|                                    |  |  |      |  |  |  |  |  |  |  |  |  |  |  |
|------------------------------------|--|--|------|--|--|--|--|--|--|--|--|--|--|--|
|                                    |  |  |      |  |
|                                    |  |  |      |  |
| UNITED STATES                      |  |  |      |  |
| SECURITIES AND EXCHANGE COMMISSION |  |  |      |  |
| WASHINGTON, D.C. 20549             |  |  |      |  |
| FORM                               |  |  | 10-Q |  |

|                                                                                |         |  |                                                                                                    |               |  |  |  |  |  |  |  |  |  |  |  |  |  |
|--------------------------------------------------------------------------------|---------|--|----------------------------------------------------------------------------------------------------|---------------|--|--|--|--|--|--|--|--|--|--|--|--|--|
|                                                                                | ☒ |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934       |               |  |
| For the Quarterly Period Ended                                                 |         |  |                                                                                                    | June 30, 2020 |  |
| OR                                                                             |         |  |                                                                                                    |               |  |
|                                                                                | ☐ |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |               |  |
| For the Transition Period from_______________________to_______________________ |         |  |                                                                                                    |               |  |

|                     |           |  |  |  |  |
|---------------------|-----------|--|--|--|--|
| Commission File No. | 811-00002 |

|                                                        |  |  |
|--------------------------------------------------------|--|--|
| AMERIPRISE CERTIFICATE COMPANY                         |
| (Exact name of registrant as specified in its charter) |

|  |                                                                |        |                                      |  |  |  |  |  |  |  |  |  |  |  |
|--|----------------------------------------------------------------|--------|--------------------------------------|--|--|--|--|--|--|--|--|--|--|--|
|  | 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) |  |

|  |                                                               |       |          |  |  |  |  |  |  |  |  |  |  |  |
|--|---------------------------------------------------------------|-------|----------|--|--|--|--|--|--|--|--|--|--|--|
|  | Registrant’s telephone number, including area code: | (612) | 671-3131 |  |

|                                                                                       |                |  |  |  |  |  |  |  |  |  |  |  |  |  |
|---------------------------------------------------------------------------------------|----------------|--|--|--|--|--|--|--|--|--|--|--|--|--|
| Former name, former address and former fiscal year, if changed since last report: | Not Applicable |  |  |  |

|                                                                                                                                                                                                                                                                                                                                                                                   |     |         |    |         |  |  |  |  |  |  |  |  |  |  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----|---------|----|---------|--|--|--|--|--|--|--|--|--|--|
| Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Yes | ☒ | No | ☐ |

|                                                                                                                                                                                                                                                                                                                                      |     |         |    |         |  |  |  |  |  |  |  |  |  |  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----|---------|----|---------|--|--|--|--|--|--|--|--|--|--|
| Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). | Yes | ☒ | No | ☐ |

|                                                                                                                                                                                                                                                                                                                                                                                                                |                         |         |                           |         |                         |         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|---------|---------------------------|---------|-------------------------|---------|--|--|--|--|--|--|--|--|--|--|--|--|--|--|
| 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 the 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 | ☐ | Accelerated Filer         | ☐ | Non-accelerated Filer   | ☒ |
|                                                                                                                                                                                                                                                                                                                                                                                                                |                         |         | Smaller reporting company | ☐ | Emerging growth company | ☐ |

|                                                                                                                                                                                                                                                            |         |  |  |  |  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--|--|--|--|
| 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. | ☐ |

|                                                                                                                       |     |         |    |         |  |  |  |  |  |  |  |  |  |  |
|-----------------------------------------------------------------------------------------------------------------------|-----|---------|----|---------|--|--|--|--|--|--|--|--|--|--|
| Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Yes | ☐ | No | ☒ |

|                                                                                                                                                                                         |                                        |        |                                     |  |  |  |  |  |  |  |  |  |  |  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|--------|-------------------------------------|--|--|--|--|--|--|--|--|--|--|--|
| Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.                                                     |                                        |        |                                     |  |
|                                                                                                                                                                                         | Class                                  |   | Outstanding at August 10, 2020 |  |
|                                                                                                                                                                                         | Common Stock (par value $10 per share) |        | 150,000 shares                      |  |
|                                                                                                                                                                                         |                                        |        |                                     |  |
| THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT. |                                        |        |                                     |  |
|                                                                                                                                                                                         |                                        |        |                                     |  |

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

----

|                                                          |                                                                                                                  |                                            |    |  |  |  |  |  |  |  |  |
|----------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|--------------------------------------------|----|--|--|--|--|--|--|--|--|
| Part I.  Financial Information                      |                                                                                                                  |                                            |    |
| Item 1. Financial Statements (Unaudited)                 |                                                                                                                  |                                            | 3  |
|                                                          | Consolidated Statements of Operations — Three months and six months ended June 30, 2020 and 2019           |                                            | 3  |
|                                                          | Consolidated Statements of Comprehensive Income — Three months and six months ended June 30, 2020 and 2019 |                                            | 4  |
|                                                          | Consolidated Balance Sheets — June 30, 2020 and December 31, 2019                                          |                                            | 5  |
|                                                          | Consolidated Statements of Shareholder's Equity — Three months and six months ended June 30, 2020 and 2019 |                                            | 6  |
|                                                          | Consolidated Statements of Cash Flows — Six months ended June 30, 2020 and 2019                            |                                            | 7  |
|                                                          | Notes to Consolidated Financial Statements                                                                       |                                            | 8  |
|                                                          | 1.                                                                                                               | Basis of Presentation                      | 8  |
|                                                          | 2.                                                                                                               | Summary of Significant Accounting Policies | 8  |
|                                                          | 3.                                                                                                               | Recent Accounting Pronouncements           | 10 |
|                                                          | 4.                                                                                                               | Investments                                | 12 |
|                                                          | 5.                                                                                                               | Financing Receivables                      | 15 |
|                                                          | 6.                                                                                                               | Fair Values of Assets and Liabilities      | 18 |
|                                                          | 7.                                                                                                               | Offsetting Assets and Liabilities          | 23 |
|                                                          | 8.                                                                                                               | Derivatives and Hedging Activities         | 24 |
|                                                          | 9.                                                                                                               | Contingencies                              | 25 |
|                                                          | 10.                                                                                                              | Shareholder’s Equity                 | 25 |
|                                                          | 11.                                                                                                              | Income Taxes                               | 26 |
| Item 2.  Management’s Narrative Analysis |                                                                                                                  |                                            | 27 |
| Item 4.  Controls and Procedures               |                                                                                                                  |                                            | 28 |
|                                                          |                                                                                                                  |                                            |    |
| Part II.  Other Information               |                                                                                                                  |                                            | 29 |
| Item 1.  Legal Proceedings                     |                                                                                                                  |                                            | 29 |
| Item 1A.  Risk Factors                         |                                                                                                                  |                                            | 29 |
| Item 6.  Exhibits                              |                                                                                                                  |                                            | 29 |
| Signatures                                               |                                                                                                                  |                                            | 30 |

----

|                                                                                  |                             |              |        |              |                           |              |              |        |   |              |        |  |   |               |        |  |  |  |  |  |  |  |  |
|----------------------------------------------------------------------------------|-----------------------------|--------------|--------|--------------|---------------------------|--------------|--------------|--------|---|--------------|--------|--|---|---------------|--------|--|--|--|--|--|--|--|--|
|                                                                             | Three Months Ended June 30, |              |        |              | Six Months Ended June 30, |              |              |
|                                                                                  | 2020                        |              | 2019   |              | 2020                      |              | 2019         |
|                                                                                  | (in thousands)              |              |        |              |                           |              |              |
| Investment income                                                                | $                           | 35,846  |   |              | $                         | 62,280  |         |        | $ | 83,237  |   |  | $ | 123,990  |   |
| Investment expenses                                                              | 10,810                 |         |        | 12,261  |                      |              | 21,726  |   |   | 24,468  |   |
| Net investment income before provision for certificate reserves and income taxes | 25,036                 |         |        | 50,019  |                      |              | 61,511  |   |   | 99,522  |   |
| Net provision for certificate reserves                                           | 17,618                 |         |        | 33,718  |                      |              | 40,869  |   |   | 67,776  |   |
| Net investment income before income taxes                                        | 7,418                  |         |        | 16,301  |                      |              | 20,642  |   |   | 31,746  |   |
| Income tax expense                                                               | 1,742                  |         |        | 4,195   |                      |              | 4,997   |   |   | 8,003   |   |
| Net investment income, after-tax                                                 | 5,676                  |         |        | 12,106  |                      |              | 15,645  |   |   | 23,743  |   |
|                                                                                  |                             |              |        |              |                           |              |              |
| Net realized gain (loss) on investments before income taxes                      | 379                    |         |        | 116     |                      |              | (360)        |   |   | 37      |   |
| Income tax expense (benefit)                                                     | 79                     |         |        | 25      |                      |              | (76)         |   |   | 8       |   |
| Net realized gain (loss) on investments, after-tax                               | 300                    |         |        | 91      |                      |              | (284)        |   |   | 29      |   |
| Net income                                                                       | $                           | 5,976   |   |              | $                         | 12,197  |         |        | $ | 15,361  |   |  | $ | 23,772   |   |
| See Notes to Consolidated Financial Statements.                                  |                             |              |        |              |                           |              |              |

----

|                                                                                       |                             |               |        |              |                           |              |             |        |   |              |        |  |   |              |        |  |  |  |  |  |  |  |  |
|---------------------------------------------------------------------------------------|-----------------------------|---------------|--------|--------------|---------------------------|--------------|-------------|--------|---|--------------|--------|--|---|--------------|--------|--|--|--|--|--|--|--|--|
|                                                                                       | Three Months Ended June 30, |               |        |              | Six Months Ended June 30, |              |             |
|                                                                                       | 2020                        |               | 2019   |              | 2020                      |              | 2019        |
|                                                                                       | (in thousands)              |               |        |              |                           |              |             |
| Net income                                                                            | $                           | 5,976    |   |              | $                         | 12,197  |        |        | $ | 15,361  |   |  | $ | 23,772  |   |
| Other comprehensive income (loss), net of tax:                                    |                             |               |        |              |                           |              |             |
| Net unrealized gains (losses) on securities:                                      |                             |               |        |              |                           |              |             |
| Net unrealized gains (losses) on securities arising during the period            | 105,777                |          |        | 29,720  |                      |              | 2,894  |   |   | 52,191  |   |
| Reclassification of net (gains) losses on securities included in net income | (310)                       |          |        | (96)         |                      |              | (500)       |   |   | (70)         |   |
| Total other comprehensive income (loss), net of tax                                   | 105,467                |          |        | 29,624  |                      |              | 2,394  |   |   | 52,121  |   |
| Total comprehensive income (loss)                                                     | $                           | 111,443  |   |              | $                         | 41,821  |        |        | $ | 17,755  |   |  | $ | 75,893  |   |
| See Notes to Consolidated Financial Statements.                                       |                             |               |        |              |                           |              |             |

----

|                                                                                                                                                                 |                                   |                 |                        |                 |        |                 |        |  |  |  |  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|-----------------|------------------------|-----------------|--------|-----------------|--------|--|--|--|--|
|                                                                                                                                                                 | June 30, 2020                     |                 | December 31, 2019 |
|                                                                                                                                                                 | (in thousands, except share data) |                 |                        |
| Assets                                                                                                                                                          |                                   |                 |                        |
| Qualified Assets                                                                                                                                                |                                   |                 |                        |
| Cash and cash equivalents                                                                                                                                       | $                                 | 629,375    |                   |                 | $      | 384,194    |   |
| Investments in unaffiliated issuers (net of allowance for credit losses: 2020, $3,228; 2019, $3,022 (1) )                                               | 7,430,495                    |            |                        | 7,647,035  |   |
| Receivables                                                                                                                                                     | 18,351                       |            |                        | 24,014     |   |
| Derivative assets                                                                                                                                               | 34,628                       |            |                        | 56,044     |   |
| Total qualified assets                                                                                                                                          | 8,112,849                    |            |                        | 8,111,287  |   |
| Deferred taxes, net                                                                                                                                             | —                      |            |                        | 988        |   |
| Taxes receivable from parent                                                                                                                                    | —                      |            |                        | 602        |   |
| Due from related party                                                                                                                                          | 25                           |            |                        | 30         |   |
| Total assets                                                                                                                                                    | $                                 | 8,112,874  |                   |                 | $      | 8,112,907  |   |
|                                                                                                                                                                 |                                   |                 |                        |
| Liabilities and Shareholder’s Equity                                                                                                                      |                                   |                 |                        |
| Liabilities                                                                                                                                                     |                                   |                 |                        |
| Certificate reserves                                                                                                                                            | $                                 | 7,451,079  |                   |                 | $      | 7,522,323  |   |
| Deferred taxes, net                                                                                                                                             | 2,211                        |            |                        | —    |   |
| Taxes payable to parent                                                                                                                                         | 2,032                        |            |                        | 135        |   |
| Derivative liabilities                                                                                                                                          | 27,117                       |            |                        | 43,598     |   |
| Payables to brokers, dealers and clearing organizations                                                                                                         | 143,809                      |            |                        | 52,575     |   |
| Due to related party and other liabilities                                                                                                                      | 48,020                       |            |                        | 52,010     |   |
| Total liabilities                                                                                                                                               | 7,674,268                    |            |                        | 7,670,641  |   |
|                                                                                                                                                                 |                                   |                 |                        |
| Shareholder’s Equity                                                                                                                                      |                                   |                 |                        |
| Common shares ($10 par value, 150,000 shares authorized and issued)                                                                                             | 1,500                        |            |                        | 1,500      |   |
| Additional paid-in capital                                                                                                                                      | 341,700                      |            |                        | 331,700    |   |
| Total retained earnings                                                                                                                                         | 80,749                       |            |                        | 96,803     |   |
| Accumulated other comprehensive income (loss), net of tax                                                                                                       | 14,657                       |            |                        | 12,263     |   |
| Total shareholder’s equity                                                                                                                                | 438,606                      |            |                        | 442,266    |   |
| Total liabilities and shareholder’s equity                                                                                                                | $                                 | 8,112,874  |                   |                 | $      | 8,112,907  |   |
|                                                                                                                                                                 |                                   |                 |                        |
| (1) Prior to January 1, 2020, the allowance for credit losses is not applicable to Available-for-Sale securities. See Notes 2, 3, 4 and 5 for more information. |                                   |                 |                        |
| 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, April 1, 2019                                                                               | 150,000                      |   |               | $             | 1,500                 |   |                                                                    | $      | 289,517                                                  |          |                | $ | 800                                                       |   |               | $             | 15  |   |               | $      | 166,829  |          |        | $ | (11,334)     |   |  | $ | 447,327  |   |
| Comprehensive income (loss):                                                                     |                                   |        |               |               |                            |        |                                                                    |        |                                                               |               |                |   |                                                                |        |               |
| Net income                                                                                           | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | —  |           |   | —                                                   |   |               | 12,197   |     |        | —  |   |               | 12,197   |   |
| Other comprehensive income (loss), net of tax                                                        | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | —  |           |   | —                                                   |   |               | —  |     |        | 29,624   |   |               | 29,624   |   |
| Total comprehensive income (loss)                                                                    |                              |        |          |               |                       |        |                                                               |        |                                                          |               |           |   |                                                           |        | 41,821   |          |
| Transfer to unappropriated from appropriated                                                         | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | (180)         |           |   | —                                                   |   |               | 180      |     |        | —  |   |               | —  |   |
| Balance, June 30, 2019                                                                               | 150,000                      |   |               | $             | 1,500                 |   |                                                                    | $      | 289,517                                                  |          |                | $ | 620                                                       |   |               | $             | 15  |   |               | $      | 179,206  |          |        | $ | 18,290  |   |  | $ | 489,148  |   |
|                                                                                                      |                                   |        |               |               |                            |        |                                                                    |        |                                                               |               |                |   |                                                                |        |               |
| Balance, April 1, 2020                                                                               | 150,000                      |   |               | $             | 1,500                 |   |                                                                    | $      | 341,700                                                  |          |                | $ | 197                                                       |   |               | $             | 15  |   |               | $      | 74,561   |          |        | $ | (90,810)     |   |  | $ | 327,163  |   |
| Comprehensive income (loss):                                                                     |                                   |        |               |               |                            |        |                                                                    |        |                                                               |               |                |   |                                                                |        |               |
| Net income                                                                                           | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | —  |           |   | —                                                   |   |               | 5,976    |     |        | —  |   |               | 5,976    |   |
| Other comprehensive income (loss), net of tax                                                        | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | —  |           |   | —                                                   |   |               | —  |     |        | 105,467  |   |               | 105,467  |   |
| Total comprehensive income (loss)                                                                    |                              |        |          |               |                       |        |                                                               |        |                                                          |               |           |   |                                                           |        | 111,443  |          |
| Transfer to unappropriated from appropriated                                                         | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | (84)          |           |   | —                                                   |   |               | 84       |     |        | —  |   |               | —  |   |
|                                                                                                      |                                   |        |               |               |                            |        |                                                                    |        |                                                               |               |                |   |                                                                |        |               |
| Balance, June 30, 2020                                                                               | 150,000                      |   |               | $             | 1,500                 |   |                                                                    | $      | 341,700                                                  |          |                | $ | 113                                                       |   |               | $             | 15  |   |               | $      | 80,621   |          |        | $ | 14,657  |   |  | $ | 438,606  |   |
|                                                                                                      |                                   |        |               |               |                            |        |                                                                    |        |                                                               |               |                |   |                                                                |        |               |
| Balance, January 1, 2019                                                                             | 150,000                      |   |               | $             | 1,500                 |   |                                                                    | $      | 285,017                                                  |          |                | $ | 910                                                       |   |               | $             | 15  |   |               | $      | 155,251  |          |        | $ | (33,831)     |   |  | $ | 408,862  |   |
| Cumulative effect of adoption of premium amortization on purchased callable debt securities guidance | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | —  |           |   | —                                                   |   |               | (107)         |     |        | —  |   |               | (107)         |   |
| Comprehensive income (loss):                                                                     |                                   |        |               |               |                            |        |                                                                    |        |                                                               |               |                |   |                                                                |        |               |
| Net income                                                                                           | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | —  |           |   | —                                                   |   |               | 23,772   |     |        | —  |   |               | 23,772   |   |
| Other comprehensive income (loss), net of tax                                                        | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | —  |           |   | —                                                   |   |               | —  |     |        | 52,121   |   |               | 52,121   |   |
| Total comprehensive income (loss)                                                                    |                              |        |          |               |                       |        |                                                               |        |                                                          |               |           |   |                                                           |        | 75,893   |          |
| Transfer to unappropriated from appropriated                                                         | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | (290)         |           |   | —                                                   |   |               | 290      |     |        | —  |   |               | —  |   |
| Receipt of capital from parent                                                                       | —                      |   |               | —  |                       |        | 4,500                                                         |   |                                                               | —  |           |   | —                                                   |   |               | —  |     |        | —  |   |               | 4,500    |   |
| Balance, June 30, 2019                                                                               | 150,000                      |   |               | $             | 1,500                 |   |                                                                    | $      | 289,517                                                  |          |                | $ | 620                                                       |   |               | $             | 15  |   |               | $      | 179,206  |          |        | $ | 18,290  |   |  | $ | 489,148  |   |
|                                                                                                      |                                   |        |               |               |                            |        |                                                                    |        |                                                               |               |                |   |                                                                |        |               |
| Balance, January 1, 2020                                                                             | 150,000                      |   |               | $             | 1,500                 |   |                                                                    | $      | 331,700                                                  |          |                | $ | 321                                                       |   |               | $             | 15  |   |               | $      | 96,467   |          |        | $ | 12,263  |   |  | $ | 442,266  |   |
| Cumulative effect of adoption of current expected credit losses guidance                             | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | —  |           |   | —                                                   |   |               | 585      |     |        | —  |   |               | 585      |   |
| Comprehensive income (loss):                                                                     |                                   |        |               |               |                            |        |                                                                    |        |                                                               |               |                |   |                                                                |        |               |
| Net income                                                                                           | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | —  |           |   | —                                                   |   |               | 15,361   |     |        | —  |   |               | 15,361   |   |
| Other comprehensive income (loss), net of tax                                                        | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | —  |           |   | —                                                   |   |               | —  |     |        | 2,394    |   |               | 2,394    |   |
| Total comprehensive income (loss)                                                                    |                              |        |          |               |                            |        |                                                               |        |                                                          |               |           |   |                                                           |        | 17,755   |          |
| Transfer to unappropriated from appropriated                                                         | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | (208)         |           |   | —                                                   |   |               | 208      |     |        | —  |   |               | —  |   |
| Dividend to parent                                                                                   | —                      |   |               | —  |                       |        | —                                                       |   |                                                               | —  |           |   | —                                                   |   |               | (32,000)      |     |        | —  |   |               | (32,000)      |   |
| Receipt of capital from parent                                                                       | —                      |   |               | —  |                       |        | 10,000                                                        |   |                                                               | —  |           |   | —                                                   |   |               | —  |     |        | —  |   |               | 10,000   |   |
| Balance, June 30, 2020                                                                               | 150,000                      |   |               | $             | 1,500                 |   |                                                                    | $      | 341,700                                                  |          |                | $ | 113                                                       |   |               | $             | 15  |   |               | $      | 80,621   |          |        | $ | 14,657  |   |  | $ | 438,606  |   |
|                                                                                                      |                                   |        |               |               |                            |        |                                                                    |        |                                                               |               |                |   |                                                                |        |               |
| See Notes to Consolidated Financial Statements.                                                      |                                   |        |               |               |                            |        |                                                                    |        |                                                               |               |                |   |                                                                |        |               |

----

|                                                                                                 |                           |               |        |                 |        |               |        |  |  |  |  |
|-------------------------------------------------------------------------------------------------|---------------------------|---------------|--------|-----------------|--------|---------------|--------|--|--|--|--|
|                                                                                            | Six Months Ended June 30, |               |        |
|                                                                                                 | 2020                      |               | 2019   |
|                                                                                                 | (in thousands)            |               |        |
| Cash Flows from Operating Activities                                                            |                           |               |        |
| Net income                                                                                      | $                         | 15,361   |   |                 | $      | 23,772   |   |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |                      |               |        |
| Amortization of premiums, accretion of discounts, net                                           | (8,559)                   |          |        | (18,207)        |   |
| Deferred income tax expense (benefit)                                                           | 2,253                |          |        | (746)           |   |
| Net realized (gain) loss on Available-for-Sale securities                                       | (633)                     |          |        | (88)            |   |
| Other net realized (gain) loss                                                                  | 16                   |          |        | 51         |   |
| Provision for credit losses                                                                     | 977                  |          |        | —    |   |
| Changes in operating assets and liabilities:                                                |                      |               |        |
| Dividends and interest receivable                                                               | 17,092               |          |        | 20,548     |   |
| Certificate reserves, net                                                                       | (5,295)                   |          |        | 7,384      |   |
| Deferred taxes, net                                                                             | —              |          |        | (12,490)        |   |
| Taxes payable to/receivable from parent, net                                                | 2,499                |          |        | (689)           |   |
| Derivatives, net of collateral                                                                  | (625)                     |          |        | 34         |   |
| Other liabilities                                                                               | 1,824                |          |        | 8,102      |   |
| Other receivables                                                                               | (280)                     |          |        | 27         |   |
| Payables to brokers, dealers and clearing organizations                                         | —              |          |        | (21,451)        |   |
| Other, net                                                                                      | 64                   |          |        | 303        |   |
| Net cash provided by (used in) operating activities                                             | 24,694               |          |        | 6,550      |   |
|                                                                                                 |                           |               |        |
| Cash Flows from Investing Activities                                                            |                           |               |        |
| Available-for-Sale securities:                                                              |                           |               |        |
| Sales                                                                                           | —              |          |        | 9,689      |   |
| Maturities, redemptions and calls                                                               | 2,410,527            |          |        | 2,532,096  |   |
| Purchases                                                                                       | (2,099,453)               |          |        | (2,535,037)     |   |
| Syndicated loans and commercial mortgage loans:                                             |                           |               |        |
| Sales, maturities and repayments                                                                | 21,730               |          |        | 24,433     |   |
| Purchases and fundings                                                                          | (24,351)                  |          |        | (32,414)        |   |
|                                                                                                 |                           |               |        |
|                                                                                                 |                           |               |        |
| Certificate loans, net                                                                          | (17)                      |          |        | 39         |   |
| Net cash provided by (used in) investing activities                                             | 308,436              |          |        | (1,194)         |   |
|                                                                                                 |                           |               |        |
| Cash Flows from Financing Activities                                                            |                           |               |        |
| Payments from certificate holders and other additions                                           | 2,533,506            |          |        | 2,924,418  |   |
| Certificate maturities and cash surrenders                                                      | (2,599,455)               |          |        | (2,872,901)     |   |
| Capital contribution from parent                                                                | 10,000               |          |        | 4,500      |   |
| Dividend to parent                                                                              | (32,000)                  |          |        | —    |   |
| Net cash provided by (used in) financing activities                                             | (87,949)                  |          |        | 56,017     |   |
|                                                                                                 |                           |               |        |
| Net increase (decrease) in cash and cash equivalents                                            | 245,181              |          |        | 61,373     |   |
| Cash and cash equivalents at beginning of period                                                | 384,194              |          |        | 405,279    |   |
| Cash and cash equivalents at end of period                                                      | $                         | 629,375  |   |                 | $      | 466,652  |   |
|                                                                                                 |                           |               |        |
| Supplemental disclosures including non-cash transactions:                                   |                           |               |        |
| Cash paid (received) for income taxes                                                           | $                         | 403      |   |                 | $      | 8,756    |   |
| Cash paid for interest                                                                          | 44,323               |          |        | 68,311     |   |
| See Notes to Consolidated Financial Statements.                                                 |                           |               |        |

----

----

----

----

----

|                                                                                                                                                                                          |                |                 |                        |               |        |                 |        |  |  |  |  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|-----------------|------------------------|---------------|--------|-----------------|--------|--|--|--|--|
|                                                                                                                                                                                          | June 30, 2020  |                 | December 31, 2019 |
|                                                                                                                                                                                          | (in thousands) |                 |                        |
| Available-for-Sale securities:                                                                                                                                                       |                |                 |                        |
| Fixed maturities, at fair value (net of allowance for credit losses: 2020, nil; amortized cost: 2020, $7,140,406; 2019, $7,362,814)                                      | $              | 7,157,517  |                   |               | $      | 7,376,772  |   |
| Commercial mortgage loans and syndicated loans, at cost (net of allowance for credit losses: 2020, $3,228; 2019, $3,022; fair value: 2020, $267,165; 2019, $272,454) | 272,556   |            |                        | 269,859  |   |
| Equity securities, at fair value (cost: 2020, $299; 2019, $299)                                                                                                                  | 189       |            |                        | 188      |   |
| Certificate loans — secured by certificate reserves, at cost, which approximates fair value                                                                                        | 233       |            |                        | 216      |   |
| Total                                                                                                                                                                                    | $              | 7,430,495  |                   |               | $      | 7,647,035  |   |

|                                        |  |                     |                 |                        |              |                         |              |                             |        |            |               |        |  |                 |               |        |  |   |                 |        |  |  |  |  |  |  |  |  |  |  |  |  |
|----------------------------------------|--|---------------------|-----------------|------------------------|--------------|-------------------------|--------------|-----------------------------|--------|------------|---------------|--------|--|-----------------|---------------|--------|--|---|-----------------|--------|--|--|--|--|--|--|--|--|--|--|--|--|
| Description of Securities    |  | June 30, 2020       |                 |                        |              |                         |              |                             |        |            |
|                                        |  | Amortized Cost |                 | Gross Unrealized Gains |              | Gross Unrealized Losses |              | Allowance for Credit Losses |        | Fair Value |
|                                   |  | (in thousands) |                 |                        |              |                         |              |                             |        |            |
| Residential mortgage backed securities |  | $                   | 2,968,565  |                   |              | $                       | 38,800  |                        |        | $          | (6,572)       |   |  | $               | —  |   |  | $ | 3,000,793  |   |
| Corporate debt securities              |  | 490,792        |            |                        | 10,939  |                    |              | —                |   |            | —  |   |  | 501,731    |          |
| Commercial mortgage backed securities  |  | 1,474,104      |            |                        | 6,695   |                    |              | (27,926)                    |   |            | —  |   |  | 1,452,873  |          |
| Asset backed securities                |  | 723,719        |            |                        | 2,348   |                    |              | (8,303)                     |   |            | —  |   |  | 717,764    |          |
| State and municipal obligations        |  | 19,495         |            |                        | 299     |                    |              | —                |   |            | —  |   |  | 19,794     |          |
| U.S. government and agency obligations |  | 1,463,731      |            |                        | 833     |                    |              | (2)                         |   |            | —  |   |  | 1,464,562  |          |
| Total                                  |  | $                   | 7,140,406  |                   |              | $                       | 59,914  |                        |        | $          | (42,803)      |   |  | $               | —  |   |  | $ | 7,157,517  |   |

|                                        |  |                        |                 |                        |             |                         |              |            |        |   |                 |        |  |   |                 |        |  |  |  |  |  |  |  |  |  |  |
|----------------------------------------|--|------------------------|-----------------|------------------------|-------------|-------------------------|--------------|------------|--------|---|-----------------|--------|--|---|-----------------|--------|--|--|--|--|--|--|--|--|--|--|
| Description of Securities    |  | December 31, 2019 |                 |                        |             |                         |              |            |
|                                        |  | Amortized Cost    |                 | Gross Unrealized Gains |             | Gross Unrealized Losses |              | Fair Value |
|                                   |  | (in thousands)    |                 |                        |             |                         |              |            |
| Residential mortgage backed securities |  | $                      | 3,052,502  |                   |             | $                       | 16,238  |       |        | $ | (9,022)         |   |  | $ | 3,059,718  |   |
| Corporate debt securities              |  | 519,365           |            |                        | 5,580  |                    |              | (108)      |   |   | 524,837    |   |
| Commercial mortgage backed securities  |  | 1,452,823         |            |                        | 1,017  |                    |              | (2,949)    |   |   | 1,450,891  |   |
| Asset backed securities                |  | 627,380           |            |                        | 3,485  |                    |              | (1,162)    |   |   | 629,703    |   |
| State and municipal obligations        |  | 32,622            |            |                        | 223    |                    |              | (105)      |   |   | 32,740     |   |
| U.S. government and agency obligations |  | 1,678,122         |            |                        | 762    |                    |              | (1)        |   |   | 1,678,883  |   |
| Total                                  |  | $                      | 7,362,814  |                   |             | $                       | 27,305  |       |        | $ | (13,347)        |   |  | $ | 7,376,772  |   |

----

|                        |  |                                                   |                 |                 |               |                                  |                 |                        |        |                 |               |                                  |   |                 |        |  |               |                 |        |  |           |   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|------------------------|--|---------------------------------------------------|-----------------|-----------------|---------------|----------------------------------|-----------------|------------------------|--------|-----------------|---------------|----------------------------------|---|-----------------|--------|--|---------------|-----------------|--------|--|-----------|---|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|
| Ratings                |  | June 30, 2020                                     |                 |                 |               |                                  |                 | December 31, 2019 |        |                 |               |                                  |
|                        |  | Amortized Cost                                    |                 | Fair Value |               | Percent of Total Fair Value |                 | Amortized Cost         |        | Fair Value |               | Percent of Total Fair Value |
|                   |  | (in thousands, except percentages) |                 |                 |               |                                  |                 |                        |        |                 |               |                                  |
| AAA                    |  | $                                                 | 6,215,198  |            |               | $                                | 6,218,102  |                   |        | 87         | %             |                                  | $ | 6,551,393  |   |  | $             | 6,554,916  |   |  | 89   | % |
| AA                     |  | 273,967                                      |            |                 | 274,774  |                             |                 | 4                 |   |                 | 127,621  |                             |   | 128,753    |   |  | 2        |            |
| A                      |  | 302,779                                      |            |                 | 307,750  |                             |                 | 4                 |   |                 | 289,553  |                             |   | 293,204    |   |  | 4        |            |
| BBB                    |  | 326,884                                      |            |                 | 335,473  |                             |                 | 5                 |   |                 | 381,044  |                             |   | 386,791    |   |  | 5        |            |
| Below investment grade |  | 21,578                                       |            |                 | 21,418   |                             |                 | —           |   |                 | 13,203   |                             |   | 13,108     |   |  | —  |            |
| Total fixed maturities |  | $                                                 | 7,140,406  |            |               | $                                | 7,157,517  |                   |        | 100        | %             |                                  | $ | 7,362,814  |   |  | $             | 7,376,772  |   |  | 100  | % |

|                                        |  |                                                                      |        |            |               |                       |        |                                  |        |            |               |                       |          |                      |        |            |               |                       |  |          |         |        |               |           |        |          |        |                 |        |  |   |          |        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|----------------------------------------|--|----------------------------------------------------------------------|--------|------------|---------------|-----------------------|--------|----------------------------------|--------|------------|---------------|-----------------------|----------|----------------------|--------|------------|---------------|-----------------------|--|----------|---------|--------|---------------|-----------|--------|----------|--------|-----------------|--------|--|---|----------|--------|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|
| Description of Securities         |  | June 30, 2020                                                        |        |            |               |                       |        |                                  |        |            |               |                       |          |                      |        |            |               |                       |
|                                        |  | Less than 12 months                                   |        |            |               |                       |        | 12 months or more |        |            |               |                       |          | Total                |        |            |               |                       |
|                                        |  | Number of Securities                                                 |        | Fair Value |               | Unrealized Losses (1) |        | Number of Securities             |        | Fair Value |               | Unrealized Losses (1) |          | Number of Securities |        | Fair Value |               | Unrealized Losses (1) |
|                                        |  | (in thousands, except number of securities) |        |            |               |                       |        |                                  |        |            |               |                       |          |                      |        |            |               |                       |
| Residential mortgage backed securities |  | 74                                                              |   |            | $             | 562,343          |   |                                  | $      | (3,584)    |          |                       | 64  |                 |        | $          | 531,932  |                  |  | $        | (2,988) |   |               | 138  |   |          | $      | 1,094,275  |   |  | $ | (6,572)  |   |
| Commercial mortgage backed securities  |  | 29                                                              |   |            | 681,156  |                  |        | (26,016)                         |   |            | 7        |                  |          | 136,931         |   |            | (1,910)       |                  |  | 36  |    |        | 818,087  |      |        | (27,926) |   |
| Asset backed securities                |  | 33                                                              |   |            | 339,391  |                  |        | (4,463)                          |   |            | 9        |                  |          | 147,029         |   |            | (3,840)       |                  |  | 42  |    |        | 486,420  |      |        | (8,303)  |   |
|                                        |  |                                                                      |        |            |               |                       |        |                                  |        |            |               |                       |          |                      |        |            |               |                       |
| U.S. government and agency obligations |  | 2                                                               |   |            | 124,907  |                  |        | (2)                              |   |            | —  |                  |          | —         |   |            | —  |                  |  | 2   |    |        | 124,907  |      |        | (2)      |   |
| Total                                  |  | 138                                                             |   |            | $             | 1,707,797        |   |                                  | $      | (34,065)   |          |                       | 80  |                 |        | $          | 815,892  |                  |  | $        | (8,738) |   |               | 218  |   |          | $      | 2,523,689  |   |  | $ | (42,803) |   |

|                                        |  |                                                                      |        |            |               |                   |        |                                  |        |            |               |                   |           |                      |        |            |                 |                   |  |          |         |        |                 |           |        |         |        |                 |        |  |   |          |        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|----------------------------------------|--|----------------------------------------------------------------------|--------|------------|---------------|-------------------|--------|----------------------------------|--------|------------|---------------|-------------------|-----------|----------------------|--------|------------|-----------------|-------------------|--|----------|---------|--------|-----------------|-----------|--------|---------|--------|-----------------|--------|--|---|----------|--------|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|
| Description of Securities         |  | December 31, 2019                                               |        |            |               |                   |        |                                  |        |            |               |                   |           |                      |        |            |                 |                   |
|                                        |  | 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 |  | 64                                                              |   |            | $             | 987,968      |   |                                  | $      | (3,731)    |          |                   | 90   |                 |        | $          | 776,834    |              |  | $        | (5,291) |   |                 | 154  |   |         | $      | 1,764,802  |   |  | $ | (9,022)  |   |
| Corporate debt securities              |  | 1                                                               |   |            | 1,201    |              |        | —                     |   |            | 8        |              |           | 52,348          |   |            | (108)           |              |  | 9   |    |        | 53,549     |      |        | (108)   |   |
| Commercial mortgage backed securities  |  | 33                                                              |   |            | 891,414  |              |        | (1,662)                          |   |            | 24       |              |           | 232,184         |   |            | (1,287)         |              |  | 57  |    |        | 1,123,598  |      |        | (2,949) |   |
| Asset backed securities                |  | 8                                                               |   |            | 59,048   |              |        | (95)                             |   |            | 14       |              |           | 183,116         |   |            | (1,067)         |              |  | 22  |    |        | 242,164    |      |        | (1,162) |   |
| State and municipal obligations        |  | —                                                         |   |            | —  |              |        | —                     |   |            | 1        |              |           | 2,705           |   |            | (105)           |              |  | 1   |    |        | 2,705      |      |        | (105)   |   |
| U.S. government and agency obligations |  | 2                                                               |   |            | 99,606   |              |        | (1)                              |   |            | —  |              |           | —         |   |            | —    |              |  | 2   |    |        | 99,606     |      |        | (1)     |   |
| Total                                  |  | 108                                                             |   |            | $             | 2,039,237    |   |                                  | $      | (5,489)    |          |                   | 137  |                 |        | $          | 1,247,187  |              |  | $        | (7,858) |   |                 | 245  |   |         | $      | 3,286,424  |   |  | $ | (13,347) |   |

----

|                                                                             |                                                  |              |                          |           |                                                                                                                          |              |              |        |   |              |        |     |  |  |  |  |  |  |  |  |
|-----------------------------------------------------------------------------|--------------------------------------------------|--------------|--------------------------|-----------|--------------------------------------------------------------------------------------------------------------------------|--------------|--------------|--------|---|--------------|--------|-----|--|--|--|--|--|--|--|--|
|                                                                             | Net Unrealized Gains (Losses) on Securities |              | Deferred Income Tax |           | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Gains (Losses) on Securities |              |
|                                                                             | (in thousands)                              |              |                          |           |                                                                                                                          |              |
| Balance at January 1, 2019                                                  | $                                                | (46,958)     |                     |           | $                                                                                                                        | 13,127  |         |        | $ | (33,831)     |   |     |
| Net unrealized gains (losses) on securities arising during the period (1)   | 68,922                                      |         |                          | (16,731)  |                                                                                                                     |              | 52,191  |   |   |
| Reclassification of net (gains) losses on securities included in net income | (88)                                             |         |                          | 18   |                                                                                                                     |              | (70)         |   |   |
| Balance at June 30, 2019                                                    | $                                                | 21,876  |                     |           | $                                                                                                                        | (3,586)      |         |        | $ | 18,290  |   | (2) |
|                                                                             |                                                  |              |                          |           |                                                                                                                          |              |
| Balance at January 1, 2020                                                  | $                                                | 13,958  |                     |           | $                                                                                                                        | (1,695)      |         |        | $ | 12,263  |   |     |
| Net unrealized gains (losses) on securities arising during the period (1)   | 3,786                                       |         |                          | (892)     |                                                                                                                     |              | 2,894   |   |   |
| Reclassification of net (gains) losses on securities included in net income | (633)                                            |         |                          | 133  |                                                                                                                     |              | (500)        |   |   |
| Balance at June 30, 2020                                                    | $                                                | 17,111  |                     |           | $                                                                                                                        | (2,454)      |         |        | $ | 14,657  |   |     |

|                       |                             |           |        |      |                           |           |               |        |   |           |        |  |   |           |        |  |  |  |  |  |  |  |  |
|-----------------------|-----------------------------|-----------|--------|------|---------------------------|-----------|---------------|--------|---|-----------|--------|--|---|-----------|--------|--|--|--|--|--|--|--|--|
|                       | Three Months Ended June 30, |           |        |      | Six Months Ended June 30, |           |               |
|                       | 2020                        |           | 2019   |      | 2020                      |           | 2019          |
|                       | (in thousands)              |           |        |      |                           |           |               |
| Gross realized gains  | $                           | 392  |   |      | $                         | 159  |          |        | $ | 633  |   |  | $ | 159  |   |
| Gross realized losses | —                |      |        | (38) |                      |           | —  |   |   | (71)      |   |
| Total                 | $                           | 392  |   |      | $                         | 121  |          |        | $ | 633  |   |  | $ | 88   |   |

----

|                                        |                     |                 |            |                 |        |                 |        |  |  |  |  |
|----------------------------------------|---------------------|-----------------|------------|-----------------|--------|-----------------|--------|--|--|--|--|
|                                   | Amortized Cost |                 | Fair Value |
|                                        | (in thousands) |                 |            |
| Due within one year                    | $                   | 1,706,473  |       |                 | $      | 1,709,991  |   |
| Due after one year through five years  | 266,737        |            |            | 275,208    |   |
| Due after five years through 10 years  | 808            |            |            | 888        |   |
| Due after 10 years                     | —        |            |            | —    |   |
|                                   | 1,974,018      |            |            | 1,986,087  |   |
| Residential mortgage backed securities | 2,968,565      |            |            | 3,000,793  |   |
| Commercial mortgage backed securities  | 1,474,104      |            |            | 1,452,873  |   |
| Asset backed securities                | 723,719        |            |            | 717,764    |   |
| Total                                  | $                   | 7,140,406  |       |                 | $      | 7,157,517  |   |

|                                                                          |                     |             |        |  |  |
|--------------------------------------------------------------------------|---------------------|-------------|--------|--|--|
|                                                                          | Commercial Loans    |
|                                                                          | (in thousands) |
| Balance, December 31, 2019 (1)                                      | $                   | 3,022  |   |
| Cumulative effect of adoption of current expected credit losses guidance | (771)               |        |
| Balance, January 1, 2020                                                 | 2,251          |        |
| Provisions                                                               | 977            |        |
|                                                                          |                     |
|                                                                          |                     |
| Balance, June 30, 2020                                                   | $                   | 3,228  |   |

|                          |                     |             |        |  |  |
|--------------------------|---------------------|-------------|--------|--|--|
|                     | Commercial Loans    |
|                          | (in thousands) |
| Balance, January 1, 2019 | $                   | 3,120  |   |
|                          |                     |
| Charge-offs              | (98)                |        |
|                          |                     |
| Balance, June 30, 2019   | $                   | 3,022  |   |

----

|                     |  |                     |               |        |               |        |               |               |        |      |               |        |  |               |               |        |               |        |               |              |        |   |               |        |  |   |               |        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|---------------------|--|---------------------|---------------|--------|---------------|--------|---------------|---------------|--------|------|---------------|--------|--|---------------|---------------|--------|---------------|--------|---------------|--------------|--------|---|---------------|--------|--|---|---------------|--------|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|
| Loan-to-Value Ratio |  | 2020                |               | 2019   |               | 2018   |               | 2017          |        | 2016 |               | Prior  |  | Total         |
|                     |  | (in thousands) |               |        |               |        |               |               |        |      |               |        |  |               |
| > 100%          |  | $                   | —  |   |               | $      | —  |          |        | $    | —  |   |  | $             | —  |   |               | $      | —  |         |        | $ | —  |   |  | $ | —  |   |
| 80% - 100%          |  | —        |          |        | —  |   |               | 3,376    |   |      | —  |   |  | —  |          |        | —  |   |               | 3,376   |   |
| 60% - 80%           |  | 4,279          |          |        | 13,130   |   |               | —  |   |      | 3,087    |   |  | —  |          |        | 3,715    |   |               | 24,211  |   |
| 40% - 60%           |  | —        |          |        | 6,362    |   |               | 3,581    |   |      | 7,872    |   |  | 1,402    |          |        | 8,177    |   |               | 27,394  |   |
| < 40%           |  | —        |          |        | 2,736    |   |               | 7,861    |   |      | 11,950   |   |  | 5,867    |          |        | 40,758   |   |               | 69,172  |   |
| Total               |  | $                   | 4,279    |   |               | $      | 22,228   |          |        | $    | 14,818   |   |  | $             | 22,909   |   |               | $      | 7,269    |         |        | $ | 52,650   |   |  | $ | 124,153  |   |

|                                       |                     |               |                        |               |               |               |                        |        |         |           |        |         |   |  |  |  |  |  |  |  |  |  |  |
|---------------------------------------|---------------------|---------------|------------------------|---------------|---------------|---------------|------------------------|--------|---------|-----------|--------|---------|---|--|--|--|--|--|--|--|--|--|--|
|                                  | Loans               |               |                        |               | Percentage    |               |                        |
|                                       | June 30, 2020       |               | December 31, 2019 |               | June 30, 2020 |               | December 31, 2019 |
|                                       | (in thousands) |               |                        |               |          |               |                   |
| East North Central                    | $                   | 6,181    |                   |               | $             | 6,424    |                   |        | 5  | %         |        | 5  | % |
| East South Central                    | 3,943          |          |                        | 4,266    |          |               | 3                 |   |         | 4    |   |
| Middle Atlantic                       | 13,522         |          |                        | 15,495   |          |               | 11                |   |         | 12   |   |
| Mountain                              | 13,196         |          |                        | 13,556   |          |               | 10                |   |         | 11   |   |
| New England                           | 7,088          |          |                        | 7,191    |          |               | 6                 |   |         | 6    |   |
| Pacific                               | 42,485         |          |                        | 39,342   |          |               | 34                |   |         | 31   |   |
| South Atlantic                        | 18,181         |          |                        | 18,835   |          |               | 15                |   |         | 15   |   |
| West North Central                    | 7,041          |          |                        | 7,396    |          |               | 6                 |   |         | 6    |   |
| West South Central                    | 12,516         |          |                        | 12,876   |          |               | 10                |   |         | 10   |   |
|                                  | 124,153        |          |                        | 125,381  |          |               | 100               | %      |         | 100  | %      |
| Less: allowance for credit losses | 904            |          |                        | 2,341    |          |          |                        |        |         |
| Total                                 | $                   | 123,249  |                   |               | $             | 123,040  |                   |        |         |           |        |

----

|                                       |                     |               |                        |               |               |               |                        |        |          |               |        |          |   |  |  |  |  |  |  |  |  |  |  |
|---------------------------------------|---------------------|---------------|------------------------|---------------|---------------|---------------|------------------------|--------|----------|---------------|--------|----------|---|--|--|--|--|--|--|--|--|--|--|
|                                  | Loans               |               |                        |               | Percentage    |               |                        |
|                                       | June 30, 2020       |               | December 31, 2019 |               | June 30, 2020 |               | December 31, 2019 |
|                                       | (in thousands) |               |                        |               |          |               |                   |
| Apartments                            | $                   | 31,323   |                   |               | $             | 32,162   |                   |        | 25  | %             |        | 25  | % |
| Industrial                            | 27,002         |          |                        | 24,969   |          |               | 22                |   |          | 20       |   |
| Mixed use                             | 11,821         |          |                        | 12,105   |          |               | 10                |   |          | 10       |   |
| Office                                | 14,645         |          |                        | 14,952   |          |               | 12                |   |          | 12       |   |
| Retail                                | 38,454         |          |                        | 39,719   |          |               | 31                |   |          | 32       |   |
| Hotel                                 | 374            |          |                        | 432      |          |               | —           |   |          | —  |   |
| Other                                 | 534            |          |                        | 1,042    |          |               | —           |   |          | 1        |   |
|                                  | 124,153        |          |                        | 125,381  |          |               | 100               | %      |          | 100      | %      |
| Less: allowance for credit losses | 904            |          |                        | 2,341    |          |          |                        |        |          |
| Total                                 | $                   | 123,249  |                   |               | $             | 123,040  |                   |        |          |               |        |

|                      |  |                     |               |        |              |        |               |              |        |      |              |        |  |             |               |        |              |        |               |              |        |   |               |        |  |   |               |        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|----------------------|--|---------------------|---------------|--------|--------------|--------|---------------|--------------|--------|------|--------------|--------|--|-------------|---------------|--------|--------------|--------|---------------|--------------|--------|---|---------------|--------|--|---|---------------|--------|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|
| Internal Risk Rating |  | 2020                |               | 2019   |              | 2018   |               | 2017         |        | 2016 |              | Prior  |  | Total       |
|                      |  | (in thousands) |               |        |              |        |               |              |        |      |              |        |  |             |
| Risk 5               |  | $                   | —  |   |              | $      | —  |         |        | $    | 295     |   |  | $           | —  |   |              | $      | —  |         |        | $ | —  |   |  | $ | 295      |   |
| Risk 4               |  | —        |          |        | 1,712   |   |               | 982     |   |      | 2,186   |   |  | 300    |          |        | 1,891   |   |               | 7,071   |   |
| Risk 3               |  | 1,247          |          |        | 2,450   |   |               | 3,292   |   |      | 7,357   |   |  | 2,182  |          |        | 4,888   |   |               | 21,416  |   |
| Risk 2               |  | 2,655          |          |        | 11,985  |   |               | 16,682  |   |      | 15,519  |   |  | 5,832  |          |        | 13,958  |   |               | 66,631  |   |
| Risk 1               |  | 2,829          |          |        | 7,469   |   |               | 13,855  |   |      | 15,880  |   |  | 5,064  |          |        | 11,121  |   |               | 56,218  |   |
| Total                |  | $                   | 6,731    |   |              | $      | 23,616   |         |        | $    | 35,106  |   |  | $           | 40,942   |   |              | $      | 13,378   |         |        | $ | 31,858   |   |  | $ | 151,631  |   |

----

|                                               |                     |                 |              |                 |              |                 |               |        |   |                 |        |  |   |                 |        |  |  |  |  |  |  |  |  |
|-----------------------------------------------|---------------------|-----------------|--------------|-----------------|--------------|-----------------|---------------|--------|---|-----------------|--------|--|---|-----------------|--------|--|--|--|--|--|--|--|--|
|                                          | June 30, 2020       |                 |              |                 |              |                 |               |
|                                               | Level 1        |                 | Level 2 |                 | Level 3 |                 | Total         |
|                                               | (in thousands) |                 |              |                 |              |                 |               |
| Assets                                        |                |                 |              |                 |              |                 |               |
| Cash equivalents                              | $                   | 149,994    |         |                 | $            | 461,865    |          |        | $ | —    |   |  | $ | 611,859    |   |
| Available-for-Sale securities:            |                     |                 |         |                 |         |                 |          |
| Residential mortgage backed securities        | —        |            |              | 3,000,793  |         |                 | —  |   |   | 3,000,793  |   |
| Corporate debt securities                     | —        |            |              | 488,689    |         |                 | 13,042   |   |   | 501,731    |   |
| Commercial mortgage backed securities         | —        |            |              | 1,452,873  |         |                 | —  |   |   | 1,452,873  |   |
| Asset backed securities                       | —        |            |              | 713,514    |         |                 | 4,250    |   |   | 717,764    |   |
| State and municipal obligations               | —        |            |              | 19,794     |         |                 | —  |   |   | 19,794     |   |
| U.S. government and agency obligations        | 1,464,562      |            |              | —    |         |                 | —  |   |   | 1,464,562  |   |
| Total Available-for-Sale securities           | 1,464,562      |            |              | 5,675,663  |         |                 | 17,292   |   |   | 7,157,517  |   |
| Equity securities                             | —        |            |              | 189        |         |                 | —  |   |   | 189        |   |
| Equity derivative contracts                   | 47             |            |              | 34,581     |         |                 | —  |   |   | 34,628     |   |
| Total assets at fair value                    | $                   | 1,614,603  |         |                 | $            | 6,172,298  |          |        | $ | 17,292     |   |  | $ | 7,804,193  |   |
|                                               |                     |                 |              |                 |              |                 |               |
| Liabilities                                   |                |                 |              |                 |              |                 |               |
| Stock market certificate embedded derivatives | $                   | —    |         |                 | $            | 8,609      |          |        | $ | —    |   |  | $ | 8,609      |   |
| Equity derivative contracts                   | —        |            |              | 27,117     |         |                 | —  |   |   | 27,117     |   |
| Total liabilities at fair value               | $                   | —    |         |                 | $            | 35,726     |          |        | $ | —    |   |  | $ | 35,726     |   |

----

|                                               |                        |                 |              |                 |              |                 |               |        |   |                 |        |  |   |                 |        |  |  |  |  |  |  |  |  |
|-----------------------------------------------|------------------------|-----------------|--------------|-----------------|--------------|-----------------|---------------|--------|---|-----------------|--------|--|---|-----------------|--------|--|--|--|--|--|--|--|--|
|                                          | December 31, 2019 |                 |              |                 |              |                 |               |
|                                               | Level 1           |                 | Level 2 |                 | Level 3 |                 | Total         |
|                                               | (in thousands)    |                 |              |                 |              |                 |               |
| Assets                                        |                   |                 |              |                 |              |                 |               |
| Cash equivalents                              | $                      | —    |         |                 | $            | 365,867    |          |        | $ | —    |   |  | $ | 365,867    |   |
| Available-for-Sale securities:            |                        |                 |              |                 |              |                 |          |
| Residential mortgage backed securities        | —           |            |              | 3,059,718  |         |                 | —  |   |   | 3,059,718  |   |
| Corporate debt securities                     | —           |            |              | 510,567    |         |                 | 14,270   |   |   | 524,837    |   |
| Commercial mortgage backed securities         | —           |            |              | 1,450,891  |         |                 | —  |   |   | 1,450,891  |   |
| Asset backed securities                       | —           |            |              | 624,869    |         |                 | 4,834    |   |   | 629,703    |   |
| State and municipal obligations               | —           |            |              | 32,740     |         |                 | —  |   |   | 32,740     |   |
| U.S. government and agency obligations        | 1,678,883         |            |              | —    |         |                 | —  |   |   | 1,678,883  |   |
| Total Available-for-Sale securities           | 1,678,883         |            |              | 5,678,785  |         |                 | 19,104   |   |   | 7,376,772  |   |
| Equity securities                             | —           |            |              | 116        |         |                 | 72       |   |   | 188        |   |
| Equity derivative contracts                   | 6                 |            |              | 56,038     |         |                 | —  |   |   | 56,044     |   |
| Total assets at fair value                    | $                      | 1,678,889  |         |                 | $            | 6,100,806  |          |        | $ | 19,176     |   |  | $ | 7,798,871  |   |
|                                               |                        |                 |              |                 |              |                 |               |
| Liabilities                                   |                   |                 |              |                 |              |                 |               |
| Stock market certificate embedded derivatives | $                      | —    |         |                 | $            | 13,961     |          |        | $ | —    |   |  | $ | 13,961     |   |
| Equity derivative contracts                   | —           |            |              | 43,598     |         |                 | —  |   |   | 43,598     |   |
| Total liabilities at fair value               | $                      | —    |         |                 | $            | 57,559     |          |        | $ | —    |   |  | $ | 57,559     |   |

|                                                                                                                    |                               |              |                         |          |        |             |         |        |     |              |        |     |  |  |  |  |  |  |  |  |  |  |
|--------------------------------------------------------------------------------------------------------------------|-------------------------------|--------------|-------------------------|----------|--------|-------------|---------|--------|-----|--------------|--------|-----|--|--|--|--|--|--|--|--|--|--|
|                                                                                                                    | Available-for-Sale Securities |              |                         |          |        |             |         |        |
|                                                                                                                    | Corporate Debt Securities     |              | Asset Backed Securities |          | Total  |             |         |        |
|                                                                                                                    | (in thousands)                |              |                         |          |        |             |         |        |
| Balance, April 1, 2020                                                                                             | $                             | 12,988  |                    |          | $      | 4,834  |    |        | $   | 17,822  |   |     |  |  |
| Total gains (losses) included in:                                                                              |                               |              |                         |          |        |             |         |        |
| Net income                                                                                                         | (10)                          |         |                         | 12  |   |             | 2  |   | (1) |              |        |
| Other comprehensive income (loss)                                                                                  | 64                       |         |                         | (596)    |   |             | (532)   |   |     |              |        |
|                                                                                                                    |                               |              |                         |          |        |             |         |        |
|                                                                                                                    |                               |              |                         |          |        |             |         |        |
|                                                                                                                    |                               |              |                         |          |        |             |         |        |
|                                                                                                                    |                               |              |                         |          |        |             |         |        |
| Balance, June 30, 2020                                                                                             | $                             | 13,042  |                    |          | $      | 4,250  |    |        | $   | 17,292  |   |     |  |  |
|                                                                                                                    |                               |              |                         |          |        |             |         |        |
| Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2020                        | $                             | (10)         |                    |          | $      | 12     |    |        | $   | 2       |   | (1) |  |  |
| Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2020 | $                             | 64      |                    |          | $      | (596)       |    |        | $   | (532)        |   |     |  |  |

----

|                                                                                             |                                         |               |                           |               |        |              |                   |        |     |               |        |     |   |               |        |     |  |  |  |  |  |  |  |  |  |  |
|---------------------------------------------------------------------------------------------|-----------------------------------------|---------------|---------------------------|---------------|--------|--------------|-------------------|--------|-----|---------------|--------|-----|---|---------------|--------|-----|--|--|--|--|--|--|--|--|--|--|
|                                                                                             | Available-for-Sale Securities           |               |                           |               |        |              | Equity Securities |        |
|                                                                                             | Residential Mortgage Backed  Securities |               | Corporate Debt Securities |               | Total  |              |                   |        |
|                                                                                             | (in thousands)                          |               |                           |               |        |              |                   |        |
| Balance, April 1, 2019                                                                      | $                                       | 19,391   |                      |               | $      | 32,055  |              |        | $   | 51,446   |   |     | $ | —  |   |     |
| Total gains (losses) included in:                                                       |                                         |               |                           |               |        |              |                   |        |
| Net income                                                                                  | —                            |          |                           | (16)          |   |              | (16)              |   | (1) | 3        |   | (1) |
| Other comprehensive income (loss)                                                           | 12                                 |          |                           | 168      |   |              | 180          |   |     | —  |   |     |
| Purchases                                                                                   | 72,883                             |          |                           | —  |   |              | 72,883       |   |     | —  |   |     |
| Settlements                                                                                 | (1,615)                                 |          |                           | (13,000)      |   |              | (14,615)          |   |     | —  |   |     |
| Transfers into Level 3                                                                      | —                            |          |                           | —  |   |              | —      |   |     | 118      |   |     |
| Transfers out of Level 3                                                                    | (3,226)                                 |          |                           | —  |   |              | (3,226)           |   |     | —  |   |     |
| Balance, June 30, 2019                                                                      | $                                       | 87,445   |                      |               | $      | 19,207  |              |        | $   | 106,652  |   |     | $ | 121      |   |     |
|                                                                                             |                                         |               |                           |               |        |              |                   |        |
| Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2019 | $                                       | —  |                      |               | $      | (16)         |              |        | $   | (16)          |   | (1) | $ | 3        |   | (1) |
|                                                                                             |                                         |               |                           |               |        |              |                   |        |

|                                                                                                                    |                               |              |                         |               |        |             |                   |        |     |               |        |     |   |               |        |  |  |  |  |  |  |  |  |  |  |  |
|--------------------------------------------------------------------------------------------------------------------|-------------------------------|--------------|-------------------------|---------------|--------|-------------|-------------------|--------|-----|---------------|--------|-----|---|---------------|--------|--|--|--|--|--|--|--|--|--|--|--|
|                                                                                                                    | Available-for-Sale Securities |              |                         |               |        |             | Equity Securities |        |
|                                                                                                                    | Corporate Debt Securities     |              | Asset Backed Securities |               | Total  |             |                   |        |
|                                                                                                                    | (in thousands)                |              |                         |               |        |             |                   |        |
| Balance, January 1, 2020                                                                                           | $                             | 14,270  |                    |               | $      | 4,834  |              |        | $   | 19,104   |   |     | $ | 72       |   |  |
| Total gains (losses) included in:                                                                              |                               |              |                         |               |        |             |                   |        |
| Net income                                                                                                         | (20)                          |         |                         | 22       |   |             | 2            |   | (1) | —  |   |     |
| Other comprehensive income (loss)                                                                                  | 92                       |         |                         | (606)         |   |             | (514)             |   |     | —  |   |     |
|                                                                                                                    |                               |              |                         |               |        |             |                   |        |
| Settlements                                                                                                        | (1,300)                       |         |                         | —  |   |             | (1,300)           |   |     | —  |   |     |
|                                                                                                                    |                               |              |                         |               |        |             |                   |        |
| Transfers out of Level 3                                                                                           | —                  |         |                         | —  |   |             | —      |   |     | (72)          |   |     |
| Balance, June 30, 2020                                                                                             | $                             | 13,042  |                    |               | $      | 4,250  |              |        | $   | 17,292   |   |     | $ | —  |   |  |
|                                                                                                                    |                               |              |                         |               |        |             |                   |        |
| Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2020                        | $                             | (20)         |                    |               | $      | 22     |              |        | $   | 2        |   | (1) | $ | —  |   |  |
| Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets held at June 30, 2020 | $                             | 92      |                    |               | $      | (606)       |              |        | $   | (514)         |   |     | $ | —  |   |  |

|                                                                                             |                                       |               |                           |               |                                       |              |               |        |                   |               |        |     |               |               |        |     |   |               |        |     |  |  |  |  |  |  |  |  |  |  |  |  |
|---------------------------------------------------------------------------------------------|---------------------------------------|---------------|---------------------------|---------------|---------------------------------------|--------------|---------------|--------|-------------------|---------------|--------|-----|---------------|---------------|--------|-----|---|---------------|--------|-----|--|--|--|--|--|--|--|--|--|--|--|--|
|                                                                                             | Available-for-Sale Securities         |               |                           |               |                                       |              |               |        | Equity Securities |               |
|                                                                                             | ResidentialMortgage Backed Securities |               | Corporate Debt Securities |               | Commercial Mortgage Backed Securities |              | Total         |        |                   |               |
|                                                                                             | (in thousands)                        |               |                           |               |                                       |              |               |        |                   |               |
| Balance, January 1, 2019                                                                    | $                                     | 62,588   |                      |               | $                                     | 41,842  |          |        | $                 | 19,787   |   |     | $             | 124,217  |   |     | $ | —  |   |     |
| Total gains (losses) included in:                                                       |                                       |               |                           |               |                                       |              |               |        |                   |               |
| Net income                                                                                  | 22                               |          |                           | (31)          |                                  |              | —  |   |                   | (9)           |   | (1) | 3        |          | (1)    |
| Other comprehensive income (loss)                                                           | 19                               |          |                           | 396      |                                  |              | —  |   |                   | 415      |   |     | —  |          |        |
| Purchases                                                                                   | 72,883                           |          |                           | —  |                                  |              | —  |   |                   | 72,883   |   |     | —  |          |        |
| Settlements                                                                                 | (4,842)                               |          |                           | (23,000)      |                                  |              | —  |   |                   | (27,842)      |   |     | —  |          |        |
| Transfers into Level 3                                                                      | —                          |          |                           | —  |                                  |              | —  |   |                   | —  |   |     | 118      |          |        |
| Transfers out of Level 3                                                                    | (43,225)                              |          |                           | —  |                                  |              | (19,787)      |   |                   | (63,012)      |   |     | —  |          |        |
| Balance, June 30, 2019                                                                      | $                                     | 87,445   |                      |               | $                                     | 19,207  |          |        | $                 | —  |   |     | $             | 106,652  |   |     | $ | 121      |   |     |
|                                                                                             |                                       |               |                           |               |                                       |              |               |        |                   |               |
| Changes in unrealized gains (losses) in net income relating to assets held at June 30, 2019 | $                                     | —  |                      |               | $                                     | (31)         |          |        | $                 | —  |   |     | $             | (31)          |   | (1) | $ | 3        |   | (1) |
|                                                                                             |                                       |               |                           |               |                                       |              |               |        |                   |               |

----

|                                                   |                     |              |                          |  |                         |  |                                     |  |                  |  |      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|---------------------------------------------------|---------------------|--------------|--------------------------|--|-------------------------|--|-------------------------------------|--|------------------|--|------|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|
|                                              | June 30, 2020       |              |                          |  |                         |  |                                     |  |                  |
|                                                   | Fair Value     |              | Valuation Technique |  | Unobservable Input |  | Range                               |  | Weighted Average |
|                                                   | (in thousands) |              |                          |  |                         |  |                                     |  |                  |
| Corporate debt securities    (private placements) | $                   | 13,038  |                     |  | Discounted cash flow    |  | Yield/spread to U.S. Treasuries |  | 1.5% - 1.7%      |  | 1.6% |

|                                                   |                        |              |                          |  |                         |  |                                     |  |                  |  |      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|---------------------------------------------------|------------------------|--------------|--------------------------|--|-------------------------|--|-------------------------------------|--|------------------|--|------|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|
|                                                   | December 31, 2019 |              |                          |  |                         |  |                                     |  |                  |
|                                                   | Fair Value        |              | Valuation Technique |  | Unobservable Input |  | Range                               |  | Weighted Average |
|                                                   | (in thousands)    |              |                          |  |                         |  |                                     |  |                  |
| Corporate debt securities    (private placements) | $                      | 14,267  |                     |  | Discounted cash flow    |  | Yield/spread to U.S. Treasuries |  | 0.9% - 1.1%      |  | 1.0% |

----

|                           |                     |                 |                 |               |              |               |               |        |       |               |        |  |               |                 |        |  |   |                 |        |  |  |  |  |  |  |  |  |  |  |
|---------------------------|---------------------|-----------------|-----------------|---------------|--------------|---------------|---------------|--------|-------|---------------|--------|--|---------------|-----------------|--------|--|---|-----------------|--------|--|--|--|--|--|--|--|--|--|--|
|                           | June 30, 2020       |                 |                 |               |              |               |               |        |       |
|                           | Carrying Value |                 | Fair Value |               |              |               |               |        |       |
|                           |                     |                 | Level 1    |               | Level 2 |               | Level 3  |        | Total |
|                           | (in thousands) |                 |                 |               |              |               |               |        |       |
| Financial Assets          |                     |                 |                 |               |              |               |               |        |       |
| Syndicated loans          | $                   | 149,307    |            |               | $            | —  |          |        | $     | 130,507  |   |  | $             | 11,777     |   |  | $ | 142,284    |   |
| Commercial mortgage loans | 123,249        |            |                 | —  |         |               | —  |   |       | 124,881  |   |  | 124,881  |            |
| Certificate loans         | 233            |            |                 | —  |         |               | 233      |   |       | —  |   |  | 233      |            |
| Financial Liabilities     |                     |                 |                 |               |              |               |               |        |       |
| Certificate reserves      | $                   | 7,442,470  |            |               | $            | —  |          |        | $     | —  |   |  | $             | 7,443,980  |   |  | $ | 7,443,980  |   |

|                           |                        |                 |                 |               |              |               |               |        |       |               |        |  |               |                 |        |  |   |                 |        |  |  |  |  |  |  |  |  |  |  |
|---------------------------|------------------------|-----------------|-----------------|---------------|--------------|---------------|---------------|--------|-------|---------------|--------|--|---------------|-----------------|--------|--|---|-----------------|--------|--|--|--|--|--|--|--|--|--|--|
|                           | December 31, 2019 |                 |                 |               |              |               |               |        |       |
|                           | Carrying Value    |                 | Fair Value |               |              |               |               |        |       |
|                           |                        |                 | Level 1    |               | Level 2 |               | Level 3  |        | Total |
|                           | (in thousands)    |                 |                 |               |              |               |               |        |       |
| Financial Assets          |                        |                 |                 |               |              |               |               |        |       |
| Syndicated loans          | $                      | 146,819    |            |               | $            | —  |          |        | $     | 140,294  |   |  | $             | 6,287      |   |  | $ | 146,581    |   |
| Commercial mortgage loans | 123,040           |            |                 | —  |         |               | —  |   |       | 125,873  |   |  | 125,873  |            |
| Certificate loans         | 216               |            |                 | —  |         |               | 216      |   |       | —  |   |  | 216      |            |
| Financial Liabilities     |                   |                 |            |               |         |               |          |        |       |
| Certificate reserves      | $                      | 7,508,362  |            |               | $            | —  |          |        | $     | —  |   |  | $             | 7,497,180  |   |  | $ | 7,497,180  |   |

----

|                  |                                    |              |                                                         |               |                                                                |               |                                                             |        |                 |               |            |  |               |          |        |          |        |         |        |  |   |           |        |  |  |  |  |  |  |  |  |  |  |  |  |
|------------------|------------------------------------|--------------|---------------------------------------------------------|---------------|----------------------------------------------------------------|---------------|-------------------------------------------------------------|--------|-----------------|---------------|------------|--|---------------|----------|--------|----------|--------|---------|--------|--|---|-----------|--------|--|--|--|--|--|--|--|--|--|--|--|--|
|                  | June 30, 2020                      |              |                                                         |               |                                                                |               |                                                             |        |                 |               |            |
|                  | 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              | $                                  | 34,581  |                                                    |               | $                                                              | —  |                                                        |        | $               | 34,581   |       |  | $             | (27,117) |   |          | $      | (6,903) |   |  | $ | 561  |   |
| Exchange-traded  | 47                            |         |                                                         | —  |                                                           |               | 47                                                     |   |                 | —  |       |  | —  |     |        | 47  |   |
| Total            | $                                  | 34,628  |                                                    |               | $                                                              | —  |                                                        |        | $               | 34,628   |       |  | $             | (27,117) |   |          | $      | (6,903) |   |  | $ | 608  |   |

|                  |                                    |              |                                                         |               |                                                                |               |                                                             |        |                 |               |            |  |               |          |        |         |        |          |        |  |   |           |        |  |  |  |  |  |  |  |  |  |  |  |  |
|------------------|------------------------------------|--------------|---------------------------------------------------------|---------------|----------------------------------------------------------------|---------------|-------------------------------------------------------------|--------|-----------------|---------------|------------|--|---------------|----------|--------|---------|--------|----------|--------|--|---|-----------|--------|--|--|--|--|--|--|--|--|--|--|--|--|
|                  | December 31, 2019             |              |                                                         |               |                                                                |               |                                                             |        |                 |               |            |
|                  | 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              | $                                  | 56,038  |                                                    |               | $                                                              | —  |                                                        |        | $               | 56,038   |       |  | $             | (43,598) |   |         | $      | (12,185) |   |  | $ | 255  |   |
| Exchange-traded  | 6                             |         |                                                         | —  |                                                           |               | 6                                                      |   |                 | —  |       |  | —  |     |        | 6  |   |
| Total            | $                                  | 56,044  |                                                    |               | $                                                              | —  |                                                        |        | $               | 56,044   |       |  | $             | (43,598) |   |         | $      | (12,185) |   |  | $ | 261  |   |

|                  |                                         |              |                                                         |  |                                                                     |               |                                                             |  |                 |              |            |  |   |          |        |  |   |               |        |  |   |               |        |  |  |  |  |  |  |  |  |  |  |  |  |
|------------------|-----------------------------------------|--------------|---------------------------------------------------------|--|---------------------------------------------------------------------|---------------|-------------------------------------------------------------|--|-----------------|--------------|------------|--|---|----------|--------|--|---|---------------|--------|--|---|---------------|--------|--|--|--|--|--|--|--|--|--|--|--|--|
|                  | June 30, 2020                           |              |                                                         |  |                                                                     |               |                                                             |  |                 |              |            |
|                  | 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              | $                                       | 27,117  |                                                    |  | $                                                                   | —  |                                                        |  | $               | 27,117  |       |  | $ | (27,117) |   |  | $ | —  |   |  | $ | —  |   |
| Total            | $                                       | 27,117  |                                                    |  | $                                                                   | —  |                                                        |  | $               | 27,117  |       |  | $ | (27,117) |   |  | $ | —  |   |  | $ | —  |   |

|                  |                                         |              |                                                         |  |                                                                     |               |                                                             |  |                 |              |            |  |   |          |        |  |   |               |        |  |   |               |        |  |  |  |  |  |  |  |  |  |  |  |  |
|------------------|-----------------------------------------|--------------|---------------------------------------------------------|--|---------------------------------------------------------------------|---------------|-------------------------------------------------------------|--|-----------------|--------------|------------|--|---|----------|--------|--|---|---------------|--------|--|---|---------------|--------|--|--|--|--|--|--|--|--|--|--|--|--|
|                  | December 31, 2019                  |              |                                                         |  |                                                                     |               |                                                             |  |                 |              |            |
|                  | 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              | $                                       | 43,598  |                                                    |  | $                                                                   | —  |                                                        |  | $               | 43,598  |       |  | $ | (43,598) |   |  | $ | —  |   |  | $ | —  |   |
| Total            | $                                       | 43,598  |                                                    |  | $                                                                   | —  |                                                        |  | $               | 43,598  |       |  | $ | (43,598) |   |  | $ | —  |   |  | $ | —  |   |

----

|                                                             |                |               |                  |        |             |              |                        |  |                  |              |               |        |   |               |        |  |   |              |        |  |   |              |        |  |  |  |  |  |  |  |  |  |  |  |  |
|-------------------------------------------------------------|----------------|---------------|------------------|--------|-------------|--------------|------------------------|--|------------------|--------------|---------------|--------|---|---------------|--------|--|---|--------------|--------|--|---|--------------|--------|--|--|--|--|--|--|--|--|--|--|--|--|
|                                                             | June 30, 2020  |               |                  |        |             |              | December 31, 2019 |  |                  |              |               |
|                                                             | Notional       |               | Gross Fair Value |        |             |              | Notional               |  | Gross Fair Value |              |               |
|                                                             |                |               | Assets           |        | Liabilities |              |                        |  | Assets           |              | Liabilities   |
|                                                             | (in thousands) |               |                  |        |             |              |                        |  |                  |              |               |
| Derivatives not designated as hedging instruments |                |               |                  |        |             |              |                        |  |                  |              |               |
|   Equity contracts (1)                            | $              | 656,281  |             |        | $           | 34,628  |                   |  | $                | 27,117  |          |        | $ | 742,387  |   |  | $ | 56,044  |   |  | $ | 43,598  |   |
| Embedded derivatives                                        |                |               |                  |        |             |              |                        |  |                  |              |               |
|   Stock market certificates (2)                   | N/A        |               | —     |   |             | 8,609   |                   |  | N/A          |              | —  |   |   | 13,961   |   |
| Total derivatives                                           | $              | 656,281  |             |        | $           | 34,628  |                   |  | $                | 35,726  |          |        | $ | 742,387  |   |  | $ | 56,044  |   |  | $ | 57,559  |   |

|                                                                       |  |                                                                                 |  |                                                                                              |             |        |       |                           |             |             |        |   |         |        |     |   |             |        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|-----------------------------------------------------------------------|--|---------------------------------------------------------------------------------|--|----------------------------------------------------------------------------------------------|-------------|--------|-------|---------------------------|-------------|-------------|--------|---|---------|--------|-----|---|-------------|--------|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|
| 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, |             |             |        |
|                                                                       |  |                                                                                 |  | 2020                                                                                         |             | 2019   |       | 2020                      |             | 2019        |        |
|                                                                       |  |                                                                                 |  | (in thousands)                                                                               |             |        |       |                           |             |             |        |
| Equity contracts                                                      |  |                                                                                 |  |                                                                                              |             |        |       |                           |             |             |        |
| Stock market certificates                                             |  | Net provision for certificate reserves                                          |  | $                                                                                            | 5,112  |   |       | $                         | 1,994  |        |        | $ | (2,313) |   |     | $ | 7,441  |   |  |
| Stock market certificates embedded derivatives                        |  | Net provision for certificate reserves                                          |  | (4,853)                                                                                      |        |        | (297) |                      | (1)         | 1,993  |   |   | (5,839) |   | (1) |
| Total                                                                 |  |                                                                                 |  | $                                                                                            | 259    |   |       | $                         | 1,697  |        |        | $ | (320)   |   |     | $ | 1,602  |   |  |

----

|                                                                |  |                                                        |  |                             |        |        |          |                           |       |           |        |   |          |        |  |   |      |        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|----------------------------------------------------------------|--|--------------------------------------------------------|--|-----------------------------|--------|--------|----------|---------------------------|-------|-----------|--------|---|----------|--------|--|---|------|--------|--|--|--|--|--|--|--|--|--|--|--|--|--|--|
| Accumulated Other Comprehensive Income (Loss) Reclassification |  | Location of (Gain) Loss Recognized in Income |  | Three Months Ended June 30, |        |        |          | Six Months Ended June 30, |       |           |
|                                                                |  |                                                        |  | 2020                        |        | 2019   |          | 2020                      |       | 2019      |
|                                                                |  |                                                        |  | (in thousands)              |        |        |          |                           |       |           |
| Unrealized net (gains) losses on Available-for-Sale securities |  | Net realized gain (loss) on investments                |  | $                           | (392)  |   |          | $                         | (121) |      |        | $ | (633)    |   |  | $ | (88) |   |
| Tax expense (benefit)                                          |  | Income tax expense (benefit)                           |  | 82                     |   |        | 25  |                      |       | 133  |   |   | 18  |   |
| Net of tax                                                     |  |                                                        |  | $                           | (310)  |   |          | $                         | (96)  |      |        | $ | (500)    |   |  | $ | (70) |   |

----

----

----

----

|                                    |                                                                                                                                                                                                                                                                                        |  |  |  |  |
|------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| 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 10, 2020 | By: | /s/ Abu M. Arif |
|           |                 |         | Abu M. Arif             |
|           |                 |         | Chief Executive Officer |

|           |                 |         |                               |  |  |  |  |  |  |  |  |
|-----------|-----------------|---------|-------------------------------|--|--|--|--|--|--|--|--|
| Date: | August 10, 2020 | By: | /s/ Jason S. Bartylla |
|           |                 |         | Jason S. Bartylla             |
|           |                 |         | Chief Financial Officer       |