Form 485BPOS RIVERSOURCE LIFE INSURAN
Tweet
Share
E-mailTable of Contents
THE SECURITIES ACT OF 1933
| |
Pre-Effective Amendment No. |
[] |
| |
Post-Effective Amendment No. 39 (File No.
333-47302) |
[X] |
| |
Post-Effective Amendment No. 1 (File
No. 333-286519) |
[X] |
THE INVESTMENT COMPANY ACT OF 1940
| |
Amendment No. 75 (File No. 811-3217) |
[X] |
| [] |
immediately upon filing pursuant to paragraph (b) of Rule 485 |
| [X] |
on September 22, 2025 pursuant to paragraph (b) of Rule 485 |
| [] |
60 days after filing pursuant to paragraph (a)(1) of Rule 485 |
| [] |
on [date] pursuant to paragraph (a)(1) of Rule 485 |
| [] |
This post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
| [] |
New Registrant (as applicable, a Registered Separate Account or Insurance Company that has not filed a Securities Act registration
statement or amendment thereto within 3 years preceding this filing)
|
| [] |
Emerging Growth Company (as defined by Rule 12b-2 under the Securities Exchange Act of 1934 (“Exchange Act”)) |
| [] |
If an Emerging Growth Company, indicate by check mark if the Registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to
Section 7(a)(2)(B) of Securities Act |
| [X] |
Insurance Company relying on Rule 12h-7 under the Exchange Act |
| [] |
Smaller reporting company (as defined by Rule 12b-2 under the Exchange Act) |
Table of Contents
| Issued by: |
RiverSource Life Insurance Company (RiverSource Life) |
| |
70100 Ameriprise Financial Center
Minneapolis, MN 55474 Telephone: 1-800-862-7919
(Service
Center)
ameriprise.com/variableannuities |
| 3 | |
| 4 | |
| 5 | |
| 10 |
| |
FEES, EXPENSES, AND
ADJUSTMENTS |
Location in
Statutory
Prospectus | ||
| Are There Charges
or Adjustments for
Early
Withdrawals? |
Yes. Each Contract provides for different surrender charge periods and percentages.
RAVA 5 Advantage: You may select either a seven-year or ten-year surrender charge schedule at the time of application. If you select a seven-year surrender charge schedule and you withdraw money during the first 7 years from date of each purchase payment, you may be assessed a
surrender charge of up to 7% of the purchase payment withdrawn. If you
elect a ten-year surrender charge schedule and you withdraw money
during the first 10 years from date of each purchase payment, you
may be assessed a surrender charge of up to 8% of the purchase
payment withdrawn. For example, if you select a seven-year
surrender charge schedule and make an early withdrawal, you could
pay a surrender charge of up to $7,000 on a $100,000 investment.
If you select a ten-year surrender charge schedule and make an
early withdrawal, you could pay a surrender charge of up to
$8,000 on a $100,000 investment. This loss will be greater if
there is a negative MVA, taxes, or tax penalties.
RAVA 5 Select: If you withdraw money during the first 4 years from the contract date, you may be assessed a surrender charge of up to 7% of the
purchase payment withdrawn. For example, if you make a withdrawal
in the first year, you could pay a withdrawal charge of up to
$7,000 on a $100,000 investment. This loss will be greater if
there is a negative MVA,
taxes, or tax penalties.
RAVA 5 Access: No surrender charge is assessed. For the above contracts: A positive or negative MVA is assessed if any
portion of a GPA is surrendered or transferred more than thirty days before
the end of its guarantee period. You could lose up to 100% of the amount
withdrawn from a GPA as a result of a negative MVA. For example, if you allocate $100,000 to a GPA with a 3-year guarantee period and later withdraw the entire amount before the 3 years have ended, you could lose up to $100,000 of your investment. This loss will be
greater if you also have to pay a surrender charge, taxes, and tax
penalties.
The following transactions when applied to a GPA, which we refer to
as “early surrenders,” are subject to an MVA when they occur more than
30 days prior to the end of the guarantee period, unless an exception
applies: (i) surrenders (including full and partial surrenders,
systematic withdrawals, and required minimum distributions), (ii)
transfers, and (iii) annuitization. We will not apply a
negative MVA to the payment of the
death benefit. An MVA may increase the death benefit but will not decrease
it. |
Fee Table and
Examples
Charges and
Adjustments –
Transaction
Expenses –
Surrender Charge
Charges and
Adjustments –
Adjustments –
Market Value
Adjustments | ||
| Are There
Transaction
Charges? |
No. Other than surrender charges and negative MVAs, we do not assess any transaction charges. |
| ||
| |
FEES, EXPENSES, AND
ADJUSTMENTS |
Location in
Statutory
Prospectus | ||
| Are There Ongoing
Fees and
Expenses? |
Yes. The table below describes the current fees and expenses that you may pay each year, depending on the investment options and optional benefits you choose. Please refer to your Contract Data page for information about the specific fees you will pay each year based on the
options you have elected. |
Fee Table and
Examples
Charges and
Adjustments –
Annual Contract
Expenses
Appendix A:
Investment
Options Available
Under the
Contract | ||
| Annual Fee |
Minimum |
Maximum | ||
| Base Contract(1) (varies by Contract, surrender
charge schedule, and size of
Contract Value) |
0.96% |
1.46% | ||
| Fund options (Funds fees and expenses)(2)
|
0.38%
|
2.44%
| ||
| Optional benefits available for an
additional charge
(for a single optional benefit, if
elected)(3) |
0.10%
|
2.00%
| ||
| (1) As a percentage of average daily contract value in the variable account. Includes the
Mortality and Expense Fee and contract administrative charge. (2) As a percentage of Fund net assets. (3) As a percentage of Contract Value or the greater of Contract Value or applicable guaranteed benefit amount (varies by optional benefit). The Minimum is a percentage of
average daily contract value in the Variable Account. The Maximum is a percentage of the
greater of Contract Value or Minimum Contract Accumulation Value.
Because your Contract is customizable, the choices you make affect how
much you will pay. To help you understand the cost of owning your Contract,
the following table shows the lowest and highest cost you could pay each
year, based on current charges. This estimate assumes that you do
not take withdrawals from the Contract, which could add surrender charges and negative MVAs that substantially increase costs. |
||||
| Lowest Annual Cost:
$1,649
|
Highest Annual Cost:
$4,020
| |||
| Assumes:
•Investment of $100,000 •5% annual appreciation
•Least expensive combination of Contract features and Fund fees
and expenses
•No optional benefits •No sales charge
•No additional purchase payments, transfers or withdrawals |
Assumes:
•Investment of $100,000 •5% annual appreciation
•Most expensive combination of Contract features, optional
benefits and Fund fees and
expenses
•No sales charge •No additional purchase payments,
transfers or withdrawals | |||
| |
RISKS |
| ||
| Is There a Risk of
Loss from Poor
Performance? |
Yes. You can lose money by investing in this Contract including loss of principal. |
Principal Risks of
Investing in the
Contract | ||
| |
RISKS |
Location in
Statutory
Prospectus | ||
| Is this a
Short-Term
Investment? |
No.
•The Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. •The RAVA 5 Advantage and RAVA 5 Select contracts have surrender
charges which may reduce the value of your Contract if you withdraw
money during the surrender charge period. Surrenders may also reduce
or terminate contract guarantees.
•Surrenders may also be subject to taxes and tax penalties. •Surrenders from a GPA prior to 30 days before the end of the guarantee
period may also result in a negative MVA. During the 30-day period
ending on the last day of the guarantee period, you may choose to start
a new guarantee period of the same length, transfer the contract value
from the current GPA to any of the investment options available under
the Contract, apply the contract value to an annuity payout plan, or
surrender the value from the current GPA (all subject to applicable
surrender, transfer, and annuitization provisions). If we do not receive
any instructions by the end of the guarantee period, we will
automatically transfer the contract value from the current GPA into the shortest GPA
term available.
•The benefits of tax deferral, long-term income, and optional living benefit
guarantees mean the contract is generally more beneficial to investors
with a long term investment horizon. |
Principal Risks of
Investing in the
Contract
Charges and
Adjustments –
Transaction
Expenses –
Surrender Charge
Charges and
Adjustments –
Adjustments –
Market Value
Adjustments | ||
| |
RISKS |
Location in
Statutory
Prospectus | ||
| What Are the
Risks Associated
with the
Investment
Options? |
•An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the investment options available under the Contract. •Each investment option (including under the GPAs and any Fixed Account
investment options) has its own unique risks.
•You should review the investment options before making any investment decisions. |
Principal Risks of
Investing in the
Contract
The Variable Account and the
Funds The “Nonunitized” Separate Account and Guarantee Period Accounts (GPAs) The Fixed Account | ||
| What Are the
Risks Related to
the Insurance
Company? |
An investment in the Contract is subject to the risks related to us. Any
obligations (including under the Fixed Account) or guarantees and benefits
of the Contract that exceed the assets of the Variable Account are subject
to our claims-paying ability. If we experience financial distress, we may not
be able to meet our obligations to you. More information about
RiverSource Life, including our financial strength ratings, is available by contacting us at
1-800-862-7919. |
Principal Risks of
Investing in the
Contract
The General
Account | ||
| |
RESTRICTIONS |
| ||
| Are There
Restrictions on
the Investment
Options? |
Yes.
•Subject to certain restrictions, you may transfer your Contract value among the subaccounts without charge at any time before the annuitization start date, and once per contract year after the
annuitization start date. •Certain transfers out of the GPAs will be subject to an MVA. •GPAs and the regular Fixed Account are subject to certain restrictions. •We reserve the right to modify, restrict or suspend your transfer
privileges if we determine that your transfer activity
constitutes market timing.
•We reserve the right to add, remove or substitute Funds as investment options. We also reserve the right, upon notification to you, to close or
restrict any Funds. |
Making the Most
of Your Contract –
Transferring
Among Accounts
Substitution of
Investments | ||
| Are There any
Restrictions on
Contract Benefits? |
Yes.
•Certain optional benefits limit or restrict the investment options you may
select under the Contract. If you later decide you do not want to invest in
those approved investment options, you must request a full
surrender. •Certain optional benefits may limit subsequent purchase payments. •Withdrawals in excess of the amount allowed under certain optional
benefits may substantially reduce the benefit or even terminate
the benefit. |
Buying Your
Contract – Purchase Payments Optional Benefits – Important SecureSource 3 Rider
Considerations
Appendix A:
Investment
Options Available
Under the
Contract | ||
| |
TAXES |
Location in
Statutory
Prospectus | ||
| What Are the
Contract’s Tax Implications? |
•Consult with a tax advisor to determine the tax implications of an investment in and payments and withdrawals received under this Contract.
•If you purchase the Contract through a tax-qualified plan or individual retirement account, you do not get any additional tax benefit. •Earnings under your contract are taxed at ordinary income tax rates
generally when withdrawn. You may have to pay a tax penalty if you take
a withdrawal before age 59½. |
Taxes | ||
| |
CONFLICTS OF INTEREST
|
| ||
| How Are
Investment
Professionals
Compensated? |
Your investment professional may receive compensation for selling this
Contract to you, in the form of commissions, additional cash benefits (e.g., bonuses), and non-cash compensation. This financial incentive may influence your investment professional to recommend this Contract over another investment for which the investment professional is not compensated or compensated less. |
About the Service
Providers | ||
| Should I Exchange
My Contract? |
If you already own an annuity or insurance Contract, some investment
professionals may have a financial incentive to offer you a new Contract in
place of the one you own. You should only exchange a Contract you already
own if you determine, after comparing the features, fees, and risks of both
Contracts, that it is better for you to purchase the new Contract rather than continue to own your existing Contract. |
Buying Your
Contract – Contract
Exchanges | ||
| Investment Objective |
Fund and Adviser/Sub-Adviser |
Current Expenses
Ratio [NET] |
Average Annual Total Returns (as
of 12/31/2024) | ||
| 1 Year |
5 Year |
10 Year | |||
| Seeks to maximize total
return consistent with
AllianceBernstein's
determination of
reasonable risk. |
AB VPS Dynamic Asset Allocation Portfolio
(Class B)1 AllianceBernstein L.P. |
1.10%2 |
10.43% |
3.15% |
3.82% |
| Seeks long-term growth
of capital. |
AB VPS Large Cap Growth Portfolio (Class B)
AllianceBernstein L.P. |
0.90% |
24.95% |
15.87% |
15.67% |
| Seeks long-term capital
appreciation. |
Allspring VT Opportunity Fund - Class 2
Allspring Funds Management, LLC, adviser;
Allspring Global Investments, LLC,
sub-adviser. |
1.00%2 |
15.05% |
11.72% |
10.78% |
| Seeks long-term capital
appreciation. |
Allspring VT Small Cap Growth Fund -
Class 2
Allspring Funds Management, LLC, adviser;
Allspring Global Investments, LLC,
sub-adviser. |
1.17% |
18.70% |
6.60% |
8.65% |
| The Portfolio seeks
investment results that
correspond (before fees
and expenses) generally
to the price and yield
performance of its
underlying index, the
Alerian Midstream
Energy Select Index (the
"Index"). |
ALPS | Alerian Energy Infrastructure
Portfolio: Class III
ALPS Advisors, Inc. |
1.30%2 |
40.60% |
14.15% |
5.07% |
| Seeks high total
investment return. |
BlackRock Global Allocation V.I. Fund
(Class III)
BlackRock Advisors, LLC, adviser; BlackRock
(Singapore) Limited, sub-adviser. |
1.02%2 |
9.01% |
5.74% |
5.33% |
| Seeks maximum total
investment return
through a combination
of capital growth and
current income. |
Columbia Variable Portfolio - Balanced Fund
(Class 3)
Columbia Management Investment Advisers,
LLC |
0.88% |
14.43% |
4.92% |
9.28% |
| Seeks to provide
shareholders with total
return. |
Columbia Variable Portfolio - Commodity
Strategy Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
1.00%2 |
7.09% |
5.69% |
8.94% |
| Investment Objective |
Fund and Adviser/Sub-Adviser |
Current
Expenses
Ratio
[NET] |
Average Annual Total Returns (as
of 12/31/2024) | ||
| 1 Year |
5 Year |
10 Year | |||
| Seeks total return,
consisting of long-term
capital appreciation and
current income. |
Columbia Variable Portfolio - Contrarian Core
Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.95%2 |
23.09% |
9.62% |
14.78% |
| Seeks to provide
shareholders with high
total return through
income and growth of
capital. |
Columbia Variable Portfolio - Corporate Bond
Fund (Class 2) (previously Columbia Variable
Portfolio - Global Strategic Income Fund
(Class 2))
Columbia Management Investment Advisers,
LLC |
0.72%2 |
3.30% |
(0.78%) |
0.63% |
| Seeks to provide
shareholders with
capital appreciation. |
Columbia Variable Portfolio - Disciplined
Core Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.92% |
25.74% |
8.14% |
13.77% |
| Seeks to provide
shareholders with a high
level of current income
and, as a secondary
objective, steady growth
of capital. |
Columbia Variable Portfolio - Dividend
Opportunity Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.98%2 |
15.12% |
5.97% |
8.62% |
| Non-diversified fund that
seeks to provide
shareholders with high
total return through
current income and,
secondarily, through
capital appreciation. |
Columbia Variable Portfolio - Emerging
Markets Bond Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
1.00%2 |
6.13% |
(0.70%) |
0.46% |
| Seeks to provide
shareholders with
long-term capital growth. |
Columbia Variable Portfolio - Emerging
Markets Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
1.34%2 |
5.45% |
(8.32%) |
(1.01%) |
| Seeks to provide
shareholders with
maximum current
income consistent with
liquidity and stability of
principal. |
Columbia Variable Portfolio - Government
Money Market Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.61%2 |
4.71% |
3.42% |
2.09% |
| Seeks to provide
shareholders with high
current income as its
primary objective and,
as its secondary
objective, capital
growth. |
Columbia Variable Portfolio - High Yield Bond
Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.89%2 |
6.88% |
2.18% |
3.51% |
| Seeks to provide
shareholders with a high
total return through
current income and
capital appreciation. |
Columbia Variable Portfolio - Income
Opportunities Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.89%2 |
5.71% |
1.86% |
3.07% |
| Investment Objective |
Fund and Adviser/Sub-Adviser |
Current
Expenses
Ratio
[NET] |
Average Annual Total Returns (as
of 12/31/2024) | ||
| 1 Year |
5 Year |
10 Year | |||
| Seeks to provide
shareholders with a high
level of current income
while attempting to
conserve the value of
the investment for the
longest period of time. |
Columbia Variable Portfolio - Intermediate
Bond Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.77% |
1.73% |
(3.72%) |
(0.06%) |
| Seeks to provide
shareholders with
long-term capital growth. |
Columbia Variable Portfolio - Large Cap
Growth Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.97% |
31.01% |
8.59% |
17.18% |
| Seeks to provide
shareholders with
long-term capital
appreciation. |
Columbia Variable Portfolio - Large Cap Index
Fund (Class 3)
Columbia Management Investment Advisers,
LLC |
0.38% |
24.54% |
8.52% |
14.07% |
| Seeks to provide
shareholders with a
level of current income
consistent with
preservation of capital. |
Columbia Variable Portfolio - Limited
Duration Credit Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.66%2 |
4.64% |
1.48% |
1.81% |
| Seeks total return,
consisting of current
income and capital
appreciation. |
Columbia Variable Portfolio - Long
Government/Credit Bond Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.72%2 |
(4.39%) |
(9.65%) |
(3.58%) |
| Seeks to provide
shareholders with
capital appreciation. |
Columbia Variable Portfolio - Overseas Core
Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
1.04% |
3.16% |
0.41% |
3.87% |
| Seeks to provide
shareholders with
long-term growth of
capital. |
Columbia Variable Portfolio - Select Large
Cap Value Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.94% |
12.58% |
5.04% |
9.29% |
| Seeks to provide
shareholders with
growth of capital. |
Columbia Variable Portfolio - Select Mid Cap
Growth Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
1.07%2 |
23.37% |
2.06% |
10.80% |
| Seeks to provide
shareholders with
long-term growth of
capital. |
Columbia Variable Portfolio - Select Mid Cap
Value Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
1.07%2 |
12.27% |
3.73% |
9.58% |
| Seeks to provide
shareholders with
long-term capital growth. |
Columbia Variable Portfolio - Select Small
Cap Value Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
1.10%2 |
13.66% |
2.95% |
9.19% |
| Seeks total return,
consisting of current
income and capital
appreciation. |
Columbia Variable Portfolio - Strategic
Income Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.94%2 |
4.51% |
0.33% |
1.82% |
| Investment Objective |
Fund and Adviser/Sub-Adviser |
Current
Expenses
Ratio
[NET] |
Average Annual Total Returns (as
of 12/31/2024) | ||
| 1 Year |
5 Year |
10 Year | |||
| Seeks to provide
shareholders with
current income as its
primary objective and,
as its secondary
objective, preservation
of capital. |
Columbia Variable Portfolio -
U.S. Government Mortgage Fund (Class 2)
Columbia Management Investment Advisers,
LLC |
0.71% |
1.33% |
(2.91%) |
(1.06%) |
| Seeks to provide
shareholders with a high
level of current income. |
CTIVP® - American Century Diversified Bond
Fund (Class 2)
Columbia Management Investment Advisers,
LLC, adviser; American Century Investment
Management, Inc., subadviser. |
0.75% |
1.53% |
(3.33%) |
(0.39%) |
| Non-diversified fund that
seeks to provide
shareholders with total
return that exceeds the
rate of inflation over the
long term. |
CTIVP® - BlackRock Global Inflation-Protected
Securities Fund (Class 2)
Columbia Management Investment Advisers,
LLC, adviser; BlackRock Financial
Management, Inc., subadviser; BlackRock
International Limited, sub-subadviser. |
0.87%2 |
(1.20%) |
(5.46%) |
(0.78%) |
| Seeks to provide
shareholders with
current income and
capital appreciation. |
CTIVP® - CenterSquare Real Estate Fund
(Class 2)
Columbia Management Investment Advisers,
LLC, adviser; CenterSquare Investment
Management LLC, subadviser. |
1.07% |
9.86% |
(1.90%) |
4.79% |
| Seeks to provide
shareholders with
long-term capital growth. |
CTIVP® - Principal Blue Chip Growth Fund
(Class 2) (on or about June 1, 2025 to be
known as CTIVP® - Principal Large Cap
Growth Fund (Class 2))
Columbia Management Investment Advisers,
LLC, adviser; Principal Global Investors, LLC,
subadviser. |
0.94% |
21.12% |
6.58% |
13.51% |
| Seeks to provide
shareholders with
long-term growth of
capital and income. |
CTIVP® - T. Rowe Price Large Cap Value Fund
(Class 2)
Columbia Management Investment Advisers,
LLC, adviser; T. Rowe Price Associates, Inc.,
subadviser. |
0.95% |
11.68% |
4.99% |
8.18% |
| Seeks to provide
shareholders with total
return through current
income and capital
appreciation. |
CTIVP® - TCW Core Plus Bond Fund (Class 2)
Columbia Management Investment Advisers,
LLC, adviser; TCW Investment Management
Company LLC, subadviser. |
0.74% |
0.51% |
(3.13%) |
(0.53%) |
| Seeks to provide
shareholders with
long-term growth of
capital. |
CTIVP® - Victory Sycamore Established Value
Fund (Class 2)
Columbia Management Investment Advisers,
LLC, adviser; Victory Capital Management
Inc., subadviser. |
1.07% |
9.62% |
5.26% |
10.59% |
| Seeks to provide
shareholders with
long-term capital growth. |
CTIVP® - Wellington Large Cap Value Fund
(Class 2) (previously CTIVP® - MFS® Value
Fund (Class 2))
Columbia Management Investment Advisers,
LLC, adviser; Wellington Management
Company LLP, subadviser. |
0.87%2 |
11.44% |
3.99% |
7.77% |
| Investment Objective |
Fund and Adviser/Sub-Adviser |
Current
Expenses
Ratio
[NET] |
Average Annual Total Returns (as
of 12/31/2024) | ||
| 1 Year |
5 Year |
10 Year | |||
| Seeks to provide
shareholders with
long-term capital growth. |
CTIVP® - Westfield Mid Cap Growth Fund
(Class 2)
Columbia Management Investment Advisers,
LLC, adviser; Westfield Capital Management
Company, L.P., subadviser. |
1.07%2 |
17.19% |
2.87% |
10.02% |
| Seeks to provide
shareholders with
long-term capital growth. |
CTIVP® - Westfield Select Large Cap Growth
Fund (Class 2)
Columbia Management Investment Advisers,
LLC, adviser; Westfield Capital Management
Company, L.P., subadviser. |
0.94% |
27.15% |
(0.79%) |
10.38% |
| Seeks capital
appreciation. |
DWS Alternative Asset Allocation VIP,
Class B3 DWS Investment Management Americas Inc., adviser; RREEF America L.L.C., subadvisor. |
1.26% |
5.30% |
3.97% |
2.83% |
| Seeks long-term capital
appreciation. |
Fidelity® VIP Contrafund® Portfolio Service
Class 2
Fidelity Management & Research Company
(the Adviser) is the fund’s manager. Fidelity
Management & Research Company (UK)
Limited, Fidelity Management & Research
Company (Hong Kong) Limited, Fidelity
Management & Research Company (Japan)
Limited, subadvisers. |
0.81% |
33.45% |
16.74% |
13.33% |
| Seeks long-term growth
of capital. |
Fidelity® VIP Mid Cap Portfolio Service
Class 2
Fidelity Management & Research Company
(the Adviser) is the fund’s manager. Fidelity
Management & Research Company (UK)
Limited, Fidelity Management & Research
Company (Hong Kong) Limited, Fidelity
Management & Research Company (Japan)
Limited, subadvisers. |
0.82% |
17.18% |
11.06% |
8.94% |
| Seeks a high level of
current income and may
also seek capital
appreciation. |
Fidelity® VIP Strategic Income Portfolio
Service Class 2
Fidelity Management & Research Company
(the Adviser) is the fund’s manager. Fidelity
Management & Research Company (UK)
Limited, Fidelity Management & Research
Company (Hong Kong) Limited, Fidelity
Management & Research Company (Japan)
Limited, FIL Investment Advisers, FIL
Investment Advisers (UK) Limited and FIL
Investments (Japan) Limited,
subadvisers. |
0.89% |
5.78% |
2.54% |
3.34% |
| Seeks to maximize
income while
maintaining prospects
for capital appreciation.
Under normal market
conditions, the fund
invests in a diversified
portfolio of equity and
debt securities. |
Franklin Income VIP Fund - Class 2
Franklin Advisers, Inc. |
0.72%2 |
7.20% |
5.29% |
5.27% |
| Investment Objective |
Fund and Adviser/Sub-Adviser |
Current
Expenses
Ratio
[NET] |
Average Annual Total Returns (as
of 12/31/2024) | ||
| 1 Year |
5 Year |
10 Year | |||
| Seeks capital
appreciation, with
income as a secondary
goal. Under normal
market conditions, the
fund invests primarily in
U.S. and foreign equity
securities that the
investment manager
believes are
undervalued. |
Franklin Mutual Shares VIP Fund - Class 2
Franklin Mutual Advisers, LLC |
0.94% |
11.27% |
5.75% |
5.83% |
| Seeks long-term total
return. Under normal
market conditions, the
fund invests at least
80% of its net assets in
investments of small
capitalization
companies. |
Franklin Small Cap Value VIP Fund - Class 2
Franklin Mutual Advisers, LLC |
0.90%2 |
11.71% |
8.36% |
8.17% |
| Seeks total return with a
low to moderate
correlation to traditional
financial market indices. |
Invesco V.I. Balanced-Risk Allocation Fund,
Series II Shares1 Invesco Advisers, Inc. |
1.06%2 |
3.56% |
2.51% |
3.57% |
| Seeks capital
appreciation. |
Invesco V.I. Global Fund, Series II Shares
Invesco Advisers, Inc. |
1.06% |
15.78% |
9.21% |
9.58% |
| Seeks total return |
Invesco V.I. Global Strategic Income Fund,
Series II Shares
Invesco Advisers, Inc. |
1.18%2 |
3.02% |
(0.43%) |
1.28% |
| Seeks capital
appreciation. |
Invesco V.I. Main Street Small Cap Fund®,
Series II Shares
Invesco Advisers, Inc. |
1.11% |
12.41% |
10.21% |
8.73% |
| Seeks long-term capital
growth, consistent with
preservation of capital
and balanced by current
income. |
Janus Henderson Balanced Portfolio:
Service Shares
Janus Henderson Investors US LLC |
0.87% |
15.15% |
8.06% |
8.40% |
| Seeks to obtain
maximum total return,
consistent with
preservation of capital. |
Janus Henderson Flexible Bond Portfolio:
Service Shares
Janus Henderson Investors US LLC |
0.82%2 |
1.63% |
0.09% |
1.35% |
| Non-diversified fund that
pursues its investment
objective by investing
primarily in common
stocks selected for their
growth potential. |
Janus Henderson Research Portfolio:
Service Shares
Janus Henderson Investors US LLC |
0.92% |
34.96% |
16.49% |
14.25% |
| Seeks long-term capital
appreciation. |
Lazard Retirement Global Dynamic
Multi-Asset Portfolio - Service Shares1 Lazard Asset Management, LLC |
1.05%2 |
8.60% |
2.33% |
4.35% |
| Seeks long-term capital
growth. Income is a
secondary objective. |
LVIP American Century Value Fund, Service
Class
American Century Investment Management,
Inc. |
0.86%2 |
9.29% |
8.41% |
8.01% |
| Investment Objective |
Fund and Adviser/Sub-Adviser |
Current
Expenses
Ratio
[NET] |
Average Annual Total Returns (as
of 12/31/2024) | ||
| 1 Year |
5 Year |
10 Year | |||
| Seeks to provide total
return. |
Macquarie VIP Asset Strategy Series -
Service Class
Delaware Management Company, a series of
Macquarie Investment Management
Business Trust,adviser, Macquarie
Investment Management Austria
Kapitalanlage AG, Macquarie Investment
Management Europe Limited, Macquarie
Investment Management Global Limited,
sub-advisers |
0.85%2 |
12.44% |
6.56% |
5.27% |
| Seeks total return. |
MFS® Utilities Series - Service Class
Massachusetts Financial Services Company |
1.04%2 |
11.34% |
5.61% |
6.02% |
| The Fund seeks
long-term capital growth
by investing primarily in
common stocks and
other equity securities. |
Morgan Stanley VIF Discovery Portfolio,
Class II Shares
Morgan Stanley Investment Management
Inc. |
1.05%2 |
41.73% |
11.11% |
12.02% |
| Seeks long-term growth
of capital by investing
primarily in securities of
companies that meet
the Fund's
environmental, social
and governance (ESG)
criteria. |
Neuberger Berman AMT Sustainable Equity
Portfolio (Class S)
Neuberger Berman Investment Advisers LLC |
1.15% |
25.52% |
13.68% |
11.18% |
| Seeks maximum real
return, consistent with
preservation of real
capital and prudent
investment
management. |
PIMCO VIT All Asset Portfolio, Advisor Class3 Pacific Investment Management Company LLC (PIMCO) |
2.37%2 |
3.57% |
4.31% |
4.25% |
| Seeks total return which
exceeds that of a blend
of 60% MSCI World
Index/40% Barclays
U.S. Aggregate Index. |
PIMCO VIT Global Managed Asset Allocation
Portfolio, Advisor Class3 Pacific Investment Management Company LLC (PIMCO) |
1.28%2 |
10.75% |
6.03% |
5.75% |
| Seeks maximum total
return, consistent with
preservation of capital
and prudent investment
management. |
PIMCO VIT Total Return Portfolio, Advisor
Class
Pacific Investment Management Company
LLC (PIMCO) |
0.89% |
2.43% |
(0.13%) |
1.43% |
| Seeks high current
income, consistent with
preservation of capital,
with capital appreciation
as a secondary
consideration. Under
normal market
conditions, the fund
invests at least 80% of
its net assets in debt
securities of any
maturity. |
Templeton Global Bond VIP Fund - Class 2
Franklin Advisers, Inc. |
0.75%2 |
(11.37%) |
(4.85%) |
(2.03%) |
| Investment Objective |
Fund and Adviser/Sub-Adviser |
Current
Expenses
Ratio
[NET] |
Average Annual Total Returns (as
of 12/31/2024) | ||
| 1 Year |
5 Year |
10 Year | |||
| Seeks long-term capital
appreciation by
investing in common
stocks of gold-mining
companies. The Fund
may take current
income into
consideration when
choosing investments. |
VanEck VIP Global Gold Fund (Class S
Shares)
Van Eck Associates Corporation |
1.45%2 |
14.41% |
5.46% |
6.69% |
| Seeks to provide a high
level of total return that
is consistent with an
aggressive level of risk. |
Variable Portfolio - Aggressive Portfolio
(Class 2)3 Columbia Management Investment Advisers, LLC |
1.04% |
13.20% |
2.78% |
7.64% |
| Seeks to provide a high
level of total return that
is consistent with a
conservative level of
risk. |
Variable Portfolio - Conservative Portfolio
(Class 2)3 Columbia Management Investment Advisers, LLC |
0.87%2 |
4.42% |
(1.47%) |
1.46% |
| Pursues total return
while seeking to
manage the Fund's
exposure to equity
market volatility. |
Variable Portfolio - Managed Risk Fund
(Class 2)1,3 Columbia Management Investment Advisers, LLC |
1.02%2 |
9.41% |
0.49% |
3.90% |
| Pursues total return
while seeking to
manage the Fund's
exposure to equity
market volatility. |
Variable Portfolio - Managed Risk U.S. Fund
(Class 2)1,3 Columbia Management Investment Advisers, LLC |
0.99% |
11.70% |
1.93% |
5.68% |
| Pursues total return
while seeking to
manage the Fund's
exposure to equity
market volatility. |
Variable Portfolio - Managed Volatility
Conservative Fund (Class 2)1,3 Columbia Management Investment Advisers, LLC |
0.95% |
4.31% |
(1.86%) |
0.96% |
| Pursues total return
while seeking to
manage the Fund's
exposure to equity
market volatility. |
Variable Portfolio - Managed Volatility
Conservative Growth Fund (Class 2)1,3 Columbia Management Investment Advisers, LLC |
0.98% |
6.80% |
(0.87%) |
2.32% |
| Pursues total return
while seeking to
manage the Fund's
exposure to equity
market volatility. |
Variable Portfolio - Managed Volatility Growth
Fund (Class 2)1,3 Columbia Management Investment Advisers, LLC |
1.01% |
11.98% |
1.11% |
5.18% |
| Pursues total return
while seeking to
manage the Fund’s
exposure to equity
market volatility. |
Variable Portfolio - Managed Volatility
Moderate Growth Fund (Class 2)1,3 Columbia Management Investment Advisers, LLC |
0.98% |
9.41% |
0.18% |
3.82% |
| Seeks to provide a high
level of total return that
is consistent with a
moderate level of risk. |
Variable Portfolio - Moderate Portfolio
(Class 2)3 Columbia Management Investment Advisers, LLC |
0.97% |
8.72% |
0.80% |
4.73% |
| Investment Objective |
Fund and Adviser/Sub-Adviser |
Current
Expenses
Ratio
[NET] |
Average Annual Total Returns (as
of 12/31/2024) | ||
| 1 Year |
5 Year |
10 Year | |||
| Seeks to provide a high
level of total return that
is consistent with a
moderately aggressive
level of risk. |
Variable Portfolio - Moderately Aggressive
Portfolio (Class 2)3 Columbia Management Investment Advisers, LLC |
1.01% |
11.00% |
1.68% |
6.13% |
| Seeks to provide a high
level of total return that
is consistent with a
moderately conservative
level of risk. |
Variable Portfolio - Moderately Conservative
Portfolio (Class 2)3 Columbia Management Investment Advisers, LLC |
0.94% |
6.41% |
(0.45%) |
2.98% |
| Seeks to provide
shareholders with a high
level of current income
while conserving the
value of the investment
for the longest period of
time. |
Variable Portfolio - Partners Core Bond Fund
(Class 2)
Columbia Management Investment Advisers,
LLC, adviser; J.P. Morgan Investment
Management Inc. and Allspring Global
Investments, LLC, subadvisers. |
0.73% |
2.01% |
(2.22%) |
(0.10%) |
| Seeks to provide
shareholders with
long-term capital growth. |
Variable Portfolio - Partners Core Equity Fund
(Class 2)
Columbia Management Investment Advisers,
LLC, adviser; J.P. Morgan Investment
Management Inc. and T. Rowe Price
Associates, Inc., subadvisers. |
0.93% |
23.10% |
8.09% |
13.75% |
| Seeks to provide
shareholders with
long-term growth of
capital. |
Variable Portfolio - Partners International
Core Equity Fund (Class 2)
Columbia Management Investment Advisers,
LLC, adviser; Schroder Investment
Management North America Inc.,
subadviser; Schroder Investment
Management North America Limited,
sub-subadviser. |
1.07% |
5.58% |
(0.14%) |
4.57% |
| Seeks to provide
shareholders with
long-term capital growth. |
Variable Portfolio - Partners International
Growth Fund (Class 2)
Columbia Management Investment Advisers
LLC, adviser; William Blair Investment
Management, LLC and Walter Scott &
Partners Limited, subadvisers. |
1.06%2 |
(1.41%) |
(6.20%) |
2.17% |
| Seeks to provide
shareholders with
long-term capital growth. |
Variable Portfolio - Partners International
Value Fund (Class 2)
Columbia Management Investment Advisers,
LLC, adviser; Pzena Investment
Management, LLC and Thompson, Siegel &
Walmsley LLC, subadvisers. |
1.05%2 |
4.30% |
2.49% |
2.87% |
| Seeks to provide
shareholders with
long-term capital growth. |
Variable Portfolio - Partners Small Cap
Growth Fund (Class 2)
Columbia Management Investment Advisers,
LLC, adviser;Goldman Sachs Asset
Management, LP and Segall Bryant & Hamill
LLC, subadvisers. |
1.10%2 |
18.70% |
(3.47%) |
6.11% |
| Investment Objective |
Fund and Adviser/Sub-Adviser |
Current
Expenses
Ratio
[NET] |
Average Annual Total Returns (as
of 12/31/2024) | ||
| 1 Year |
5 Year |
10 Year | |||
| Seeks to provide
shareholders with
long-term capital
appreciation. |
Variable Portfolio - Partners Small Cap Value
Fund (Class 2)
Columbia Management Investment Advisers,
LLC, adviser; Segall Bryant & Hamill, LLC
and William Blair Investment Management,
LLC, subadvisers. |
1.09%2 |
7.70% |
1.28% |
5.98% |
| Pursues total return
while seeking to
manage the Fund's
exposure to equity
market volatility. |
Variable Portfolio - U.S. Flexible Conservative
Growth Fund (Class 2)1,3 Columbia Management Investment Advisers, LLC |
0.95% |
9.41% |
0.44% |
2.89% |
| Pursues total return
while seeking to
manage the Fund's
exposure to equity
market volatility. |
Variable Portfolio - U.S. Flexible Growth Fund
(Class 2)1,3 Columbia Management Investment Advisers, LLC |
0.94% |
17.15% |
3.60% |
6.12% |
| Pursues total return
while seeking to
manage the Fund's
exposure to equity
market volatility. |
Variable Portfolio - U.S. Flexible Moderate
Growth Fund (Class 2)1,3 Columbia Management Investment Advisers, LLC |
0.93% |
13.19% |
2.05% |
4.57% |
| Seeks to maximize total
return. |
Western Asset Variable Global High Yield
Bond Portfolio - Class II
Franklin Templeton Fund Adviser, LLC,
adviser; Western Asset Management
Company, LLC, subadviser. |
1.06% |
6.70% |
1.81% |
3.45% |
| 1 Year Guarantee Period Account |
1 Year |
0% |
| 2 Year Guarantee Period Account |
2 Years |
0% |
| 3 Year Guarantee Period Account |
3 Years |
0% |
| 4 Year Guarantee Period Account |
4 Years |
0% |
| 5 Year Guarantee Period Account |
5 Years |
0% |
| 6 Year Guarantee Period Account |
6 Years |
0% |
| 7 Year Guarantee Period Account |
7 Years |
0% |
| 8 Year Guarantee Period Account |
8 Years |
0% |
| 9 Year Guarantee Period Account |
9 Years |
0% |
| 10 Year Guarantee Period Account |
10 Years |
0% |
| Regular Fixed Account (not available for Rava 5 Access) |
1 Year |
2012 |
1.00% |
| 2013 |
1.00% | ||
| Special DCA Fixed Account |
6 Months |
2012 |
1.00% |
| 2013 |
1.00% | ||
| Special DCA Fixed Account |
1 Year |
2012 |
1.00% |
| 2013 |
1.00% |
70100 Ameriprise Financial Center
Minneapolis, MN 55474
1-800-862-7919
C000266987; C000266988; C000266989
Table of Contents
STATEMENT OF ADDITIONAL INFORMATION
FOR
RIVERSOURCE® GROUP VARIABLE ANNUITY CONTRACT
RIVERSOURCE ACCOUNT F
September 22, 2025
RiverSource Account F is a separate account established and maintained by RiverSource Life Insurance Company (RiverSource Life).
This Statement of Additional Information (SAI) is not a prospectus. It should be read together with the prospectus dated the same date as this SAI, which may be obtained from your sales representative, or by writing or calling us at the address and telephone number below.
RiverSource Life Insurance Company
70100 Ameriprise Financial Center
Minneapolis, MN 55474
1-800-862-7919
SAI9050_12_D01_(09/25)
Table of Contents
| p. | 3 | |||||||
| p. | 3 | |||||||
| p. | 3 | |||||||
| p. | 5 | |||||||
| p. | 8 | |||||||
| p. | 8 | |||||||
| p. | 8 | |||||||
| p. | 8 | |||||||
| Financial Statements |
||||||||
| 2 | ∎ RIVERSOURCE ACCOUNT F | |
Table of Contents
We are RiverSource Life Insurance Company (the “Company”, “we”, “our” and “us”). We are a stock life insurance company organized in 1957 under the laws of the state of Minnesota and are located at 829 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc.
We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary products currently include fixed and variable annuity contracts (including indexed linked annuity contracts) and life insurance policies.
Non-Principal Risks of Investing in the Contracts
Fund of Funds Risk. Funds that are “funds of funds” (or “feeder funds”) invest substantially all of their assets in other funds and will therefore bear a pro-rata share of fees and expenses incurred by both funds. This will reduce your investment return.
Money Market Fund Sub-Account Delay of Payment Risk. If, pursuant to SEC rules, a Fund that is a money market fund suspends payment of redemption proceeds in connection with a liquidation of such Fund, we will delay payment of any transfer, partial withdrawal, full surrender, or death benefit from the corresponding Subaccount until the Fund is liquidated.
Mixed and Shared Funding Risk. Fund shares may be sold to our insurance company affiliates or other unaffiliated insurance companies to serve as an underlying investment for variable annuity contracts and variable life insurance policies, pursuant to a practice known as mixed and shared funding. As a result, there is a possibility that a material conflict may arise between the interests of Owners, and other Owners investing in these Funds. If a material conflict arises, we will consider what action may be appropriate, including removing the Fund from the Variable Account or replacing the Fund with another underlying Fund.
BUSINESS CONTINUITY/DISASTER RECOVERY
Disruptive events, including natural or man-made disasters and public health crises may adversely affect our ability to conduct business, including if our employees, the employees of intermediaries or service providers are unable to perform their responsibilities as a result of any such event. Such disruptions to our business operations could interfere with processing of transactions (including the issuance of contracts). Also, disruptions may interfere with our ability to receive, pick up and process mail and messages, impact our ability to calculate values, or cause other operational or system issues. Furthermore, these disruptions may persist even if our employees, the employees of intermediaries or service providers are able to work remotely. These events may also impact the issuers of securities in which the Funds invest, which may cause the Funds to lose value. There can be no assurance that RiverSource Life, the Funds, or our service providers will avoid losses affecting your policy due to a disaster or other catastrophe.
Our Service Center performs certain administrative services on the contracts and policies we issue. The address and telephone number of our Service Center are listed on the first page of the prospectus.
We also have entered into agreements with the following entities to provide the identified services in connection with the contracts and policies we issue. The entities engaged by RiverSource Life may change over time. We may modify, terminate, or enter into new arrangements with service providers at any time.
Entities that provide a significant amount of services to RiverSource Life are listed in the table below, along with a description of the services provided and the basis for compensation paid.
| Name of Service Provider | Services Provided | Principal Business Address | Basis for Compensation Paid | |||
| Ameriprise Financial, Inc. (“AFI”)* | Business affairs management and administrative support related to new business and servicing of existing contracts and policies | 901 Third Avenue South, Minneapolis, MN 55402 USA | Expense allocation based primarily on policies in force, secondarily on policies issued or cash sales (for acquisition expenses) | |||
| Ameriprise India LLP (“Amp India”)* | Administrative support related to new business and servicing of existing contracts and policies | Plot No. 14, Sector 18 Udyog Vihar Gurugram, Haryana – 122 015 India |
Expense allocation based on number of service provider employees dedicated to performing services | |||
| Foundever Asia, Inc. (“Foundever Asia”)(previously known as Sykes Enterprises Incorporated) | Administrative support related to new business and servicing of existing contracts and policies | 10th Floor, Glorietta BPO 1 Office Tower Makati City 1224 Metro Manila Philippines | Expense allocation based on number of contacts made or received from customers |
| * | Affiliated Entities |
| RIVERSOURCE ACCOUNT F ∎ | 3 | |||
Table of Contents
The aggregate dollar amount paid to AFI by RiverSource Life for the services provided in 2024 was $17,461,314, in 2023 was $20,661,758 and in 2022 was $20,635,581.
The aggregate dollar amount paid to Amp India by RiverSource Life for the services provided in 2024 was $5,050,412, in 2023 was $4,115,930 and in 2022 was $3,629,759.
The aggregate dollar amount paid to Foundever Asia by RiverSource Life for the services provided in 2024 was $1,510,481, in 2023 was $1,334,367 and in 2022 was $1,497,395.
| 4 | ∎ RIVERSOURCE ACCOUNT F | |
Table of Contents
Market Value Adjustment
A Market Value Adjustment (MVA) applies only when we pay out the fixed account value in a lump sum when:
| • | you withdraw the total contract value to transfer that value to another funding vehicle; |
| • | you make a total withdrawal of the fixed account contract value; or |
| • | we terminate the contract as described below. (See “Contract Termination.”) |
We will apply the MVA to the contract value withdrawn from the fixed account after deducting any applicable contract administrative charge and withdrawal charge. (See “Charges and Adjustments.”)
The MVA will reflect the relationship between the current interest rate credited to new purchase payments allocated to the fixed account and the rate credited to all prior purchase payments. We calculate the MVA as follows:
MVA = fixed account value × (A – B) x C
| RIVERSOURCE ACCOUNT F ∎ | 5 | |||
Table of Contents
Where:
| A | = | the weighted average interest rate (in decimal form) credited to all fixed account purchase payments made by you at the time of termination, rounded to four decimal places; | ||
| B | = | the interest rate (in decimal form) credited to new purchase payments to the contract at the time of termination or total withdrawal, rounded to four decimal places; and | ||
| C | = | the annuity factor, which represents the relationship between the contract year and the average duration of underlying investments from the following table: | ||
| Contract year | Annuity factor | |||
| 1–3 | 6.0 | |||
| 4–6 | 5.0 | |||
| 7+ | 4.0 | |||
The following examples show a downward and upward MVA.
| 1. | Assume: contract effective date of Oct. 1, 1993 | contract termination date of July 1, 1998 contract year at termination is five |
| Year | Purchase payments | Initial rate | Current rate | Accumulation account value | ||||||||||
| 1 | $10,000 | 6.50 | % | 6.25 | % | $12,560 | ||||||||
| 2 | 8,000 | 6.00 | 6.25 | 9,870 | ||||||||||
| 3 | 12,000 | 6.25 | 6.25 | 13,960 | ||||||||||
| 4 | 15,000 | 7.50 | 6.75 | 16,660 | ||||||||||
| 5 | 20,000 | 6.50 | 6.50 | 20,640 | ||||||||||
| Total accumulation account value |
= | $73,690 | ||
| Withdrawal charge = .03 × 73,690 |
= | 2,211 | ||
| Fixed account value = 73,690 – 2,211 |
= | 71,479 | ||
| Weighted average interest rate |
= | 6.433% | ||
| Interest rate on new purchase payments |
= | 6.750 | ||
| MVA = $71,479 × (.06433 – .06750) × 5.0 |
= | $(1,132.94) | ||
| Market value = 71,479 – 1,132.94 |
= | 70,346.06 |
| 2. | Assume: contract effective date of Jan. 15, 1994 | contract termination date of Sept. 20, 1996 contract year at termination is three |
| Year | Purchase payments | Initial rate | Current rate | Accumulation account value | ||||||||||
| 1 | $15,000 | 7.00 | % | 6.25 | % | $17,710 | ||||||||
| 2 | 20,000 | 6.50 | 6.00 | 22,140 | ||||||||||
| 3 | 25,000 | 5.50 | 5.50 | 25,910 | ||||||||||
| Total accumulation account value |
= | $65,760 | ||
| Withdrawal charge = .05 × 65,760 |
= | 3,288 | ||
| Fixed account value = 65,760 – 3,288 |
= | 62,472 | ||
| Weighted average interest rate |
= | 5.870% | ||
| Interest rate on new purchase payments |
= | 5.250 | ||
| MVA = $62,472 × (.05870 – .05250) × 6 |
= | $2,323.96 | ||
| Market value = 62,472 + 2,323.96 |
= | 64,795.96 |
No MVA applies if:
| • | you make a partial withdrawal of the fixed account contract value; |
| • | we pay you installment payments when you withdraw the total contract value and transfer that value to another funding vehicle or we terminate the contract; or |
| • | you transfer contract values from the fixed account to the variable accounts. (See “Transferring Money Between Accounts.”) |
| 6 | ∎ RIVERSOURCE ACCOUNT F | |
Table of Contents
THE VARIABLE ACCOUNTS
We do the following calculations separately for each of the variable accounts. The separate monthly payouts, added together, make up your total variable annuity payout.
Initial Payout: To compute your first monthly payment, we:
| • | determine the dollar value of your contract or certificate on the valuation date and deduct any applicable premium tax; then |
| • | apply the result to the annuity table contained in the contract or certificate, or another table at least as favorable. |
The annuity table shows the amount of the first monthly payment for each $1,000 of value which depends on factors built into the table, as described below.
Annuity Units: We then convert the value of your variable account to annuity units. To compute the number of units credited to you, we divide the first monthly payment by the annuity unit value (see below) on the valuation date that falls on (or closest to the valuation date that falls before) the seventh calendar day before the retirement date. The number of units in your variable account is fixed. The value of the units fluctuates with the performance of the underlying fund.
Subsequent Payouts: To compute later payouts, we multiply:
| • | the annuity unit value on the valuation date by; |
| • | the fixed number of annuity units credited to you. |
Annuity Unit Values: We originally set this value at $1 for each variable account. To calculate later values we multiply the last annuity value by the product of:
| • | the net investment factor; and |
| • | the neutralizing factor. |
The purpose of the neutralizing factor is to offset the effect of the assumed rate built into the annuity table. With an assumed investment rate of 5%, the neutralizing factor is 0.999866 for a one day valuation period.
Net Investment Factor: We determine the net investment factor by:
| • | adding the fund’s current net asset value per share plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then |
| • | dividing that sum by the previous adjusted net asset value per share; and |
| • | subtracting the percentage factor representing the mortality and expense risk fee from the result. |
Because the net asset value of the fund may fluctuate, the net investment factor may be greater or less than one, and the annuity unit value may increase or decrease. You bear this investment risk in a variable account.
THE FIXED ACCOUNT
We guarantee your fixed annuity payout amounts. Once calculated, your payout will remain the same and never change. To calculate your annuity payouts we:
| • | take the value of your fixed account at the retirement date or the date you selected to begin receiving your annuity payouts; then |
| • | using an annuity table, we apply the value according to the annuity payout plan you select. |
The annuity payout table we use will be the one in effect at the time you choose to begin your annuity payouts. The values in the table will be equal to or greater than the table in your contract or certificate.
| RIVERSOURCE ACCOUNT F ∎ | 7 | |||
Table of Contents
We receive ratings from independent rating agencies. These agencies evaluate the creditworthiness and claims-paying ability of insurance companies based on a number of different factors. The ratings reflect each agency’s estimation of our ability to meet our contractual obligations such as making annuity payouts and paying death benefits and other distributions. As such, the ratings relate to our fixed account and not to the variable accounts. This information generally does not relate to the management or performance of the variable accounts.
For detailed information on the agency ratings given to RiverSource Life, see “Investor Relations — Financial Information — Credit Ratings” on our website at ameriprise.com or contact your sales representative. You also may view our current ratings by visiting the agency websites directly at:
| A.m. Best | www.ambest.com | |||
| Moody’s | www.moodys.com | |||
| Standard & Poor’s | www.standardandpoors.com |
A.M. Best — Rates insurance companies for their financial strength.
Moody’s — Rates insurance companies for their financial strength.
Standard & Poor’s — Rates insurance companies for their financial strength.
RiverSource Distributors, Inc. (RiverSource Distributors), our affiliate, serves as principal underwriter for the contracts, which are offered on a continuous basis. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is registered with the Securities and Exchange Commission under the Securities Act of 1934 as a broker dealer and is a member of the Financial Industry Regulatory Authority (FINRA). The contracts are offered to the public through certain securities broker-dealers that have entered into sales agreements with RiverSource Life and RiverSource Distributors and whose personnel are legally authorized to sell annuity and life insurance products. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc.
The aggregate dollar amount of underwriting commissions paid to RiverSource Distributors by RiverSource Life for the variable accounts in 2024 was $439,655,537, in 2023 was $394,275,424 and in 2022 was $408,452,683. RiverSource Distributors retained no underwriting commissions from the sale of the contracts.
Independent Registered Public Accounting Firm
The consolidated financial statements of RiverSource Life Insurance Company and its subsidiaries as of December 31, 2024 and December 31, 2023 and for each of the three years in the period ended December 31, 2024 and the financial statements of each of the divisions of RiverSource Account F as of December 31, 2024 and for the period then ended and the statement of changes in net assets for each of the two years in the period ended December 31, 2024 included in this Statement of Additional Information have been so included in reliance on the reports of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.
RiverSource Life is the custodian of the assets of RiverSource Account F. RiverSource Life holds these assets for safekeeping, maintains records and accounts relating to the variable account including purchase and redemption transactions, and is responsible for administration of the contracts. RiverSource Life’s principal offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474.
| 8 | ∎ RIVERSOURCE ACCOUNT F | |
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE BOARD OF DIRECTORS OF RIVERSOURCE LIFE INSURANCE COMPANY AND
THE CONTRACT OWNERS OF RIVERSOURCE ACCOUNT F
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities of each of the divisions of RiverSource Account F, as indicated in Note 1, as of December 31, 2024, and the related statements of operations and of changes in net assets for each of the periods indicated in Note 1, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the divisions of RiverSource Account F as of December 31, 2024, and the results of each of their operations and the changes in each of their net assets for each of the periods indicated in Note 1 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the RiverSource Life Insurance Company management. Our responsibility is to express an opinion on the financial statements of each of the divisions of the RiverSource Account F based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to each of the divisions of the RiverSource Account F in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of investments owned as of December 31, 2024, by correspondence with the transfer agents of the investee mutual funds. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Minneapolis, Minnesota
April 24, 2025
We have served as the auditor of one or more of the divisions of RiverSource Account F since 2010.
| RIVERSOURCE ACCOUNT F ∎ | 9 | |||
Table of Contents
Statements of Assets and Liabilities
| December 31, 2024 | AB VPS Relative Val, Cl B |
Allspg VT Sm Cap Gro, Cl 2 |
Col VP Bal, Cl 3 |
Col VP Disciplined Core, Cl 3 |
Col VP Divd Opp, Cl 3 |
|||||||||||||||
| Assets | ||||||||||||||||||||
| Investments, at fair value(1),(2) |
$ | 29,841,934 | $ | 20,663,246 | $ | 342,359,016 | $ | 579,898,921 | $ | 76,285,120 | ||||||||||
| Dividends receivable |
— | — | — | — | — | |||||||||||||||
| Receivable for share redemptions |
38,631 | 37,387 | 398,008 | 599,831 | 70,196 | |||||||||||||||
| Total assets |
29,880,565 | 20,700,633 | 342,757,024 | 580,498,752 | 76,355,316 | |||||||||||||||
| Liabilities | ||||||||||||||||||||
| Payable to RiverSource Life for: |
||||||||||||||||||||
| Mortality and expense risk fee |
26,324 | 18,264 | 301,092 | 510,737 | 67,386 | |||||||||||||||
| Contract terminations |
12,307 | 19,123 | 96,916 | 89,094 | 2,810 | |||||||||||||||
| Total liabilities |
38,631 | 37,387 | 398,008 | 599,831 | 70,196 | |||||||||||||||
| Net assets applicable to contracts in accumulation period |
29,486,842 | 20,549,308 | 339,486,338 | 574,530,642 | 75,576,742 | |||||||||||||||
| Net assets applicable to contracts in payment period |
355,092 | 113,938 | 2,872,678 | 5,368,279 | 708,378 | |||||||||||||||
| Total net assets |
$ | 29,841,934 | $ | 20,663,246 | $ | 342,359,016 | $ | 579,898,921 | $ | 76,285,120 | ||||||||||
| (1) Investment shares |
966,697 | 2,214,710 | 7,089,646 | 5,231,856 | 1,716,201 | |||||||||||||||
|
(2) Investments, at cost |
$ | 24,693,290 | $ | 19,708,987 | $ | 105,680,173 | $ | 123,568,408 | $ | 21,433,215 | ||||||||||
| December 31, 2024 (continued) | Col VP Cl 3 |
Col VP Govt Money Mkt, |
Col VP Hi Yield Bond, |
Col VP Cl 3 |
Col VP Cl 3 |
|||||||||||||||
| Assets | ||||||||||||||||||||
| Investments, at fair value(1),(2) |
$ | 4,641,121 | $ | 14,988,594 | $ | 15,276,840 | $ | 61,978,464 | $ | 40,213,946 | ||||||||||
| Dividends receivable |
— | 1,681 | — | — | — | |||||||||||||||
| Receivable for share redemptions |
6,843 | 13,425 | 18,693 | 73,916 | 44,012 | |||||||||||||||
| Total assets |
4,647,964 | 15,003,700 | 15,295,533 | 62,052,380 | 40,257,958 | |||||||||||||||
| Liabilities | ||||||||||||||||||||
| Payable to RiverSource Life for: |
||||||||||||||||||||
| Mortality and expense risk fee |
4,076 | 13,247 | 13,497 | 54,490 | 35,297 | |||||||||||||||
| Contract terminations |
2,767 | 178 | 5,196 | 19,426 | 8,715 | |||||||||||||||
| Total liabilities |
6,843 | 13,425 | 18,693 | 73,916 | 44,012 | |||||||||||||||
| Net assets applicable to contracts in accumulation period |
4,621,828 | 14,956,929 | 15,016,459 | 61,500,422 | 39,542,007 | |||||||||||||||
| Net assets applicable to contracts in payment period |
19,293 | 33,346 | 260,381 | 478,042 | 671,939 | |||||||||||||||
| Total net assets |
$ | 4,641,121 | $ | 14,990,275 | $ | 15,276,840 | $ | 61,978,464 | $ | 40,213,946 | ||||||||||
| (1) Investment shares |
600,404 | 14,988,594 | 2,488,085 | 7,422,571 | 835,701 | |||||||||||||||
|
(2) Investments, at cost |
$ | 5,776,813 | $ | 14,988,361 | $ | 16,061,554 | $ | 77,508,234 | $ | 8,462,505 | ||||||||||
See accompanying notes to financial statements.
| 10 | ∎ RIVERSOURCE ACCOUNT F | |
Table of Contents
Statements of Assets and Liabilities
| December 31, 2024 (continued) | Col VP Overseas Core, Cl 3 |
Col VP Cap Gro, Cl 3 |
||||||
| Assets | ||||||||
| Investments, at fair value(1),(2) |
$ | 71,794,194 | $ | 150,782,016 | ||||
| Dividends receivable |
— | — | ||||||
| Receivable for share redemptions |
81,521 | 148,679 | ||||||
| Total assets |
71,875,715 | 150,930,695 | ||||||
| Liabilities | ||||||||
| Payable to RiverSource Life for: |
||||||||
| Mortality and expense risk fee |
63,225 | 133,163 | ||||||
| Contract terminations |
18,296 | 15,516 | ||||||
| Total liabilities |
81,521 | 148,679 | ||||||
| Net assets applicable to contracts in accumulation period |
71,239,418 | 149,519,617 | ||||||
| Net assets applicable to contracts in payment period |
554,776 | 1,262,399 | ||||||
| Total net assets |
$ | 71,794,194 | $ | 150,782,016 | ||||
| (1) Investment shares |
5,455,486 | 2,735,027 | ||||||
|
(2) Investments, at cost |
$ | 60,413,194 | $ | 32,703,637 | ||||
See accompanying notes to financial statements.
| RIVERSOURCE ACCOUNT F ∎ | 11 | |||
Table of Contents
Statements of Operations
| Year ended December 31, 2024 | AB VPS Cl B |
Allspg VT Cl 2 |
Col VP Bal, Cl 3 |
Col VP Disciplined Core, Cl 3 |
Col VP Divd Opp, Cl 3 |
|||||||||||||||
| Investment income | ||||||||||||||||||||
| Dividend income |
$ | 392,162 | $ | — | $ | — | $ | — | $ | — | ||||||||||
| Variable account expenses |
316,424 | 213,354 | 3,492,970 | 5,747,368 | 794,410 | |||||||||||||||
| Investment income (loss) — net |
75,738 | (213,354 | ) | (3,492,970 | ) | (5,747,368 | ) | (794,410 | ) | |||||||||||
| Realized and unrealized gain (loss) on investments — net |
|
|||||||||||||||||||
| Realized gain (loss) on sales of investments: |
|
|||||||||||||||||||
| Proceeds from sales |
4,336,781 | 3,264,395 | 43,236,758 | 73,943,002 | 11,320,337 | |||||||||||||||
| Cost of investments sold |
3,552,906 | 3,271,371 | 13,994,603 | 17,096,096 | 3,310,184 | |||||||||||||||
| Net realized gain (loss) on sales of investments |
783,875 | (6,976 | ) | 29,242,155 | 56,846,906 | 8,010,153 | ||||||||||||||
| Distributions from capital gains |
1,103,459 | — | — | — | — | |||||||||||||||
| Net change in unrealized appreciation (depreciation) of investments |
1,497,979 | 3,630,579 | 17,408,962 | 72,618,550 | 3,147,140 | |||||||||||||||
| Net gain (loss) on investments |
3,385,313 | 3,623,603 | 46,651,117 | 129,465,456 | 11,157,293 | |||||||||||||||
| Net increase (decrease) in net assets resulting from operations |
$ | 3,461,051 | $ | 3,410,249 | $ | 43,158,147 | $ | 123,718,088 | $ | 10,362,883 | ||||||||||
| Year ended December 31, 2024 (continued) | Col VP Global Strategic Inc, |
Col VP Govt Money Mkt, |
Col VP Hi Yield Bond, |
Col VP Inter Bond, Cl 3 |
Col VP Lg Cap Gro, |
|||||||||||||||
| Investment income | ||||||||||||||||||||
| Dividend income |
$ | 164,784 | $ | 723,675 | $ | 956,168 | $ | 3,009,226 | $ | — | ||||||||||
| Variable account expenses |
49,368 | 153,250 | 166,178 | 647,699 | 387,809 | |||||||||||||||
| Investment income (loss) — net |
115,416 | 570,425 | 789,990 | 2,361,527 | (387,809 | ) | ||||||||||||||
| Realized and unrealized gain (loss) on investments — net |
|
|||||||||||||||||||
| Realized gain (loss) on sales of investments: |
|
|||||||||||||||||||
| Proceeds from sales |
803,155 | 3,921,103 | 3,484,708 | 7,162,263 | 5,866,952 | |||||||||||||||
| Cost of investments sold |
1,013,257 | 3,921,034 | 3,687,967 | 8,852,888 | 1,309,815 | |||||||||||||||
| Net realized gain (loss) on sales of investments |
(210,102 | ) | 69 | (203,259 | ) | (1,690,625 | ) | 4,557,137 | ||||||||||||
| Distributions from capital gains |
— | — | — | — | — | |||||||||||||||
| Net change in unrealized appreciation (depreciation) of investments |
201,799 | (70 | ) | 359,469 | (114,103 | ) | 5,735,679 | |||||||||||||
| Net gain (loss) on investments |
(8,303 | ) | (1 | ) | 156,210 | (1,804,728 | ) | 10,292,816 | ||||||||||||
| Net increase (decrease) in net assets resulting from operations |
$ | 107,113 | $ | 570,424 | $ | 946,200 | $ | 556,799 | $ | 9,905,007 | ||||||||||
| Year ended December 31, 2024 (continued) | Col VP Overseas Core, Cl 3 |
Col VP Cl 3 |
||||||||||||||||||
| Investment income | ||||||||||||||||||||
| Dividend income |
$ | 3,338,158 | $ | — | ||||||||||||||||
| Variable account expenses |
777,855 | 1,469,412 | ||||||||||||||||||
| Investment income (loss) — net |
2,560,303 | (1,469,412 | ) | |||||||||||||||||
| Realized and unrealized gain (loss) on investments — net |
|
|||||||||||||||||||
| Realized gain (loss) on sales of investments: |
||||||||||||||||||||
| Proceeds from sales |
10,023,224 | 20,552,417 | ||||||||||||||||||
| Cost of investments sold |
8,260,522 | 4,931,276 | ||||||||||||||||||
| Net realized gain (loss) on sales of investments |
1,762,702 | 15,621,141 | ||||||||||||||||||
| Distributions from capital gains |
— | — | ||||||||||||||||||
| Net change in unrealized appreciation (depreciation) of investments |
(2,387,318 | ) | 15,164,761 | |||||||||||||||||
| Net gain (loss) on investments |
(624,616 | ) | 30,785,902 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations |
$ | 1,935,687 | $ | 29,316,490 | ||||||||||||||||
See accompanying notes to financial statements.
| 12 | ∎ RIVERSOURCE ACCOUNT F | |
Table of Contents
Statements of Changes in Net Assets
| Year ended December 31, 2024 | AB VPS Relative Val, Cl B |
Allspg VT Sm Cap Gro, Cl 2 |
Col VP Bal, Cl 3 |
Col VP Disciplined Core, Cl 3 |
Col VP Divd Opp, Cl 3 |
|||||||||||||||
| Operations | ||||||||||||||||||||
| Investment income (loss) — net |
$ | 75,738 | $ | (213,354 | ) | $ | (3,492,970 | ) | $ | (5,747,368 | ) | $ | (794,410 | ) | ||||||
| Net realized gain (loss) on sales of investments |
783,875 | (6,976 | ) | 29,242,155 | 56,846,906 | 8,010,153 | ||||||||||||||
| Distributions from capital gains |
1,103,459 | — | — | — | — | |||||||||||||||
| Net change in unrealized appreciation (depreciation) of investments |
1,497,979 | 3,630,579 | 17,408,962 | 72,618,550 | 3,147,140 | |||||||||||||||
| Net increase (decrease) in net assets resulting from operations |
3,461,051 | 3,410,249 | 43,158,147 | 123,718,088 | 10,362,883 | |||||||||||||||
| Contract transactions | ||||||||||||||||||||
| Contract purchase payments |
60,426 | 56,356 | 789,684 | 1,111,814 | 214,703 | |||||||||||||||
| Net transfers(1) |
(539,126 | ) | (455,006 | ) | 1,332,343 | (4,194,530 | ) | (1,113,537 | ) | |||||||||||
| Transfers for policy loans |
7,912 | 8,073 | 70,016 | 135,862 | 28,858 | |||||||||||||||
| Adjustments to net assets allocated to contracts in payment period |
(44,774 | ) | (117,822 | ) | (897,308 | ) | (1,437,855 | ) | (232,080 | ) | ||||||||||
| Contract charges |
(11,345 | ) | (8,058 | ) | (158,600 | ) | (267,121 | ) | (32,035 | ) | ||||||||||
| Contract terminations: |
||||||||||||||||||||
| Surrender benefits |
(2,901,159 | ) | (2,167,245 | ) | (32,864,760 | ) | (52,979,070 | ) | (7,690,932 | ) | ||||||||||
| Death benefits |
(565,750 | ) | (312,519 | ) | (7,309,879 | ) | (10,464,773 | ) | (1,539,248 | ) | ||||||||||
| Increase (decrease) from transactions |
(3,993,816 | ) | (2,996,221 | ) | (39,038,504 | ) | (68,095,673 | ) | (10,364,271 | ) | ||||||||||
| Net assets at beginning of year |
30,374,699 | 20,249,218 | 338,239,373 | 524,276,506 | 76,286,508 | |||||||||||||||
| Net assets at end of year |
$ | 29,841,934 | $ | 20,663,246 | $ | 342,359,016 | $ | 579,898,921 | $ | 76,285,120 | ||||||||||
| Accumulation unit activity | ||||||||||||||||||||
| Units outstanding at beginning of year |
8,621,154 | 5,396,832 | 25,645,769 | 15,295,118 | 19,208,214 | |||||||||||||||
| Units purchased |
18,017 | 15,609 | 153,573 | 32,408 | 56,745 | |||||||||||||||
| Units redeemed |
(1,052,660 | ) | (705,766 | ) | (2,851,395 | ) | (1,737,196 | ) | (2,407,610 | ) | ||||||||||
| Units outstanding at end of year |
7,586,511 | 4,706,675 | 22,947,947 | 13,590,330 | 16,857,349 | |||||||||||||||
| (1) | Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account. |
See accompanying notes to financial statements.
| RIVERSOURCE ACCOUNT F ∎ | 13 | |||
Table of Contents
Statements of Changes in Net Assets
| Year ended December 31, 2024 (continued) | Col VP Global Strategic Inc, |
Col VP Govt Money Mkt, |
Col VP Hi Yield Bond, |
Col VP Inter Bond, |
Col VP Lg Cap Gro, |
|||||||||||||||
| Operations | ||||||||||||||||||||
| Investment income (loss) — net |
$ | 115,416 | $ | 570,425 | $ | 789,990 | $ | 2,361,527 | $ | (387,809 | ) | |||||||||
| Net realized gain (loss) on sales of investments |
(210,102 | ) | 69 | (203,259 | ) | (1,690,625 | ) | 4,557,137 | ||||||||||||
| Distributions from capital gains |
— | — | — | — | — | |||||||||||||||
| Net change in unrealized appreciation (depreciation) of investments |
201,799 | (70 | ) | 359,469 | (114,103 | ) | 5,735,679 | |||||||||||||
| Net increase (decrease) in net assets resulting from operations |
107,113 | 570,424 | 946,200 | 556,799 | 9,905,007 | |||||||||||||||
| Contract transactions | ||||||||||||||||||||
| Contract purchase payments |
16,349 | 37,036 | 57,908 | 291,482 | 107,827 | |||||||||||||||
| Net transfers(1) |
53,538 | 2,458,030 | (197,624 | ) | 2,580,700 | (132,169 | ) | |||||||||||||
| Transfers for policy loans |
1,469 | 13,209 | 483 | 18,380 | 16,707 | |||||||||||||||
| Adjustments to net assets allocated to contracts in payment period |
(7,744 | ) | (13,500 | ) | (39,546 | ) | (228,802 | ) | (112,654 | ) | ||||||||||
| Contract charges |
(2,257 | ) | (8,592 | ) | (6,856 | ) | (36,836 | ) | (12,679 | ) | ||||||||||
| Contract terminations: |
||||||||||||||||||||
| Surrender benefits |
(536,682 | ) | (3,422,875 | ) | (2,384,842 | ) | (5,972,540 | ) | (3,430,095 | ) | ||||||||||
| Death benefits |
(108,036 | ) | (320,929 | ) | (542,650 | ) | (1,661,935 | ) | (975,919 | ) | ||||||||||
| Increase (decrease) from transactions |
(583,363 | ) | (1,257,621 | ) | (3,113,127 | ) | (5,009,551 | ) | (4,538,982 | ) | ||||||||||
| Net assets at beginning of year |
5,117,371 | 15,677,472 | 17,443,767 | 66,431,216 | 34,847,921 | |||||||||||||||
| Net assets at end of year |
$ | 4,641,121 | $ | 14,990,275 | $ | 15,276,840 | $ | 61,978,464 | $ | 40,213,946 | ||||||||||
| Accumulation unit activity | ||||||||||||||||||||
| Units outstanding at beginning of year |
2,801,056 | 5,251,304 | 4,907,993 | 6,682,330 | 9,142,209 | |||||||||||||||
| Units purchased |
38,981 | 829,356 | 15,985 | 293,700 | 28,530 | |||||||||||||||
| Units redeemed |
(352,196 | ) | (1,241,014 | ) | (867,384 | ) | (775,215 | ) | (1,040,366 | ) | ||||||||||
| Units outstanding at end of year |
2,487,841 | 4,839,646 | 4,056,594 | 6,200,815 | 8,130,373 | |||||||||||||||
| (1) | Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account. |
See accompanying notes to financial statements.
| 14 | ∎ RIVERSOURCE ACCOUNT F | |
Table of Contents
Statements of Changes in Net Assets
| Year ended December 31, 2024 (continued) | Col VP Overseas Core, Cl 3 |
Col VP Select Mid Cap Gro, Cl 3 |
||||||
| Operations | ||||||||
| Investment income (loss) — net |
$ | 2,560,303 | $ | (1,469,412 | ) | |||
| Net realized gain (loss) on sales of investments |
1,762,702 | 15,621,141 | ||||||
| Distributions from capital gains |
— | — | ||||||
| Net change in unrealized appreciation (depreciation) of investments |
(2,387,318 | ) | 15,164,761 | |||||
| Net increase (decrease) in net assets resulting from operations |
1,935,687 | 29,316,490 | ||||||
| Contract transactions | ||||||||
| Contract purchase payments |
405,697 | 460,188 | ||||||
| Net transfers(1) |
(1,238,913 | ) | (1,859,625 | ) | ||||
| Transfers for policy loans |
30,406 | 34,999 | ||||||
| Adjustments to net assets allocated to contracts in payment period |
(79,155 | ) | (399,955 | ) | ||||
| Contract charges |
(42,264 | ) | (74,756 | ) | ||||
| Contract terminations: |
||||||||
| Surrender benefits |
(7,161,208 | ) | (14,816,922 | ) | ||||
| Death benefits |
(1,062,380 | ) | (2,045,315 | ) | ||||
| Increase (decrease) from transactions |
(9,147,817 | ) | (18,701,386 | ) | ||||
| Net assets at beginning of year |
79,006,324 | 140,166,912 | ||||||
| Net assets at end of year |
$ | 71,794,194 | $ | 150,782,016 | ||||
| Accumulation unit activity | ||||||||
| Units outstanding at beginning of year |
24,556,958 | 34,721,712 | ||||||
| Units purchased |
132,207 | 113,371 | ||||||
| Units redeemed |
(2,875,687 | ) | (4,249,974 | ) | ||||
| Units outstanding at end of year |
21,813,478 | 30,585,109 | ||||||
| (1) | Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account. |
See accompanying notes to financial statements.
| RIVERSOURCE ACCOUNT F ∎ | 15 | |||
Table of Contents
Statements of Changes in Net Assets
| Year ended December 31, 2023 | AB VPS Relative Val, Cl B |
Allspg VT Sm Cap Gro, Cl 2 |
Col VP Bal, Cl 3 |
Col VP Disciplined Core, Cl 3 |
Col VP Divd Opp, Cl 3 |
|||||||||||||||
| Operations | ||||||||||||||||||||
| Investment income (loss) — net |
$ | 81,732 | $ | (215,865 | ) | $ | (3,258,666 | ) | $ | (5,032,254 | ) | $ | (774,272 | ) | ||||||
| Net realized gain (loss) on sales of investments |
394,653 | (499,799 | ) | 21,900,943 | 37,998,047 | 6,698,497 | ||||||||||||||
| Distributions from capital gains |
2,407,407 | — | — | — | — | |||||||||||||||
| Net change in unrealized appreciation (depreciation) of investments |
121,364 | 1,355,614 | 40,631,962 | 70,356,944 | (3,164,317 | ) | ||||||||||||||
| Net increase (decrease) in net assets resulting from operations |
3,005,156 | 639,950 | 59,274,239 | 103,322,737 | 2,759,908 | |||||||||||||||
| Contract transactions | ||||||||||||||||||||
| Contract purchase payments |
72,034 | 59,043 | 886,882 | 1,141,832 | 243,784 | |||||||||||||||
| Net transfers(1) |
(554,590 | ) | (666,880 | ) | (781,042 | ) | (3,822,876 | ) | (940,956 | ) | ||||||||||
| Transfers for policy loans |
12,919 | 10,317 | 94,112 | 180,415 | 44,662 | |||||||||||||||
| Adjustments to net assets allocated to contracts in payment period |
59,987 | (19,537 | ) | (686,918 | ) | (1,043,764 | ) | (121,635 | ) | |||||||||||
| Contract charges |
(12,276 | ) | (9,092 | ) | (170,977 | ) | (278,006 | ) | (35,728 | ) | ||||||||||
| Contract terminations: |
||||||||||||||||||||
| Surrender benefits |
(2,372,804 | ) | (1,956,684 | ) | (25,688,626 | ) | (37,602,215 | ) | (6,851,190 | ) | ||||||||||
| Death benefits |
(542,964 | ) | (300,701 | ) | (5,867,927 | ) | (7,453,444 | ) | (1,281,199 | ) | ||||||||||
| Increase (decrease) from transactions |
(3,337,694 | ) | (2,883,534 | ) | (32,214,496 | ) | (48,878,058 | ) | (8,942,262 | ) | ||||||||||
| Net assets at beginning of year |
30,707,237 | 22,492,802 | 311,179,630 | 469,831,827 | 82,468,862 | |||||||||||||||
| Net assets at end of year |
$ | 30,374,699 | $ | 20,249,218 | $ | 338,239,373 | $ | 524,276,506 | $ | 76,286,508 | ||||||||||
| Accumulation unit activity | ||||||||||||||||||||
| Units outstanding at beginning of year |
9,671,448 | 6,181,571 | 28,289,093 | 16,841,600 | 21,570,579 | |||||||||||||||
| Units purchased |
26,192 | 18,758 | 82,982 | 43,389 | 77,252 | |||||||||||||||
| Units redeemed |
(1,076,486 | ) | (803,497 | ) | (2,726,306 | ) | (1,589,871 | ) | (2,439,617 | ) | ||||||||||
| Units outstanding at end of year |
8,621,154 | 5,396,832 | 25,645,769 | 15,295,118 | 19,208,214 | |||||||||||||||
| (1) | Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account. |
See accompanying notes to financial statements.
| 16 | ∎ RIVERSOURCE ACCOUNT F | |
Table of Contents
Statements of Changes in Net Assets
| Year ended December 31, 2023 (continued) | Col VP Global Strategic Inc, |
Col VP Govt Money Mkt, |
Col VP Hi Yield Bond, |
Col VP Inter Bond, |
Col VP Lg Cap Gro, |
|||||||||||||||
| Operations | ||||||||||||||||||||
| Investment income (loss) — net |
$ | 110,418 | $ | 530,431 | $ | 758,139 | $ | 793,310 | $ | (315,515 | ) | |||||||||
| Net realized gain (loss) on sales of investments |
(225,736 | ) | 74 | (302,786 | ) | (1,870,970 | ) | 2,619,464 | ||||||||||||
| Distributions from capital gains |
— | — | — | — | — | |||||||||||||||
| Net change in unrealized appreciation (depreciation) of investments |
540,346 | (73 | ) | 1,357,078 | 4,381,104 | 8,390,915 | ||||||||||||||
| Net increase (decrease) in net assets resulting from operations |
425,028 | 530,432 | 1,812,431 | 3,303,444 | 10,694,864 | |||||||||||||||
| Contract transactions | ||||||||||||||||||||
| Contract purchase payments |
20,936 | 59,847 | 63,664 | 263,776 | 116,437 | |||||||||||||||
| Net transfers(1) |
184,361 | 2,991,328 | 218,720 | 1,900,875 | 412,799 | |||||||||||||||
| Transfers for policy loans |
2,536 | 10,305 | 1,222 | 10,065 | 19,805 | |||||||||||||||
| Adjustments to net assets allocated to contracts in payment period |
(8,007 | ) | (15,411 | ) | (39,535 | ) | (103,818 | ) | 29,045 | |||||||||||
| Contract charges |
(2,612 | ) | (9,284 | ) | (8,038 | ) | (42,562 | ) | (12,241 | ) | ||||||||||
| Contract terminations: |
||||||||||||||||||||
| Surrender benefits |
(472,437 | ) | (3,002,779 | ) | (1,987,022 | ) | (5,389,403 | ) | (2,746,701 | ) | ||||||||||
| Death benefits |
(153,306 | ) | (68,844 | ) | (392,952 | ) | (1,732,960 | ) | (399,876 | ) | ||||||||||
| Increase (decrease) from transactions |
(428,529 | ) | (34,838 | ) | (2,143,941 | ) | (5,094,027 | ) | (2,580,732 | ) | ||||||||||
| Net assets at beginning of year |
5,120,872 | 15,181,878 | 17,775,277 | 68,221,799 | 26,733,789 | |||||||||||||||
| Net assets at end of year |
$ | 5,117,371 | $ | 15,677,472 | $ | 17,443,767 | $ | 66,431,216 | $ | 34,847,921 | ||||||||||
| Accumulation unit activity | ||||||||||||||||||||
| Units outstanding at beginning of year |
3,044,219 | 5,261,156 | 5,548,691 | 7,209,989 | 9,949,440 | |||||||||||||||
| Units purchased |
120,791 | 1,043,968 | 84,681 | 229,693 | 161,567 | |||||||||||||||
| Units redeemed |
(363,954 | ) | (1,053,820 | ) | (725,379 | ) | (757,352 | ) | (968,798 | ) | ||||||||||
| Units outstanding at end of year |
2,801,056 | 5,251,304 | 4,907,993 | 6,682,330 | 9,142,209 | |||||||||||||||
| (1) | Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account. |
See accompanying notes to financial statements.
| RIVERSOURCE ACCOUNT F ∎ | 17 | |||
Table of Contents
Statements of Changes in Net Assets
| Year ended December 31, 2023 (continued) | Col VP Overseas Core, Cl 3 |
Col VP Select Mid Cap Gro, Cl 3 |
||||||
| Operations | ||||||||
| Investment income (loss) — net |
$ | 641,453 | $ | (1,346,165 | ) | |||
| Net realized gain (loss) on sales of investments |
946,999 | 9,875,641 | ||||||
| Distributions from capital gains |
— | — | ||||||
| Net change in unrealized appreciation (depreciation) of investments |
8,767,315 | 19,847,902 | ||||||
| Net increase (decrease) in net assets resulting from operations |
10,355,767 | 28,377,378 | ||||||
| Contract transactions | ||||||||
| Contract purchase payments |
420,407 | 503,921 | ||||||
| Net transfers(1) |
(676,317 | ) | (1,319,413 | ) | ||||
| Transfers for policy loans |
51,657 | 79,478 | ||||||
| Adjustments to net assets allocated to contracts in payment period |
(82,780 | ) | (180,353 | ) | ||||
| Contract charges |
(48,173 | ) | (79,498 | ) | ||||
| Contract terminations: |
||||||||
| Surrender benefits |
(5,836,634 | ) | (9,886,633 | ) | ||||
| Death benefits |
(1,191,464 | ) | (1,555,992 | ) | ||||
| Increase (decrease) from transactions |
(7,363,304 | ) | (12,438,490 | ) | ||||
| Net assets at beginning of year |
76,013,861 | 124,228,024 | ||||||
| Net assets at end of year |
$ | 79,006,324 | $ | 140,166,912 | ||||
| Accumulation unit activity | ||||||||
| Units outstanding at beginning of year |
27,002,506 | 38,094,490 | ||||||
| Units purchased |
158,168 | 161,697 | ||||||
| Units redeemed |
(2,603,716 | ) | (3,534,475 | ) | ||||
| Units outstanding at end of year |
24,556,958 | 34,721,712 | ||||||
| (1) | Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life’s fixed account. |
See accompanying notes to financial statements.
| 18 | ∎ RIVERSOURCE ACCOUNT F | |
Table of Contents
Notes to Financial Statements
1. ORGANIZATION
RiverSource Account F (the Account) was established under Minnesota law as a segregated asset account of RiverSource Life Insurance Company (RiverSource Life). The Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended (the 1940 Act) and exists in accordance with the rules and regulations of the Insurance Division, Department of Commerce of the State of Minnesota.
The Account is used as a funding vehicle for individual variable annuity contracts issued by RiverSource Life. The following is a list of each variable annuity product funded through the Account.
RiverSource® Employee Benefit Annuity*
RiverSource® Flexible Annuity
RiverSource® Group Variable Annuity Contract
RiverSource® Variable Retirement and Combination Retirement Annuities
| * | New contracts are no longer being issued for this product. As a result, an annual contract prospectus and statement of additional information are no longer distributed. An annual report for this product is distributed to all current contract holders. |
The Account is comprised of various divisions. Each division invests exclusively in shares of the following funds or portfolios (collectively, the Funds), which are registered under the 1940 Act as open-end management investment companies. The name of each Fund and the corresponding division name are provided below. Each division is comprised of subaccounts. Individual variable annuity accounts invest in subaccounts. For each division, the financial statements are comprised of a statement of assets and liabilities as of December 31, 2024, a related statement of operations for the year then ended and statements of changes in net assets for each of the two years in the period then ended, all presented to reflect a full twelve month period.
| Division | Fund | |
| AB VPS Relative Val, Cl B |
AB VPS Relative Value Portfolio (Class B) | |
| Allspg VT Sm Cap Gro, Cl 2 |
Allspring VT Small Cap Growth Fund – Class 2 | |
| Col VP Bal, Cl 3 |
Columbia Variable Portfolio – Balanced Fund (Class 3) | |
| Col VP Disciplined Core, Cl 3 |
Columbia Variable Portfolio – Disciplined Core Fund (Class 3) | |
| Col VP Divd Opp, Cl 3 |
Columbia Variable Portfolio – Dividend Opportunity Fund (Class 3) | |
| Col VP Global Strategic Inc, Cl 3 |
Columbia Variable Portfolio – Global Strategic Income Fund (Class 3) | |
| (renamed to Columbia Variable Portfolio – Corporate Bond Fund (Class 3) effective sometime during the second quarter of 2025) | ||
| Col VP Govt Money Mkt, Cl 3 |
Columbia Variable Portfolio – Government Money Market Fund (Class 3) | |
| Col VP Hi Yield Bond, Cl 3 |
Columbia Variable Portfolio – High Yield Bond Fund (Class 3) | |
| Col VP Inter Bond, Cl 3 |
Columbia Variable Portfolio – Intermediate Bond Fund (Class 3) | |
| Col VP Lg Cap Gro, Cl 3 |
Columbia Variable Portfolio – Large Cap Growth Fund (Class 3) | |
| Col VP Overseas Core, Cl 3 |
Columbia Variable Portfolio – Overseas Core Fund (Class 3) | |
| Col VP Select Mid Cap Gro, Cl 3 |
Columbia Variable Portfolio – Select Mid Cap Growth Fund (Class 3) |
The assets of each division of the Account are not chargeable with liabilities arising out of the business conducted by any other segregated asset account or by RiverSource Life.
RiverSource Life serves as issuer of the contracts.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Investments in the Funds
Investment transactions are accounted for on the trade date the shares are purchased and sold. Realized gains and losses on the sales of investments are computed using the average cost method. Income from dividends and gains from realized capital gain distributions are reinvested in additional shares of the Funds and are recorded as income by the divisions on the ex-dividend date.
Unrealized appreciation or depreciation of investments in the accompanying financial statements represents the division’s share of the Funds’ undistributed net investment income, undistributed realized gain or loss and the unrealized appreciation or depreciation on their investment securities.
The Account categorizes its fair value measurements according to a three-level hierarchy. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the fair value measurement. The three levels of the fair value hierarchy are defined as follows:
Level 1 – Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date.
| RIVERSOURCE ACCOUNT F ∎ | 19 | |||
Table of Contents
Level 2 – Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities.
Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.
The Funds in the Accounts have been measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and are therefore not categorized in the fair value hierarchy. There were no transfers between levels in the period ended December 31, 2024.
Variable Payout
Net assets allocated to contracts in the payout period are periodically compared to a computation which uses the Annuity 2000 Basic Mortality Table and which assumes future mortality improvement. The assumed investment return is 3.5% or 5% based on the annuitant’s election, or as regulated by the laws of the respective states. The mortality risk is fully borne by RiverSource Life and may result in additional amounts being transferred into the variable annuity account by RiverSource Life to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the insurance company.
Federal Income Taxes
RiverSource Life is taxed as a life insurance company. The Account is treated as part of RiverSource Life for federal income tax purposes. Under existing federal income tax law, no income taxes are payable with respect to any investment income of the Account to the extent the earnings are credited under the contracts. Based on this, no charge is being made currently to the Account for federal income taxes. RiverSource Life will review periodically the status of this policy. In the event of changes in the tax law, a charge may be made in future years for any federal income taxes that would be attributable to the contracts.
Subsequent Events
Management has evaluated Account related events and transactions that occurred through the date the financial statements were issued. Management noted there were no items requiring adjustments or additional disclosures in the Account’s financial statements.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates.
Segment Reporting
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Improvements to Reportable Segment Disclosures, updating reportable segment disclosure requirements in accordance with Topic 280, Segment Reporting (“Topic 280”), primarily through enhanced disclosures about significant segment expenses. The amendments also expand Topic 280 disclosures to public entities with one reportable segment. The amendments are effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The standard was adopted on January 1, 2024. The adoption of the standard did not have an impact on the statement of assets and liabilities, the statement of operations or the statement of changes in net assets, as the standard is disclosure-related only.
The Chairman and President of RiverSource Life Insurance Company acts as the Account’s chief operating decision maker (“CODM”) in assessing performance and making decisions about resource allocation. The CODM has determined that the Account has a single operating segment because the CODM monitors net income, investment performance and overall operating results of the Account as a whole in making decisions about resource allocation. The financial information provided to and reviewed by the CODM is consistent with that presented within the Account’s financial statements.
3. VARIABLE ACCOUNT EXPENSES
RiverSource Life deducts a daily mortality and expense risk fee equal, on an annual basis, to 1.00% of the average daily net assets of each subaccount.
4. CONTRACT CHARGES
RiverSource Life deducts a contract administrative charge of $20 to $500 per year on the contract anniversary depending upon the product selected. This charge reimburses RiverSource Life for expenses incurred in establishing and maintaining the annuity records. Certain products may waive this charge based upon the underlying contract value.
5. SURRENDER (WITHDRAWAL) CHARGES
RiverSource Life may assess a surrender (withdrawal) charge to help it recover certain expenses related to the sale of the annuity. Such charges are not treated as a separate expense of the divisions as they are ultimately deducted from contract surrender benefits paid by RiverSource Life. Charges by RiverSource Life for surrenders are not identified on an individual division basis.
| 20 | ∎ RIVERSOURCE ACCOUNT F | |
Table of Contents
6. RELATED PARTY TRANSACTIONS
RiverSource Life is a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial).
The following table reflects fees paid by certain affiliated funds to Ameriprise Financial and its affiliates.
| Fee Agreement: | Fees Paid To: | |
| Management Agreement |
Columbia Management Investment Advisers, LLC | |
| Shareholder Services Agreement |
Columbia Management Investment Services Corp. | |
| Plan and Agreement of Distribution |
Columbia Management Investment Distributors, Inc. | |
| Investment Advisory Agreement |
Columbia Wanger Asset Management, LLC | |
| Administrative Services Agreement |
Columbia Wanger Asset Management, LLC |
7. INVESTMENT TRANSACTIONS
The divisions’ purchases of Funds’ shares, including reinvestment of dividend distributions, for the year ended December 31, 2024 were as follows:
| Division | Purchases | |||
| AB VPS Relative Val, Cl B |
$ | 1,522,162 | ||
| Allspg VT Sm Cap Gro, Cl 2 |
54,820 | |||
| Col VP Bal, Cl 3 |
705,284 | |||
| Col VP Disciplined Core, Cl 3 |
99,961 | |||
| Col VP Divd Opp, Cl 3 |
161,656 | |||
| Col VP Global Strategic Inc, Cl 3 |
335,208 | |||
| Col VP Govt Money Mkt, Cl 3 |
3,234,338 | |||
| Col VP Hi Yield Bond, Cl 3 |
1,161,571 | |||
| Col VP Inter Bond, Cl 3 |
4,514,239 | |||
| Col VP Lg Cap Gro, Cl 3 |
940,161 | |||
| Col VP Overseas Core, Cl 3 |
3,435,710 | |||
| Col VP Select Mid Cap Gro, Cl 3 |
381,619 | |||
8. FINANCIAL HIGHLIGHTS
The table below shows certain financial information regarding the divisions.
| At December 31 | For the year ended December 31 | |||||||||||||||||||||||||||
| Units (000s) |
Accumulation unit value | Net assets (000s) |
Investment income ratio(1) |
Expense ratio(2) | Total return(3) | |||||||||||||||||||||||
| AB VPS Relative Val, Cl B |
||||||||||||||||||||||||||||
| 2024 |
7,587 | $3.89 | $29,842 | 1.25 | % | 1.00 | % | 11.64 | % | |||||||||||||||||||
| 2023 |
8,621 | $3.48 | $30,375 | 1.28 | % | 1.00 | % | 10.61 | % | |||||||||||||||||||
| 2022 |
9,671 | $3.15 | $30,707 | 1.10 | % | 1.00 | % | (5.37 | %) | |||||||||||||||||||
| 2021 |
10,392 | $3.33 | $34,849 | 0.64 | % | 1.00 | % | 26.57 | % | |||||||||||||||||||
| 2020 |
11,312 | $2.63 | $30,045 | 1.32 | % | 1.00 | % | 1.45 | % | |||||||||||||||||||
| Allspg VT Sm Cap Gro, Cl 2 |
|
|||||||||||||||||||||||||||
| 2024 |
4,707 | $4.37 | $20,663 | — | 1.00 | % | 17.52 | % | ||||||||||||||||||||
| 2023 |
5,397 | $3.72 | $20,249 | — | 1.00 | % | 3.07 | % | ||||||||||||||||||||
| 2022 |
6,182 | $3.60 | $22,493 | — | 1.00 | % | (35.07 | %) | ||||||||||||||||||||
| 2021 |
6,850 | $5.55 | $38,389 | — | 1.00 | % | 6.57 | % | ||||||||||||||||||||
| 2020 |
7,653 | $5.21 | $40,241 | — | 1.00 | % | 56.22 | % | ||||||||||||||||||||
| Col VP Bal, Cl 3 |
||||||||||||||||||||||||||||
| 2024 |
22,948 | $14.79 | $342,359 | — | 1.00 | % | 13.29 | % | ||||||||||||||||||||
| 2023 |
25,646 | $13.06 | $338,239 | — | 1.00 | % | 20.03 | % | ||||||||||||||||||||
| 2022 |
28,289 | $10.88 | $311,180 | — | 1.00 | % | (17.57 | %) | ||||||||||||||||||||
| 2021 |
30,985 | $13.20 | $413,806 | — | 1.00 | % | 13.59 | % | ||||||||||||||||||||
| 2020 |
33,583 | $11.62 | $395,235 | — | 1.00 | % | 16.42 | % | ||||||||||||||||||||
| Col VP Disciplined Core, Cl 3 |
|
|||||||||||||||||||||||||||
| 2024 |
13,590 | $42.27 | $579,899 | — | 1.00 | % | 24.64 | % | ||||||||||||||||||||
| 2023 |
15,295 | $33.92 | $524,277 | — | 1.00 | % | 23.00 | % | ||||||||||||||||||||
| 2022 |
16,842 | $27.58 | $469,832 | — | 1.00 | % | (19.64 | %) | ||||||||||||||||||||
| 2021 |
18,248 | $34.31 | $633,914 | — | 1.00 | % | 31.25 | % | ||||||||||||||||||||
| 2020 |
19,999 | $26.14 | $529,834 | — | 1.00 | % | 12.85 | % | ||||||||||||||||||||
| RIVERSOURCE ACCOUNT F ∎ | 21 | |||
Table of Contents
| At December 31 | For the year ended December 31 | |||||||||||||||||||||||||||
| Units (000s) |
Accumulation unit value | Net assets (000s) |
Investment income ratio(1) |
Expense ratio(2) | Total return(3) | |||||||||||||||||||||||
| Col VP Divd Opp, Cl 3 |
||||||||||||||||||||||||||||
| 2024 |
16,857 | $4.48 | $76,285 | — | 1.00 | % | 14.12 | % | ||||||||||||||||||||
| 2023 |
19,208 | $3.93 | $76,287 | — | 1.00 | % | 3.91 | % | ||||||||||||||||||||
| 2022 |
21,571 | $3.78 | $82,469 | — | 1.00 | % | (2.22 | %) | ||||||||||||||||||||
| 2021 |
22,524 | $3.87 | $88,324 | — | 1.00 | % | 24.76 | % | ||||||||||||||||||||
| 2020 |
24,809 | $3.10 | $78,135 | — | 1.00 | % | 0.02 | % | ||||||||||||||||||||
| Col VP Global Strategic Inc, Cl 3 |
||||||||||||||||||||||||||||
| 2024 |
2,488 | $1.86 | $4,641 | 3.34 | % | 1.00 | % | 2.22 | % | |||||||||||||||||||
| 2023 |
2,801 | $1.82 | $5,117 | 3.20 | % | 1.00 | % | 8.72 | % | |||||||||||||||||||
| 2022 |
3,044 | $1.67 | $5,121 | 3.37 | % | 1.00 | % | (14.46 | %) | |||||||||||||||||||
| 2021 |
3,324 | $1.95 | $6,544 | 3.95 | % | 1.00 | % | 0.14 | % | |||||||||||||||||||
| 2020 |
3,699 | $1.95 | $7,277 | 5.12 | % | 1.00 | % | 3.64 | % | |||||||||||||||||||
| Col VP Govt Money Mkt, Cl 3 |
||||||||||||||||||||||||||||
| 2024 |
4,840 | $3.09 | $14,990 | 4.73 | % | 1.00 | % | 3.82 | % | |||||||||||||||||||
| 2023 |
5,251 | $2.98 | $15,677 | 4.51 | % | 1.00 | % | 3.56 | % | |||||||||||||||||||
| 2022 |
5,261 | $2.87 | $15,182 | 1.26 | % | 1.00 | % | 0.16 | % | |||||||||||||||||||
| 2021 |
4,029 | $2.87 | $11,642 | 0.01 | % | 1.00 | % | (0.97 | %) | |||||||||||||||||||
| 2020 |
4,260 | $2.90 | $12,404 | 0.20 | % | 1.00 | % | (0.72 | %) | |||||||||||||||||||
| Col VP Hi Yield Bond, Cl 3 |
||||||||||||||||||||||||||||
| 2024 |
4,057 | $3.70 | $15,277 | 5.77 | % | 1.00 | % | 5.88 | % | |||||||||||||||||||
| 2023 |
4,908 | $3.50 | $17,444 | 5.36 | % | 1.00 | % | 10.97 | % | |||||||||||||||||||
| 2022 |
5,549 | $3.15 | $17,775 | 5.12 | % | 1.00 | % | (11.59 | %) | |||||||||||||||||||
| 2021 |
6,161 | $3.56 | $22,339 | 4.95 | % | 1.00 | % | 3.82 | % | |||||||||||||||||||
| 2020 |
6,639 | $3.43 | $23,317 | 5.66 | % | 1.00 | % | 5.49 | % | |||||||||||||||||||
| Col VP Inter Bond, Cl 3 |
||||||||||||||||||||||||||||
| 2024 |
6,201 | $9.92 | $61,978 | 4.65 | % | 1.00 | % | 0.83 | % | |||||||||||||||||||
| 2023 |
6,682 | $9.84 | $66,431 | 2.20 | % | 1.00 | % | 5.14 | % | |||||||||||||||||||
| 2022 |
7,210 | $9.36 | $68,222 | 3.08 | % | 1.00 | % | (17.99 | %) | |||||||||||||||||||
| 2021 |
7,899 | $11.41 | $91,208 | 3.16 | % | 1.00 | % | (1.34 | %) | |||||||||||||||||||
| 2020 |
8,589 | $11.56 | $100,587 | 2.76 | % | 1.00 | % | 11.33 | % | |||||||||||||||||||
| Col VP Lg Cap Gro, Cl 3 |
||||||||||||||||||||||||||||
| 2024 |
8,130 | $4.86 | $40,214 | — | 1.00 | % | 29.88 | % | ||||||||||||||||||||
| 2023 |
9,142 | $3.74 | $34,848 | — | 1.00 | % | 41.53 | % | ||||||||||||||||||||
| 2022 |
9,949 | $2.65 | $26,734 | — | 1.00 | % | (32.13 | %) | ||||||||||||||||||||
| 2021 |
11,162 | $3.90 | $44,253 | — | 1.00 | % | 27.26 | % | ||||||||||||||||||||
| 2020 |
12,123 | $3.06 | $37,810 | — | 1.00 | % | 33.23 | % | ||||||||||||||||||||
| Col VP Overseas Core, Cl 3 |
||||||||||||||||||||||||||||
| 2024 |
21,813 | $3.27 | $71,794 | 4.31 | % | 1.00 | % | 2.31 | % | |||||||||||||||||||
| 2023 |
24,557 | $3.19 | $79,006 | 1.83 | % | 1.00 | % | 14.32 | % | |||||||||||||||||||
| 2022 |
27,003 | $2.79 | $76,014 | 0.80 | % | 1.00 | % | (15.65 | %) | |||||||||||||||||||
| 2021 |
29,545 | $3.31 | $98,637 | 1.18 | % | 1.00 | % | 8.79 | % | |||||||||||||||||||
| 2020 |
32,061 | $3.04 | $98,534 | 1.56 | % | 1.00 | % | 7.84 | % | |||||||||||||||||||
| Col VP Select Mid Cap Gro, Cl 3 |
||||||||||||||||||||||||||||
| 2024 |
30,585 | $4.89 | $150,782 | — | 1.00 | % | 22.29 | % | ||||||||||||||||||||
| 2023 |
34,722 | $4.00 | $140,167 | — | 1.00 | % | 23.84 | % | ||||||||||||||||||||
| 2022 |
38,094 | $3.23 | $124,228 | — | 1.00 | % | (31.61 | %) | ||||||||||||||||||||
| 2021 |
41,373 | $4.72 | $197,564 | — | 1.00 | % | 15.25 | % | ||||||||||||||||||||
| 2020 |
45,504 | $4.10 | $188,621 | — | 1.00 | % | 33.89 | % | ||||||||||||||||||||
| (1) | These amounts represent the dividends, excluding distributions of capital gains, received by the division from the underlying fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude variable account expenses that result in direct reductions in the unit values. The recognition of investment income by the division is affected by the timing of the declaration of dividends by the underlying fund in which the division invests. These ratios are annualized for periods less than one year. |
| (2) | These ratios represent the annualized contract expenses of the separate account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund are excluded. |
| (3) | These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. |
| 22 | ∎ RIVERSOURCE ACCOUNT F | |
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
TO THE BOARD OF DIRECTORS AND SHAREHOLDER OF
RIVERSOURCE LIFE INSURANCE COMPANY
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of RiverSource Life Insurance Company and its subsidiaries (the “Company”) as of December 31, 2024 and 2023, and the related consolidated statements of income, of comprehensive income, of shareholder’s equity and of cash flows for each of the three years in the period ended December 31, 2024, including the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
F-23
Table of Contents
Valuation of market risk benefits
As described in Notes 2 and 12 to the consolidated financial statements, market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Market risk benefits include certain contract features on variable annuity products that provide minimum guarantees to contractholders. Market risk benefits are measured at fair value, at the individual contract level, using a non-option-based valuation approach or an option-based valuation approach, dependent upon the fee structure of the contract. The significant assumptions used by management to develop the fair value measurements of market risk benefits include utilization of guaranteed withdrawals, surrender rate, market volatility, nonperformance risk and mortality rate. As of December 31, 2024, the market risk benefits asset was $2,182 million and the market risk benefits liability was $1,263 million.
The principal considerations for our determination that performing procedures relating to the valuation of market risk benefits is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the market risk benefits, (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence related to management’s significant assumptions related to utilization of guaranteed withdrawals, surrender rate, market volatility, nonperformance risk and mortality rate (collectively, the significant market risk benefit assumptions), and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to market risk benefits, including controls over the reasonableness of the significant market risk benefit assumptions. These procedures also included, among others, (i) evaluating management’s process for developing the fair value estimate of the market risk benefits, (ii) testing, on a sample basis, the completeness and accuracy of data used in the estimate, and (iii) the involvement of professionals with specialized skill and knowledge to assist in evaluating the reasonableness of the significant market risk benefit assumptions based on industry knowledge and data as well as historical Company data and experience, and the continued appropriateness of unchanged assumptions.
/s/ PricewaterhouseCoopers LLP
Minneapolis, Minnesota
February 20, 2025
We have served as the Company’s auditor since 2010.
F-24
Table of Contents
RiverSource Life Insurance Company
CONSOLIDATED BALANCE SHEETS
(in millions, except share amounts)
| December 31, | 2024 | 2023 | ||||||
| Assets | ||||||||
| Investments: |
||||||||
| Available-for-Sale: |
||||||||
| Fixed maturities, at fair value (amortized cost: 2024, $23,127; 2023, $19,871; allowance for credit losses: 2024, $1; 2023, $2) |
$ | 22,259 | $ | 19,374 | ||||
| Mortgage loans, at amortized cost (allowance for credit losses: 2024, $10; 2023, $10) |
1,797 | 1,725 | ||||||
| Policy loans |
982 | 912 | ||||||
| Other investments (allowance for credit losses: 2024, nil; 2023, nil) |
115 | 165 | ||||||
| Total investments |
25,153 | 22,176 | ||||||
| Investments of consolidated investment entities, at fair value |
2,387 | 2,099 | ||||||
| Cash and cash equivalents |
2,483 | 2,598 | ||||||
| Cash of consolidated investment entities, at fair value |
373 | 87 | ||||||
| Market risk benefits |
2,182 | 1,427 | ||||||
| Reinsurance recoverables (allowance for credit losses: 2024, $20; 2023, $27) |
4,046 | 4,284 | ||||||
| Receivables |
6,042 | 6,702 | ||||||
| Receivables of consolidated investment entities, at fair value |
31 | 28 | ||||||
| Accrued investment income |
216 | 176 | ||||||
| Deferred acquisition costs |
2,661 | 2,696 | ||||||
| Other assets |
10,482 | 6,977 | ||||||
| Other assets of consolidated investment entities, at fair value |
2 | 1 | ||||||
| Separate account assets |
75,576 | 74,634 | ||||||
| Total assets |
$ | 131,634 | $ | 123,885 | ||||
| Liabilities and Shareholder’s Equity | ||||||||
| Liabilities: |
||||||||
| Policyholder account balances, future policy benefits and claims |
$ | 41,863 | $ | 37,535 | ||||
| Market risk benefits |
1,263 | 1,762 | ||||||
| Short-term borrowings |
201 | 201 | ||||||
| Long-term debt |
500 | 500 | ||||||
| Debt of consolidated investment entities, at fair value |
2,429 | 2,155 | ||||||
| Other liabilities |
8,298 | 5,896 | ||||||
| Other liabilities of consolidated investment entities, at fair value |
314 | 45 | ||||||
| Separate account liabilities |
75,576 | 74,634 | ||||||
| Total liabilities |
130,444 | 122,728 | ||||||
| Shareholder’s equity: |
||||||||
| Common stock, $30 par value; 100,000 shares authorized, issued and outstanding |
3 | 3 | ||||||
| Additional paid-in capital |
2,466 | 2,466 | ||||||
| Accumulated deficit |
(400 | ) | (618 | ) | ||||
| Accumulated other comprehensive income (loss), net of tax |
(879 | ) | (694 | ) | ||||
| Total shareholder’s equity |
1,190 | 1,157 | ||||||
| Total liabilities and shareholder’s equity |
$ | 131,634 | $ | 123,885 | ||||
See Notes to Consolidated Financial Statements.
F-25
Table of Contents
RiverSource Life Insurance Company
CONSOLIDATED STATEMENTS OF INCOME
(in millions)
| Years Ended December 31, | 2024 | 2023 | 2022 | |||||||||
| Revenues | ||||||||||||
| Premiums |
$ | 472 | $ | 448 | $ | 306 | ||||||
| Net investment income |
1,546 | 1,304 | 827 | |||||||||
| Policy and contract charges |
2,060 | 2,020 | 2,078 | |||||||||
| Other revenues |
578 | 590 | 644 | |||||||||
| Net realized investment gains (losses) |
(81 | ) | (70 | ) | (100 | ) | ||||||
| Total revenues |
4,575 | 4,292 | 3,755 | |||||||||
| Benefits and expenses | ||||||||||||
| Benefits, claims, losses and settlement expenses |
1,299 | 1,348 | 236 | |||||||||
| Interest credited to fixed accounts |
616 | 654 | 665 | |||||||||
| Remeasurement (gains) losses of future policy benefit reserves |
(44 | ) | (20 | ) | 1 | |||||||
| Change in fair value of market risk benefits |
628 | 798 | 311 | |||||||||
| Amortization of deferred acquisition costs |
234 | 239 | 241 | |||||||||
| Interest and debt expense |
192 | 192 | 108 | |||||||||
| Other insurance and operating expenses |
729 | 697 | 682 | |||||||||
| Total benefits and expenses |
3,654 | 3,908 | 2,244 | |||||||||
| Pretax income (loss) |
921 | 384 | 1,511 | |||||||||
| Income tax provision (benefit) |
103 | (10 | ) | 209 | ||||||||
| Net income |
$ | 818 | $ | 394 | $ | 1,302 | ||||||
See Notes to Consolidated Financial Statements.
F-26
Table of Contents
RiverSource Life Insurance Company
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
| Years Ended December 31, | 2024 | 2023 | 2022 | |||||||||
| Net income |
$ | 818 | $ | 394 | $ | 1,302 | ||||||
| Other comprehensive income (loss), net of tax: |
||||||||||||
| Net unrealized gains (losses) on securities |
(276 | ) | 509 | (2,035 | ) | |||||||
| Effect of changes in discount rate assumptions on certain long-duration contracts |
153 | (54 | ) | 861 | ||||||||
| Effect of changes in instrument-specific credit risk on market risk benefits |
(62 | ) | (65 | ) | 407 | |||||||
| Total other comprehensive income (loss), net of tax |
(185 | ) | 390 | (767 | ) | |||||||
| Total comprehensive income (loss) |
$ | 633 | $ | 784 | $ | 535 | ||||||
See Notes to Consolidated Financial Statements.
F-27
Table of Contents
RiverSource Life Insurance Company
CONSOLIDATED STATEMENTS OF SHAREHOLDER’S EQUITY
(in millions)
| Common Shares |
Additional Paid-In Capital |
Retained Earnings (Deficit) |
Accumulated Other Comprehensive Income (Loss) |
Total | ||||||||||||||||
| Balances at January 1, 2022 |
$ | 3 | $ | 2,466 | $ | (1,114 | ) | $ | (317 | ) | $ | 1,038 | ||||||||
| Net income |
— | — | 1,302 | — | 1,302 | |||||||||||||||
| Other comprehensive loss, net of tax |
— | — | — | (767 | ) | (767 | ) | |||||||||||||
| Cash dividends to Ameriprise Financial, Inc. |
— | — | (600 | ) | — | (600 | ) | |||||||||||||
| Balances at December 31, 2022 |
3 | 2,466 | (412 | ) | (1,084 | ) | 973 | |||||||||||||
| Net income |
— | — | 394 | — | 394 | |||||||||||||||
| Other comprehensive income, net of tax |
— | — | — | 390 | 390 | |||||||||||||||
| Cash dividends to Ameriprise Financial, Inc. |
— | — | (600 | ) | — | (600 | ) | |||||||||||||
| Balances at December 31, 2023 |
3 | 2,466 | (618 | ) | (694 | ) | 1,157 | |||||||||||||
| Net income |
— | — | 818 | — | 818 | |||||||||||||||
| Other comprehensive loss, net of tax |
— | — | — | (185 | ) | (185 | ) | |||||||||||||
| Cash dividends to Ameriprise Financial, Inc. |
— | — | (600 | ) | — | (600 | ) | |||||||||||||
| Balances at December 31, 2024 |
$ | 3 | $ | 2,466 | $ | (400 | ) | $ | (879 | ) | $ | 1,190 | ||||||||
See Notes to Consolidated Financial Statements.
F-28
Table of Contents
RiverSource Life Insurance Company
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
| Years Ended December 31, | 2024 | 2023 | 2022 | |||||||||
| Cash Flows from Operating Activities | ||||||||||||
| Net income |
$ | 818 | $ | 394 | $ | 1,302 | ||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
||||||||||||
| Depreciation, amortization and accretion, net |
(195 | ) | (205 | ) | (201 | ) | ||||||
| Deferred income tax (benefit) expense |
404 | 100 | 154 | |||||||||
| Contractholder and policyholder charges, non-cash |
(407 | ) | (403 | ) | (395 | ) | ||||||
| Loss from equity method investments |
28 | 26 | 48 | |||||||||
| Net realized investment (gains) losses |
12 | 46 | (3 | ) | ||||||||
| Impairments and provision for loan losses |
(1 | ) | (20 | ) | 91 | |||||||
| Net losses (gains) of consolidated investment entities |
(13 | ) | 23 | 17 | ||||||||
| Changes in operating assets and liabilities: |
||||||||||||
| Deferred acquisition costs |
35 | 63 | 62 | |||||||||
| Policyholder account balances, future policy benefits and claims, and market risk benefits, net |
4,238 | 3,474 | 1,013 | |||||||||
| Derivatives, net of collateral |
(1,669 | ) | (666 | ) | 311 | |||||||
| Reinsurance recoverables |
89 | 100 | 84 | |||||||||
| Receivables |
291 | 333 | 279 | |||||||||
| Accrued investment income |
(40 | ) | (31 | ) | (21 | ) | ||||||
| Current income tax, net |
(15 | ) | (323 | ) | 72 | |||||||
| Other operating assets and liabilities of consolidated investment entities |
1 | (5 | ) | 2 | ||||||||
| Other, net |
92 | 134 | 136 | |||||||||
| Net cash provided by (used in) operating activities |
3,668 | 3,040 | 2,951 | |||||||||
| Cash Flows from Investing Activities | ||||||||||||
| Available-for-Sale securities: |
||||||||||||
| Proceeds from sales |
1,106 | 617 | 1,309 | |||||||||
| Maturities, sinking fund payments and calls |
1,775 | 963 | 1,563 | |||||||||
| Purchases |
(6,039 | ) | (4,187 | ) | (5,600 | ) | ||||||
| Proceeds from sales, maturities and repayments of mortgage loans |
123 | 118 | 141 | |||||||||
| Funding of mortgage loans |
(196 | ) | (74 | ) | (124 | ) | ||||||
| Proceeds from sales and collections of other investments |
34 | 29 | 24 | |||||||||
| Purchase of other investments |
(14 | ) | (15 | ) | (46 | ) | ||||||
| Purchase of investments by consolidated investment entities |
(1,125 | ) | (427 | ) | (961 | ) | ||||||
| Proceeds from sales, maturities and repayments of investments by consolidated investment entities |
1,117 | 643 | 615 | |||||||||
| Purchase of equipment and software |
(10 | ) | (10 | ) | (13 | ) | ||||||
| Change in policy loans, net |
(70 | ) | (65 | ) | (13 | ) | ||||||
| Cash paid for deposit receivable |
(33 | ) | (39 | ) | (45 | ) | ||||||
| Cash received for deposit receivable |
592 | 774 | 550 | |||||||||
| Advance on line of credit to Ameriprise Financial, Inc. |
(450 | ) | (850 | ) | (1,034 | ) | ||||||
| Repayment from Ameriprise Financial, Inc. on line of credit |
450 | 850 | 1,034 | |||||||||
| Cash paid for written options with deferred premiums |
(57 | ) | (59 | ) | (619 | ) | ||||||
| Cash received from written options with deferred premiums |
22 | 43 | 204 | |||||||||
| Other, net |
(1 | ) | 25 | 21 | ||||||||
| Net cash provided by (used in) investing activities |
(2,776 | ) | (1,664 | ) | (2,994 | ) | ||||||
| Cash Flows from Financing Activities | ||||||||||||
| Policyholder account balances: |
||||||||||||
| Deposits and other additions |
1,470 | 1,476 | 1,169 | |||||||||
| Net transfers from (to) separate accounts |
(176 | ) | (132 | ) | (162 | ) | ||||||
| Surrenders and other benefits |
(1,765 | ) | (2,102 | ) | (1,459 | ) | ||||||
| Proceeds from line of credit with Ameriprise Financial, Inc. |
3 | — | — | |||||||||
| Payments on line of credit with Ameriprise Financial, Inc. |
(3 | ) | — | — | ||||||||
| Cash paid for purchased options with deferred premiums |
(148 | ) | (53 | ) | (197 | ) | ||||||
| Cash received for purchased options with deferred premiums |
229 | 251 | 378 | |||||||||
| Borrowings by consolidated investment entities |
1,273 | — | 341 | |||||||||
| Repayments of debt by consolidated investment entities |
(1,004 | ) | (275 | ) | (4 | ) | ||||||
| Cash dividends to Ameriprise Financial, Inc. |
(600 | ) | (600 | ) | (600 | ) | ||||||
| Net cash provided by (used in) financing activities |
(721 | ) | (1,435 | ) | (534 | ) | ||||||
| Net increase (decrease) in cash and cash equivalents |
171 | (59 | ) | (577 | ) | |||||||
| Cash and cash equivalents at beginning of period |
2,685 | 2,744 | 3,321 | |||||||||
| Cash and cash equivalents at end of period |
$ | 2,856 | $ | 2,685 | $ | 2,744 | ||||||
| Supplemental Disclosures: |
||||||||||||
| Income taxes paid (received), net |
$ | (286 | ) | $ | 215 | $ | (17 | ) | ||||
| Interest paid excluding consolidated investment entities |
38 | 28 | 3 | |||||||||
| Interest paid by consolidated investment entities |
176 | 177 | 75 | |||||||||
See Notes to Consolidated Financial Statements.
F-29
Table of Contents
RiverSource Life Insurance Company
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. NATURE OF BUSINESS AND BASIS OF PRESENTATION
RiverSource Life Insurance Company is a stock life insurance company with one wholly owned stock life insurance company subsidiary, RiverSource Life Insurance Co. of New York (“RiverSource Life of NY”). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. (“Ameriprise Financial”).
| • | RiverSource Life Insurance Company is domiciled in Minnesota and holds Certificates of Authority in American Samoa, the District of Columbia and all states except New York. RiverSource Life Insurance Company issues insurance and annuity products. |
| • | RiverSource Life of NY is domiciled and holds a Certificate of Authority in New York. RiverSource Life of NY issues insurance and annuity products. |
RiverSource Life Insurance Company also wholly owns RiverSource Tax Advantaged Investments, Inc. (“RTA”) and Columbia Cent CLO Advisors, LLC (“Columbia Cent”). RTA is a stock company domiciled in Delaware and is a limited partner in affordable housing partnership investments. Columbia Cent provides asset management services to collateralized loan obligations (“CLOs”).
The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and companies in which it directly or indirectly has a controlling financial interest and variable interest entities (“VIEs”) in which it is the primary beneficiary (collectively, the “Company”). All intercompany transactions and balances have been eliminated in consolidation.
The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) which vary in certain respects from reporting practices prescribed or permitted by state insurance regulatory authorities as described in Note 16.
The Company evaluated events or transactions that occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. No subsequent events or transactions requiring recognition or disclosure were identified.
The Company’s operations constitute a single operating segment, and therefore a single reportable segment, as the chief operating decision maker (“CODM”) manages the business activities using information of the Company as a whole. As its CODM, the Company’s Chairman and President utilizes the Consolidated Statements of Income and its net income metric to allocate resources and assess performance of the Company. The accounting policies used to measure the profit and loss of the segment are the same as those described in Note 2.
The Company’s principal products are variable annuities, structured variable annuities, universal life (“UL”) insurance, including indexed universal life (“IUL”) and variable universal life (“VUL”) insurance, which are issued primarily to individuals. Waiver of premium and accidental death benefit riders are generally available with UL products, in addition to other benefit riders.
Variable annuity contract purchasers can choose to add an optional guaranteed minimum death benefit (“GMDB”) rider to their contract.
The Company also offers payout annuities, term life insurance and disability income (“DI”) insurance.
The Company’s business is sold through the advisor network of Ameriprise Financial Services, LLC (“AFS”), a subsidiary of Ameriprise Financial. RiverSource Distributors, Inc., a subsidiary of Ameriprise Financial, serves as the principal underwriter and distributor of variable annuity and life insurance products issued by the Company.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity’s losses, or the rights to receive the entity’s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities.
Voting interest entities (“VOEs”) are those entities that do not qualify as a VIE. The Company consolidates VOEs in which it holds a greater than 50% voting interest. The Company generally accounts for entities using the equity method when it holds a greater than 20% but less than 50% voting interest or when the Company exercises significant influence over the entity. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for using the measurement alternative method when the Company owns less than a 20% voting interest and does not exercise significant influence. Under the measurement alternative, the investment is recorded at the cost basis, less impairments, if any, plus or minus observable price changes of identical or similar investments of the same issuer.
F-30
Table of Contents
RiverSource Life Insurance Company
A VIE is consolidated by the reporting entity that determines it has both:
| • | the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and |
| • | the obligation to absorb potentially significant losses or the right to receive potentially significant benefits to the VIE. |
All VIEs are assessed for consolidation under this framework. When evaluating entities for consolidation, the Company considers its contractual rights in determining whether it has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. In determining whether the Company has this power, it considers whether it is acting in a role that enables it to direct the activities that most significantly impact the economic performance of an entity or if it is acting in an agent role.
In determining whether the Company has the obligation to absorb potential significant losses of the VIE or the right to receive potential significant benefits from the VIE that could potentially be significant to the VIE, the Company considers an analysis of its rights to receive benefits such as investment returns and its obligation to absorb losses associated with any investment in the VIE in conjunction with other qualitative factors. Management and incentive fees that are at market and commensurate with the level of services provided, and where the Company does not hold other interests in the VIE that would absorb more than an insignificant amount of the VIE’s expected losses or receive more than an insignificant amount of the VIE’s expected residual returns, are not considered a variable interest and are excluded from the analysis.
The consolidation guidance has a scope exception for reporting entities with interests in registered money market funds which do not have an explicit support agreement.
Amounts Based on Estimates and Assumptions
Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and the recognition of credit losses or impairments, valuation of derivative instruments, litigation reserves, future policy benefits, market risk benefits, and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ.
Investments
Available-for-Sale Securities
Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (loss) (“AOCI”), net of impacts to benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Consolidated Statements of Income upon disposition of the securities.
Available-for-Sale securities are impaired when the fair value of an investment is less than its amortized cost. When an Available-for-Sale security is impaired, the Company first assesses whether or not: (i) it has the intent to sell the security (i.e., made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions exist, the Company recognizes an impairment by reducing the book value of the security for the difference between the investment’s amortized cost and its fair value with a corresponding charge to earnings. Subsequent increases in the fair value of Available-for-Sale securities that occur in periods after a write-down has occurred are recorded as unrealized gains in other comprehensive income (loss) (“OCI”), while subsequent decreases in fair value would continue to be recorded as reductions of book value with a charge to earnings.
For securities that do not meet the above criteria, the Company determines whether the decrease in fair value is due to a credit loss or due to other factors. The amount of impairment due to credit-related factors, if any, is recognized as an allowance for credit losses with a related charge to Net realized investment gains (losses). The allowance for credit losses is limited to the amount by which the security’s amortized cost basis exceeds its fair value. The amount of the impairment related to other factors is recognized in OCI.
Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are due to credit- related factors include: (i) the extent to which the market value is below amortized cost; (ii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iii) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors.
If through subsequent evaluation there is a sustained increase in cash flows expected, both the allowance and related charge to earnings may be reversed to reflect the increase in expected principal and interest payments.
In order to determine the amount of the credit loss component for corporate debt securities, a best estimate of the present value of cash flows expected to be collected discounted at the security’s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company’s position in the debtor’s overall capital structure. When assessing potential credit- related impairments for structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers credit-related factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections.
F-31
Table of Contents
RiverSource Life Insurance Company
Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for Available-for-Sale securities. Accrued interest on Available-for-Sale securities is recorded as earned in Accrued investment income. Available-for- Sale securities are generally placed on nonaccrual status when the accrued balance becomes 90 days past due or earlier based on management’s evaluation of the facts and circumstances of each security under review. All previously accrued interest is reversed through Net investment income.
Other Investments
Other investments primarily reflect the Company’s interests in affordable housing partnerships and syndicated loans. Affordable housing partnerships are accounted for under the equity method.
Financing Receivables
Financing receivables are comprised of commercial loans, policy loans, and deposit receivables.
Commercial Loans
Commercial loans include commercial mortgage loans and syndicated loans and are recorded at amortized cost less the allowance for credit losses. Commercial mortgage loans are recorded within Mortgage loans and syndicated loans are recorded within Other investments. Commercial mortgage loans are loans on commercial properties that are originated by the Company. Syndicated loans represent the Company’s investment in loan syndications originated by unrelated third parties.
Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on commercial mortgage loans and syndicated loans is recorded in Net investment income.
Policy Loans
Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses.
Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on policy loans is recorded in Net investment income.
Deposit Receivables
For each of its reinsurance agreements, the Company determines whether the agreement provides indemnification against loss or liability related to insurance risk in accordance with applicable accounting standards. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits made and any related embedded derivatives are included in Receivables. As amounts are received, consistent with the underlying contracts, deposit receivables are adjusted. Deposit receivables are accreted using the interest method and the accretion is reported in Other revenues.
See Note 7 for additional information on financing receivables.
Allowance for Credit Losses
The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected over the asset’s expected life, considering past events, current conditions and reasonable and supportable forecasts of future economic conditions. Estimates of expected credit losses consider both historical charge-off and recovery experience as well as current economic conditions and management’s expectation of future charge-off and recovery levels. Expected losses related to risks other than credit risk are excluded from the allowance for credit losses. The allowance for credit losses is measured and recorded upon initial recognition of the loan, regardless of whether it is originated or purchased. The methods and information used to develop the allowance for credit losses for each class of financing receivable are discussed below.
Commercial Loans
The allowance for credit losses for commercial mortgage loans and syndicated loans utilizes a probability of default and loss severity approach to estimate lifetime expected credit losses. Actual historical default and loss severity data for each type of commercial loan is adjusted for current conditions and reasonable and supportable forecasts of future economic conditions to develop the probability of default and loss severity assumptions that are applied to the amortized cost basis of the loans over the expected life of each portfolio. The allowance for credit losses on commercial mortgage loans and syndicated loans is recorded through provisions charged to Net realized investment gains (losses) and is reduced/increased by net charge-offs/recoveries.
Management determines the adequacy of the allowance for credit losses based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value (“LTV”) ratios, and occupancy rates, along with reasonable and supportable forecasts of economic and market conditions. This evaluation
is inherently subjective as it requires estimates, which may be susceptible to significant change. While the Company may attribute portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses expected over the life of the loan portfolio.
F-32
Table of Contents
RiverSource Life Insurance Company
Deposit Receivables
The allowance for credit losses is calculated on an individual reinsurer basis. Deposit receivables are collateralized by underlying trust arrangements. Management evaluates the terms of the reinsurance and trust agreements, the nature of the underlying assets, and the potential for changes in the collateral value when considering the need for an allowance for credit losses.
Nonaccrual Loans
Commercial mortgage loans and syndicated loans are placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal unless the remaining principal balance has been determined to be fully collectible. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for commercial mortgage loans and syndicated loans.
Loan Modifications
A loan is modified when the Company makes certain concessionary modifications to contractual terms such as principal forgiveness, interest rate reductions, other-than-insignificant payment delays, and/or term extensions in an attempt to make the loan more affordable to a borrower experiencing financial difficulties. Generally, performance prior to the modification or significant events that coincide with the modification are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the modification or after a performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status.
Charge-off and Foreclosure
Charge-offs are recorded when the Company concludes that all or a portion of the commercial mortgage loan or syndicated loan is uncollectible. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower’s estimated future ability to pay based on property type and geographic location. Factors used by the Company to determine whether all amounts due on syndicated loans will be collected, include but are not limited to the borrower’s financial condition, industry outlook, and internal risk ratings based on rating agency data and internal analyst expectations.
If it is determined that foreclosure on a commercial mortgage loan is probable and the fair value is less than the current loan balance, expected credit losses are measured as the difference between the amortized cost basis of the asset and fair value less estimated costs to sell, if applicable. Upon foreclosure, the commercial mortgage loan and related allowance are reversed, and the foreclosed property is recorded as real estate owned within Other assets.
Cash and Cash Equivalents
Cash equivalents include highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less.
Reinsurance
The Company cedes insurance risk to other insurers under reinsurance agreements.
Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums paid for traditional life, long term care (“LTC”) and DI insurance and life contingent payout annuities, net of the change in any prepaid reinsurance asset, are reported as a reduction of Premiums. Reinsurance recoveries are reported as components of Benefits, claims, losses and settlement expenses.
UL and VUL reinsurance premiums are reported as a reduction of Policy and contract charges. In addition, for UL and VUL insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is classified as an asset and amortized based on estimated gross profits (“EGPs”) over the period the reinsurance policies are in force. Changes in the net cost of reinsurance are reflected as a component of Policy and contract charges.
Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within Reinsurance recoverables, net of the allowance for credit losses. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. The allowance for credit losses related to reinsurance recoverable is based on applying observable industry data including insurer ratings, default and loss severity data to the Company’s reinsurance recoverable balances. Management evaluates the results of the calculation and considers differences between the industry data and the
F-33
Table of Contents
RiverSource Life Insurance Company
Company’s data. Such differences include that the Company has no actual history of significant losses and that industry data may contain non-life insurers. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change given the long-term nature of these receivables. In addition, the Company has a reinsurance protection agreement that provides credit protections for its reinsured LTC business. The allowance for credit losses on reinsurance recoverable is recorded through provisions charged to Benefits, claims, losses and settlement expenses.
The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within Policyholder account balances, future policy benefits and claims.
See Note 9 for additional information on reinsurance.
Land, Buildings, Equipment and Software
Land, buildings, equipment and internally developed software are carried at cost less accumulated depreciation or amortization and are reflected within Other assets. The Company uses the straight-line method of depreciation and amortization over periods ranging from three to 39 years.
As of December 31, 2024 and 2023, land, buildings, equipment and software were $113 million and $117 million, net of accumulated depreciation of $258 million and $244 million as of December 31, 2024 and 2023, respectively. Depreciation and amortization expense for the years ended December 31, 2024, 2023 and 2022 was $14 million, $15 million and $13 million, respectively.
Derivative Instruments and Hedging Activities
Freestanding derivative instruments are recorded at fair value and are reflected in Other assets or Other liabilities. The Company’s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments (“fair value hedges”) or (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedges”).
Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also documents its risk management objectives and strategies for entering into the hedge transactions. The Company assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting.
For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Income based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Income with the corresponding change in the hedged asset or liability.
For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item.
For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in AOCI and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of Net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in AOCI is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in AOCI are recognized in earnings immediately.
The equity component of indexed annuity, structured variable annuity and IUL obligations are considered embedded derivatives. Additionally, certain annuities contain guaranteed minimum accumulation benefits (“GMAB”) and guaranteed minimum withdrawal benefits (“GMWB”) provisions accounted for as market risk benefits.
F-34
Table of Contents
RiverSource Life Insurance Company
See Note 14 for information regarding the Company’s fair value measurement of derivative instruments and Note 18 for the impact of derivatives on the Consolidated Statements of Income.
Market Risk Benefits
Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Market risk benefits include certain contract features on variable annuity products that provide minimum guarantees to contractholders. Guarantees accounted for as market risk benefits include GMDB, guaranteed minimum income benefit (“GMIB”), GMWB and GMAB. If a contract contains multiple market risk benefits, those market risk benefits are bundled together as a single compound market risk benefit.
Market risk benefits are measured at fair value, at the individual contract level, using a non-option-based valuation approach or an option-based valuation approach dependent upon the fee structure of the contract. Changes in fair value are recognized in net income each period with the exception of the portion of the change in fair value due to a change in the instrument-specific credit risk, which is recognized in OCI.
Deferred Acquisition Costs
The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to Ameriprise Financial’s advisors and employees and third-party distributors is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The deferred acquisition costs (“DAC”) associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as write-offs. These transactions are anticipated in establishing amortization periods and other valuation assumptions.
The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, and variable annuity benefit utilization each quarter and, when assessed independently, each could impact the Company’s DAC balances. Unamortized DAC is reduced for actual experience in excess of expected experience.
The analysis of DAC balances and the corresponding amortization considers all relevant factors and assumptions described previously. Unless the Company’s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year.
DAC is amortized on a constant-level basis for the grouped contracts over the expected contract term to approximate straight-line amortization. Contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability for future policy benefits. DAC related to all long-duration product types (except for life contingent payout annuities) is grouped on a calendar-year annual basis for each legal entity. Further disaggregation is reported for any contracts that include an additional liability for death or other insurance benefit. DAC related to life contingent payout annuities is grouped on a calendar-year annual basis for each legal entity for policies issued prior to 2021 and on a quarterly basis for each legal entity thereafter.
DAC related to annuity products (including variable deferred annuities, structured variable annuities, fixed deferred annuities, and life contingent payout annuities) is amortized based on initial premium. DAC related to life insurance products (including UL insurance, VUL insurance, IUL insurance, term life insurance, and whole life insurance) is amortized based on original specified amount (i.e., face amount). DAC related to DI insurance is amortized based on original monthly benefit.
The accounting contract term for annuity products (except for life contingent payout annuities) is the projected accumulation period. Life contingent payout annuities are amortized over the period which annuity payments are expected to be paid. The accounting contract term for life insurance products is the projected life of the contract. DI insurance is amortized over the projected life of the contract, including the claim paying period.
Deferred Sales Inducement Costs
Deferred sales inducements are contract features that are intended to attract new customers or to persuade existing customers to keep their current policy. Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized on a constant level basis using the same methodology and assumptions used to amortize DAC. Deferred sales inducement costs (“DSIC”) is recorded in Other assets and amortization of DSIC is recorded in Benefits, claims, losses and settlement expenses.
F-35
Table of Contents
RiverSource Life Insurance Company
Separate Account Assets and Liabilities
Separate account assets represent funds held for the benefit of, and Separate account liabilities represent the obligation to, the variable annuity contractholders and variable life insurance policyholders who have a contractual right to receive the benefits of their contract or policy and bear the related investment risk. Gains and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Consolidated Statements of Income. Separate account assets are recorded at fair value and Separate account liabilities are equal to the assets recognized.
Policyholder Account Balances, Future Policy Benefits and Claims
The Company establishes reserves to cover the benefits associated with non-traditional and traditional long-duration products. Non-traditional long-duration products include variable and structured variable annuity contracts, fixed annuity contracts and UL and VUL policies. Traditional long-duration products include term life, whole life, DI and LTC insurance products and life contingent payout annuity products.
Non-Traditional Long-Duration Products
The liabilities for non-traditional long-duration products include fixed account values on variable and fixed annuities and UL and VUL policies, non-life contingent payout annuities, liabilities for guaranteed benefits associated with variable annuities (including structured variable annuities), and embedded derivatives for structured variable annuities, indexed annuities and IUL products.
Liabilities for fixed account values on variable annuities, structured variable annuities, fixed deferred annuities, and UL and VUL policies are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. The liability for non-life contingent payout annuities is recognized as the present value of future payments using the effective yield at inception of the contract.
A portion of the Company’s UL and VUL policies have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The liability for these future losses is determined at the reporting date by estimating the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 10 for information regarding the liability for contracts with secondary guarantees. Liabilities for fixed deferred indexed annuity, structured variable annuity and IUL products are equal to the accumulation of host contract values, guaranteed benefits, and the fair value of embedded derivatives.
See Note 12 for information regarding variable annuity guarantees.
Embedded Derivatives
The fair value of embedded derivatives related to structured variable annuities, indexed annuities and IUL fluctuate based on equity markets and interest rates and the estimate of the Company’s nonperformance risk and is recorded in Policyholder account balances, future policy benefits and claims. See Note 14 for information regarding the fair value measurement of embedded derivatives.
Traditional Long-Duration Products
The liabilities 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, LTC, and life contingent payout annuity policies as claims are incurred in the future. The claim liability (also referred to as disabled life reserve) is presented together as one liability for future policy benefits.
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%.
Assumptions utilized in the net premium approach, including mortality, morbidity, and terminations, are reviewed as part of experience studies at least annually or more frequently if suggested by evidence. Expense assumptions and actual expenses are updated within the net premium calculation consistent with other policyholder assumptions.
The updated cash flows used in the calculation are discounted using a forward rate curve. The discount rate represents an upper- medium-grade (i.e., low credit risk) fixed-income instrument yield (i.e., an A rating) that reflects the duration characteristics of the liability. Discount rates are locked in annually, at the end of each year for all products, except life contingent payout annuities, and calculated as the monthly average discount rate curves for the year. For life contingent payout annuities, the discount rates are locked in quarterly at the end of each quarter based on the average of the three months for the quarter.
F-36
Table of Contents
RiverSource Life Insurance Company
The liability for future policy benefits will be updated for actual experience at least on an annual basis and concurrent with changes to cash flow assumptions. When net premiums are updated for cash flow changes, the estimated cash flows over the entire life of a group of contracts are updated using historical experience and updated future cash flow assumptions.
The revised net premiums are used to calculate an updated liability for future policy benefits as of the beginning of the reporting period, discounted at the original locked in rate (i.e., contract issuance rate). The updated liability for future policy benefits as of the beginning of the reporting period is then compared with the carrying amount of the liability as of that date prior to updating cash flow assumptions to determine the current period remeasurement gain or loss reflected in current period earnings. The revised net premiums are then applied as of the beginning of the quarter to calculate the benefit expense for the current reporting period.
The difference between the updated carrying amount of the liability for future policy benefits measured using the current discount rate assumption and the original discount rate assumption is recognized in OCI. The interest accretion rate remains the original discount rate used at contract issue date.
If the updating of cash flow assumptions results in the present value of future benefits and expenses exceeding the present value of future gross premiums, a charge to net income is recorded for the current reporting period such that net premiums are set equal to gross premiums. In subsequent periods, the liability for future policy benefits is accrued with net premiums set equal to gross premiums.
Contracts (except for life contingent payout annuities sold subsequent to December 31, 2020) are grouped into cohorts by contract type and issue year, as well as by legal entity and reportable segment. Life contingent payout annuities sold in periods beginning in 2021 are grouped into quarterly cohorts.
See Note 10 for information regarding the liabilities for traditional long-duration products.
Deferred Profit Liability
For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability (“DPL”). Gross premiums are measured using assumptions consistent with those used in the measurement of the liability for future policy benefits, including discount rate, mortality, lapses and expenses.
The DPL is amortized and recognized as premium revenue in proportion to expected future benefit payments from annuity contracts. Interest is accreted on the balance of the DPL using the discount rate determined at contract issuance. The Company reviews and updates its estimate of cash flows from the DPL at the same time as the estimates of cash flows for the liability for future policy benefits. When cash flows are updated, the updated estimates are used to recalculate the DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of the DPL as of the beginning of the current reporting period, and any difference is recognized as either a charge or credit to premium revenue.
DPL is recorded in Policyholder account balances, future policy benefits and claims and included as a reconciling item within Note 10.
Unearned Revenue Liability
The Company’s UL and VUL policies require payment of fees or other policyholder assessments in advance for services to be provided in future periods. These charges are deferred as unearned revenue and amortized using the same assumptions and factors used to amortize DAC. The unearned revenue liability is recorded in Other liabilities and the amortization is recorded in Policy and contract charges.
Income Taxes
The Company qualifies as a life insurance company for federal income tax purposes. As such, the Company is subject to the Internal Revenue Code provisions applicable to life insurance companies.
The Company’s taxable income is included in the consolidated federal income tax return of Ameriprise Financial. The Company provides for income taxes on a separate return basis, except that, under an agreement between Ameriprise Financial and the Company, tax benefits are recognized for losses to the extent they can be used in the consolidated return. It is the policy of Ameriprise Financial that it will reimburse its subsidiaries for any tax benefits recorded. The controlled group for which the Company is a member is an applicable corporation with regard to the corporate alternative minimum tax (“CAMT”) and is therefore required to compute the CAMT. In accordance with the tax sharing agreement, Ameriprise Financial will be liable for any CAMT liability and expense.
The Company’s provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items.
F-37
Table of Contents
RiverSource Life Insurance Company
In connection with the provision for income taxes, the Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes.
The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. Management may need to identify and implement appropriate planning strategies to ensure its ability to realize deferred tax assets and reduce the likelihood of the establishment of a valuation allowance with respect to such assets. See Note 20 for additional information on the Company’s valuation allowance.
Changes in tax rates and tax law are accounted for in the period of enactment. Deferred tax assets and liabilities are adjusted for the effect of a change in tax laws or rates and the effect is included in net income.
Revenue Recognition
Premiums on traditional life, DI and LTC insurance products and life contingent payout annuities are net of reinsurance ceded and are recognized as revenue when due.
Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and updated future payment assumptions and a catch-up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively.
Mortality and expense risk fees are generally calculated as a percentage of the fair value of assets held in separate accounts and recognized when assessed. Variable annuity guaranteed benefit rider charges and cost of insurance charges on UL and VUL insurance and contract charges (net of reinsurance premiums and cost of reinsurance for UL insurance products) and surrender charges on annuities and UL and VUL insurance are recognized as revenue when assessed. These fees and charges are recorded in Policy and contract charges.
Realized gains and losses on the sale of securities, other than equity method investments, are recognized using the specific identification method on a trade date basis.
Fees received under marketing support and distribution services arrangements are recognized as revenue when earned. See Note 4 for further discussion of accounting policies on revenue from contracts with customers.
3. RECENT ACCOUNTING PRONOUNCEMENTS
Adoption of New Accounting Standards
Segment Reporting — Improvements to Reportable Segment Disclosures
In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Improvements to Reportable Segment Disclosures, updating reportable segment disclosure requirements in accordance with Topic 280, Segment Reporting (“Topic 280”), primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss and contain other disclosure requirements. The amendments also expand Topic 280 disclosures to public entities with one reportable segment. The amendments are effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The Company adopted the standard on January 1, 2024. The adoption of the standard did not have an impact on the Company’s consolidated financial condition and results of operations as the standard is disclosure-related only.
Future Adoption of New Accounting Standards
Income Taxes — Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, updating the accounting standards related to income tax disclosures, primarily focused on the disaggregation of income taxes paid and the rate reconciliation table. The standard is to be applied prospectively with an option for retrospective application and is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is assessing changes to the income tax-related disclosures resulting from the standard. The adoption of the standard will not have an impact on the Company’s consolidated financial condition and results of operations as the standard is disclosure-related only.
F-38
Table of Contents
RiverSource Life Insurance Company
Expenses — Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, requiring public business entities to disclose disaggregated information about certain income statement expense line items. The disaggregated disclosures are required to be in the footnotes to the consolidated financial statements on an annual and interim basis. The standard is to be applied prospectively, with an option for retrospective application and is effective for annual periods beginning after
December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is assessing changes to footnote disclosures resulting from the standard. The adoption of the standard will not have an impact on the Company’s consolidated financial condition and results of operations as the standard is disclosure-related only.
4. REVENUE FROM CONTRACTS WITH CUSTOMERS
The following table presents disaggregated revenue from contracts with customers and a reconciliation to total revenues reported on the Consolidated Statements of Income:
| Years Ended December 31, | ||||||||||||
| (in millions) | 2024 | 2023 | 2022 | |||||||||
| Policy and contract charges |
||||||||||||
| Affiliated (from Columbia Management Investment Distributors, Inc.) |
$ | 158 | $ | 152 | $ | 164 | ||||||
| Unaffiliated |
16 | 14 | 14 | |||||||||
| Total |
174 | 166 | 178 | |||||||||
| Other revenues |
||||||||||||
| Administrative fees |
||||||||||||
| Affiliated (from Columbia Management Investment Services, Corp.) |
41 | 39 | 42 | |||||||||
| Unaffiliated |
19 | 17 | 18 | |||||||||
| 60 | 56 | 60 | ||||||||||
| Other fees |
||||||||||||
| Affiliated (from Columbia Management Investment Advisers, LLC (“CMIA”) and Columbia Wanger Asset Management, LLC) |
320 | 307 | 334 | |||||||||
| Unaffiliated |
5 | 4 | 4 | |||||||||
| 325 | 311 | 338 | ||||||||||
| Total |
385 | 367 | 398 | |||||||||
| Total revenue from contracts with customers |
559 | 533 | 576 | |||||||||
| Revenue from other sources(1) |
4,016 | 3,759 | 3,179 | |||||||||
| Total revenues |
$ | 4,575 | $ | 4,292 | $ | 3,755 | ||||||
| (1) | Amounts primarily consist of revenue associated with insurance and annuity products and investment income from financial instruments. |
The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers.
Policy and Contract Charges
The Company earns revenue for providing distribution-related services to affiliated and unaffiliated mutual funds that are available as underlying investments in its variable annuity and variable life insurance products. The performance obligation is satisfied at the time the mutual fund is distributed. Revenue is recognized over the time the mutual fund is held in the variable product and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund. The revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control, including market volatility and how long the fund(s) remain in the insurance policy or annuity contract. The revenue will not be recognized until it is probable that a significant reversal will not occur. These fees are accrued and collected on a monthly basis.
Other Revenues
Administrative Fees
The Company earns revenue for providing customer support, contract servicing and administrative services for affiliated and unaffiliated mutual funds that are available as underlying instruments in its variable annuity and variable life insurance products. The transfer agent and administration revenue is earned daily based on a fixed rate applied, as a percentage, to assets under management. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis.
Other Fees
The Company earns revenue for providing affiliated and unaffiliated partners an opportunity to educate the financial advisors of its affiliate, AFS, that sell the Company’s products as well as product and marketing personnel to support the offer, sale and servicing of funds within the Company’s variable annuity and variable life insurance products. These payments allow the parties to train and support the advisors, explain the features of their products, and distribute marketing and educational materials. The
F-39
Table of Contents
RiverSource Life Insurance Company
affiliated revenue is earned based on a rate, updated at least annually, which is applied, as a percentage, to the market value of assets invested. The unaffiliated revenue is earned based on a fixed rate applied, as a percentage, to the market value of assets invested. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis.
Receivables
Receivables for revenue from contracts with customers are recognized when the performance obligation is satisfied and the Company has an unconditional right to the revenue. Receivables related to revenues from contracts with customers were $50 million and $49 million as of December 31, 2024 and 2023, respectively.
5. VARIABLE INTEREST ENTITIES
The Company provides asset management services to CLOs which are considered to be VIEs that are sponsored by the Company. In addition, the Company invests in structured investments other than CLOs and certain affordable housing partnerships which are considered VIEs. The Company consolidates the CLOs if the Company is deemed to be the primary beneficiary. The Company has no obligation to provide financial or other support to the non-consolidated VIEs beyond its initial investment and existing future funding commitments, and the Company has not provided any additional support to these entities. The Company has unfunded commitments related to consolidated CLOs of $2 million and $24 million as of December 31, 2024 and 2023, respectively.
See Note 2 for further discussion of the Company’s accounting policy on consolidation.
Structured Investments
The Company invests in structured investments which are considered VIEs for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities and commercial and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities.
Additionally, the Company invests in CLOs for which it is the sponsor. CLOs are asset backed financing entities collateralized by a pool of assets, primarily syndicated loans and, to a lesser extent, high-yield bonds. Multiple tranches of debt securities are issued by a CLO, offering investors various maturity and credit risk characteristics. The debt securities issued by the CLOs are non-recourse to the Company. The CLO’s debt holders have recourse only to the assets of the CLO. The assets of the CLOs cannot be used by the Company. Scheduled debt payments are based on the performance of the CLO’s collateral pool. The Company earns management fees from the CLOs based on the value of the CLO’s collateral pool and, in certain instances, may also receive incentive fees. The fee arrangement is at market and commensurate with the level of effort required to provide those services. The Company has invested in a portion of the unrated, junior subordinated notes and highly rated senior notes of certain CLOs. The Company consolidates certain CLOs where it is the primary beneficiary.
The Company’s maximum exposure to loss with respect to structured investments and non-consolidated CLOs is limited to its amortized cost. The Company classifies these investments as Available-for-Sale securities. See Note 6 for additional information on these investments.
Affordable Housing Partnerships and Other Real Estate Partnerships
The Company is a limited partner in affordable housing partnerships that qualify for government-sponsored low income housing tax credit programs and partnerships that invest in multi-family residential properties that were originally developed with an affordable housing component. The Company has determined it is not the primary beneficiary and therefore does not consolidate these partnerships.
A majority of the limited partnerships are VIEs. The Company’s maximum exposure to loss as a result of its investment in the VIEs is limited to the carrying value. The carrying value is reflected in Other investments and was $46 million and $70 million as of December 31, 2024 and 2023, respectively. The Company’s liability related to original purchase commitments not yet remitted to the VIEs was not material as of December 31, 2024 and 2023, respectively. The Company has not provided any additional support and is not contractually obligated to provide additional support to the VIEs beyond the funding commitments.
Fair Value of Assets and Liabilities
The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 14 for the definition of the three levels of the fair value hierarchy.
F-40
Table of Contents
RiverSource Life Insurance Company
The following tables present the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis:
| December 31, 2024 | ||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Assets |
||||||||||||||||
| Investments: |
||||||||||||||||
| Corporate debt securities |
$ | — | $ | 50 | $ | — | $ | 50 | ||||||||
| Common stocks |
— | 2 | 1 | 3 | ||||||||||||
| Syndicated loans |
— | 2,216 | 118 | 2,334 | ||||||||||||
| Total investments |
— | 2,268 | 119 | 2,387 | ||||||||||||
| Receivables |
— | 31 | — | 31 | ||||||||||||
| Other assets |
— | 2 | — | 2 | ||||||||||||
| Total assets at fair value |
$ | — | $ | 2,301 | $ | 119 | $ | 2,420 | ||||||||
| Liabilities |
||||||||||||||||
| Debt(1) |
$ | — | $ | 2,429 | $ | — | $ | 2,429 | ||||||||
| Other liabilities |
— | 314 | — | 314 | ||||||||||||
| Total liabilities at fair value |
$ | — | $ | 2,743 | $ | — | $ | 2,743 | ||||||||
| December 31, 2023 | ||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Assets |
||||||||||||||||
| Investments: |
||||||||||||||||
| Corporate debt securities |
$ | — | $ | 40 | $ | — | $ | 40 | ||||||||
| Common stocks |
— | 5 | — | 5 | ||||||||||||
| Syndicated loans |
— | 1,991 | 63 | 2,054 | ||||||||||||
| Total investments |
— | 2,036 | 63 | 2,099 | ||||||||||||
| Receivables |
— | 28 | — | 28 | ||||||||||||
| Other assets |
— | 1 | — | 1 | ||||||||||||
| Total assets at fair value |
$ | — | $ | 2,065 | $ | 63 | $ | 2,128 | ||||||||
| Liabilities |
||||||||||||||||
| Debt(1) |
$ | — | $ | 2,155 | $ | — | $ | 2,155 | ||||||||
| Other liabilities |
— | 45 | — | 45 | ||||||||||||
| Total liabilities at fair value |
$ | — | $ | 2,200 | $ | — | $ | 2,200 | ||||||||
| (1) | The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.4 billion and $2.1 billion as of December 31, 2024 and 2023, respectively. |
The following tables provide a summary of changes in Level 3 assets held by consolidated investment entities measured at fair value on a recurring basis:
| (in millions) | Common Stocks |
Syndicated Loans |
||||||
| Balance at January 1, 2024 |
$ | — | $ | 63 | ||||
| Total gains (losses) included in: |
||||||||
| Net income |
(1 | )(1) | (7 | )(1) | ||||
| Purchases |
— | 168 | ||||||
| Sales |
(1 | ) | — | |||||
| Settlements |
— | (5 | ) | |||||
| Transfers into Level 3 |
4 | 103 | ||||||
| Transfers out of Level 3 |
(1 | ) | (204 | ) | ||||
| Balance at December 31, 2024 |
$ | 1 | $ | 118 | ||||
| Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2024 |
$ | — | (1) | $ | — | (1) | ||
F-41
Table of Contents
RiverSource Life Insurance Company
| (in millions) | Syndicated Loans |
Other Assets |
||||||||||
| Balance at January 1, 2023 |
|
$ | 125 | $ | 1 | |||||||
| Total gains (losses) included in: |
||||||||||||
| Net income |
(4 | )(1) | — | |||||||||
| Purchases |
45 | — | ||||||||||
| Sales |
(10 | ) | — | |||||||||
| Settlements |
(16 | ) | — | |||||||||
| Transfers into Level 3 |
122 | — | ||||||||||
| Transfers out of Level 3 |
(199 | ) | (1 | ) | ||||||||
| Balance at December 31, 2023 |
$ | 63 | $ | — | ||||||||
| Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2023 |
|
$ | (1 | )(1) | $ | — | ||||||
| (in millions) | Common Stocks |
Syndicated Loans |
Other Assets |
|||||||||
| Balance at January 1, 2022 |
$ | — | $ | 64 | $ | 3 | ||||||
| Total gains (losses) included in: |
||||||||||||
| Net income |
— | (11 | )(1) | — | ||||||||
| Purchases |
— | 69 | — | |||||||||
| Sales |
— | (4 | ) | — | ||||||||
| Settlements |
— | (8 | ) | — | ||||||||
| Transfers into Level 3 |
2 | 218 | 1 | |||||||||
| Transfers out of Level 3 |
(2 | ) | (203 | ) | (3 | ) | ||||||
| Balance at December 31, 2022 |
$ | — | $ | 125 | $ | 1 | ||||||
| Changes in unrealized gains (losses) included in net income relating to assets held at December 31, 2022 |
$ | — | $ | (10 | )(1) | $ | — | |||||
| (1) | Included in Net investment income. |
Securities and loans transferred from Level 3 primarily represent assets with fair values that are now obtained from a third-party pricing service with observable inputs or priced in active markets. Securities and loans transferred to Level 3 represent assets with fair values that are now based on a single non-binding broker quote.
All Level 3 measurements as of December 31, 2024 and 2023 were obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.
Determination of Fair Value Assets
Investments
The fair value of syndicated loans obtained from third-party pricing services using a market approach with observable inputs is classified as Level 2. The fair value of syndicated loans obtained from third-party pricing services with a single non-binding broker quote as the underlying valuation source is classified as Level 3. The underlying inputs used in non-binding broker quotes are not readily available to the Company. See Note 14 for a description of the Company’s determination of the fair value of corporate debt securities, common stocks and other investments.
Receivables
For receivables of the consolidated CLOs, the carrying value approximates fair value as the nature of these assets has historically been short-term and the receivables have been collectible. The fair value of these receivables is classified as Level 2.
Liabilities
Debt
The fair value of the CLOs’ assets, typically syndicated bank loans, is more observable than the fair value of the CLOs’ debt tranches for which market activity is limited and less transparent. As a result, the fair value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets and is classified as Level 2.
Other Liabilities
Other liabilities consist primarily of securities purchased but not yet settled by consolidated CLOs. The carrying value approximates fair value as the nature of these liabilities has historically been short-term. The fair value of these liabilities is classified as Level 2. Other liabilities also include accrued interest on CLO debt.
F-42
Table of Contents
RiverSource Life Insurance Company
Fair Value Option
The Company has elected the fair value option for the financial assets and liabilities of the consolidated CLOs. Management believes that the use of the fair value option better matches the changes in fair value of assets and liabilities related to the CLOs.
The following table presents the fair value and unpaid principal balance of loans and debt for which the fair value option has been elected:
| December 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Syndicated loans |
||||||||
| Unpaid principal balance |
$ | 2,406 | $ | 2,190 | ||||
| Excess unpaid principal over fair value |
(72 | ) | (136 | ) | ||||
| Fair value |
$ | 2,334 | $ | 2,054 | ||||
| Fair value of loans more than 90 days past due |
$ | 1 | $ | — | ||||
| Fair value of loans in nonaccrual status |
1 | 13 | ||||||
| Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both Debt |
5 | 40 | ||||||
| Unpaid principal balance |
$ | 2,633 | $ | 2,362 | ||||
| Excess unpaid principal over fair value |
(204 | ) | (207 | ) | ||||
| Carrying value(1) |
$ | 2,429 | $ | 2,155 | ||||
| (1) | The carrying value of the CLOs’ debt is set equal to the fair value of the CLOs’ assets. The estimated fair value of the CLOs’ debt was $2.4 billion and $2.1 billion as of December 31, 2024 and 2023, respectively. |
During 2024, the Company launched two new CLOs that issued debt of $816 million in total.
Interest income from syndicated loans, bonds and structured investments is recorded based on contractual rates in Net investment income. Gains and losses related to changes in the fair value of investments are recorded in Net investment income and gains and losses on sales of investments are recorded in Net realized investment gains (losses). Interest expense on debt is recorded in Interest and debt expense with gains and losses related to changes in the fair value of debt recorded in Net investment income.
Total net gains (losses) recognized in Net investment income related to the changes in fair value of investments the Company owns in the consolidated CLOs where it has elected the fair value option and collateralized financing entity accounting were immaterial for the years ended December 31, 2024, 2023 and 2022.
Debt of the consolidated investment entities and the stated interest rates were as follows:
| Carrying Value | Weighted Average Interest Rate |
|||||||||||||||
| December 31, | December 31, | |||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Debt of consolidated CLOs due 2030-2038 |
$ | 2,429 | $ | 2,155 | 5.9 | % | 6.6 | % | ||||||||
The debt of the consolidated CLOs has both fixed and floating interest rates, which range from nil to 14.8%. The interest rates on the debt of CLOs are weighted average rates based on the outstanding principal and contractual interest rates.
6. INVESTMENTS
Available-for-Sale securities distributed by type were as follows:
| December 31, 2024 | ||||||||||||||||||||
| Description of Securities (in millions) | Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Allowance for Credit Losses |
Fair Value |
|||||||||||||||
| Fixed maturities: |
||||||||||||||||||||
| Corporate debt securities |
$ | 13,803 | $ | 199 | $ | (709 | ) | $ | — | $ | 13,293 | |||||||||
| Residential mortgage backed securities |
4,302 | 15 | (278 | ) | — | 4,039 | ||||||||||||||
| Commercial mortgage backed securities |
2,211 | 3 | (114 | ) | — | 2,100 | ||||||||||||||
| State and municipal obligations |
627 | 29 | (19 | ) | (1 | ) | 636 | |||||||||||||
| Asset backed securities |
2,176 | 15 | (8 | ) | — | 2,183 | ||||||||||||||
| Foreign government bonds and obligations |
7 | — | — | — | 7 | |||||||||||||||
| U.S. government and agency obligations |
1 | — | — | — | 1 | |||||||||||||||
| Total |
$ | 23,127 | $ | 261 | $ | (1,128 | ) | $ | (1 | ) | $ | 22,259 | ||||||||
F-43
Table of Contents
RiverSource Life Insurance Company
| December 31, 2023 | ||||||||||||||||||||
| Description of Securities (in millions) | Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Allowance for Credit Losses |
Fair Value |
|||||||||||||||
| Fixed maturities: |
||||||||||||||||||||
| Corporate debt securities |
$ | 10,828 | $ | 405 | $ | (497 | ) | $ | (1 | ) | $ | 10,735 | ||||||||
| Residential mortgage backed securities |
3,886 | 20 | (264 | ) | — | 3,642 | ||||||||||||||
| Commercial mortgage backed securities |
2,784 | 6 | (193 | ) | — | 2,597 | ||||||||||||||
| State and municipal obligations |
717 | 61 | (19 | ) | (1 | ) | 758 | |||||||||||||
| Asset backed securities |
1,545 | 7 | (21 | ) | — | 1,531 | ||||||||||||||
| Foreign government bonds and obligations |
12 | — | — | — | 12 | |||||||||||||||
| U.S. government and agency obligations |
99 | — | — | — | 99 | |||||||||||||||
| Total |
$ | 19,871 | $ | 499 | $ | (994 | ) | $ | (2 | ) | $ | 19,374 | ||||||||
As of December 31, 2024 and 2023, accrued interest of $208 million and $168 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Accrued investment income.
As of December 31, 2024 and 2023, fixed maturity securities comprised approximately 88% and 87%, respectively, of the Company’s total investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. As of December 31, 2024 and 2023, $497 million and $265 million, respectively, of securities were internally rated by CMIA, an affiliate of the Company, using criteria similar to those used by NRSROs.
A summary of fixed maturity securities by rating was as follows:
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||
| Ratings (in millions, except percentages) | Amortized Cost |
Fair Value |
Percent of Total Fair Value |
Amortized Cost |
Fair Value |
Percent of Total Fair Value |
||||||||||||||||||
| AAA |
$ | 4,416 | $ | 4,284 | 19 | % | $ | 4,558 | $ | 4,337 | 22 | % | ||||||||||||
| AA |
4,455 | 4,256 | 19 | 3,961 | 3,799 | 20 | ||||||||||||||||||
| A |
2,689 | 2,650 | 12 | 2,213 | 2,279 | 12 | ||||||||||||||||||
| BBB |
11,279 | 10,786 | 49 | 8,813 | 8,633 | 44 | ||||||||||||||||||
| Below investment grade |
288 | 283 | 1 | 326 | 326 | 2 | ||||||||||||||||||
| Total fixed maturities |
$ | 23,127 | $ | 22,259 | 100 | % | $ | 19,871 | $ | 19,374 | 100 | % | ||||||||||||
As of December 31, 2024 and 2023, approximately 55% and 61%, respectively, of securities rated AA were GNMA, FNMA and FHLMC mortgage backed securities. As of December 31, 2024, the Company had holdings in Ameriprise Advisor Financing 2, LLC (“AAF 2”), an affiliate of the Company, totaling $567 million that was 48% of the Company’s total shareholder’s equity. During June of 2024, the Company invested $310 million in new asset backed securities issued by Ameriprise Installment Financing, LLC. The asset backed securities are collateralized by a portfolio of loans issued to advisors affiliated with AFS, an affiliated broker dealer. As of December 31, 2024, the fair value of these asset backed securities was $312 million which represents 26% of the Company’s total shareholder’s equity. Also, the Company had an additional 47 issuers with holdings totaling $8.7 billion that individually were between 10% and 27% of the Company’s total shareholder’s equity as of December 31, 2024. As of December 31, 2023, the Company had holdings in AAF 2 totaling $554 million that was 48% of the Company’s total shareholder’s equity. Also, the Company had an additional 34 issuers with holdings totaling $5.8 billion that individually were between 10% and 23% of the Company’s total shareholder’s equity as of December 31, 2023. There were no other holdings of any other issuer greater than 10% of the Company’s total shareholder’s equity as of December 31, 2024 and 2023.
F-44
Table of Contents
RiverSource Life Insurance Company
The following tables summarize the fair value and gross unrealized losses on Available-for-Sale securities, aggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit losses has been recorded:
| December 31, 2024 | ||||||||||||||||||||||||||||||||||||
| (in millions, except number of securities) | Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||||||||||||
| Description of Securities | Number of Securities |
Fair Value |
Unrealized Losses |
Number of Securities |
Fair Value |
Unrealized Losses |
Number of Securities |
Fair Value |
Unrealized Losses |
|||||||||||||||||||||||||||
| Corporate debt securities |
275 | $ | 5,272 | $ | (177 | ) | 277 | $ | 3,975 | $ | (532 | ) | 552 | $ | 9,247 | $ | (709 | ) | ||||||||||||||||||
| Residential mortgage backed securities |
75 | 1,245 | (25 | ) | 189 | 1,633 | (253 | ) | 264 | 2,878 | (278 | ) | ||||||||||||||||||||||||
| Commercial mortgage backed securities |
16 | 265 | (5 | ) | 166 | 1,589 | (109 | ) | 182 | 1,854 | (114 | ) | ||||||||||||||||||||||||
| State and municipal obligations |
20 | 56 | (2 | ) | 44 | 133 | (17 | ) | 64 | 189 | (19 | ) | ||||||||||||||||||||||||
| Asset backed securities |
6 | 57 | (1 | ) | 15 | 73 | (7 | ) | 21 | 130 | (8 | ) | ||||||||||||||||||||||||
| Foreign government bonds and obligations |
— | — | — | 2 | 6 | — | 2 | 6 | — | |||||||||||||||||||||||||||
| Total |
392 | $ | 6,895 | $ | (210 | ) | 693 | $ | 7,409 | $ | (918 | ) | 1,085 | $ | 14,304 | $ | (1,128 | ) | ||||||||||||||||||
| December 31, 2023 | ||||||||||||||||||||||||||||||||||||
| (in millions, except number of securities) | Less than 12 months |
12 months or more | Total |
|||||||||||||||||||||||||||||||||
| Description of Securities | Number of Securities |
Fair Value |
Unrealized Losses |
Number of Securities |
Fair Value |
Unrealized Losses |
Number of Securities |
Fair Value |
Unrealized Losses |
|||||||||||||||||||||||||||
| Corporate debt securities |
43 | $ | 410 | $ | (8 | ) | 340 | $ | 4,735 | $ | (489 | ) | 383 | $ | 5,145 | $ | (497 | ) | ||||||||||||||||||
| Residential mortgage backed securities |
30 | 389 | (4 | ) | 204 | 2,114 | (260 | ) | 234 | 2,503 | (264 | ) | ||||||||||||||||||||||||
| Commercial mortgage backed securities |
20 | 264 | (4 | ) | 196 | 2,062 | (189 | ) | 216 | 2,326 | (193 | ) | ||||||||||||||||||||||||
| State and municipal obligations |
5 | 29 | (1 | ) | 47 | 137 | (18 | ) | 52 | 166 | (19 | ) | ||||||||||||||||||||||||
| Asset backed securities |
5 | 102 | — | 32 | 684 | (21 | ) | 37 | 786 | (21 | ) | |||||||||||||||||||||||||
| U.S. government and agency obligations |
1 | — | — | — | — | — | 1 | — | — | |||||||||||||||||||||||||||
| Foreign government bonds and obligations |
— | — | — | 2 | 6 | — | 2 | 6 | — | |||||||||||||||||||||||||||
| Total |
104 | $ | 1,194 | $ | (17 | ) | 821 | $ | 9,738 | $ | (977 | ) | 925 | $ | 10,932 | $ | (994 | ) | ||||||||||||||||||
As part of the Company’s ongoing monitoring process, management determined that the increase in gross unrealized loss on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the year ended December 31, 2024 is primarily attributable to higher interest rates. The Company did not recognize these unrealized losses in earnings because it was determined that such losses were due to non-credit factors. The Company does not intend to sell these securities and does not believe that it is more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of December 31, 2024 and 2023, approximately 96% and 94%, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.
The following table presents a rollforward of the allowance for credit losses on Available-for-Sale securities:
| (in millions) | Corporate Debt Securities |
State and Municipal Obligations |
Total | |||||||||
| Balance at January 1, 2022 |
$ | — | $ | 1 | $ | 1 | ||||||
| Additions for which credit losses were not previously recorded |
20 | — | 20 | |||||||||
| Additional increases (decreases) on securities that had an allowance recorded in a previous period |
— | 1 | 1 | |||||||||
| Balance at December 31, 2022 |
20 | 2 | 22 | |||||||||
| Additions for which credit losses were not previously recorded |
1 | — | 1 | |||||||||
| Reductions for securities sold during the period (realized) |
(20 | ) | (1 | ) | (21 | ) | ||||||
| Balance at December 31, 2023 |
1 | 1 | 2 | |||||||||
| Reductions for securities sold during the period (realized) |
(1 | ) | — | (1 | ) | |||||||
| Balance at December 31, 2024 |
$ | — | $ | 1 | $ | 1 | ||||||
F-45
Table of Contents
RiverSource Life Insurance Company
Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in Net realized investment gains (losses) were as follows:
| Years Ended December 31, | ||||||||||||
| (in millions) | 2024 | 2023 | 2022 | |||||||||
| Gross realized investment gains |
$ | 34 | $ | 11 | $ | 28 | ||||||
| Gross realized investment losses |
(46 | ) | (57 | ) | (25 | ) | ||||||
| Credit reversals (losses) |
1 | 20 | (21 | ) | ||||||||
| Other impairments |
— | (1 | ) | (70 | ) | |||||||
| Total |
$ | (11 | ) | $ | (27 | ) | $ | (88 | ) | |||
Credit losses recorded during the year ended December 31, 2022 and subsequently reversed due to sale of the security during the year ended December 31, 2023 relate to a corporate debt security in the communications industry. Other impairments for the years ended December 31, 2023 and 2022 related to Available-for-Sale securities which the Company intended to sell.
See Note 19 for a rollforward of net unrealized investment gains (losses) included in AOCI.
Available-for-Sale securities by contractual maturity as of December 31, 2024 were as follows:
| (in millions) | Amortized Cost |
Fair Value | ||||||
| Due within one year |
$ | 296 | $ | 294 | ||||
| Due after one year through five years |
2,362 | 2,300 | ||||||
| Due after five years through 10 years |
5,507 | 5,216 | ||||||
| Due after 10 years |
6,273 | 6,127 | ||||||
| 14,438 | 13,937 | |||||||
| Residential mortgage backed securities |
4,302 | 4,039 | ||||||
| Commercial mortgage backed securities |
2,211 | 2,100 | ||||||
| Asset backed securities |
2,176 | 2,183 | ||||||
| Total |
$ | 23,127 | $ | 22,259 | ||||
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities were not included in the maturities distribution.
The following is a summary of Net investment income:
| Years Ended December 31, | ||||||||||||
| (in millions) | 2024 | 2023 | 2022 | |||||||||
| Fixed maturities |
$ | 1,026 | $ | 830 | $ | 615 | ||||||
| Mortgage loans |
73 | 69 | 73 | |||||||||
| Other investments |
473 | 431 | 159 | |||||||||
| 1,572 | 1,330 | 847 | ||||||||||
| Less: investment expenses |
26 | 26 | 20 | |||||||||
| Total |
$ | 1,546 | $ | 1,304 | $ | 827 | ||||||
Net realized investment gains (losses) are summarized as follows:
| Years Ended December 31, | ||||||||||||
| (in millions) | 2024 | 2023 | 2022 | |||||||||
| Fixed maturities |
$ | (11 | ) | $ | (27 | ) | $ | (88 | ) | |||
| Mortgage loans |
(1 | ) | 1 | (1 | ) | |||||||
| Other investments |
(69 | ) | (44 | ) | (11 | ) | ||||||
| Total |
$ | (81 | ) | $ | (70 | ) | $ | (100 | ) | |||
7. FINANCING RECEIVABLES
Financing receivables are comprised of commercial loans, policy loans and deposit receivables. See Note 2 for information regarding the Company’s accounting policies related to financing receivables and the allowance for credit losses.
F-46
Table of Contents
RiverSource Life Insurance Company
Allowance for Credit Losses
The following table presents a rollforward of the allowance for credit losses:
| (in millions) | Commercial Loans |
|||
| Balance at January 1, 2022 |
$ | 12 | ||
| Provisions |
1 | |||
| Charge-offs |
(2 | ) | ||
| Balance at December 31, 2022 |
11 | |||
| Provisions |
(1 | ) | ||
| Balance at December 31, 2023 |
10 | |||
| Provisions |
— | |||
| Balance at December 31, 2024 |
$ | 10 | ||
As of December 31, 2024 and 2023, accrued interest on commercial loans was $17 million and $15 million, respectively, and is recorded in Accrued investment income and excluded from the amortized cost basis of commercial loans.
Purchases and Sales
During the years ended December 31, 2024, 2023 and 2022, the Company purchased $3 million, $1 million and $42 million, respectively, of syndicated loans, and sold $2 million, $1 million and nil, respectively, of syndicated loans.
The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.
Credit Quality Information
There were no nonperforming loans as of both December 31, 2024 and 2023. All loans were considered to be performing.
Commercial Loans
Commercial Mortgage Loans
The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review.
Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage loans as of both December 31, 2024 and 2023. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. There were no commercial mortgage loans past due as of both December 31, 2024 and 2023.
The tables below present the amortized cost basis of commercial mortgage loans by year of origination and loan-to-value ratio:
| December 31, 2024 | ||||||||||||||||||||||||||||
| Loan-to-Value Ratio (in millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | |||||||||||||||||||||
| > 100% |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | 15 | $ | 15 | ||||||||||||||
| 80% - 100% |
— | — | — | — | 10 | 48 | 58 | |||||||||||||||||||||
| 60% - 80% |
83 | 39 | 13 | 9 | 6 | 121 | 271 | |||||||||||||||||||||
| 40% - 60% |
87 | 22 | 39 | 67 | 37 | 338 | 590 | |||||||||||||||||||||
| < 40% |
13 | 7 | 47 | 94 | 46 | 666 | 873 | |||||||||||||||||||||
| Total |
$ | 183 | $ | 68 | $ | 99 | $ | 170 | $ | 99 | $ | 1,188 | $ | 1,807 | ||||||||||||||
| December 31, 2023 | ||||||||||||||||||||||||||||
| Loan-to-Value Ratio (in millions) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||||||||||||||||
| > 100% |
$ | — | $ | — | $ | — | $ | — | $ | 2 | $ | 20 | $ | 22 | ||||||||||||||
| 80% - 100% |
— | — | — | 2 | 11 | 49 | 62 | |||||||||||||||||||||
| 60% - 80% |
55 | 26 | 6 | 14 | 40 | 102 | 243 | |||||||||||||||||||||
| 40% - 60% |
7 | 46 | 129 | 49 | 65 | 343 | 639 | |||||||||||||||||||||
| < 40% |
7 | 31 | 43 | 37 | 71 | 580 | 769 | |||||||||||||||||||||
| Total |
$ | 69 | $ | 103 | $ | 178 | $ | 102 | $ | 189 | $ | 1,094 | $ | 1,735 | ||||||||||||||
Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type. For the year ended December 31, 2024, write-offs of commercial mortgage loans were not material.
F-47
Table of Contents
RiverSource Life Insurance Company
In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:
| Loans | Percentage | |||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
| East North Central |
$ | 177 | $ | 180 | 10 | % | 10 | % | ||||||||||||||||||||
| East South Central |
40 | 47 | 2 | 3 | ||||||||||||||||||||||||
| Middle Atlantic |
118 | 97 | 7 | 6 | ||||||||||||||||||||||||
| Mountain |
149 | 130 | 8 | 8 | ||||||||||||||||||||||||
| New England |
24 | 21 | 1 | 1 | ||||||||||||||||||||||||
| Pacific |
602 | 595 | 33 | 34 | ||||||||||||||||||||||||
| South Atlantic |
477 | 452 | 26 | 26 | ||||||||||||||||||||||||
| West North Central |
117 | 105 | 7 | 6 | ||||||||||||||||||||||||
| West South Central |
103 | 108 | 6 | 6 | ||||||||||||||||||||||||
| Total |
$ | 1,807 | $ | 1,735 | 100 | % | 100 | % | ||||||||||||||||||||
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
| Loans | Percentage | |||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||
| (in millions) | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
| Apartments |
$ | 494 | $ | 454 | 27 | % | 26 | % | ||||||||||||||||||||
| Hotel |
33 | 13 | 2 | 1 | ||||||||||||||||||||||||
| Industrial |
337 | 293 | 19 | 17 | ||||||||||||||||||||||||
| Mixed use |
58 | 54 | 3 | 3 | ||||||||||||||||||||||||
| Office |
208 | 230 | 12 | 13 | ||||||||||||||||||||||||
| Retail |
533 | 546 | 29 | 32 | ||||||||||||||||||||||||
| Other |
144 | 145 | 8 | 8 | ||||||||||||||||||||||||
| Total |
$ | 1,807 | $ | 1,735 | 100 | % | 100 | % | ||||||||||||||||||||
Syndicated Loans
The investment in syndicated loans as of December 31, 2024 and 2023 was $36 million and $57 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. There were no syndicated loans past due as of both December 31, 2024 and 2023. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality. For the year ended December 31, 2024, write-offs of syndicated loans were not material.
The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating:
| December 31, 2024 | ||||||||||||||||||||||||||||
| Internal Risk Rating (in millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | |||||||||||||||||||||
| Risk 5 |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
| Risk 4 |
— | — | — | — | — | — | — | |||||||||||||||||||||
| Risk 3 |
— | — | — | 4 | — | — | 4 | |||||||||||||||||||||
| Risk 2 |
10 | 1 | — | 1 | — | 5 | 17 | |||||||||||||||||||||
| Risk 1 |
11 | 1 | — | 2 | 1 | — | 15 | |||||||||||||||||||||
| Total |
$ | 21 | $ | 2 | $ | — | $ | 7 | $ | 1 | $ | 5 | $ | 36 | ||||||||||||||
| December 31, 2023 | ||||||||||||||||||||||||||||
| Internal Risk Rating (in millions) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | |||||||||||||||||||||
| Risk 5 |
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
| Risk 4 |
— | — | — | — | — | — | — | |||||||||||||||||||||
| Risk 3 |
— | — | 7 | — | 1 | 1 | 9 | |||||||||||||||||||||
| Risk 2 |
6 | 1 | 9 | 2 | 6 | — | 24 | |||||||||||||||||||||
| Risk 1 |
6 | 2 | 9 | 1 | 5 | 1 | 24 | |||||||||||||||||||||
| Total |
$ | 12 | $ | 3 | $ | 25 | $ | 3 | $ | 12 | $ | 2 | $ | 57 | ||||||||||||||
F-48
Table of Contents
RiverSource Life Insurance Company
Policy Loans
Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses.
Deposit Receivables
Deposit receivables were $5.8 billion and $6.5 billion as of December 31, 2024 and 2023, respectively. Deposit receivables are collateralized by the fair value of the assets held in trusts. Based on management’s evaluation of the collateral value relative to the deposit receivables, the allowance for credit losses for deposit receivables was not material as of both December 31, 2024 and 2023.
Modifications with Borrowers Experiencing Financial Difficulty
Modifications of financing receivables with borrowers experiencing financial difficulty by the Company were not material for the years ended December 31, 2024 and 2023.
8. DEFERRED ACQUISITION COSTS AND DEFERRED SALES INDUCEMENT COSTS
The following tables summarize the balances of and changes in DAC:
| (in millions) | Variable Annuities |
Structured Annuities |
Fixed Annuities |
Fixed Indexed Annuities |
Universal Life Insurance |
Variable Insurance |
||||||||||||||||||
| Balance at January 1, 2024 |
$ | 1,481 | $ | 208 | $ | 35 | $ | 5 | $ | 110 | $ | 534 | ||||||||||||
| Capitalization of acquisition costs |
24 | 98 | — | — | — | 64 | ||||||||||||||||||
| Amortization |
(117 | ) | (30 | ) | (7 | ) | (1 | ) | (7 | ) | (45 | ) | ||||||||||||
| Balance at December 31, 2024 |
$ | 1,388 | $ | 276 | $ | 28 | $ | 4 | $ | 103 | $ | 553 | ||||||||||||
| (in millions) | Indexed Universal Life Insurance |
Other Life Insurance |
Life Contingent Payout Annuities |
Term and Whole Life Insurance |
Disability Income Insurance |
Total, All Products |
||||||||||||||||||
| Balance at January 1, 2024 |
$ | 223 | $ | 2 | $ | 6 | $ | 17 | $ | 75 | $ | 2,696 | ||||||||||||
| Capitalization of acquisition costs |
3 | — | 5 | 2 | 3 | 199 | ||||||||||||||||||
| Amortization |
(16 | ) | — | (1 | ) | (2 | ) | (8 | ) | (234 | ) | |||||||||||||
| Balance at December 31, 2024 |
$ | 210 | $ | 2 | $ | 10 | $ | 17 | $ | 70 | $ | 2,661 | ||||||||||||
| (in millions) | Variable Annuities |
Structured Variable Annuities |
Fixed Annuities |
Fixed Indexed Annuities |
Universal Life Insurance |
Variable Universal Life Insurance |
||||||||||||||||||
| Balance at January 1, 2023 |
$ | 1,582 | $ | 149 | $ | 45 | $ | 6 | $ | 118 | $ | 521 | ||||||||||||
| Capitalization of acquisition costs |
23 | 83 | — | — | — | 57 | ||||||||||||||||||
| Amortization |
(124 | ) | (24 | ) | (10 | ) | (1 | ) | (8 | ) | (44 | ) | ||||||||||||
| Balance at December 31, 2023 |
$ | 1,481 | $ | 208 | $ | 35 | $ | 5 | $ | 110 | $ | 534 | ||||||||||||
| (in millions) | Indexed Universal Life Insurance |
Other Life Insurance |
Life Contingent Payout Annuities |
Term and Whole Life Insurance |
Disability Income Insurance |
Total, All Products |
||||||||||||||||||
| Balance at January 1, 2023 |
$ | 236 | $ | 3 | $ | 2 | $ | 18 | $ | 79 | $ | 2,759 | ||||||||||||
| Capitalization of acquisition costs |
4 | — | 4 | 1 | 4 | 176 | ||||||||||||||||||
| Amortization |
(17 | ) | (1 | ) | — | (2 | ) | (8 | ) | (239 | ) | |||||||||||||
| Balance at December 31, 2023 |
$ | 223 | $ | 2 | $ | 6 | $ | 17 | $ | 75 | $ | 2,696 | ||||||||||||
The following tables summarize the balances of and changes in DSIC:
| (in millions) | Variable Annuities | Fixed Annuities | Total, All Products |
|||||||||||||
| Balance at January 1, 2024 |
$ | 134 | $12 | $ | 146 | |||||||||||
| Amortization |
(13 | ) | (2) | (15 | ) | |||||||||||
| Balance at December 31, 2024 |
$ | 121 | $10 | $ | 131 | |||||||||||
| (in millions) | Variable Annuities | Fixed Annuities | Total, All Products |
|||||||||||||
| Balance at January 1, 2023 |
$ | 149 | $16 | $ | 165 | |||||||||||
| Amortization |
(15 | ) | (4) | (19 | ) | |||||||||||
| Balance at December 31, 2023 |
$ | 134 | $12 | $ | 146 | |||||||||||
F-49
Table of Contents
RiverSource Life Insurance Company
9. REINSURANCE
The Company reinsures a portion of its insurance risks through reinsurance agreements with unaffiliated reinsurance companies. The Company reinsures 100% of its insurance risk associated with its life contingent payout annuity policies in force as of June 30, 2021 through a reinsurance agreement with Global Atlantic Financial Group’s subsidiary Commonwealth Annuity and Life Insurance Company. Policies issued on or after July 1, 2021 and policies issued by RiverSource Life of NY are not subject to this reinsurance agreement.
Reinsurance contracts do not relieve the Company from its primary obligation to policyholders.
The Company generally reinsures 90% of the death benefit liability for new term life insurance policies beginning in 2001 (RiverSource Life of NY began in 2002) and new individual UL and VUL insurance policies beginning in 2002 (2003 for RiverSource Life of NY). Policies issued prior to these dates are not subject to these same reinsurance levels.
For IUL policies issued after September 1, 2013 and VUL policies issued after January 1, 2014, the Company generally reinsures 50% of the death benefit liability. Similarly, the Company reinsures 50% of the death benefit and morbidity liabilities related to its UL product with LTC benefits.
The maximum amount of life insurance risk the Company will retain is $10 million on a single life and $10 million on any flexible premium survivorship life policy; however, reinsurance agreements are in place such that retaining more than $1.5 million of insurance risk on a single life or a flexible premium survivorship life policy is very unusual. Risk on UL and VUL policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy.
The Company also has life insurance and fixed annuity risk previously assumed under reinsurance arrangements with unaffiliated insurance companies.
For existing LTC policies, the Company has continued ceding 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. (“Genworth”) and retains the remaining risk. For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only, which are about 90% of the total RiverSource Life of NY in force policies. Under these agreements, the Company has the right, but never the obligation, to recapture some, or all, of the risk ceded to Genworth.
Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states starting in 2007 (2010 for RiverSource Life of NY) and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. The Company retains all risk for new claims on DI contracts sold prior to 2007 (2010 for RiverSource Life of NY). The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions.
As of December 31, 2024 and 2023, traditional life and UL insurance policies in force were $198.1 billion and $198.8 billion, respectively, of which $143.5 billion and $144.7 billion as of December 31, 2024 and 2023 were reinsured at the respective year ends.
The effect of reinsurance on premiums for traditional long-duration products was as follows:
| Years Ended December 31, | ||||||||||||
| (in millions) | 2024 | 2023 | 2022 | |||||||||
| Direct premiums |
$ | 696 | $ | 674 | $ | 530 | ||||||
| Reinsurance ceded |
(224 | ) | (226 | ) | (224 | ) | ||||||
| Net premiums |
$ | 472 | $ | 448 | $ | 306 | ||||||
Policy and contract charges are presented on the Consolidated Statements of Income net of $188 million, $180 million and $165 million of reinsurance ceded for non-traditional long-duration products for the years ended December 31, 2024, 2023 and 2022, respectively.
The amount of claims recovered through reinsurance on all contracts was $466 million, $438 million and $435 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Reinsurance recoverables include approximately $2.6 billion and $2.8 billion related to LTC risk ceded to Genworth as of December 31, 2024 and 2023, respectively.
Policyholder account balances, future policy benefits and claims include $351 million and $376 million related to previously assumed reinsurance arrangements as of December 31, 2024 and 2023, respectively.
F-50
Table of Contents
RiverSource Life Insurance Company
10. POLICYHOLDER ACCOUNT BALANCES, FUTURE POLICY BENEFITS AND CLAIMS
Policyholder account balances, future policy benefits and claims consisted of the following:
| (in millions) | December 31, 2024 |
December 31, 2023 |
||||||
| Policyholder account balances |
||||||||
| Policyholder account balances |
$ | 32,542 | $ | 27,947 | ||||
| Future policy benefits |
||||||||
| Reserve for future policy benefits |
7,418 | 7,763 | ||||||
| Deferred profit liability |
118 | 81 | ||||||
| Additional liabilities for insurance guarantees |
1,389 | 1,321 | ||||||
| Other insurance and annuity liabilities |
192 | 213 | ||||||
| Total future policy benefits |
9,117 | 9,378 | ||||||
| Policy claims and other policyholders’ funds |
204 | 210 | ||||||
| Total policyholder account balances, future policy benefits and claims |
$ | 41,863 | $ | 37,535 | ||||
Variable Annuities
Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders.
Most of the variable annuity contracts issued by the Company contain a GMDB. The Company previously offered contracts with GMAB, GMWB, and GMIB provisions. See Note 2 and Note 12 for information regarding the Company’s variable annuity guarantees. See Note 14 and Note 18 for additional information regarding the Company’s derivative instruments used to hedge risks related to these guarantees.
Structured Variable Annuities
Structured variable annuities provide contractholders the option to allocate a portion of their account value to an indexed account held in a non-insulated separate account with the contractholder’s rate of return, which may be positive or negative, tied to selected indices. The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the equity and interest rate risk related to the indexed account with freestanding derivative instruments.
Fixed Annuities
Fixed annuities include deferred, payout and fixed deferred indexed annuity contracts. In 2020, the Company discontinued sales of fixed deferred and fixed deferred indexed annuities.
Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates.
The Company’s fixed index annuity product is a fixed annuity that includes an indexed account. The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap). The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value.
See Note 18 for additional information regarding the Company’s derivative instruments used to hedge the risk related to indexed accounts.
Insurance Liabilities
UL policies accumulate cash value that increases by a fixed interest rate. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion of their account balance to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders.
IUL is a UL policy that includes an indexed account. The rate of credited interest for funds allocated by a contractholder to the indexed account is linked to the performance of the specific index for the indexed account (subject to stated account parameters, which include a cap and floor, or a spread). The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed account. The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with freestanding derivative instruments. See Note 18 for additional information regarding the Company’s derivative instruments used to hedge the risk related to IUL.
F-51
Table of Contents
RiverSource Life Insurance Company
The Company also offers term life insurance as well as DI products. The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years.
Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims, unpaid reported claims and claim adjustment expenses.
The balances of and changes in policyholder account balances were as follows:
| (in millions, except percentages) | Variable Annuities |
Structured Annuities |
Fixed Annuities | Fixed Indexed Annuities |
Non-Life Payout Annuities |
|||||||||||||||
| Balance at January 1, 2024 |
$ | 4,173 | $ | 10,742 | $ | 5,982 | $ | 307 | $ | 444 | ||||||||||
| Contract deposits |
56 | 4,005 | 39 | — | 101 | |||||||||||||||
| Policy charges |
(14 | ) | (3 | ) | — | — | — | |||||||||||||
| Surrenders and other benefits |
(628 | ) | (383 | ) | (856 | ) | (16 | ) | (110 | ) | ||||||||||
| Net transfer from (to) separate account liabilities |
(32 | ) | — | — | — | — | ||||||||||||||
| Variable account index-linked adjustments |
— | 1,968 | — | — | — | |||||||||||||||
| Interest credited |
125 | 1 | 204 | 14 | 12 | |||||||||||||||
| Balance at December 31, 2024 |
$ | 3,680 | $ | 16,330 | $ | 5,369 | $ | 305 | $ | 447 | ||||||||||
| Weighted-average crediting rate |
3.3 | % | 1.9 | % | 3.7 | % | 2.0 | % | N/A | |||||||||||
| Cash surrender value(1) |
$ | 3,658 | $ | 15,467 | $ | 5,365 | $ | 279 | N/A | |||||||||||
| (in millions, except percentages) | Universal Life Insurance |
Variable Universal Life Insurance |
Indexed Universal Life Insurance |
Other Life Insurance |
Total, All Products |
|||||||||||||||
| Balance at January 1, 2024 |
$ | 1,474 | $ | 1,569 | $ | 2,755 | $ | 501 | $ | 27,947 | ||||||||||
| Contract deposits |
117 | 333 | 181 | — | 4,832 | |||||||||||||||
| Policy charges |
(173 | ) | (93 | ) | (124 | ) | — | (407 | ) | |||||||||||
| Surrenders and other benefits |
(62 | ) | (80 | ) | (79 | ) | (52 | ) | (2,266 | ) | ||||||||||
| Net transfer from (to) separate account liabilities |
— | (145 | ) | — | — | (177 | ) | |||||||||||||
| Variable account index-linked adjustments |
— | — | — | — | 1,968 | |||||||||||||||
| Interest credited |
49 | 63 | 161 | 16 | 645 | |||||||||||||||
| Balance at December 31, 2024 |
$ | 1,405 | $ | 1,647 | $ | 2,894 | $ | 465 | $ | 32,542 | ||||||||||
| Weighted-average crediting rate |
3.6 | % | 3.9 | % | 2.3 | % | 4.0 | % | ||||||||||||
| Net amount at risk |
$ | 8,312 | $ | 57,473 | $ | 13,593 | $ | 130 | ||||||||||||
| Cash surrender value(1) |
$ | 1,280 | $ | 1,092 | $ | 2,447 | $ | 298 | ||||||||||||
| (in millions, except percentages) | Variable Annuities |
Structured Variable Annuities |
Fixed Annuities | Fixed Indexed Annuities |
Non-Life Contingent Payout Annuities |
|||||||||||||||
| Balance at January 1, 2023 |
$ | 4,752 | $ | 6,410 | $ | 6,799 | $ | 312 | $ | 471 | ||||||||||
| Contract deposits |
73 | 3,084 | 47 | — | 91 | |||||||||||||||
| Policy charges |
(10 | ) | — | — | — | — | ||||||||||||||
| Surrenders and other benefits |
(759 | ) | (156 | ) | (1,086 | ) | (10 | ) | (127 | ) | ||||||||||
| Net transfer from (to) separate account liabilities |
(25 | ) | — | — | — | — | ||||||||||||||
| Variable account index-linked adjustments |
— | 1,403 | — | — | — | |||||||||||||||
| Interest credited |
142 | 1 | 222 | 5 | 9 | |||||||||||||||
| Balance at December 31, 2023 |
$ | 4,173 | $ | 10,742 | $ | 5,982 | $ | 307 | $ | 444 | ||||||||||
| Weighted-average crediting rate |
3.3 | % | 1.8 | % | 3.6 | % | 2.0 | % | N/A | |||||||||||
| Cash surrender value(1) |
$ | 4,146 | $ | 10,129 | $ | 5,974 | $ | 278 | N/A | |||||||||||
F-52
Table of Contents
RiverSource Life Insurance Company
| (in millions, except percentages) | Universal Life Insurance |
Variable Insurance |
Indexed Insurance |
Other Life Insurance |
Total, All Products |
|||||||||||||||
| Balance at January 1, 2023 |
$ | 1,544 | $ | 1,520 | $ | 2,654 | $ | 524 | $ | 24,986 | ||||||||||
| Contract deposits |
123 | 272 | 193 | 1 | 3,884 | |||||||||||||||
| Policy charges |
(176 | ) | (94 | ) | (121 | ) | — | (401 | ) | |||||||||||
| Surrenders and other benefits |
(69 | ) | (78 | ) | (53 | ) | (44 | ) | (2,382 | ) | ||||||||||
| Net transfer from (to) separate account liabilities |
— | (107 | ) | — | — | (132 | ) | |||||||||||||
| Variable account index-linked adjustments |
— | — | — | — | 1,403 | |||||||||||||||
| Interest credited |
52 | 56 | 82 | 20 | 589 | |||||||||||||||
| Balance at December 31, 2023 |
$ | 1,474 | $ | 1,569 | $ | 2,755 | $ | 501 | $ | 27,947 | ||||||||||
| Weighted-average crediting rate |
3.6 | % | 3.9 | % | 2.0 | % | 4.0 | % | ||||||||||||
| Net amount at risk |
$ | 8,740 | $ | 57,291 | $ | 14,407 | $ | 141 | ||||||||||||
| Cash surrender value(1) |
$ | 1,330 | $ | 1,065 | $ | 2,271 | $ | 326 | ||||||||||||
| (1) | Cash surrender value represents the amount of the contractholder’s account balances distributable at the balance sheet date less certain surrender charges. For variable annuities and VUL, the cash surrender value shown is the proportion of the total cash surrender value related to their fixed account liabilities. |
Refer to Note 12 for the net amount at risk for market risk benefits associated with variable and structured variable annuities. Fixed, fixed indexed, and non-life contingent payout annuities do not have net amount at risk in excess of account value. Net amount at risk for insurance products is calculated as the death benefit amount in excess of applicable account values, host, embedded derivative, and separate account liabilities.
The following tables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of December 31, 2024 and 2023 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated. Rates are reset at management’s discretion, subject to guaranteed minimums.
| December 31, 2024 | ||||||||||||||||||||||||||||
| Account Values with Crediting Rates | ||||||||||||||||||||||||||||
| (in millions, except percentages) | Range of Guaranteed Minimum Crediting Rates |
At Guaranteed Minimum |
1-49 bps above Guaranteed Minimum |
50-99 bps above Guaranteed Minimum |
100-150 bps above Guaranteed Minimum |
Greater than 150 bps above Guaranteed Minimum |
Total | |||||||||||||||||||||
| Fixed accounts of variable annuities |
1% – 1.99% | $ | 24 | $ | 95 | $ | 65 | $ | 17 | $ | — | $ | 201 | |||||||||||||||
| 2% – 2.99% | 112 | — | — | — | — | 112 | ||||||||||||||||||||||
| 3% – 3.99% | 1,894 | 7 | — | 1 | — | 1,902 | ||||||||||||||||||||||
| 4% – 5.00% | 1,412 | — | — | — | — | 1,412 | ||||||||||||||||||||||
| Total | $ | 3,442 | $ | 102 | $ | 65 | $ | 18 | $ | — | $ | 3,627 | ||||||||||||||||
| Fixed accounts of structured variable annuities |
1% – 1.99% | $ | 2 | $ | 20 | $ | 9 | $ | — | $ | — | $ | 31 | |||||||||||||||
| 2% – 2.99% | 13 | — | — | — | — | 13 | ||||||||||||||||||||||
| 3% – 3.99% | 1 | — | — | — | — | 1 | ||||||||||||||||||||||
| 4% – 5.00% | — | — | — | — | — | — | ||||||||||||||||||||||
| Total | $ | 16 | $ | 20 | $ | 9 | $ | — | $ | — | $ | 45 | ||||||||||||||||
| Fixed annuities |
1% – 1.99% | $ | 85 | $ | 237 | $ | 152 | $ | 89 | $ | 14 | $ | 577 | |||||||||||||||
| 2% – 2.99% | 22 | 14 | 2 | — | — | 38 | ||||||||||||||||||||||
| 3% – 3.99% | 2,410 | — | — | — | — | 2,410 | ||||||||||||||||||||||
| 4% – 5.00% | 2,331 | — | — | — | — | 2,331 | ||||||||||||||||||||||
| Total | $ | 4,848 | $ | 251 | $ | 154 | $ | 89 | $ | 14 | $ | 5,356 | ||||||||||||||||
| Non-indexed accounts of fixed indexed annuities |
1% – 1.99% | $ | — | $ | 2 | $ | 5 | $ | 14 | $ | — | $ | 21 | |||||||||||||||
| 2% – 2.99% | — | — | — | — | — | — | ||||||||||||||||||||||
| 3% – 3.99% | — | — | — | — | — | — | ||||||||||||||||||||||
| 4% – 5.00% | — | — | — | — | — | — | ||||||||||||||||||||||
| Total | $ | — | $ | 2 | $ | 5 | $ | 14 | $ | — | $ | 21 | ||||||||||||||||
| Universal life insurance |
1% – 1.99% | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| 2% – 2.99% | 50 | 4 | 15 | — | — | 69 | ||||||||||||||||||||||
| 3% – 3.99% | 821 | — | 4 | 6 | — | 831 | ||||||||||||||||||||||
| 4% – 5.00% | 473 | 4 | — | — | — | 477 | ||||||||||||||||||||||
| Total | $ | 1,344 | $ | 8 | $ | 19 | $ | 6 | $ | — | $ | 1,377 | ||||||||||||||||
F-53
Table of Contents
RiverSource Life Insurance Company
| December 31, 2024 | ||||||||||||||||||||||||||||
| Account Values with Crediting Rates | ||||||||||||||||||||||||||||
| (in millions, except percentages) | Range of Guaranteed Minimum Crediting Rates |
At Guaranteed Minimum |
1-49 bps above Guaranteed Minimum |
50-99 bps above Guaranteed Minimum |
100-150 bps above Guaranteed Minimum |
Greater than 150 bps above Guaranteed Minimum |
Total | |||||||||||||||||||||
| Fixed accounts of variable universal life insurance |
1% – 1.99% | $ | — | $ | — | $ | 4 | $ | 1 | $ | 41 | $ | 46 | |||||||||||||||
| 2% – 2.99% | 7 | 14 | — | 1 | 12 | 34 | ||||||||||||||||||||||
| 3% – 3.99% | 108 | 1 | 2 | 12 | — | 123 | ||||||||||||||||||||||
| 4% – 5.00% | 564 | 21 | — | — | — | 585 | ||||||||||||||||||||||
| Total | $ | 679 | $ | 36 | $ | 6 | $ | 14 | $ | 53 | $ | 788 | ||||||||||||||||
| Non-indexed accounts of indexed universal life insurance |
1% – 1.99% | $ | — | $ | — | $ | 4 | $ | 2 | $ | — | $ | 6 | |||||||||||||||
| 2% – 2.99% | — | 125 | — | — | — | 125 | ||||||||||||||||||||||
| 3% – 3.99% | — | — | — | — | — | — | ||||||||||||||||||||||
| 4% – 5.00% | — | — | — | — | — | — | ||||||||||||||||||||||
| Total | $ | — | $ | 125 | $ | 4 | $ | 2 | $ | — | $ | 131 | ||||||||||||||||
| Other life insurance |
1% – 1.99% | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| 2% – 2.99% | — | — | — | — | — | — | ||||||||||||||||||||||
| 3% – 3.99% | 28 | — | — | — | — | 28 | ||||||||||||||||||||||
| 4% – 5.00% | 268 | — | — | — | — | 268 | ||||||||||||||||||||||
| Total | $ | 296 | $ | — | $ | — | $ | — | $ | — | $ | 296 | ||||||||||||||||
| Total |
1% – 1.99% | $ | 111 | $ | 354 | $ | 239 | $ | 123 | $ | 55 | $ | 882 | |||||||||||||||
| 2% – 2.99% | 204 | 157 | 17 | 1 | 12 | 391 | ||||||||||||||||||||||
| 3% – 3.99% | 5,262 | 8 | 6 | 19 | — | 5,295 | ||||||||||||||||||||||
| 4% – 5.00% | 5,048 | 25 | — | — | — | 5,073 | ||||||||||||||||||||||
| Total | $ | 10,625 | $ | 544 | $ | 262 | $ | 143 | $ | 67 | $ | 11,641 | ||||||||||||||||
| Percentage of total account values that reset in: |
||||||||||||||||||||||||||||
| Next 12 months |
100.0% | 100.0% | 99.9% | 100.0% | 99.8% | 100.0% | ||||||||||||||||||||||
| > 12 months to 24 months |
— | — | — | — | — | — | ||||||||||||||||||||||
| > 24 months |
— | — | 0.1 | — | 0.2 | — | ||||||||||||||||||||||
| Total |
100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | ||||||||||||||||||||||
| December 31, 2023 | ||||||||||||||||||||||||||||
| Account Values with Crediting Rates | ||||||||||||||||||||||||||||
| (in millions, except percentages) | Range of Guaranteed Minimum Crediting Rates |
At Guaranteed Minimum |
1-49 bps above Guaranteed Minimum |
50-99 bps above Guaranteed Minimum |
100-150 bps above Guaranteed Minimum |
Greater than 150 bps above Guaranteed Minimum |
Total | |||||||||||||||||||||
| Fixed accounts of variable annuities |
1% – 1.99% | $ | 43 | $ | 131 | $ | 52 | $ | 15 | $ | 2 | $ | 243 | |||||||||||||||
| 2% – 2.99% | 137 | 1 | — | — | — | 138 | ||||||||||||||||||||||
| 3% – 3.99% | 2,214 | — | — | 1 | — | 2,215 | ||||||||||||||||||||||
| 4% – 5.00% | 1,514 | — | — | — | — | 1,514 | ||||||||||||||||||||||
| Total | $ | 3,908 | $ | 132 | $ | 52 | $ | 16 | $ | 2 | $ | 4,110 | ||||||||||||||||
| Fixed accounts of structured variable annuities |
1% – 1.99% | $ | 1 | $ | 18 | $ | 7 | $ | 2 | $ | — | $ | 28 | |||||||||||||||
| 2% – 2.99% | 11 | — | — | — | — | 11 | ||||||||||||||||||||||
| 3% – 3.99% | — | — | — | — | — | — | ||||||||||||||||||||||
| 4% – 5.00% | — | — | — | — | — | — | ||||||||||||||||||||||
| Total | $ | 12 | $ | 18 | $ | 7 | $ | 2 | $ | — | $ | 39 | ||||||||||||||||
| Fixed annuities |
1% – 1.99% | $ | 107 | $ | 377 | $ | 183 | $ | 93 | $ | — | $ | 760 | |||||||||||||||
| 2% – 2.99% | 36 | 14 | 1 | — | — | 51 | ||||||||||||||||||||||
| 3% – 3.99% | 2,816 | 1 | — | — | — | 2,817 | ||||||||||||||||||||||
| 4% – 5.00% | 2,339 | — | — | — | — | 2,339 | ||||||||||||||||||||||
| Total | $ | 5,298 | $ | 392 | $ | 184 | $ | 93 | $ | — | $ | 5,967 | ||||||||||||||||
F-54
Table of Contents
RiverSource Life Insurance Company
| December 31, 2023 | ||||||||||||||||||||||||||||
| Account Values with Crediting Rates | ||||||||||||||||||||||||||||
| (in millions, except percentages) | Range of Guaranteed Rates |
At Guaranteed Minimum |
1-49 bps above Guaranteed Minimum |
50-99 bps above Guaranteed Minimum |
100-150 bps above Guaranteed Minimum |
Greater than Minimum |
Total | |||||||||||||||||||||
| Non-indexed accounts of fixed indexed annuities |
1% – 1.99% | $ | — | $ | 2 | $ | 7 | $ | 13 | $ | — | $ | 22 | |||||||||||||||
| 2% – 2.99% | — | — | — | — | — | — | ||||||||||||||||||||||
| 3% – 3.99% | — | — | — | — | — | — | ||||||||||||||||||||||
| 4% – 5.00% | — | — | — | — | — | — | ||||||||||||||||||||||
| Total | $ | — | $ | 2 | $ | 7 | $ | 13 | $ | — | $ | 22 | ||||||||||||||||
| Universal life insurance |
1% – 1.99% | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| 2% – 2.99% | 51 | 3 | 9 | — | — | 63 | ||||||||||||||||||||||
| 3% – 3.99% | 854 | 1 | 4 | 4 | — | 863 | ||||||||||||||||||||||
| 4% – 5.00% | 518 | 1 | — | — | — | 519 | ||||||||||||||||||||||
| Total | $ | 1,423 | $ | 5 | $ | 13 | $ | 4 | $ | — | $ | 1,445 | ||||||||||||||||
| Fixed accounts of variable universal life insurance |
1% – 1.99% | $ | — | $ | 2 | $ | 4 | $ | — | $ | 24 | $ | 30 | |||||||||||||||
| 2% – 2.99% | 13 | 12 | — | 1 | 8 | 34 | ||||||||||||||||||||||
| 3% – 3.99% | 122 | 2 | 3 | 6 | — | 133 | ||||||||||||||||||||||
| 4% – 5.00% | 607 | 6 | — | — | — | 613 | ||||||||||||||||||||||
| Total | $ | 742 | $ | 22 | $ | 7 | $ | 7 | $ | 32 | $ | 810 | ||||||||||||||||
| Non-indexed accounts of indexed universal life insurance |
1% – 1.99% | $ | — | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||||||
| 2% – 2.99% | 128 | — | — | — | — | 128 | ||||||||||||||||||||||
| 3% – 3.99% | — | — | — | — | — | — | ||||||||||||||||||||||
| 4% – 5.00% | — | — | — | — | — | — | ||||||||||||||||||||||
| Total | $ | 128 | $ | — | $ | 2 | $ | — | $ | — | $ | 130 | ||||||||||||||||
| Other life insurance |
1% – 1.99% | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| 2% – 2.99% | — | — | — | — | — | — | ||||||||||||||||||||||
| 3% – 3.99% | 30 | — | — | — | — | 30 | ||||||||||||||||||||||
| 4% – 5.00% | 295 | — | — | — | — | 295 | ||||||||||||||||||||||
| Total | $ | 325 | $ | — | $ | — | $ | — | $ | — | $ | 325 | ||||||||||||||||
| Total |
1% – 1.99% | $ | 151 | $ | 530 | $ | 255 | $ | 123 | $ | 26 | $ | 1,085 | |||||||||||||||
| 2% – 2.99% | 376 | 30 | 10 | 1 | 8 | 425 | ||||||||||||||||||||||
| 3% – 3.99% | 6,036 | 4 | 7 | 11 | — | 6,058 | ||||||||||||||||||||||
| 4% – 5.00% | 5,273 | 7 | — | — | — | 5,280 | ||||||||||||||||||||||
| Total | $ | 11,836 | $ | 571 | $ | 272 | $ | 135 | $ | 34 | $ | 12,848 | ||||||||||||||||
| Percentage of total account values that reset in: |
||||||||||||||||||||||||||||
| Next 12 months |
99.9 | % | 99.5 | % | 99.3 | % | 100.0 | % | 100.0 | % | 99.9 | % | ||||||||||||||||
| > 12 months to 24 months |
0.1 | 0.5 | 0.6 | — | — | 0.1 | ||||||||||||||||||||||
| > 24 months |
— | — | 0.1 | — | — | — | ||||||||||||||||||||||
| Total |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||||
F-55
Table of Contents
RiverSource Life Insurance Company
The following tables summarize the balances of and changes in the liability for future policy benefits:
| (in millions, except percentages) | Life Contingent Annuities |
Term and Insurance |
Disability Insurance |
Long Term Care Insurance |
Total, All Products |
|||||||||||||||
| Present Value of Expected Net Premiums: |
||||||||||||||||||||
| Balance at January 1, 2024 |
$ | — | $ | 703 | $ | 104 | $ | 1,146 | $ | 1,953 | ||||||||||
| Beginning balance at original discount rate |
— | 708 | 105 | 1,137 | 1,950 | |||||||||||||||
| Effect of changes in cash flow assumptions |
— | 57 | (39 | ) | 55 | 73 | ||||||||||||||
| Effect of actual variances from expected experience |
— | (16 | ) | (13 | ) | (26 | ) | (55 | ) | |||||||||||
| Adjusted beginning of year balance |
$ | — | $ | 749 | $ | 53 | $ | 1,166 | $ | 1,968 | ||||||||||
| Issuances |
201 | 63 | 9 | — | 273 | |||||||||||||||
| Interest accrual |
1 | 38 | 3 | 55 | 97 | |||||||||||||||
| Net premiums collected |
(202 | ) | (76 | ) | (6 | ) | (149 | ) | (433 | ) | ||||||||||
| Derecognition (lapses) |
— | — | — | — | — | |||||||||||||||
| Ending balance at original discount rate |
$ | — | $ | 774 | $ | 59 | $ | 1,072 | $ | 1,905 | ||||||||||
| Effect of changes in discount rate assumptions |
— | (37 | ) | (6 | ) | (15 | ) | (58 | ) | |||||||||||
| Balance at December 31, 2024 |
$ | — | $ | 737 | $ | 53 | $ | 1,057 | $ | 1,847 | ||||||||||
| Present Value of Future Policy Benefits: |
||||||||||||||||||||
| Balance at January 1, 2024 |
$ | 1,164 | $ | 1,325 | $ | 661 | $ | 6,561 | $ | 9,711 | ||||||||||
| Beginning balance at original discount rate |
1,222 | 1,291 | 621 | 6,507 | 9,641 | |||||||||||||||
| Effect of changes in cash flow assumptions |
(24 | ) | 67 | (61 | ) | 58 | 40 | |||||||||||||
| Effect of actual variances from expected experience |
(8 | ) | (16 | ) | (25 | ) | (48 | ) | (97 | ) | ||||||||||
| Adjusted beginning of year balance |
$ | 1,190 | $ | 1,342 | $ | 535 | $ | 6,517 | $ | 9,584 | ||||||||||
| Issuances |
201 | 63 | 9 | — | 273 | |||||||||||||||
| Interest accrual |
56 | 73 | 34 | 323 | 486 | |||||||||||||||
| Benefit payments |
(158 | ) | (125 | ) | (43 | ) | (432 | ) | (758 | ) | ||||||||||
| Derecognition (lapses) |
— | — | — | — | — | |||||||||||||||
| Ending balance at original discount rate |
$ | 1,289 | $ | 1,353 | $ | 535 | $ | 6,408 | $ | 9,585 | ||||||||||
| Effect of changes in discount rate assumptions |
(85 | ) | (31 | ) | 10 | (221 | ) | (327 | ) | |||||||||||
| Balance at December 31, 2024 |
$ | 1,204 | $ | 1,322 | $ | 545 | $ | 6,187 | $ | 9,258 | ||||||||||
| Adjustment due to reserve flooring |
$ | — | $ | 7 | $ | — | $ | — | $ | 7 | ||||||||||
| Net liability for future policy benefits |
$ | 1,204 | $ | 592 | $ | 492 | $ | 5,130 | $ | 7,418 | ||||||||||
| Less: reinsurance recoverable |
759 | 424 | 20 | 2,591 | 3,794 | |||||||||||||||
| Net liability for future policy benefits, after reinsurance recoverable |
$ | 445 | $ | 168 | $ | 472 | $ | 2,539 | $ | 3,624 | ||||||||||
| Discounted expected future gross premiums |
$ | — | $ | 1,672 | $ | 836 | $ | 1,247 | $ | 3,755 | ||||||||||
| Expected future gross premiums |
$ | — | $ | 2,921 | $ | 1,196 | $ | 1,713 | $ | 5,830 | ||||||||||
| Expected future benefit payments |
$ | 1,846 | $ | 2,286 | $ | 899 | $ | 10,522 | $ | 15,553 | ||||||||||
| Weighted average interest accretion rate |
4.5 | % | 6.0 | % | 6.3 | % | 5.0 | % | ||||||||||||
| Weighted average discount rate |
5.4 | % | 5.6 | % | 5.6 | % | 5.7 | % | ||||||||||||
| Weighted average duration of liability (in years) |
6 | 7 | 7 | 8 | ||||||||||||||||
F-56
Table of Contents
RiverSource Life Insurance Company
| (in millions, except percentages) | Life Contingent Annuities |
Term and Insurance |
Disability Insurance |
Long Term Care Insurance |
Total, All Products |
|||||||||||||||
| Present Value of Expected Net Premiums: |
||||||||||||||||||||
| Balance at January 1, 2023 |
$ | — | $ | 686 | $ | 134 | $ | 1,207 | $ | 2,027 | ||||||||||
| Beginning balance at original discount rate |
— | 708 | 137 | 1,220 | 2,065 | |||||||||||||||
| Effect of changes in cash flow assumptions |
— | (19 | ) | (19 | ) | 19 | (19 | ) | ||||||||||||
| Effect of actual variances from expected experience |
— | (2 | ) | (18 | ) | (3 | ) | (23 | ) | |||||||||||
| Adjusted beginning of year balance |
$ | — | $ | 687 | $ | 100 | $ | 1,236 | $ | 2,023 | ||||||||||
| Issuances |
177 | 55 | 12 | — | 244 | |||||||||||||||
| Interest accrual |
1 | 36 | 5 | 59 | 101 | |||||||||||||||
| Net premiums collected |
(178 | ) | (70 | ) | (12 | ) | (158 | ) | (418 | ) | ||||||||||
| Derecognition (lapses) |
— | — | — | — | — | |||||||||||||||
| Ending balance at original discount rate |
$ | — | $ | 708 | $ | 105 | $ | 1,137 | $ | 1,950 | ||||||||||
| Effect of changes in discount rate assumptions |
— | (5 | ) | (1 | ) | 9 | 3 | |||||||||||||
| Balance at December 31, 2023 |
$ | — | $ | 703 | $ | 104 | $ | 1,146 | $ | 1,953 | ||||||||||
| Present Value of Future Policy Benefits: |
||||||||||||||||||||
| Balance at January 1, 2023 |
$ | 1,065 | $ | 1,319 | $ | 696 | $ | 6,439 | $ | 9,519 | ||||||||||
| Beginning balance at original discount rate |
1,155 | 1,313 | 669 | 6,569 | 9,706 | |||||||||||||||
| Effect of changes in cash flow assumptions |
— | (18 | ) | (25 | ) | 9 | (34 | ) | ||||||||||||
| Effect of actual variances from expected experience |
(10 | ) | (1 | ) | (29 | ) | 5 | (35 | ) | |||||||||||
| Adjusted beginning of year balance |
$ | 1,145 | $ | 1,294 | $ | 615 | $ | 6,583 | $ | 9,637 | ||||||||||
| Issuances |
177 | 56 | 11 | — | 244 | |||||||||||||||
| Interest accrual |
50 | 73 | 37 | 329 | 489 | |||||||||||||||
| Benefit payments |
(150 | ) | (132 | ) | (42 | ) | (405 | ) | (729 | ) | ||||||||||
| Derecognition (lapses) |
— | — | — | — | — | |||||||||||||||
| Ending balance at original discount rate |
$ | 1,222 | $ | 1,291 | $ | 621 | $ | 6,507 | $ | 9,641 | ||||||||||
| Effect of changes in discount rate assumptions |
(58 | ) | 34 | 40 | 54 | 70 | ||||||||||||||
| Balance at December 31, 2023 |
$ | 1,164 | $ | 1,325 | $ | 661 | $ | 6,561 | $ | 9,711 | ||||||||||
| Adjustment due to reserve flooring |
$ | — | $ | 5 | $ | — | $ | — | $ | 5 | ||||||||||
| Net liability for future policy benefits |
$ | 1,164 | $ | 627 | $ | 557 | $ | 5,415 | $ | 7,763 | ||||||||||
| Less: reinsurance recoverable |
880 | 440 | 22 | 2,738 | 4,080 | |||||||||||||||
| Net liability for future policy benefits, after reinsurance recoverable |
$ | 284 | $ | 187 | $ | 535 | $ | 2,677 | $ | 3,683 | ||||||||||
| Discounted expected future gross premiums |
$ | — | $ | 1,764 | $ | 904 | $ | 1,325 | $ | 3,993 | ||||||||||
| Expected future gross premiums |
$ | — | $ | 2,938 | $ | 1,269 | $ | 1,786 | $ | 5,993 | ||||||||||
| Expected future benefit payments |
$ | 1,726 | $ | 2,166 | $ | 1,068 | $ | 10,850 | $ | 15,810 | ||||||||||
| Weighted average interest accretion rate |
4.2 | % | 6.2 | % | 6.1 | % | 5.0 | % | ||||||||||||
| Weighted average discount rate |
4.9 | % | 5.1 | % | 5.1 | % | 5.1 | % | ||||||||||||
| Weighted average duration of liability (in years) |
7 | 7 | 8 | 8 | ||||||||||||||||
Impacts of the annual review of policy benefit reserves assumptions are reflected within the effect of changes in cash flow assumptions in the disaggregated rollforwards above. The annual review of policy benefit reserves assumptions in the third quarter of 2024 resulted in a net decrease in future policy benefit reserves, primarily due to decreased disability income insurance claim incidence rates. The annual review of policy benefit reserves assumptions in the third quarter of 2023 resulted in a net decrease in future policy benefit reserves, primarily due to updates to LTC premium rate increase assumptions.
The balances of and changes in additional liabilities related to insurance guarantees were as follows:
| (in millions, except percentages) | Universal Life Insurance |
Variable Insurance |
Other Life Insurance |
Total, All Products |
||||||||||||
| Balance at January 1, 2024 |
$ | 1,225 | $ | 81 | $ | 15 | $ | 1,321 | ||||||||
| Interest accrual |
37 | 6 | 1 | 44 | ||||||||||||
| Benefit accrual |
133 | 8 | 3 | 144 | ||||||||||||
| Benefit payments |
(69 | ) | (13 | ) | (5 | ) | (87 | ) | ||||||||
| Effect of actual variances from expected experience |
(2 | ) | (1 | ) | (1 | ) | (4 | ) | ||||||||
| Impact of change in net unrealized (gains) losses on securities |
(23 | ) | (1 | ) | (5 | ) | (29 | ) | ||||||||
| Balance at December 31, 2024 |
$ | 1,301 | $ | 80 | $ | 8 | $ | 1,389 | ||||||||
| Weighted average interest accretion rate |
3.0 | % | 7.0 | % | 3.9 | % | ||||||||||
| Weighted average discount rate |
3.2 | % | 7.1 | % | 4.0 | % | ||||||||||
| Weighted average duration of reserves (in years) |
10 | 8 | 6 | |||||||||||||
F-57
Table of Contents
RiverSource Life Insurance Company
| (in millions, except percentages) | Universal Life Insurance |
Variable Insurance |
Other Life Insurance |
Total, All Products |
||||||||||||
| Balance at January 1, 2023 |
$ | 1,100 | $ | 74 | $ | 12 | $ | 1,186 | ||||||||
| Interest accrual |
35 | 5 | 1 | 41 | ||||||||||||
| Benefit accrual |
128 | 8 | 2 | 138 | ||||||||||||
| Benefit payments |
(50 | ) | (18 | ) | (4 | ) | (72 | ) | ||||||||
| Effect of actual variances from expected experience |
(13 | ) | 11 | (2 | ) | (4 | ) | |||||||||
| Impact of change in net unrealized (gains) losses on securities |
25 | 1 | 6 | 32 | ||||||||||||
| Balance at December 31, 2023 |
$ | 1,225 | $ | 81 | $ | 15 | $ | 1,321 | ||||||||
| Weighted average interest accretion rate |
3.0 | % | 6.9 | % | 4.0 | % | ||||||||||
| Weighted average discount rate |
3.2 | % | 7.1 | % | 4.0 | % | ||||||||||
| Weighted average duration of reserves (in years) |
10 | 8 | 6 | |||||||||||||
The amount of revenue and interest recognized in the Statement of Income was as follows:
| Years Ended December 31, | ||||||||||||||||
| 2024 | 2023 | |||||||||||||||
| (in millions) | Gross Premiums |
Interest Expense |
Gross Premiums |
Interest Expense |
||||||||||||
| Life contingent payout annuities |
$ | 226 | $ | 55 | $ | 196 | $ | 49 | ||||||||
| Term and whole life insurance |
172 | 35 | 169 | 37 | ||||||||||||
| Disability income insurance |
119 | 31 | 124 | 32 | ||||||||||||
| Long term care insurance |
179 | 268 | 185 | 270 | ||||||||||||
| Total |
$ | 696 | $ | 389 | $ | 674 | $ | 388 | ||||||||
The following tables summarize the balances of and changes in unearned revenue:
| (in millions) | Universal Life Insurance |
Variable Insurance |
Indexed Insurance |
Total, All Products |
||||||||||||
| Balance at January 1, 2024 |
$ | 27 | $ | 196 | $ | 266 | $ | 489 | ||||||||
| Deferral of revenue |
— | 70 | 51 | 121 | ||||||||||||
| Amortization |
(1 | ) | (17 | ) | (22 | ) | (40 | ) | ||||||||
| Balance at December 31, 2024 |
$ | 26 | $ | 249 | $ | 295 | $ | 570 | ||||||||
| Balance at January 1, 2023 |
$ | 27 | $ | 150 | $ | 233 | $ | 410 | ||||||||
| Deferral of revenue |
1 | 59 | 52 | 112 | ||||||||||||
| Amortization |
(1 | ) | (13 | ) | (19 | ) | (33 | ) | ||||||||
| Balance at December 31, 2023 |
$ | 27 | $ | 196 | $ | 266 | $ | 489 | ||||||||
11. SEPARATE ACCOUNT ASSETS AND LIABILITIES
The fair value of separate account assets is invested exclusively in mutual funds.
The balances of and changes in separate account liabilities were as follows:
| (in millions) | Variable Annuities |
Variable Universal Life |
Total | |||||||||
| Balance at January 1, 2024 |
$ | 65,839 | $ | 8,795 | $ | 74,634 | ||||||
| Premiums and deposits |
933 | 500 | 1,433 | |||||||||
| Policy charges |
(1,365 | ) | (307 | ) | (1,672 | ) | ||||||
| Surrenders and other benefits |
(6,990 | ) | (412 | ) | (7,402 | ) | ||||||
| Investment return |
7,293 | 1,199 | 8,492 | |||||||||
| Net transfer from (to) general account |
27 | 64 | 91 | |||||||||
| Balance at December 31, 2024 |
$ | 65,737 | $ | 9,839 | $ | 75,576 | ||||||
| Cash surrender value |
$ | 64,411 | $ | 9,220 | $ | 73,631 | ||||||
F-58
Table of Contents
RiverSource Life Insurance Company
| (in millions) | Variable Annuities |
Variable Universal Life |
Total | |||||||||
| Balance at January 1, 2023 |
$ | 63,223 | $ | 7,653 | $ | 70,876 | ||||||
| Premiums and deposits |
835 | 459 | 1,294 | |||||||||
| Policy charges |
(1,343 | ) | (292 | ) | (1,635 | ) | ||||||
| Surrenders and other benefits |
(5,378 | ) | (317 | ) | (5,695 | ) | ||||||
| Investment return |
8,477 | 1,250 | 9,727 | |||||||||
| Net transfer from (to) general account |
25 | 42 | 67 | |||||||||
| Balance at December 31, 2023 |
$ | 65,839 | $ | 8,795 | $ | 74,634 | ||||||
| Cash surrender value |
$ | 64,280 | $ | 8,263 | $ | 72,543 | ||||||
12. MARKET RISK BENEFITS
Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Most of the variable annuity contracts issued by the Company contain a GMDB provision. The Company previously offered contracts containing GMWB, GMAB, or GMIB provisions.
The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract.
The Company has the following primary GMDB provisions:
| • | Return of premium – provides purchase payments minus adjusted partial surrenders. |
| • | Reset – provides that the value resets to the account value at specified contract anniversary intervals minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered. |
| • | Ratchet – provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders. |
The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At contract issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a “step-up”) in the case of favorable market performance or by a benefit credit if the contract includes this provision.
The Company has GMWB riders in force, which contain one or more of the following provisions:
| • | Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount. |
| • | Withdrawals at a specified rate per year for the life of the contractholder (“GMWB for life”). |
| • | Withdrawals at a specified rate per year for joint contractholders while either is alive. |
| • | Withdrawals based on performance of the contract. |
| • | Withdrawals based on the age withdrawals begin. |
| • | Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken. |
Variable annuity contractholders age 79 or younger at contract issue could obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or a specified percentage of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10-year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value.
Individual variable annuity contracts may have both a death benefit and a living benefit. Net amount at risk is quantified for each benefit and a composite net amount at risk is calculated using the greater of the death benefit or living benefit for each individual contract. The net amount at risk for GMDB and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero.
F-59
Table of Contents
RiverSource Life Insurance Company
The following tables summarize the balances of and changes in market risk benefits:
| Years Ended December 31, | ||||||||||||
| (in millions, except age) | 2024 | 2023 | 2022 | |||||||||
| Balance at beginning of period |
$ | 335 | $ | 1,103 | $ | 2,901 | ||||||
| Issuances |
24 | 17 | 27 | |||||||||
| Interest accrual and time decay |
(66 | ) | (53 | ) | (237 | ) | ||||||
| Reserve increase from attributed fees collected |
790 | 788 | 810 | |||||||||
| Reserve release for benefit payments and derecognition |
(11 | ) | (35 | ) | (29 | ) | ||||||
| Effect of changes in interest rates and bond markets |
(1,078 | ) | (367 | ) | (4,193 | ) | ||||||
| Effect of changes in equity markets and subaccount performance |
(1,228 | ) | (1,267 | ) | 2,258 | |||||||
| Effect of changes in equity index volatility |
59 | (67 | ) | 205 | ||||||||
| Actual policyholder behavior different from expected behavior |
71 | 5 | 17 | |||||||||
| Effect of changes in other future expected assumptions |
106 | 128 | (139 | ) | ||||||||
| Effect of changes in the instrument-specific credit risk on market risk benefits |
79 | 83 | (517 | ) | ||||||||
| Balance at end of period |
$ | (919 | ) | $ | 335 | $ | 1,103 | |||||
| Reconciliation of the gross balances in an asset or liability position: |
||||||||||||
| Asset position |
$ | 2,182 | $ | 1,427 | $ | 1,015 | ||||||
| Liability position |
(1,263 | ) | (1,762 | ) | (2,118 | ) | ||||||
| Net asset (liability) position |
$ | 919 | $ | (335 | ) | $ | (1,103 | ) | ||||
| Guaranteed benefit amount in excess of current account balances (net amount at risk): |
||||||||||||
| Death benefits |
$ | 462 | $ | 913 | $ | 2,781 | ||||||
| Living benefits |
$ | 2,429 | $ | 2,513 | $ | 3,364 | ||||||
| Composite (greater of) |
$ | 2,829 | $ | 3,308 | $ | 5,830 | ||||||
| Weighted average attained age of contractholders |
69 | 69 | 68 | |||||||||
| Changes in unrealized (gains) losses in net income relating to liabilities held at end of period |
$ | (2,111 | ) | $ | (1,551 | ) | $ | (2,044 | ) | |||
| Changes in unrealized (gains) losses in other comprehensive income (loss) relating to liabilities held at end of period |
$ | 85 | $ | 84 | $ | (505 | ) | |||||
The following tables provide a summary of the significant inputs and assumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits:
| December 31, 2024 | ||||||||||||||||||||||||||
| Fair Value | Valuation Technique |
Significant Inputs and Assumptions | Range | Weighted Average |
||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Market risk benefits | $ | (919 | ) | Discounted cash flow | Utilization of guaranteed withdrawals(1) | 0.0% | – | 52.8% | 11.9 | % | ||||||||||||||||
| Surrender rate(2) | 0.4% | – | 75.0% | 3.3 | % | |||||||||||||||||||||
| Market volatility(3) | 0.0% | – | 24.6% | 10.3 | % | |||||||||||||||||||||
| Nonperformance risk(4) | 65 bps | 65 bps | ||||||||||||||||||||||||
| Mortality rate(5) | 0.0% | – | 41.6% | 1.7 | % | |||||||||||||||||||||
| December 31, 2023 | ||||||||||||||||||||||||||
| Fair Value | Valuation Technique |
Significant Inputs and Assumptions | Range | Weighted Average |
||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Market risk benefits | $ | 335 | Discounted cash flow | Utilization of guaranteed withdrawals(1) | 0.0% | – | 48.0% | 11.6 | % | |||||||||||||||||
| Surrender rate(2) | 0.3% | – | 75.0% | 3.7 | % | |||||||||||||||||||||
| Market volatility(3) | 0.0% | – | 25.2% | 10.6 | % | |||||||||||||||||||||
| Nonperformance risk(4) | 85 bps | 85 bps | ||||||||||||||||||||||||
| Mortality rate(5) | 0.0% | – | 41.6% | 1.6 | % | |||||||||||||||||||||
| (1) | The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any given year. The weighted average utilization rate represents the average assumption, weighted based on the benefit base. The calculation excludes policies that have already started taking withdrawals. |
| (2) | The weighted average surrender rate represents the average assumption weighted based on the account value of each contract. |
| (3) | Market volatility represents the implied volatility of each contractholder’s mix of funds. The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit. |
| (4) | The nonperformance risk is the spread added to the U.S. Treasury curve. |
| (5) | The weighted average mortality rate represents the average assumption weighted based on the account value of each contract. |
F-60
Table of Contents
RiverSource Life Insurance Company
Changes to Significant Inputs and Assumptions:
During the years ended December 31, 2024 and 2023, the Company updated inputs and assumptions based on management’s review of experience studies. These updates resulted in the following notable changes in the fair value estimates of market risk benefits calculations:
Year ended December 31, 2024
| • | Updates to utilization of guaranteed withdrawal assumptions resulted in a decrease to pretax income of $15 million. |
| • | Updates to surrender assumptions resulted in a decrease to pretax income of $83 million. |
Year ended December 31, 2023
| • | Updates to utilization of guaranteed withdrawal assumptions resulted in a decrease to pretax income of $18 million. |
| • | Updates to surrender assumptions resulted in a decrease to pretax income of $110 million. |
Refer to the rollforward of market risk benefits for the impacts of changes to interest rate, equity market, volatility and nonperformance risk assumptions.
Uncertainty of Fair Value Measurements
Significant increases (decreases) in utilization and volatility used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value.
Significant increases (decreases) in nonperformance risk and surrender assumptions used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.
Significant increases (decreases) in mortality assumptions used in the fair value measurement of the death benefit portion of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value whereas significant increases (decreases) in mortality rates used in the fair value measurement of the life contingent portion of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.
Surrender assumptions, utilization assumptions and mortality assumptions vary with the type of base product, type of rider, duration of the policy, age of the contractholder, calendar year of the projection, previous withdrawal history, and the relationship between the value of the guaranteed benefit and the contract accumulation value.
Determination of Fair Value
The Company values market risk benefits using internal valuation models. These models include observable capital market assumptions and significant unobservable inputs related to implied volatility, contractholder behavior assumptions that include margins for risk, and the Company’s nonperformance risk. These measurements are classified as Level 3.
13. DEBT
Short-Term Borrowings
RiverSource Life Insurance Company is a member of the Federal Home Loan Bank (“FHLB”) of Des Moines which provides access to collateralized borrowings. The Company has accessed collateralized borrowings from the FHLB and has pledged (granted a lien on) certain investments as collateral, primarily commercial mortgage backed securities and residential mortgage backed securities, with an aggregate fair value of $964 million and $1.1 billion as of December 31, 2024 and 2023, respectively. The amount of the Company’s liability including accrued interest was $201 million as of both December 31, 2024 and 2023. The remaining maturity of outstanding FHLB advances was less than three months as of both December 31, 2024 and 2023. The weighted average annualized interest rate on the FHLB advances held as of December 31, 2024 and 2023 was 4.6% and 5.6%, respectively.
Lines of Credit
RiverSource Life Insurance Company, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under this line of credit may not exceed 3% of RiverSource Life Insurance Company’s statutory admitted assets (excluding separate accounts) as of the prior year end. The interest rate under the agreement is a Daily Simple Secured Overnight Financing Rate plus 0.1% (“Adjusted Daily Simple SOFR”) plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. Amounts borrowed may be repaid at any time with no prepayment penalty. There were no amounts outstanding on this line of credit as of both December 31, 2024 and 2023.
RiverSource Life of NY, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under this line of credit may not exceed the lesser of $25 million or 3% of RiverSource Life of NY’s statutory admitted assets (excluding separate accounts) as of the prior year end. The interest rate under the agreement is an Adjusted Daily Simple SOFR plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt
F-61
Table of Contents
RiverSource Life Insurance Company
of Ameriprise Financial. Amounts borrowed may be repaid at any time with no prepayment penalty. The credit agreement is amended to extend the maturity on an annual basis with Ameriprise Financial, subject to the New York Department of Financial Services’ non-disapproval. There were no amounts outstanding on this line of credit as of both December 31, 2024 and 2023.
RTA, as the borrower, has a revolving credit agreement with Ameriprise Financial as the lender not to exceed $100 million. The interest rate under the agreement is an Adjusted Daily Simple SOFR plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. Amounts borrowed may be repaid at any time with no prepayment penalty. There were no amounts outstanding on this line of credit as of both December 31, 2024 and 2023.
Long-Term Debt
The Company has a $500 million unsecured 3.5% surplus note due December 31, 2050 to Ameriprise Financial. The surplus note is subordinate in right of payment to the prior payment in full of the Company’s obligations to policyholders, claimants and beneficiaries and all other creditors. No payment of principal or interest shall be made without the prior approval of the Minnesota Department of Commerce and such payments shall be made only from RiverSource Life Insurance Company’s statutory surplus. Interest payments, which commenced on June 30, 2021, are due semiannually in arrears on June 30 and December 31. Subject to the preceding conditions, the Company may prepay all or a portion of the principal at any time. The outstanding balance was $500 million as of both December 31, 2024 and 2023 and is recorded in Long-term debt.
14. FAIR VALUES OF ASSETS AND LIABILITIES
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale.
Valuation Hierarchy
The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety.
The three levels of the fair value hierarchy are defined as follows:
| Level 1 | Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. |
| Level 2 | Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. |
| Level 3 | Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. |
F-62
Table of Contents
RiverSource Life Insurance Company
The following tables present the balances of assets and liabilities measured at fair value on a recurring basis (See Note 5 for the balances of assets and liabilities for consolidated investment entities):
| December 31, 2024 | ||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Assets |
||||||||||||||||
| Available-for-Sale securities: |
||||||||||||||||
| Corporate debt securities |
$ | — | $ | 12,721 | $ | 572 | $ | 13,293 | ||||||||
| Residential mortgage backed securities |
— | 4,039 | — | 4,039 | ||||||||||||
| Commercial mortgage backed securities |
— | 2,100 | — | 2,100 | ||||||||||||
| State and municipal obligations |
— | 636 | — | 636 | ||||||||||||
| Asset backed securities |
— | 1,302 | 881 | 2,183 | ||||||||||||
| Foreign government bonds and obligations |
— | 7 | — | 7 | ||||||||||||
| U.S. government and agency obligations |
1 | — | — | 1 | ||||||||||||
| Total Available-for-Sale securities |
1 | 20,805 | 1,453 | 22,259 | ||||||||||||
| Cash equivalents |
1,215 | 1,227 | — | 2,442 | ||||||||||||
| Market risk benefits |
— | — | 2,182 | 2,182 | (1) | |||||||||||
| Receivables: |
||||||||||||||||
| Fixed deferred indexed annuity ceded embedded derivatives |
— | — | 55 | 55 | ||||||||||||
| Other assets: |
||||||||||||||||
| Interest rate derivative contracts |
— | 179 | — | 179 | ||||||||||||
| Equity derivative contracts |
114 | 8,829 | — | 8,943 | ||||||||||||
| Foreign exchange derivative contracts |
2 | 40 | — | 42 | ||||||||||||
| Credit derivative contracts |
— | 59 | — | 59 | ||||||||||||
| Total other assets |
116 | 9,107 | — | 9,223 | ||||||||||||
| Separate account assets at net asset value (“NAV”) |
75,576 | (2) | ||||||||||||||
| Total assets at fair value |
$ | 1,332 | $ | 31,139 | $ | 3,690 | $ | 111,737 | ||||||||
| Liabilities |
||||||||||||||||
| Policyholder account balances, future policy benefits and claims: |
||||||||||||||||
| Fixed deferred indexed annuity embedded derivatives |
$ | — | $ | — | $ | 53 | $ | 53 | ||||||||
| IUL embedded derivatives |
— | — | 1,002 | 1,002 | ||||||||||||
| Structured variable annuity embedded derivatives |
— | — | 2,461 | 2,461 | ||||||||||||
| Total policyholder account balances, future policy benefits and claims |
— | — | 3,516 | 3,516 | (3) | |||||||||||
| Market risk benefits |
— | — | 1,263 | 1,263 | (1) | |||||||||||
| Other liabilities: |
||||||||||||||||
| Interest rate derivative contracts |
1 | 323 | — | 324 | ||||||||||||
| Equity derivative contracts |
172 | 5,159 | — | 5,331 | ||||||||||||
| Foreign exchange derivative contracts |
— | 7 | — | 7 | ||||||||||||
| Total other liabilities |
173 | 5,489 | — | 5,662 | ||||||||||||
| Total liabilities at fair value |
$ | 173 | $ | 5,489 | $ | 4,779 | $ | 10,441 | ||||||||
F-63
Table of Contents
RiverSource Life Insurance Company
| December 31, 2023 | ||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Assets |
||||||||||||||||
| Available-for-Sale securities: |
||||||||||||||||
| Corporate debt securities |
$ | — | $ | 10,283 | $ | 452 | $ | 10,735 | ||||||||
| Residential mortgage backed securities |
— | 3,642 | — | 3,642 | ||||||||||||
| Commercial mortgage backed securities |
— | 2,597 | — | 2,597 | ||||||||||||
| State and municipal obligations |
— | 758 | — | 758 | ||||||||||||
| Asset backed securities |
— | 976 | 555 | 1,531 | ||||||||||||
| Foreign government bonds and obligations |
— | 12 | — | 12 | ||||||||||||
| U.S. government and agency obligations |
99 | — | — | 99 | ||||||||||||
| Total Available-for-Sale securities |
99 | 18,268 | 1,007 | 19,374 | ||||||||||||
| Cash equivalents |
558 | 2,012 | — | 2,570 | ||||||||||||
| Market risk benefits |
— | — | 1,427 | 1,427 | (1) | |||||||||||
| Receivables: |
||||||||||||||||
| Fixed deferred indexed annuity ceded embedded derivatives |
— | — | 51 | 51 | ||||||||||||
| Other assets: |
||||||||||||||||
| Interest rate derivative contracts |
1 | 184 | — | 185 | ||||||||||||
| Equity derivative contracts |
65 | 4,945 | — | 5,010 | ||||||||||||
| Foreign exchange derivative contracts |
1 | 20 | — | 21 | ||||||||||||
| Credit derivative contracts |
— | 1 | — | 1 | ||||||||||||
| Total other assets |
67 | 5,150 | — | 5,217 | ||||||||||||
| Separate account assets at NAV |
74,634 | (2) | ||||||||||||||
| Total assets at fair value |
$ | 724 | $ | 25,430 | $ | 2,485 | $ | 103,273 | ||||||||
| Liabilities |
||||||||||||||||
| Policyholder account balances, future policy benefits and claims: |
||||||||||||||||
| Fixed deferred indexed annuity embedded derivatives |
$ | — | $ | 3 | $ | 49 | $ | 52 | ||||||||
| IUL embedded derivatives |
— | — | 873 | 873 | ||||||||||||
| Structured variable annuity embedded derivatives |
— | — | 1,011 | 1,011 | ||||||||||||
| Total policyholder account balances, future policy benefits and claims |
— | 3 | 1,933 | 1,936 | (3) | |||||||||||
| Market risk benefits |
— | — | 1,762 | 1,762 | (1) | |||||||||||
| Other liabilities: |
||||||||||||||||
| Interest rate derivative contracts |
1 | 304 | — | 305 | ||||||||||||
| Equity derivative contracts |
95 | 3,355 | — | 3,450 | ||||||||||||
| Foreign exchange derivative contracts |
1 | 3 | — | 4 | ||||||||||||
| Credit derivative contracts |
— | 106 | — | 106 | ||||||||||||
| Total other liabilities |
97 | 3,768 | — | 3,865 | ||||||||||||
| Total liabilities at fair value |
$ | 97 | $ | 3,771 | $ | 3,695 | $ | 7,563 | ||||||||
| (1) | See Note 12 for additional information related to market risk benefits, including the balances of and changes in market risk benefits as well as the significant inputs and assumptions used in the fair value measurements of market risk benefits. |
| (2) | Amounts are comprised of financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. |
| (3) | The Company’s adjustment for nonperformance risk resulted in a $211 million and $195 million cumulative decrease to the embedded derivatives as of December 31, 2024 and 2023, respectively. |
F-64
Table of Contents
RiverSource Life Insurance Company
The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis:
| Available-for-Sale Securities | Receivables | |||||||||||||||||||
| (in millions) | Corporate Debt Securities |
Residential Mortgage Backed Securities |
Asset Backed Securities |
Total | Fixed Deferred Indexed Annuity Ceded Embedded Derivatives |
|||||||||||||||
| Balance at January 1, 2024 |
$ | 452 | $ | — | $ | 555 | $ | 1,007 | $ | 51 | ||||||||||
| Total gains (losses) included in: |
||||||||||||||||||||
| Net income |
1 | — | — | 1 | (1) | 8 | ||||||||||||||
| Other comprehensive income (loss) |
1 | — | 15 | 16 | — | |||||||||||||||
| Purchases |
227 | 64 | 334 | 625 | — | |||||||||||||||
| Settlements |
(109 | ) | (1 | ) | — | (110 | ) | (4 | ) | |||||||||||
| Transfers out of Level 3 |
— | (63 | ) | (23 | ) | (86 | ) | — | ||||||||||||
| Balance at December 31, 2024 |
$ | 572 | $ | — | $ | 881 | $ | 1,453 | $ | 55 | ||||||||||
| Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2024 |
$ | 1 | $ | — | $ | — | $ | 1 | (1) | $ | — | |||||||||
| Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2024 |
$ | (2 | ) | $ | — | $ | 15 | $ | 13 | $ | — | |||||||||
| Policyholder Account Balances, Future Policy Benefits and Claims |
||||||||||||||||
| (in millions) | Fixed Deferred Indexed Annuity Embedded Derivatives |
IUL Embedded Derivatives |
Structured Variable Annuity Embedded Derivatives |
Total | ||||||||||||
| Balance at January 1, 2024 |
$ | 49 | $ | 873$1,011 | $ | 1,933 | ||||||||||
| Total (gains) losses included in: |
||||||||||||||||
| Net income |
8 | (2) | 255 | (2) | 1,670 | (3) | 1,933 | |||||||||
| Issues |
— | 23 | 114 | 137 | ||||||||||||
| Settlements |
(4 | ) | (149 | ) | (334 | ) | (487 | ) | ||||||||
| Balance at December 31, 2024 |
$ | 53 | $ | 1,002 | $ | 2,461 | $ | 3,516 | ||||||||
| Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2024 |
$ | — | $ | 255 | (2) | $ | 1,670 | (3) | $ | 1,925 | ||||||
| Available-for-Sale Securities | Receivables | |||||||||||||||
| (in millions) | Corporate Debt Securities |
Asset Backed Securities |
Total | Fixed Deferred Indexed Annuity Ceded Embedded Derivatives |
||||||||||||
| Balance at January 1, 2023 |
$ | 395 | $ | 545 | $ | 940 | $ | 48 | ||||||||
| Total gains (losses) included in: |
||||||||||||||||
| Net income |
— | — | — | (1) | 6 | |||||||||||
| Other comprehensive income (loss) |
12 | 10 | 22 | — | ||||||||||||
| Purchases |
110 | — | 110 | — | ||||||||||||
| Settlements |
(65 | ) | — | (65 | ) | (3 | ) | |||||||||
| Balance at December 31, 2023 |
$ | 452 | $ | 555 | $ | 1,007 | $ | 51 | ||||||||
| Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2023 |
$ | 11 | $ | 10 | $ | 21 | $ | — | ||||||||
F-65
Table of Contents
RiverSource Life Insurance Company
| Policyholder Account Balances, Future Policy Benefits and Claims |
||||||||||||||||
| (in millions) | Fixed Deferred Indexed Annuity Embedded Derivatives |
IUL Embedded Derivatives |
Structured Variable Annuity Embedded Derivatives |
Total | ||||||||||||
| Balance at January 1, 2023 |
$ 44 | $ 739 | $ (137) | (4) | $ 646 | |||||||||||
| Total (gains) losses included in: |
||||||||||||||||
| Net income |
8 | 2) | 198 | (2) | 1,166 | (3) | 1,372 | |||||||||
| Issues |
— | 59 | 104 | 163 | ||||||||||||
| Settlements |
(3) | (123) | (122) | (248) | ||||||||||||
| Balance at December 31, 2023 |
$ 49 | $ 873 | $1,011 | $1,933 | ||||||||||||
| Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2023 |
$ — | $ 198 | (2) | $1,166 | (3) | $1,364 | ||||||||||
| Available-for-Sale Securities | Receivables | |||||||||||||||||||
| (in millions) | Corporate Debt Securities |
Commercial Mortgage Backed Securities |
Asset Backed Securities |
Total | Fixed Deferred Indexed Annuity Ceded Embedded Derivatives |
|||||||||||||||
| Balance at January 1, 2022 |
$ | 496 | $ | — | $ | 291 | $ | 787 | $ | 59 | ||||||||||
| Total gains (losses) included in: |
||||||||||||||||||||
| Net income |
(1 | ) | — | — | (1 | )(1) | (8 | ) | ||||||||||||
| Other comprehensive income (loss) |
(44 | ) | — | (25 | ) | (69 | ) | — | ||||||||||||
| Purchases |
29 | 30 | 564 | 623 | — | |||||||||||||||
| Settlements |
(85 | ) | — | (285 | ) | (370 | ) | (3 | ) | |||||||||||
| Transfers out of Level 3 |
— | (30 | ) | — | (30 | ) | — | |||||||||||||
| Balance at December 31, 2022 |
$ | 395 | $ | — | $ | 545 | $ | 940 | $ | 48 | ||||||||||
| Changes in unrealized gains (losses) in net income relating to assets held at December 31, 2022 |
$ | (1) | $ | — | $ | — | $ | (1)(1) | $ | — | ||||||||||
| Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at December 31, 2022 |
$ |
|
(42) |
$ | — | $ | (21) | $ | (63) | $ | — | |||||||||
| Policyholder Account Balances, Future Policy Benefits and Claims |
||||||||||||||||
| (in millions) | Fixed Deferred Indexed Annuity Embedded Derivatives |
IUL Embedded Derivatives |
Structured Variable Annuity Embedded Derivatives |
Total | ||||||||||||
| Balance at January 1, 2022 |
$56 | $ 905 | $ 406 | $1,367 | ||||||||||||
| Total (gains) losses included in: |
||||||||||||||||
| Net income |
(9) | (2) | (105)(2) | (633)(3) | (747) | |||||||||||
| Issues |
— | 51 | 90 | 141 | ||||||||||||
| Settlements |
(3) | (112) | — | (115) | ||||||||||||
| Balance at December 31, 2022 |
$44 | $ 739 | $(137)(4) | $ 646 | ||||||||||||
| Changes in unrealized (gains) losses in net income relating to liabilities held at December 31, 2022 |
$— | $(105)(2) | $(633)(3) | $ (738) | ||||||||||||
| (1) | Included in Net investment income. |
| (2) | Included in Interest credited to fixed accounts. |
| (3) | Included in Benefits, claims, losses and settlement expenses. |
| (4) | The fair value of the structured variable annuity embedded derivatives was a net asset as of January 1, 2023 and December 31, 2022 and the amounts are presented as contra liabilities. |
The increase to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $14 million, $51 million and $45 million, net of the reinsurance accrual, for the years ended December 31, 2024, 2023 and 2022, respectively.
F-66
Table of Contents
RiverSource Life Insurance Company
Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third-party pricing service with observable inputs or fair values that were included in an observable transaction with a market participant. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote.
The following tables provide a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities:
| December 31, 2024 | ||||||||||||||||||||||
| Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average |
||||||||||||||||||
| (in millions) | ||||||||||||||||||||||
| Corporate debt securities (private placements) | $ | 572 | Discounted cash flow | Yield/spread to U.S. Treasuries(1) | 0.8% | – | 1.7% | 1.2 | % | |||||||||||||
| Asset backed securities | $ | 881 | Discounted cash flow | Annual default rate(2) | 2.2% | – | 4.4% | 3.6 | % | |||||||||||||
| Loss severity | 25.0% | 25.0 | % | |||||||||||||||||||
| Constant prepayment rate(2) | 0.0% | – | 1.0% | 0.4 | % | |||||||||||||||||
| Yield/spread to U.S. Treasuries(3) | 190 bps | – | 360 bps | 205 bps | ||||||||||||||||||
| Fixed deferred indexed annuity ceded embedded derivatives | $ | 55 | Discounted cash flow | Surrender rate(4) | 0.0% | – | 89.1% | 10.6 | % | |||||||||||||
| Fixed deferred indexed annuity embedded derivatives | $ | 53 | Discounted cash flow | Surrender rate(4) | 0.0% | – | 89.1% | 10.6 | % | |||||||||||||
| Nonperformance risk(5) | 65 bps | 65 bps | ||||||||||||||||||||
| IUL embedded derivatives | $ | 1,002 | Discounted cash flow | Nonperformance risk(5) | 65 bps | 65 bps | ||||||||||||||||
| Structured variable annuity embedded derivatives | $ | 2,461 | Discounted cash flow | Surrender rate(4) | 0.5% | – | 75.0% | 1.7 | % | |||||||||||||
| Nonperformance risk(5) | 65 bps | 65 bps | ||||||||||||||||||||
| December 31, 2023 | ||||||||||||||||||||||
| Fair Value | Valuation Technique | Unobservable Input | Range | Weighted Average |
||||||||||||||||||
| (in millions) | ||||||||||||||||||||||
| Corporate debt securities (private placements) | $ | 451 | Discounted cash flow | Yield/spread to U.S. Treasuries(1) | 1.0% | – | 2.4% | 1.2 | % | |||||||||||||
| Asset backed securities | $ | 555 | Discounted cash flow | Annual default rate(2) | 3.1% | 3.1 | % | |||||||||||||||
| Loss severity | 25.0% | 25.0 | % | |||||||||||||||||||
| Yield/spread to U.S. Treasuries(3) | 275 bps | – | 515 bps | 284 bps | ||||||||||||||||||
| Fixed deferred indexed annuity ceded embedded derivatives | $ | 51 | Discounted cash flow | Surrender rate(4) | 0.0% | – | 66.8% | 1.4 | % | |||||||||||||
| Fixed deferred indexed annuity embedded derivatives | $ | 49 | Discounted cash flow | Surrender rate(4) | 0.0% | – | 66.8% | 1.4 | % | |||||||||||||
| Nonperformance risk(5) | 85 bps | 85 bps | ||||||||||||||||||||
| IUL embedded derivatives | $ | 873 | Discounted cash flow | Nonperformance risk(5) | 85 bps | 85 bps | ||||||||||||||||
| Structured variable annuity embedded derivatives | $ | 1,011 | Discounted cash flow | Surrender rate(4) | 0.5% | – | 75.0% | 2.6 | % | |||||||||||||
| Nonperformance risk(5) | 85 bps | 85 bps | ||||||||||||||||||||
| (1) | The weighted average for the yield/spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities. |
| (2) | The weighted average for both the annual default rate and the constant prepayment rate for asset backed securities are weighted based on the balances of each security. |
| (3) | The weighted average for the yield/spread to U.S. Treasuries for asset backed securities is calculated as the sum of each tranche’s balance multiplied by its spread to U.S. Treasuries divided by the aggregate balances of the tranches. |
| (4) | The weighted average surrender rate represents the average assumption weighted based on the account value of each contract. |
| (5) | The nonperformance risk is the spread added to the U.S. Treasury curve. |
| Level 3 | measurements not included in the tables above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company or fair values estimated based on a transaction near the balance sheet date. |
Uncertainty of Fair Value Measurements
Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities and asset backed securities in isolation would have resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in the annual default rate, loss severity, and constant prepayment rate used in the fair value measurement of Level 3 asset backed securities in isolation, generally, would have resulted in a significantly lower (higher) fair value measurement and significant increases (decreases) in loss severity in isolation would have resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in the surrender assumption used in the fair value measurement of the fixed deferred indexed annuity ceded embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement.
F-67
Table of Contents
RiverSource Life Insurance Company
Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement.
Significant increases (decreases) in nonperformance risk and surrender assumption used in the fair value measurements of the fixed deferred indexed annuity embedded derivatives and structured variable annuity embedded derivatives in isolation would have resulted in a significantly lower (higher) liability value.
Determination of Fair Value
The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company’s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company’s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs.
The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy.
Assets
Available-for-Sale Securities
When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third-party pricing services, non-binding broker quotes, or other model-based valuation techniques.
| Level 1 | securities primarily include U.S. Treasuries. |
| Level 2 | securities primarily include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, state and municipal obligations, asset backed securities and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third-party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. The fair value of securities included in an observable transaction with a market participant are also considered Level 2 when the market is not active. |
| Level 3 | securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities with fair value typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote. The fair value of affiliated asset backed securities is determined using a discounted cash flow model. Inputs used to determine the expected cash flows include assumptions about discount rates and default, prepayment and recovery rates of the underlying assets. Given the significance of the unobservable inputs to this fair value measurement, the fair value of the investment in the affiliated asset backed securities is classified as Level 3. |
Management is responsible for the fair values recorded on the financial statements. Prices received from third-party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third-party pricing services. The Company’s due diligence procedures include assessing the vendor’s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise.
Cash Equivalents
Cash equivalents include time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. U.S. Treasuries are also classified as Level 1. The Company’s remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization.
Receivables
The Company reinsured its fixed deferred indexed annuity products which have an indexed account that is accounted for as an embedded derivative. The Company uses discounted cash flow models to determine the fair value of these ceded embedded derivatives. The fair value of fixed deferred indexed annuity ceded embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates. Given the significance of the unobservable surrender rates, these embedded derivatives are classified as Level 3.
F-68
Table of Contents
RiverSource Life Insurance Company
Other Assets
Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The counterparties’ nonperformance risk associated with uncollateralized derivative assets was immaterial as of both December 31, 2024 and 2023. See Note 17 and Note 18 for further information on the credit risk of derivative instruments and related collateral.
Separate Account Assets
The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy.
Liabilities
Policyholder Account Balances, Future Policy Benefits and Claims
There is no active market for the transfer of the Company’s embedded derivatives attributable to the provisions of fixed deferred indexed annuity, structured variable annuity and IUL products.
The Company uses a discounted cash flow model to determine the fair value of the embedded derivatives associated with the provisions of its equity index annuity product. The projected cash flows generated by this model are based on significant observable inputs related to interest rates, volatilities and equity index levels and, therefore, are classified as Level 2.
The Company uses discounted cash flow models to determine the fair value of the embedded derivatives associated with the provisions of its fixed deferred indexed annuity, structured variable annuity and IUL products. The structured variable annuity product is a limited flexible purchase payment annuity that offers 45 different indexed account options providing equity market exposure and a fixed account. Each indexed account includes a protection option (a buffer or a floor). If the index has a negative return, contractholder losses will be reduced by a buffer or limited to a floor. The portion allocated to an indexed account is accounted for as an embedded derivative. The fair value of fixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and significant unobservable surrender rates and the estimate of the Company’s nonperformance risk. Given the significance of the unobservable surrender rates and the nonperformance risk assumption, the fixed deferred indexed annuity, structured variable annuity and IUL embedded derivatives are classified as Level 3.
The embedded derivatives attributable to these provisions are recorded in Policyholder account balances, future policy benefits and claims.
Other Liabilities
Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The Company’s nonperformance risk associated with uncollateralized derivative liabilities was immaterial as of both December 31, 2024 and 2023. See Note 17 and Note 18 for further information on the credit risk of derivative instruments and related collateral.
Fair Value on a Nonrecurring Basis
The Company assesses its investment in affordable housing partnerships for impairment. The investments that are determined to be impaired are written down to their fair value. The Company uses a discounted cash flow model to measure the fair value of these investments. Inputs to the discounted cash flow model are estimates of future net operating losses and tax credits available to the Company and discount rates based on market condition and the financial strength of the syndicator (general partner). The balance of affordable housing partnerships measured at fair value on a nonrecurring basis was $27 million and $41 million as of December 31, 2024 and 2023, respectively, and is classified as Level 3 in the fair value hierarchy.
F-69
Table of Contents
RiverSource Life Insurance Company
Assets and Liabilities Not Reported at Fair Value
The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value:
| December 31, 2024 | ||||||||||||||||||||
| Carrying Value |
Fair Value | |||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
| Financial Assets |
||||||||||||||||||||
| Mortgage loans, net |
$ | 1,797 | $ | — | $ | — | $ | 1,675 | $ | 1,675 | ||||||||||
| Policy loans |
982 | — | 982 | — | 982 | |||||||||||||||
| Other investments |
55 | — | 36 | 19 | 55 | |||||||||||||||
| Receivables |
5,834 | — | — | 4,795 | 4,795 | |||||||||||||||
| Financial Liabilities |
||||||||||||||||||||
| Policyholder account balances, future policy benefits and claims |
$ | 20,097 | $ | — | $ | — | $ | 16,826 | $ | 16,826 | ||||||||||
| Short-term borrowings |
201 | — | 201 | — | 201 | |||||||||||||||
| Long-term debt |
500 | — | 312 | — | 312 | |||||||||||||||
| Other liabilities |
5 | — | — | 4 | 4 | |||||||||||||||
| Separate account liabilities — investment contracts |
364 | — | 364 | — | 364 | |||||||||||||||
| December 31, 2023 | ||||||||||||||||||||
| Carrying Value |
Fair Value | |||||||||||||||||||
| (in millions) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
| Financial Assets |
||||||||||||||||||||
| Mortgage loans, net |
$ | 1,725 | $ | — | $ | — | $ | 1,599 | $ | 1,599 | ||||||||||
| Policy loans |
912 | — | 912 | — | 912 | |||||||||||||||
| Other investments |
76 | — | 54 | 22 | 76 | |||||||||||||||
| Receivables |
6,514 | — | — | 5,566 | 5,566 | |||||||||||||||
| Financial Liabilities |
||||||||||||||||||||
| Policyholder account balances, future policy benefits and claims |
$ | 16,641 | $ | — | $ | — | $ | 14,243 | $ | 14,243 | ||||||||||
| Short-term borrowings |
201 | — | 201 | — | 201 | |||||||||||||||
| Long-term debt |
500 | — | 339 | — | 339 | |||||||||||||||
| Other liabilities |
5 | — | — | 5 | 5 | |||||||||||||||
| Separate account liabilities — investment contracts |
332 | — | 332 | — | 332 | |||||||||||||||
Other investments include syndicated loans and the Company’s membership in the FHLB. Receivables include deposit receivables. See Note 7 for additional information on mortgage loans, policy loans, syndicated loans and deposit receivables.
Policyholder account balances, future policy benefits and claims include fixed annuities in deferral status, non-life contingent fixed annuities in payout status, indexed and structured variable annuity host contracts, and the fixed portion of a small number of variable annuity contracts classified as investment contracts. See Note 10 for additional information on these liabilities. Short- term borrowings include FHLB borrowings. Long-term debt includes the surplus note with Ameriprise Financial. See Note 13 for further information on short-term borrowings and long-term debt. Other liabilities include future funding commitments to affordable housing partnerships and other real estate partnerships. Separate account liabilities are related to certain annuity products that are classified as investment contracts.
15. RELATED PARTY TRANSACTIONS
Revenues
See Note 4 for information about revenues from contracts with customers earned by the Company from related party transactions with affiliates.
The Company is the lessor of one real estate property which it leases to Ameriprise Financial under an operating lease that expires November 30, 2029. The Company earned $5 million in rental income for each of the years ended December 31, 2024, 2023 and 2022, which is reflected in Other revenues. The Company expects to earn $5 million in each year of the next four annual periods and $4 million in the period ending November 30, 2029.
Expenses
Charges by Ameriprise Financial and affiliated companies to the Company for use of joint facilities, technology support, marketing services and other services aggregated $352 million, $338 million and $320 million for the years ended December 31, 2024, 2023 and 2022, respectively. Certain of these costs are included in DAC. Expenses allocated to the Company may not be reflective of expenses that would have been incurred by the Company on a stand-alone basis.
F-70
Table of Contents
RiverSource Life Insurance Company
Income Taxes
The Company’s taxable income is included in the consolidated federal income tax return of Ameriprise Financial. The net amount due from Ameriprise Financial for federal income taxes was $277 million and $269 million as of December 31, 2024 and 2023, respectively, which is reflected in Other assets.
Investments
In June of 2024, the Company invested $310 million in AA, A and BBB rated asset backed securities issued by Ameriprise Installment Financing, LLC. The asset backed securities are collateralized by a portfolio of loans issued to advisors affiliated with AFS, an affiliated broker dealer. As of December 31, 2024, the fair value of these asset backed securities was $312 million. The fair value of these asset backed securities is reported in Investments: Available-for-Sale Fixed maturities, at fair value. Interest income from these asset backed securities was $10 million for the year ending December 31, 2024 and is reported in Net investment income.
In September of 2022, the Company redeemed the outstanding AA and A rated securities issued by Ameriprise Advisor Financing, LLC (“AAF”) at par and invested $564 million in new AA, A and BBB rated asset backed securities issued by AAF 2. As of December 31, 2024 and 2023, the fair value of these asset backed securities was $567 million and $554 million, respectively. The fair value of these asset backed securities is reported in Investments: Available-for-Sale Fixed maturities, at fair value. Interest income from these asset backed securities was $34 million, $34 million and $17 million for the years ended December 31, 2024, 2023 and 2022, respectively, and is reported in Net investment income.
Lines of Credit
RiverSource Life Insurance Company, as the lender, has a revolving credit agreement with Ameriprise Financial as the borrower. This line of credit is not to exceed 3% of RiverSource Life Insurance Company’s statutory admitted assets as of the prior year end. The interest rate under the agreement is an Adjusted Daily Simple SOFR plus an applicable margin subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. In the event of default, an additional 1% interest will accrue during such period of default. There were no amounts outstanding on this revolving credit agreement as of both December 31, 2024 and 2023. See Note 13 for information about additional lines of credit with an affiliate.
Long-Term Debt
See Note 13 for information about a surplus note to an affiliate.
Dividends, Return of Capital, or Distributions
Cash dividends and return of capital or distributions paid and received by RiverSource Life Insurance Company were as follows:
| Years Ended December 31, | ||||||||||||
| (in millions) | 2024 | 2023 | 2022 | |||||||||
| Dividends paid to Ameriprise Financial |
$ | 600 | $ | 600 | $ | 600 | ||||||
| Dividend received from RiverSource Life of NY |
50 | 50 | 63 | |||||||||
| Return of capital received from RTA |
40 | 75 | 80 | |||||||||
For dividends and other distributions from the life insurance companies, advance notification was provided to state insurance regulators prior to payments. See Note 16 for additional information.
16. REGULATORY REQUIREMENTS
The National Association of Insurance Commissioners (“NAIC”) defines Risk-Based Capital (“RBC”) requirements for insurance companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory actions designed to protect policyholders. These requirements apply to the Company. The Company has met its minimum RBC requirements.
Insurance companies are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of their respective states of domicile, which vary materially from GAAP. Prescribed statutory accounting practices include publications of the NAIC, as well as state laws, regulations and general administrative rules. The more significant differences from GAAP include charging policy acquisition costs to expense as incurred, establishing annuity and insurance reserves using different actuarial methods and assumptions, classifying surplus notes as a component of statutory surplus rather than debt, valuing investments on a different basis and excluding certain assets from the balance sheet by charging them directly to surplus, such as a portion of the net deferred income tax assets.
F-71
Table of Contents
RiverSource Life Insurance Company
State insurance statutes contain limitations as to the amount of dividends and other distributions that insurers may make without providing prior notification to state regulators. For RiverSource Life Insurance Company, payments in excess of unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce (“MN DOC”), RiverSource Life Insurance Company’s primary regulator, and are subject to potential disapproval. RiverSource Life Insurance Company’s statutory unassigned deficit was $736 million and $582 million as of December 31, 2024 and 2023, respectively.
In addition, dividends or distributions whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceed the greater of the previous year’s statutory net gain from operations or 10% of the previous year- end statutory capital and surplus are referred to as “extraordinary dividends.” Extraordinary dividends also require advance notice to the MN DOC, and are subject to potential disapproval. Statutory capital and surplus was $2.7 billion and $3.1 billion as of December 31, 2024 and 2023, respectively.
Statutory net gain from operations and net income for RiverSource Life Insurance Company are summarized as follows:
| Years Ended December 31, | ||||||||||||
| (in millions) | 2024 | 2023 | 2022 | |||||||||
| Statutory net gain from operations |
$ | 1,097 | $ | 1,331 | $ | 1,615 | ||||||
| Statutory net income (loss) |
(91 | ) | 845 | 1,769 | ||||||||
Government debt securities of $4 million as of both December 31, 2024 and 2023 were on deposit with various states as required by law.
17. OFFSETTING ASSETS AND LIABILITIES
Certain financial instruments and derivative instruments are eligible for offset in the Consolidated Balance Sheets. The Company’s derivative instruments are subject to master netting and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Consolidated Balance Sheets.
The following tables present the gross and net information about the Company’s assets subject to master netting arrangements:
| December 31, 2024 | ||||||||||||||||||||||||||||
| Gross Amounts of |
Gross Amounts Offset in the Consolidated Balance Sheets |
Amounts of Assets Presented in |
Gross Amounts Not Offset in the Consolidated Balance Sheets |
Net Amount |
||||||||||||||||||||||||
| (in millions) | Financial Instruments(1) |
Cash Collateral |
Securities Collateral |
|||||||||||||||||||||||||
| Derivatives: |
||||||||||||||||||||||||||||
| OTC |
$ | 9,111 | $ | — | $ | 9,111 | $ | (5,555 | ) | $ | (1,550 | ) | $ | (1,970 | ) | $ | 36 | |||||||||||
| OTC cleared |
10 | — | 10 | (10 | ) | — | — | — | ||||||||||||||||||||
| Exchange-traded |
102 | — | 102 | (17 | ) | — | — | 85 | ||||||||||||||||||||
| Total |
$ | 9,223 | $ | — | $ | 9,223 | $ | (5,582 | ) | $ | (1,550 | ) | $ | (1,970 | ) | $ | 121 | |||||||||||
| December 31, 2023 | ||||||||||||||||||||||||||||
| Gross Amounts of |
Gross Amounts Offset in the Consolidated Balance Sheets |
Amounts of Assets Presented in |
Gross Amounts Not Offset in the Consolidated Balance Sheets |
Net Amount |
||||||||||||||||||||||||
| (in millions) | Financial Instruments(1) |
Cash Collateral |
Securities Collateral |
|||||||||||||||||||||||||
| Derivatives: |
||||||||||||||||||||||||||||
| OTC |
$ | 5,170 | $ | — | $ | 5,170 | $ | (3,694 | ) | $ | (1,101 | ) | $ | (357 | ) | $ | 18 | |||||||||||
| OTC cleared |
9 | — | 9 | (9 | ) | — | — | — | ||||||||||||||||||||
| Exchange-traded |
38 | — | 38 | (18 | ) | — | — | 20 | ||||||||||||||||||||
| Total |
$ | 5,217 | $ | — | $ | 5,217 | $ | (3,721 | ) | $ | (1,101 | ) | $ | (357 | ) | $ | 38 | |||||||||||
| (1) | Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
F-72
Table of Contents
RiverSource Life Insurance Company
The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements:
| December 31, 2024 | ||||||||||||||||||||||||||||
| Gross Amounts of |
Gross Amounts Offset in the Consolidated Balance Sheets |
Amounts of Liabilities Presented in |
Gross Amounts Not Offset in the Consolidated Balance Sheets |
Net Amount |
||||||||||||||||||||||||
| (in millions) | Financial Instruments(1) |
Cash Collateral |
Securities Collateral |
|||||||||||||||||||||||||
| Derivatives: |
||||||||||||||||||||||||||||
| OTC |
$ | 5,622 | $ | — | $ | 5,622 | $ | (5,555 | ) | $ | — | $ | (67 | ) | $ | — | ||||||||||||
| OTC cleared |
18 | — | 18 | (10 | ) | — | — | 8 | ||||||||||||||||||||
| Exchange-traded |
22 | — | 22 | (17 | ) | — | — | 5 | ||||||||||||||||||||
| Total |
$ | 5,662 | $ | — | $ | 5,662 | $ | (5,582 | ) | $ | — | $ | (67 | ) | $ | 13 | ||||||||||||
| December 31, 2023 | ||||||||||||||||||||||||||||
| Gross Amounts of |
Gross Amounts Offset in the Consolidated Balance Sheets |
Amounts of Liabilities Presented in |
Gross Amounts Not Offset in the Consolidated Balance Sheets |
Net Amount |
||||||||||||||||||||||||
| (in millions) | Financial Instruments(1) |
Cash Collateral |
Securities Collateral |
|||||||||||||||||||||||||
| Derivatives: |
||||||||||||||||||||||||||||
| OTC |
$ | 3,812 | $ | — | $ | 3,812 | $ | (3,694 | ) | $ | (34 | ) | $ | (78 | ) | $ | 6 | |||||||||||
| OTC cleared |
35 | — | 35 | (9 | ) | — | — | 26 | ||||||||||||||||||||
| Exchange-traded |
18 | — | 18 | (18 | ) | — | — | — | ||||||||||||||||||||
| Total |
$ | 3,865 | $ | — | $ | 3,865 | $ | (3,721 | ) | $ | (34 | ) | $ | (78 | ) | $ | 32 | |||||||||||
| (1) | Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |
In the tables above, the amount of assets or liabilities presented are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables.
When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral.
Freestanding derivative instruments are reflected in Other assets and Other liabilities. Cash collateral pledged by the Company is reflected in Other assets and cash collateral accepted by the Company is reflected in Other liabilities. See Note 18 for additional disclosures related to the Company’s derivative instruments and Note 5 for information related to derivatives held by consolidated investment entities.
18. DERIVATIVES AND HEDGING ACTIVITIES
Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company’s products and operations.
Certain of the Company’s freestanding derivative instruments are subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Consolidated Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 17 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral.
F-73
Table of Contents
RiverSource Life Insurance Company
Generally, the Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:
| December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||
| Notional | Gross Fair Value | Notional | Gross Fair Value | |||||||||||||||||||||
| (in millions) | Assets(1) | Liabilities(2) | Assets(1) | Liabilities(2) | ||||||||||||||||||||
| Derivatives not designated as hedging instruments |
||||||||||||||||||||||||
| Interest rate contracts |
$ | 39,082 | $ | 179 | $ | 324 | $ | 42,516 | $ | 185 | $ | 305 | ||||||||||||
| Equity contracts |
108,205 | 8,943 | 5,331 | 81,905 | 5,010 | 3,450 | ||||||||||||||||||
| Credit contracts |
2,914 | 59 | — | 3,375 | 1 | 106 | ||||||||||||||||||
| Foreign exchange contracts |
2,938 | 42 | 7 | 2,952 | 21 | 4 | ||||||||||||||||||
| Total non-designated hedges |
153,139 | 9,223 | 5,662 | 130,748 | 5,217 | 3,865 | ||||||||||||||||||
| Embedded derivatives |
||||||||||||||||||||||||
| IUL |
N/A | — | 1,002 | N/A | — | 873 | ||||||||||||||||||
| Fixed deferred indexed annuities and deposit receivables |
N/A | 55 | 53 | N/A | 51 | 52 | ||||||||||||||||||
| Structured variable annuities (3) |
N/A | — | 2,461 | N/A | — | 1,011 | ||||||||||||||||||
| Total embedded derivatives |
N/A | 55 | 3,516 | N/A | 51 | 1,936 | ||||||||||||||||||
| Total derivatives |
$ | 153,139 | $ | 9,278 | $ | 9,178 | $ | 130,748 | $ | 5,268 | $ | 5,801 | ||||||||||||
N/A Not applicable.
| (1) | The fair value of freestanding derivative assets is included in Other assets and the fair value of ceded embedded derivative assets related to deposit receivables is included in Receivables. |
| (2) | The fair value of freestanding derivative liabilities is included in Other liabilities. The fair value of IUL, fixed deferred indexed annuity and structured variable annuity embedded derivatives is included in Policyholder account balances, future policy benefits and claims. |
| (3) | The fair value of the structured variable annuity embedded derivatives as of December 31, 2024 included $2.5 billion of individual contracts in a liability position and $3 million of individual contracts in an asset position. The fair value of the structured variable annuity embedded derivatives as of December 31, 2023 included $1.0 billion of individual contracts in a liability position and $15 million of individual contracts in an asset position. |
See Note 14 for additional information regarding the Company’s fair value measurement of derivative instruments.
As of both December 31, 2024 and 2023, investment securities with a fair value of $1.5 billion were pledged to meet contractual obligations under derivative contracts, of which $84 million and $145 million, respectively, may be sold, pledged or rehypothecated by the counterparty. As of December 31, 2024 and 2023, investment securities with a fair value of $2.2 billion and $376 million, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which $2.0 billion and $314 million, respectively, may be sold, pledged or rehypothecated by the Company. As of both December 31, 2024 and 2023, the Company had sold, pledged, or rehypothecated none of these securities. In addition, as of both December 31, 2024 and 2023, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets.
The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Consolidated Statements of Income:
| (in millions) |
Benefits, Expenses |
Interest Credited to Fixed Accounts |
Change in Fair Benefits |
|||||||||
| Year Ended December 31, 2024 |
| |||||||||||
| Interest rate contracts |
$ | (10 | ) | $ | — | $ | (1,128 | ) | ||||
| Equity contracts |
1,419 | 71 | (1,021 | ) | ||||||||
| Credit contracts |
— | — | 124 | |||||||||
| Foreign exchange contracts |
— | — | 64 | |||||||||
| IUL embedded derivatives |
— | (106 | ) | — | ||||||||
| Fixed deferred indexed annuity and deposit receivables embedded derivatives |
— | 16 | — | |||||||||
| Structured variable annuity embedded derivatives |
(1,670 | ) | — | — | ||||||||
| Total gain (loss) |
$ | (261 | ) | $ | (19 | ) | $ | (1,961 | ) | |||
F-74
Table of Contents
RiverSource Life Insurance Company
| (in millions) |
Benefits, Expenses |
Interest Credited to Fixed Accounts |
Change in Fair Benefits |
|||||||||
| Year Ended December 31, 2023 |
| |||||||||||
| Interest rate contracts |
$ | (5 | ) | $ | — | $ | (422 | ) | ||||
| Equity contracts |
770 | 79 | (1,239 | ) | ||||||||
| Credit contracts |
— | — | 7 | |||||||||
| Foreign exchange contracts |
— | — | 5 | |||||||||
| IUL embedded derivatives |
— | (75 | ) | — | ||||||||
| Fixed deferred indexed annuity and deposit receivables embedded derivatives |
— | (3 | ) | — | ||||||||
| Structured variable annuity embedded derivatives |
(1,166 | ) | — | — | ||||||||
| Total gain (loss) |
$ | (401 | ) | $ | 1 | $ | (1,649 | ) | ||||
| Year Ended December 31, 2022 |
||||||||||||
| Interest rate contracts |
$ | (26 | ) | $ | — | $ | (2,874 | ) | ||||
| Equity contracts |
(164 | ) | (126 | ) | 899 | |||||||
| Credit contracts |
— | — | 279 | |||||||||
| Foreign exchange contracts |
— | — | 105 | |||||||||
| IUL embedded derivatives |
— | 217 | — | |||||||||
| Fixed deferred indexed annuity and deposit receivables embedded derivatives |
— | 4 | — | |||||||||
| Structured variable annuity embedded derivatives |
633 | — | — | |||||||||
| Total gain (loss) |
$ | 443 | $ | 95 | $ | (1,591 | ) | |||||
The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate, credit and foreign currency exchange rate risk related to various products and transactions of the Company.
The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options as of December 31, 2024:
| (in millions) | Premiums Payable |
Premiums Receivable |
||||||
| 2025 |
$ | 119 | $ | 20 | ||||
| 2026 |
246 | 88 | ||||||
| 2027 |
19 | — | ||||||
| 2028 |
29 | — | ||||||
| 2029 |
135 | — | ||||||
| 2030-2031 |
234 | — | ||||||
| Total |
$ | 782 | $ | 108 | ||||
Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received.
Structured variable annuity and IUL products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to structured variable annuity and IUL products will positively or negatively impact earnings over the life of these products. The equity components of structured variable annuity and IUL product obligations are considered embedded derivatives, which are bifurcated from their host contracts for valuation purposes and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As a means of economically hedging its obligations under the provisions of these products, the Company enters into interest rate swaps, index options and futures contracts.
As discussed in Note 12, the Company issues variable annuity contracts that provide protection to contractholders from other- than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. The Company economically hedges its obligations under these market risk benefits using options, swaptions, swaps and futures.
F-75
Table of Contents
RiverSource Life Insurance Company
Credit Risk
Credit risk associated with the Company’s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting and collateral arrangements whenever practical. See Note 17 for additional information on the Company’s credit exposure related to derivative assets.
Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s financial strength rating (or based on the debt rating of the Company’s parent, Ameriprise Financial). Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company does not maintain a specific financial strength rating or Ameriprise Financial’s debt does not maintain a specific credit rating (generally an investment grade rating). If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position. As of December 31, 2024 and 2023, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $67 million and $62 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2024 and 2023 was $67 million and $55 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of both December 31, 2024 and 2023 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been nil and $7 million as of December 31, 2024 and 2023, respectively.
19. SHAREHOLDER’S EQUITY
The following tables present the amounts related to each component of OCI:
| Year Ended December 31, 2024 | ||||||||||||
| (in millions) | Pretax | Income Tax Benefit (Expense) |
Net of Tax | |||||||||
| Net unrealized gains (losses) on securities: |
||||||||||||
| Net unrealized gains (losses) on securities arising during the period(1) |
$ | (383 | ) | $ | 82 | $ | (301 | ) | ||||
| Reclassification of net (gains) losses on securities included in net income(2) |
11 | (2 | ) | 9 | ||||||||
| Impact of benefit reserves and reinsurance recoverables |
20 | (4 | ) | 16 | ||||||||
| Net unrealized gains (losses) on securities |
(352 | ) | 76 | (276 | ) | |||||||
| Effect of changes in discount rate assumptions on certain long-duration contracts |
194 | (41 | ) | 153 | ||||||||
| Effect of changes in instrument-specific credit risk on market risk benefits (“MRBs”) |
(79 | ) | 17 | (62 | ) | |||||||
| Total other comprehensive income (loss) |
$ | (237 | ) | $ | 52 | $ | (185 | ) | ||||
| Year Ended December 31, 2023 | ||||||||||||
| (in millions) | Pretax | Income Tax Benefit (Expense) |
Net of Tax | |||||||||
| Net unrealized gains (losses) on securities: |
||||||||||||
| Net unrealized gains (losses) on securities arising during the period(1) |
$ | 652 | $ | (144 | ) | $ | 508 | |||||
| Reclassification of net (gains) losses on securities included in net income(2) |
27 | (7 | ) | 20 | ||||||||
| Impact of benefit reserves and reinsurance recoverables |
(24 | ) | 5 | (19 | ) | |||||||
| Net unrealized gains (losses) on securities |
655 | (146 | ) | 509 | ||||||||
| Effect of changes in discount rate assumptions on certain long-duration contracts |
(69 | ) | 15 | (54 | ) | |||||||
| Effect of changes in instrument-specific credit risk on MRBs |
(83 | ) | 18 | (65 | ) | |||||||
| Total other comprehensive income (loss) |
$ | 503 | $ | (113 | ) | $ | 390 | |||||
F-76
Table of Contents
RiverSource Life Insurance Company
| Year Ended December 31, 2022 | ||||||||||||
| (in millions) | Pretax | Income Tax Benefit (Expense) |
Net of Tax | |||||||||
| Net unrealized gains (losses) on securities: |
||||||||||||
| Net unrealized gains (losses) on securities arising during the period(1) |
$ | (2,784 | ) | $ | 595 | $ | (2,189 | ) | ||||
| Reclassification of net (gains) losses on securities included in net income(2) |
88 | (19 | ) | 69 | ||||||||
| Impact of benefit reserves and reinsurance recoverables |
103 | (18 | ) | 85 | ||||||||
| Net unrealized gains (losses) on securities |
(2,593 | ) | 558 | (2,035 | ) | |||||||
| Effect of changes in discount rate assumptions on certain long-duration contracts |
1,095 | (234 | ) | 861 | ||||||||
| Effect of changes in instrument-specific credit risk on MRBs |
517 | (110 | ) | 407 | ||||||||
| Total other comprehensive income (loss) |
$ | (981 | ) | $ | 214 | $ | (767 | ) | ||||
| (1) | Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period. |
| (2) | Reclassification amounts are recorded in Net realized investment gains (losses). |
Other comprehensive income (loss) related to net unrealized gains (losses) on securities includes three components: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates.
The following table presents the changes in the balances of each component of AOCI, net of tax:
| (in millions) | Net Unrealized Gains (Losses) on Securities |
Effect of Assumptions |
Effect of Changes in Risk on MRBs |
Other | Total | |||||||||||||||
| Balance at January 1, 2022 |
$ | 1,044 | $ | (933 | ) | $ | (427 | ) | $ | (1 | ) | $ | (317 | ) | ||||||
| OCI before reclassifications |
(2,104 | ) | 861 | 407 | — | (836 | ) | |||||||||||||
| Amounts reclassified from AOCI |
69 | — | — | — | 69 | |||||||||||||||
| Total OCI |
(2,035 | ) | 861 | 407 | — | (767 | ) | |||||||||||||
| Balance at December 31, 2022 |
(991 | ) | (72 | ) | (20 | ) | (1 | ) | (1,084 | ) | ||||||||||
| OCI before reclassifications |
489 | (54 | ) | (65 | ) | — | 370 | |||||||||||||
| Amounts reclassified from AOCI |
20 | — | — | — | 20 | |||||||||||||||
| Total OCI |
509 | (54 | ) | (65 | ) | — | 390 | |||||||||||||
| Balance at December 31, 2023 |
(482 | ) | (126 | ) | (85 | ) | (1 | ) | (694 | ) | ||||||||||
| OCI before reclassifications |
(285 | ) | 153 | (62 | ) | — | (194 | ) | ||||||||||||
| Amounts reclassified from AOCI |
9 | — | — | — | 9 | |||||||||||||||
| Total OCI |
(276 | ) | 153 | (62 | ) | — | (185 | ) | ||||||||||||
| Balance at December 31, 2024 |
$ | (758 | ) | $ | 27 | $ | (147 | ) | $ | (1 | ) | $ | (879 | ) | ||||||
20. INCOME TAXES
The components of income tax provision (benefit) were as follows:
| Years Ended December 31, | ||||||||||||
| (in millions) | 2024 | 2023 | 2022 | |||||||||
| Current income tax |
||||||||||||
| Federal |
$ | (297 | ) | $ | (112 | ) | $ | 57 | ||||
| State |
(4 | ) | 2 | (2 | ) | |||||||
| Total current income tax |
(301 | ) | (110 | ) | 55 | |||||||
| Deferred income tax |
||||||||||||
| Federal |
402 | 98 | 150 | |||||||||
| State |
2 | 2 | 4 | |||||||||
| Total deferred income tax |
404 | 100 | 154 | |||||||||
| Total income tax provision (benefit) |
$ | 103 | $ | (10 | ) | $ | 209 | |||||
F-77
Table of Contents
RiverSource Life Insurance Company
The principal reasons that the aggregate income tax provision (benefit) is different from that computed by using the U.S. statutory rate of 21% were as follows:
| Years Ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Tax at U.S. statutory rate |
21.0 | % | 21.0 | % | 21.0 | % | ||||||
| Changes in taxes resulting from: |
||||||||||||
| Dividends received deduction |
(3.4 | ) | (8.2 | ) | (2.3 | ) | ||||||
| Low income housing tax credits |
(2.7 | ) | (8.0 | ) | (2.9 | ) | ||||||
| Foreign tax credit, net of addback |
(2.2 | ) | (7.0 | ) | (1.7 | ) | ||||||
| Audit adjustments |
(1.0 | ) | (3.4 | ) | — | |||||||
| Unrecognized tax benefits |
— | 1.6 | — | |||||||||
| Other, net |
(0.5 | ) | 1.5 | (0.3 | ) | |||||||
| Income tax provision (benefit) |
11.2 | % | (2.5 | )% | 13.8 | % | ||||||
The increase in the Company’s effective tax rate for the year ended December 31, 2024 compared to 2023 is primarily due to higher pretax income in the current year and the related impact on tax preferred items, a decrease in foreign tax credits, net of addback, and a decrease in low income housing tax credits, partially offset by a decrease in unrecognized tax benefits and a decrease in state income taxes, net of federal benefit, which is included in Other, net.
The decrease in the Company’s effective tax rate for the year ended December 31, 2023 compared to 2022 is primarily due to lower pretax income.
Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. Deferred income tax assets and liabilities are measured at the statutory rate of 21% as of both December 31, 2024 and 2023. The significant components of the Company’s deferred income tax assets and liabilities, which are included net within Other assets or Other liabilities, were as follows:
| December 31, | ||||||||
| (in millions) | 2024 | 2023 | ||||||
| Deferred income tax assets |
||||||||
| Insurance and annuity benefits including corresponding hedges |
$ | 801 | $ | 1,244 | ||||
| Investments including net unrealized on Available-for-Sale securities |
177 | 118 | ||||||
| Net operating loss |
35 | 28 | ||||||
| Other |
4 | 2 | ||||||
| Gross deferred income tax assets |
1,017 | 1,392 | ||||||
| Less: valuation allowance |
32 | 30 | ||||||
| Total deferred income tax assets |
985 | 1,362 | ||||||
| Deferred income tax liabilities |
||||||||
| Deferred acquisition costs |
355 | 380 | ||||||
| Other |
57 | 56 | ||||||
| Gross deferred income tax liabilities |
412 | 436 | ||||||
| Net deferred income tax assets |
$ | 573 | $ | 926 | ||||
Included in the Company’s deferred income tax assets are tax benefits related to state net operating losses of $35 million, net of federal benefit, which will expire beginning December 31, 2025. Based on analysis of the Company’s tax position as of December 31, 2024, management believes it is more likely than not that the Company will not realize certain state net operating losses of $30 million and state deferred tax assets of $2 million, both net of federal benefit; therefore, a valuation allowance of $32 million has been established.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows:
| (in millions) | 2024 | 2023 | 2022 | |||||||||
| Balance at January 1 |
$ | 27 | $ | 37 | $ | 37 | ||||||
| Reductions for tax positions related to the current year |
(3 | ) | (3 | ) | (1 | ) | ||||||
| Additions for tax positions of prior years |
— | 65 | 1 | |||||||||
| Reductions for tax positions of prior years |
— | (71 | ) | — | ||||||||
| Reductions due to lapse of statutes of limitations |
(2 | ) | (1 | ) | — | |||||||
| Balance at December 31 |
$ | 22 | $ | 27 | $ | 37 | ||||||
F-78
Table of Contents
RiverSource Life Insurance Company
If recognized, approximately $17 million, $19 million and $20 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2024, 2023 and 2022, respectively, would affect the effective tax rate.
It is reasonably possible that the total amount of unrecognized tax benefits will change in the next 12 months. The Company estimates that the total amount of gross unrecognized tax benefits may decrease by approximately $1 million in the next 12 months primarily due to state statutes of limitations expirations.
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net increase of $2 million, $8 million and nil in interest and penalties for the years ended December 31, 2024, 2023 and 2022, respectively. As of December 31, 2024 and 2023, the Company had a payable of $13 million and $11 million, respectively, related to accrued interest and penalties.
The Company files income tax returns as part of its inclusion in the consolidated federal income tax return of Ameriprise Financial in the U.S. federal jurisdiction and various state jurisdictions. The Internal Revenue Service (“IRS”) is currently auditing Ameriprise Financial’s U.S. income tax returns for 2019 and 2020. The state income tax returns of Ameriprise Financial or its subsidiaries, including the Company, are currently under examination by various jurisdictions for years ranging from 2017 through 2023.
21. COMMITMENTS AND CONTINGENCIES
Commitments
The following table presents the Company’s funding commitments as of December 31:
| (in millions) | 2024 | 2023 | ||||||
| Commercial mortgage loans |
$ | 58 | $ | 15 | ||||
Contingencies
The Company and its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions, concerning matters arising in connection with the conduct of its activities. These include proceedings specific to the Company as well as proceedings generally applicable to business practices in the industries in which it operates. The Company can also be subject to legal proceedings arising out of its general business activities, such as its investments, contracts and employment relationships. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the insurance industry generally.
As with other insurance companies, the level of regulatory activity concerning the Company’s businesses remains elevated. From time to time, the Company and its affiliates, including AFS and RiverSource Distributors, Inc. receive requests for information from, and/or are subject to examination or claims by various state, federal and other domestic authorities. The Company and its affiliates typically have numerous pending matters, that include information requests, exams, or disputes regarding their business activities and practices and other subjects, including from time to time: sales and distribution of, and disclosure practices related to, various products, including the Company’s insurance and annuity products; supervision of associated persons, including AFS financial advisors and RiverSource Distributors, Inc.’s wholesalers; administration of insurance and annuity claims; security of client information; and transaction monitoring systems and controls. The Company and its affiliates are cooperating with the applicable regulators.
These pending matters are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably estimate the amount of any loss that may result from such matters. The Company cannot predict with certainty if, how, or when any such proceedings will be initiated or resolved. Matters frequently need to be more developed before a potential loss or range of loss can be reasonably estimated for any matter. An adverse outcome in any matter could result in an adverse judgment, a settlement, fine, penalty, or other sanction, and may lead to further claims, examinations, adverse publicity or reputational damage, each of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, or liquidity.
In accordance with applicable accounting standards, the Company establishes an accrued liability for contingent litigation and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. The Company discloses the nature of the contingency when management believes there is at least a reasonable possibility that the outcome may be material to the Company’s consolidated financial statements and, where feasible, an estimate of the possible loss. In such cases, there still may be an exposure to loss in excess of any amounts reasonably estimated and accrued. When a loss contingency is not both probable and reasonably estimable, the Company does not establish an accrued liability, but continues to monitor, in conjunction with any outside counsel handling a matter, further developments that would make such loss contingency both probable and reasonably estimable. Once the Company establishes an accrued liability with respect to a loss contingency, the Company continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established, and any appropriate adjustments are made each quarter.
F-79
Table of Contents
RiverSource Life Insurance Company
Guaranty Fund Assessments
RiverSource Life Insurance Company and RiverSource Life of NY are required by law to be a member of the guaranty fund association in every state where they are licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations. The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated.
The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. As of December 31, 2024 and 2023, the estimated liability was $11 million and $34 million, respectively. As of December 31, 2024 and 2023, the related premium tax asset was $9 million and $29 million, respectively. The expected period over which guaranty fund assessments will be made and the related tax credits recovered is not known.
F-80
Table of Contents
This page left blank intentionally
Table of Contents
SAI9050_12_D01_(09/25)
Table of Contents
| (a) |
(i) |
Resolution of the Executive Committee of the Board of Directors of IDS Life adopted May 13, 1981, filed electronically as
Exhibit 1.1 to Post-Effective Amendment No. 2 to Registration Statement No. 33-47302, is
incorporated by reference. |
| |
(ii) |
Resolution of the Executive Committee of the Board of Directors of IDS Life establishing Account N on April 17, 1985,
filed electronically as Exhibit 1.2 to Post-Effective Amendment No. 2 to Registration
Statement No. 33-47302, is incorporated by reference. |
| |
(iii) |
Resolution of the Board of Directors of IDS Life establishing Accounts IZ and JZ on September 20, 1991, filed
electronically as Exhibit 1.3 to Post-Effective Amendment No. 2 to Registration Statement
No. 33-47302, is incorporated by reference. |
| |
(iv) |
|
| |
(v) |
|
| |
(vi) |
Unanimous Consent in Writing effective Jan. 2, 2007 of the Board
of Directors of IDS Life Insurance Company (now known as RiverSource Life Insurance Company) renaming IDS Life Accounts F, G, H, IZ, JZ, KZ, LZ, MZ, N, PZ, QZ, RZ, SZ, TZ
to the new name RiverSource Account F filed electronically as Exhibit 1.6 to Post-Effective
Amendment No. 27 to Registration Statement No. 33-4173 is incorporated by
reference. |
| (b) |
|
Not applicable. |
| (c) |
|
Form of Principal Underwriter Agreement for RiverSource Life Insurance Company Variable Annuities and Variable Life
Insurance filed electronically as Exhibit 3.1 to the Initial Registration Statement on Form
N-4 for RiverSource Variable Annuity Account (previously American Enterprise
Variable Annuity Account), RiverSource Signature(SM) Select Variable Annuity
and RiverSource Signature(SM) Variable Annuity, on or about Jan. 2, 2007, is incorporated by reference. |
| (d) |
(i) |
Post-Effective Amendment No.
2 to Registration Statement No. 33-47302, is incorporated by reference.See Exhibit 4. to Registration Statement No. 33-47302 filed on 4/27/1994. |
| |
(ii) |
Copy of Company name change endorsement (Form 131115) for
RiverSource Life Insurance Company, filed as Exhibit 4.32 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 filed on or about Jan. 2, 2007 is incorporated
by reference. |
| (e) |
|
|
| (f) |
(i) |
Copy of Certificate of Incorporation of IDS Life, filed electronically as Exhibit 6.1 to Post-Effective Amendment No. 2 to Registration Statement No. 33-47302, is incorporated by reference.See Exhibit 6.1 to Registration Statement No. 33-47302
filed on 4/27/1994. |
| |
(ii) |
Copy of Certificate of Amendment of Certificate of Incorporation of IDS Life Insurance Company dated June 22, 2006, filed electronically as Exhibit 27(f)(1) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is
incorporated by reference. |
| |
(iii) |
Copy of Amended and Restated By-Laws of RiverSource Life Insurance Company filed electronically as Exhibit 27(f)(2) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated by reference. |
| (g) |
|
Not applicable. |
| (h) |
|
Copy of Participation Agreement dated Jan. 1, 2007 by and among
RiverSource Life Insurance Company, RiverSource Life Insurance Co. of New
York and RiverSource Distributors, Inc. filed electronically as Exhibit 8.24 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated herein by reference. |
| (i) |
|
Not Applicable. |
| (j) |
|
Not applicable. |
| (k) |
|
|
| (l) |
|
| (m) |
|
Not applicable. |
| (n) |
|
Not applicable. |
| (o) |
|
Not applicable |
| (p) |
|
| Name |
Principal Business Address*
|
Position and Offices With Depositor |
| Gumer C. Alvero |
|
Chairman of the Board and President
|
| Michael J. Pelzel |
|
Senior Vice President – Corporate Tax |
| Kevin L Kehn |
|
Director, Senior Vice President and Chief Actuary |
| Shweta Jhanji |
|
Senior Vice President and Treasurer |
| Gene R. Tannuzzo |
|
Director |
| Kara D Sherman |
|
Director, Senior Vice President – National Sales Manager - Insurance |
| Stephen R. Wolfrath |
|
Director, Senior Vice President – Insurance and Annuities Product Development and Management |
| Brian E. Hartert |
|
Director, Chief Financial Officer |
| Paula J. Minella |
|
Secretary |
| Gregg L. Ewing |
|
Vice President and Controller |
| Parent Company /Subsidiary Name |
Jurisdiction |
| Ameriprise Financial, Inc.* |
Delaware |
| Ameriprise Advisor Capital, LLC |
Delaware |
| Ameriprise Advisor Financing 2, LLC |
Delaware |
| Ameriprise Asset Management Holdings Singapore (Pte.) Ltd. |
Singapore |
| Threadneedle Portfolio Services Hong Kong Limited |
Hong Kong |
| Columbia Threadneedle Investments Japan Co., Ltd. |
Japan |
| Columbia Threadneedle Malaysia Sdn Bhd. |
Malaysia |
| Threadneedle Investments Singapore (Pte.) Ltd. |
Singapore |
| Ameriprise Bank, FSB |
Federal |
| Ameriprise Capital Trust I |
Delaware |
| Ameriprise Capital Trust II |
Delaware |
| Ameriprise Capital Trust III |
Delaware |
| Ameriprise Capital Trust IV |
Delaware |
| Ameriprise Captive Insurance Company |
Vermont |
| Ameriprise Certificate Company |
Delaware |
| Investors Syndicate Development Corporation |
Nevada |
| Ameriprise Holdings, Inc. |
Delaware |
| Parent Company /Subsidiary Name |
Jurisdiction |
| Ameriprise Installment Financing, LLC |
Delaware |
| Ameriprise India LLP1
|
India |
| Ameriprise India Partner, LLC |
Delaware |
| Ameriprise Trust Company |
Minnesota |
| AMPF Holding, LLC |
Michigan |
| American Enterprise Investment Services Inc.2 |
Minnesota |
| Ameriprise Financial Services,
LLC2 |
Delaware |
| AMPF Property Corporation |
Michigan |
| Investment Professionals,
Inc.2 |
Texas |
| Columbia Management Investment Advisers, LLC |
Minnesota |
| Advisory Capital Strategies Group Inc. |
Minnesota |
| Columbia Wanger Asset Management, LLC |
Delaware |
| Emerging Global Advisors, LLC |
Delaware |
| GA Legacy, LLC |
Delaware |
| J. & W. Seligman & Co. Incorporated |
Delaware |
| Columbia Management Investment Distributors, Inc.2 |
Delaware |
| Seligman Partners, LLC3
|
Delaware |
| Lionstone BBP GP, LLC |
Delaware |
| Lionstone BBP Limited Partner, LLC |
Delaware |
| Lionstone CREAD Partners Two, LLC |
Delaware |
| Lionstone CREAD GP, LLC |
Delaware |
| Lionstone LORE Two, LLC |
Delaware |
| Lionstone Partners, LLC |
Texas |
| Cash Flow Asset Management GP, LLC |
Texas |
| Cash Flow Asset Management,
L.P.4 |
Texas |
| Lionstone Advisory Services, LLC |
Texas |
| Lionstone CFRE II Real Estate Advisory, LLC |
Delaware |
| Lionstone Development Services, LLC |
Texas |
| LPL 1111 Broadway GP, LLC |
Texas |
| LPL 1111 Broadway, L.P.5
|
Texas |
| Lionstone Raleigh Development Partners GP, LLC |
Delaware |
| Lionstone RDP Channel House Investors, L.P. |
Delaware |
| Lionstone RDP PCS Phase I Investors, L.P. |
Delaware |
| Lionstone RDP Platform Investors, L.P. |
Delaware |
| Lionstone RDP Tower V Investors GP, LLC |
Delaware |
| Lionstone RDP St. Albans Investors GP, LLC |
Delaware |
| Lionstone RDP Co-Investment Fund I GP, LLC |
Delaware |
| Lionstone VA Five, LLC |
Delaware |
| Parent Company /Subsidiary Name |
Jurisdiction |
| RiverSource CDO Seed Investments, LLC |
Minnesota |
| Columbia Management Investment Services Corp. |
Minnesota |
| Columbia Threadneedle Investments UK International Limited |
England & Wales |
| Columbia Threadneedle (Europe) Limited |
England & Wales |
| Columbia Threadneedle AM (Holdings) Limited |
Scotland |
| Astraeus III GP LLP |
|
| Astraeus III FP LP |
|
| Columbia Threadneedle Capital (Group) Limited |
Cayman Islands |
| Columbia Threadneedle Capital (Holdings) Limited |
Cayman Islands |
| Columbia Threadneedle Capital (UK) Limited |
England & Wales |
| Columbia Threadneedle Multi-Manager LLP |
England & Wales |
| Thames River Capital LLP |
England & Wales |
| Columbia Threadneedle Group (Holdings) Limited |
England & Wales |
| Columbia Threadneedle Group (Management) Limited |
England & Wales |
| Columbia Threadneedle Holdings Limited |
England & Wales |
| Columbia Threadneedle Management Limited |
England & Wales |
| FCEM Holdings (UK) Limited |
England & Wales |
| Columbia Threadneedle Netherlands B.V. |
Netherlands |
| F&C Alternative Investments (Holdings) Limited |
England & Wales |
| Columbia Threadneedle Treasury Limited |
England & Wales |
| WAM Holdings Ltd |
England & Wales |
| Columbia Threadneedle Fund Management Limited |
England & Wales |
| Columbia Threadneedle Managers Limited |
England & Wales |
| Columbia Threadneedle (Services) Limited |
Scotland |
| Columbia Threadneedle Management (Swiss) GmbH‡ |
Switzerland |
| Columbia Threadneedle Investment Business Limited |
Scotland |
| Columbia Threadneedle PE Co-Investment GP LLP |
Scotland |
| FCIT PE FP LP6
|
Scotland |
| Parent Company /Subsidiary Name |
Jurisdiction |
| Columbia Threadneedle PE Co-Investment FP LP6 |
Scotland |
| Columbia Threadneedle Real Estate Partners LLP7 |
England & Wales |
| CT UK Residential Real Estate FCP-RAIF (Associate) |
England & Wales |
| REIT Asset Management Limited |
England & Wales |
| Columbia Threadneedle Real Estate Partners S.à.r.l. |
Luxembourg |
| CT Real Estate Partners GmbH & Co. KG, München |
Germany |
| CT Real Estate Partners Verwaltungsgesellschaft mbH, München (General Partner) |
Germany |
| Columbia Threadneedle Real Estate Partners Asset Management Limited |
England & Wales |
| Columbia Threadneedle REP Property Management Limited |
England & Wales |
| Castle Mount Impact Partners GP LLP |
|
| Castle Mount Impact Partners FP LP |
|
| F&C Aurora (GP) Limited |
Scotland |
| LPE II (Founding Partner) LP |
Scotland |
| The Aurora Fund (Founder Partner)
LP6 |
Scotland |
| F&C Climate Opportunity Partners (GP) Limited |
Scotland |
| F&C Climate Opportunity Partners (GP) LP |
Scotland |
| F&C Climate Opportunity Partners (Founder Partner) LP6 |
Scotland |
| F&C Equity Partners Holdings Limited |
England & Wales |
| F&C European Capital Partners (Founder Partner) LP6 |
Scotland |
| F&C European Capital Partners II (GP) Limited |
Scotland |
| F&C European Capital Partners II (Founder Partner) LP6 |
Scotland |
| F&C European Capital Partners II (GP) LP |
Scotland |
| F&C Group ESOP Trustee Limited |
Scotland |
| F&C Investment Manager Limited |
England & Wales |
| FP Asset Management Holdings Limited |
England & Wales |
| Columbia Threadneedle Asset Managers Limited |
England & Wales |
| Ivory & Sime Limited |
Scotland |
| Columbia Threadneedle (EM) Investments Limited |
England & Wales |
| Pyrford International Limited |
England & Wales |
| RiverSource Distributors,
Inc.2 |
Delaware |
| RiverSource Life Insurance Company |
Minnesota |
| Parent Company /Subsidiary Name |
Jurisdiction |
| Columbia Cent CLO Advisers, LLC |
Delaware |
| RiverSource Life Insurance Co. of New York |
New York |
| RiverSource NY REO, LLC |
New York |
| RiverSource REO 1, LLC |
Minnesota |
| RiverSource Tax Advantaged Investments, Inc. |
Delaware |
| AEXP Affordable Housing Portfolio,
LLC8 |
Delaware |
| TAM UK International Holdings Limited |
England & Wales |
| Columbia Threadneedle Investments (ME) Limited |
Dubai |
| CTM Holdings Limited |
Malta |
| TAM Investment Limited |
England & Wales |
| Threadneedle Asset Management Oversight Limited |
England & Wales |
| Ameriprise International Holdings GmbH |
Switzerland |
| Threadneedle EMEA Holdings 1, LLC |
Minnesota, USA |
| Threadneedle Holdings Limited |
England & Wales |
| TAM UK Holdings Limited |
England & Wales |
| Threadneedle Asset Management Holdings Limited** |
England & Wales |
| Columbia Threadneedle Foundation |
England & Wales |
| TC Financing Limited |
England & Wales |
| Threadneedle Asset Management Limited |
England & Wales |
| Threadneedle Investment Services Limited |
England & Wales |
| Threadneedle Asset Management (Nominees) Limited |
England & Wales |
| Sackville TIPP Property (GP) Limited |
England & Wales |
| Threadneedle Asset Management Finance Limited |
England & Wales |
| TMS Investment Limited |
Jersey |
| Threadneedle International Limited |
England & Wales |
| Threadneedle Investments (Channel Islands) Limited |
Jersey |
| Threadneedle Investments Limited |
England & Wales |
| Threadneedle Management Services Limited |
England & Wales |
| Parent Company /Subsidiary Name |
Jurisdiction |
| Threadneedle Pension Trustees Limited |
England & Wales |
| Threadneedle Navigator ISA Manager Limited |
England & Wales |
| Threadneedle Pensions Limited |
England & Wales |
| Threadneedle Portfolio Services AG |
Switzerland |
| Threadneedle Portfolio Services Limited |
England & Wales |
| Threadneedle Property Investments Limited |
England & Wales |
| Sackville (CTESIF) 2&3 GP Sàrl |
Luxembourg |
| Sackville LCW (GP) Limited |
England & Wales |
| Sackville LCW Sub LP 1 (GP) Limited |
England & Wales |
| Sackville LCW Nominee 1 Limited |
England & Wales |
| Sackville LCW Nominee 2 Limited |
England & Wales |
| Sackville LCW Sub LP 2 (GP) Limited |
England & Wales |
| Sackville LCW Nominee 3 Limited |
England & Wales |
| Sackville LCW Nominee 4 Limited |
England & Wales |
| Sackville Property Atlantic (Jersey GP) Limited |
Jersey |
| Sackville Property Curtis (Jersey GP) Limited |
Jersey |
| Sackville Property Farnborough (Jersey GP) Limited |
Jersey |
| Sackville Property Hayes (Jersey GP) Limited |
Jersey |
| Sackville UKPEC6 Hayes Nominee 1 Limited |
Jersey |
| Sackville UKPEC6 Hayes Nominee 2 Limited |
Jersey |
| Sackville TSP Property (GP) Limited |
England & Wales |
| Sackville UK Property Select II (GP) Limited |
England & Wales |
| Sackville UK Property Select II (GP) No. 3 Limited |
England & Wales |
| Sackville UK Property Select II Nominee (3) Limited |
England & Wales |
| Sackville UK Property Select III (GP) No. 1 Limited |
England & Wales |
| Sackville UK Property Select III Nominee (1) Limited |
England & Wales |
| Parent Company /Subsidiary Name |
Jurisdiction |
| Sackville UK Property Select III Nominee (2) Limited |
England & Wales |
| Sackville UK Property Select III (GP) No. 2 Limited |
England & Wales |
| Sackville UK Property Select III Nominee (3) Ltd |
England & Wales |
| Sackville UK Property Select III Nominee (4) Ltd |
England & Wales |
| Sackville UK Property Select III (GP) No. 3 Limited |
England & Wales |
| Sackville UK Property Select III Nominee (5) Ltd |
England & Wales |
| Sackville UK Property Select III Nominee (6) Ltd |
England & Wales |
| Sackville UK Property Select III (GP) S.à r.l. |
Luxembourg |
| Sackville UK Property Select IV (GP) S.à.r.l. |
Luxembourg |
| Sackville UK Property Select IV (GP) No. 1 Limited |
England |
| Sackville UK Property Select IV Nominee (1) Limited |
England |
| Sackville UK Property Select IV Nominee (2) Limited |
England |
| Sackville UK Property Select IV Nominee (7) Limited |
England |
| Sackville UK Property Select IV Nominee (8) Limited |
England |
| Sackville UK Property Select IV (GP) No. 2 Limited |
England |
| Sackville UK Property Select IV Nominee (3) Limited |
England |
| Sackville UK Property Select IV Nominee (4) Limited |
England |
| Sackville UK Property Select IV (GP) No. 3 Limited |
England |
| Sackville UK Property Select IV Nominee (5) Limited |
England |
| Sackville UK Property Select IV Nominee (6) Limited |
England |
| Sackville UKPEC1 Leeds (GP) Limited |
England & Wales |
| Threadneedle Property Execution 1 Limited |
England & Wales |
| Threadneedle Property Execution 2 Limited |
England & Wales |
| Threadneedle UK Property Select IV Feeder SA SICAV-RAIF |
Luxembourg |
| Threadneedle Management Luxembourg S.A. |
Luxembourg |
RiverSource Variable Annuity Account
RiverSource Account F
RiverSource Variable Annuity Fund A
RiverSource Variable Annuity Fund B
RiverSource Variable Account 10
RiverSource Account SBS
RiverSource MVA Account
RiverSource Account MGA
RiverSource Account for Smith Barney
RiverSource Variable Life Separate Account
RiverSource Variable Life Account
RiverSource of New York Variable Annuity Account 1
RiverSource of New York Variable Annuity Account 2
RiverSource of New York Account 4
RiverSource of New York Account 7
RiverSource of New York Account 8
| Name and Principal Business Address* |
|
Positions and Offices with Underwriter |
| Kara D. Sherman |
|
Director |
| Janz, Sara S. |
|
Director |
| Name and Principal Business Address* |
|
Positions and Offices with Underwriter |
| Gumer C. Alvero |
|
Chairman of the Board and Chief Executive Officer |
| Shweta Jhanji |
|
Senior Vice President and Treasurer |
| Paula J. Minella |
|
Secretary |
| Jason S. Bartylla |
|
Chief Financial Officer |
| NAME OF PRINCIPAL UNDERWRITER |
NET
UNDERWRITING
DISCOUNTS AND
COMMISSIONS |
COMPENSATION ON REDEMPTION |
BROKERAGE
COMMISSIONS |
COMPENSATION |
| RiverSource Distributors, Inc. |
$439,655,537 |
None |
None |
None |
| Name of the Contract |
Number of Contracts
Outstanding |
Total Value Attributable
to the Index and/or Fixed
Option Subject to an
Adjustment |
Number of
Contracts
Sold During
the Prior
Calendar
Year |
Gross
Premiums
Received
During the
Prior
Calendar
Year |
Amount of
Contract
Value
Redeemed
During the
Prior Calendar
Year |
Combination Contract (Yes/No) |
| RiverSource Fixed Account Interests |
2 |
2,288,862 |
0 |
465,297 |
764,202 |
Yes |
| |
RiverSource Account F | |
| |
(Registrant) | |
| |
By: |
/s/
Gumer C. Alvero |
| |
|
Gumer C. Alvero Chairman of the Board and President |
| |
RiverSource Life insurance Company | |
| |
(Depositor) | |
| |
By: |
/s/
Gumer C. Alvero |
| |
|
Gumer C. Alvero Chairman of the Board and President |
| Signature |
Title |
| /s/
Gumer C. Alvero |
Chairman of the Board and President (Chief Executive Officer) |
| Gumer C. Alvero | |
| /s/
Michael J. Pelzel |
Senior Vice President – Corporate Tax |
| Michael J. Pelzel | |
| /s/
Kevin L Kehn |
Director, Senior Vice President and Chief Actuary |
| Kevin L Kehn | |
| /s/
Shweta Jhanji |
Senior Vice President and Treasurer |
| Shweta Jhanji | |
| /s/
Brian E. Hartert |
Director, Chief Financial Officer (Chief Financial Officer) |
| Brian E. Hartert | |
| /s/
Gene R. Tannuzzo |
Director |
| Gene R. Tannuzzo | |
| /s/
Gregg L. Ewing |
Vice President and Controller (Principal Accounting Officer) |
| Gregg L. Ewing | |
| /s/
Stephen R. Wolfrath |
Director, Senior Vice President-Insurance and Annuities Product Development and Management |
| Stephen R. Wolfrath | |
| /s/
Kara D Sherman |
Director, Senior Vice President – National Sales Manager - Insurance |
| Kara D Sherman |
| (k) |
Opinion of counsel and consent to its use as to the legality of the securities being registered |
| (l) |
Consent of Independent Registered Public Accounting
Firm |
| (p) |
Power of Attorney |
ATTACHMENTS / EXHIBITS
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Alpha Further Expands Footprint of Anagulu Copper-Gold Porphyry Prospect and Discovers New Nightjar Target Zone Measuring 1 x 0.15km
- NexMetals Increases Selkirk Mineral Resource by 70%, Establishing 1.1 Billion Pounds of Copper Equivalent in the Indicated Category and 200 Million Pounds in Inferred Category
- Crown Crafts Announces Financial Results for Fourth Quarter and Full Year Fiscal 2026
Create E-mail Alert Related Categories
SEC FilingsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
