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

|   |                                                                                              |
|---|----------------------------------------------------------------------------------------------|
| x | 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) |

|                                                                                                                                                                                                                                                                                                                                                                                                            |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                            |  |  |
| Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. |
| Large Accelerated Filer o                                                                                                                                                                                                                                                                                                                                                                             | Smaller reporting company o |
| Non-Accelerated Filer x                                                                                                                                                                                                                                                                                                                                                                               | Emerging growth company o |
| Accelerated Filer o                                                                                                                                                                                                                                                                                                                                                                                   |   |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.             o                                                                                                                                   |

|                                         |
|-----------------------------------------|
|                                         |  |  |
| Class                                   |   | Outstanding at August 6, 2018 |
| Common Shares (par value $10 per share) | 150,000 shares |

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

----

|                                                                                                                            |
|----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                            |  |  |  |  |
| Part I.  Financial Information                                                                                        |
| Item 1. Financial Statements (Unaudited)                                                                                   |   |
| Consolidated Statements of Operations — Three months and six months ended June 30, 2018 and 2017           | 3 |
| Consolidated Statements of Comprehensive Income — Three months and six months ended June 30, 2018 and 2017 | 4 |
| Consolidated Balance Sheets — June 30, 2018 and December 31, 2017                                          | 5 |
| Consolidated Statements of Shareholder's Equity — Six months ended June 30, 2018 and 2017                  | 6 |
| Consolidated Statements of Cash Flows — Six months ended June 30, 2018 and 2017                            | 7 |
| Notes to Consolidated Financial Statements                                                                                 | 8 |
| 1.  Basis of Presentation                                                                                                  | 8 |
| 2.  Recent Accounting Pronouncements                                                                                       | 8 |
| 3.  Investments                                                                                                            | 9 |
| 4.  Commercial Mortgage, Syndicated and Certificate Loans                                                                  | 13 |
| 5.  Fair Values of Assets and Liabilities                                                                                  | 14 |
| 6.  Offsetting Assets and Liabilities                                                                                      | 19 |
| 7.  Derivatives and Hedging Activities                                                                                     | 20 |
| 8.  Contingencies                                                                                                          | 21 |
| 9.  Shareholder’s Equity                                                                                             | 22 |
| 10.  Income Taxes                                                                                                          | 22 |
| Item 2.  Management’s Narrative Analysis                                                                   | 23 |
| Item 4.  Controls and Procedures                                                                                 | 24 |
|                                                                                                                       |   |
| Part II.  Other Information                                                                                 | 25 |
| Item 1.  Legal Proceedings                                                                                       | 25 |
| Item 1A.  Risk Factors                                                                                           | 25 |
| Item 6.  Exhibits                                                                                                | 25 |
| Signatures                                                                                                                 | 26 |

----

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                | Three Months EndedJune 30, |   | Six Months EndedJune 30, |
| 2018                                                                                |   | 2017 | 2018 |   | 2017 |
| (in thousands)                                                                      |
| Investment income                                                                   | $ | 42,744 |  |  | $ | 35,100 |  |  | $ | 83,381 |  |  | $ | 68,124 |  |
| Investment expenses                                                                 | 10,454 |  |   | 9,251 |  |   | 20,345 |  |   | 18,424 |  |
| Net investment income before provision for certificate reserves and income taxes    | 32,290 |  |   | 25,849 |  |   | 63,036 |  |   | 49,700 |  |
| Net provision for certificate reserves                                              | 18,393 |  |   | 10,542 |  |   | 33,355 |  |   | 20,702 |  |
| Net investment income before income taxes                                           | 13,897 |  |  | 15,307 |  |  | 29,681 |  |  | 28,998 |  |
| Income tax expense                                                                  | 3,729 |  |   | 5,503 |  |   | 7,562 |  |   | 10,746 |  |
| Net investment income, after-tax                                                    | 10,168 |  |   | 9,804 |  |   | 22,119 |  |   | 18,252 |  |
|                                                                                |   |   |   |   |   |   |   |
| Net realized gain (loss) on investments before income taxes                         | (221 | ) |  | 7,192 |  |  | 600 |  |  | 8,897 |  |
| Income tax expense (benefit)                                                        | (46 | ) |   | 2,517 |  |   | 126 |  |   | 3,114 |  |
| Net realized gain (loss) on investments, after-tax                                  | (175 | ) |   | 4,675 |  |   | 474 |  |   | 5,783 |  |
| Net income                                                                          | $ | 9,993 |  |  | $ | 14,479 |  |  | $ | 22,593 |  |  | $ | 24,035 |  |
|                                                                                |   |   |   |   |   |   |   |
| Supplemental Disclosures:                                                           |   |   |   |   |   |   |   |
| Total other-than-temporary impairment losses on securities                          | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Portion of loss recognized in other comprehensive income (loss) (before taxes) | — |  |   | — |  |   | — |  |   | (193 | ) |
| Net impairment losses recognized in net realized gain (loss) on investments    | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | (193 | ) |
|  See Notes to Consolidated Financial Statements.                               |

----

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                     | Three Months EndedJune 30, |   | Six Months EndedJune 30, |
| 2018                                                                     |   | 2017 | 2018 |   | 2017 |
| (in thousands)                                                           |
| Net income                                                               | $ | 9,993 |  |   | $ | 14,479 |  |   | $ | 22,593 |  |   | $ | 24,035 |  |
| Other comprehensive income (loss), net of tax:                           |   |   |   |   |   |   |   |
| Net unrealized gains (losses) on securities:                             |   |   |   |   |   |   |   |
| Net unrealized securities gains (losses) arising during the period  | (2,727 | ) |   | 10,567 |  |   | (23,411 | ) |   | 15,523 |  |
| Reclassification of net securities (gains) losses included in net income | 233 |  |   | (4,673 | ) |   | (304 | ) |   | (5,779 | ) |
| Total other comprehensive income (loss), net of tax                      | (2,494 | ) |  | 5,894 |  |  | (23,715 | ) |  | 9,744 |  |
| Total comprehensive income (loss)                                        | $ | 7,499 |  |  | $ | 20,373 |  |  | $ | (1,122 | ) |  | $ | 33,779 |  |
| See Notes to Consolidated Financial Statements.                          |

----

|                                                                     |
|---------------------------------------------------------------------|
|                                                                     |  |  |  |  |  |  |  |
|                                                                | June 30, 2018 |   | December 31, 2017 |
| (in thousands, except share data)                                   |
| Assets                                                              |   |   |   |
| Qualified Assets                                                    |   |   |   |
| Cash and cash equivalents                                           | $ | 390,978 |  |   | $ | 68,471 |  |
| Investments in unaffiliated issuers                                 | 6,963,983 |  |   | 6,755,381 |  |
| Receivables                                                         | 26,995 |  |   | 29,037 |  |
| Derivative assets                                                   | 37,463 |  |   | 54,346 |  |
| Total qualified assets                                              | 7,419,419 |  |   | 6,907,235 |  |
| Deferred taxes, net                                                 | 1,883 |  |   | 736 |  |
| Taxes receivable from parent                                        | 862 |  |   | 3,874 |  |
| Total assets                                                        | $ | 7,422,164 |  |  | $ | 6,911,845 |  |
|                                                                |   |   |   |
| Liabilities and Shareholder's Equity                                |   |   |   |
| Liabilities                                                         |   |   |   |
| Certificate reserves                                                | $ | 6,918,535 |  |   | $ | 6,400,324 |  |
| Taxes payable to parent                                             | 4,684 |  |   | 5,402 |  |
| Derivative liabilities                                              | 29,747 |  |   | 46,756 |  |
| Payable for investment securities purchased                         | 68,024 |  |   | 56,778 |  |
| Due to related party and other liabilities                          | 39,960 |  |   | 43,249 |  |
| Total liabilities                                                   | 7,060,950 |  |  | 6,552,509 |  |
|                                                                |   |   |   |
| Shareholder's Equity                                                |   |   |   |
| Common shares ($10 par value, 150,000 shares authorized and issued) | 1,500 |  |   | 1,500 |  |
| Additional paid-in capital                                          | 255,517 |  |   | 252,517 |  |
| Total retained earnings                                             | 133,537 |  |   | 110,946 |  |
| Accumulated other comprehensive income (loss), net of tax           | (29,340 | ) |   | (5,627 | ) |
| Total shareholder's equity                                          | 361,214 |  |  | 359,336 |  |
| Total liabilities and shareholder's equity                          | $ | 7,422,164 |  |   | $ | 6,911,845 |  |
| See Notes to Consolidated Financial Statements.                     |   |   |   |

----

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                               | Number of Outstanding Shares | Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Total |
| Appropriated for Pre-Declared Additional Credits and Interest |   | Appropriated for Additional Interest on Advance Payments |   | Unappropriated |
| (in thousands, except share data)                                  |
| Balance at January 1, 2017                                         | 150,000 |  |   | $ | 1,500 |  |   | $ | 247,517 |  |   | $ | — |  |   | $ | 15 |  |   | $ | 81,925 |  |   | $ | (5,165 | ) |   | $ | 325,792 |  |
| Comprehensive income (loss):                                       |   |   |   |   |   |   |   |   |
| Net income                                                         | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 24,035 |  |   | — |  |   | 24,035 |  |
| Other comprehensive income (loss), net of tax                      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 9,744 |  |   | 9,744 |  |
| Total comprehensive income (loss)                                  | 33,779 |  |
| Receipt of capital from parent                                     | — |  |   | — |  |   | 5,000 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 5,000 |  |
| Balance at June 30, 2017                                 | 150,000 |  |   | $ | 1,500 |  |   | $ | 252,517 |  |   | $ | — |  |   | $ | 15 |  |   | $ | 105,960 |  |   | $ | 4,579 |  |   | $ | 364,571 |  |
|                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2018                                         | 150,000 |  |   | $ | 1,500 |  |   | $ | 252,517 |  |   | $ | 23 |  |   | $ | 15 |  |   | $ | 110,908 |  |   | $ | (5,627 | ) |   | $ | 359,336 |  |
| Cumulative effect of change in accounting policies                 | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (2 | ) |   | 2 |  |   | — |  |
| Comprehensive income (loss):                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                         | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 22,593 |  |   | — |  |   | 22,593 |  |
| Other comprehensive income (loss), net of tax                      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (23,715 | ) |   | (23,715 | ) |
| Total comprehensive income (loss)                                  | (1,122 | ) |
| Transfer to appropriated from unappropriated                       | — |  |   | — |  |   | — |  |   | 628 |  |   | — |  |   | (628 | ) |   | — |  |   | — |  |
| Receipt of capital from parent                                     | — |  |   | — |  |   | 3,000 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 3,000 |  |
| Balance at June 30, 2018                                 | 150,000 |  |   | $ | 1,500 |  |   | $ | 255,517 |  |   | $ | 651 |  |   | $ | 15 |  |   | $ | 132,871 |  |   | $ | (29,340 | ) |   | $ | 361,214 |  |
| See Notes to Consolidated Financial Statements.                    |

----

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |
|                                                                                        | Six Months Ended June 30, |
| 2018                                                                                        |   | 2017 |
| (in thousands)                                                                              |
| Cash Flows from Operating Activities                                                        |   |   |   |
| Net income                                                                                  | $ | 22,593 |  |   | $ | 24,035 |  |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |   |   |   |
| Amortization of premiums, accretion of discounts, net                                       | (2,107 | ) |   | 11,218 |  |
| Deferred income tax expense (benefit)                                                       | 19 |  |   | (18 | ) |
| Net realized (gain) loss on Available-for-Sale securities                                   | (385 | ) |   | (9,084 | ) |
| Other net realized (gain) loss                                                              | (215 | ) |   | (6 | ) |
| Other-than-temporary impairments and provision for loan loss                                | — |  |   | 193 |  |
| Changes in operating assets and liabilities:                                                |   |   |   |
| Dividends and interest receivable                                                           | 1,567 |  |   | (402 | ) |
| Certificate reserves, net                                                                   | 926 |  |   | 453 |  |
| Deferred taxes, net                                                                         | 6,305 |  |   | (5,246 | ) |
| Taxes payable to/receivable from parent, net                                                | 2,294 |  |   | 8,102 |  |
| Derivatives, net of collateral                                                              | (276 | ) |   | (131 | ) |
| Other liabilities                                                                           | (3,486 | ) |   | 341 |  |
| Other receivables                                                                           | (280 | ) |   | 47 |  |
| Other, net                                                                                  | 407 |  |   | 187 |  |
| Net cash provided by (used in) operating activities                                         | 27,362 |  |   | 29,689 |  |
|                                                                                        |   |   |   |
| Cash Flows from Investing Activities                                                        |   |   |   |
| Available-for-Sale securities:                                                              |   |   |   |
| Sales                                                                                       | 360,976 |  |   | 85,393 |  |
| Maturities, redemptions and calls                                                           | 1,505,512 |  |   | 1,047,434 |  |
| Purchases                                                                                   | (2,077,918 | ) |   | (1,387,964 | ) |
| Syndicated loans, commercial mortgage loans and real estate owned:                          |   |   |   |
| Sales, maturities and repayments                                                            | 32,472 |  |   | 23,316 |  |
| Purchases and fundings                                                                      | (46,383 | ) |   | (37,534 | ) |
| Equity securities:                                                                          |   |   |   |
| Sales                                                                                       | 35 |  |   | — |  |
| Certificate loans, net                                                                      | 166 |  |   | 63 |  |
| Net cash provided by (used in) investing activities                                         | (225,140 | ) |   | (269,292 | ) |
|                                                                                        |   |   |   |
| Cash Flows from Financing Activities                                                        |   |   |   |
| Payments from certificate holders and other additions                                       | 2,898,676 |  |   | 2,507,375 |  |
| Certificate maturities and cash surrenders                                                  | (2,381,391 | ) |   | (2,210,677 | ) |
| Capital contribution from parent                                                            | 3,000 |  |   | 5,000 |  |
| Net cash provided by (used in) financing activities                                         | 520,285 |  |   | 301,698 |  |
|                                                                                        |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                        | 322,507 |  |   | 62,095 |  |
| Cash and cash equivalents at beginning of period                                            | 68,471 |  |   | 134,189 |  |
| Cash and cash equivalents at end of period                                                  | $ | 390,978 |  |   | $ | 196,284 |  |
|                                                                                        |   |   |   |
| Supplemental disclosures including non-cash transactions:                                   |   |   |   |
| Cash paid (received) for income taxes                                                       | $ | 8,027 |  |   | $ | 5,377 |  |
| Cash paid for interest                                                                      | 33,422 |  |   | 22,726 |  |
| See Notes to Consolidated Financial Statements.                                             |

----

----

|                                                                                                                                                                       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                       |  |  |  |  |  |  |  |
|                                                                                                                                                                  | June 30, 2018 |   | December 31, 2017 |
| (in thousands)                                                                                                                                                        |
| Available-for-Sale securities:                                                                                                                                        |   |
| Fixed maturities, at fair value (amortized cost: 2018, $6,762,364; 2017, $6,556,338)                                                                                  | $ | 6,721,601 |  |   | $ | 6,546,761 |  |
| Common stocks, at fair value(1) (cost: 2017, $1,002)                                                                                                             | — |  |   | 1,000 |  |
| Commercial mortgage loans and syndicated loans, at cost (less allowance for loan losses: 2018, $3,120; 2017, $3,283; fair value: 2018, $239,689; 2017, $207,681) | 241,144 |  |   | 207,187 |  |
| Equity securities, at fair value(1) (cost: 2018, $875)                                                                                                           | 971 |  |   | — |  |
| Certificate loans — secured by certificate reserves, at cost, which approximates fair value                                                                     | 267 |  |   | 433 |  |
| Total                                                                                                                                                                 | $ | 6,963,983 |  |   | $ | 6,755,381 |  |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities    | June 30, 2018 |
| Amortized Cost                    | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Noncredit OTTI (1) |
|                                   | (in thousands) |
| Residential mortgage backed securities | $ | 2,692,189 |  |   | $ | 7,602 |  |   | $ | (27,872 | ) |   | $ | 2,671,919 |  |   | $ | — |  |
| Corporate debt securities              | 927,424 |  |   | 250 |  |   | (10,420 | ) |   | 917,254 |  |   | 3 |  |
| Commercial mortgage backed securities  | 936,583 |  |   | 649 |  |   | (7,679 | ) |   | 929,553 |  |   | — |  |
| Asset backed securities                | 732,366 |  |   | 3,344 |  |   | (6,123 | ) |   | 729,587 |  |   | — |  |
| State and municipal obligations        | 55,122 |  |   | 48 |  |   | (694 | ) |   | 54,476 |  |   | — |  |
| U.S. government and agency obligations | 1,418,680 |  |   | 158 |  |   | (26 | ) |   | 1,418,812 |  |   | — |  |
| Total                                  | $ | 6,762,364 |  |   | $ | 12,051 |  |   | $ | (52,814 | ) |   | $ | 6,721,601 |  |   | $ | 3 |  |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities    | December 31, 2017 |
| Amortized Cost                    | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Noncredit OTTI (1) |
|                                   | (in thousands) |
| Residential mortgage backed securities | $ | 3,259,976 |  |   | $ | 9,020 |  |   | $ | (12,669 | ) |   | $ | 3,256,327 |  |   | $ | — |  |
| Corporate debt securities              | 1,184,360 |  |   | 763 |  |   | (4,833 | ) |   | 1,180,290 |  |   | 3 |  |
| Commercial mortgage backed securities  | 798,047 |  |   | 1,292 |  |   | (3,876 | ) |   | 795,463 |  |   | — |  |
| Asset backed securities                | 758,477 |  |   | 3,452 |  |   | (2,426 | ) |   | 759,503 |  |   | — |  |
| State and municipal obligations        | 58,380 |  |   | 166 |  |   | (489 | ) |   | 58,057 |  |   | — |  |
| U.S. government and agency obligations | 497,098 |  |   | 43 |  |   | (20 | ) |   | 497,121 |  |   | — |  |
| Common stocks                          | 1,002 |  |   | 168 |  |   | (170 | ) |   | 1,000 |  |   | — |  |
| Total                                  | $ | 6,557,340 |  |   | $ | 14,904 |  |   | $ | (24,483 | ) |   | $ | 6,547,761 |  |   | $ | 3 |  |

----

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Ratings                | June 30, 2018 |   | December 31, 2017 |
| Amortized Cost         | Fair Value | Percent of Total Fair Value | Amortized Cost | Fair Value | Percent of Total Fair Value |
|                   | (in thousands, except percentages) |
| AAA                    | $ | 5,199,283 |  |   | $ | 5,168,628 |  |   | 77 | % |   | $ | 4,526,696 |  |   | $ | 4,519,506 |  |   | 69 | % |
| AA                     | 328,086 |  |   | 328,689 |  |   | 5 |  |   | 367,747 |  |   | 368,377 |  |   | 5 |  |
| A                      | 482,169 |  |   | 477,051 |  |   | 7 |  |   | 595,445 |  |   | 593,421 |  |   | 9 |  |
| BBB                    | 705,096 |  |   | 700,050 |  |   | 10 |  |   | 1,029,953 |  |   | 1,029,082 |  |   | 16 |  |
| Below investment grade | 47,730 |  |   | 47,183 |  |   | 1 |  |   | 36,497 |  |   | 36,375 |  |   | 1 |  |
| Total fixed maturities | $ | 6,762,364 |  |   | $ | 6,721,601 |  |   | 100 | % |   | $ | 6,556,338 |  |   | $ | 6,546,761 |  |   | 100 | % |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities         | June 30, 2018 |
| 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 | 112 |  |   | $ | 1,319,655 |  |   | $ | (19,454 | ) |   | 80 |  |   | $ | 546,663 |  |   | $ | (8,418 | ) |   | 192 |  |   | $ | 1,866,318 |  |   | $ | (27,872 | ) |
| Corporate debt securities              | 57 |  |   | 662,398 |  |   | (7,261 | ) |   | 14 |  |   | 168,424 |  |   | (3,159 | ) |   | 71 |  |   | 830,822 |  |   | (10,420 | ) |
| Commercial mortgage backed securities  | 22 |  |   | 400,001 |  |   | (4,536 | ) |   | 18 |  |   | 112,654 |  |   | (3,143 | ) |   | 40 |  |   | 512,655 |  |   | (7,679 | ) |
| Asset backed securities                | 33 |  |   | 442,863 |  |   | (4,949 | ) |   | 13 |  |   | 73,851 |  |   | (1,174 | ) |   | 46 |  |   | 516,714 |  |   | (6,123 | ) |
| State and municipal obligations        | 11 |  |   | 34,547 |  |   | (519 | ) |   | 3 |  |   | 4,520 |  |   | (175 | ) |   | 14 |  |   | 39,067 |  |   | (694 | ) |
| U.S. government and agency obligations | 7 |  |   | 499,026 |  |   | (26 | ) |   | — |  |   | — |  |   | — |  |   | 7 |  |   | 499,026 |  |   | (26 | ) |
| Total                                  | 242 |  |   | $ | 3,358,490 |  |   | $ | (36,745 | ) |   | 128 |  |   | $ | 906,112 |  |   | $ | (16,069 | ) |   | 370 |  |   | $ | 4,264,602 |  |   | $ | (52,814 | ) |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities         | December 31, 2017 |
| 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 | 67 |  |   | $ | 1,078,412 |  |   | $ | (5,833 | ) |   | 89 |  |   | $ | 664,954 |  |   | $ | (6,836 | ) |   | 156 |  |   | $ | 1,743,366 |  |   | $ | (12,669 | ) |
| Corporate debt securities              | 55 |  |   | 715,852 |  |   | (2,161 | ) |   | 23 |  |   | 257,891 |  |   | (2,672 | ) |   | 78 |  |   | 973,743 |  |   | (4,833 | ) |
| Commercial mortgage backed securities  | 12 |  |   | 183,428 |  |   | (1,721 | ) |   | 18 |  |   | 119,790 |  |   | (2,155 | ) |   | 30 |  |   | 303,218 |  |   | (3,876 | ) |
| Asset backed securities                | 23 |  |   | 297,823 |  |   | (1,466 | ) |   | 18 |  |   | 110,842 |  |   | (960 | ) |   | 41 |  |   | 408,665 |  |   | (2,426 | ) |
| State and municipal obligations        | 8 |  |   | 17,906 |  |   | (430 | ) |   | 4 |  |   | 5,891 |  |   | (59 | ) |   | 12 |  |   | 23,797 |  |   | (489 | ) |
| U.S. government and agency obligations | 1 |  |   | 49,900 |  |   | (20 | ) |   | — |  |   | — |  |   | — |  |   | 1 |  |   | 49,900 |  |   | (20 | ) |
| Common stocks                          | 1 |  |   | 56 |  |   | (4 | ) |   | 3 |  |   | 661 |  |   | (166 | ) |   | 4 |  |   | 717 |  |   | (170 | ) |
| Total                                  | 167 |  |   | $ | 2,343,377 |  |   | $ | (11,635 | ) |   | 155 |  |   | $ | 1,160,029 |  |   | $ | (12,848 | ) |   | 322 |  |   | $ | 3,503,406 |  |   | $ | (24,483 | ) |

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                 | Three Months EndedJune 30, |   | Six Months EndedJune 30, |
| 2018                                                                                 |   | 2017 |   | 2018 |   | 2017 |
| (in thousands)                                                                  |
| Beginning balance                                                                    | $ | — |  |   | $ | 46,715 |  |   | $ | — |  |   | $ | 46,522 |  |
| Reductions for securities sold during the period (realized)                          | — |  |   | (46,715 | ) |   | — |  |   | (46,715 | ) |
| Credit losses for which an other-than-temporary impairment was previously recognized | — |  |   | — |  |   | — |  |   | 193 |  |
| Ending balance                                                                       | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |

----

|                                                                        |
|------------------------------------------------------------------------|
|                                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                   | Net Unrealized Investment Gains (Losses) |   | Deferred Income Tax |   | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) |
| (in thousands)                                                    |
| Balance at January 1, 2017                                             | $ | (8,195 | ) |   | $ | 3,030 |  |   | $ | (5,165 | ) |   |
| Net unrealized securities gains (losses) arising during the period (1) | 24,349 |  |   | (8,826 | ) |   | 15,523 |  |   |
| Reclassification of (gains) losses included in net income              | (8,891 | ) |   | 3,112 |  |   | (5,779 | ) |   |
| Balance at June 30, 2017                                     | $ | 7,263 |  |   | $ | (2,684 | ) |   | $ | 4,579 |  | (2)  |
|                                                                   |   |   |   |   |   |   |
| Balance at January 1, 2018                                             | $ | (9,579 | ) |   | $ | 3,952 |  |   | $ | (5,627 | ) |   |
| Cumulative effect of change in accounting policies                     | 3 |  |   | (1 | ) |   | 2 |  |   |
| Net unrealized securities gains (losses) arising during the period (1) | (30,802 | ) |   | 7,391 |  |   | (23,411 | ) |   |
| Reclassification of (gains) losses included in net income              | (385 | ) |   | 81 |  |   | (304 | ) |   |
| Balance at June 30, 2018                                     | $ | (40,763 | ) |   | $ | 11,423 |  |   | $ | (29,340 | ) | (2)  |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             | Three Months EndedJune 30, |   | Six Months EndedJune 30, |
| 2018                             |   | 2017 |   | 2018 |   | 2017 |
| (in thousands)                   |
| Gross realized gains             | $ | 10 |  |   | $ | 9,212 |  |   | $ | 910 |  |   | $ | 11,107 |  |
| Gross realized losses            | (305 | ) |   | (2,023 | ) |   | (525 | ) |   | (2,023 | ) |
| Other-than-temporary impairments | — |  |   | — |  |   | — |  |   | (193 | ) |
| Total                            | $ | (295 | ) |   | $ | 7,189 |  |   | $ | 385 |  |   | $ | 8,891 |  |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |
|                                   | Amortized Cost |   | Fair Value |
| (in thousands)                    |
| Due within one year                    | $ | 1,612,875 |  |   | $ | 1,611,758 |  |
| Due after one year through five years  | 788,141 |  |   | 778,541 |  |
| Due after five years through 10 years  | — |  |   | — |  |
| Due after 10 years                     | 210 |  |   | 243 |  |
|                                   | 2,401,226 |  |   | 2,390,542 |  |
| Residential mortgage backed securities | 2,692,189 |  |   | 2,671,919 |  |
| Commercial mortgage backed securities  | 936,583 |  |   | 929,553 |  |
| Asset backed securities                | 732,366 |  |   | 729,587 |  |
| Total                                  | $ | 6,762,364 |  |   | $ | 6,721,601 |  |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
|                                  | June 30, |
| 2018                                  |   | 2017 |
| (in thousands)                   |
| Beginning balance                     | $ | 3,283 |  |   | $ | 3,283 |  |
| Charge-offs                           | (163 | ) |   | — |  |
| Provisions                            | — |  |   | — |  |
| Ending balance                        | $ | 3,120 |  |   | $ | 3,283 |  |
|                                  |   |   |   |
| Individually evaluated for impairment | $ | — |  |   | $ | — |  |
| Collectively evaluated for impairment | 3,120 |  |   | 3,283 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
|                                  | June 30, 2018 |   | December 31, 2017 |
| (in thousands)                   |
| Individually evaluated for impairment | $ | — |  |   | $ | — |  |
| Collectively evaluated for impairment | 244,264 |  |   | 210,470 |  |
| Total                                 | $ | 244,264 |  |   | $ | 210,470 |  |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Loans |   | Percentage |
| June 30, 2018              |   | December 31, 2017 |   | June 30, 2018 |   | December 31, 2017 |
| (in thousands)             |   |   |   |   |
| East North Central              | $ | 5,837 |  |   | $ | 6,029 |  |   | 5 | % |   | 5 | % |
| East South Central              | 4,575 |  |   | 4,891 |  |   | 4 |  |   | 4 |  |
| Middle Atlantic                 | 14,747 |  |   | 11,887 |  |   | 14 |  |   | 11 |  |
| Mountain                        | 10,138 |  |   | 10,452 |  |   | 9 |  |   | 10 |  |
| New England                     | 7,490 |  |   | 7,586 |  |   | 7 |  |   | 7 |  |
| Pacific                         | 30,996 |  |   | 32,386 |  |   | 29 |  |   | 29 |  |
| South Atlantic                  | 22,196 |  |   | 23,694 |  |   | 20 |  |   | 22 |  |
| West North Central              | 6,423 |  |   | 6,706 |  |   | 6 |  |   | 6 |  |
| West South Central              | 6,779 |  |   | 6,354 |  |   | 6 |  |   | 6 |  |
|                            | 109,181 |  |   | 109,985 |  |   | 100 | % |   | 100 | % |
| Less: allowance for loan losses | 2,341 |  |   | 2,341 |  |   |   |
| Total                           | $ | 106,840 |  |   | $ | 107,644 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Loans |   | Percentage |
| June 30, 2018              |   | December 31, 2017 |   | June 30, 2018 |   | December 31, 2017 |
| (in thousands)             |   |   |   |   |
| Apartments                      | $ | 27,572 |  |   | $ | 23,840 |  |   | 25 | % |   | 21 | % |
| Industrial                      | 26,167 |  |   | 25,025 |  |   | 24 |  |   | 23 |  |
| Mixed use                       | 7,877 |  |   | 4,580 |  |   | 7 |  |   | 4 |  |
| Office                          | 11,660 |  |   | 11,872 |  |   | 11 |  |   | 11 |  |
| Retail                          | 33,245 |  |   | 34,934 |  |   | 30 |  |   | 32 |  |
| Hotel                           | 693 |  |   | 777 |  |   | 1 |  |   | 1 |  |
| Other                           | 1,967 |  |   | 8,957 |  |   | 2 |  |   | 8 |  |
|                            | 109,181 |  |   | 109,985 |  |   | 100 | % |   | 100 | % |
| Less: allowance for loan losses | 2,341 |  |   | 2,341 |  |   |   |
| Total                           | $ | 106,840 |  |   | $ | 107,644 |  |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| 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, 2018 |
| Level 1                                  |   | Level 2 |   | Level 3 |   | Total |
| (in thousands)                           |
| Assets                                        |   |  |   |   |   |   |   |   |
| Cash equivalents                              | $ | — |  |   | $ | 367,299 |  |   | $ | — |  |   | $ | 367,299 |  |
| Available-for-Sale securities:                |   |  |   |   |  |   |   |  |   |   |  |
| Residential mortgage backed securities        | — |  |   | 2,620,854 |  |   | 51,065 |  |   | 2,671,919 |  |
| Corporate debt securities                     | — |  |   | 875,494 |  |   | 41,760 |  |   | 917,254 |  |
| Commercial mortgage backed securities         | — |  |   | 889,553 |  |   | 40,000 |  |   | 929,553 |  |
| Asset backed securities                       | — |  |   | 717,254 |  |   | 12,333 |  |   | 729,587 |  |
| State and municipal obligations               | — |  |   | 54,476 |  |   | — |  |   | 54,476 |  |
| U.S. government and agency obligations        | 1,418,812 |  |   | — |  |   | — |  |   | 1,418,812 |  |
| Total Available-for-Sale securities           | 1,418,812 |  |   | 5,157,631 |  |   | 145,158 |  |   | 6,721,601 |  |
| Equity securities                             | 491 |  |   | 480 |  |   | — |  |   | 971 |  |
| Equity derivative contracts                   | 1 |  |   | 37,462 |  |   | — |  |   | 37,463 |  |
| Total assets at fair value                    | $ | 1,419,304 |  |   | $ | 5,562,872 |  |   | $ | 145,158 |  |   | $ | 7,127,334 |  |
|                                          |   |   |   |   |   |   |   |
| Liabilities                                   |   |  |   |   |   |   |   |   |
| Stock market certificate embedded derivatives | $ | — |  |   | $ | 9,893 |  |   | $ | — |  |   | $ | 9,893 |  |
| Equity derivative contracts                   | — |  |   | 29,747 |  |   | — |  |   | 29,747 |  |
| Total liabilities at fair value               | $ | — |  |   | $ | 39,640 |  |   | $ | — |  |   | $ | 39,640 |  |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          | December 31, 2017 |
| Level 1                                  |   | Level 2 |   | Level 3 |   | Total |
| (in thousands)                           |
| Assets                                        |   |  |   |   |   |   |   |   |
| Cash equivalents                              | $ | — |  |   | $ | 51,296 |  |   | $ | — |  |   | $ | 51,296 |  |
| Available-for-Sale securities:                |   |   |   |   |   |   |   |  |
| Residential mortgage backed securities        | — |  |   | 3,187,617 |  |   | 68,710 |  |   | 3,256,327 |  |
| Corporate debt securities                     | — |  |   | 1,112,949 |  |   | 67,341 |  |   | 1,180,290 |  |
| Commercial mortgage backed securities         | — |  |   | 795,463 |  |   | — |  |   | 795,463 |  |
| Asset backed securities                       | — |  |   | 759,503 |  |   | — |  |   | 759,503 |  |
| State and municipal obligations               | — |  |   | 58,057 |  |   | — |  |   | 58,057 |  |
| U.S. government and agency obligations        | 497,121 |  |   | — |  |   | — |  |   | 497,121 |  |
| Common stocks                                 | 545 |  |   | 427 |  |   | 28 |  |   | 1,000 |  |
| Total Available-for-Sale securities           | 497,666 |  |   | 5,914,016 |  |   | 136,079 |  |   | 6,547,761 |  |
| Equity derivative contracts                   | — |  |   | 54,346 |  |   | — |  |   | 54,346 |  |
| Total assets at fair value                    | $ | 497,666 |  |   | $ | 6,019,658 |  |   | $ | 136,079 |  |   | $ | 6,653,403 |  |
|                                          |   |   |   |   |   |   |   |
| Liabilities                                   |   |  |   |   |   |   |   |   |
| Stock market certificate embedded derivatives | $ | — |  |   | $ | 9,734 |  |   | $ | — |  |   | $ | 9,734 |  |
| Equity derivative contracts                   | 3 |  |   | 46,753 |  |   | — |  |   | 46,756 |  |
| Total liabilities at fair value               | $ | 3 |  |   | $ | 56,487 |  |   | $ | — |  |   | $ | 56,490 |  |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                    | Available-for-Sale Securities |   |
| Residential Mortgage Backed Securities                                                  |   | Corporate Debt Securities |   | Commercial Mortgage Backed Securities |   | Asset Backed Securities |   | Total |
| (in thousands)                                                                     |   |
| Balance, April 1, 2018                                                             | $ | 62,052 |  |   | $ | 67,025 |  |   | $ | — |  |   | $ | — |  |   | $ | 129,077 |  |   |
| Total gains (losses) included in:                                                       |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                              | (19 | ) |   | (99 | ) |   | — |  |   | — |  |   | (118 | ) | (1)  |
| Other comprehensive income (loss)                                                       | 75 |  |   | (166 | ) |   | — |  |   | — |  |   | (91 | ) |   |
| Purchases                                                                               | — |  |   | — |  |   | 40,000 |  |   | 12,333 |  |   | 52,333 |  |   |
| Settlements                                                                             | (8,773 | ) |   | (25,000 | ) |   | — |  |   | — |  |   | (33,773 | ) |   |
| Transfers out of Level 3                                                                | (2,270 | ) |   | — |  |   | — |  |   | — |  |   | (2,270 | ) |   |
| Balance, June 30, 2018                                                        | $ | 51,065 |  |   | $ | 41,760 |  |   | $ | 40,000 |  |   | $ | 12,333 |  |   | $ | 145,158 |  |   |
| Changes in unrealized gains (losses) relating to assets held at June 30, 2018 | $ | (19 | ) |   | $ | (15 | ) |   | $ | — |  |   | $ | — |  |   | $ | (34 | ) | (1)  |

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                    | Available-for-Sale Securities |   |
| Residential Mortgage Backed Securities                                                  |   | Corporate Debt Securities |   | Asset Backed Securities |   | Common Stocks |   | Total |
| (in thousands)                                                                     |
| Balance, April 1, 2017                                                             | $ | 158,722 |  |   | $ | 158,523 |  |   | $ | — |  |   | $ | 3,813 |  |   | $ | 321,058 |  |   |
| Total gains (losses) included in:                                                       |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                              | 72 |  |   | (123 | ) |   | 2 |  |   | — |  |   | (49 | ) | (1)  |
| Other comprehensive income (loss)                                                       | 164 |  |   | (78 | ) |   | 10 |  |   | 9 |  |   | 105 |  |   |
| Settlements                                                                             | (11,611 | ) |   | (15,000 | ) |   | — |  |   | — |  |   | (26,611 | ) |   |
| Transfers into Level 3                                                                  | — |  |   | — |  |   | 3,037 |  |   | 161 |  |   | 3,198 |  |   |
| Transfers out of Level 3                                                                | (65,133 | ) |   | — |  |   | — |  |   | (3,715 | ) |   | (68,848 | ) |   |
| Balance, June 30, 2017                                                        | $ | 82,214 |  |   | $ | 143,322 |  |   | $ | 3,049 |  |   | $ | 268 |  |   | $ | 228,853 |  |   |
| Changes in unrealized gains (losses) relating to assets held at June 30, 2017 | $ | 72 |  |   | $ | (122 | ) |   | $ | 2 |  |   | $ | — |  |   | $ | (48 | ) | (1)  |

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                    | Available-for-Sale Securities |   | Equity Securities |
| Residential Mortgage Backed Securities                                                  |   | Corporate Debt Securities |   | Commercial Mortgage Backed Securities |   | Asset Backed Securities |   | Total |
| (in thousands)                                                                     |
| Balance, January 1, 2018                                                                | $ | 68,710 |  |   | $ | 67,341 |  |   | $ | — |  |   | $ | — |  |   | $ | 136,051 |  |   | $ | 28 |  |
| Total gains (losses) included in:                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                              | (24 | ) |   | (199 | ) |   | — |  |   | — |  |   | (223 | ) | (1)  | — |  |
| Other comprehensive income (loss)                                                       | (486 | ) |   | (382 | ) |   | — |  |   | — |  |   | (868 | ) |   | — |  |
| Purchases                                                                               | — |  |   | — |  |   | 40,000 |  |   | 12,333 |  |   | 52,333 |  |   | — |  |
| Settlements                                                                             | (14,865 | ) |   | (25,000 | ) |   | — |  |   | — |  |   | (39,865 | ) |   | — |  |
| Transfers out of Level 3                                                                | (2,270 | ) |   | — |  |   | — |  |   | — |  |   | (2,270 | ) |   | (28 | ) |
| Balance, June 30, 2018                                                        | $ | 51,065 |  |   | $ | 41,760 |  |   | $ | 40,000 |  |   | $ | 12,333 |  |   | $ | 145,158 |  |   | $ | — |  |
| Changes in unrealized gains (losses) relating to assets held at June 30, 2018 | $ | (16 | ) |   | $ | (30 | ) |   | $ | — |  |   | $ | — |  |   | $ | (46 | ) | (1)  | $ | — |  |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                    | Available-for-Sale Securities |   |
| Residential Mortgage Backed Securities                                                  |   | Corporate Debt Securities |   | Asset Backed Securities |   | Common Stocks |   | Total |
| (in thousands)                                                                     |
| Balance, January 1, 2017                                                                | $ | 153,183 |  |   | $ | 154,156 |  |   | $ | 30,788 |  |   | $ | 717 |  |   | $ | 338,844 |  |   |
| Total gains (losses) included in:                                                       |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                              | 88 |  |   | (224 | ) |   | 2 |  |   | 65 |  |   | (69 | ) | (2)  |
| Other comprehensive income (loss)                                                       | 162 |  |   | (277 | ) |   | 10 |  |   | 228 |  |   | 123 |  |   |
| Purchases                                                                               | 65,138 |  |   | 12,167 |  |   | — |  |   | — |  |   | 77,305 |  |   |
| Sales                                                                                   | — |  |   | — |  |   | — |  |   | (151 | ) |   | (151 | ) |   |
| Settlements                                                                             | (21,395 | ) |   | (22,500 | ) |   | — |  |   | — |  |   | (43,895 | ) |   |
| Transfers into Level 3                                                                  | — |  |   | — |  |   | 3,037 |  |   | 3,568 |  |   | 6,605 |  |   |
| Transfers out of Level 3                                                                | (114,962 | ) |   | — |  |   | (30,788 | ) |   | (4,159 | ) |   | (149,909 | ) |   |
| Balance, June 30, 2017                                                        | $ | 82,214 |  |   | $ | 143,322 |  |   | $ | 3,049 |  |   | $ | 268 |  |   | $ | 228,853 |  |   |
| Changes in unrealized gains (losses) relating to assets held at June 30, 2017 | $ | 93 |  |   | $ | (221 | ) |   | $ | 2 |  |   | $ | — |  |   | $ | (126 | ) | (1)  |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | June 30, 2018 |
| Fair Value                                                  |   | Valuation Technique |   | Unobservable Input |   | Range |   | Weighted Average |
| (in thousands)                                              |   |   |   |   |   |   |   |   |
| Corporate debt securities    (private placements) | $ | 41,758 |  |   | Discounted cash flow |   | Yield/spread to U.S. Treasuries |   | 1.0% - 1.3% |   | 1.1% |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | December 31, 2017 |
| Fair Value                                                  |   | Valuation Technique |   | Unobservable Input |   | Range |   | Weighted Average |
| (in thousands)                                              |   |   |   |   |   |   |   |   |
| Corporate debt securities    (private placements) | $ | 67,338 |  |   | Discounted cash flow |   | Yield/spread to U.S. Treasuries |   | 0.8% - 1.1% |   | 0.9% |

----

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | June 30, 2018 |
| Carrying Value       |   | Fair Value |
| Level 1              |   | Level 2 |   | Level 3 |   | Total |
| (in thousands)       |
| Financial Assets          |   |   |   |   |   |   |   |   |   |
| Syndicated loans          | $ | 134,304 |  |   | $ | — |  |   | $ | 119,589 |  |   | $ | 14,331 |  |   | $ | 133,920 |  |
| Commercial mortgage loans | 106,840 |  |   | — |  |   | — |  |   | 105,769 |  |   | 105,769 |  |
| Certificate loans         | 267 |  |   | — |  |   | 267 |  |   | — |  |   | 267 |  |
| Financial Liabilities     |   |   |   |   |   |   |   |   |   |
| Certificate reserves      | $ | 6,908,642 |  |   | $ | — |  |   | $ | — |  |   | $ | 6,878,016 |  |   | $ | 6,878,016 |  |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | December 31, 2017 |
| Carrying Value       |   | Fair Value |
| Level 1              |   | Level 2 |   | Level 3 |   | Total |
| (in thousands)       |
| Financial Assets          |   |   |   |   |   |   |   |   |   |
| Syndicated loans          | $ | 99,543 |  |   | $ | — |  |   | $ | 95,769 |  |   | $ | 4,242 |  |   | $ | 100,011 |  |
| Commercial mortgage loans | 107,644 |  |   | — |  |   | — |  |   | 107,670 |  |   | 107,670 |  |
| Certificate loans         | 433 |  |   | — |  |   | 433 |  |   | — |  |   | 433 |  |
| Financial Liabilities     |   |   |   |   |   |   |   |   |   |
| Certificate reserves      | $ | 6,390,590 |  |   | $ | — |  |   | $ | — |  |   | $ | 6,374,247 |  |   | $ | 6,374,247 |  |

|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                               | June 30, 2018 |
| 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 |   | Net Amount |
| Financial Instruments (1)     |   | Cash Collateral |
| (in thousands)                |
| Derivatives:                       |   |   |   |   |   |   |   |   |   |   |   |
| OTC                                | $ | 37,462 |  |   | $ | — |  |   | $ | 37,462 |  |   | $ | (29,747 | ) |   | $ | (6,706 | ) |   | $ | 1,009 |  |
| Exchange-traded                    | 1 |  |   | — |  |   | 1 |  |   | — |  |   | — |  |   | 1 |  |
| Total                              | $ | 37,463 |  |   | $ | — |  |   | $ | 37,463 |  |   | $ | (29,747 | ) |   | $ | (6,706 | ) |   | $ | 1,010 |  |

----

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                    | December 31, 2017 |
| 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 |   | Net Amount |
| Financial Instruments (1)          |   | Cash Collateral |
| (in thousands)                     |
| Derivatives:                            |   |   |   |   |   |   |   |   |   |   |   |
| OTC                                     | $ | 54,346 |  |   | $ | — |  |   | $ | 54,346 |  |   | $ | (46,753 | ) |   | $ | (6,883 | ) |   | $ | 710 |  |
| Total                                   | $ | 54,346 |  |   | $ | — |  |   | $ | 54,346 |  |   | $ | (46,753 | ) |   | $ | (6,883 | ) |   | $ | 710 |  |

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                         | June 30, 2018 |
| 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 |   | Net Amount |
| Financial Instruments (1)               |   | Cash Collateral |
| (in thousands)                          |
| Derivatives:                                 |   |   |   |   |   |   |   |   |   |   |   |
| OTC                                          | $ | 29,747 |  |   | $ | — |  |   | $ | 29,747 |  |   | $ | (29,747 | ) |   | $ | — |  |   | $ | — |  |
| Total                                        | $ | 29,747 |  |   | $ | — |  |   | $ | 29,747 |  |   | $ | (29,747 | ) |   | $ | — |  |   | $ | — |  |

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                         | December 31, 2017 |
| 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 |   | Net Amount |
| Financial Instruments (1)               |   | Cash Collateral |
| (in thousands)                          |
| Derivatives:                                 |   |   |   |   |   |   |   |   |   |   |   |
| OTC                                          | $ | 46,753 |  |   | $ | — |  |   | $ | 46,753 |  |   | $ | (46,753 | ) |   | $ | — |  |   | $ | — |  |
| Exchange-traded                              | 3 |  |   | — |  |   | 3 |  |   | — |  |   | — |  |   | 3 |  |
| Total                                        | $ | 46,756 |  |   | $ | — |  |   | $ | 46,756 |  |   | $ | (46,753 | ) |   | $ | — |  |   | $ | 3 |  |

----

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | June 30, 2018 |   | December 31, 2017 |
| Notional                                                    |   | Gross Fair Value | Notional |   | Gross Fair Value |
| Assets                                                      |   | Liabilities | Assets |   | Liabilities |
| (in thousands)                                              |
| Derivatives not designated as hedging instruments |   |   |   |   |   |   |   |   |   |   |   |
|   Equity contracts(1)                             | $ | 830,718 |  |   | $ | 37,463 |  |   | $ | 29,747 |  |   | $ | 871,895 |  |   | $ | 54,346 |  |   | $ | 46,756 |  |
| Embedded derivatives                                        |   |   |   |   |   |   |   |   |   |   |   |
|   Stock market certificates(2)                    | N/A |  |   | — |  |   | 9,893 |  |   | N/A |  |   | — |  |   | 9,734 |  |
| Total derivatives                                           | $ | 830,718 |  |   | $ | 37,463 |  |   | $ | 39,640 |  |   | $ | 871,895 |  |   | $ | 54,346 |  |   | $ | 56,490 |  |

|           |                                                                                                                                          |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | The gross fair value of equity contracts is included in Derivative assets and Derivative liabilities on the Consolidated Balance Sheets. |

|           |                                                                                                                               |
|-----------|-------------------------------------------------------------------------------------------------------------------------------|
| (2)  | The gross fair value of SMC embedded derivatives is included in Certificate reserves on the Consolidated Balance Sheets. |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 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,                                      |   | Six Months Ended June 30, |
| 2018                                                                  |   | 2017 | 2018 |   | 2017 |
|                                                                  |   | (in thousands) |
| Equity contracts                                                      |   |   |   |   |   |   |   |   |
| Stock market certificates                                             | Net provision for certificate reserves | $ | 934 |  |   | $ | 693 |  |   | $ | 514 |  |   | $ | 2,019 |  |
| Stock market certificates embedded derivatives                        | Net provision for certificate reserves | (1,098 | ) |   | (601 | ) |   | (453 | ) |   | (1,865 | ) |
| Total                                                                 | $ | (164 | ) |   | $ | 92 |  |   | $ | 61 |  |   | $ | 154 |  |

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Accumulated Other Comprehensive Income (Loss) Reclassification | Location of (Gain) Loss Recognized in Income |   | Three Months Ended June 30, |   | Six Months Ended June 30, |
| 2018                                                           |   | 2017 |   | 2018 |   | 2017 |
|                                                           |   | (in thousands) |
| Unrealized net (gains) losses on Available-for-Sale securities | Net realized gain (loss) on investments | $ | 295 |  |   | $ | (7,189 | ) |   | $ | (385 | ) |   | $ | (8,891 | ) |
| Tax expense (benefit)                                          | Income tax expense (benefit) | (62 | ) |   | 2,516 |  |   | 81 |  |   | 3,112 |  |
| Net of tax                                                     | $ | 233 |  |   | $ | (4,673 | ) |   | $ | (304 | ) |   | $ | (5,779 | ) |

----

----

----

|                                    |
|------------------------------------|
|                                    |  |
| Exhibit                            | Description |
|                               |   |
| 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 Jason S. Bartylla pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. |
| 32*                                | Certification of Abu M. Arif and Jason S. Bartylla pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| * Filed electronically herewithin. |

----

|        |
|--------|
|        |  |  |  |  |  |
|   |   |   |   | AMERIPRISE CERTIFICATE COMPANY |   |
|   |   |   |   | (Registrant) |   |
|   |   |   |   |   |   |
|   |   |   |   |   |   |
|   |   |   |   |   |   |
| Date:  | August 6, 2018 |   | By: | /s/ Abu M. Arif |   |
|   |   |   |   | Abu M. Arif |   |
|   |   |   |   | Chief Executive Officer |   |
|   |   |   |   |   |   |
|   |   |   |   |   |   |
| Date:  | August 6, 2018 |   | By: | /s/ Jason S. Bartylla |   |
|   |   |   |   | Jason S. Bartylla |   |
|   |   |   |   | Chief Financial Officer |   |