (whether actual or perceived). Such factors, which can be global, regional, national or local in nature, include: (i) the level and volatility of the markets, including equity prices, interest rates, commodity prices, currency values and other market indices and drivers; (ii) geopolitical strain, terrorism and armed conflicts, (iii) political dynamics or elections and social, economic and market conditions; (iv) the availability and cost of capital; (v) global health emergencies; (vi) technological changes and events; (vii) U.S. and foreign government regulatory, fiscal and tax policies; (viii) U.S. and foreign government ability, real or perceived, to avoid defaulting on government securities; (ix) the availability and cost of credit and hedge markets; (x) periods of elevated inflation; (xi) natural disasters such as weather catastrophes; and (xii) other factors affecting investor sentiment and confidence in the financial markets. Furthermore, changes in consumer economic variables, such as the number and size of personal bankruptcy filings, the rate of unemployment, decreases in property values, and the level of consumer confidence and consumer debt, may substantially affect consumer financials, which, in turn, could impact client activity in all of our businesses. These factors also may have an impact on our ability to achieve our strategic objectives or to pay dividends or otherwise return capital from our subsidiaries to our holding company.

These factors willmay also impact client behavior. Market downturns, stagnation, and volatility may cause, and have caused, individual investors to limit or decrease their participation in global marketsmarkets, which may negatively impactingimpact our retail business and/or our product sales. Market conditions, regulatory actions, tax laws, and our competitive industry environment are among the reasons current shareholders in our mutual funds, closed-end funds, exchange traded funds (“ETFs”),ETFs, hedge funds, OEICs, SICAVs, unit trusts, investment trusts and other pooled investment vehicles, contractholders in our annuity products and policyholders in our protection products may opt to withdraw cash values for those products (or for certain protection products, to reduce their withdrawal activity). If we are unable to offer appropriate product alternatives which encourage clients to continue purchasing in the face of actual or perceived market volatility, our sales and management fee revenues could decline.

Downturns and volatility in markets or the departure of a key clientclients or advisors have had, and may in the future have, an adverse effect on the revenues and returns from our asset management services, retail advisory accounts, variable annuity contracts, banking products and other products. Because the profitability of these products and services depends on fees related primarily to the value of assets under management, declines in the markets will reduce our revenues because the value of the investment assets we manage will be reduced. In addition, a significant portion of our revenue is derived from investment management agreements with the Columbia Management family of mutual funds or other investment managers which are terminable on 60 days’ notice. Although some contracts governing investment management services are subject to termination for failure to meet performance benchmarks, institutional and individual clients can generally terminate their relationships with us or our financial advisors at will or on relatively short notice. Further, a number of the products and services we make available to our clients are those offered by third parties and negative perceptions of these financial products and services (or the financial industry in general) may impact the number of withdrawals and redemptions or reduce purchases made by our clients, which would adversely impact the levels of our assets under management. Our clients can also reduce the aggregate amount of managed assets or shift their funds to other types of accounts with different fee rate structures, for any number of reasons, including investment performance, changes in prevailing interest rates, changes in investment preferences or investment management strategy (for example, “active” or “passive” investing styles or the proliferation of ETFs or other vehicles like separately managed accounts (“SMAs”)), changes in our (or our advisors’) reputation in the marketplace, a client’s view of ESGsustainability factors, changes in client or relationship management, loss of key investment management personnel and financial market performance. This reduction in managed assets or significant redemptions, and the associated decrease in revenues and earnings, could have a material adverse effect on our business, particularly in products or services where we have less scale and a reduction in managed assets can make the product not viable or even require us to exit the product.

Most of our variable annuity products contain guaranteed minimum death benefits and a majority of our variable annuity products in force contain guaranteed minimum withdrawal and accumulation benefits. Decline or volatility in equity and/or bond markets could result in guaranteed minimum benefits being higher than what current account values would support, which would adversely affect our financial condition and results of operations. DiscontinuingWe discontinued the sale of new fixed annuities and variable annuities with living benefitsbenefits, which we believe will lessen this risk over time. Although we have hedgedhedge a portion of the guarantees for the variable annuity contracts to mitigate the financial loss of equity and/or bond market declines or volatility, there can be no assurance that such a decline or volatility would not materially impact the profitability of certain products or product lines or our financial condition or results of operations. For example, market fluctuations will impact our statutory reserves and required capital, and that may not be aligned with the hedging impacts. In addition to risks from guarantees discussed above, structured variable annuity contracts contain index-linked risks that adjust the policyholder’s or contractholder’s account value based on equity movements. These risks are hedged with derivatives, which are a material component of our overall hedging program. Collateral requirements for the hedging program are market-sensitive, and certain market environments (e.g., rising interest rates) will result in increased needs for liquidity to satisfy these requirements. Depending on how rapidly the market moves and other factors, we may need to access liquidity sources that are more costly, which could have an adverse impact on profitability or our results of operations or financial condition.

Volatility, uncertainty and disruption in the capital and credit markets may decrease available liquidity, which we may need to payrun our expensesbusiness and pay dividends. If the market conditions hinder our availability to obtain capital or liquidity, our business could suffer.

Intense competitioncompetition, new technologies and the economies of scale for larger competitors could negatively impact our ability to maintain or increase our market share and profitability.

Our businesses operate in intensely competitive industries, including broker-dealers, banks, asset managers, insurers and other financial institutions, some of which have a larger market share, greater investments in technology and analytics, greater investment in advertising and brand, less regulation or greater financial resources than we do. Furthermore, ournew and existing competitors may be better able to address trends, structural changes, or movement of assets resulting from new technologies, including Generative AI and blockchain, or adapt to industry changes or in response to the uncertain regulatory environment in the U.S. and around the world. We could experience lower sales, higher costs, talent loss, technology obsolescence or other developments that could negatively impact our results of operations.

Investment performance is a key competitive factor for our retail and institutional asset management products and services and is a key driver of growing assets under management and advisement and obtaining the benefits of economies of scale. Strong investment performance supports the retention of our products and services by our clients and creates opportunities for new sales of products and services. It may also result in higher ratings by ratings services such as Morningstar or Lipper, which may compound the foregoing effects.

There can be no assurance as to how future investment performance will compare to our competitors or that historical performance will be indicative of future returns. Any drop or perceived drop in investment performance as compared to our competitors could cause a decline in sales of our investment products, an increase in redemptions and the termination of asset management relationships. These impacts may reduce our aggregate amount of assets under management and advisement and reduce management fees. Poor investment performance could also adversely affect our ability to expand the distribution of our products through unaffiliated third parties. Further, any drop in market share of mutual funds sales by our advisors or through third party intermediaries, may further reduce profits as sales of other companies’ mutual funds are less profitable than sales of our proprietary funds.

Our continued success dependsrelies on ourattracting, ability to attract, motivate, engageengaging and retainretaining high-performing and high-potentialtop talent in aan highlyincreasingly competitive industry.market. AlthoughWhile the employmentjob market ishas stabilizingcooled comparedin tosome recent years, theindustries, financial services sector remains a highlyexceptionally competitive industry, especially for topthe best talent. We proactivelyactively assessmanage retention risks and invest in our employeespeople to remainsustain our position as an employer of choice. Additionally,To expand access to top talent, we have diversifiedstrategically broadened our geographicfootprint, footprintensuring we have the right capabilities in place to attractsupport andlong-term retain top talent globally, including expanding our workforce in India.growth.

Capital and credit market volatility or a sudden devaluation of a specific product or security (such as the broad impacts experienced from the 2023 regional bank crisis) can exacerbate, and has exacerbated, the risk of third-party defaults, bankruptcy filings, foreclosures, legal actions and other events that may limit the value of or restrict our access and our clients’ access to cash and investments. Although we are not required to do so, we have elected in the past, and we may elect in the future, to compensate clients for losses incurred in response to such events, provide clients with temporary credit or liquidity or other support related to products that we manage, or provide credit liquidity or other support to the financial products we manage. If we elect to provide additional support, we could incur losses from the support we provide and incur additional costs, including financing costs, in connection with the support. These losses and additional costs could be material and could adversely impact our results of operations. If we were to take such actions we may also restrict or otherwise utilize our corporate assets, limiting our flexibility to use these assets for other purposes, and may be required to raise additional capital.

We distribute many of our investment products through unaffiliated third-party advisors and financial institutions. Maintaining and deepening relationships with these unaffiliated distributors is an important part of our growth strategy, as strong third-party distribution arrangements enhance our ability to market our products or service our clients and to increase our assets under management,management and advisement, revenues and profitability. Access to distribution channels is subject to intense competition due to the large number of competitors and products in the investment advisory industry as well as regulatory and consumer trends driving escalating compliance, disclosure and risk management requirements for distributors. Relationships with our distributors are subject to periodic negotiation that may result in increased distribution costs and/or reductions in the amount of our products marketed.

The sale of third-party products to our clients (and further expansion of our advisor network’s product suite to include additional products of unaffiliated insurance companies and asset managers) may lower sales of our companies’ own products, lead to higher surrenders or redemptions, or other developments which might not be fully offset by higher distribution revenues or other benefits, possibly resulting in an adverse effect on our results of operations.

Fixed maturity, equity, trading securities and short-term investments, which are reported at fair value on theour Consolidated Balance Sheets, represent the majority of our total cash and invested assets. The determination of fair values by management in the absence of quoted market prices is based on valuation methodologies, securities we deem to be comparable, and assumptions deemed appropriate given the circumstances. The fair value estimates are made at a specific point in time, based on available market information and judgments about financial instruments, including estimates of the timing and amounts of expected future cash flows and the credit standing of the issuer or counterparty. Factors considered in estimating fair value include: coupon rate, maturity, estimated duration, call provisions, sinking fund requirements, credit rating, industry sector of the issuer, current interest rates and credit spreads, and quoted market prices of comparable securities. The use of different methodologies and assumptions may have a material effect on the estimated fair value amounts.

We use reinsurance to mitigate certain of our risks. Reinsurance does not relieve us of our direct liability to our policyholders and contractholders, even when the reinsurer is liable to us. Accordingly, we bear credit and performance risk with respect to our reinsurers, including Commonwealth and Genworth Life Insurance Company. In July 2016, we finalized various confidential enhancements with Genworth Life Insurance Company that have been shared, in the normal course of regular reviews, with our Domiciliary Regulators and rating agencies. A reinsurer’s insolvency or its inability or unwillingness to make payments under the terms of our reinsurance agreement could have a material adverse effect on our financial condition and results of operations.

Our reputation is one of our most important assets. Our ability to attract and retain clients, investors, employees and advisors is highly dependent upon external perceptions of our company. Damage to our reputation could cause significant harm to our business and prospects. Reputational damage may arise from numerous sources, including litigation or regulatory actions, failing to deliver minimum standards of service and quality, compliance failures, any perceived or actual weakness in our financial strength or liquidity, clients’ or potential clients’ perceived failure of how we address certain political, environmental, social or governance topics, technological breakdowns, cybersecurity attacks, or other security breaches (including attempted breaches, breaches impacting our vendors or their subcontractors or inadvertent disclosures) resulting in system unavailability, improper disclosure or loss of data integrity relating to client or employee personal information, unethical or improper behavior and the misconduct or error of our employees, advisors and counterparties. Additionally, a failure to develop new products and services, or successfully manage associated operational risks, could harm our reputation and potentially expose us to additional costs, or negative public relations or social media campaigns. We are also subject to deepfake threats that use AI to digitally alter images, video or audio to make it appear as though someone said or did something that could cause damage to our reputation. Any negative incidents can quickly erode trust and confidence, particularly if they result in adverse mainstream and social media publicity, governmental audits or investigations or litigation. Adverse developments with respect to our industry may also, by association, negatively impact our reputation or result in greater regulatory or legislative scrutiny or litigation against us.

We operate in many regions, countries and communities around the world where our business, and the activities of our clients and counterparties, could be adversely affected by climate change. Climate change may increase the severity and frequency of weather-related catastrophes, or adversely affect our investment portfolio or investor sentiment. This includes the potential for an increase in the frequency and severity of weather-related disasters and pandemics. In addition, climate change regulation may affect the prospects of companies and other entities whose securities we hold, or our willingness to continue to hold their securities. Climate change may also influence investor sentiment with respect to the CompanyAmeriprise and investments in our portfolio and those available to clients through third parties. It may also impact other counterparties, including reinsurers, and affect the value of investments, including real estate investments we hold or manage for others. Climate risks can also arise from the inconsistencies and conflicts in the manner in which climate policy, disclosure requirements and financial regulation is implemented in the many regions where we operate, including initiatives to apply and enforce policy and regulation with extraterritorial effect. Transition risks may arise from societal adjustment to a lower-carbon economy, such as changes in public policy, adoption of new technologies or changes in consumer preferences towards low-carbon goods and services. These risks could also be influenced by changes in the physical climate. Overall, we cannot predict or estimate the long-term impacts on us from climate change or related regulation.

We and our advisors, as well as our service providers and clients, have also been threatened by, among others, phishing, vishing, and spear phishing scams, social engineering attacks (such as direct voice contact and any technology or communication mechanism to contact a person), account takeovers, introductions of malware, attempts at electronic break-ins, and the submission of fraudulent payment requests. The number of threats and events has increased substantially every year, which is expected to continue, particularly as the use of artificial intelligenceAI makes these attempts look more legitimate.legitimate and is leveraged to improve their effectiveness. Attempted or successful breaches or interference by third parties or by insiders that may occur in the future could have a material adverse impact on our business, reputation, financial condition or results of operations.

On a corporate basis, various laws and regulations, and in some cases contractual obligations, require us to establish and maintain corporate policies and technical and operational measures designed to protect sensitive client, employee, contractor and vendor information, and to respond to cybersecurity incidents in certain ways and timeframes. We have established policies and implemented such technical and operational measures ourselves and have in place policies that require our service providers and franchisee advisors, each of which control locally their own technology operations, to do the same. The hybrid work environment among our employees adds complexity to monitoring and processing procedures. Changes in our business or technological advancements may also require corresponding changes in our systems, networks and data security and response measures. While accessing our products and services, our clients may use computers and other devices that sit outside of our security control environment. In addition, the ever-increasing reliance on technology systems and networks and the occurrence and potential adverse impact of attacks on such systems and networks (including in recent well-publicized security breaches at other companies),networks, both generally and in the financial services industry, have enhanced government and regulatory scrutiny of the measures taken by companies to protect against cybersecurity threats and report incidents they suffer. As these threats, and government and regulatory oversight of associated risks, continue to evolve, we may be required to expend significant additional resources (both direct financial resources and indirect costs like people) to enhance or expand upon the technical and operational security and response measures we currently maintain or that we allow franchise advisors to maintain and control locally. These regulator-driven changes may adversely impact the client experience by, for example, requiring multiple or new means of verifying the identity of a client before they can interact with us.

Our policies and procedures to identify, monitor and manage risks may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk. Many of our methods of managing risk and the associated exposures are based upon our use of observed historical experience or expectations about future experience (e.g., market behavior, client/policyholder behavior, employee behavior, mortality, etc.) or statistics based on historical models. Experience may not emerge as expected and during periods of market volatility, or due to unforeseen events, the historically-derivedhistorically derived experience and correlations may not be valid. As a result, these methods and models may not predict future exposures accurately, which could be significantly greater than what our models indicate. Further some controls are manual and are subject to inherent limitations and we have a general model risk where there is a risk of loss associated with insufficient or inaccurate models that we use to support our decisions. This could cause us to incur investment losses or cause our hedging and other risk management strategies to be ineffective. Other risk management methods depend upon the evaluation of information regarding markets, clients, catastrophe occurrence or other matters that are publicly available or otherwise accessible to us, which may not always be accurate, complete, up-to-date or properly evaluated.

Our financial performance also requires us to develop, effectively manage, and market new or existing products and services that appropriately anticipate or respond to changes in the industry and evolving client demands. The development and introduction of new products and services, including the creation of Asset Management and other products with a focus on environmental, social and governancevalues-based matters, require continued innovative effort and may require significant time, resources, and ongoing support. Further, avoiding introducing or encouraging certain new products (such as cryptocurrency) creates the risk of losing assets or new flows to competitors who encourage or support those products. Substantial risk and uncertainties are associated with the introduction and ongoing maintenance of new products and services, including the implementation of new and appropriate operational controls and procedures, shifting and sometimes contradictory client and market preferences, the introduction of competing products or services and compliance with regulatory requirements.

The occurrence of natural disasters and catastrophes, including earthquakes, hurricanes, floods, tornadoes, fires, blackouts, severe winter weather, explosions, pandemic disease and global health emergencies and man-made disasters, including acts of terrorism, riots, civil unrestunrest, including large-scale protests, insurrections and military actions, could adversely affect our results of operations or financial condition. Such disasters and catastrophes may damage our facilities, preventing our service providers, employees and financial advisors from performing their roles, or otherwise disturbing our ordinary business operations and by impacting insurance claims, as described below. These impacts could be particularly severe to the extent they affect access to physical facilities, the physical well-being of large numbers of our employees, our computer-based data processing, transmission, storage and retrieval systems and destroy or release valuable data. Such disasters and catastrophes may also impact us indirectly by changing the condition and behaviors of our clients, business counterparties and regulators, as well as by causing declines or volatility in the economic and financial markets.

The potential effects of natural and man-made disasters and catastrophes on certain of our businesses include but are not limited to the following: (i) a catastrophic loss of life may materially increase the amount of or accelerate the timing in which benefits are paid under our insurance policies; (ii) an increase in claims and any resulting increase in claims reserves caused by a disaster may harm the financial condition of our reinsurers, thereby impacting the cost and availability of reinsurance and the probability of default on reinsurance recoveries; (iii) widespread unavailability of staff; and (iv) declines and volatility in the financial markets that may decrease the value of our assets under managementmanagement, administration and administration,advisement, which could harm our financial condition and reduce our management fees.

We have made acquisitions and divestitures in the past and may pursue similar strategic transactions in the future. Risks in acquisition transactions include difficulties in the integration of acquired businesses into our operations and control environment (including our risk management policies and procedures), difficulties in assimilating and retaining employees and intermediaries, difficulties in retaining the existing clients of the acquired entities, assumed or unforeseen liabilities that arise in connection with the acquired businesses, difficulties obtaining regulatory approval or integrating into regulatory regimes, difficulties with the software, technology and systems of the acquired entities that were subject to a different control posture before the acquisition (and until such time as we can replace these or make investments to uplift their capabilities), the failure of counterparties to satisfy any obligations to indemnify us against liabilities arising from the acquired businesses, and unfavorable market conditions that could negatively impact our growth expectations or expected synergies for the acquired businesses. Fully integrating an acquired company or business into our operations (such as our 2021 acquisition of the BMO Global Asset Management (EMEA) business) takes a significant amount of time and attention and incurs both expected and unexpected integration costs over several years. Integrations, particularly larger and more global integrations, are time-consuming and expensive and could significantly disrupt our business.

Failure to meet one or more of these requirements could, depending on the violation, limit Ameriprise’sour ability to undertake new activities, continue certain activities, or make acquisitions other than those permitted generally for bank holding companies. Execution of our business strategies also may require certain regulatory approvals or consents, which may include approvals of the FRB and other domestic and non-U.S. regulatory authorities. These regulatory authorities may impose conditions on the activities or transactions contemplated by our business strategies which may negatively impact our ability to realize fully the expected benefits of certain opportunities.

Many of the products we offer or on which our businesses are based (including both insurance products and non-insurance products) receive favorable treatment under current U.S. federal income or estate tax law. Changes in U.S. federalcurrent income or estate tax law could reduce or eliminate the tax advantages of certain of our products and thus make such products less attractive to clients or cause a change in client demand and activity.

Ameriprise Financial is a diversified financial services company with a more than 130-year history of providing financial solutions. We are a long-standing leader in financial planning and advice with $1.5$1.7 trillion in assets under management, administration, and advisement as of December 31, 2024.2025. We offer a broad range of products and services designed to achieve individual and institutional clients’ financial objectives. For additional discussion of our businesses, see Part I, Item 1 of this Annual Report on Form 10-K.

In the third quarter, we conducted our annual review of life insurance, annuity and long term care (“LTC”) valuation assumptions relative to current experience and management expectations including modeling changes. These annual assumption updatesupdates, including model changes, are collectively referred to as unlocking throughout this document. See our Consolidated and Segment Results of Operations sections for the pretax impacts on our revenues and expenses attributable to unlocking.

The following discussion includes a comparison of our 20242025 and 20232024 results. For a discussion of our 2022 results and for a comparison of results for 20232024 and 2022,2023, see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the year ended December 31, 2023,2024, which was filed with the SEC on February 22,20, 2024.2025.

(1) Adjustments reflect the sum of after-tax net realized investment gains/ or losses, net of the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the 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; block transfer reinsurance transaction impacts; 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%.

The liability for future policy benefits for traditional long-duration products include cash flows related to unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI and LTC insurance and life contingent payout annuity policies as claims are incurred in the future. A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. Expected insurance benefits are accrued over the life of the contract in proportion to premium revenue recognized (referred to as the net premium approach). The net premium ratio reflects cash flows from contract inception to contract termination (i.e., through the claim paying period) and cannot exceed 100%.

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

Total AUM increased $89.7$127.0 billion, or 8%,11%, to $1.3 trillion as of December 31, 2025 compared to $1.2 trillion as of December 31, 2024 compared to $1.1 trillion as of December 31, 2023 due to a $85.3$96.3 billion increase in Advice & Wealth Management AUM driven by market appreciation and wrap account net inflows and an $8.0$33.2 billion increase in Asset Management AUM primarily driven by market appreciation,appreciation and a favorable foreign exchange impact, partially offset by net outflows. Total Asset Under Administration increased $37.7$38.4 billion, or 13%,12%, to $317.2$355.6 billion as of December 31, 20242025 compared to the prior year primarily driven by equity market appreciation and ana continued increase in third-party money market funds. Total Assets Under Advisement increased $8.6$6.8 billion, or 34%,20%, to $34.0$40.8 billion as December 31, 20242025 due to market appreciation and net inflows. See our segment results of operations discussion for additional information on changes in our AUM.

Pretax income increased $1.0$237 billion,million, or 32%,6%, for 20242025 compared to the prior year. The following impacts were significant drivers of the year-over-year change in pretax income:

•A favorable impact from higher average equity markets compared to the prior year period.year. Our average WEI, which is a proxy for equity movements on AUM, increased 23%13% in 20242025 compared to the prior year.

•The marketfavorable impact on non-traditional long-duration products, net of hedgesunlocking was an expense of $153$22 million for 20242025 compared to an expenseunfavorable impact of $608$77 million for the prior year.

(1) Includes a $28 million net benefit for 2025 and a $17 million net benefit for 2024 primarily related to model changes associated with the market impact on IUL and SVA embedded derivatives for 2024,benefits, which isare excluded from adjusted operating earnings. Refer to Results of Operations by Segment for the impact to pretax adjusted operating earnings attributable to unlocking.

The primary driverdrivers of the unlocking impact wasfor lowered2025 included net unfavorable changes to variable annuity surrender assumptionsand onutilization variableassumptions, annuitiesnet withunfavorable living benefits resultingchanges in anLTC expensemorbidity inand 2024,mortality partiallyassumptions, offset by the updatedfavorable claims incidentincidence rates on disability insurance.insurance, and net favorable model changes primarily related to cost of reinsurance and index credits associated with non-traditional insurance products. In the prior year, the primary driver of the unlocking impact was lowered surrender assumptions on variable annuities with living benefits resulting in an expense.expense, partially offset by the updated claims incident rates on disability insurance.

Management and financial advice fees increased $1.2$966 billion,million, or 14%,10%, for 20242025 compared to the prior year primarily reflecting market appreciation and continued wrap account net inflows,inflows as well as higher performance fees, partially offset by the cumulative impact of Asset Management and variable annuity net outflows.

Distribution fees increased $129$57 million, or 7%,3%, for 20242025 compared to the prior year primarily due to market appreciation and higher transactional activity and market appreciation,activity, partially offset by $162$52 million of lower fees on off-balance sheet brokerage cash.

DistributionNet expensesinvestment increasedincome $946decreased $78 million, or 19%,2%, for 20242025 compared to the prior year primarily reflecting higher advisor compensation from higherlower average wrap accountinvested assets supporting certificates and increasedthe transactionalunfavorable activity,impact asof welldeclining asinvestment investmentsportfolio in recruiting experienced advisors,yields, partially offset by the cumulativefavorable impact of Assetgrowth Managementin netstructured outflows.variable annuities (“SVA”) products.

InterestBanking creditedand todeposit fixedinterest accountsexpense decreased $38$231 million, or 6%,35%, for 20242025 compared to the prior year primarily reflecting thelower followingcertificate items:balances and lower average crediting rates on both certificates and Ameriprise Bank, FSB (“Ameriprise Bank”) cash deposits.

ChangeInterest incredited fairto valuefixed of market risk benefitsaccounts decreased $170$141 million, or 21%,23%, for 20242025 compared to the prior year primarily reflecting the following items:

•A $227$335 million decreaseincrease in expense from market impacts on variable annuity guaranteed benefits, net of hedges. This decreaseincrease was the result of aan favorableunfavorable $538$1.1 millionbillion change in the market impact on variable annuity guaranteed benefits reserves and ana unfavorablefavorable $311$810 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes are summarized below:

•Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higherlower benefit for 20242025 compared to the prior year.

•Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in aan higher benefitexpense for 20242025 compared to a benefit in the prior year.

•Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higherlower expense for 20242025 compared to the prior year.

General and administrative expense increaseddecreased $32$28 million, or 1%, for 20242025 compared to the prior year primarily reflecting higher volume related expenses and investments for business growth, increased severance expense related to our expense management initiatives and higher performance fee related compensation, partially offset by ongoing benefits from our initiatives to enhance operational efficiency and effectiveness, as well as priorlower yearseverance expenses, partially offset by higher performance fee compensation, higher volume-related expenses includingand a $50 million accrualinvestments for abusiness regulatory matter relating to electronic communication recordkeeping requirements and $62 million of integration related expenses associated with the acquisition of the BMO Global Asset Management (EMEA) business.growth.

Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing 4%6% from the prior year to $22.3$23.7 billion as of December 31, 2024.2025. Ameriprise Certificate Company (“ACC”) client deposits decreased $2.3$3.0 billion from the prior year to $11.2$8.2 billion. After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during 2024.the past eight quarters. Third party cash products increased $6.8$4.3 billion to $43.8$48.1 billion driven by an increase of money market funds of $9.1$6.3 billion, partially offset by a decline in brokered CDs.

•In Ameriprise Bank, interest-bearing assets included $20.2$20.5 billion of Available-for-Sale securities, $2.5$2.9 billion of cash and cash equivalents, and $1.3$1.9 billion of other assets, primarily loans. The Ameriprise Bank investment portfolio securities are mostly rated AAAAA+ and primarily consist of structured assets, of which 17%9% were floating rate and sensitive to changes in short-term interest rates as of December 31, 2024.2025. We took action to reduce the floating rate allocation from 27%17% as of December 31, 2023.2024. The duration of Ameriprise Bank investments was 3.8 years as of December 31, 2025 compared to 3.6 years as of December 31, 2024 compared to 3.4 years as of December 31, 2023.2024. In 2024,2025, we purchased $5.3$6.8 billion of investments, which was primarily sourced from maturities and prepayments.

•In ACC, interest-bearing assets include $11.0$7.7 billion of Available-for-Sale securities, $0.8 billion of cash and cash equivalents, and $0.2$0.1 billion of loans and other assets. The ACC investment portfolio securities are mostly rated AAAAA+ and primarily consist of structured assets and government bonds, of which 39%40% were floating rate and approximately 23%19% were 6-month Treasury Bills or short-term Federal Home Loan Bank securities as of December 31, 2024.2025. The duration of ACC investments was 1.4 years as of December 31, 2025 compared to 1.1 years as of December 31, 2024 compared to 0.9 years as of December 31, 2023.2024.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $382$178 million, or 13%,6%, for 20242025 compared to the prior year. This growth reflected the benefit from market appreciation and increased advisor productivity through the cumulative impact of client net inflows and higher transactional revenue, as well as a $138 million increase in Net investment income, net of Banking and deposit interest expense.revenue. Pretax adjusted operating margin was 30.0%29.1% for 20242025 compared to 30.3%30.0% for the prior year. Adjusted operating net revenue per advisor increased to $1,037,000$1,122,000 for 2024,2025, up 13%,8%, from $916,000$1,037,000 for the prior year.

Management and financial advice fees increased $1.0$879 billion,million, or 18%,14%, for 20242025 compared to the prior year primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $90.5$77.9 billion, or 21%,15%, compared to the prior year reflecting net inflows and market appreciation.

Distribution fees increased $180$67 million, or 8%,3%, for 20242025 compared to the prior year asdue non-brokerageto casha revenue increased $342$119 million increase from strong transactional activity, including strong annuity salesactivity and retail trading, along with market appreciation, while brokerage cash revenue decreased $162$52 million due to lower off-balance sheet brokerage cash balances and a lower average fee yield.

BankingNet andinvestment depositincome interestdecreased expense increased $101$239 million, or 18%,11%, for 20242025 compared to the prior year primarily reflectingdue higherto lower average creditinginvested ratesassets and higherlower averageinvestment balancesyields on certificatesthe andinvestment bankportfolios supporting certificate products. Net investment income for Ameriprise Bank cash deposits.deposits was consistent with the prior year.

GeneralBanking and administrativedeposit interest expense increaseddecreased $34$231 million, or 2%,35%, for 20242025 compared to the prior year primarily reflecting higherlower volume related expensesbalances and investmentslower foraverage businesscrediting growth,rates partiallyon offsetcertificates byand alower $50average millioncrediting accrualrates foron aAmeriprise regulatoryBank mattercash relating to electronic communication recordkeeping requirements in the prior year.deposits.

(2) Columbia funds are available for purchase by U.S. customers. Out of 89 Columbia funds rated (based on primary share class), 5 received a 5-star Overall Rating and 3547 received a 4-star Overall Rating. Out of 137128 Threadneedle funds rated (based on highest-rated share class), 2012 received a 5-star Overall Rating and 4844 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.

(2) Global Institutional inflows and outflows include net flows from our SVAstructured variable annuity product and Ameriprise Bank.

Total segment AUM increased $8.0$33.2 billion, or 1%,5%, during 20242025 primarily driven by equity market appreciation,appreciation and a favorable foreign exchange impact, partially offset by net outflows. NetTotal AUM net outflows were $20.4$31.7 billion for 20242025 and included ana $8.0large institutional client repositioning into passive strategies and $3.9 billion assetof transferoutflows relatedfrom toour aU.S. legacyreal insuranceestate partner.products. Model delivery assets under advisement increased $9.4$7.3 billion, or 36%,21%, with net inflows of $2.8$3.2 billion for 20242025 compared to $0.7$2.8 billion for the prior year.

Ameriprise Financial is a diversified financial services company with a more than 130-year history of providing financial solutions. We are a long-standing leader in financial planning and advice with $1.7$1.8 trillion in assets under management, administration and advisement as of MarchJune 31,30, 2026. We offer a broad range of products and services designed to achieve individual and institutional clients’ financial objectives.

The following tabletables reconcilesreconcile our GAAP measures to adjusted operating measures:

Total AUM increased $130.4$176.0 billion, or 11%,14%, to $1.3$1.4 trillion as of MarchJune 31,30, 2026 compared to $1.1$1.2 trillion as of MarchJune 31,30, 2025 due to a $91.5$116.4 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $40.2$60.6 billion increase in Asset Management AUM primarily driven by equity market appreciation, partially offset by net outflows. Total Assets Under Administration increased $34.6$43.6 billion, or 11%,13%, to $348.7$374.6 billion as of MarchJune 31,30, 2026 compared to the prior year period primarily driven by equity market appreciation. Total Assets Under Advisement increased $8.5$8.2 billion, or 25%,24%, to $42.2$42.0 billion as of MarchJune 31,30, 2026 compared to the prior year period due to net inflows and market appreciation. See our segment results of operations discussion below for additional information on changes in our AUM.

Consolidated Results of Operations for the Three Months Ended MarchJune 31,30, 2026 and 2025

Pretax income increased $457$91 million, or 67%,7%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period. The following impacts were significant drivers of the period-over-period change in pretax income:

•A favorable impact from higher average equity markets compared to the prior year period. Our average WEI, which is a proxy for equity movements on AUM, increased 17%27% in the three months ended MarchJune 31,30, 2026 compared to the prior year period.

Management and financial advice fees increased $342$466 million, or 13%,18%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period reflecting market appreciation, continued wrap account net inflows and a higher average advisory fee rate, partially offset by the cumulative impact of Asset Management net outflows.

Distribution fees increased $41$71 million, or 8%,14%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily due to higher transactional activity and market appreciation.

Premiums, policy and contract charges decreased $19$20 million, or 5%,6%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily due to lower sales of life contingent payout annuities and lower contract charges from lower guaranteed living benefit volumes.

Banking and deposit interest expense decreased $53$42 million, or 42%,37%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily reflecting lower balances and lower average crediting rates on certificates and lower average crediting rates on Ameriprise Bank, FSB (“Ameriprise Bank”) cash deposits.

Distribution expenses increased $161$520 million, or 10%,33%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity.

Interest credited to fixed accounts increased $12$74 million, or 9%,78%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily reflecting the following items:

•A $22$66 million increase in expense from other market impacts on indexed universal life (“IUL”) benefits, net of hedges, which was an expense of $15$4 million for the three months ended MarchJune 31,30, 2026 compared to a benefit of $7$62 million for the prior year period. The increase in expense was primarily due to ana increasedecrease in the IUL embedded derivativederivatives in the currentprior period, which reflected highermore option costsdiscounting due to a higher newforward money rate.rates.

•A $9$6 million decreaseincrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The favorableunfavorable impact of the nonperformance credit spread was $13$16 million for the three months ended MarchJune 31,30, 2026 compared to aan favorableunfavorable impact of $4$10 million for the prior year period.

Benefits, claims, losses and settlement expenses decreasedincreased $64$37 million, or 17%,14%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily reflecting the following items:

•AAn $98$18 million decreaseincrease in expense from market impacts on structured variable annuities (“SVA”) embedded derivative,derivatives, net of hedging activity. This decreaseincrease was primarily the result of a favorable $140$898 million change in the market impact on derivatives hedging the SVA embedded derivativederivatives and an unfavorable $42$916 million change in the market impact on SVA embedded derivative.derivatives.

•Partially offset by theThe impact of increased volume in SVAs.

Change in fair value of market risk benefits decreased $119$219 million, or 24%,million for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily reflecting the following items:

•A $130$229 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges. This decrease was the result of a favorable $262$163 million change in the market impact on variable annuity guaranteed benefits reserves,reserves partiallyand offseta byfavorable an unfavorable $132$66 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes are summarized below:

•Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a larger expensebenefit for the three months ended MarchJune 31,30, 2026 compared to the prior year period.

•Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a lower benefit for the three months ended MarchJune 31,30, 2026 compared to an expense in the prior year period.

•Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a larger expensebenefit for the three months ended MarchJune 31,30, 2026 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, transaction costs and various behavioral items, were a lowerlarger net expense for the three months ended MarchJune 31,30, 2026 compared to the prior year period.

Our effective tax rate was 20.0%22.8% for the three months ended MarchJune 31,30, 2026 compared to 15.1%21.6% for the prior year period. The increase in the effective tax rate for the three months ended MarchJune 31,30, 2026 compared to the three months ended MarchJune 31,30, 2025 was primarily due to higheran pretaxincrease in state income intaxes, thenet currentof periodfederal compared to the prior year period and the related impact onincome tax preferred items and a decrease in the benefit for incentive compensation.effect. See Note 16 to our Consolidated Financial Statements for additional discussion on income taxes.

Results of Operations by Segment for the Three Months Ended MarchJune 31,30, 2026 and 2025

The following table presents Advice & Wealth Management total client assets as of MarchJune 3130:

The following table presents the changes in wrap account assets and average balances for the three months ended MarchJune 3130:

(2) Average advisory wrap account assets 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 MarchJune 31,30, 2026 and 2025, which is reflective of our billing cycle.

Ending wrap account assets decreasedincreased $6.2$67.3 billion to $664.2$731.5 billion during the three months ended MarchJune 31,30, 2026 due to market depreciationappreciation of $12.2$60.4 billion,billion partially offset byand net inflows of $6.0$6.9 billion. Average advisory wrap account assets increased $97.6$119.6 billion, or 17%,21%, compared to the prior year period primarily reflecting market appreciation and net inflows.

The following table presents client cash balances as of MarchJune 3130:

Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing 5%6% from the prior year to $23.8$23.9 billion as of MarchJune 31,30, 2026. Ameriprise Certificate Company (“ACC”) client deposits decreased $3.2$2.5 billion from the prior year to $7.5$7.4 billion. After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the past nineten quarters. Third partyThird-party cash products increaseddecreased $1.8$0.5 billion to $47.8$46.7 billion driven by an increase of money market funds of $3.3 billion, partially offset by a decline in brokered CDs.

The following table presents assets supporting Ameriprise Bank deposits and ACC certificates as of MarchJune 3130:

•In Ameriprise Bank, assets included $20.7$20.6 billion of Available-for-Sale securities, $2.7$2.5 billion of cash and cash equivalents, and $2.3$2.6 billion of other assets, primarily loans. The Ameriprise Bank investment portfolio securities are mostly rated AA+ and primarily consist of structured assets, of which 7%6% were floating rate and sensitive to changes in short-term interest rates as of MarchJune 31,30, 2026. We took action to reduce the floating rate allocation from 15%13% as of MarchJune 31,30, 2025. The duration of Ameriprise Bank investments was 4.04.2 years as of MarchJune 31,30, 2026 compared to 3.63.7 years as of MarchJune 31,30, 2025. In the three months ended MarchJune 31,30, 2026, we purchased $1.9$1.1 billion of investments, which was primarily funded from security maturities and prepayments.

•In ACC, assets include $7.4$7.1 billion of Available-for-Sale securities, $0.5$0.7 billion of cash and cash equivalents, and $0.1 billion of loans and other assets. The ACC investment portfolio securities are mostly rated AA+ and primarily consist of structured assets and government bonds, of which 40%38% were floating rate and approximately 21%25% were 6-month Treasury Bills or short-term Federal Home Loan Bank securities as of MarchJune 31,30, 2026. The duration of ACC investments was 1.4 years as of Marchboth 31,June 30, 2026 comparedand toJune 1.3 years as of March 31,30, 2025.

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $159$127 million, or 20%,16%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period. This reflected the benefit from market appreciation, increased advisor productivity through the cumulative impact of client net inflows and higher transactional revenue. Pretax adjusted operating margin was 30.0%28.9% for the three months ended MarchJune 31,30, 2026 compared to 28.5%28.9% for the prior year period.

Management and financial advice fees increased $292$353 million, or 17%,20%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily due to growth in average wrap account assets and a higher average advisory fee rate. Average advisory wrap account assets increased $97.6$119.6 billion, or 17%,21%, compared to the prior year period primarily reflecting net inflows and market appreciation.

Distribution fees increased $51$81 million, or 8%,13%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period from strong transactional activity and market appreciation, while brokerage cash revenue decreased $10$5 million due to a lower off-balance sheet brokerage cash balances and a lower average yield.

Net investment income, which excludes net realized investment gains or losses, decreased $45$41 million, or 9%,8%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily due to lower average invested assets and lower investment yields on the investment portfoliosportfolio supporting certificate products, partially offset by higher average invested assets supporting Ameriprise Bank cash deposits.

Banking and deposit interest expense decreased $53$42 million, or 42%,37%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily reflecting lower balances and lower average crediting rates on certificates and lower average crediting rates on Ameriprise Bank cash deposits.

•The average certificate reserve balance for ACC was $7.8$7.4 billion for the three months ended MarchJune 31,30, 2026 compared to $10.9$10.3 billion for the prior year period with the average crediting rate of 3.21%3.05% for the three months ended MarchJune 31,30, 2026 compared to 3.95%3.74% for the prior year period.

•The daily average interest-bearing deposit balance for the Ameriprise Bank increased to $23.4$23.6 billion for the three months ended MarchJune 31,30, 2026 compared to $22.2$22.4 billion for the prior year period with the average interest rate paid on deposits decreasing to 0.17%0.21% for the three months ended MarchJune 31,30, 2026 from 0.31%0.28% for the prior year period.

Distribution expenses increased $216$283 million, or 14%,18%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap account assets and increased transactional activity.

The following tables present the mutual fund performance of our retail Columbia Threadneedle Investments funds as of MarchJune 31,30, 2026:

(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 Institutional 3 share class), net of fees. Peer groupings of Threadneedle funds are defined by either IA or Morningstar index and are based on the Primary Share Class. ComparisonComparisons to the Index are measured gross of fees.

Total segment AUM decreasedincreased $16.5$53.2 billion, or 2%,8%, during the three months ended MarchJune 31,30, 2026 primarily due to market appreciation, partially offset by net outflows, market depreciation, and an unfavorable foreign exchange impact.outflows. Net outflows were $5.9$6.5 billion for the three months ended MarchJune 31,30, 2026.

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $32$52 million, or 13%,23%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily due to equity market appreciation,appreciation and the benefit of strong performance in our Seligman technology strategies, partially offset by the cumulative impact from net outflows.

Management and financial advice fees increased $50$109 million, or 7%,15%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily due to higher average equity markets and athe favorablegrowth foreignin exchangeAUM impact,in Seligman funds, partially offset by the cumulative impact from net outflows.

Distribution expensesfees increased $16$14 million, or 7%,15%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily due to equity market appreciation, partially offset by the cumulative impact of net outflows.

GeneralDistribution and administrative expenseexpenses increased $15$30 million, or 4%,13%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily reflectingdue higherto volume-relatedequity expensesmarket andappreciation, anpartially unfavorableoffset foreignby exchangethe impact.cumulative impact of net outflows.

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts decreased $25$12 million, or 12%,6%, for the three months ended MarchJune 31,30, 2026 compared to prior year period primarily reflecting the cumulative impact of variable annuity net outflows and higher sales volume.

Variable annuity account balances increased 6%7% to $88.1$94.4 billion as of MarchJune 31,30, 2026 compared to the prior year period primarily due to market appreciation, partially offset by net outflows of $4.7$5.2 billion. Variable annuity sales increased 10%21% compared to the prior year period primarily reflecting a strong level of sales of SVAs. Account values with living benefit riders declined to 45%44% as of MarchJune 31,30, 2026 compared to 49%48% a year ago reflecting our actions to optimize our business mix. This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.

Net investment income, which excludes net realized investment gains or losses, increased $40$38 million, or 14%,12%, for the three months ended MarchJune 31,30, 2026 compared to the prior year period primarily due to higher SVA balances.