AMERIPRISE FINANCIAL INC

Ameriprise Financial, Inc. is a diversified financial services company with a more than 130-year history of providing solutions to help clients confidently achieve their financial objectives. The company operates in the financial services industry, competing directly with a variety of financial institutions, including registered investment advisers, securities brokers, asset managers, banks and insurance companies. As of December 31, 2025, Ameriprise had $1.7 trillion ¹ in assets under management, administration, and advisement, compared to $1.5 trillion ² as of December 31, 2024. The company's strategy is centered on helping clients confidently achieve their goals by providing holistic advice and by managing and protecting their assets and income, carried out through two primary go-to-market approaches: Wealth Management and Asset Management.

Ameriprise Financial operates in a highly competitive global industry, competing directly with a variety of financial institutions, including registered investment advisers, securities brokers, asset managers, banks and insurance companies. The company's network of more than 10,000 ³ financial advisors is among the largest branded advisor platforms in the industry. Competitive factors influencing the company's ability to attract and retain financial advisors include compensation structures, brand recognition and reputation, product offerings and innovation, growth opportunities, and technology and service capabilities and support. The company's advisor force is central to how it serves clients, and its nationally recognized brand, combined with support programs, creates a compelling value proposition for financial advisors relative to the broader financial services industry.

Ameriprise Financial generates revenue through a diversified business model that includes fee-based revenues driven by the level of client assets, net investment income on owned assets, financial planning fees, transaction and other fees, and distribution fees for providing products and services. A significant portion of revenues in the Advice & Wealth Management segment are fee-based and driven by the level of client assets, which is impacted by both market movements and net flows. Revenues in the Asset Management segment are primarily earned based on managed asset balances, which are impacted by market movements, net asset flows, asset allocation and product mix. The company's integrated model leverages key business linkages to drive growth and consistency across market cycles.

The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services, to more than 3.5 million ⁴ retail clients through its financial advisors. The segment offers financial planning and advice services, discretionary and non-discretionary investment advisory accounts, brokerage products and services, cash management and banking products, face-amount certificates through Ameriprise Certificate Company, mutual fund offerings from its Columbia funds as well as approximately 130 ⁵ unaffiliated mutual fund families representing approximately 2,125 ⁶ mutual funds on its brokerage platform, exchange traded funds, closed-end funds and model offerings, and insurance and annuities products from both RiverSource Life companies as well as third parties. The Asset Management segment, through Columbia Threadneedle, had $721 billion ⁷ in managed and advised assets as of December 31, 2025, and provides investment management, advice and products to retail, high net worth and institutional clients on a global scale, with a presence in 16 ⁸ key markets globally. The Retirement & Protection Solutions segment offers clients annuities, life insurance and disability income insurance products through the RiverSource brand, exclusively distributed through the company's advisor network. The Corporate & Other segment consists of closed blocks of business, including closed block long term care insurance and closed block fixed annuities.

The Advice & Wealth Management segment's financial advisor platform offers a choice in how advisors can affiliate through four channels: the Ameriprise Franchise Group, the Ameriprise Advisor Group, the Ameriprise Personal Wealth Group, and the Ameriprise Financial Institutions Group. The Asset Management segment's investment management capabilities and products span a broad range of asset classes and investment styles, including U.S. registered funds, non-U.S. retail focused funds, European-based pooled investment funds, institutional and retail separately managed accounts, management of owned assets, management of collateralized loan obligations, private funds, collective investment trust funds, and sub-advised accounts. The Retirement & Protection Solutions segment's protection products include variable annuities, structured variable annuities, variable universal life insurance, universal life insurance, term life insurance, and disability income insurance. Sales of RiverSource individual life insurance in 2025 consisted of approximately 89% ⁹ variable universal life, 9% ¹⁰ universal life and 2% ¹¹ term life.

In 2025, the company attracted 336 ¹² experienced, productive advisors moving their practices to Ameriprise, and approximately 1,691 ¹³ advisors over the last 5 years. The company retained 96% ¹⁴ of its high-performing employees, and retention among advisors affiliated with the company for 10+ years remained strong at 94% ¹⁵. The company's overall employee engagement remained strong at 83% ¹⁶ favorable, and in its Inclusion Index, it achieved a score of 85% ¹⁷. The company completed the process to consolidate its Minneapolis office footprint, completing the move of all Minneapolis based employees to the Ameriprise Financial Headquarters on April 21, 2025. On April 22, 2025, the Board of Directors authorized $4.5 billion ¹⁸ for the repurchase of common stock through June 30, 2027.

For the fiscal year ended December 31, 2025, net income was $3.563 billion ¹⁹, compared to $3.401 billion ²⁰ in 2024. Diluted earnings per share were $36.28 ²¹ versus $33.05 ²² in the prior year. Adjusted operating earnings were $3.858 billion ²³ in 2025, compared to $3.535 billion ²⁴ in 2024. Adjusted operating earnings per diluted share were $39.29 ²⁵ versus $34.35 ²⁶ in the prior year. Total revenues were $19.486 billion ²⁷ in 2025, compared to $18.048 billion ²⁸ in 2024. The adjusted operating return on equity, excluding AOCI, was 53.2% ²⁹ in 2025, compared to 51.6% ³⁰ in 2024.

The company is positioned to capitalize on significant long-term demographic and market trends driving increased demand for financial advice and solutions, including the ongoing transition of baby boomers into retirement and younger generations building wealth. The primary target market is households with $500,000 to $5,000,000 in investable assets. The company is pursuing opportunities to leverage the collective capabilities of its global asset management business to enhance investment solutions and develop new solutions responsive to client demand. The company has expanded beyond traditional strengths in the U.S. and the United Kingdom to serve more clients and gather assets worldwide, and benefits from key strategic relationships with strong retail, institutional and alternative capabilities.

The company's global asset management business, represented by Columbia Threadneedle Investments, is pursuing opportunities to leverage collective capabilities to enhance investment solutions and develop new solutions responsive to client demand. The company has expanded beyond traditional strengths in the U.S. and the U.K. to serve more clients and gather assets worldwide. The company benefits from key strategic relationships and has strong retail, institutional and alternative capabilities. The company is positioned to grow its assets under management and advisement and is pursuing opportunities to leverage the collective capabilities of its global asset management business.The company continuously invests in, develops, and refines capabilities and tools designed to maximize advisor productivity and client satisfaction. The company supports its advisors with an integrated technology platform, training, leadership and marketing programs. The company has made and expects to continue to make significant investments in its compliance and supervision processes, enhancing policies, procedures and oversight. The company expects to continue focusing on its key strategic objectives and obtaining operational and strategic leverage from its core capabilities.

On April 22, 2025, the Board of Directors authorized $4.5 billion ³¹ for the repurchase of common stock through June 30, 2027. The company's financial targets include adjusted operating earnings per diluted share growth of 12% to 15% ³², and an adjusted operating return on equity of over 30% ³³. The filing does not specify R&D spending levels or capital expenditure plans with exact figures.

The company operates in a highly scrutinized regulatory environment that remains subject to change, with regulatory developments resulting in greater regulatory oversight and internal compliance obligations. The company faces risks from market fluctuations and economic, political and other factors, including the level and volatility of equity prices, interest rates, commodity prices, currency values and other market indices. The company also faces risks from intense competition, new technologies, and the economies of scale for larger competitors that could negatively impact its ability to maintain or increase market share and profitability.

The company faces risks from changes in interest rates that could affect its results of operations and financial condition, as certain of its insurance, annuity, investment products, wrap fees and banking products are sensitive to interest rate fluctuations. The company also faces risks from adverse capital and credit market conditions or a downgrade in its credit ratings that could significantly affect its ability to meet liquidity needs, access to capital and cost of capital. The company's insurance profitability relies on assumptions regarding morbidity rates, mortality rates and benefit utilization as well as the future persistency of its insurance policies and annuity contracts.

The company faces significant market risk from fluctuations in equity prices, interest rates, and credit markets, which can materially affect revenues from asset-based fees, the valuation of market risk benefits and embedded derivatives associated with variable annuities, and spread income on deposit and insurance products. A decline in equity markets could reduce assets under management and the associated fee revenue, while changes in interest rates could impact the profitability of insurance and annuity products and the value of the investment portfolio. The company also faces insurance-specific risks, including the adequacy of reserves for future policy benefits and claims, particularly for long-term care insurance, where the company had $5.2 billion ³⁴ of account value in the closed block of fixed annuities as of December 31, 2025, of which 89% ³⁵ has been ceded. The company's profitability relies on assumptions regarding morbidity, mortality, and persistency, and actual experience differing from these assumptions could require reserve increases and adversely affect results. Additionally, the company faces operational risks from cybersecurity threats, with the number of threats and events increasing substantially every year, and from the potential failure of third-party service providers, including reinsurers such as Commonwealth and Genworth Life Insurance Company, to fulfill their obligations.

Management's message emphasizes the company's more than 130-year history and its strategy centered on helping clients confidently achieve their goals by providing holistic advice and by managing and protecting their assets and income. The company's financial targets are to increase shareholder value over a multi-year horizon by achieving on-average, over-time financial targets of adjusted operating earnings per diluted share growth of 12% to 15% ³⁶ and an adjusted operating return on equity of over 30% ³⁷. Management uses adjusted operating measures, which exclude certain items, to evaluate financial performance on a basis comparable to that used by some securities analysts and investors, and these non-GAAP measures are taken into consideration for purposes of business planning and analysis and for certain compensation-related matters.