|        |
|--------|
|        |
|   |
|   |

|        |                                                                                                   |
|--------|---------------------------------------------------------------------------------------------------|
| ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|   |                                                                                                    |
|---|----------------------------------------------------------------------------------------------------|
| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |
| Delaware                                                       |   | 41-6009975 |
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |   |
| 1099 Ameriprise Financial Center, Minneapolis, Minnesota       |   | 55474 |
| (Address of principal executive offices)                       |   | (Zip Code) |

|                                      |
|--------------------------------------|
|                                      |  |
| Large Accelerated Filer  o | Accelerated Filer  o |
| Non-Accelerated Filer  x   | Smaller reporting company  o |

|                                         |
|-----------------------------------------|
|                                         |  |  |
| Class                                   |   | Outstanding at August 4, 2014 |
| Common Shares (par value $10 per share) |   | 150,000 shares |

|        |
|--------|
|        |
|   |
|   |

----

|               |
|---------------|
|               |  |  |  |
| Part I.  | Financial Information: |   |
|          | Item 1. | Financial Statements |   |
|          |   | Consolidated Statements of Operations — Three months and six months ended June 30, 2014 and 2013 | 3 |
|          |   | Consolidated Statements of Comprehensive Income — Three months and six months ended June 30, 2014 and 2013 | 4 |
|          |   | Consolidated Balance Sheets — June 30, 2014 and December 31, 2013 | 5 |
|          |   | Consolidated Statements of Shareholder’s Equity — Six months ended June 30, 2014 and 2013 | 6 |
|          |   | Consolidated Statements of Cash Flows — Six months ended June 30, 2014 and 2013 | 7 |
|          |   | Notes to Consolidated Financial Statements | 8 |
|          | Item 2. | Management's Narrative Analysis | 25 |
|          | Item 4. | Controls and Procedures | 26 |
| Part II. | Other Information: |   |
|          | Item 1. | Legal Proceedings | 27 |
|          | Item 1A. | Risk Factors | 27 |
|          | Item 6. | Exhibits | 27 |
|          | Signatures | 28 |
|          | Exhibit Index | E-1 |

----

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                             | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                                             | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                                             |   |   |   |   |   |   |   |
| Investment income                                                                | $ | 22,191 |  |   | $ | 21,483 |  |   | $ | 44,346 |  |   | $ | 43,877 |  |
| Investment expenses                                                              | 6,693 |  |   | 6,345 |  |   | 14,411 |  |   | 12,758 |  |
| Net investment income before provision for certificate reserves and income taxes | 15,498 |  |   | 15,138 |  |   | 29,935 |  |   | 31,119 |  |
| Net provision for certificate reserves                                           | 6,563 |  |   | 7,589 |  |   | 13,353 |  |   | 15,696 |  |
| Net investment income before income taxes                                        | 8,935 |  |   | 7,549 |  |   | 16,582 |  |   | 15,423 |  |
| Income tax expense                                                               | 3,273 |  |   | 2,742 |  |   | 6,171 |  |   | 5,659 |  |
| Net investment income                                                            | 5,662 |  |   | 4,807 |  |   | 10,411 |  |   | 9,764 |  |
|                                                                             |   |   |   |   |   |   |   |
| Net realized gain (loss) on investments                                          | 103 |  |   | (768 | ) |   | 472 |  |   | (2,108 | ) |
| Income tax expense (benefit)                                                     | 36 |  |   | (269 | ) |   | 165 |  |   | (738 | ) |
| Net realized gain (loss) on investments, after-tax                               | 67 |  |   | (499 | ) |   | 307 |  |   | (1,370 | ) |
| Net income                                                                       | $ | 5,729 |  |   | $ | 4,308 |  |   | $ | 10,718 |  |   | $ | 8,394 |  |
|                                                                             |   |   |   |   |   |   |   |
| Supplemental Disclosures:                                                        |   |  |   |   |  |   |   |  |   |   |  |
| Total other-than-temporary impairment losses on securities                       | $ | (42 | ) |   | $ | (279 | ) |   | $ | (56 | ) |   | $ | (283 | ) |
| Portion of loss recognized in other comprehensive income (loss) (before taxes)   | (229 | ) |   | (235 | ) |   | (518 | ) |   | (1,682 | ) |
| Net impairment losses recognized in net realized gain (loss) on investments      | $ | (271 | ) |   | $ | (514 | ) |   | $ | (574 | ) |   | $ | (1,965 | ) |
|  See Notes to Consolidated Financial Statements.                            |

----

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                     | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                                     | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                                     |   |   |   |   |   |   |   |
| Net income                                                               | $ | 5,729 |  |   | $ | 4,308 |  |   | $ | 10,718 |  |   | $ | 8,394 |  |
| Other comprehensive income (loss), net of tax:                           |   |  |   |   |  |   |   |  |   |   |  |
| Net unrealized gains (losses) on securities:                             |   |  |   |   |  |   |   |  |   |   |  |
| Net unrealized securities gains (losses) arising during the period       | 6,400 |  |   | (20,172 | ) |   | 9,853 |  |   | (17,135 | ) |
| Reclassification of net securities (gains) losses included in net income | (66 | ) |   | 494 |  |   | (306 | ) |   | 1,358 |  |
| Total other comprehensive income (loss), net of tax                      | 6,334 |  |   | (19,678 | ) |   | 9,547 |  |   | (15,777 | ) |
| Total comprehensive income (loss)                                        | $ | 12,063 |  |   | $ | (15,370 | ) |   | $ | 20,265 |  |   | $ | (7,383 | ) |
| See Notes to Consolidated Financial Statements.                          |

----

|                                                                     |
|---------------------------------------------------------------------|
|                                                                     |  |  |  |  |  |  |  |
|                                                                | June 30, 2014 |   | December 31, 2013 |
| Assets                                                              | (unaudited) |   |   |  |
| Qualified Assets                                                    |   |  |   |   |  |
| Cash and cash equivalents                                           | $ | 91,900 |  |   | $ | 74,526 |  |
| Investments in unaffiliated issuers                                 | 4,339,547 |  |   | 4,118,758 |  |
| Receivables                                                         | 23,379 |  |   | 26,586 |  |
| Equity options, purchased                                           | 55,161 |  |   | 72,848 |  |
| Total qualified assets                                              | 4,509,987 |  |   | 4,292,718 |  |
| Deferred taxes, net                                                 | 925 |  |   | 1,245 |  |
| Total assets                                                        | $ | 4,510,912 |  |   | $ | 4,293,963 |  |
|                                                                |   |   |   |
| Liabilities and Shareholder's Equity                                |   |  |   |   |  |
| Liabilities                                                         |   |  |   |   |  |
| Certificate reserves                                                | $ | 4,183,907 |  |   | $ | 3,983,707 |  |
| Current taxes payable to parent                                     | 7,356 |  |   | 2,924 |  |
| Equity options, written                                             | 48,761 |  |   | 65,958 |  |
| Payable for investment securities purchased                         | — |  |   | 1,566 |  |
| Due to related party and other liabilities                          | 27,448 |  |   | 16,633 |  |
| Total liabilities                                                   | 4,267,472 |  |   | 4,070,788 |  |
|                                                                |   |   |   |
| Shareholder's Equity                                                |   |  |   |   |  |
| Common shares ($10 par value, 150,000 shares authorized and issued) | 1,500 |  |   | 1,500 |  |
| Additional paid-in capital                                          | 201,517 |  |   | 201,517 |  |
| Total retained earnings                                             | 34,017 |  |   | 23,299 |  |
| Accumulated other comprehensive income (loss), net of tax           | 6,406 |  |   | (3,141 | ) |
| Total shareholder's equity                                          | 243,440 |  |   | 223,175 |  |
| Total liabilities and shareholder's equity                          | $ | 4,510,912 |  |   | $ | 4,293,963 |  |
| See Notes to Consolidated Financial Statements.                     |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |   |   |   |   |   |   | Retained Earnings |   |   |   |   |
|                                            | Number of Outstanding Shares |   | Common Shares |   | Additional Paid-In Capital |   | Appropriated for Pre-Declared Additional Credits and Interest |   | Appropriated for Additional Interest on Advance Payments |   | Unappropriated |   | Accumulated Other Comprehensive Income (Loss), Net of Tax |   | Total |
|                                            |
| Balance at January 1, 2013                      | 150,000 |  |   | $ | 1,500 |  |   | $ | 191,517 |  |   | $ | — |  |   | $ | 15 |  |   | $ | 9,137 |  |   | $ | 5,371 |  |   | $ | 207,540 |  |
| Comprehensive loss:                             |
| Net income                                      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 8,394 |  |   | — |  |   | 8,394 |  |
| Other comprehensive loss, net of tax            | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (15,777 | ) |   | (15,777 | ) |
| Total comprehensive loss                        |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   | (7,383 | ) |
| Transfer to appropriated/from unappropriated    | — |  |   | — |  |   | — |  |   | 4 |  |   | — |  |   | (4 | ) |   | — |  |   | — |  |
| Capital contribution from parent                | — |  |   | — |  |   | 5,000 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 5,000 |  |
| Balance atJune 30, 2013                    | 150,000 |  |   | $ | 1,500 |  |   | $ | 196,517 |  |   | $ | 4 |  |   | $ | 15 |  |   | $ | 17,527 |  |   | $ | (10,406 | ) |   | $ | 205,157 |  |
|                                            |
| Balance at January 1, 2014                      | 150,000 |  |   | $ | 1,500 |  |   | $ | 201,517 |  |   | $ | 26 |  |   | $ | 15 |  |   | $ | 23,258 |  |   | $ | (3,141 | ) |   | $ | 223,175 |  |
| Comprehensive income:                           |
| Net income                                      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 10,718 |  |   | — |  |   | 10,718 |  |
| Other comprehensive income, net of tax          | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 9,547 |  |   | 9,547 |  |
| Total comprehensive income                      |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   | 20,265 |  |
| Transfer to appropriated/from unappropriated    | — |  |   | — |  |   | — |  |   | 66 |  |   | — |  |   | (66 | ) |   | — |  |   | — |  |
| Balance atJune 30, 2014                    | 150,000 |  |   | $ | 1,500 |  |   | $ | 201,517 |  |   | $ | 92 |  |   | $ | 15 |  |   | $ | 33,910 |  |   | $ | 6,406 |  |   | $ | 243,440 |  |
| See Notes to Consolidated Financial Statements. |

----

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |
|                                                                              | Six Months Ended June 30, |
|                                                                              | 2014 |   | 2013 |
| Cash Flows from Operating Activities                                              |
| Net income                                                                        | $ | 10,718 |  |   | $ | 8,394 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |
| Amortization of premiums, accretion of discounts, net                             | 15,152 |  |   | 15,852 |  |
| Deferred income tax provision                                                     | 8 |  |   | 1,105 |  |
| Net realized (gain) loss on Available-for-Sale securities                         | (1,045 | ) |   | 124 |  |
| Other net realized (gain) loss                                                    | (1 | ) |   | 19 |  |
| Other-than-temporary impairments and provision for loan loss                      | 574 |  |   | 1,965 |  |
| Changes in operating assets and liabilities:                                      |
| Dividends and interest receivable                                                 | 1,412 |  |   | (441 | ) |
| Certificate reserves, net                                                         | (263 | ) |   | 160 |  |
| Deferred taxes, net                                                               | (5,374 | ) |   | — |  |
| Current taxes payable to/receivable from parent, net                              | 4,432 |  |   | 3,534 |  |
| Derivatives, net of collateral                                                    | 2,090 |  |   | 53 |  |
| Other liabilities                                                                 | 8,059 |  |   | 9,385 |  |
| Other, net                                                                        | 579 |  |   | (1,853 | ) |
| Net cash provided by operating activities                                         | 36,341 |  |   | 38,297 |  |
|                                                                              |   |   |   |
| Cash Flows from Investing Activities                                              |
| Available-for-Sale securities:                                                    |
| Sales                                                                             | 11,884 |  |   | 11,825 |  |
| Maturities, redemptions and calls                                                 | 511,951 |  |   | 485,116 |  |
| Purchases                                                                         | (752,271 | ) |   | (794,427 | ) |
| Syndicated loans, commercial mortgage loans and real estate owned:                |
| Sales, maturities and repayments                                                  | 8,881 |  |   | 28,699 |  |
| Purchases and fundings                                                            | — |  |   | (5,513 | ) |
| Certificate loans, net                                                            | 125 |  |   | 552 |  |
| Net cash used in investing activities                                             | (219,430 | ) |   | (273,748 | ) |
|                                                                              |   |   |   |
| Cash Flows from Financing Activities                                              |
| Payments from certificate holders and other additions                             | 1,314,772 |  |   | 1,124,583 |  |
| Certificate maturities and cash surrenders                                        | (1,114,309 | ) |   | (918,223 | ) |
| Capital contribution from parent                                                  | — |  |   | 5,000 |  |
| Net cash provided by financing activities                                         | 200,463 |  |   | 211,360 |  |
| Net increase (decrease) in cash and cash equivalents                              | 17,374 |  |   | (24,091 | ) |
| Cash and cash equivalents at beginning of period                                  | 74,526 |  |   | 89,232 |  |
| Cash and cash equivalents at end of period                                        | $ | 91,900 |  |   | $ | 65,141 |  |
|                                                                              |   |   |   |
| Supplemental disclosures including non-cash transactions:                         |
| Cash paid (received) for income taxes                                             | $ | 6,863 |  |   | $ | (992 | ) |
| Cash paid for interest                                                            | 15,596 |  |   | 19,122 |  |
| See Notes to Consolidated Financial Statements.                                   |

----

----

|                                                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                  |  |  |  |  |  |  |  |
|                                                                                                                                                             | June 30, 2014 |   | December 31, 2013 |
| Available-for-Sale securities:                                                                                                                                   |   |  |   |   |  |
| Fixed maturities, at fair value (amortized cost: 2014, $4,201,967; 2013, $3,987,510)                                                                             | $ | 4,206,956 |  |   | $ | 3,978,248 |  |
| Common stocks, at fair value (cost: 2014, $2,343; 2013, $2,215)                                                                                                  | 7,434 |  |   | 6,323 |  |
| Commercial mortgage loans and syndicated loans, at cost (less allowance for loan losses: 2014, $3,464; 2013, $4,461; fair value: 2014, $127,427; 2013, $134,114) | 123,036 |  |   | 131,241 |  |
| Certificate loans — secured by certificate reserves, at cost, which approximates fair value                                                                | 1,094 |  |   | 1,219 |  |
| Real estate owned, at fair value less costs to sell                                                                                                              | 1,027 |  |   | 1,727 |  |
| Total                                                                                                                                                            | $ | 4,339,547 |  |   | $ | 4,118,758 |  |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     |   | June 30, 2014 |
| Description of Securities      |   | Amortized Cost |   | Gross Unrealized Gains |   | Gross Unrealized Losses |   | Fair Value |   | Noncredit OTTI (1) |
|                                     |   | (in thousands) |
| Residential mortgage backed securities   |   | $ | 2,270,962 |  |   | $ | 16,678 |  |   | $ | (28,611 | ) |   | $ | 2,259,029 |  |   | $ | (9,662 | ) |
| Corporate debt securities                |   | 1,016,533 |  |   | 9,742 |  |   | (380 | ) |   | 1,025,895 |  |   | 3 |  |
| Commercial mortgage backed securities    |   | 403,774 |  |   | 6,085 |  |   | (270 | ) |   | 409,589 |  |   | — |  |
| Asset backed securities                  |   | 510,320 |  |   | 3,978 |  |   | (2,277 | ) |   | 512,021 |  |   | — |  |
| U.S. government and agencies obligations |   | 378 |  |   | 44 |  |   | — |  |   | 422 |  |   | — |  |
| Common stocks                            |   | 2,343 |  |   | 5,095 |  |   | (4 | ) |   | 7,434 |  |   | 2,254 |  |
| Total                                    |   | $ | 4,204,310 |  |   | $ | 41,622 |  |   | $ | (31,542 | ) |   | $ | 4,214,390 |  |   | $ | (7,405 | ) |

----

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     |   | December 31, 2013 |
| Description of Securities      |   | Amortized Cost |   | Gross Unrealized Gains |   | Gross Unrealized Losses |   | Fair Value |   | Noncredit OTTI (1) |
|                                     |   | (in thousands) |
| Residential mortgage backed securities   |   | $ | 2,230,983 |  |   | $ | 15,580 |  |   | $ | (38,506 | ) |   | $ | 2,208,057 |  |   | $ | (14,697 | ) |
| Corporate debt securities                |   | 935,794 |  |   | 9,847 |  |   | (1,254 | ) |   | 944,387 |  |   | 3 |  |
| Commercial mortgage backed securities    |   | 303,071 |  |   | 4,273 |  |   | (506 | ) |   | 306,838 |  |   | — |  |
| Asset backed securities                  |   | 517,283 |  |   | 4,195 |  |   | (2,921 | ) |   | 518,557 |  |   | — |  |
| U.S. government and agencies obligations |   | 379 |  |   | 30 |  |   | — |  |   | 409 |  |   | — |  |
| Common stocks                            |   | 2,215 |  |   | 4,109 |  |   | (1 | ) |   | 6,323 |  |   | 1,839 |  |
| Total                                    |   | $ | 3,989,725 |  |   | $ | 38,034 |  |   | $ | (43,188 | ) |   | $ | 3,984,571 |  |   | $ | (12,855 | ) |

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                   |   | June 30, 2014 |   | December 31, 2013 |
| Ratings                |   | Amortized Cost |   | Fair Value |   | Percent of Total Fair Value |   | Amortized Cost |   | Fair Value |   | Percent of Total Fair Value |
|                   |   | (in thousands, except percentages) |
| AAA                    |   | $ | 1,791,146 |  |   | $ | 1,800,902 |  |   | 43 | % |   | $ | 1,763,939 |  |   | $ | 1,766,688 |  |   | 44 | % |
| AA                     |   | 78,406 |  |   | 80,347 |  |   | 2 |  |   | 102,397 |  |   | 104,544 |  |   | 3 |  |
| A                      |   | 1,077,294 |  |   | 1,075,263 |  |   | 26 |  |   | 1,125,224 |  |   | 1,122,795 |  |   | 28 |  |
| BBB                    |   | 1,014,624 |  |   | 1,022,656 |  |   | 24 |  |   | 733,685 |  |   | 741,023 |  |   | 19 |  |
| Below investment grade |   | 240,497 |  |   | 227,788 |  |   | 5 |  |   | 262,265 |  |   | 243,198 |  |   | 6 |  |
| Total fixed maturities |   | $ | 4,201,967 |  |   | $ | 4,206,956 |  |   | 100 | % |   | $ | 3,987,510 |  |   | $ | 3,978,248 |  |   | 100 | % |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities         |   | June 30, 2014 |
| Less than 12 months     |   | 12 months or more |   | Total |
| Number of Securities                   |   | Fair Value |   | Unrealized Losses |   | Number of Securities |   | Fair Value |   | Unrealized Losses |   | Number of Securities |   | Fair Value |   | Unrealized Losses |
|                                   |   | (in thousands, except number of securities) |
| Residential mortgage backed securities | 48 |  |   | $ | 531,219 |  |   | $ | (4,884 | ) |   | 90 |  |   | $ | 636,663 |  |   | $ | (23,727 | ) |   | 138 |  |   | $ | 1,167,882 |  |   | $ | (28,611 | ) |
| Corporate debt securities              | 10 |  |   | 78,524 |  |   | (303 | ) |   | 1 |  |   | 12,338 |  |   | (77 | ) |   | 11 |  |   | 90,862 |  |   | (380 | ) |
| Commercial mortgage backed securities  | 6 |  |   | 38,401 |  |   | (205 | ) |   | 1 |  |   | 8,810 |  |   | (65 | ) |   | 7 |  |   | 47,211 |  |   | (270 | ) |
| Asset backed securities                | 5 |  |   | 82,823 |  |   | (677 | ) |   | 10 |  |   | 156,829 |  |   | (1,600 | ) |   | 15 |  |   | 239,652 |  |   | (2,277 | ) |
| Common stocks                          |   | 2 |  |   | 136 |  |   | (4 | ) |   | — |  |   | — |  |   | — |  |   | 2 |  |   | 136 |  |   | (4 | ) |
| Total                                  | 71 |  |   | $ | 731,103 |  |   | $ | (6,073 | ) |   | 102 |  |   | $ | 814,640 |  |   | $ | (25,469 | ) |   | 173 |  |   | $ | 1,545,743 |  |   | $ | (31,542 | ) |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities         |   | December 31, 2013 |
| Less than 12 months     |   | 12 months or more |   | Total |
| Number of Securities                   |   | Fair Value |   | Unrealized Losses |   | Number of Securities |   | Fair Value |   | Unrealized Losses |   | Number of Securities |   | Fair Value |   | Unrealized Losses |
|                                   |   | (in thousands, except number of securities) |
| Residential mortgage backed securities | 74 |  |   | $ | 902,004 |  |   | $ | (10,923 | ) |   | 70 |  |   | $ | 365,396 |  |   | $ | (27,583 | ) |   | 144 |  |   | $ | 1,267,400 |  |   | $ | (38,506 | ) |
| Corporate debt securities              | 20 |  |   | 189,333 |  |   | (997 | ) |   | 2 |  |   | 20,084 |  |   | (257 | ) |   | 22 |  |   | 209,417 |  |   | (1,254 | ) |
| Commercial mortgage backed securities  | 11 |  |   | 103,111 |  |   | (506 | ) |   | 2 |  |   | 136 |  |   | — |  |   | 13 |  |   | 103,247 |  |   | (506 | ) |
| Asset backed securities                | 24 |  |   | 312,094 |  |   | (2,905 | ) |   | 1 |  |   | 6,116 |  |   | (16 | ) |   | 25 |  |   | 318,210 |  |   | (2,921 | ) |
| Common stocks                          | 1 |  |   | 11 |  |   | (1 | ) |   | — |  |   | — |  |   | — |  |   | 1 |  |   | 11 |  |   | (1 | ) |
| Total                                  | 130 |  |   | $ | 1,506,553 |  |   | $ | (15,332 | ) |   | 75 |  |   | $ | 391,732 |  |   | $ | (27,856 | ) |   | 205 |  |   | $ | 1,898,285 |  |   | $ | (43,188 | ) |

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                 | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                                                 | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                                                 | (in thousands) |
| Beginning balance                                                                    | $ | 83,425 |  |   | $ | 81,008 |  |   | $ | 83,122 |  |   | $ | 79,557 |  |
| Credit losses for which an other-than-temporary impairment was previously recognized | 271 |  |   | 514 |  |   | 574 |  |   | 1,965 |  |
| Ending balance                                                                       | $ | 83,696 |  |   | $ | 81,522 |  |   | $ | 83,696 |  |   | $ | 81,522 |  |

----

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                               | NetUnrealizedInvestmentGains (Losses) |   | DeferredIncome Tax |   | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized InvestmentGains (Losses) |
|                                                               | (in thousands) |
| Balance at January 1, 2013                                         | $ | 8,426 |  |   | $ | (3,055 | ) |   | $ | 5,371 |   |   |
| Net unrealized securities losses arising during the period (1)     | (26,829 | ) |   | 9,694 |  |   | (17,135 | ) |   |
| Reclassification of losses included in net income                  | 2,089 |  |   | (731 | ) |   | 1,358 |   |   |
| Balance at June 30, 2013                                      | $ | (16,314 | ) |   | $ | 5,908 |  |   | $ | (10,406 | ) | (2)  |
|                                                               |   |   |   |   |   |   |
| Balance at January 1, 2014                                         | $ | (5,154 | ) |   | $ | 2,013 |  |   | $ | (3,141 | ) |   |
| Net unrealized securities gains arising during the period (1) | 15,705 |  |   | (5,852 | ) |   | 9,853 |   |   |
| Reclassification of gains included in net income                   | (471 | ) |   | 165 |  |   | (306 | ) |   |
| Balance at June 30, 2014                                      | $ | 10,080 |  |   | $ | (3,674 | ) |   | $ | 6,406 |   | (2)  |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                             | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                             | (in thousands) |
| Gross realized gains             | $ | 373 |  |   | $ | 157 |  |   | $ | 1,048 |  |   | $ | 278 |  |
| Gross realized losses            | — |  |   | (402 | ) |   | (3 | ) |   | (402 | ) |
| Other-than-temporary impairments | (271 | ) |   | (514 | ) |   | (574 | ) |   | (1,965 | ) |
| Total                            | $ | 102 |  |   | $ | (759 | ) |   | $ | 471 |  |   | $ | (2,089 | ) |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |
|                                   | Amortized Cost |   | Fair Value |
|                                   | (in thousands) |
| Due within one year                    | $ | 215,113 |  |   | $ | 216,739 |  |
| Due after one year through five years  | 801,585 |  |   | 809,322 |  |
| Due after five years through 10 years  | — |  |   | — |  |
| Due after 10 years                     | 213 |  |   | 256 |  |
|                                   | 1,016,911 |  |   | 1,026,317 |  |
| Residential mortgage backed securities | 2,270,962 |  |   | 2,259,029 |  |
| Commercial mortgage backed securities  | 403,774 |  |   | 409,589 |  |
| Asset backed securities                | 510,320 |  |   | 512,021 |  |
| Common stocks                          | 2,343 |  |   | 7,434 |  |
| Total                                  | $ | 4,204,310 |  |   | $ | 4,214,390 |  |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | June 30, 2014 |
|                                  | Commercial Mortgage Loans |   | Syndicated Loans |   | Total |
|                                  | (in thousands) |
| Beginning balance                     | $ | 2,341 |  |   | $ | 2,120 |  |   | $ | 4,461 |  |
| Charge-offs                           | — |  |   | (997 | ) |   | (997 | ) |
| Ending balance                        | $ | 2,341 |  |   | $ | 1,123 |  |   | $ | 3,464 |  |
| Individually evaluated for impairment | $ | — |  |   | $ | — |  |   | $ | — |  |
| Collectively evaluated for impairment | 2,341 |  |   | 1,123 |  |   | 3,464 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | June 30, 2013 |
|                                  | Commercial Mortgage Loans |   | Syndicated Loans |   | Total |
|                                  | (in thousands) |
| Beginning balance                     | $ | 2,576 |  |   | $ | 3,084 |  |   | $ | 5,660 |  |
| Charge-offs                           | — |  |   | (965 | ) |   | (965 | ) |
| Ending balance                        | $ | 2,576 |  |   | $ | 2,119 |  |   | $ | 4,695 |  |
| Individually evaluated for impairment | $ | 250 |  |   | $ | — |  |   | $ | 250 |  |
| Collectively evaluated for impairment | 2,326 |  |   | 2,119 |  |   | 4,445 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | June 30, 2014 |
|                                  | Commercial Mortgage Loans |   | Syndicated Loans |   | Total |
|                                  | (in thousands) |
| Individually evaluated for impairment | $ | 1,775 |  |   | $ | 1,874 |  |   | $ | 3,649 |  |
| Collectively evaluated for impairment | 109,981 |  |   | 12,870 |  |   | 122,851 |  |
| Total                                 | $ | 111,756 |  |   | $ | 14,744 |  |   | $ | 126,500 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | December 31, 2013 |
|                                  | Commercial Mortgage Loans |   | Syndicated Loans |   | Total |
|                                  | (in thousands) |
| Individually evaluated for impairment | $ | 1,814 |  |   | $ | 3,374 |  |   | $ | 5,188 |  |
| Collectively evaluated for impairment | 116,398 |  |   | 14,116 |  |   | 130,514 |  |
| Total                                 | $ | 118,212 |  |   | $ | 17,490 |  |   | $ | 135,702 |  |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Loans |   | Percentage |
|                            | June 30, 2014 |   | December 31, 2013 |   | June 30, 2014 |   | December 31, 2013 |
|                            | (in thousands) |   |   |   |   |
| East North Central              | $ | 3,232 |  |   | $ | 3,276 |  |   | 3 | % |   | 3 | % |
| Middle Atlantic                 | 7,742 |  |   | 8,148 |  |   | 7 |  |   | 7 |  |
| Mountain                        | 9,112 |  |   | 9,402 |  |   | 8 |  |   | 8 |  |
| New England                     | 10,272 |  |   | 10,440 |  |   | 9 |  |   | 9 |  |
| Pacific                         | 28,911 |  |   | 29,830 |  |   | 26 |  |   | 25 |  |
| South Atlantic                  | 30,407 |  |   | 34,188 |  |   | 27 |  |   | 29 |  |
| West North Central              | 13,106 |  |   | 13,576 |  |   | 12 |  |   | 11 |  |
| West South Central              | 8,974 |  |   | 9,352 |  |   | 8 |  |   | 8 |  |
|                            | 111,756 |  |   | 118,212 |  |   | 100 | % |   | 100 | % |
| Less: allowance for loan losses | 2,341 |  |   | 2,341 |  |   |   |
| Total                           | $ | 109,415 |  |   | $ | 115,871 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Loans |   | Percentage |
|                            | June 30, 2014 |   | December 31, 2013 |   | June 30, 2014 |   | December 31, 2013 |
|                            | (in thousands) |   |   |   |   |
| Apartments                      | $ | 33,423 |  |   | $ | 34,199 |  |   | 30 | % |   | 29 | % |
| Industrial                      | 19,500 |  |   | 23,069 |  |   | 17 |  |   | 20 |  |
| Office                          | 10,993 |  |   | 11,141 |  |   | 10 |  |   | 9 |  |
| Retail                          | 32,837 |  |   | 34,099 |  |   | 29 |  |   | 29 |  |
| Hotel                           | 1,329 |  |   | 1,403 |  |   | 1 |  |   | 1 |  |
| Other                           | 13,674 |  |   | 14,301 |  |   | 13 |  |   | 12 |  |
|                            | 111,756 |  |   | 118,212 |  |   | 100 | % |   | 100 | % |
| Less: allowance for loan losses | 2,341 |  |   | 2,341 |  |   |   |
| Total                           | $ | 109,415 |  |   | $ | 115,871 |  |

----

|                  |
|------------------|
|                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|             | Three Months Ended June 30, |   | Six Months Ended June 30, |
|             | 2014 |   | 2013 |   | 2014 |   | 2013 |
|             | Number of Loans |   | Recorded Investment |   | Number of Loans |   | Recorded Investment |   | Number of Loans |   | Recorded Investment |   | Number of Loans |   | Recorded Investment |
|             | (in thousands, except number of loans) |
| Syndicated loans | — |  |   | $ | — |  |   | 1 |  |   | $ | 244 |  |   | 1 |  |   | $ | 288 |  |   | 1 |  |   | $ | 244 |  |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| 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. |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | June 30, 2014 |
|                                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                                     | (in thousands) |
| Assets                                   |   |  |   |   |  |   |   |  |   |   |  |
| Cash equivalents                         | $ | — |  |   | $ | 89,498 |  |   | $ | — |  |   | $ | 89,498 |  |
| Available-for-Sale securities:           |   |  |   |   |  |   |   |  |   |   |  |
| Residential mortgage backed securities   | — |  |   | 2,055,025 |  |   | 204,004 |  |   | 2,259,029 |  |
| Corporate debt securities                | — |  |   | 836,966 |  |   | 188,929 |  |   | 1,025,895 |  |
| Commercial mortgage backed securities    | — |  |   | 409,589 |  |   | — |  |   | 409,589 |  |
| Asset backed securities                  | — |  |   | 476,123 |  |   | 35,898 |  |   | 512,021 |  |
| U.S. government and agencies obligations | 422 |  |   | — |  |   | — |  |   | 422 |  |
| Common stocks                            | 2,926 |  |   | 4,002 |  |   | 506 |  |   | 7,434 |  |
| Total Available-for-Sale securities      | 3,348 |  |   | 3,781,705 |  |   | 429,337 |  |   | 4,214,390 |  |
| Equity options, purchased                | — |  |   | 55,161 |  |   | — |  |   | 55,161 |  |
| Total assets at fair value               | $ | 3,348 |  |   | $ | 3,926,364 |  |   | $ | 429,337 |  |   | $ | 4,359,049 |  |
|                                     |   |   |   |   |   |   |   |
| Liabilities                              |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves                     | $ | — |  |   | $ | 6,443 |  |   | $ | — |  |   | $ | 6,443 |  |
| Equity options, written                  | — |  |   | 48,761 |  |   | — |  |   | 48,761 |  |
| Total liabilities at fair value          | $ | — |  |   | $ | 55,204 |  |   | $ | — |  |   | $ | 55,204 |  |

----

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | December 31, 2013 |
|                                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                                     | (in thousands) |
| Assets                                   |   |  |   |   |  |   |   |  |   |   |  |
| Cash equivalents                         | $ | — |  |   | $ | 71,598 |  |   | $ | — |  |   | $ | 71,598 |  |
| Available-for-Sale securities:           |   |  |   |   |  |   |   |  |   |   |  |
| Residential mortgage backed securities   | — |  |   | 2,079,151 |  |   | 128,906 |  |   | 2,208,057 |  |
| Corporate debt securities                | — |  |   | 821,355 |  |   | 123,032 |  |   | 944,387 |  |
| Commercial mortgage backed securities    | — |  |   | 306,838 |  |   | — |  |   | 306,838 |  |
| Asset backed securities                  | — |  |   | 481,405 |  |   | 37,152 |  |   | 518,557 |  |
| U.S. government and agencies obligations | 409 |  |   | — |  |   | — |  |   | 409 |  |
| Common stocks                            | 2,568 |  |   | 3,482 |  |   | 273 |  |   | 6,323 |  |
| Total Available-for-Sale securities      | 2,977 |  |   | 3,692,231 |  |   | 289,363 |  |   | 3,984,571 |  |
| Equity options, purchased                | — |  |   | 72,848 |  |   | — |  |   | 72,848 |  |
| Total assets at fair value               | $ | 2,977 |  |   | $ | 3,836,677 |  |   | $ | 289,363 |  |   | $ | 4,129,017 |  |
|                                     |   |   |   |   |   |   |   |
| Liabilities                              |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves                     | $ | — |  |   | $ | 7,160 |  |   | $ | — |  |   | $ | 7,160 |  |
| Equity options, written                  | — |  |   | 65,958 |  |   | — |  |   | 65,958 |  |
| Total liabilities at fair value          | $ | — |  |   | $ | 73,118 |  |   | $ | — |  |   | $ | 73,118 |  |

|                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                            | Available-for-Sale Securities |   |   |
|                                                                                                            | Residential MortgageBackedSecurities |   | CorporateDebtSecurities |   | Commercial MortgageBackedSecurities |   | AssetBackedSecurities |   | CommonStocks |   | Total |
|                                                                                                            | (in thousands) |
| Balance, April 1, 2014                                                                                     | $ | 76,273 |  |   | $ | 174,453 |  |   | $ | 20,000 |  |   | $ | 57,430 |  |   | $ | 181 |  |   | $ | 328,337 |  |
| Total gains (losses) included in:                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                      | (127 | ) | (1)  | (423 | ) | (1)  | — |  |   | 27 |  | (1)  | — |  |   | (523 | ) |
| Other comprehensive income                                                                                      | 267 |  |   | 1,047 |  |   | — |  |   | 94 |  |   | 15 |  |   | 1,423 |  |
| Purchases                                                                                                       | 136,005 |  |   | 13,852 |  |   | — |  |   | — |  |   | 127 |  |   | 149,984 |  |
| Settlements                                                                                                     | (8,414 | ) |   | — |  |   | — |  |   | (1,673 | ) |   | — |  |   | (10,087 | ) |
| Transfers into Level 3                                                                                          | — |  |   | — |  |   | — |  |   | — |  |   | 283 |  |   | 283 |  |
| Transfers out of Level 3                                                                                        | — |  |   | — |  |   | (20,000 | ) |   | (19,980 | ) |   | (100 | ) |   | (40,080 | ) |
| Balance, June 30, 2014                                                                                     | $ | 204,004 |  |   | $ | 188,929 |  |   | $ | — |  |   | $ | 35,898 |  |   | $ | 506 |  |   | $ | 429,337 |  |
| Change in unrealized gains (losses) included in net income related to Level 3 assets held at June 30, 2014 | $ | (127 | ) | (1)  | $ | (423 | ) | (1)  | $ | — |  |  | $ | 27 |  | (1)  | $ | — |  |   | $ | (523 | ) |

----

|                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                            | Available-for-Sale Securities |   |   |
|                                                                                                            | Residential MortgageBackedSecurities |   | CorporateDebtSecurities |   | Commercial MortgageBackedSecurities |   | AssetBackedSecurities |   | CommonStocks |   | Total |
|                                                                                                            | (in thousands) |
| Balance, April 1, 2013                                                                                     | $ | — |  |   | $ | 110,852 |  |   | $ | 35,922 |  |   | $ | 160,615 |  |   | $ | 247 |  |   | $ | 307,636 |  |
| Total gains (losses) included in:                                                                               |   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Net income                                                                                                      | — |  |   | (283 | ) | (1)  | (41 | ) | (1)  | 35 |  | (1)  | — |  |   | (289 | ) |
| Other comprehensive loss                                                                                        | — |  |   | (1,932 | ) |   | (80 | ) |   | (476 | ) |   | (18 | ) |   | (2,506 | ) |
| Purchases                                                                                                       | 19,400 |  |   | — |  |   | 9,970 |  |   | 32,462 |  |   | — |  |   | 61,832 |  |
| Settlements                                                                                                     | — |  |   | — |  |   | — |  |   | (1,585 | ) |   | — |  |   | (1,585 | ) |
| Transfers into Level 3                                                                                          | — |  |   | — |  |   | — |  |   | 7,872 |  |   | — |  |   | 7,872 |  |
| Transfers out of Level 3                                                                                        | — |  |   | — |  |   | — |  |   | (138,966 | ) |   | — |  |   | (138,966 | ) |
| Balance, June 30, 2013                                                                                     | $ | 19,400 |  |   | $ | 108,637 |  |   | $ | 45,771 |  |   | $ | 59,957 |  |   | $ | 229 |  |   | $ | 233,994 |  |
| Change in unrealized gains (losses) included in net income related to Level 3 assets held at June 30, 2013 | $ | — |  |   | $ | (283 | ) | (1)  | $ | (41 | ) | (1)  | $ | 35 |  | (1)  | $ | — |  |   | $ | (289 | ) |

|                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                            | Available-for-Sale Securities |   |   |
|                                                                                                            | Residential MortgageBackedSecurities |   | CorporateDebtSecurities |   | Commercial MortgageBackedSecurities |   | AssetBackedSecurities |   | CommonStocks |   | Total |
|                                                                                                            | (in thousands) |
| Balance, January 1, 2014                                                                                        | $ | 128,906 |  |   | $ | 123,032 |  |   | $ | — |  |   | $ | 37,152 |  |   | $ | 273 |  |   | $ | 289,363 |  |
| Total gains (losses) included in:                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                      | (169 | ) | (1)  | (751 | ) | (1)  | — |  |   | 42 |  | (1)  | — |  |   | (878 | ) |
| Other comprehensive income                                                                                      | 290 |  |   | 921 |  |   | — |  |   | (42 | ) |   | 22 |  |   | 1,191 |  |
| Purchases                                                                                                       | 206,773 |  |   | 65,727 |  |   | 20,000 |  |   | 21,651 |  |   | 127 |  |   | 314,278 |  |
| Settlements                                                                                                     | (10,702 | ) |   | — |  |   | — |  |   | (2,925 | ) |   | — |  |   | (13,627 | ) |
| Transfers into Level 3                                                                                          | — |  |   | — |  |   | — |  |   | — |  |   | 457 |  |   | 457 |  |
| Transfers out of Level 3                                                                                        | (121,094 | ) |   | — |  |   | (20,000 | ) |   | (19,980 | ) |   | (373 | ) |   | (161,447 | ) |
| Balance, June 30, 2014                                                                                     | $ | 204,004 |  |   | $ | 188,929 |  |   | $ | — |  |   | $ | 35,898 |  |   | $ | 506 |  |   | $ | 429,337 |  |
| Change in unrealized gains (losses) included in net income related to Level 3 assets held at June 30, 2014 | $ | (169 | ) | (1)  | $ | (751 | ) | (1)  | $ | — |  |  | $ | 42 |  | (1)  | $ | — |  |   | $ | (878 | ) |

----

|                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                            | Available-for-Sale Securities |   |   |
|                                                                                                            | Residential MortgageBackedSecurities |   | CorporateDebtSecurities |   | Commercial MortgageBackedSecurities |   | AssetBackedSecurities |   | CommonStocks |   | Total |
|                                                                                                            | (in thousands) |
| Balance, January 1, 2013                                                                                        | $ | 252,598 |  |   | $ | 110,643 |  |   | $ | 36,060 |  |   | $ | 22,223 |  |   | $ | 824 |  |   | $ | 422,348 |  |
| Total gains (losses) included in:                                                                               |   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Net income                                                                                                      | — |  |   | (565 | ) | (1)  | (89 | ) | (1)  | 65 |  | (1)  | — |  |   | (589 | ) |
| Other comprehensive loss                                                                                        | — |  |   | (1,437 | ) |   | (170 | ) |   | (190 | ) |   | (18 | ) |   | (1,815 | ) |
| Purchases                                                                                                       | 19,400 |  |   | — |  |   | 9,970 |  |   | 171,338 |  |   | — |  |   | 200,708 |  |
| Settlements                                                                                                     | — |  |   | — |  |   | — |  |   | (2,385 | ) |   | — |  |   | (2,385 | ) |
| Transfers into Level 3                                                                                          | — |  |   | — |  |   | — |  |   | 7,872 |  |   | — |  |   | 7,872 |  |
| Transfers out of Level 3                                                                                        | (252,598 | ) |   | (4 | ) |   | — |  |   | (138,966 | ) |   | (577 | ) |   | (392,145 | ) |
| Balance, June 30, 2013                                                                                     | $ | 19,400 |  |   | $ | 108,637 |  |   | $ | 45,771 |  |   | $ | 59,957 |  |   | $ | 229 |  |   | $ | 233,994 |  |
| Change in unrealized gains (losses) included in net income related to Level 3 assets held at June 30, 2013 | $ | — |  |   | $ | (565 | ) | (1)  | $ | (89 | ) | (1)  | $ | 65 |  | (1)  | $ | — |  |   | $ | (589 | ) |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |
|                                           | June 30, 2014 |
|                                           | Fair Value |   | Valuation Technique |   | Unobservable Input |   | Range (Weighted Average) |
|                                           | (in thousands) |   |   |   |   |   |   |
| Corporate debt securities (private placements) | $ | 168,610 |  |   | Discounted cash flow |   | Yield/spread to U.S. Treasuries |   | 0.8% - 1.5% (1.0%) |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |
|                                           | December 31, 2013 |
|                                           | Fair Value |   | Valuation Technique |   | Unobservable Input |   | Range (Weighted Average) |
|                                           | (in thousands) |   |   |   |   |   |   |
| Corporate debt securities (private placements) | $ | 102,187 |  |   | Discounted cash flow |   | Yield/spread to U.S. Treasuries |   | 0.9% - 1.3% (1.2%) |

----

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | June 30, 2014 |
|                      | Carrying Value |   | Fair Value |
|                      | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                      | (in thousands) |
| Financial Assets          |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Syndicated loans          | $ | 13,621 |  |   | $ | — |  |   | $ | 14,497 |  |   | $ | — |  |   | $ | 14,497 |  |
| Commercial mortgage loans | 109,415 |  |   | — |  |   | — |  |   | 112,930 |  |   | 112,930 |  |
| Certificate loans         | 1,094 |  |   | — |  |   | 1,094 |  |   | — |  |   | 1,094 |  |
| Financial Liabilities     |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves      | $ | 4,177,464 |  |   | $ | — |  |   | $ | — |  |   | $ | 4,174,561 |  |   | $ | 4,174,561 |  |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | December 31, 2013 |
|                      | Carrying Value |   | Fair Value |
|                      | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                      | (in thousands) |
| Financial Assets          |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Syndicated loans          | $ | 15,370 |  |   | $ | — |  |   | $ | 15,834 |  |   | $ | 94 |  |   | $ | 15,928 |  |
| Commercial mortgage loans | 115,871 |  |   | — |  |   | — |  |   | 118,186 |  |   | 118,186 |  |
| Certificate loans         | 1,219 |  |   | — |  |   | 1,219 |  |   | — |  |   | 1,219 |  |
| Financial Liabilities     |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves      | $ | 3,976,547 |  |   | $ | — |  |   | $ | — |  |   | $ | 3,982,012 |  |   | $ | 3,982,012 |  |

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | June 30, 2014 |
|                      | Gross Amounts of Recognized Assets |   | Gross Amounts Offset in the Consolidated Balance Sheets |   | Amounts of Assets Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   |   |
|                      |   |   |   | Financial Instruments (1) |   | Cash Collateral |   | Net Amount |
|                      | (in thousands) |
| Equity options, purchased | $ | 55,161 |  |   | $ | — |  |   | $ | 55,161 |  |   | $ | (48,761 | ) |   | $ | (3,300 | ) |   | $ | 3,100 |  |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | December 31, 2013 |
|                      | Gross Amounts of Recognized Assets |   | Gross Amounts Offset in the Consolidated Balance Sheets |   | Amounts of Assets Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   |   |
|                      |   |   |   | Financial Instruments (1) |   | Cash Collateral |   | Net Amount |
|                      | (in thousands) |
| Equity options, purchased | $ | 72,848 |  |   | $ | — |  |   | $ | 72,848 |  |   | $ | (65,958 | ) |   | $ | (1,700 | ) |   | $ | 5,190 |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | June 30, 2014 |
|                    | Gross Amounts of Recognized Liabilities |   | Gross Amounts Offset in the Consolidated Balance Sheets |   | Amounts of Liabilities Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   |   |
|                    |   |   |   | Financial Instruments (1) |   | Cash Collateral |   | Net Amount |
|                    | (in thousands) |
| Equity options, written | $ | 48,761 |  |   | $ | — |  |   | $ | 48,761 |  |   | $ | (48,761 | ) |   | $ | — |  |   | $ | — |  |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | December 31, 2013 |
|                    | Gross Amounts of Recognized Liabilities |   | Gross Amounts Offset in the Consolidated Balance Sheets |   | Amounts of Liabilities Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   |   |
|                    |   |   |   | Financial Instruments (1) |   | Cash Collateral |   | Net Amount |
|                    | (in thousands) |
| Equity options, written | $ | 65,958 |  |   | $ | — |  |   | $ | 65,958 |  |   | $ | (65,958 | ) |   | $ | — |  |   | $ | — |  |

----

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Derivatives not designated as hedging instruments |   | Balance Sheet Location |   | Asset |   | Balance Sheet Location |   | Liability |
|                                                                  |   | June 30, 2014 |   | December 31, 2013 |   |   | June 30, 2014 |   | December 31, 2013 |
| (in thousands)                                                   |
| Equity                                                                |   |   |   |   |   |   |   |   |
| Stock market certificates                                             |   | Equity options, purchased |   | $ | 55,161 |  |   | $ | 72,848 |  |   | Equity options, written |   | $ | 48,761 |  |   | $ | 65,958 |  |
| Stock market certificates embedded derivatives                        |   | N/A |   | — |  |   | — |  |   | Certificate reserves |   | 6,443 |  |   | 7,160 |  |
| Total                                                                 |   |   |   | $ | 55,161 |  |   | $ | 72,848 |  |   |   |   | $ | 55,204 |  |   | $ | 73,118 |  |
| N/A Not applicable.                                                   |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |
| Derivatives not designated as hedging instruments |   | Location of Gain (Loss) on Derivatives Recognized in Income |   | Amount of Gain (Loss) on Derivatives Recognized in Income |
|                                                                  |   | Three Months Ended June 30, |
|                                                                  |   | 2014 |   | 2013 |
|                                                                  |   |   |   | (in thousands) |
| Equity                                                                |   |   |   |   |  |   |   |  |
| Stock market certificates                                             |   | Net provision for certificate reserves |   | $ | 1,084 |  |   | $ | 597 |  |
| Stock market certificates embedded derivatives                        |   | Net provision for certificate reserves |   | (950 | ) |   | (367 | ) |
| Total                                                                 |   |   |   | $ | 134 |  |   | $ | 230 |  |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |
| Derivatives not designated as hedging instruments |   | Location of Gain (Loss) on Derivatives Recognized in Income |   | Amount of Gain (Loss) on Derivatives Recognized in Income |
|                                                                  |   | Six Months Ended June 30, |
|                                                                  |   | 2014 |   | 2013 |
|                                                                  |   |   |   | (in thousands) |
| Equity                                                                |   |   |   |   |  |   |   |  |
| Stock market certificates                                             |   | Net provision for certificate reserves |   | $ | 1,668 |  |   | $ | 3,898 |  |
| Stock market certificates embedded derivatives                        |   | Net provision for certificate reserves |   | (1,558 | ) |   | (3,554 | ) |
| Total                                                                 |   |   |   | $ | 110 |  |   | $ | 344 |  |

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AOCI Reclassification                                     |   | Location of (Gain) Loss Recognized in Income |   | Three Months Ended June 30, |   | Six Months Ended June 30, |
|                                                           |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                           |   |   |   | (in thousands) |
| Unrealized net losses (gains) on Available-for-Sale securities |   | Net investment income |   | $ | (102 | ) |   | $ | 759 |  |   | $ | (471 | ) |   | $ | 2,089 |  |
| Tax expense (benefit)                                          |   | Income tax provision |   | 36 |  |   | (265 | ) |   | 165 |  |   | (731 | ) |
| Net of tax                                                     |   |   |   | $ | (66 | ) |   | $ | 494 |  |   | $ | (306 | ) |   | $ | 1,358 |  |

----

----

----

----

----

|        |
|--------|
|        |  |  |  |
|   |   | AMERIPRISE CERTIFICATE COMPANY |   |
|   |   | (Registrant) |   |
|   |   |   |   |
| Date:  | August 4, 2014 | /s/ Abu M. Arif |   |
|   |   | Abu M. Arif |   |
|   |   | Chief Executive Officer |   |
|   |   |   |   |
|   |   |   |   |
| Date:  | August 4, 2014 | /s/ Ross P. Palacios |   |
|   |   | Ross P. Palacios |   |
|   |   | Chief Financial Officer |   |

----

----

|      |                                                                                                                                                                                                                                                                                        |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3(a) | Amended and Restated Certificate of Incorporation of American Express Certificate Company, dated August 1, 2005, filed electronically on or about March 10, 2006 as Exhibit 3(a) to Registrant’s Form 10-K is incorporated by reference. |

|      |                                                                                                                                                                                                         |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3(b) | By-Laws of Ameriprise Certificate Company, filed electronically on or about November 5, 2010 as Exhibit 3(b) to Registrant’s Form 10-Q, are incorporated herein by reference. |

|       |                                                                                                                                               |
|-------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1* | Certification of Abu M. Arif pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. |

|       |                                                                                                                                                    |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.2* | Certification of Ross P. Palacios pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. |

|       |                                                                                                                                                                                    |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 32.1* | Certification of Abu M. Arif and Ross P. Palacios pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |