Model: Kouskousi/gte-large-en-v1.5_SEC_docs_ft_with_5_epochs
Author: Kouskousi
Pipeline: sentence-similarity
Library: sentence-transformers
Tags: sentence-transformers, safetensors, new, sentence-similarity, feature-extraction, generated_from_trainer, dataset_size:9400, loss:MultipleNegativesRankingLoss, custom_code, arxiv:1908.10084, arxiv:1705.00652, base_model:Alibaba-NLP/gte-large-en-v1.5, base_model:finetune:Alibaba-NLP/gte-large-en-v1.5, model-index, text-embeddings-inference, endpoints_compatible, region:us
Base models (finetune): id: Alibaba-NLP/gte-large-en-v1.5
Card metadata: tags: sentence-transformers, sentence-similarity, feature-extraction, generated_from_trainer, dataset_size:9400, loss:MultipleNegativesRankingLoss
base_model: Alibaba-NLP/gte-large-en-v1.5
widget: source_sentence: What was the percentage change in net investment income from 2021 to 2022?
sentences: Index
Ameriprise Financial, Inc.
Consolidated Results of Operations
Year Ended December 31, 2022 Compared to Year Ended December 31, 2021
The following table presents our consolidated results of operations:
 
Years Ended December 31,
Change
2022
2021
(in millions)
Revenues
Management and financial advice fees
$
9,033 
$
9,275 
$
(242)
(3)
%
Distribution fees
1,939 
1,828 
111 
6 
Net investment income
1,474 
1,683 
(209)
(12)
Premiums, policy and contract charges
1,397 
221 
1,176 
NM
Other revenues
491 
382 
109 
29 
Total revenues
14,334 
13,389 
945 
7 
Banking and deposit interest expense
76 
12 
64 
NM
Total net revenues
14,258 
13,377 
881 
7 
Expenses
 
 
 
 
Distribution expenses
4,935 
5,028 
(93)
(2)
Interest credited to fixed accounts
665 
600 
65 
11 
Benefits, claims, losses and settlement expenses
242 
(156)
398 
NM
Remeasurement (gains) losses of future policy benefit reserves
1 
(52)
53 
NM
Change in fair value of market risk benefits
311 
(113)
424 
NM
Amortization of deferred acquisition costs
252 
259 
(7)
(3)
Interest and debt expense
198 
191 
7 
4 
General and administrative expense
3,723 
3,435 
288 
8 
Total expenses
10,327 
9,192 
1,135 
12 
Pretax income
3,931 
4,185 
(254)
(6)
Income tax provision
782 
768 
14 
2 
Net income
$
3,149 
$
3,417 
$
(268)
(8)
%
NM  Not Meaningful - variance equal to or greater than 100%.
Overall
Pretax income decreased $254 million, or 6%, for 2022 compared to the prior year. The following impacts were significant drivers of the year-over-year change in pretax
income:
•
The prior year impact of the block transfer reinsurance transaction resulted in $524 million of pretax income for 2021 primarily reflecting the net realized gains on
investments sold to the reinsurer.
•
A negative impact from lower average equity markets compared to the prior year. Our average WEI, which is a proxy for equity movements on AUM, decreased
7% in 2022 compared to the prior year. The average S&P 500 index was 4% lower for 2022 compared to the prior year.
•
The favorable impact of unlocking was $133 million for 2022 compared to an unfavorable impact of $113 million for the prior year.
•
A favorable impact from the increase in short-term interest rates compared to the prior year.
•
The market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges
and the reinsurance accrual was a benefit of $483 million for 2022 compared to a benefit of $464 million for the prior year.
50, Intersegment revenues for this segment reflect fees paid by our Asset Management segment for marketing support and other services provided in
connection with the availability of VIT Funds. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth
Management segment, as well as expenses for investment management services provided by our Asset Management segment. All intersegment activity is eliminated
in our consolidated results.
Protection
We provide life and disability income insurance products to address the protection and risk management needs of our retail clients. New 
RiverSource
 insurance
products are exclusively offered through our advisor network. Our advisors also offer insurance products of unaffiliated carriers. The primary sources of revenues for
our protection business are premiums, fees and charges we receive to assume insurance-related risk. We earn net investment income on owned assets supporting
insurance reserves and on capital supporting the business. We also receive fees based on the level of the RiverSource Life companies’ separate account assets
supporting variable universal life investment options. The protection products earn intersegment revenues from fees paid by our Asset Management segment for
marketing support and other services provided in connection with the availability of VIT Funds under the variable universal life contracts. Intersegment expenses for
the protection products include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment
management services provided by our Asset Management segment. All intersegment activity is eliminated in our consolidated results.
®
6, Index
Ameriprise Financial, Inc.
Slide 5 - Regulatory Oversight Chart.jpg
Advice & Wealth Management Regulation
Certain of our subsidiaries are registered with the SEC as broker-dealers under the Securities Exchange Act of 1934 (“Exchange Act”) and with certain states, the
District of Columbia and other U.S. territories. Our broker-dealer subsidiaries are also members of self-regulatory organizations, including Financial Industry
Regulatory Authority (“FINRA”), and are subject to the regulations of these organizations. The SEC and FINRA have stringent rules with respect to the net capital
requirements (which includes rules around customer protection) and the marketing and trading activities of broker-dealers. Our broker-dealer subsidiaries, as well as
our financial advisors and other personnel, must obtain all required state and FINRA licenses and registrations to engage in the securities business and take certain
steps to maintain such registrations in good standing. SEC regulations also impose notice requirements and capital
11, source_sentence: What are the key components of Ameriprise Financial's strategy for attracting and retaining a diverse workforce?
sentences: Index
Ameriprise Financial, Inc.
2022 due to a $75.8 billion increase in Advice & Wealth Management AUM driven by market appreciation and wrap account net inflows and a $52.9 billion increase in
Asset Management AUM primarily driven by market appreciation. Total AUA increased $57.5 billion, or 26%, to $279.5 billion as of December 31, 2023 compared to
the prior year primarily driven by equity market appreciation, and an increase in third-party money market funds and brokered CDs. See our segment results of
operations discussion for additional information on changes in our AUM.
Consolidated Results of Operations
Year Ended December 31, 2023 Compared to Year Ended December 31, 2022
The following table presents our consolidated results of operations:
 
Years Ended December 31,
Change
2023
2022
(in millions)
Revenues
Management and financial advice fees
$
8,907 
$
9,033 
$
(126)
(1)
%
Distribution fees
1,931 
1,939 
(8)
— 
Net investment income
3,206 
1,474 
1,732 
NM
Premiums, policy and contract charges
1,539 
1,397 
142 
10 
Other revenues
513 
491 
22 
4 
Total revenues
16,096 
14,334 
1,762 
12 
Banking and deposit interest expense
561 
76 
485 
NM
Total net revenues
15,535 
14,258 
1,277 
9 
Expenses
 
 
 
 
Distribution expenses
5,078 
4,935 
143 
3 
Interest credited to fixed accounts
654 
665 
(11)
(2)
Benefits, claims, losses and settlement expenses
1,350 
242 
1,108 
NM
Remeasurement (gains) losses of future policy benefit reserves
(20)
1 
(21)
NM
Change in fair value of market risk benefits
798 
311 
487 
NM
Amortization of deferred acquisition costs
246 
252 
(6)
(2)
Interest and debt expense
324 
198 
126 
64 
General and administrative expense
3,871 
3,723 
148 
4 
Total benefits and expenses
12,301 
10,327 
1,974 
19 
Pretax income
3,234 
3,931 
(697)
(18)
Income tax provision
678 
782 
(104)
(13)
Net income
$
2,556 
$
3,149 
$
(593)
(19)
%
NM  Not Meaningful - variance equal to or greater than 100%.
Overall
Pretax income decreased $697 million, or 18%, for 2023 compared to the prior year. The following impacts were significant drivers of the year-over-year change in
pretax income:
•
The market impact on non-traditional long-duration products, net of hedges was an expense of $608 million for 2023 compared to a benefit of $483 million for the
prior year.
•
The unfavorable impact of unlocking was $99 million for 2023 compared to a favorable impact of unlocking of $133 million for the prior year.
•
A favorable impact from the trend in rising interest rates on the investment portfolio yield, including from investment portfolio repositioning in our insurance
business in the fourth quarter of 2022, along with higher balances in bank and certificate products.
39, At December 31, 2023 and 2022, the parent company had $544 million and $389 million, respectively, in cash, cash equivalents, and unencumbered liquid securities.
Liquid securities predominantly include U.S. government agency mortgage back securities. Additional sources of liquidity include a line of credit with an affiliate up
to $727 million and an unsecured revolving committed credit facility for up to $1.0 billion that expires in June 2026. Management’s estimate of liquidity available to the
parent company in a volatile and uncertain economic environment as of December 31, 2023 was $1.8 billion which includes cash, cash equivalents, unencumbered
liquid securities, the line of credit with an affiliate and a portion of the committed credit facility.
Under the terms of the committed credit facility, we can increase the availability to $1.25 billion upon satisfaction of certain approval requirements. Available
borrowings under this facility are reduced by any outstanding letters of credit. At December 31, 2023, we had no outstanding borrowings under this credit facility and
had $1 million of letters of credit issued against the facility. Our credit facility contains various administrative, reporting, legal and financial covenants. We remain in
compliance with all such covenants at December 31, 2023.
In addition, we have access to collateralized borrowings, which may include repurchase agreements and Federal Home Loan Bank (“FHLB”) advances, and advances
at the Federal Reserve. Our subsidiaries, RiverSource Life Insurance Company (“RiverSource Life”), and Ameriprise Bank are members of the FHLB of Des Moines,
which provides access to collateralized borrowings. As of December 31, 2023 and 2022, we had an estimated maximum borrowing capacity of $8.6 billion and $8.0
billion, respectively, of borrowing capacity under the FHLB facilities, of which $201 million was outstanding as of both December 31, 2023 and 2022, and is
collateralized with commercial mortgage backed securities. In addition, Ameriprise Bank maintains access to borrowings from the Federal Reserve which are
collateralized with residential mortgage backed securities, commercial mortgage backed securities and
60, The impact of these factors on our business may vary from country to country and certain competitors may have competitive advantage in
certain jurisdictions.
Competitors of our Retirement & Protection Solutions segment consist of both stock and mutual insurance companies. Competitive factors affecting the sale of
variable annuity and insurance products include distribution capabilities, price, product features and innovation, hedging capability, investment performance,
commission structure, reinsurance availability and pricing, perceived financial strength and financial strength ratings, claims-paying ratings, technology and service,
advertising, brand recognition and financial strength ratings from rating agencies.
Human Capital Management
Ameriprise Financial has a strong values-driven and inclusive culture that is the foundation of all that we do. While our individual business lines serve different client
needs, we have a common vision and values that drive our business and how we work with clients and each other. Our values are the following:
•
Client focused;
•
Integrity always;
•
Excellence in all we do; and
•
Respect for the individuals and for the communities in which we live and work.
To ensure our long-term success, we must attract, retain, engage and develop a diverse, high-performing workforce. We are committed to providing an excellent
employee and advisor experience for all of our people. This includes approximately 13,800 global
8, source_sentence: What is the significance of Columbia Threadneedle in Ameriprise's asset management segment?
sentences: Index
Ameriprise Financial, Inc.
Expenses
Distribution expenses decreased $93 million, or 2%, for 2022 compared to the prior year primarily lower average equity markets and decreased transactional activity.
Interest credited to fixed accounts increased $65 million, or 11%, for 2022 compared to the prior year primarily reflecting the following items:
•
An $23 million decrease in expense from the unhedged nonperformance credit spread risk adjustment on IUL benefits. The favorable impact of the
nonperformance credit spread was $13 million for 2022 compared to an unfavorable impact of $10 million for the prior year.
•
A $105 million increase in expense from other market impacts on IUL benefits, net of hedges, which was an expense of $51 million for 2022 compared to a benefit
of $54 million for the prior year. The increase in expense was primarily due to an increase in the IUL embedded derivative in the current year period, which
reflected higher option costs due to a higher new money rate, compared to a decrease in the IUL embedded derivative in the prior year period, which reflected
lower option costs due to higher discount rates.
Benefits, claims, losses and settlement expenses increased $398 million for 2022 compared to the prior year primarily reflecting the following items:
•
A $1.2 billion decrease in expense associated with the reinsurance transaction for life contingent payout annuity policies in the prior year.
•
An $806 million decrease in expense from market impacts on SVA embedded derivative, net of hedges in place to offset those risks. This decrease was the result
of a favorable $1.0 billion change in the market impact on the SVA embedded derivative, partially offset by an unfavorable $224 million change in the market
impact on derivatives hedging the SVA embedded derivative. The main market driver contributing to these changes was the equity market impact on the SVA
embedded derivative net of the impact on the corresponding hedge assets, which resulted in a benefit for 2022 compared to an expense in the prior year.
Remeasurement (gains) losses of future policy benefit reserves increased $53 million for 2022 compared to the prior year primarily reflecting an increase in expense on
LTC insurance as policy and claim terminations returned to more normalized levels compared to the prior year period which benefited from COVID-19 related impacts.
Change in fair value of market risk benefits increased $424 million for 2022 compared to the prior year primarily reflecting the following items:
•
A $769 million increase in expense from other market impacts on variable annuity guaranteed benefits, net of hedges in place to offset those risks. This decrease
was the result of an unfavorable $865 million change in the market impact on variable annuity guaranteed benefits reserves, partially offset by a favorable
$96 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes
are summarized below:
•
Equity market impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in an expense for
2022 compared to a benefit in the prior year.
•
Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a benefit
for 2022 compared to an expense in the prior year.
•
Volatility impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in a higher expense for
2022 compared to the prior year.
•
Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs
and various behavioral items, were a higher net expense for 2022 compared to the prior year.
General and administrative expense increased $288 million, or 8%, 2022 the prior year primarily reflecting the operating expenses of the acquired BMO Global Asset
Management (EMEA) business and higher integration related expenses, partially offset by disciplined expense management and reengineering, lower performance fee
related compensation and a favorable foreign exchange impact.
Income Taxes
Our effective tax rate was 19.9% for 2022 compared to 18.3% for the prior year. See Note 24 to our Consolidated Financial Statements for additional discussion on
income taxes.
52, Index
Ameriprise Financial, Inc.
Intellectual Property
We rely on a combination of contractual rights and copyright, trademark, and patent registrations and trade secret laws to establish and protect our intellectual
property. In the U.S. and other jurisdictions, we have established and registered, or filed applications to register, certain trademarks and service marks that we
consider important to the marketing of our products and services, including but not limited to the 
Ameriprise Financial, Threadneedle, RiverSource, Columbia
Threadneedle and Columbia Threadneedle Investments 
brands. We have in the past and will continue to establish and protect our intellectual property rights.
Enterprise Risk Management
Enterprise risk management and our risk management program is an important component in how we manage our business. All operating subsidiaries of Ameriprise
must comply with our enterprise risk management policy and framework, which: (i) establishes a structure for effective enterprise risk management, including
oversight and governance; (ii) delineates key constituent roles and responsibilities; and (iii) imposes a number of core risk management processes. The enterprise risk
management policy is designed to manage risks that may impact Ameriprise, including capital, credit, market, liquidity, operational, strategic, reputational, legal and
compliance, and product. The enterprise risk management policy is supported by underlying risk policies at business units that provide further detail on the business
unit’s risk governance, appetite, and tolerance.
Regulation
Virtually all aspects of our business, including the activities of the parent company and our subsidiaries, are subject to various federal, state, local and foreign laws
and regulations. These laws and regulations provide broad regulatory, administrative and enforcement powers to supervisory agencies and other bodies, including
U.S. federal and state regulatory and law enforcement agencies, foreign government agencies or regulatory bodies and U.S. and foreign securities exchanges. The
costs of complying with such laws and regulations are significant and increasing, and the consequences for the failure to comply may include civil or criminal
charges, fines, censure, the suspension of individual employees, restrictions on or prohibitions from engaging in certain lines of business (or in certain states or
countries), revocation of certain registrations and reputational damage. We have made and expect to need to continue to make significant investments in our
compliance and supervision processes, enhancing policies, procedures and oversight to monitor our compliance with the numerous legal and regulatory requirements
applicable to our business.
We operate in a highly scrutinized regulatory environment and it remains subject to change. Regulatory developments, both in and outside of the U.S., have resulted
or are expected to result in greater regulatory oversight and internal compliance obligations for firms across the financial services industry. In addition, we continue
to see enhanced legislative and regulatory interest regarding retirement investing and fiduciary initiatives, as well as environmental, social and governance (“ESG”)
consideration and responsible investing; cybersecurity and resilience; the use of artificial intelligence; responsible information and data collection, storage and use;
financial crime prevention; and privacy matters, and we will continue to closely review and monitor any legislative or regulatory proposals and changes. States in the
U.S. and jurisdictions outside the U.S. continue to add new complexity to the patchwork of laws and regulations already in existence relating to privacy,
cybersecurity, artificial intelligence and other areas and we are expecting similar new laws at the federal level and in multiple states in the U.S. The same complexity
resulting from multiple standards exists for retirement investing where individual states and federal regulators continue to propose or enact their own rules. These
legal and regulatory changes have impacted and may in the future impact how we are regulated and how we operate and govern our businesses.
The discussion and overview set forth below provides a general framework of the primary laws and regulations impacting our businesses. Certain of our subsidiaries
may be subject to one or more elements of this regulatory framework depending on the nature of their business, the products and services they provide and the
geographic locations in which they operate. To the extent the discussion includes references to statutory and regulatory provisions, it is qualified in its entirety by
reference to these statutory and regulatory provisions and is current only as of the date of this report.
10, Index
Ameriprise Financial, Inc.
term needs. As part of our goal-based approach to financial advice, our advisors help clients actively manage investing, saving and spending so they have a more
complete picture of their financial life.
A significant portion of revenues in this segment are fee-based and driven by the level of client assets, which is impacted by both market movements and net flows.
We also earn revenue and income through other sources, including the following:
•
We earn net investment income on owned assets from Ameriprise Certificate Company and Ameriprise Bank, both wholly owned subsidiaries of Ameriprise.
•
We earn financial planning fees as well as transaction and other fees.
•
We earn distribution fees for providing non-affiliated products and intersegment revenues for providing our affiliated products and services to our retail
clients. Intersegment expenses for this segment include investment management services provided by our Asset Management segment. All intersegment
activity is eliminated in our consolidated results.
Our Financial Advisor Platform
With more than 10,000 advisors, we are one of the top branded advisor platforms in the U.S. market. Advisors can choose to affiliate with us in multiple ways as
noted below, and each option offers different levels of support and compensation.
Slide 3 - Advisor Affiliations-v2.jpg
We offer the following products and services through our Advice & Wealth Management segment:
•
Financial planning and advice services to provide personalized financial planning and financial solutions for which we charge fees and may receive sales
commissions for selling products that aid in our clients’ plans.
•
Discretionary and non-discretionary investment advisory accounts for which we receive fees based on the assets held in that account, as well as related fees or
costs associated with the underlying securities held in that account.
•
Brokerage products and services for retail and institutional clients.
•
Cash management and banking products, including brokerage sweep programs, cash management accounts, savings accounts, credit cards, margin loans and
pledged asset lines of credit.
•
Face-amount certificates through the Ameriprise Certificate Company, a wholly owned subsidiary.
•
Mutual fund offerings from our own Columbia funds as well as approximately 135 unaffiliated mutual fund families, representing approximately 2,150 mutual funds
on our brokerage platform for which mutual fund families and other companies generally pay us a portion of the revenue generated from sales of those funds,
administrative fees, and fees from the ongoing management attributable to our clients’ ownership in the fund.
•
Insurance and annuities products from both RiverSource Life companies as well as certain third parties, and we receive a portion of the revenue generated from
the sale of unaffiliated products and certain administrative fees.
Our Segments - Asset Management
Through Columbia Threadneedle, we provide investment management, advice and products to retail, high net worth and institutional clients on a global scale.
4, source_sentence: How does Ameriprise Financial's distribution team support its global asset management business?
sentences: Index
Ameriprise Financial, Inc.
Other revenues increased $84 million, or 58%, for 2022 compared to the prior year primarily reflecting the yield on deposit receivables arising from reinsurance
transactions.
Expenses
Remeasurement (gains) losses of future policy benefit reserves increased $46 million for 2022 compared to the prior year primarily reflecting an increase in expense on
LTC insurance as policy and claim terminations returned to more normalized levels compared to the prior year which benefited from COVID-19 related impacts.
General and administrative expense, which excludes integration and restructuring charges and expenses attributable to CIEs, 
decreased $39 million, or 15%, to 2022
compared to the prior year primarily due to a larger unfavorable change in the mark-to-market impact on share-based compensation expenses in the prior year due to
share price appreciation.
Fair Value Measurements
We report certain assets and liabilities at fair value; specifically, separate account assets, derivatives, market risk benefits, embedded derivatives and most
investments and cash equivalents. Fair value assumes the exchange of assets or liabilities occurs in orderly transactions and is not the result of a forced liquidation
or distressed sale. We include actual market prices, or observable inputs, in our fair value measurements to the extent available. Broker quotes are obtained when
quotes from pricing services are not available. We validate prices obtained from third parties through a variety of means such as: price variance analysis, subsequent
sales testing, stale price review, price comparison across pricing vendors and due diligence reviews of vendors. See Note 16 to the Consolidated Financial Statements
for additional information on our fair value measurements.
Fair Value of Liabilities and Nonperformance Risk
Companies are required to measure the fair value of liabilities at the price that would be received to transfer the liability to a market participant (an exit price). Since
there is not a market for our obligations of our market risk benefits, fixed deferred indexed annuities, structured variable annuities, and IUL insurance, we consider the
assumptions participants in a hypothetical market would make to reflect an exit price. As a result, we adjust the valuation of market risk benefits, fixed deferred
indexed annuities, structured variable annuities, and IUL insurance by updating certain contractholder assumptions, adding explicit margins to provide for risk, and
adjusting the rates used to discount expected cash flows to reflect a current market estimate of our nonperformance risk. The nonperformance risk adjustment is
based on observable market data adjusted to estimate the risk of our life insurance company subsidiaries not fulfilling these liabilities. Consistent with general market
conditions, this estimate resulted in a spread over the U.S. Treasury curve as of December 31, 2023. As our estimate of this spread widens or tightens, the liability will
decrease or increase, respectively. If this nonperformance credit spread moves to a zero spread over the U.S. Treasury curve, the reduction to future total equity
would be approximately $795 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on December 31, 2023
credit spreads.
Liquidity and Capital Resources
Overview
As of December 31, 2023 and 2022, we had Available Capital for Capital Adequacy of $5.4 billion and $5.2 billion, respectively. Available Capital for Capital Adequacy
best reflects the available capital resources of our operations.
We maintained substantial liquidity during the year ended December 31, 2023. At December 31, 2023 and 2022, we had $7.5 billion and $7.0 billion, respectively, in
cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.
At December 31, 2023 and 2022, the parent company had $544 million and $389 million, respectively, in cash, cash equivalents, and unencumbered liquid securities.
Liquid securities predominantly include U.S. government agency mortgage back securities. Additional sources of liquidity include a line of credit with an affiliate up
to $727 million and an unsecured revolving committed credit facility for up to $1.0 billion that expires in June 2026. Management’s estimate of liquidity available to the
parent company in a volatile and uncertain economic environment as of December 31, 2023 was $1.8 billion which includes cash, cash equivalents, unencumbered
liquid securities, the line of credit with an affiliate and a portion of the committed credit facility., Index
Ameriprise Financial, Inc.
Distribution fees decreased $4 million for 2022 compared to the prior year reflecting lower average equity markets and decreased transactional activity mostly offset
by $264 million of higher fees on off-balance sheet brokerage cash due to an increase in average short-term interest rates.
Net investment income increased $491 million for 2022 compared to the prior year primarily due to higher average invested assets due to increased bank deposits and
higher investment yields on the investment portfolio supporting the bank and certificate products.
Banking and deposit interest expense increased $64 million for 2022 compared to the prior year primarily due to higher average crediting rates on bank cash deposits
and certificates and increased cash deposits at the bank.
Expenses
Distribution expenses decreased $123 million, or 3%, for 2022 compared to the prior year reflecting market depreciation and decreased transactional activity.
General and administrative expense increased $114 million, or 8%, for 2022 compared to the prior year primarily due to higher volume related expenses and
investments in business growth as well as lower staffing levels and limited travel and entertainment expenses in the prior year.
Asset Management
The following table presents managed assets by type:
December 31,
Change
Average
Change
December 31,
2022
2021
2022
2021
(in billions)
Equity
$
301.2 
$
402.9 
$
(101.7)
(25)
%
$
333.1 
$
338.3 
$
(5.2)
(2)
%
Fixed income
210.0 
277.0 
(67.0)
(24)
232.0 
211.8 
20.2 
10 
Money market
21.9 
10.1 
11.8 
NM
17.1 
6.5 
10.6 
NM
Alternative
33.7 
39.9 
(6.2)
(16)
37.3 
25.8 
11.5 
45 
Hybrid and other
17.2 
24.2 
(7.0)
(29)
19.8 
22.6 
(2.8)
(12)
Total managed assets
$
584.0 
$
754.1 
$
(170.1)
(23)
%
$
639.3 
$
605.0 
$
34.3 
6 
%
NM Not Meaningful - variance equal to or greater than 100%.
 Average ending balances are calculated using an average of the prior period’s ending balance and all months in the current period.
 (1)
(1)
55, Index
Ameriprise Financial, Inc.
•
Institutional and retail separately managed accounts for a range of clients, including pension, profit-sharing, employee savings, sovereign wealth funds and
endowment funds, accounts of large- and medium-sized businesses and governmental clients, as well as the accounts of high net worth individuals and smaller
institutional clients, including tax-exempt and not-for-profit organizations for which we receive management and performance-related fees.
•
Other separately managed accounts, including those offered through models that represent assets under advisement.
•
Management of owned assets such as assets held in the general account of our RiverSource Life companies, Ameriprise Certificate Company and Ameriprise
Bank.
•
Management of CLOs, which includes providing collateral management services to special purpose vehicles that primarily invest in syndicated bank loans and
issue multiple tranches of securities collateralized by the assets for which we earn fees based on the value of assets and performance-based fees.
•
Private funds of various types where we provide investment management and related services to private, pooled investment vehicles organized as limited
partnerships, limited liability companies, or other entities for which we may receive fees based on the value of the assets or performance-based fees.
•
Collective funds and separately managed accounts sponsored by Ameriprise Trust Company (“ATC”) and offered to certain qualified institutional clients such
as retirement, pension, and profit-sharing plans for which we receive management fees.
•
Sub-advised accounts for certain U.S. and non-U.S. funds, private banking individually managed accounts, common trust funds, and other portfolios sponsored
or advised by other firms for which we earn management fees and possibly performance-based fees.
Distribution
We maintain distribution teams and capabilities that aid the sales, marketing, and support of the products and services of our global asset management business.
These distribution activities are generally organized into two major categories: retail distribution and institutional/high net worth distribution. However, alternatives
and certain other areas have a level of specialized distribution.
Our Segments - Retirement & Protection Solutions
RiverSource solutions are one way we deliver on the Ameriprise client experience and 
Confident Retirement
 approach. We offer clients annuities, life insurance and
disability income insurance products to meet their needs or current stage in life—whether that is covering essentials, ensuring lifestyle, preparing for the unexpected
or leaving a legacy. RiverSource seeks to partner with our advisors to address clients’ goals and long-term needs at a differentiated level and provide a strong risk
profile.
Retirement Solutions
Through our advisors, we provide 
RiverSource
 annuity products to clients to help individuals address their asset accumulation and income goals. Our advisor
network is the only distributor of new 
RiverSource
 annuity products, although advisors offer fixed, variable, and structured annuities from selected unaffiliated
insurers. As part of the continued evolution of the business model for our Retirement & Protection Solutions segment, we focus on the accumulation solutions
clients want (such as the structured variable annuity, a registered index-linked annuity).
Revenues for our variable annuity products are primarily earned as fees based on a contractholder’s benefit base, contract value or separate account values, which is
impacted by both market movements and net asset flows. We also earn net investment income on general account assets supporting reserves for non-life contingent
payout annuities, structured variable annuities, certain guaranteed benefits and fixed investment options offered with variable annuities, and on capital supporting
the business. In addition, we receive fees charged on assets allocated to our separate accounts to cover administrative costs and a portion of the management fees
from the underlying investment accounts in which assets are invested. Revenues for our payout annuities with a life contingent feature are earned as premium
revenue. Intersegment revenues for this segment reflect fees paid by our Asset Management segment for marketing support and other services provided in
connection with the availability of VIT Funds. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth
Management segment, as well as expenses for investment management services provided by our Asset Management segment. All intersegment activity is eliminated
in our consolidated results.
Protection
We provide life and disability income insurance products to address the protection and risk management needs of our retail clients. New 
RiverSource
 insurance
products are exclusively offered through our advisor network. Our advisors also offer insurance products of unaffiliated carriers. The primary sources of revenues for
our protection business are premiums, fees and charges we receive to assume insurance-related risk. We earn net investment income on owned assets supporting
insurance reserves and on capital supporting the business., source_sentence: What critical accounting estimate is highlighted regarding the valuation of investments in Ameriprise Financial, Inc.'s financial statements?
sentences: Additionally, users can sign up to receive automatic
notifications when new materials are posted. The information found on the website is not incorporated by reference into this report or in any other report or
document we furnish or file with the SEC.
Item 1A. 
Risk Factors
Our operations and financial results are subject to various risks and uncertainties, including those described below, that could have a material adverse effect on our
business, financial condition or results of operations and could cause the trading price of our common stock to decline. We believe that the following information
identifies the material factors affecting our company based on the information we currently know. However, the risks and uncertainties our company faces are not
limited to those described below. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect
our business.
Market Risks
Our results of operations and financial condition may be adversely affected by market fluctuations and by economic, political and other factors.
Our results of operations and financial condition may be materially affected by market fluctuations and by economic and other factors. Such factors, which can be
global, regional, national or local in nature, include: (i) the level and volatility of the markets, including equity prices, interest rates, commodity prices, currency values
and other market indices and drivers; 
(ii) geopolitical strain, terrorism and armed conflicts, (iii) political dynamics or elections and social, economic and market
conditions; (iv) the availability and cost of capital; (v) global health emergencies (such as the coronavirus disease 2019 (“COVID-19”) pandemic); (vi) technological
changes and
16, Index
Ameriprise Financial, Inc.
The following table reconciles net income to adjusted operating earnings and the five-point average of quarter-end equity to adjusted operating equity:
 
Years Ended December 31,
2023
2022
(in millions)
Net income
$
2,556 
$
3,149 
Less: Adjustments 
(555)
264 
Adjusted operating earnings
$
3,111 
$
2,885 
Total Ameriprise Financial, Inc. shareholders’ equity
$
4,116 
$
4,170 
Less: AOCI, net of tax
(2,297)
(1,769)
Total Ameriprise Financial, Inc. shareholders’ equity, excluding AOCI
6,413 
5,939 
Less: Equity impacts attributable to CIEs
(4)
— 
Adjusted operating equity
$
6,417 
$
5,939 
Return on equity, excluding AOCI
39.9 
%
53.0 
%
Adjusted operating return on equity, excluding AOCI
48.5 
%
48.6 
%
Adjustments reflect the sum of after-tax net realized investment gains/losses, net of the reinsurance accrual; the market impact on non-traditional long-duration products (including
variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual; mean reversion related impacts; block transfer reinsurance
transaction impacts; the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; gain or loss on disposal of a
business that is not considered discontinued operations; integration and restructuring charges; income (loss) from discontinued operations; and net income (loss) from consolidated
investment entities. After-tax is calculated using the statutory tax rate of 21%.
Adjusted operating return on equity, excluding AOCI is calculated using adjusted operating earnings in the numerator and Ameriprise Financial shareholders’ equity, excluding AOCI
and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory rate of 21%.
The following table reconciles GAAP total equity to Available Capital for Capital Adequacy:
December 31, 2023
December 31, 2022
(in millions)
Ameriprise Financial, Inc. GAAP total equity
$
4,729 
$
3,803 
Less: AOCI
(1,766)
(2,546)
Ameriprise Financial, Inc. GAAP total equity, excluding AOCI
6,495 
6,349 
Less: RiverSource Life Insurance Company GAAP equity, excluding AOCI
1,851 
2,057 
Add: RiverSource Life Insurance Company statutory total adjusted capital
3,093 
3,103 
Less: Goodwill and intangibles
2,622 
2,485 
Add: Other adjustments
303 
299 
   Available Capital for Capital Adequacy
$
5,418 
$
5,209 
Critical Accounting Estimates
The accounting and reporting policies that we use affect our Consolidated Financial Statements. Certain of our accounting and reporting policies are critical to an
understanding of our consolidated results of operations and financial condition and, in some cases, the application of these policies can be significantly affected by
the estimates, judgments and assumptions made by management during the preparation of our Consolidated Financial Statements. The accounting and reporting
policies and estimates we have identified as fundamental to a full understanding of our consolidated results of operations and financial condition are described
below. See Note 2 to our Consolidated Financial Statements for further information about our accounting policies.
Valuation of Investments
The most significant component of our investments is our Available-for-Sale securities, which we carry at fair value within our Consolidated Balance Sheets. See
Note 16 to our Consolidated Financial Statements for discussion of the fair value of our Available-for-Sale securities. Financial markets are subject to significant
movements in valuation and liquidity, which can impact our ability to liquidate and the selling price that can be realized for our securities and increases the use of
judgment in determining the estimated fair value of certain investments. We are unable to predict impacts and determine sensitivities in reported amounts reflecting
such market movements on our aggregate Available-for-Sale portfolio. Changes to these assumptions do not occur in isolation and it is impracticable to predict such
impacts at the individual security unit of measure which are predominately Level 2 fair value and based on observable inputs.
(1)
 (2)
(1) 
(2) 
34, Our comprehensive hedging program focuses mainly
on first order sensitivities of assets and liabilities: Equity Market Level (Delta), Interest Rate Level (Rho) and Volatility (Vega). Additionally, various second order
sensitivities are managed. We use various options, swaptions, swaps and futures to manage risk exposures. The exposures are measured and monitored daily, and
adjustments to the hedge portfolio are made as necessary.
To evaluate interest rate and equity price risk we perform sensitivity testing which measures the impact on pretax income from the sources listed below for a 12-month
period following a hypothetical 100 basis point increase in interest rates or a hypothetical 10% decline in equity prices. The interest rate risk test assumes a sudden
100 basis point parallel shift in the yield curve, with rates then staying at those levels for the next 12 months. The equity price risk test assumes a sudden 10% drop in
equity prices, with equity prices then staying at those levels for the next 12 months. In estimating the values of variable annuities, indexed annuities, stock market
certificates, indexed universal life (“IUL”) insurance and the associated hedging instruments, we assume no change in implied market volatility despite the 10% drop
in equity prices.
65
pipeline_tag: sentence-similarity
library_name: sentence-transformers
metrics: cosine_accuracy@1, cosine_accuracy@3, cosine_accuracy@5, cosine_accuracy@10, cosine_precision@1, cosine_precision@3, cosine_precision@5, cosine_precision@10, cosine_recall@1, cosine_recall@3, cosine_recall@5, cosine_recall@10, cosine_ndcg@10, cosine_mrr@10, cosine_map@100, dot_accuracy@1, dot_accuracy@3, dot_accuracy@5, dot_accuracy@10, dot_precision@1, dot_precision@3, dot_precision@5, dot_precision@10, dot_recall@1, dot_recall@3, dot_recall@5, dot_recall@10, dot_ndcg@10, dot_mrr@10, dot_map@100
model-index: name: SentenceTransformer based on Alibaba-NLP/gte-large-en-v1.5
results: task: type: information-retrieval
name: Information Retrieval
dataset: name: Unknown
type: unknown
metrics: type: cosine_accuracy@1
value: 0.6062146892655367
name: Cosine Accuracy@1
verified: no, type: cosine_accuracy@3
value: 0.8508474576271187
name: Cosine Accuracy@3
verified: no, type: cosine_accuracy@5
value: 0.9225988700564972
name: Cosine Accuracy@5
verified: no, type: cosine_accuracy@10
value: 0.9711864406779661
name: Cosine Accuracy@10
verified: no, type: cosine_precision@1
value: 0.6062146892655367
name: Cosine Precision@1
verified: no, type: cosine_precision@3
value: 0.28361581920903955
name: Cosine Precision@3
verified: no, type: cosine_precision@5
value: 0.18451977401129946
name: Cosine Precision@5
verified: no, type: cosine_precision@10
value: 0.09711864406779663
name: Cosine Precision@10
verified: no, type: cosine_recall@1
value: 0.6062146892655367
name: Cosine Recall@1
verified: no, type: cosine_recall@3
value: 0.8508474576271187
name: Cosine Recall@3
verified: no, type: cosine_recall@5
value: 0.9225988700564972
name: Cosine Recall@5
verified: no, type: cosine_recall@10
value: 0.9711864406779661
name: Cosine Recall@10
verified: no, type: cosine_ndcg@10
value: 0.7958373595232834
name: Cosine Ndcg@10
verified: no, type: cosine_mrr@10
value: 0.7385916061339796
name: Cosine Mrr@10
verified: no, type: cosine_map@100
value: 0.7402573835068733
name: Cosine Map@100
verified: no, type: dot_accuracy@1
value: 0.6062146892655367
name: Dot Accuracy@1
verified: no, type: dot_accuracy@3
value: 0.8502824858757062
name: Dot Accuracy@3
verified: no, type: dot_accuracy@5
value: 0.9225988700564972
name: Dot Accuracy@5
verified: no, type: dot_accuracy@10
value: 0.9711864406779661
name: Dot Accuracy@10
verified: no, type: dot_precision@1
value: 0.6062146892655367
name: Dot Precision@1
verified: no, type: dot_precision@3
value: 0.2834274952919021
name: Dot Precision@3
verified: no, type: dot_precision@5
value: 0.18451977401129946
name: Dot Precision@5
verified: no, type: dot_precision@10
value: 0.09711864406779662
name: Dot Precision@10
verified: no, type: dot_recall@1
value: 0.6062146892655367
name: Dot Recall@1
verified: no, type: dot_recall@3
value: 0.8502824858757062
name: Dot Recall@3
verified: no, type: dot_recall@5
value: 0.9225988700564972
name: Dot Recall@5
verified: no, type: dot_recall@10
value: 0.9711864406779661
name: Dot Recall@10
verified: no, type: dot_ndcg@10
value: 0.7952805938024372
name: Dot Ndcg@10
verified: no, type: dot_mrr@10
value: 0.7378952560308499
name: Dot Mrr@10
verified: no, type: dot_map@100
value: 0.7395749514077584
name: Dot Map@100
verified: no
Likes: 0 | All-time downloads: 181
Created: 2024-11-13 12:59:29