Business Wire | Oct 28, 2020 04:08PM EDT

Ameriprise Financial Reports Third Quarter 2020 Results

Oct. 28, 2020

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 28, 2020--Ameriprise Financial, Inc. (NYSE: AMP):

Earnings Per Diluted Share Return on Equity, ex. AOCI ^(1)

Q3 2020 Q3 2020

GAAP ($ 1.14 ) GAAP 30.6 %

Adjusted Operating $ 1.47 Adjusted Operating 29.6 %

Adjusted Operating Ex. $ 4.27 Adjusted Operating Ex. 35.5 %Unlocking^ (2) Unlocking ^(2)

* Third quarter adjusted operating earnings per diluted share was $4.27 excluding a $2.80 per diluted share unlocking impact that was previously announced, down 1 percent (3) from last year as strong organic growth was offset by the impact of the precipitous drop in short term rates. Excluding the decline in short term interest rates, adjusted operating earnings per diluted share increased 18 percent.

* In 2020, GAAP net income was impacted by market volatility related to the company's credit spread, the valuation of derivatives and unlocking. In the quarter, the GAAP net income/(loss) per diluted share was ($1.14) and on a year-to-date basis was $10.73.

* Adjusted operating net revenue was $3.0 billion, a 1 percent decline (3) driven by lower interest rates. Excluding the decline in short-term interest rates, net revenue increased 3 percent.

* General and administrative expenses were well managed, down 5 percent, while still investing for business growth.

* Assets under management and administration reached a new high at nearly $1 trillion from strong organic growth and market appreciation.

* Wrap flows in the quarter reached $5.2 billion and recruiting of experienced advisors reached a three-year record with 99 advisors joining the company in the quarter.

* Global asset management retail net inflows, excluding former parent flows, continue to improve with $1.7 billion of inflows in the quarter from strong investment performance, distribution effectiveness and improved retail sentiment in EMEA.

* Excess capital was $1.7 billion and free cash flow generation was approximately 90 percent of adjusted operating earnings excluding unlocking this year, demonstrating the company's continued strong balance sheet fundamentals. The company returned $448 million to shareholders in the quarter, with 2.1 million shares repurchased, and announced a new share repurchase authorization of $2.5 billion through September 30, 2022.

(1) Return on equity excluding AOCI is calculated on a trailing 12-month basis.

(2) Unlocking impacts reflect the company's annual review of insurance and annuity valuation assumptions and model changes, and the Long Term Care (LTC) gross premium valuation.

(3) Excluding Auto & Home, which was sold in October 2019.

Perspective from Jim Cracchiolo, Chairman and Chief Executive Officer

"I am proud of how well Ameriprise and our team are executing in a challenging environment globally - the business is performing well.

"Ameriprise delivered good financial results, considering the impact of the low interest rate environment. We are generating strong client flows in both wealth management and asset management. Advisor productivity continues to increase nicely, reflecting our excellent advisor support, product solutions and client service.

"Our capital strength and free cash flow differentiate Ameriprise and provide important flexibility - today and looking forward. We're one of few financial services firms to increase our dividend and resume share repurchases this year while maintaining a strong balance sheet. Even in this uncertain environment, we're on track to return approximately 90 percent of our full year adjusted operating earnings to shareholders. Additionally, we recently announced a new $2.5 billon share repurchase authorization."

* Third quarter adjusted operating earnings per diluted share was $4.27 excluding a $2.80 per diluted share unlocking impact that was previously announced, down 1 percent ^(3) from last year as strong organic growth was offset by the impact of the precipitous drop in short term rates. Excluding the decline in short term interest rates, adjusted operating earnings per diluted share increased 18 percent.

* In 2020, GAAP net income was impacted by market volatility related to the company's credit spread, the valuation of derivatives and unlocking. In the quarter, the GAAP net income/ (loss) per diluted share was ($1.14) and on a year-to-date basis was $10.73.

* Adjusted operating net revenue Perspective from Jim Cracchiolo, was $3.0 billion, a 1 percent Chairman and Chief Executive Officer decline ^(3) driven by lower interest rates. Excluding the decline in short-term interest rates, net revenue increased 3 "I am proud of how well Ameriprise and percent. our team are executing in a challenging environment globally - the business is * General and administrative performing well. expenses were well managed, down 5 percent, while still investing for business growth. "Ameriprise delivered good financial * Assets under management and results, considering the impact of the administration reached a new high low interest rate environment. We are at nearly $1 trillion from strong generating strong client flows in both organic growth and market wealth management and asset management. appreciation. Advisor productivity continues to increase nicely, reflecting our * Wrap flows in the quarter reached excellent advisor support, product $5.2 billion and recruiting of solutions and client service. experienced advisors reached a three-year record with 99 advisors joining the company in the quarter. "Our capital strength and free cash flow differentiate Ameriprise and provide * Global asset management retail important flexibility - today and net inflows, excluding former looking forward. We're one of few parent flows, continue to improve financial services firms to increase our with $1.7 billion of inflows in dividend and resume share repurchases the quarter from strong this year while maintaining a strong investment performance, balance sheet. Even in this uncertain distribution effectiveness and environment, we're on track to return improved retail sentiment in approximately 90 percent of our full EMEA. year adjusted operating earnings to shareholders. Additionally, we recently * Excess capital was $1.7 billion announced a new $2.5 billon share and free cash flow generation was repurchase authorization." approximately 90 percent of adjusted operating earnings excluding unlocking this year, demonstrating the company's continued strong balance sheet fundamentals. The company returned $448 million to shareholders in the quarter, with 2.1 million shares repurchased, and announced a new share repurchase authorization of $2.5 billion through September 30, 2022.

^(1) Return on equity excluding AOCIis calculated on a trailing 12-monthbasis.

^(2) Unlocking impacts reflect thecompany's annual review of insuranceand annuity valuation assumptions andmodel changes, and the Long Term Care(LTC) gross premium valuation.

^(3) Excluding Auto & Home, which wassold in October 2019.

Ameriprise Financial, Inc.

Third Quarter Summary

Quarter Ended

September 30,

% Over/

Year-to-date September 30,

% Over/

(in millions, except per share amounts, unaudited)

2020

2019

(Under)

2020

2019

(Under)

GAAP net income

$

(140

)

$

543

NM

$

1,357

$

1,430

(5

%)

Adjusted operating earnings

$

184

$

554

(67

%)

$

1,211

$

1,639

(26

%)

Adjusted operating earnings excluding unlocking

(see reconciliation on p. 9 and p. 10)

$

533

$

570

(6

%)

$

1,560

$

1,655

(6

%)

GAAP net income per diluted share

$

(1.14

)

$

4.04

NM

$

10.73

$

10.40

3

%

Adjusted operating earnings per diluted share

$

1.47

$

4.12

(64

%)

$

9.57

$

11.92

(20

%)

Adjusted operating earnings per diluted share excluding unlocking

(see reconciliation on p. 9 and p. 10)

$

4.27

$

4.24

1

%

$

12.33

$

12.04

2%

GAAP Return on Equity, ex. AOCI

30.6

%

34.0

%

Adjusted Operating Return on Equity, ex. AOCI

29.6

%

37.7

%

Adjusted Operating Return on Equity, ex. AOCI and unlocking

35.5

%

38.0

%

Weighted average common shares outstanding:

Basic

123.0

132.7

Diluted

124.9

134.5

NM Not Meaningful - variance equal to or greater than 100%

The company believes the presentation of adjusted operating earnings excluding annual unlocking best represents the economics of the business. GAAP results were negatively impacted from substantial market volatility on variable annuity hedges and change in our credit spreads. In the table above, management provides both quarterly and year-to-date GAAP and adjusted operating results, excluding the non-cash impact of unlocking, to show the underlying performance of the business both in the quarter and for the year-to-date to facilitate a more meaningful trend analysis.

Ameriprise Financial, Inc.

Third Quarter Summary



Quarter Ended Year-to-date % Over/ September 30, % Over/ September 30,

(in millions, exceptper share amounts, 2020 2019 (Under) 2020 2019 (Under)unaudited)

GAAP net income $ (140 ) $ 543 NM $ 1,357 $ 1,430 (5 %)

Adjusted operating $ 184 $ 554 (67 %) $ 1,211 $ 1,639 (26 %)earnings

Adjusted operatingearnings excludingunlocking

(see reconciliation $ 533 $ 570 (6 %) $ 1,560 $ 1,655 (6 %)on p. 9 and p. 10)



GAAP net income per $ (1.14 ) $ 4.04 NM $ 10.73 $ 10.40 3 %diluted share

Adjusted operatingearnings per diluted $ 1.47 $ 4.12 (64 %) $ 9.57 $ 11.92 (20 %)share

Adjusted operatingearnings per dilutedshare excludingunlocking

(see reconciliation $ 4.27 $ 4.24 1 % $ 12.33 $ 12.04 2% on p. 9 and p. 10)



GAAP Return on 30.6 % 34.0 % Equity, ex. AOCI

Adjusted OperatingReturn on Equity, ex. 29.6 % 37.7 % AOCI

Adjusted OperatingReturn on Equity, ex. 35.5 % 38.0 % AOCI and unlocking

Weighted averagecommon shares outstanding:

Basic 123.0 132.7

Diluted 124.9 134.5



NM Not Meaningful - variance equal to or greater than 100%

The company believes the presentation of adjusted operating earnings excluding annual unlocking best represents the economics of the business. GAAP results were negatively impacted from substantial market volatility on variable annuity hedges and change in our credit spreads. In the table above, management provides both quarterly and year-to-date GAAP and adjusted operating results, excluding the non-cash impact of unlocking, to show the underlying performance of the business both in the quarter and for the year-to-date to facilitate a more meaningful trend analysis.

Ameriprise Financial, Inc.Advice & Wealth Management Segment Adjusted Operating Results



Quarter Ended Adjusted^(in millions, unaudited) September 30, % Over/ (1) (Under) % Over/ 2020 2019 (Under)

Net revenues $ 1,667 $ 1,682 (1 %) 6 %

Distribution expenses 998 948 (5 %) (5 %)

G&A / other expense 349 338 (3 %) (3 %)

Pretax adjusted operating earnings $ 320 $ 396 (19 %) 14 %



Pretax adjusted operating margin 19.2 % 23.5 %



(1) Adjusted for $116 million impact from interest rates. See reconciliation onpage 13.



Quarter Ended (in billions, unless otherwise September 30, % Over/noted) (Under) 2020 2019

Total client assets $ 667 $ 612 9 %

Wrap net flows $ 5.2 $ 4.1 26 %

AWM cash balance $ 39.4 $ 31.8 24 %

Average gross yield on cash balances (in bps) 71 204

Adjusted operating net revenue per advisor $ 668 $ 650 3 %(trailing 12 months - thousands)



Advice & Wealth Management pretax adjusted operating earnings were $320 million. The year-over-year decline was driven by $116 million of lower revenue from the reduction in interest rates, primarily the Federal Funds effective rate, partially offset by strong wrap net inflows and continued expense management. Excluding the decline in short-term interest rates, adjusted operating earnings increased 14 percent. Pretax adjusted operating margin was 19.2 percent, a 160-basis point sequential improvement.

Adjusted operating net revenues were $1.7 billion and included $116 million of lower revenue from the reduction in interest rates. Excluding the decline in short-term interest rates, revenues increased 6 percent reflecting strong wrap net inflows and market appreciation. On a sequential basis, revenues increased 8 percent.

Total expenses were $1.3 billion. General and administrative expense was well managed and increased 3 percent. Excluding the bank, general and administrative expenses increased 2 percent, which was in line with expectations as planned investments for future growth were offset by expense reengineering.

The company continues to meet client needs efficiently and effectively. Total client assets grew 9 percent to $667 billion. Organic growth remained very strong with wrap flows of $5.2 billion in the quarter. Cash balances remain elevated at $39.4 billion with a substantial opportunity for clients to put cash back to work in the future.

Adjusted operating net revenue per advisor on a trailing 12-month basis was impacted by low interest rates and increased 3 percent to $668,000. Excluding the decline in short-term interest rates, adjusted net revenue per advisor increased 8 percent. Total advisors were 9,905, with strong advisor retention and experienced advisor recruiting. Experienced advisor recruiting hit a three-year high with 99 productive advisors added in the quarter.

Ameriprise Financial, Inc.

Asset Management Segment Adjusted Operating Results



Quarter Ended (in millions, unaudited) September 30, % Over/ (Under) 2020 2019

Net revenues $ 739 $ 742 --

Distribution expenses 240 236 (2 %)

G&A / other expenses 301 333 10 %

Pretax adjusted operating earnings $ 198 $ 173 14 %



Net pretax adjusted operating margin ^(1) 43.9 % 38.3 %



Quarter Ended (in billions) September 30, % Over/ (Under) 2020 2019

Total segment AUM $ 498 $ 469 6 %

Net Flows

Global Retail net flows, ex. former parent flows $ 1.7 $ (1.3 ) NM

Global Institutional net flows, ex. former parent 1.7 1.3 31 %and low fee outflows

Subtotal 3.4 -- NM

Former parent company related net new flows (0.6 ) (1.3 ) 54 %

Institutional low fee outflows (4.4 ) -- NM

Total segment net flows $ (1.6 ) $ (1.3 ) (23 %)



Model delivery AUA Flows ^(2) 0.3 0.9 (66 %)

^(1) See reconciliation on page 14

^(2) Estimated based on the period to period change in assets less calculatedperformance based on strategy returns on a one-quarter lag.

NM Not Meaningful ?- variance equal to or greater than 100%



Asset Management pretax adjusted operating earnings were $198 million, up 14 percent, reflecting the cumulative impact of improved flows, well managed expenses and market appreciation, as well as $18 million of lower performance fees than the prior year period. The net pretax adjusted operating margin was 43.9 percent.

Adjusted operating revenues were unchanged year-over-year at $739 million as the benefit from the cumulative impact of improved flows and higher markets was offset by higher performance fees in the prior year period. Excluding performance fee revenue of $33 million in the year ago quarter, revenues increased 4 percent. The overall fee rate improved sequentially to over 52 basis points as higher-fee gross sales more than offset lower-fee redemptions.

Adjusted operating expenses declined 5 percent. General and administrative expenses remain well managed. Expenses in the prior year period included elevated performance fee compensation.

Flows in the quarter were strong, a continuation of the trends in the first half of 2020, with wins in higher-fee mandates. In the quarter, net outflows were $1.6 billion, which included $0.6 billion of former parent outflows and $4.4 billion of outflows related to two low-fee institutional redemptions. Excluding these items, net inflows were $3.4 billion, a $3.4 billion improvement year-over-year.

* Retail net inflows were $1.7 billion, with $1.5 billion of net inflows in the U.S. and $0.2 billion of net inflows in EMEA with strong performance, distribution effectiveness and improved retail sentiment in EMEA. * Global institutional net inflows were $1.7 billion, with strong gross sales across multiple regions and product offerings.

Ameriprise Financial, Inc.

Retirement & Protection Solutions Segment Adjusted Operating Results



Quarter Ended September 30, % Over/(in millions, unaudited) (Under) 2020 2019^ (1)

Net revenues $ 781 $ 788 (1 %)

Expenses 870 623 (40 %)

Pretax adjusted operating earnings $ (89 ) $ 165 NM

Unlocking (295 ) (16 ) NM

Pretax adjusted operating earnings excluding $ 206 $ 181 14 %unlocking



Retirement Solutions excluding unlocking $ 146 $ 111 32 %

Protection Solutions excluding unlocking 60 70 (14 %)

Pretax adjusted operating earnings excluding $ 206 $ 181 14 %unlocking





Retirement & Protection Solutionspretax adjusted operating earnings excluding unlocking increased $25 million to $206 million, from higher ending market levels, as well as lower surrenders and withdrawals that reduced the amortization of deferred acquisition costs. Protection claims remained within expected ranges. Unlocking was an unfavorable $295 million, substantially driven by changes in interest rate assumptions.

Sales of retirement products improved 2 percent year-over-year to $1.1 billion. Retirement sales without living benefit guarantees more than doubled to 56 percent of sales up from 25 percent a year ago, driven by our recently launched, lower-risk structured product in combination with our RAVA 5 product without living benefit guarantees. This sales trend is expected to continue over time and meaningfully shift the mix of the business to lower-risk products that do not have living benefit guarantees. Annuity net amount at risk as a percent of account values was 0.8 percent for living benefits and 0.2 percent for death benefits, which we believe is one of the lowest among major variable annuity writers, reflecting the high quality of the book.

Sales of protection products declined 30 percent from a year ago with an overall product mix shift that is consistent with our focused approach. Sales of higher-margin accumulation VUL products increased 58 percent and sales of indexed UL products declined 68 percent as expected given pricing changes made to reflect low interest rates.

Retirement & Protection Solutions segment includes Retirement Solutions^ (Variable Annuities and Payout Annuities) and Protection Solutions (Life(1) and Disability Insurance). Fixed Annuities has been moved to the Corporate & Other segment as a closed block. Prior periods have been restated.

Ameriprise Financial, Inc.

Corporate & Other Segment Adjusted Operating Results

(in millions, unaudited)

Quarter Ended September 30,

% Over/ (Under)

2020

2019 (1)

Corporate & Other

$

(58

)

$

(73

)

21

%

Closed Blocks (2)

(144

)

4

NM

Pretax adjusted operating earnings (3)

$

(202

)

$

(69

)

NM

Unlocking/loss recognition

(147

)

(4

)

NM

Pretax adjusted operating earnings excluding unlocking/loss recognition (3)

$

(55

)

$

(65

)

15

%

Long term care excluding unlocking/loss recognition

$

6

$

0

NM

Fixed Annuities excluding unlocking

(3

)

8

NM

Pretax adjusted operating earnings excluding unlocking

$

3

$

8

(63

%)

Ameriprise Financial, Inc.

Corporate & Other Segment Adjusted Operating Results



Quarter Ended September 30, % Over/(in millions, unaudited) (Under) 2020 2019 ^ (1)

Corporate & Other $ (58 ) $ (73 ) 21 %

Closed Blocks ^(2) (144 ) 4 NM

Pretax adjusted operating earnings ^(3) $ (202 ) $ (69 ) NM

Unlocking/loss recognition (147 ) (4 ) NM

Pretax adjusted operating earnings excluding $ (55 ) $ (65 ) 15 %unlocking/loss recognition ^(3)



Long term care excluding unlocking/loss recognition $ 6 $ 0 NM

Fixed Annuities excluding unlocking (3 ) 8 NM

Pretax adjusted operating earnings excluding $ 3 $ 8 (63 %)unlocking



(1)

Fixed annuities was moved into the Corporate & Other segment as a closed block. Prior periods have been restated.

(2)

Long Term Care and Fixed Annuities.

(3)

Excludes Auto & Home, which was sold in October 2019.

NM Not Meaningful - variance equal to or greater than 100%

Corporate & Other pretax adjusted operating loss was $58 million, a $15 million improvement from the prior year period from lower project expense.

Long term care pretax adjusted operating earnings excluding unlocking was $6 million. The unlocking was primarily interest rate related with limited changes to assumptions regarding morbidity, mortality and lapse, which was in line with management expectations.

Fixed annuities pretax adjusted operating loss excluding unlocking was $3 million. The company discontinued sales of fixed annuities and fixed indexed annuities in the second quarter of 2020 and the block was placed into run-off.

Taxes

The third quarter adjusted operating effective tax rate was 18.9 percent. On a year-to-date basis, the adjusted operating effective tax rate was 16.8 percent.

About Ameriprise Financial

At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 125 years. With extensive advisory, asset management and insurance capabilities and a nationwide network of approximately 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors' financial needs. For more information, or to find an Ameriprise financial advisor, visit ameriprise.com.

Ameriprise Financial Services, LLC offers financial planning services, investments, insurance and annuity products. Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA and managed by Columbia Management Investment Advisers, LLC. Threadneedle International Limited is an SEC- and FCA-registered investment adviser affiliate of Columbia Management Investment Advisers, LLC based in the U.K. RiverSource insurance and annuity products are issued by RiverSource Life Insurance Company, and in New York only by RiverSource Life Insurance Co. of New York, Albany, New York. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuity products in the state of New York. These companies are all part of Ameriprise Financial, Inc. CA License #0684538. RiverSource Distributors, Inc. (Distributor), Member FINRA.

Forward-Looking Statements

This news release 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, general and administrative costs, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities;

* statements about the expected trend in the shift of the retirement product sales business to lower risk products without living benefit guarantees over time;

* 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" 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.

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 cautions readers to carefully consider the risks described in the "Risk Factors" discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2019, Part 1, Item 1A of and elsewhere in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 and subsequent Quarterly Reports on Form 10-Q, available at ir.ameriprise.com. Management undertakes no obligation to update publicly or revise any forward-looking statements.

The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results. The financial results and values presented in this news release and the below-referenced Statistical Supplement are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company's Form 10-Q for the quarter ended September 30, 2020. For information about Ameriprise Financial entities, please refer to the Third Quarter 2020 Statistical Supplement available at ir.ameriprise.com and the tables that follow in this news release.

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 release or in any other report or document the company furnishes or files with the SEC.

^ Fixed annuities was moved into the Corporate & Other segment as a closed(1) block. Prior periods have been restated.

^ Long Term Care and Fixed Annuities.(2)

^ Excludes Auto & Home, which was sold in October 2019.(3)

NM Not Meaningful - variance equal to or greater than 100%

Corporate & Other pretax adjusted operating loss was $58 million, a $15 million improvement from the prior year period from lower project expense.

Long term care pretax adjusted operating earnings excluding unlocking was $6 million. The unlocking was primarily interest rate related with limited changes to assumptions regarding morbidity, mortality and lapse, which was in line with management expectations.

Fixed annuities pretax adjusted operating loss excluding unlocking was $3 million. The company discontinued sales of fixed annuities and fixed indexed annuities in the second quarter of 2020 and the block was placed into run-off.

Taxes

The third quarter adjusted operating effective tax rate was 18.9 percent. On a year-to-date basis, the adjusted operating effective tax rate was 16.8 percent.

About Ameriprise Financial

At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 125 years. With extensive advisory, asset management and insurance capabilities and a nationwide network of approximately 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors' financial needs. For more information, or to find an Ameriprise financial advisor, visit ameriprise.com.

Ameriprise Financial Services, LLC offers financial planning services, investments, insurance and annuity products. Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA and managed by Columbia Management Investment Advisers, LLC. Threadneedle International Limited is an SEC- and FCA-registered investment adviser affiliate of Columbia Management Investment Advisers, LLC based in the U.K. RiverSource insurance and annuity products are issued by RiverSource Life Insurance Company, and in New York only by RiverSource Life Insurance Co. of New York, Albany, New York. Only RiverSource Life Insurance Co. of New York is authorized to sell insurance and annuity products in the state of New York. These companies are all part of Ameriprise Financial, Inc. CA License #0684538. RiverSource Distributors, Inc. (Distributor), Member FINRA.

Forward-Looking Statements

This news release 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, general and administrative costs, consolidated tax rate, return of capital to shareholders, and excess capital position and financial flexibility to capture additional growth opportunities;

* statements about the expected trend in the shift of the retirement product sales business to lower risk products without living benefit guarantees over time;

* 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" 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.

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 cautions readers to carefully consider the risks described in the "Risk Factors" discussion under Part 1, Item 1A of and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2019, Part 1, Item 1A of and elsewhere in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 and subsequent Quarterly Reports on Form 10-Q, available at ir.ameriprise.com. Management undertakes no obligation to update publicly or revise any forward-looking statements.

The financial results discussed in this news release represent past performance only, which may not be used to predict or project future results. The financial results and values presented in this news release and the below-referenced Statistical Supplement are based upon asset valuations that represent estimates as of the date of this news release and may be revised in the company's Form 10-Q for the quarter ended September 30, 2020. For information about Ameriprise Financial entities, please refer to the Third Quarter 2020 Statistical Supplement available at ir.ameriprise.com and the tables that follow in this news release.

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 release or in any other report or document the company furnishes or files with the SEC.

Ameriprise Financial, Inc.

Reconciliation Table: Earnings



Quarter Ended Per Diluted Share September 30, Quarter Ended September 30,

(in millions, except per 2020 2019 2020 2019 % Over/share amounts, unaudited) (Under)

Net income $ (140 ) $ 543 $ (1.14 )^ $ 4.04 N M (3)

Add: Basic to diluted - - 0.02 ^ - share conversion (4)

Less: Net income (loss)attributable to - (1 ) - (0.01 ) consolidated investmententities

Add: Integration/restructuring charges ^ 1 2 0.01 0.01 (1)

Add: Market impact onvariable annuity 427 2 3.42 0.01 guaranteed benefits ^(1)

Add: Market impact onfixed index annuity - 1 - 0.01 benefits ^(1)

Add: Meanreversion-related impacts (17 ) 36 (0.14 ) 0.27 ^(1)

Add: Market impact onindexed universal life 4 (48 ) 0.03 (0.36 ) benefits ^(1)

Add: Market impact ofhedges on investments ^ - 9 - 0.07 (1)

Add: Net realizedinvestment (gains) losses (4 ) 11 (0.03 ) 0.08 ^(1)

Add: Tax effect of (87 ) (3 ) (0.70 ) (0.02 ) adjustments ^(2)

Adjusted operating $ 184 $ 554 $ 1.47 $ 4.12 (64 %)earnings

Less: Pretax impact ofannual unlocking/loss (442 ) (20 ) (3.54 ) (0.15 ) recognition

Less: Tax effect ofannual unlocking/loss 93 4 0.74 0.03 recognition

Adjusted operatingearnings excluding $ 533 $ 570 $ 4.27 $ 4.24 1 %Unlocking

Less: Pretax impact of - (10 ) - 0.07 Auto & Home core results

Less: Tax effect of Auto - 2 - (0.01 ) & Home core results

Adjusted operatingearnings excluding $ 533 $ 578 $ 4.27 $ 4.30 (1 %)Unlocking and Auto & Home

Less: Pretax impact of - 116 - 0.86 short term interest rates

Less: Tax effect of short - (24 ) - (0.18 ) term interest rates

Adjusted operatingearnings excludingInterest Rate Impact, $ 533 $ 486 $ 4.27 $ 3.62 18 %Unlocking, and Auto &Home

Weighted average common shares outstanding:

Basic 123.0 132.7

Diluted 124.9 134.5



^(1) Pretax adjusted operating adjustment.^(2) Calculated using the statutory tax rate of 21%.^(3) Diluted shares used in this calculation represent basic shares due to thenet loss. Using actual diluted shares would result in antidilution.^(4) Represents the difference of the per share amount for net loss using basicshares compared to the per share amount for net loss using diluted shares.

Ameriprise Financial, Inc.

Reconciliation Table: Earnings

Year-to-date September 30,

Per Diluted Share Year-to-date September 30,

(in millions, except per share amounts, unaudited)

2020

2019

2020

2019

% Over/ (Under)

Net income

$

1,357

$

1,430

$

10.73

$

10.40

3

%

Less: Net income (loss) attributable to consolidated investment entities

(2

)

-

(0.01

)

Add: Integration/restructuring charges (1)

4

11

0.03

0.08

Add: Market impact on variable annuity guaranteed benefits (1)

(274

)

204

(2.17

)

1.48

Add: Market impact on fixed index annuity benefits (1)

-

-

-

-

Add: Mean reversion-related impacts (1)

30

(18

)

0.24

(0.13

)

Add: Market impact on indexed universal life benefits (1)

35

29

0.28

0.21

Add: Market impact of hedges on investments (1)

-

37

-

0.27

Add: Net realized investment (gains) losses (1)

18

2

0.14

0.02

Add: Tax effect of adjustments (2)

39

(56

)

0.31

(0.41

)

Adjusted operating earnings

$

1,211

$

1,639

$

9.57

$

11.92

(20

%)

Less: Pretax impact of annual unlocking/loss recognition

(442

)

(20

)

(3.49

)

(0.15

)

Less: Tax effect of annual unlocking/loss recognition

93

4

0.73

0.03

Adjusted operating earnings excluding Unlocking

$

1,560

$

1,655

$

12.33

$

12.04

2

%

Less: Pretax impact of Auto & Home core results

-

13

-

0.09

Less: Tax effect of Auto & Home core results

-

(3

)

-

(0.02

)

Adjusted operating earnings excluding Unlocking and Auto & Home

$

1,560

$

1,645

$

12.33

$

11.97

3

%

Less: Pretax impact of short-term interest rates

66

358

0.52

2.60

Less: Tax effect of short-term interest rates

(14

)

(75

)

(0.11

)

(0.54

)

Adjusted operating earnings excluding Interest Rate Impact, Unlocking, and Auto & Home

$

1,508

$

1,362

$

11.92

$

9.91

20

%

Weighted average common shares outstanding:

Basic

124.8

135.8

Diluted

126.5

137.5

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

Ameriprise Financial, Inc.

Reconciliation Table: Earnings



Year-to-date Per Diluted Share September 30, Year-to-date September 30,

(in millions, except per 2020 2019 2020 2019 % Over/share amounts, unaudited) (Under)

Net income $ 1,357 $ 1,430 $ 10.73 $ 10.40 3 %

Less: Net income (loss)attributable to consolidated (2 ) - (0.01 ) investment entities

Add: Integration/ 4 11 0.03 0.08 restructuring charges ^(1)

Add: Market impact onvariable annuity guaranteed (274 ) 204 (2.17 ) 1.48 benefits ^(1)

Add: Market impact on fixed - - - - index annuity benefits ^(1)

Add: Mean reversion-related 30 (18 ) 0.24 (0.13 ) impacts ^(1)

Add: Market impact onindexed universal life 35 29 0.28 0.21 benefits ^(1)

Add: Market impact of hedges - 37 - 0.27 on investments ^(1)

Add: Net realized investment 18 2 0.14 0.02 (gains) losses ^(1)

Add: Tax effect of 39 (56 ) 0.31 (0.41 ) adjustments ^(2)

Adjusted operating earnings $ 1,211 $ 1,639 $ 9.57 $ 11.92 (20 %)

Less: Pretax impact ofannual unlocking/loss (442 ) (20 ) (3.49 ) (0.15 ) recognition

Less: Tax effect of annual 93 4 0.73 0.03 unlocking/loss recognition

Adjusted operating earnings $ 1,560 $ 1,655 $ 12.33 $ 12.04 2 %excluding Unlocking

Less: Pretax impact of Auto - 13 - 0.09 & Home core results

Less: Tax effect of Auto & - (3 ) - (0.02 ) Home core results

Adjusted operating earningsexcluding Unlocking and Auto $ 1,560 $ 1,645 $ 12.33 $ 11.97 3 %& Home

Less: Pretax impact of 66 358 0.52 2.60 short-term interest rates

Less: Tax effect of (14 ) (75 ) (0.11 ) (0.54 ) short-term interest rates

Adjusted operating earningsexcluding Interest Rate $ 1,508 $ 1,362 $ 11.92 $ 9.91 20 %Impact, Unlocking, and Auto& Home

Weighted average common shares outstanding:

Basic 124.8 135.8

Diluted 126.5 137.5



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



Ameriprise Financial, Inc.

Reconciliation Table: Pretax Adjusted Operating Earnings and Pretax Adjusted Operating Margin

Quarter Ended September 30,

(in millions, unaudited)

2020

2019

Total net revenues

$

3,003

$

3,317

Less: CIEs revenue

21

22

Less: Integration/restructuring charges

-

-

Less: Net realized investment gains (losses)

4

(13

)

Less: Market impact on indexed universal life benefits

1

17

Less: Mean Reversion related impacts

-

-

Less: Market impact of hedges on investments

-

(9

)

Adjusted operating total net revenues

$

2,977

$

3,300

Less: Annual unlocking/loss recognition

(1

)

5

Adjusted operating total net revenues excluding Annual unlocking/loss recognition

$

2,978

$

3,295

Less: Auto & Home revenue

-

298

Adjusted operating total net revenues excluding Unlocking and Auto & Home

$

2,978

$

2,997

Total expenses

$

3,187

$

2,676

Less: CIEs expenses

21

23

Less: Integration/restructuring charges

1

2

Less: Market impact on variable annuity guaranteed benefits

427

2

Less: Market impact on indexed universal life benefits

5

(31

)

Less: Market impact on fixed index annuity benefits

-

1

Less: Mean reversion-related impacts

(17

)

36

Less: DAC/DSIC offset to net realized investment gains (losses)

-

(2

)

Adjusted operating expenses

$

2,750

$

2,645

Less: Annual unlocking/loss recognition

441

25

Adjusted operating total net expenses excluding Unlocking

$

2,309

$

2,620

Less: Auto & Home expenses

-

308

Adjusted operating total net expenses excluding Unlocking and Auto & Home

$

2,309

$

2,312

Pretax income

$

(184

)

$

641

Pretax adjusted operating earnings

$

227

$

655

Pretax adjusted operating earnings excluding Unlocking

$

669

$

675

Pretax adjusted operating earnings excluding Unlocking and Auto & Home

$

669

$

685

Pretax income margin

(6.1

%)

19.3

%

Pretax adjusted operating margin

7.6

%

19.8

%

Pretax adjusted operating margin excluding Unlocking

22.5

%

20.5

%

Pretax adjusted operating margin excluding Unlocking and Auto & Home

22.5

%

22.9

%

Ameriprise Financial, Inc.

Reconciliation Table: Pretax Adjusted Operating Earnings and Pretax AdjustedOperating Margin



Quarter Ended September 30,

(in millions, unaudited) 2020 2019

Total net revenues $ 3,003 $ 3,317

Less: CIEs revenue 21 22

Less: Integration/restructuring charges - -

Less: Net realized investment gains (losses) 4 (13 )

Less: Market impact on indexed universal life benefits 1 17

Less: Mean Reversion related impacts - -

Less: Market impact of hedges on investments - (9 )

Adjusted operating total net revenues $ 2,977 $ 3,300

Less: Annual unlocking/loss recognition (1 ) 5

Adjusted operating total net revenues excluding Annual $ 2,978 $ 3,295 unlocking/loss recognition

Less: Auto & Home revenue - 298

Adjusted operating total net revenues excluding Unlocking $ 2,978 $ 2,997 and Auto & Home

$ 3,187 $ 2,676 Total expenses

Less: CIEs expenses 21 23

Less: Integration/restructuring charges 1 2

Less: Market impact on variable annuity guaranteed 427 2 benefits

Less: Market impact on indexed universal life benefits 5 (31 )

Less: Market impact on fixed index annuity benefits - 1

Less: Mean reversion-related impacts (17 ) 36

Less: DAC/DSIC offset to net realized investment gains - (2 )(losses)

Adjusted operating expenses $ 2,750 $ 2,645

Less: Annual unlocking/loss recognition 441 25

Adjusted operating total net expenses excluding Unlocking $ 2,309 $ 2,620

Less: Auto & Home expenses - 308

Adjusted operating total net expenses excluding Unlocking $ 2,309 $ 2,312 and Auto & Home

$ (184 ) $ 641 Pretax income

Pretax adjusted operating earnings $ 227 $ 655

Pretax adjusted operating earnings excluding Unlocking $ 669 $ 675

Pretax adjusted operating earnings excluding Unlocking and $ 669 $ 685 Auto & Home

(6.1 %) 19.3 %Pretax income margin

Pretax adjusted operating margin 7.6 % 19.8 %

Pretax adjusted operating margin excluding Unlocking 22.5 % 20.5 %

Pretax adjusted operating margin excluding Unlocking and 22.5 % 22.9 %Auto & Home





Ameriprise Financial, Inc.

Reconciliation Table: General and Administrative Expense

Quarter Ended

September 30,

% Over/ (Under)

(in millions, unaudited)

2020

2019

General and administrative expense

$

763

$

820

7

%

Less: CIEs expenses

10

1

Less: Integration/restructuring charges

1

2

Adjusted operating general and administrative expense

$

752

$

817

8

%

Less: Auto & Home

-

29

Adjusted operating general and administrative expense excluding Auto & Home

$

752

$

788

5

%

Ameriprise Financial, Inc.

Reconciliation Table: General and Administrative Expense



Quarter Ended % Over/ September 30, (Under)

(in millions, unaudited) 2020 2019

General and administrative expense $ 763 $ 820 7 %

Less: CIEs expenses 10 1

Less: Integration/restructuring charges 1 2

Adjusted operating general and administrative $ 752 $ 817 8 %expense

Less: Auto & Home - 29

Adjusted operating general and administrative $ 752 $ 788 5 %expense excluding Auto & Home



Ameriprise Financial, Inc. Reconciliation Table: Effective Tax Rate

Quarter Ended

September 30, 2019

(in millions, unaudited)

GAAP

Adjusted Operating

Pretax income

$

641

$

655

Income tax provision

$

98

$

101

Effective tax rate

15.4

%

15.4

%

Ameriprise Financial, Inc.Reconciliation Table: Effective Tax Rate



Quarter Ended September 30, 2019

(in millions, unaudited) GAAP Adjusted Operating

Pretax income $ 641 $ 655

Income tax provision $ 98 $ 101

Effective tax rate 15.4 % 15.4 %



Ameriprise Financial, Inc. Reconciliation Table: Effective Tax Rate

Quarter Ended September 30, 2020

(in millions, unaudited)

GAAP

Adjusted Operating

Pretax income

$

(184

)

$

227

Income tax provision

$

(44

)

$

43

Effective tax rate

23.5

%

18.9

%

Ameriprise Financial, Inc.Reconciliation Table: Effective Tax Rate



Quarter Ended September 30, 2020

(in millions, unaudited) GAAP Adjusted Operating

Pretax income $ (184 ) $ 227

Income tax provision $ (44 ) $ 43

Effective tax rate 23.5 % 18.9 %



Ameriprise Financial, Inc. Reconciliation Table: Advice & Wealth Management G&A Expenses

(in millions, unaudited)

Quarter Ended September 30,

% Over/ (Under)

2020

2019

AWM general and administrative expenses

$

346

$

336

(3

%)

Less: Bank general and administrative expenses

12

8

75

%

Adjusted AWM general and administrative expenses

$

334

$

328

(2

%)

Ameriprise Financial, Inc.Reconciliation Table: Advice & Wealth Management G&A Expenses



Quarter Ended (in millions, unaudited) September 30, % Over/ (Under) 2020 2019

AWM general and administrative expenses $ 346 $ 336 (3 %)

Less: Bank general and administrative expenses 12 8 75 %

Adjusted AWM general and administrative expenses $ 334 $ 328 (2 %)



Ameriprise Financial, Inc. Reconciliation Table: Operating Revenues and Earnings

(in millions, unaudited)

Quarter Ended

September 30,

% Over/ (Under)

2020

2019

Ameriprise Financial, Inc. Net revenues (1)

$

2,978

$

2,997

(1

%)

Less: Short-Term interest rate impact

-

116

Ameriprise Financial, Inc. Net revenues excluding Short-Term interest rate impact

$

2,978

$

2,881

3

%

Ameriprise Financial, Inc. Pretax operating earnings (1)

$

669

$

685

(2

%)

Less: Short-Term interest rate impact

-

(116

)

Ameriprise Financial, Inc. Pretax operating earnings excluding Short-Term interest rate impact

$

669

$

569

18

%

AWM Net revenues

$

1,667

$

1,682

(1

%)

Less: Short-Term interest rate impact

-

(116

)

AWM Net revenues excluding Short-Term interest rate impact

$

1,667

$

1,566

6

%

AWM Pretax operating earnings

$

320

$

396

(19

%)

Less: Short-Term interest rate impact

-

(116

)

AWM Pretax operating earnings excluding Short-Term interest rate impact

$

320

$

280

14

%

(1) Excludes Unlocking and Auto & Home

Ameriprise Financial, Inc.Reconciliation Table: Operating Revenues and Earnings



Quarter Ended % Over/(in millions, unaudited) September 30, (Under)

2020 2019



Ameriprise Financial, Inc. Net revenues ^ $ 2,978 $ 2,997 (1 %)(1)

Less: Short-Term interest rate impact - 116

Ameriprise Financial, Inc. Net revenues $ 2,978 $ 2,881 3 %excluding Short-Term interest rate impact



Ameriprise Financial, Inc. Pretax $ 669 $ 685 (2 %)operating earnings ^(1)

Less: Short-Term interest rate impact - (116 )

Ameriprise Financial, Inc. Pretaxoperating earnings excluding Short-Term $ 669 $ 569 18 %interest rate impact



AWM Net revenues $ 1,667 $ 1,682 (1 %)

Less: Short-Term interest rate impact - (116 )

AWM Net revenues excluding Short-Term $ 1,667 $ 1,566 6 %interest rate impact



AWM Pretax operating earnings $ 320 $ 396 (19 %)

Less: Short-Term interest rate impact - (116 )

AWM Pretax operating earnings excluding $ 320 $ 280 14 %Short-Term interest rate impact



^(1) Excludes Unlocking and Auto & Home

Ameriprise Financial, Inc. Reconciliation Table: Advice & Wealth Management Adjusted Revenue Per Advisor

(in millions, unaudited)

4Q 2018

1Q 2019

2Q 2019

3Q 2019

4Q 2019

1Q 2020

2Q 2020

3Q 2020

Total Net Revenue

$

1,581

$

1,554

$

1,653

$

1,682

$

1,710

$

1,695

$

1,537

$

1,667

Interest Revenue

$

(112

)

$

(120

)

$

(122

)

$

(116

)

$

(90

)

$

(66

)

$

-

$

-

Advisor Count

9,931

9,979

9,951

9,930

9,871

9,878

9,894

9,905

Revenue Per Advisor

$

159

$

156

$

166

$

169

$

173

$

172

$

155

$

168

Revenue Per Advisor excluding short-term interest rate impact

$

148

$

144

$

154

$

158

$

164

$

165

$

155

$

168

Revenue Per Advisor TTM

$

650

$

668

3

%

Revenue Per Advisor excluding short-term interest rate impact TTM

$

603

$

653

8

%

Ameriprise Financial, Inc. Reconciliation Table: Advice & Wealth Management Adjusted Revenue Per Advisor

(in 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Qmillions, 2018 2019 2019 2019 2019 2020 2020 2020 unaudited)



Total Net $ 1,581 $ 1,554 $ 1,653 $ 1,682 $ 1,710 $ 1,695 $ 1,537 $ 1,667 Revenue

Interest $ (112 ) $ (120 ) $ (122 ) $ (116 ) $ (90 ) $ (66 ) $ - $ - Revenue



Advisor 9,931 9,979 9,951 9,930 9,871 9,878 9,894 9,905 Count



RevenuePer $ 159 $ 156 $ 166 $ 169 $ 173 $ 172 $ 155 $ 168 Advisor

RevenuePerAdvisorexcluding $ 148 $ 144 $ 154 $ 158 $ 164 $ 165 $ 155 $ 168 short-terminterestrateimpact



RevenuePer $ 650 $ 668 3 %AdvisorTTM

RevenuePerAdvisorexcluding $ 603 $ 653 8 %short-terminterestrateimpact TTM



Ameriprise Financial, Inc.

Reconciliation Table: Asset Management Net Pretax Adjusted Operating Margin

Quarter Ended

September 30,

(in millions, unaudited)

2020

2019

Adjusted operating total net revenues

$

739

$

742

Less: Distribution pass through revenues

193

189

Less: Subadvisory and other pass through revenues

74

83

Net adjusted operating revenues

$

472

$

470

Pretax adjusted operating earnings

$

198

$

173

Less: Adjusted operating net investment income

(6

)

2

Add: Amortization of intangibles

3

9

Net adjusted operating earnings

$

207

$

180

Pretax adjusted operating margin

26.8

%

23.3

%

Net pretax adjusted operating margin

43.9

%

38.3

%

Ameriprise Financial, Inc.

Reconciliation Table: Asset Management Net Pretax Adjusted Operating Margin



Quarter Ended September 30,

(in millions, unaudited) 2020 2019

Adjusted operating total net revenues $ 739 $ 742

Less: Distribution pass through revenues 193 189

Less: Subadvisory and other pass through revenues 74 83

Net adjusted operating revenues $ 472 $ 470



Pretax adjusted operating earnings $ 198 $ 173

Less: Adjusted operating net investment income (6 ) 2

Add: Amortization of intangibles 3 9

Net adjusted operating earnings $ 207 $ 180



Pretax adjusted operating margin 26.8 % 23.3 %

Net pretax adjusted operating margin 43.9 % 38.3 %



Ameriprise Financial, Inc.

Reconciliation Table: Asset Management Net Adjusted Operating Revenues

(in millions, unaudited)

Quarter Ended September 30,

% Over/ (Under)

2020

2019

Net revenues

$

739

$

742

--

Less: Performance Fees

-

33

NM

Net adjusted operating revenues

$

739

$

709

4

%

Ameriprise Financial, Inc.

Reconciliation Table: Asset Management Net Adjusted Operating Revenues



Quarter Ended (in millions, unaudited) September 30, % Over/ (Under) 2020 2019

Net revenues $ 739 $ 742 --

Less: Performance Fees - 33 NM

Net adjusted operating revenues $ 739 $ 709 4 %



Ameriprise Financial, Inc.

Reconciliation Table: Return on Equity (ROE) Excluding Accumulated Other Comprehensive Income "AOCI"

Twelve Months Ended September 30,

(in millions, unaudited)

2020

2019

Net income

$

1,820

$

1,969

Less: Adjustments (1)

58

(214

)

Adjusted operating earnings

1,762

2,183

Less: Annual unlocking/loss recognition, net of tax (2)

(349

)

(16

)

Adjusted operating earnings excluding Unlocking

$

2,111

$

2,199

Less: Auto & Home, net of tax(2)

-

12

Adjusted operating earnings excluding Unlocking and Auto & Home

$

2,111

$

2,187

Total Ameriprise Financial, Inc. shareholders' equity

$

6,197

$

5,815

Less: Accumulated other comprehensive income, net of tax

243

21

Total Ameriprise Financial, Inc. shareholders' equity excluding AOCI

5,954

5,794

Less: Equity impacts attributable to the consolidated investment entities

-

1

Adjusted operating equity

$

5,954

$

5,793

Return on equity excluding AOCI

30.6

%

34.0

%

Adjusted operating return on equity excluding AOCI (3)

29.6

%

37.7

%

Adjusted operating return on equity excluding AOCI and Unlocking

35.5

%

38.0

%

Adjusted operating return on equity excluding AOCI, Unlocking and Auto & Home

35.5

%

37.8

%

Ameriprise Financial, Inc.

Reconciliation Table: Return on Equity (ROE) Excluding AccumulatedOther Comprehensive Income "AOCI"



Twelve Months Ended September 30,

(in millions, unaudited) 2020 2019

Net income $ 1,820 $ 1,969

Less: Adjustments^ (1) 58 (214 )

Adjusted operating earnings 1,762 2,183

Less: Annual unlocking/loss recognition, net of tax ^(2) (349 ) (16 )

Adjusted operating earnings excluding Unlocking $ 2,111 $ 2,199

Less: Auto & Home, net of tax^(2) - 12

Adjusted operating earnings excluding Unlocking and Auto & $ 2,111 $ 2,187 Home



Total Ameriprise Financial, Inc. shareholders' equity $ 6,197 $ 5,815

Less: Accumulated other comprehensive income, net of tax 243 21

Total Ameriprise Financial, Inc. shareholders' equity 5,954 5,794 excluding AOCI

Less: Equity impacts attributable to the consolidated - 1 investment entities

Adjusted operating equity $ 5,954 $ 5,793



Return on equity excluding AOCI 30.6 % 34.0 %

Adjusted operating return on equity excluding AOCI^ (3) 29.6 % 37.7 %

Adjusted operating return on equity excluding AOCI and 35.5 % 38.0 %Unlocking

Adjusted operating return on equity excluding AOCI, 35.5 % 37.8 %Unlocking and Auto & Home



(1)

Adjustments reflect the trailing twelve months' sum of after-tax net realized investment gains/losses, net of deferred sales inducement costs ("DSIC") and deferred acquisition costs ("DAC") amortization, unearned revenue amortization and the reinsurance accrual; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; 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 changes on unrealized gains or losses for certain investments; mean reversion related impacts; gain or loss on disposal of business that is not considered discontinued operations; integration/restructuring charges; and the impact of consolidating certain investment entities. After-tax is calculated using the statutory tax rate of 21%.

(2)After-tax is calculated using the statutory tax rate of 21%.

(3)Adjusted operating return on equity excluding accumulated other comprehensive income (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized investment gains/losses, net of deferred sales inducement costs ("DSIC") and deferred acquisition costs ("DAC") amortization, unearned revenue amortization and the reinsurance accrual; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual; 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 changes on unrealized gains or losses for certain investments; mean reversion related impacts; gain or loss on disposal of business that is not considered discontinued operations; integration/restructuring charges; the impact of consolidating certain investment entities; and discontinued operations 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%.

Adjustments reflect the trailing twelve months' sum of after-tax net realized investment gains/losses, net of deferred sales inducement costs ("DSIC") and deferred acquisition costs ("DAC") amortization, unearned revenue amortization and the reinsurance accrual; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits,^ net of hedges and related DAC amortization, unearned revenue amortization,(1) and the reinsurance accrual; 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 changes on unrealized gains or losses for certain investments; mean reversion related impacts; gain or loss on disposal of business that is not considered discontinued operations; integration/restructuring charges; and the impact of consolidating certain investment entities. After-tax is calculated using the statutory tax rate of 21%.

^ After-tax is calculated using the statutory tax rate of 21%.(2) Adjusted operating return on equity excluding accumulated other comprehensive income (AOCI) is calculated using the trailing twelve months of earnings excluding the after-tax net realized investment gains/losses, net of deferred sales inducement costs ("DSIC") and deferred acquisition costs ("DAC") amortization, unearned revenue amortization and the reinsurance accrual; market impact on variable annuity guaranteed benefits, net of hedges and related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and related DAC amortization, unearned revenue amortization, and the reinsurance accrual;^ the market impact on fixed index annuity benefits, net of hedges and the(3) related DAC amortization; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; mean reversion related impacts; gain or loss on disposal of business that is not considered discontinued operations; integration/restructuring charges; the impact of consolidating certain investment entities; and discontinued operations 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%.

Ameriprise Financial, Inc. Consolidated GAAP Results

(in millions, unaudited)

Quarter Ended

September 30,

% Over/ (Under)

2020

2019

Revenues

Management and financial advice fees

$

1,893

$

1,794

6

%

Distribution fees

400

480

(17

%)

Net investment income

300

356

(16

%)

Premiums

80

374

(79

%)

Other revenues

340

347

(2

%)

Total revenues

3,013

3,351

(10

%)

Banking and deposit interest expense

10

34

(71

%)

Total net revenues

3,003

3,317

(9

%)

Expenses

Distribution expenses

1,028

971

6

%

Interest credited to fixed accounts

170

127

34

%

Benefits, claims, losses and settlement expenses

1,104

594

86

%

Amortization of deferred acquisition costs

85

112

(24

%)

Interest and debt expense

37

52

(29

%)

General and administrative expense

763

820

(7

%)

Total expenses

3,187

2,676

19

%

Pretax income

(184

)

641

NM

Income tax provision

(44

)

98

NM

Net income

$

(140

)

$

543

NM

NM Not Meaningful - variance equal to or greater than 100%

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CONTACT: Investor Relations:

CONTACT: Alicia A. Charity Ameriprise Financial (612) 671-2080 alicia.a.charity@ampf.com

CONTACT: Stephanie M. Rabe Ameriprise Financial (612) 671-4085 stephanie.m.rabe@ampf.com

CONTACT: Media Relations:

CONTACT: Paul W. Johnson Ameriprise Financial (612) 671-0625 paul.w.johnson@ampf.com