Table of Contents

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

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

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

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

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|-----------------------------------------|
|                                         |  |  |
| Class                                   |   | Outstanding at November 4, 2013 |
| Common Shares (par value $10 per share) |   | 150,000 shares |

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Table of Contents

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|               |  |  |  |
| Part I.  | Financial Information: |   |
|          | Item 1. | Financial Statements |   |
|          |   | Consolidated Statements of Operations — Three Months and Nine Months Ended September 30, 2013 and 2012 | 3 |
|          |   | Consolidated Statements of Comprehensive Income — Three Months and Nine Months Ended September 30, 2013 and 2012 | 4 |
|          |   | Consolidated Balance Sheets — September 30, 2013 and December 31, 2012 | 5 |
|          |   | Consolidated Statements of Shareholder's Equity — Nine Months Ended September 30, 2013 and 2012 | 6 |
|          |   | Consolidated Statements of Cash Flows — Nine Months Ended September 30, 2013 and 2012 | 7 |
|          |   | Notes to Consolidated Financial Statements | 8 |
|          | Item 2. | Management's Narrative Analysis | 26 |
|          | Item 4. | Controls and Procedures | 27 |
| Part II. | Other Information: |   |
|          | Item 1. | Legal Proceedings | 28 |
|          | Item 1A. | Risk Factors | 28 |
|          | Item 6. | Exhibits | 28 |
|          | Signatures | 29 |
|          | Exhibit Index | E-1 |

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Table of Contents

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|                                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                             | Three Months Ended  September 30, |   | Nine Months Ended  September 30, |
|                                                                             | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                                                                             |   |   |   |   |   |   |   |
| Investment income                                                                | $ | 20,146 |  |   | $ | 22,465 |  |   | $ | 64,023 |  |   | $ | 68,044 |  |
| Investment expenses                                                              | 6,250 |  |   | 5,444 |  |   | 19,008 |  |   | 16,004 |  |
| Net investment income before provision for certificate reserves and income taxes | 13,896 |  |   | 17,021 |  |   | 45,015 |  |   | 52,040 |  |
| Net provision for certificate reserves                                           | 7,209 |  |   | 7,081 |  |   | 22,905 |  |   | 21,028 |  |
| Net investment income before income taxes                                        | 6,687 |  |   | 9,940 |  |   | 22,110 |  |   | 31,012 |  |
| Income tax expense                                                               | 2,431 |  |   | 3,534 |  |   | 8,090 |  |   | 11,150 |  |
| Net investment income                                                            | 4,256 |  |   | 6,406 |  |   | 14,020 |  |   | 19,862 |  |
|                                                                             |   |   |   |   |   |   |   |
| Net realized gain (loss) on investments                                          | 163 |  |   | (6,474 | ) |   | (1,945 | ) |   | (11,864 | ) |
| Income tax expense (benefit)                                                     | 57 |  |   | (2,265 | ) |   | (681 | ) |   | (4,152 | ) |
| Net realized gain (loss) on investments, after-tax                               | 106 |  |   | (4,209 | ) |   | (1,264 | ) |   | (7,712 | ) |
| Net income                                                                       | $ | 4,362 |  |   | $ | 2,197 |  |   | $ | 12,756 |  |   | $ | 12,150 |  |
|                                                                             |   |   |   |   |   |   |   |
| Supplemental Disclosures:                                                        |   |  |   |   |  |   |   |  |   |   |  |
| Total other-than-temporary impairment losses on securities                       | $ | (299 | ) |   | $ | (5,066 | ) |   | $ | (582 | ) |   | $ | (13,628 | ) |
| Portion of loss recognized in other comprehensive income (loss) (before taxes)   | (11 | ) |   | (1,688 | ) |   | (1,693 | ) |   | 1,628 |  |
| Net impairment losses recognized in net realized gain (loss) on investments      | $ | (310 | ) |   | $ | (6,754 | ) |   | $ | (2,275 | ) |   | $ | (12,000 | ) |
|  See Notes to Consolidated Financial Statements.                            |

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|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                     | Three Months Ended  September 30, |   | Nine Months Ended  September 30, |
|                                                                     | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                                                                     |   |   |   |   |   |   |   |
| Net income                                                               | $ | 4,362 |  |   | $ | 2,197 |  |   | $ | 12,756 |  |   | $ | 12,150 |  |
| Other comprehensive income (loss), net of tax:                           |   |  |   |   |  |   |   |  |   |   |  |
| Net unrealized gains (losses) on securities:                             |   |  |   |   |  |   |   |  |   |   |  |
| Net unrealized securities gains (losses) arising during the period       | 6,717 |  |   | 22,365 |  |   | (10,418 | ) |   | 38,236 |  |
| Reclassification of net securities (gains) losses included in net income | (106 | ) |   | 4,216 |  |   | 1,252 |  |   | 7,702 |  |
| Total other comprehensive income (loss), net of tax                      | 6,611 |  |   | 26,581 |  |   | (9,166 | ) |   | 45,938 |  |
| Total comprehensive income                                               | $ | 10,973 |  |   | $ | 28,778 |  |   | $ | 3,590 |  |   | $ | 58,088 |  |
| See Notes to Consolidated Financial Statements.                          |

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|                                                                     |  |  |  |  |  |  |  |
|                                                                | September 30, 2013 |   | December 31, 2012 |
| Assets                                                              |   |  |   |   |  |
| Qualified Assets                                                    |   |  |   |   |  |
| Cash and cash equivalents                                           | $ | 120,791 |  |   | $ | 89,232 |  |
| Investments in unaffiliated issuers                                 | 3,962,135 |  |   | 3,583,630 |  |
| Receivables                                                         | 24,622 |  |   | 20,415 |  |
| Equity derivatives, purchased                                       | 55,520 |  |   | 37,003 |  |
| Total qualified assets                                              | 4,163,068 |  |   | 3,730,280 |  |
| Deferred taxes, net                                                 | 26,330 |  |   | 22,070 |  |
| Current taxes receivable from parent                                | — |  |   | 1,383 |  |
| Total assets                                                        | $ | 4,189,398 |  |   | $ | 3,753,733 |  |
|                                                                |   |   |   |
| Liabilities and Shareholder's Equity                                |   |  |   |   |  |
| Liabilities                                                         |   |  |   |   |  |
| Certificate reserves                                                | $ | 3,886,103 |  |   | $ | 3,511,995 |  |
| Current taxes payable to parent                                     | 3,972 |  |   | — |  |
| Equity derivatives, written                                         | 48,605 |  |   | 29,532 |  |
| Payable for investment securities purchased                         | 25,749 |  |   | 1,084 |  |
| Due to related party and other liabilities                          | 3,839 |  |   | 3,582 |  |
| Total liabilities                                                   | 3,968,268 |  |   | 3,546,193 |  |
|                                                                |   |   |   |
| Shareholder's Equity                                                |   |  |   |   |  |
| Common shares ($10 par value, 150,000 shares authorized and issued) | 1,500 |  |   | 1,500 |  |
| Additional paid-in capital                                          | 201,517 |  |   | 191,517 |  |
| Total retained earnings                                             | 21,908 |  |   | 9,152 |  |
| Accumulated other comprehensive income (loss), net of tax           | (3,795 | ) |   | 5,371 |  |
| Total shareholder's equity                                          | 221,130 |  |   | 207,540 |  |
| Total liabilities and shareholder's equity                          | $ | 4,189,398 |  |   | $ | 3,753,733 |  |
| See Notes to Consolidated Financial Statements.                     |

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|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |   |   |   |   |   |   | Retained Earnings |   |   |   |   |
|                                            | Number ofOutstandingShares |   | CommonShares |   | AdditionalPaid-InCapital |   | Appropriated forPre-DeclaredAdditionalCredits andInterest |   | Appropriated forAdditionalInterest onAdvancePayments |   | Unappro-priated |   | Accumulated OtherComprehensiveIncome(Loss),Net of Tax |   | Total |
| Balance at January 1, 2012                      | 150,000 |  |   | $ | 1,500 |  |   | $ | 160,250 |  |   | $ | — |  |   | $ | 15 |  |   | $ | — |  |   | $ | (47,093 | ) |   | $ | 114,672 |  |
| Comprehensive income:                           |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Net income                                      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 12,150 |  |   | — |  |   | 12,150 |  |
| Other comprehensive income, net of tax          | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 45,938 |  |   | 45,938 |  |
| Total comprehensive income                      |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   | 58,088 |  |
| Dividend/return of capital to parent            | — |  |   | — |  |   | (5,733 | ) |   | — |  |   | — |  |   | (5,267 | ) |   | — |  |   | (11,000 | ) |
| Receipt of capital from parent                  | — |  |   | — |  |   | 15,000 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 15,000 |  |
| Balance at September 30, 2012                   | 150,000 |  |   | $ | 1,500 |  |   | $ | 169,517 |  |   | $ | — |  |   | $ | 15 |  |   | $ | 6,883 |  |   | $ | (1,155 | ) |   | $ | 176,760 |  |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2013                      | 150,000 |  |   | $ | 1,500 |  |   | $ | 191,517 |  |   | $ | — |  |   | $ | 15 |  |   | $ | 9,137 |  |   | $ | 5,371 |  |   | $ | 207,540 |  |
| Comprehensive income:                           |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Net income                                      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 12,756 |  |   | — |  |   | 12,756 |  |
| Other comprehensive loss, net of tax            | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (9,166 | ) |   | (9,166 | ) |
| Total comprehensive income                      |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   | 3,590 |  |
| Transfer to appropriated/ from unappropriated   | — |  |   | — |  |   | — |  |   | 8 |  |   | — |  |   | (8 | ) |   | — |  |   | — |  |
| Receipt of capital from parent                  | — |  |   | — |  |   | 10,000 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 10,000 |  |
| Balance at September 30, 2013                   | 150,000 |  |   | $ | 1,500 |  |   | $ | 201,517 |  |   | $ | 8 |  |   | $ | 15 |  |   | $ | 21,885 |  |   | $ | (3,795 | ) |   | $ | 221,130 |  |
| See Notes to Consolidated Financial Statements. |

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|                                                                                   |  |  |  |  |  |  |  |
|                                                                              | Nine Months Ended September 30, |
|                                                                              | 2013 |   | 2012 |
| Cash Flows from Operating Activities                                              |   |  |   |   |  |
| Net income                                                                        | $ | 12,756 |  |   | $ | 12,150 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |  |   |   |  |
| Interest added to certificate loans                                               | (34 | ) |   | (71 | ) |
| Amortization of premiums, accretion of discounts, net                             | 25,198 |  |   | 6,800 |  |
| Deferred income taxes                                                             | 950 |  |   | (2,918 | ) |
| Net realized loss on Available-for-Sale securities                                | 1,926 |  |   | 11,850 |  |
| Other net realized loss                                                           | 19 |  |   | 14 |  |
| Changes in operating assets and liabilities:                                      |   |  |   |   |  |
| Dividends and interest receivable                                                 | (1,837 | ) |   | 81 |  |
| Certificate reserves, net                                                         | (315 | ) |   | 2,970 |  |
| Due to/from parent for income taxes, net                                          | 5,355 |  |   | (5,243 | ) |
| Derivatives, net                                                                  | 824 |  |   | (3,436 | ) |
| Derivatives collateral, net                                                       | (341 | ) |   | 2,189 |  |
| Other, net                                                                        | (2,094 | ) |   | (5,186 | ) |
| Net cash provided by operating activities                                         | 42,407 |  |   | 19,200 |  |
|                                                                              |   |   |   |
| Cash Flows from Investing Activities                                              |   |  |   |   |  |
| Available-for-Sale securities:                                                    |   |  |   |   |  |
| Sales                                                                             | 27,957 |  |   | 29,765 |  |
| Maturities, redemptions and calls                                                 | 780,845 |  |   | 541,538 |  |
| Purchases                                                                         | (1,223,983 | ) |   | (749,015 | ) |
| Syndicated loans, commercial mortgage loans and other investments:                |   |  |   |   |  |
| Sales                                                                             | 2,781 |  |   | 1,427 |  |
| Maturities, redemptions and calls                                                 | 27,955 |  |   | 32,157 |  |
| Purchases and fundings                                                            | (11,274 | ) |   | (18,100 | ) |
| Certificate loans:                                                                |   |  |   |   |  |
| Payments                                                                          | 498 |  |   | 265 |  |
| Fundings                                                                          | (50 | ) |   | (171 | ) |
| Net cash used in investing activities                                             | (395,271 | ) |   | (162,134 | ) |
|                                                                              |   |   |   |
| Cash Flows from Financing Activities                                              |   |  |   |   |  |
| Payments from certificate owners                                                  | 1,723,815 |  |   | 905,039 |  |
| Certificate maturities and cash surrenders                                        | (1,349,392 | ) |   | (610,842 | ) |
| Capital contribution from parent                                                  | 10,000 |  |   | 15,000 |  |
| Dividend/return of capital to parent                                              | — |  |   | (11,000 | ) |
| Net cash provided by financing activities                                         | 384,423 |  |   | 298,197 |  |
|                                                                              |   |   |   |
| Net increase in cash and cash equivalents                                         | 31,559 |  |   | 155,263 |  |
| Cash and cash equivalents at beginning of period                                  | 89,232 |  |   | 74,498 |  |
| Cash and cash equivalents at end of period                                        | $ | 120,791 |  |   | $ | 229,761 |  |
|                                                                              |   |   |   |
| Supplemental disclosures including non-cash transactions:                         |   |  |   |   |  |
| Cash paid (received) for income taxes                                             | $ | (243 | ) |   | $ | 13,991 |  |
| Cash paid for interest                                                            | 28,053 |  |   | 23,560 |  |
| Certificate maturities and surrenders through loan reductions                     | 197 |  |   | 363 |  |
| See Notes to Consolidated Financial Statements.                                   |

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|                                                                                                                                                                  |  |  |  |  |  |  |  |
|                                                                                                                                                             | September 30, 2013 |   | December 31, 2012 |
| Available-for-Sale securities:                                                                                                                                   |   |  |   |   |  |
| Fixed maturities, at fair value (amortized cost: 2013, $3,829,364; 2012, $3,418,374)                                                                             | $ | 3,820,099 |  |   | $ | 3,424,910 |  |
| Common stocks, at fair value (cost: 2013, $2,203 2012, $2,204)                                                                                                   | 5,518 |  |   | 4,094 |  |
| Syndicated loans and commercial mortgage loans, at cost (less allowance for loan losses: 2013, $4,461; 2012, $5,660; fair value: 2013, $137,424; 2012, $156,730) | 133,516 |  |   | 150,813 |  |
| Certificate loans — secured by certificate reserves, at cost, which approximates fair value                                                                | 1,275 |  |   | 1,886 |  |
| Real estate owned, at fair value less costs to sell                                                                                                              | 1,727 |  |   | 1,927 |  |
| Total                                                                                                                                                            | $ | 3,962,135 |  |   | $ | 3,583,630 |  |

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|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     |   | September 30, 2013 |
| Description of Securities      |   | Amortized Cost |   | Gross Unrealized Gains |   | Gross Unrealized Losses |   | Fair Value |   | NoncreditOTTI (1) |
|                                     |   | (in thousands) |
| Residential mortgage backed securities   |   | $ | 2,066,605 |  |   | $ | 15,982 |  |   | $ | (42,135 | ) |   | $ | 2,040,452 |  |   | $ | (19,577 | ) |
| Corporate debt securities                |   | 971,765 |  |   | 10,186 |  |   | (1,305 | ) |   | 980,646 |  |   | 3 |  |
| Commercial mortgage backed securities    |   | 254,986 |  |   | 5,484 |  |   | (443 | ) |   | 260,027 |  |   | — |  |
| Asset backed securities                  |   | 535,629 |  |   | 5,014 |  |   | (2,089 | ) |   | 538,554 |  |   | — |  |
| U.S. government and agencies obligations |   | 379 |  |   | 41 |  |   | — |  |   | 420 |  |   | — |  |
| Common stocks                            |   | 2,203 |  |   | 3,315 |  |   | — |  |   | 5,518 |  |   | 1,375 |  |
| Total                                    |   | $ | 3,831,567 |  |   | $ | 40,022 |  |   | $ | (45,972 | ) |   | $ | 3,825,617 |  |   | $ | (18,199 | ) |

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|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                   |   | December 31, 2012 |
| Description of Securities                                                                                                                                                                                                                                                                                                                                    |   | Amortized Cost |   | Gross Unrealized Gains |   | Gross Unrealized Losses |   | Fair Value |   | NoncreditOTTI (1) |
|                                                                                                                                                                                                                                                                                                                                                                   |   | (in thousands) |
| Residential mortgage backed securities                                                                                                                                                                                                                                                                                                                                 |   | $ | 1,661,052 |  |   | $ | 24,077 |  |   | $ | (49,671 | ) |   | $ | 1,635,458 |  |   | $ | (33,283 | ) |
| Corporate debt securities                                                                                                                                                                                                                                                                                                                                              |   | 957,964 |  |   | 14,628 |  |   | (2,188 | ) |   | 970,404 |  |   | 3 |  |
| Commercial mortgage backed securities                                                                                                                                                                                                                                                                                                                                  |   | 402,877 |  |   | 12,013 |  |   | (180 | ) |   | 414,710 |  |   | — |  |
| Asset backed securities                                                                                                                                                                                                                                                                                                                                                |   | 396,101 |  |   | 8,141 |  |   | (355 | ) |   | 403,887 |  |   | — |  |
| U.S. government and agencies obligations                                                                                                                                                                                                                                                                                                                               |   | 380 |  |   | 71 |  |   | — |  |   | 451 |  |   | — |  |
| Common stocks                                                                                                                                                                                                                                                                                                                                                          |   | 2,204 |  |   | 1,902 |  |   | (12 | ) |   | 4,094 |  |   | 721 |  |
| Total                                                                                                                                                                                                                                                                                                                                                                  |   | $ | 3,420,578 |  |   | $ | 60,832 |  |   | $ | (52,406 | ) |   | $ | 3,429,004 |  |   | $ | (32,559 | ) |
| (1) Represents the amount of other-than-temporary impairment (“OTTI”) losses in accumulated other comprehensive income (loss). Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. |

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|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                   |   | September 30, 2013 |   | December 31, 2012 |
| Ratings                |   | Amortized Cost |   | Fair Value |   | Percent of Total Fair Value |   | Amortized Cost |   | Fair Value |   | Percent of Total Fair Value |
|                   |   | (in thousands, except percentages) |
| AAA                    |   | $ | 1,622,729 |  |   | $ | 1,629,304 |  |   | 42 | % |   | $ | 1,482,332 |  |   | $ | 1,507,947 |  |   | 44 | % |
| AA                     |   | 113,051 |  |   | 115,501 |  |   | 3 |  |   | 92,712 |  |   | 95,778 |  |   | 3 |  |
| A                      |   | 1,038,676 |  |   | 1,037,992 |  |   | 27 |  |   | 759,808 |  |   | 767,931 |  |   | 22 |  |
| BBB                    |   | 780,302 |  |   | 788,166 |  |   | 21 |  |   | 750,410 |  |   | 761,850 |  |   | 22 |  |
| Below investment grade |   | 274,606 |  |   | 249,136 |  |   | 7 |  |   | 333,112 |  |   | 291,404 |  |   | 9 |  |
| Total fixed maturities |   | $ | 3,829,364 |  |   | $ | 3,820,099 |  |   | 100 | % |   | $ | 3,418,374 |  |   | $ | 3,424,910 |  |   | 100 | % |

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|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities         |   | September 30, 2013 |
|                                   | Less than 12 months |   | 12 months or more |   | Total |
|                                   |   | Number of Securities |   | Fair Value |   | Unrealized Losses |   | Number of Securities |   | Fair Value |   | Unrealized Losses |   | Number of Securities |   | Fair Value |   | Unrealized Losses |
|                                   |   | (in thousands, except number of securities) |
| Residential mortgage backed securities |   | 75 |  |   | $ | 944,116 |  |   | $ | (9,489 | ) |   | 67 |  |   | $ | 296,360 |  |   | $ | (32,646 | ) |   | 142 |  |   | $ | 1,240,476 |  |   | $ | (42,135 | ) |
| Corporate debt securities              |   | 25 |  |   | 254,155 |  |   | (1,273 | ) |   | 1 |  |   | 14,007 |  |   | (32 | ) |   | 26 |  |   | 268,162 |  |   | (1,305 | ) |
| Commercial mortgage backed securities  |   | 9 |  |   | 50,712 |  |   | (442 | ) |   | 1 |  |   | 368 |  |   | (1 | ) |   | 10 |  |   | 51,080 |  |   | (443 | ) |
| Asset backed securities                |   | 24 |  |   | 320,443 |  |   | (2,089 | ) |   | — |  |   | — |  |   | — |  |   | 24 |  |   | 320,443 |  |   | (2,089 | ) |
| Total                                  |   | 133 |  |   | $ | 1,569,426 |  |   | $ | (13,293 | ) |   | 69 |  |   | $ | 310,735 |  |   | $ | (32,679 | ) |   | 202 |  |   | $ | 1,880,161 |  |   | $ | (45,972 | ) |

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|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities         |   | December 31, 2012 |
|                                   | 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 |   | 16 |  |   | $ | 300,375 |  |   | $ | (641 | ) |   | 81 |  |   | $ | 364,204 |  |   | $ | (49,030 | ) |   | 97 |  |   | $ | 664,579 |  |   | $ | (49,671 | ) |
| Corporate debt securities              |   | 31 |  |   | 310,622 |  |   | (2,188 | ) |   | — |  |   | — |  |   | — |  |   | 31 |  |   | 310,622 |  |   | (2,188 | ) |
| Commercial mortgage backed securities  |   | 5 |  |   | 35,073 |  |   | (180 | ) |   | — |  |   | — |  |   | — |  |   | 5 |  |   | 35,073 |  |   | (180 | ) |
| Asset backed securities                |   | 8 |  |   | 98,536 |  |   | (355 | ) |   | — |  |   | — |  |   | — |  |   | 8 |  |   | 98,536 |  |   | (355 | ) |
| Common stocks                          |   | 2 |  |   | 99 |  |   | (12 | ) |   | — |  |   | — |  |   | — |  |   | 2 |  |   | 99 |  |   | (12 | ) |
| Total                                  |   | 62 |  |   | $ | 744,705 |  |   | $ | (3,376 | ) |   | 81 |  |   | $ | 364,204 |  |   | $ | (49,030 | ) |   | 143 |  |   | $ | 1,108,909 |  |   | $ | (52,406 | ) |

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Table of Contents

|                                                                                          |
|------------------------------------------------------------------------------------------|
|                                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                     | Three Months Ended  September 30, |   | Nine Months Ended  September 30, |
|                                                                                     | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                                                                                     | (in thousands) |
| Beginning balance                                                                        | $ | 81,522 |  |   | $ | 69,791 |  |   | $ | 79,557 |  |   | $ | 64,545 |  |
| Credit losses for which an other-than-temporary impairment was not previously recognized | — |  |   | 860 |  |   | — |  |   | 1,401 |  |
| Credit losses for which an other-than-temporary impairment was previously recognized     | 310 |  |   | 5,894 |  |   | 2,275 |  |   | 10,599 |  |
| Ending balance                                                                           | $ | 81,832 |  |   | $ | 76,545 |  |   | $ | 81,832 |  |   | $ | 76,545 |  |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | NetUnrealizedInvestmentGains (Losses) |   | DeferredIncome Tax |   | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized InvestmentGains (Losses) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (in thousands) |
| Balance at January 1, 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $ | (74,315 | ) |   | $ | 27,222 |  |   | $ | (47,093 | ) |   |
| Net unrealized securities gains arising during the period (2)                                                                                                                                                                                                                                                                                                                                                                                                                                           | 60,651 |  |   | (22,415 | ) |   | 38,236 |   |   |
| Reclassification of losses included in net income                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 11,850 |  |   | (4,148 | ) |   | 7,702 |   |   |
| Balance at September 30, 2012                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $ | (1,814 | ) |   | $ | 659 |  |   | $ | (1,155 | ) | (1)  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |
| Balance at January 1, 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | $ | 8,426 |  |   | $ | (3,055 | ) |   | $ | 5,371 |   |   |
| Net unrealized securities losses arising during the period (2)                                                                                                                                                                                                                                                                                                                                                                                                                                          | (16,302 | ) |   | 5,884 |  |   | (10,418 | ) |   |
| Reclassification of losses included in net income                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 1,926 |  |   | (674 | ) |   | 1,252 |   |   |
| Balance at September 30, 2013                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $ | (5,950 | ) |   | $ | 2,155 |  |   | $ | (3,795 | ) | (1)  |
| (1) Includes $11.8 million and $26.1 million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at September 30, 2013 and 2012, respectively.(2) Net unrealized securities gains (losses) arising during the period include other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. |

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Table of Contents

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             | Three Months Ended  September 30, |   | Nine Months Ended  September 30, |
|                             | 2013 |   | 2012 |   | 2013 |   | 2012 |
|                             | (in thousands) |
| Gross realized gains             | $ | 473 |  |   | $ | 283 |  |   | $ | 751 |  |   | $ | 342 |  |
| Gross realized losses            | — |  |   | (16 | ) |   | (402 | ) |   | (192 | ) |
| Other-than-temporary impairments | (310 | ) |   | (6,754 | ) |   | (2,275 | ) |   | (12,000 | ) |
| Total                            | $ | 163 |  |   | $ | (6,487 | ) |   | $ | (1,926 | ) |   | $ | (11,850 | ) |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |
|                                   | Amortized Cost |   | Fair Value |
|                                   | (in thousands) |
| Due within one year                    | $ | 155,594 |  |   | $ | 156,339 |  |
| Due after one year through five years  | 816,332 |  |   | 824,472 |  |
| Due after five years through 10 years  | 4 |  |   | 5 |  |
| Due after 10 years                     | 214 |  |   | 250 |  |
|                                   | 972,144 |  |   | 981,066 |  |
| Residential mortgage backed securities | 2,066,605 |  |   | 2,040,452 |  |
| Commercial mortgage backed securities  | 254,986 |  |   | 260,027 |  |
| Asset backed securities                | 535,629 |  |   | 538,554 |  |
| Common stocks                          | 2,203 |  |   | 5,518 |  |
| Total                                  | $ | 3,831,567 |  |   | $ | 3,825,617 |  |

----

Table of Contents

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | September 30, 2013 |
|                                  | Commercial Mortgage Loans |   | Syndicated Loans |   | Total |
|                                  | (in thousands) |
| Beginning balance                     | $ | 2,576 |  |   | $ | 3,084 |  |   | $ | 5,660 |  |
| Charge-offs                           | (235 | ) |   | (964 | ) |   | (1,199 | ) |
| Ending balance                        | $ | 2,341 |  |   | $ | 2,120 |  |   | $ | 4,461 |  |
|                                  |   |   |   |   |   |
| Individually evaluated for impairment | $ | — |  |   | $ | — |  |   | $ | — |  |
| Collectively evaluated for impairment | 2,341 |  |   | 2,120 |  |   | 4,461 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | September 30, 2012 |
|                                  | Commercial Mortgage Loans |   | Syndicated Loans |   | Total |
|                                  | (in thousands) |
| Beginning balance                     | $ | 2,576 |  |   | $ | 4,163 |  |   | $ | 6,739 |  |
| Charge-offs                           | — |  |   | (929 | ) |   | (929 | ) |
| Ending balance                        | $ | 2,576 |  |   | $ | 3,234 |  |   | $ | 5,810 |  |
|                                  |   |   |   |   |   |
| Individually evaluated for impairment | $ | 1,000 |  |   | $ | 669 |  |   | $ | 1,669 |  |
| Collectively evaluated for impairment | 1,576 |  |   | 2,565 |  |   | 4,141 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | September 30, 2013 |
|                                  | Commercial Mortgage Loans |   | Syndicated Loans |   | Total |
|                                  | (in thousands) |
| Individually evaluated for impairment | $ | 1,836 |  |   | $ | 2,066 |  |   | $ | 3,902 |  |
| Collectively evaluated for impairment | 118,214 |  |   | 15,861 |  |   | 134,075 |  |
| Total                                 | $ | 120,050 |  |   | $ | 17,927 |  |   | $ | 137,977 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | December 31, 2012 |
|                                  | Commercial Mortgage Loans |   | Syndicated Loans |   | Total |
|                                  | (in thousands) |
| Individually evaluated for impairment | $ | 3,892 |  |   | $ | 1,474 |  |   | $ | 5,366 |  |
| Collectively evaluated for impairment | 119,933 |  |   | 31,174 |  |   | 151,107 |  |
| Total                                 | $ | 123,825 |  |   | $ | 32,648 |  |   | $ | 156,473 |  |

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Table of Contents

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Loans |   | Percentage |
|                            | September 30, 2013 |   | December 31, 2012 |   | September 30, 2013 |   | December 31, 2012 |
|                            | (in thousands) |   |   |   |   |
| East North Central              | $ | 3,298 |  |   | $ | 5,089 |  |   | 3 | % |   | 4 | % |
| Middle Atlantic                 | 8,349 |  |   | 8,893 |  |   | 7 |  |   | 7 |  |
| Mountain                        | 9,557 |  |   | 10,026 |  |   | 8 |  |   | 8 |  |
| New England                     | 10,522 |  |   | 10,763 |  |   | 9 |  |   | 9 |  |
| Pacific                         | 30,295 |  |   | 32,183 |  |   | 25 |  |   | 26 |  |
| South Atlantic                  | 34,673 |  |   | 35,862 |  |   | 29 |  |   | 29 |  |
| West North Central              | 13,817 |  |   | 15,079 |  |   | 11 |  |   | 12 |  |
| West South Central              | 9,539 |  |   | 5,930 |  |   | 8 |  |   | 5 |  |
|                            | 120,050 |  |   | 123,825 |  |   | 100 | % |   | 100 | % |
| Less: allowance for loan losses | 2,341 |  |   | 2,576 |  |   |   |  |   |   |  |
| Total                           | $ | 117,709 |  |   | $ | 121,249 |  |   |   |  |   |   |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Loans |   | Percentage |
|                            | September 30, 2013 |   | December 31, 2012 |   | September 30, 2013 |   | December 31, 2012 |
|                            | (in thousands) |   |   |   |   |
| Apartments                      | $ | 34,591 |  |   | $ | 35,042 |  |   | 29 | % |   | 28 | % |
| Industrial                      | 23,443 |  |   | 24,782 |  |   | 20 |  |   | 20 |  |
| Office                          | 11,227 |  |   | 13,172 |  |   | 9 |  |   | 11 |  |
| Retail                          | 34,740 |  |   | 35,194 |  |   | 29 |  |   | 28 |  |
| Other                           | 16,049 |  |   | 15,635 |  |   | 13 |  |   | 13 |  |
|                            | 120,050 |  |   | 123,825 |  |   | 100 | % |   | 100 | % |
| Less: allowance for loan losses | 2,341 |  |   | 2,576 |  |   |   |  |   |   |  |
| Total                           | $ | 117,709 |  |   | $ | 121,249 |  |   |   |  |   |   |  |

----

Table of Contents

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | 2013 |   | 2012 |
|                      | Number of Loans |   | Recorded Investment |   | Number of Loans |   | Recorded Investment |
|                      | (in thousands, except number of loans) |
| Commercial mortgage loans | 1 |  |   | $ | 1,988 |  |   | — |  |   | $ | — |  |
| Syndicated loans          | 1 |  |   | 244 |  |   | 1 |  |   | 475 |  |
| Total                     | 2 |  |   | $ | 2,232 |  |   | 1 |  |   | $ | 475 |  |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| Level 1 | Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| Level 2 | Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. |

|         |                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------|
| Level 3 | Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. |

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Table of Contents

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | September 30, 2013 |
|                                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                                     | (in thousands) |
| Assets                                   |   |  |   |   |  |   |   |  |   |   |  |
| Cash equivalents                         | $ | — |  |   | $ | 81,299 |  |   | $ | — |  |   | $ | 81,299 |  |
| Available-for-Sale securities:           |   |  |   |   |  |   |   |  |   |   |  |
| Residential mortgage backed securities   | — |  |   | 1,841,977 |  |   | 198,475 |  |   | 2,040,452 |  |
| Corporate debt securities                | — |  |   | 871,634 |  |   | 109,012 |  |   | 980,646 |  |
| Commercial mortgage backed securities    | — |  |   | 260,027 |  |   | — |  |   | 260,027 |  |
| Asset backed securities                  | — |  |   | 516,270 |  |   | 22,284 |  |   | 538,554 |  |
| U.S. government and agencies obligations | 420 |  |   | — |  |   | — |  |   | 420 |  |
| Common stocks                            | 2,208 |  |   | 3,099 |  |   | 211 |  |   | 5,518 |  |
| Total Available-for-Sale securities      | 2,628 |  |   | 3,493,007 |  |   | 329,982 |  |   | 3,825,617 |  |
| Equity derivatives, purchased            | — |  |   | 55,520 |  |   | — |  |   | 55,520 |  |
| Total assets at fair value               | $ | 2,628 |  |   | $ | 3,629,826 |  |   | $ | 329,982 |  |   | $ | 3,962,436 |  |
|                                     |   |   |   |   |   |   |   |
| Liabilities                              |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves                     | $ | — |  |   | $ | 7,232 |  |   | $ | — |  |   | $ | 7,232 |  |
| Equity derivatives, written              | — |  |   | 48,605 |  |   | — |  |   | 48,605 |  |
| Total liabilities at fair value          | $ | — |  |   | $ | 55,837 |  |   | $ | — |  |   | $ | 55,837 |  |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | December 31, 2012 |
|                                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                                     | (in thousands) |
| Assets                                   |   |  |   |   |  |   |   |  |   |   |  |
| Cash equivalents                         | $ | — |  |   | $ | 81,098 |  |   | $ | — |  |   | $ | 81,098 |  |
| Available-for-Sale securities:           |   |  |   |   |  |   |   |  |   |   |  |
| Residential mortgage backed securities   | — |  |   | 1,382,860 |  |   | 252,598 |  |   | 1,635,458 |  |
| Corporate debt securities                | — |  |   | 859,761 |  |   | 110,643 |  |   | 970,404 |  |
| Commercial mortgage backed securities    | — |  |   | 378,650 |  |   | 36,060 |  |   | 414,710 |  |
| Asset backed securities                  | — |  |   | 381,664 |  |   | 22,223 |  |   | 403,887 |  |
| U.S. government and agencies obligations | 451 |  |   | — |  |   | — |  |   | 451 |  |
| Common stocks                            | 1,054 |  |   | 2,216 |  |   | 824 |  |   | 4,094 |  |
| Total Available-for-Sale securities      | 1,505 |  |   | 3,005,151 |  |   | 422,348 |  |   | 3,429,004 |  |
| Equity derivatives, purchased            | — |  |   | 37,003 |  |   | — |  |   | 37,003 |  |
| Total assets at fair value               | $ | 1,505 |  |   | $ | 3,123,252 |  |   | $ | 422,348 |  |   | $ | 3,547,105 |  |
|                                     |   |   |   |   |   |   |   |
| Liabilities                              |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves                     | $ | — |  |   | $ | 7,904 |  |   | $ | — |  |   | $ | 7,904 |  |
| Equity derivatives, written              | — |  |   | 29,532 |  |   | — |  |   | 29,532 |  |
| Total liabilities at fair value          | $ | — |  |   | $ | 37,436 |  |   | $ | — |  |   | $ | 37,436 |  |

----

Table of Contents

|                                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------|
|                                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                 | Available-for-Sale Securities |   |   |   |   |
|                                                                                                                 | Residential MortgageBackedSecurities |   | CorporateDebtSecurities |   | Commercial MortgageBackedSecurities |   | AssetBackedSecurities |   | CommonStocks |   | Derivatives |   | Total |
|                                                                                                                 | (in thousands) |
| Balance, July 1, 2013                                                                                           | $ | 19,400 |  |   | $ | 108,637 |  |   | $ | 45,771 |  |   | $ | 59,957 |  |   | $ | 229 |  |   | $ | — |  |   | $ | 233,994 |  |
| Total gains (losses) included in:                                                                                    |   |   |  |   |   |   |   |   |   |  |   |   |  |   |   |  |
| Net income                                                                                                           | (29 | ) | (1)  | (283 | ) | (1)  | (86 | ) | (1)  | 49 |  | (1)  | — |  |   | — |  |   | (349 | ) |
| Other comprehensive income                                                                                           | (61 | ) |   | 658 |  |   | (226 | ) |   | (322 | ) |   | (18 | ) |   | — |  |   | 31 |  |
| Purchases                                                                                                            | 200,384 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 200,384 |  |
| Settlements                                                                                                          | (1,819 | ) |   | — |  |   | (35,489 | ) |   | (918 | ) |   | — |  |   | — |  |   | (38,226 | ) |
| Transfers out of Level 3                                                                                             | (19,400 | ) |   | — |  |   | (9,970 | ) |   | (36,482 | ) |   | — |  |   | — |  |   | (65,852 | ) |
| Balance, September 30, 2013                                                                                          | $ | 198,475 |  |   | $ | 109,012 |  |   | $ | — |  |   | $ | 22,284 |  |   | $ | 211 |  |   | $ | — |  |   | $ | 329,982 |  |
| Change in unrealized gains (losses) included in net income related to Level 3 assets held at September 30, 2013 | $ | (29 | ) | (1)  | $ | (283 | ) | (1)  | $ | — |  |   | $ | 49 |  | (1)  | $ | — |  |   | $ | — |  |   | $ | (263 | ) |
| (1) Included in investment income in the Consolidated Statements of Operations.                                 |

|                                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------|
|                                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                 | Available-for-Sale Securities |   |   |   |   |
|                                                                                                                 | Residential MortgageBackedSecurities |   | CorporateDebtSecurities |   | Commercial MortgageBackedSecurities |   | AssetBackedSecurities |   | CommonStocks |   | Derivatives |   | Total |
|                                                                                                                 | (in thousands) |
| Balance, July 1, 2012                                                                                           | $ | 107,213 |  |   | $ | 29,236 |  |   | $ | 25,903 |  |   | $ | 24,482 |  |   | $ | 288 |  |   | $ | — |  |   | $ | 187,122 |  |
| Total gains (losses) included in:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |  |
| Net income                                                                                                           | 148 |  | (1)  | (15 | ) | (1)  | (7 | ) | (1)  | 73 |  | (1)  | — |  |   | — |  |   | 199 |  |
| Other comprehensive income                                                                                           | 159 |  |   | 500 |  |   | 124 |  |   | 374 |  |   | — |  |   | — |  |   | 1,157 |  |
| Purchases                                                                                                            | 53,740 |  |   | 15,000 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 68,740 |  |
| Settlements                                                                                                          | (3,411 | ) |   | (778 | ) |   | — |  |   | (1,376 | ) |   | — |  |   | — |  |   | (5,565 | ) |
| Transfers out of Level 3                                                                                             | (86,041 | ) |   | — |  |   | — |  |   | — |  |   | (41 | ) |   | — |  |   | (86,082 | ) |
| Balance, September 30, 2012                                                                                          | $ | 71,808 |  |   | $ | 43,943 |  |   | $ | 26,020 |  |   | $ | 23,553 |  |   | $ | 247 |  |   | $ | — |  |   | $ | 165,571 |  |
| Change in unrealized gains (losses) included in net income related to Level 3 assets held at September 30, 2012 | $ | 148 |  | (1)  | $ | (15 | ) | (1)  | $ | (7 | ) | (1)  | $ | 73 |  | (1)  | $ | — |  |   | $ | — |  |   | $ | 199 |  |
| (1)  Included in investment income in the Consolidated Statements of Operations.                           |

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Table of Contents

|                                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------|
|                                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                 | Available-for-Sale Securities |   |   |   |   |
|                                                                                                                 | Residential MortgageBackedSecurities |   | CorporateDebtSecurities |   | Commercial MortgageBackedSecurities |   | AssetBackedSecurities |   | CommonStocks |   | Derivatives |   | Total |
|                                                                                                                 | (in thousands) |
| Balance, January 1, 2013                                                                                             | $ | 252,598 |  |   | $ | 110,643 |  |   | $ | 36,060 |  |   | $ | 22,223 |  |   | $ | 824 |  |   | $ | — |  |   | $ | 422,348 |  |
| Total gains (losses) included in:                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                           | (29 | ) | (1)  | (848 | ) | (1)  | (175 | ) | (1)  | 114 |  | (1)  | — |  |   | — |  |   | (938 | ) |
| Other comprehensive loss                                                                                             | (61 | ) |   | (779 | ) |   | (396 | ) |   | (512 | ) |   | (36 | ) |   | — |  |   | (1,784 | ) |
| Purchases                                                                                                            | 219,784 |  |   | — |  |   | 9,970 |  |   | 171,338 |  |   | — |  |   | — |  |   | 401,092 |  |
| Settlements                                                                                                          | (1,819 | ) |   | — |  |   | (35,489 | ) |   | (3,303 | ) |   | — |  |   | — |  |   | (40,611 | ) |
| Transfers into Level 3                                                                                               | — |  |   | — |  |   | — |  |   | 7,872 |  |   | — |  |   | — |  |   | 7,872 |  |
| Transfers out of Level 3                                                                                             | (271,998 | ) |   | (4 | ) |   | (9,970 | ) |   | (175,448 | ) |   | (577 | ) |   | — |  |   | (457,997 | ) |
| Balance, September 30, 2013                                                                                          | $ | 198,475 |  |   | $ | 109,012 |  |   | $ | — |  |   | $ | 22,284 |  |   | $ | 211 |  |   | $ | — |  |   | $ | 329,982 |  |
| Change in unrealized gains (losses) included in net income related to Level 3 assets held at September 30, 2013 | $ | (29 | ) | (1)  | $ | (848 | ) | (1)  | $ | — |  |   | $ | 104 |  | (1)  | $ | — |  |   | $ | — |  |   | $ | (773 | ) |
| (1) Included in investment income in the Consolidated Statements of Operations.                                 |

|                                                                                                                                                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                    | Available-for-Sale Securities |   |   |   |   |
|                                                                                                                                                                                                                                                                    | Residential MortgageBackedSecurities |   | CorporateDebtSecurities |   | Commercial MortgageBackedSecurities |   | AssetBackedSecurities |   | CommonStocks |   | Derivatives |   | Total |
|                                                                                                                                                                                                                                                                    | (in thousands) |
| Balance, January 1, 2012                                                                                                                                                                                                                                                | $ | 80,580 |  |   | $ | 12,984 |  |   | $ | — |  |   | $ | 27,812 |  |   | $ | 340 |  |   | $ | 4 |  |   | $ | 121,720 |  |
| Total gains (losses) included in:                                                                                                                                                                                                                                       |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Net income                                                                                                                                                                                                                                                              | (5,106 | ) | (1)  | (39 | ) | (2)  | (17 | ) | (2)  | 215 |  | (2)  | — |  |   | — |  |   | (4,947 | ) |
| Other comprehensive income                                                                                                                                                                                                                                              | 10,323 |  |   | 664 |  |   | 451 |  |   | 715 |  |   | (14 | ) |   | — |  |   | 12,139 |  |
| Purchases                                                                                                                                                                                                                                                               | 75,732 |  |   | 32,730 |  |   | 2,037 |  |   | — |  |   | 296 |  |   | — |  |   | 110,795 |  |
| Sales                                                                                                                                                                                                                                                                   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (4 | ) |   | (4 | ) |
| Settlements                                                                                                                                                                                                                                                             | (14,585 | ) |   | (2,399 | ) |   | — |  |   | (5,189 | ) |   | — |  |   | — |  |   | (22,173 | ) |
| Transfers into Level 3                                                                                                                                                                                                                                                  | 10,905 |  |   | 3 |  |   | 23,549 |  |   | — |  |   | — |  |   | — |  |   | 34,457 |  |
| Transfers out of Level 3                                                                                                                                                                                                                                                | (86,041 | ) |   | — |  |   | — |  |   | — |  |   | (375 | ) |   | — |  |   | (86,416 | ) |
| Balance, September 30, 2012                                                                                                                                                                                                                                             | $ | 71,808 |  |   | $ | 43,943 |  |   | $ | 26,020 |  |   | $ | 23,553 |  |   | $ | 247 |  |   | $ | — |  |   | $ | 165,571 |  |
| Change in unrealized gains (losses) included in net income related to Level 3 assets held at September 30, 2012                                                                                                                                                    | $ | 175 |  | (1)  | $ | (39 | ) | (2)  | $ | (17 | ) | (2)  | $ | 215 |  | (2)  | $ | — |  |   | $ | — |  |   | $ | 334 |  |
| (1) Represents a $(5,246) loss included in net realized gain (loss) on investments and a $140 gain included in investment income in the Consolidated Statements of Operations.(2) Included in investment income in the Consolidated Statements of Operations. |

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|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |
|                                           | September 30, 2013 |
|                                           | Fair Value |   | Valuation Technique |   | Unobservable Input |   | Range (Weighted Average) |
|                                           | (in thousands) |   |   |   |   |   |   |
| Corporate debt securities (private placements) | $ | 87,900 |  |   | Discounted cash flow |   | Yield/spread to U.S. Treasuries |   | 1.2% - 1.5% (1.4%) |

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |
|                                           | December 31, 2012 |
|                                           | Fair Value |   | Valuation Technique |   | Unobservable Input |   | Range (Weighted Average) |
|                                           | (in thousands) |   |   |   |   |   |   |
| Corporate debt securities (private placements) | $ | 88,530 |  |   | Discounted cash flow |   | Yield/spread to U.S. Treasuries |   | 1.4% - 1.7% (1.5%) |

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|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | September 30, 2013 |
|                      | Carrying Value |   | Fair Value |
|                      |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                      | (in thousands) |
| Financial Assets          |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Syndicated loans          | $ | 15,807 |  |   | $ | — |  |   | $ | 16,431 |  |   | $ | — |  |   | $ | 16,431 |  |
| Commercial mortgage loans | 117,709 |  |   | — |  |   | — |  |   | 120,993 |  |   | 120,993 |  |
| Certificate loans         | 1,275 |  |   | — |  |   | 1,275 |  |   | — |  |   | 1,275 |  |
| Financial Liabilities     |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves      | $ | 3,878,871 |  |   | $ | — |  |   | $ | — |  |   | $ | 3,878,288 |  |   | $ | 3,878,288 |  |

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|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | December 31, 2012 |
|                      | Carrying Value |   | Fair Value |
|                      |   | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                      | (in thousands) |
| Financial Assets          |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Syndicated loans          | $ | 29,564 |  |   | $ | — |  |   | $ | 30,164 |  |   | $ | 369 |  |   | $ | 30,533 |  |
| Commercial mortgage loans | 121,249 |  |   | — |  |   | — |  |   | 126,197 |  |   | 126,197 |  |
| Certificate loans         | 1,886 |  |   | — |  |   | 1,886 |  |   | — |  |   | 1,886 |  |
| Financial Liabilities     |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves      | $ | 3,504,091 |  |   | $ | — |  |   | $ | — |  |   | $ | 3,494,304 |  |   | $ | 3,494,304 |  |

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|                                                                                                                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                          | September 30, 2013 |
|                                                                                                                                                                                                                          | GrossAmounts of Recognized Assets |   | Gross AmountsOffset in the Consolidated Balance Sheets |   | Amounts of Assets Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   |   |
|                                                                                                                                                                                                                          |   |   |   | Financial Instruments (1) |   | Cash Collateral |   | Net Amount |
|                                                                                                                                                                                                                          | (in thousands) |
| Equity derivatives, purchased                                                                                                                                                                                                 | $ | 55,520 |  |   | $ | — |  |   | $ | 55,520 |  |   | $ | (48,605 | ) |   | $ | (2,071 | ) |   | $ | 4,844 |  |
|                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                          | December 31, 2012 |
|                                                                                                                                                                                                                          | GrossAmounts of Recognized Assets |   | Gross AmountsOffset in the Consolidated Balance Sheets |   | Amounts of Assets Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   |   |
|                                                                                                                                                                                                                          |   |   |   | Financial Instruments (1) |   | Cash Collateral |   | Net Amount |
|                                                                                                                                                                                                                          | (in thousands) |
| Equity derivatives, purchased                                                                                                                                                                                                 | $ | 37,003 |  |   | $ | — |  |   | $ | 37,003 |  |   | $ | (29,532 | ) |   | $ | (2,412 | ) |   | $ | 5,059 |  |
| (1) Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |

|                                                                                                                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                                                                                                                          | September 30, 2013 |
|                                                                                                                                                                                                                          | GrossAmounts of Recognized Liabilities |   | Gross AmountsOffset in the Consolidated Balance Sheets |   | Amounts of Liabilities Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   |   |
|                                                                                                                                                                                                                          |   |   |   | Financial Instruments (1) |   | Cash Collateral |   | Net Amount |
|                                                                                                                                                                                                                          | (in thousands) |
| Equity derivatives, written                                                                                                                                                                                                   | $ | 48,605 |  |   | $ | — |  |   | $ | 48,605 |  |   | $ | (48,605 | ) |   | $ | — |  |   | $ | — |  |
|                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                          | December 31, 2012 |
|                                                                                                                                                                                                                          | GrossAmounts of Recognized Liabilities |   | Gross AmountsOffset in the Consolidated Balance Sheets |   | Amounts of Liabilities Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   |   |
|                                                                                                                                                                                                                          |   |   |   | Financial Instruments (1) |   | Cash Collateral |   | Net Amount |
|                                                                                                                                                                                                                          | (in thousands) |
| Equity derivatives, written                                                                                                                                                                                                   | $ | 29,532 |  |   | $ | — |  |   | $ | 29,532 |  |   | $ | (29,532 | ) |   | $ | — |  |   | $ | — |  |
| (1) Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Consolidated Balance Sheets. |

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|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Derivatives not designated as hedging instruments |   |   |   | Asset |   |   |   | Liability |
|                                                                  | Balance Sheet Location |   | September 30, 2013 |   | December 31, 2012 |   | Balance Sheet Location |   | September 30, 2013 |   | December 31, 2012 |
|                                                                  |   |   |   | (in thousands) |   |   |   | (in thousands) |
| Equity                                                                |   |   |   |   |   |   |   |   |
| Stock market certificates                                             |   | Equity derivatives, purchased |   | $ | 55,520 |  |   | $ | 37,003 |  |   | Equity derivatives, written |   | $ | 48,605 |  |   | $ | 29,532 |  |
| Stock market certificates embedded derivatives                        |   | N/A |   | — |  |   | — |  |   | Certificate reserves |   | 7,232 |  |   | 7,904 |  |
| Total                                                                 |   |   |   | $ | 55,520 |  |   | $ | 37,003 |  |   |   |   | $ | 55,837 |  |   | $ | 37,436 |  |
| N/A Not applicable.                                                   |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |
| Derivatives not designated as hedging instruments |   | Location of Gain (Loss) on Derivatives Recognized in Income |   | Amount of Gain (Loss) on Derivatives Recognized in Income |
|                                                                  |   | Three Months Ended September 30, |
|                                                                  |   | 2013 |   | 2012 |
|                                                                  |   |   |   | (in thousands) |
| Equity                                                                |   |   |   |   |  |   |   |  |
| Stock market certificates                                             |   | Net provision for certificate reserves |   | $ | 1,131 |  |   | $ | 1,869 |  |
| Stock market certificates embedded derivatives                        |   | Net provision for certificate reserves |   | (798 | ) |   | (1,424 | ) |
| Total                                                                 |   |   |   | $ | 333 |  |   | $ | 445 |  |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |
| Derivatives not designated as hedging instruments |   | Location of Gain (Loss) on Derivatives Recognized in Income |   | Amount of Gain (Loss) on Derivatives Recognized in Income |
|                                                                  |   | Nine Months Ended September 30, |
|                                                                  |   | 2013 |   | 2012 |
|                                                                  |   |   |   | (in thousands) |
| Equity                                                                |   |   |   |   |  |   |   |  |
| Stock market certificates                                             |   | Net provision for certificate reserves |   | $ | 5,029 |  |   | $ | 5,866 |  |
| Stock market certificates embedded derivatives                        |   | Net provision for certificate reserves |   | (4,352 | ) |   | (4,873 | ) |
| Total                                                                 |   |   |   | $ | 677 |  |   | $ | 993 |  |

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|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |
|                                                           |   |   |   | Amount Reclassified from AOCI |
| AOCI Reclassification                                     |   | Location of Loss Recognized in Income |   | Three Months Ended  September 30, 2013 |   | Nine Months Ended  September 30, 2013 |
|                                                           |   |   |   | (in thousands) |
| Unrealized net losses (gains) on Available-for-Sale securities |   | Net investment income |   | $ | (163 | ) |   | $ | 1,926 |  |
| Tax expense (benefit)                                          |   | Income tax provision |   | 57 |  |   | (674 | ) |
| Net of tax                                                     |   |   |   | $ | (106 | ) |   | $ | 1,252 |  |

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|        |
|--------|
|        |  |  |
|   |   | AMERIPRISE CERTIFICATE COMPANY |
|   |   | (Registrant) |
|   |   |   |
| Date:  | November 4, 2013 | /s/ Abu M. Arif |
|   |   | Abu M. Arif |
|   |   | Chief Executive Officer |
|   |   |   |
|   |   |   |
| Date:  | November 4, 2013 | /s/ Ross P. Palacios |
|   |   | Ross P. Palacios |
|   |   | Chief Financial Officer |

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

|        |                                                                                                                                                                                 |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14(a)* | Code of Ethics under Rule 17j-1 for Ameriprise Certificate Company effective August 21, 2013, is filed electronically herewith as Exhibit14(a) to Registrant’s Form 10-Q. |

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

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

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