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

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

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

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

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

|                                         |
|-----------------------------------------|
|                                         |  |  |
| Class                                   |   | Outstanding at November 2, 2016 |
| Common Shares (par value $10 per share) |   | 150,000 shares |

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

----

|                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                        |  |  |  |  |  |
| Part I.  Financial Information                                                                                    |
| Item 1. Financial Statements (Unaudited)                                                                               |   |
| Consolidated Statements of Operations — Three months and nine months ended September 30, 2016 and 2015           | 3 |  |
| Consolidated Statements of Comprehensive Income — Three months and nine months ended September 30, 2016 and 2015 | 4 |  |
| Consolidated Balance Sheets — September 30, 2016 and December 31, 2015                                           | 5 |  |
| Consolidated Statements of Shareholder's Equity — Nine months ended September 30, 2016 and 2015                  | 6 |  |
| Consolidated Statements of Cash Flows — Nine months ended September 30, 2016 and 2015                            | 7 |  |
| Notes to Consolidated Financial Statements                                                                             | 8 |  |
| 1.  Basis of Presentation                                                                                              | 8 |  |
| 2.  Recent Accounting Pronouncements                                                                                   | 8 |  |
| 3.  Investments                                                                                                        | 9 |  |
| 4.  Commercial Mortgage, Syndicated and Certificate Loans                                                              | 13 |  |
| 5.  Fair Values of Assets and Liabilities                                                                              | 15 |  |
| 6.  Offsetting Assets and Liabilities                                                                                  | 21 |  |
| 7.  Derivatives and Hedging Activities                                                                                 | 22 |  |
| 8.  Contingencies                                                                                                      | 23 |  |
| 9.  Shareholder’s Equity                                                                                         | 23 |  |
| 10.  Income Taxes                                                                                                      | 24 |  |
| Item 2.  Management’s Narrative Analysis                                                               | 25 |  |
| Item 4.  Controls and Procedures                                                                             | 26 |  |
|                                                                                                                   |   |
| Part II.  Other Information                                                                             | 27 |  |
| Item 1.  Legal Proceedings                                                                                   | 27 |  |
| Item 1A.  Risk Factors                                                                                       | 27 |  |
| Item 6.  Exhibits                                                                                            | 27 |  |
| Signatures                                                                                                             | 28 |  |
| Exhibit Index                                                                                                          | E-1 |  |

----

|                                                                                                          |
|----------------------------------------------------------------------------------------------------------|
|                                                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                     | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                                                                     | 2016 |   | 2015 |   | 2016 |   | 2015 |
|                                                                                                     | (in thousands) |
| Investment income                                                                                        | $ | 29,130 |  |   | $ | 22,974 |  |   | $ | 85,065 |  |   | $ | 66,641 |  |
| Investment expenses                                                                                      | 8,308 |  |   | 7,028 |  |   | 24,143 |  |   | 20,398 |  |
| Net investment income before provision for certificate reserves and     income taxes | 20,822 |  |   | 15,946 |  |   | 60,922 |  |   | 46,243 |  |
| Net provision for certificate reserves                                                                   | 11,505 |  |   | 6,889 |  |   | 27,706 |  |   | 19,589 |  |
| Net investment income before income taxes                                                                | 9,317 |  |   | 9,057 |  |   | 33,216 |  |   | 26,654 |  |
| Income tax expense                                                                                       | 3,344 |  |   | 3,086 |  |   | 11,550 |  |   | 8,074 |  |
| Net investment income, after-tax                                                                         | 5,973 |  |   | 5,971 |  |   | 21,666 |  |   | 18,580 |  |
|                                                                                                     |   |   |   |   |   |   |   |
| Net realized gain (loss) on investments before income taxes                                              | 1,031 |  |   | (579 | ) |   | 62 |  |   | (1,577 | ) |
| Income tax expense (benefit)                                                                             | 360 |  |   | (203 | ) |   | 21 |  |   | (552 | ) |
| Net realized gain (loss) on investments, after-tax                                                       | 671 |  |   | (376 | ) |   | 41 |  |   | (1,025 | ) |
| Net income                                                                                               | $ | 6,644 |  |   | $ | 5,595 |  |   | $ | 21,707 |  |   | $ | 17,555 |  |
|                                                                                                     |   |   |   |   |   |   |   |
| Supplemental Disclosures:                                                                                |   |  |   |   |  |   |   |  |   |   |  |
| Total other-than-temporary impairment losses on securities                                               | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |
| Portion of loss recognized in other comprehensive income (loss) (before taxes)                      | (1 | ) |   | — |  |   | (71 | ) |   | (923 | ) |
| Net impairment losses recognized in net realized gain (loss) on investments                         | $ | (1 | ) |   | $ | — |  |   | $ | (71 | ) |   | $ | (923 | ) |
|  See Notes to Consolidated Financial Statements.                                                    |

----

|                                                                               |
|-------------------------------------------------------------------------------|
|                                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                          | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                                          | 2016 |   | 2015 |   | 2016 |   | 2015 |
|                                                                          | (in thousands) |
| Net income                                                                    | $ | 6,644 |  |   | $ | 5,595 |  |   | $ | 21,707 |  |   | $ | 17,555 |  |
| Other comprehensive income, net of tax:                                       |   |  |   |   |  |   |   |  |   |   |  |
| Net unrealized gains (losses) on securities:                                  |   |  |   |   |   |   |  |   |   |  |
| Net unrealized securities gains (losses) arising during the period       | 4,631 |  |   | (132 | ) |   | 22,812 |  |   | 187 |  |
| Reclassification of net securities losses (gains) included in net income | (671 | ) |   | 215 |  |   | (41 | ) |   | 864 |  |
| Total other comprehensive income, net of tax                                  | 3,960 |  |   | 83 |  |   | 22,771 |  |   | 1,051 |  |
| Total comprehensive income                                                    | $ | 10,604 |  |   | $ | 5,678 |  |   | $ | 44,478 |  |   | $ | 18,606 |  |
| See Notes to Consolidated Financial Statements.                               |

----

|                                                                     |
|---------------------------------------------------------------------|
|                                                                     |  |  |  |  |  |  |  |
|                                                                | September 30, 2016 |   | December 31, 2015 |
|                                                                     | (in thousands, except share amounts) |
| Assets                                                              |   |   |   |
| Qualified Assets                                                    |   |  |   |   |  |
| Cash and cash equivalents                                           | $ | 195,525 |  |   | $ | 137,557 |  |
| Investments in unaffiliated issuers                                 | 5,760,879 |  |   | 4,937,750 |  |
| Receivables                                                         | 31,176 |  |   | 22,122 |  |
| Derivative assets                                                   | 36,712 |  |   | 18,493 |  |
| Total qualified assets                                              | 6,024,292 |  |   | 5,115,922 |  |
| Current taxes receivable from parent                                | — |  |   | 2,803 |  |
| Deferred taxes, net                                                 | 859 |  |   | 1,947 |  |
| Total assets                                                        | $ | 6,025,151 |  |   | $ | 5,120,672 |  |
|                                                                |   |   |   |
| Liabilities and Shareholder's Equity                                |   |  |   |   |  |
| Liabilities                                                         |   |  |   |   |  |
| Certificate reserves                                                | $ | 5,646,316 |  |   | $ | 4,834,896 |  |
| Current taxes payable to parent                                     | 1,197 |  |   | — |  |
| Derivative liabilities                                              | 30,164 |  |   | 14,932 |  |
| Payable for investment securities purchased                         | 2,729 |  |   | 2,304 |  |
| Due to related party and other liabilities                          | 24,445 |  |   | 17,718 |  |
| Total liabilities                                                   | 5,704,851 |  |   | 4,869,850 |  |
|                                                                |   |   |   |
| Shareholder's Equity                                                |   |  |   |   |  |
| Common shares ($10 par value, 150,000 shares authorized and issued) | 1,500 |  |   | 1,500 |  |
| Additional paid-in capital                                          | 239,517 |  |   | 214,517 |  |
| Total retained earnings                                             | 75,320 |  |   | 53,613 |  |
| Accumulated other comprehensive income (loss), net of tax           | 3,963 |  |   | (18,808 | ) |
| Total shareholder's equity                                          | 320,300 |  |   | 250,822 |  |
| Total liabilities and shareholder's equity                          | $ | 6,025,151 |  |   | $ | 5,120,672 |  |
| See Notes to Consolidated Financial Statements.                     |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            | Retained Earnings |   |
|                                            | Number of Outstanding Shares | Common Shares | Additional Paid-In Capital | Appropriated for Pre-Declared Additional Credits and Interest | Appropriated for Additional Interest on Advance Payments | Unappropriated | Accumulated Other Comprehensive Income (Loss), Net of Tax | Total |
|                                            | (in thousands, except share data) |
| Balance at January 1, 2015                      | 150,000 |   | $ | 1,500 |   | $ | 201,517 |   | $ | 58 |   | $ | 15 |   | $ | 40,869 |   | $ | (4,028 | ) | $ | 239,931 |  |
| Comprehensive income:                           |   |   |   |   |   |   |   |   |
| Net income                                      | — |   | — |   | — |   | — |   | — |   | 17,555 |   | — |   | 17,555 |  |
| Other comprehensive income, net of tax          | — |   | — |   | — |   | — |   | — |   | — |   | 1,051 |   | 1,051 |  |
| Total comprehensive income                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 18,606 |  |
| Transfer from appropriated to unappropriated    | — |   | — |   | — |   | (40 | ) | — |   | 40 |   | — |   | — |  |
| Dividend to parent                              | — |   | — |   | — |   | — |   | — |   | (10,000 | ) | — |   | (10,000 | ) |
| Receipt of capital from parent                  | — |   | — |   | 3,000 |   | — |   | — |   | — |   | — |   | 3,000 |  |
| Balance at September 30, 2015              | 150,000 |   | $ | 1,500 |   | $ | 204,517 |   | $ | 18 |   | $ | 15 |   | $ | 48,464 |   | $ | (2,977 | ) | $ | 251,537 |  |
|                                            |
| Balance at January 1, 2016                      | 150,000 |   | $ | 1,500 |   | $ | 214,517 |   | $ | 8 |   | $ | 15 |   | $ | 53,590 |   | $ | (18,808 | ) | $ | 250,822 |  |
| Comprehensive income:                           |   |   |   |   |   |   |   |   |
| Net income                                      | — |   | — |   | — |   | — |   | — |   | 21,707 |   | — |   | 21,707 |  |
| Other comprehensive income, net of tax          | — |   | — |   | — |   | — |   | — |   | — |   | 22,771 |   | 22,771 |  |
| Total comprehensive income                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 44,478 |  |
| Transfer from appropriated to unappropriated    | — |   | — |   | — |   | (8 | ) | — |   | 8 |   | — |   | — |  |
| Receipt of capital from parent                  | — |   | — |   | 25,000 |   | — |   | — |   | — |   | — |   | 25,000 |  |
| Balance at September 30, 2016              | 150,000 |   | $ | 1,500 |   | $ | 239,517 |   | $ | — |   | $ | 15 |   | $ | 75,305 |   | $ | 3,963 |   | $ | 320,300 |  |
| See Notes to Consolidated Financial Statements. |

----

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |
|                                                                              | Nine Months Ended September 30, |
|                                                                              | 2016 |   | 2015 |
|                                                                              | (in thousands) |
| Cash Flows from Operating Activities                                              |   |   |   |
| Net income                                                                        | $ | 21,707 |  |   | $ | 17,555 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |   |   |
| Amortization of premiums, accretion of discounts, net                             | 17,622 |  |   | 21,079 |  |
| Deferred income tax benefit                                                       | (27 | ) |   | (195 | ) |
| Net realized (gain) loss on Available-for-Sale securities                         | (133 | ) |   | 404 |  |
| Other-than-temporary impairments and provision for loan loss                      | 71 |  |   | 1,173 |  |
| Changes in operating assets and liabilities:                                      |   |   |   |
| Dividends and interest receivable                                                 | (4,707 | ) |   | (4,575 | ) |
| Certificate reserves, net                                                         | 3,986 |  |   | (3,322 | ) |
| Deferred taxes, net                                                               | (12,261 | ) |   | (177 | ) |
| Current taxes payable to/receivable from parent, net                              | 4,000 |  |   | 2,457 |  |
| Derivatives, net of collateral                                                    | (87 | ) |   | 665 |  |
| Other liabilities                                                                 | 3,398 |  |   | (2,744 | ) |
| Other, net                                                                        | (48 | ) |   | 5,144 |  |
| Net cash provided by operating activities                                         | 33,521 |  |   | 37,464 |  |
|                                                                              |   |   |   |
| Cash Flows from Investing Activities                                              |   |   |   |
| Available-for-Sale securities:                                                    |   |   |   |
| Sales                                                                             | 7,036 |  |   | 8,066 |  |
| Maturities, redemptions and calls                                                 | 1,173,295 |  |   | 845,506 |  |
| Purchases                                                                         | (2,017,710 | ) |   | (1,136,019 | ) |
| Syndicated loans, commercial mortgage loans and real estate owned:                |   |   |   |
| Sales, maturities and repayments                                                  | 46,331 |  |   | 23,542 |  |
| Purchases and fundings                                                            | (17,085 | ) |   | (51,569 | ) |
| Certificate loans, net                                                            | 146 |  |   | 167 |  |
| Net cash used in investing activities                                             | (807,987 | ) |   | (310,307 | ) |
|                                                                              |   |   |   |
| Cash Flows from Financing Activities                                              |   |   |   |
| Payments from certificate holders and other additions                             | 3,183,717 |  |   | 2,181,579 |  |
| Certificate maturities and cash surrenders                                        | (2,376,283 | ) |   | (1,853,095 | ) |
| Capital contribution from parent                                                  | 25,000 |  |   | 3,000 |  |
| Dividend to parent                                                                | — |  |   | (10,000 | ) |
| Net cash provided by financing activities                                         | 832,434 |  |   | 321,484 |  |
|                                                                              |   |   |   |
| Net increase in cash and cash equivalents                                         | 57,968 |  |   | 48,641 |  |
| Cash and cash equivalents at beginning of period                                  | 137,557 |  |   | 68,632 |  |
| Cash and cash equivalents at end of period                                        | $ | 195,525 |  |   | $ | 117,273 |  |
|                                                                              |   |   |   |
| Supplemental disclosures including non-cash transactions:                         |   |   |   |
| Cash paid for income taxes                                                        | $ | 17,827 |  |   | $ | 11,133 |  |
| Cash paid for interest                                                            | 25,413 |  |   | 21,751 |  |
| See Notes to Consolidated Financial Statements.                                   |

----

----

|                                                                                                                                                                       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                       |  |  |  |  |  |  |  |
|                                                                                                                                                                  | September 30, 2016 |   | December 31, 2015 |
|                                                                                                                                                                  | (in thousands) |
| Available-for-Sale securities:                                                                                                                                        |   |
| Fixed maturities, at fair value (amortized cost: 2016, $5,583,459; 2015, $4,768,263)                                                                                  | $ | 5,585,597 |  |   | $ | 4,734,442 |  |
| Common stocks, at fair value (cost: 2016, $2,313; 2015, $2,273)                                                                                                       | 6,464 |  |   | 6,237 |  |
| Commercial mortgage loans and syndicated loans, at cost (less allowance for loan losses: 2016, $3,755; 2015, $3,964; fair value: 2016, $169,338; 2015, $195,595) | 168,278 |  |   | 196,385 |  |
| Certificate loans — secured by certificate reserves, at cost, which approximates fair value                                                                     | 540 |  |   | 686 |  |
| Total                                                                                                                                                                 | $ | 5,760,879 |  |   | $ | 4,937,750 |  |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities      | September 30, 2016 |
| Amortized Cost                      | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Noncredit OTTI (1) |
|                                     | (in thousands) |
| Residential mortgage backed securities   | $ | 3,021,219 |   | $ | 14,293 |   | $ | (23,801 | ) | $ | 3,011,711 |   | $ | (544 | ) |
| Corporate debt securities                | 1,534,472 |   | 9,894 |   | (545 | ) | 1,543,821 |   | 3 |  |
| Commercial mortgage backed securities    | 426,557 |   | 2,669 |   | (315 | ) | 428,911 |   | — |  |
| Asset backed securities                  | 551,896 |   | 1,803 |   | (2,613 | ) | 551,086 |   | — |  |
| State and municipal obligations          | 48,939 |   | 693 |   | (6 | ) | 49,626 |   | — |  |
| U.S. government and agencies obligations | 376 |   | 66 |   | — |   | 442 |   | — |  |
| Common stocks                            | 2,313 |   | 4,317 |   | (166 | ) | 6,464 |   | 2,316 |  |
| Total                                    | $ | 5,585,772 |   | $ | 33,735 |   | $ | (27,446 | ) | $ | 5,592,061 |   | $ | 1,775 |  |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities      | December 31, 2015 |
| Amortized Cost                      | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Noncredit OTTI (1) |
|                                     | (in thousands) |
| Residential mortgage backed securities   | $ | 2,543,904 |   | $ | 9,628 |   | $ | (29,686 | ) | $ | 2,523,846 |   | $ | (3,707 | ) |
| Corporate debt securities                | 1,426,967 |   | 842 |   | (11,344 | ) | 1,416,465 |   | 3 |  |
| Commercial mortgage backed securities    | 318,962 |   | 1,534 |   | (1,125 | ) | 319,371 |   | — |  |
| Asset backed securities                  | 428,694 |   | 1,509 |   | (5,161 | ) | 425,042 |   | — |  |
| State and municipal obligations          | 49,359 |   | 73 |   | (140 | ) | 49,292 |   | — |  |
| U.S. government and agencies obligations | 377 |   | 49 |   | — |   | 426 |   | — |  |
| Common stocks                            | 2,273 |   | 4,179 |   | (215 | ) | 6,237 |   | 2,185 |  |
| Total                                    | $ | 4,770,536 |   | $ | 17,814 |   | $ | (47,671 | ) | $ | 4,740,679 |   | $ | (1,519 | ) |

----

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Ratings                | September 30, 2016 |   | December 31, 2015 |
| Amortized Cost         | Fair Value | Percent of Total Fair Value |   | Amortized Cost | Fair Value | Percent of Total Fair Value |
|                   | (in thousands, except percentages) |
| AAA                    | $ | 2,779,439 |   | $ | 2,783,262 |   | 50 | % |   | $ | 1,909,817 |   | $ | 1,903,427 |   | 40 | % |
| AA                     | 318,688 |   | 316,956 |   | 6 |  |   | 328,041 |   | 326,326 |   | 7 |  |
| A                      | 639,929 |   | 638,660 |   | 11 |  |   | 705,780 |   | 700,629 |   | 15 |  |
| BBB                    | 1,703,273 |   | 1,707,431 |   | 31 |  |   | 1,647,627 |   | 1,633,796 |   | 35 |  |
| Below investment grade | 142,130 |   | 139,288 |   | 2 |  |   | 176,998 |   | 170,264 |   | 3 |  |
| Total fixed maturities | $ | 5,583,459 |   | $ | 5,585,597 |   | 100 | % |   | $ | 4,768,263 |   | $ | 4,734,442 |   | 100 | % |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities         | September 30, 2016 |
| 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 | 73 |   | $ | 974,923 |   | $ | (4,397 | ) | 135 |   | $ | 884,318 |   | $ | (19,404 | ) | 208 |   | $ | 1,859,241 |   | $ | (23,801 | ) |
| Corporate debt securities              | 24 |   | 271,979 |   | (389 | ) | 6 |   | 45,146 |   | (156 | ) | 30 |   | 317,125 |   | (545 | ) |
| Commercial mortgage backed securities  | 10 |   | 74,545 |   | (267 | ) | 2 |   | 14,766 |   | (48 | ) | 12 |   | 89,311 |   | (315 | ) |
| Asset backed securities                | 14 |   | 71,650 |   | (1,029 | ) | 13 |   | 195,423 |   | (1,584 | ) | 27 |   | 267,073 |   | (2,613 | ) |
| State and municipal obligations        | 3 |   | 4,564 |   | (6 | ) | — |   | — |   | — |   | 3 |   | 4,564 |   | (6 | ) |
| Common stocks                          | — |   | — |   | — |   | 3 |   | 662 |   | (166 | ) | 3 |   | 662 |   | (166 | ) |
| Total                                  | 124 |   | $ | 1,397,661 |   | $ | (6,088 | ) | 159 |   | $ | 1,140,315 |   | $ | (21,358 | ) | 283 |   | $ | 2,537,976 |   | $ | (27,446 | ) |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities         | December 31, 2015 |
| 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 | 91 |   | $ | 1,147,485 |   | $ | (8,645 | ) | 112 |   | $ | 778,481 |   | $ | (21,041 | ) | 203 |   | $ | 1,925,966 |   | $ | (29,686 | ) |
| Corporate debt securities              | 81 |   | 1,055,464 |   | (9,109 | ) | 13 |   | 116,913 |   | (2,235 | ) | 94 |   | 1,172,377 |   | (11,344 | ) |
| Commercial mortgage backed securities  | 16 |   | 127,376 |   | (922 | ) | 1 |   | 15,776 |   | (203 | ) | 17 |   | 143,152 |   | (1,125 | ) |
| Asset backed securities                | 23 |   | 127,431 |   | (1,156 | ) | 13 |   | 243,721 |   | (4,005 | ) | 36 |   | 371,152 |   | (5,161 | ) |
| State and municipal obligations        | 13 |   | 34,829 |   | (140 | ) | — |   | — |   | — |   | 13 |   | 34,829 |   | (140 | ) |
| Common stocks                          | 2 |   | 522 |   | (166 | ) | 2 |   | 91 |   | (49 | ) | 4 |   | 613 |   | (215 | ) |
| Total                                  | 226 |   | $ | 2,493,107 |   | $ | (20,138 | ) | 141 |   | $ | 1,154,982 |   | $ | (27,533 | ) | 367 |   | $ | 3,648,089 |   | $ | (47,671 | ) |

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                 | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                                                 | 2016 |   | 2015 |   | 2016 |   | 2015 |
|                                                                                 | (in thousands) |
| Beginning balance                                                                    | $ | 46,486 |  |   | $ | 51,334 |  |   | $ | 51,966 |  |   | $ | 64,913 |  |
| Reductions for securities sold during the period (realized)                          | — |  |   | — |  |   | (5,550 | ) |   | (14,502 | ) |
| Credit losses for which an other-than-temporary impairment was previously recognized | 1 |  |   | — |  |   | 71 |  |   | 923 |  |
| Ending balance                                                                       | $ | 46,487 |  |   | $ | 51,334 |  |   | $ | 46,487 |  |   | $ | 51,334 |  |

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                               | Net Unrealized Investment Gains (Losses) |   | Deferred Income Tax |   | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses) |
|                                                               | (in thousands) |
| Balance at January 1, 2015                                         | $ | (6,380 | ) |   | $ | 2,352 |  |   | $ | (4,028 | ) |   |
| Net unrealized securities gains arising during the period (1)      | 336 |  |   | (149 | ) |   | 187 |  |   |
| Reclassification of losses included in net income                  | 1,327 |  |   | (463 | ) |   | 864 |  |   |
| Balance at September 30, 2015                                 | $ | (4,717 | ) |   | $ | 1,740 |  |   | $ | (2,977 | ) | (2)  |
|                                                               |
| Balance at January 1, 2016                                         | $ | (29,858 | ) |   | $ | 11,050 |  |   | $ | (18,808 | ) |   |
| Net unrealized securities gains arising during the period (1) | 36,209 |  |   | (13,397 | ) |   | 22,812 |  |   |
| Reclassification of gains included in net income                   | (62 | ) |   | 21 |  |   | (41 | ) |   |
| Balance at September 30, 2016                                 | $ | 6,289 |  |   | $ | (2,326 | ) |   | $ | 3,963 |  | (2)  |

----

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                             | 2016 |   | 2015 |   | 2016 |   | 2015 |
|                             | (in thousands) |
| Gross realized gains             | $ | 1,032 |  |   | $ | 73 |  |   | $ | 1,290 |  |   | $ | 99 |  |
| Gross realized losses            | — |  |   | (402 | ) |   | (1,157 | ) |   | (503 | ) |
| Other-than-temporary impairments | (1 | ) |   | — |  |   | (71 | ) |   | (923 | ) |
| Total                            | $ | 1,031 |  |   | $ | (329 | ) |   | $ | 62 |  |   | $ | (1,327 | ) |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |
|                                   | Amortized Cost |   | Fair Value |
|                                   | (in thousands) |
| Due within one year                    | $ | 371,894 |  |   | $ | 372,468 |  |
| Due after one year through five years  | 1,201,695 |  |   | 1,210,862 |  |
| Due after five years through 10 years  | 9,986 |  |   | 10,282 |  |
| Due after 10 years                     | 212 |  |   | 277 |  |
|                                   | 1,583,787 |  |   | 1,593,889 |  |
| Residential mortgage backed securities | 3,021,219 |  |   | 3,011,711 |  |
| Commercial mortgage backed securities  | 426,557 |  |   | 428,911 |  |
| Asset backed securities                | 551,896 |  |   | 551,086 |  |
| Common stocks                          | 2,313 |  |   | 6,464 |  |
| Total                                  | $ | 5,585,772 |  |   | $ | 5,592,061 |  |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
|                                  | September 30, |
|                                  | 2016 |   | 2015 |
|                                  | (in thousands) |
| Beginning balance                     | $ | 3,964 |  |   | $ | 3,464 |  |
| Charge-offs                           | (209 | ) |   | — |  |
| Provisions                            | — |  |   | 250 |  |
| Ending balance                        | $ | 3,755 |  |   | $ | 3,714 |  |
|                                  |   |   |   |
| Individually evaluated for impairment | $ | — |  |   | $ | — |  |
| Collectively evaluated for impairment | 3,755 |  |   | 3,714 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |
|                                  | September 30, 2016 |   | December 31, 2015 |
|                                  | (in thousands) |
| Individually evaluated for impairment | $ | 3,423 |  |   | $ | 4,173 |  |
| Collectively evaluated for impairment | 168,610 |  |   | 196,176 |  |
| Total                                 | $ | 172,033 |  |   | $ | 200,349 |  |

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Loans |   | Percentage |
|                            | September 30, 2016 |   | December 31, 2015 |   | September 30, 2016 |   | December 31, 2015 |
|                            | (in thousands) |   |   |   |   |
| East North Central              | $ | 3,115 |  |   | $ | 3,327 |  |   | 4 | % |   | 3 | % |
| East South Central              | 5,660 |  |   | 6,107 |  |   | 7 |  |   | 6 |  |
| Middle Atlantic                 | 9,266 |  |   | 6,477 |  |   | 11 |  |   | 6 |  |
| Mountain                        | 5,976 |  |   | 6,347 |  |   | 7 |  |   | 6 |  |
| New England                     | 7,313 |  |   | 7,544 |  |   | 9 |  |   | 8 |  |
| Pacific                         | 11,873 |  |   | 24,715 |  |   | 14 |  |   | 25 |  |
| South Atlantic                  | 24,057 |  |   | 29,971 |  |   | 30 |  |   | 31 |  |
| West North Central              | 7,385 |  |   | 9,385 |  |   | 9 |  |   | 9 |  |
| West South Central              | 7,374 |  |   | 6,378 |  |   | 9 |  |   | 6 |  |
|                            | 82,019 |  |   | 100,251 |  |   | 100 | % |   | 100 | % |
| Less: allowance for loan losses | 2,341 |  |   | 2,341 |  |   |   |
| Total                           | $ | 79,678 |  |   | $ | 97,910 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Loans |   | Percentage |
|                            | September 30, 2016 |   | December 31, 2015 |   | September 30, 2016 |   | December 31, 2015 |
|                            | (in thousands) |   |   |   |   |
| Apartments                      | $ | 14,850 |  |   | $ | 28,576 |  |   | 18 | % |   | 29 | % |
| Industrial                      | 16,727 |  |   | 15,510 |  |   | 20 |  |   | 15 |  |
| Office                          | 6,638 |  |   | 8,955 |  |   | 8 |  |   | 9 |  |
| Retail                          | 32,111 |  |   | 34,384 |  |   | 40 |  |   | 34 |  |
| Hotel                           | 982 |  |   | 1,100 |  |   | 1 |  |   | 1 |  |
| Other                           | 10,711 |  |   | 11,726 |  |   | 13 |  |   | 12 |  |
|                            | 82,019 |  |   | 100,251 |  |   | 100 | % |   | 100 | % |
| Less: allowance for loan losses | 2,341 |  |   | 2,341 |  |   |   |
| Total                           | $ | 79,678 |  |   | $ | 97,910 |  |

----

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

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | September 30, 2016 |
|                                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                                     | (in thousands) |
| Assets                                   |   |  |   |   |  |   |   |  |   |   |  |
| Cash equivalents                         | $ | — |  |   | $ | 187,332 |  |   | $ | — |  |   | $ | 187,332 |  |
| Available-for-Sale securities:           |   |  |   |   |  |   |   |  |   |   |  |
| Residential mortgage backed securities   | — |  |   | 2,847,478 |  |   | 164,233 |  |   | 3,011,711 |  |
| Corporate debt securities                | — |  |   | 1,394,786 |  |   | 149,035 |  |   | 1,543,821 |  |
| Commercial mortgage backed securities    | — |  |   | 428,911 |  |   | — |  |   | 428,911 |  |
| Asset backed securities                  | — |  |   | 518,372 |  |   | 32,714 |  |   | 551,086 |  |
| State and municipal obligations          | — |  |   | 49,626 |  |   | — |  |   | 49,626 |  |
| U.S. government and agencies obligations | 442 |  |   | — |  |   | — |  |   | 442 |  |
| Common stocks                            | 1,881 |  |   | 4,096 |  |   | 487 |  |   | 6,464 |  |
| Total Available-for-Sale securities      | 2,323 |  |   | 5,243,269 |  |   | 346,469 |  |   | 5,592,061 |  |
| Equity derivative contracts              | 9 |  |   | 36,703 |  |   | — |  |   | 36,712 |  |
| Total assets at fair value               | $ | 2,332 |  |   | $ | 5,467,304 |  |   | $ | 346,469 |  |   | $ | 5,816,105 |  |
|                                     |
| Liabilities                              |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves                     | $ | — |  |   | $ | 7,780 |  |   | $ | — |  |   | $ | 7,780 |  |
| Equity derivative contracts              | — |  |   | 30,164 |  |   | — |  |   | 30,164 |  |
| Total liabilities at fair value          | $ | — |  |   | $ | 37,944 |  |   | $ | — |  |   | $ | 37,944 |  |

----

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     | December 31, 2015 |
|                                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                                     | (in thousands) |
| Assets                                   |   |  |   |   |  |   |   |  |   |   |  |
| Cash equivalents                         | $ | — |  |   | $ | 134,537 |  |   | $ | — |  |   | $ | 134,537 |  |
| Available-for-Sale securities:           |   |  |   |   |  |   |   |  |   |   |  |
| Residential mortgage backed securities   | — |  |   | 2,327,512 |  |   | 196,334 |  |   | 2,523,846 |  |
| Corporate debt securities                | — |  |   | 1,226,161 |  |   | 190,304 |  |   | 1,416,465 |  |
| Commercial mortgage backed securities    | — |  |   | 319,371 |  |   | — |  |   | 319,371 |  |
| Asset backed securities                  | — |  |   | 395,527 |  |   | 29,515 |  |   | 425,042 |  |
| State and municipal obligations          | — |  |   | 49,292 |  |   | — |  |   | 49,292 |  |
| U.S. government and agencies obligations | 426 |  |   | — |  |   | — |  |   | 426 |  |
| Common stocks                            | 1,941 |  |   | 4,067 |  |   | 229 |  |   | 6,237 |  |
| Total Available-for-Sale securities      | 2,367 |  |   | 4,321,930 |  |   | 416,382 |  |   | 4,740,679 |  |
| Equity derivative contracts              | — |  |   | 18,493 |  |   | — |  |   | 18,493 |  |
| Total assets at fair value               | $ | 2,367 |  |   | $ | 4,474,960 |  |   | $ | 416,382 |  |   | $ | 4,893,709 |  |
|                                     |   |   |   |   |   |   |   |
| Liabilities                              |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves                     | $ | — |  |   | $ | 4,130 |  |   | $ | — |  |   | $ | 4,130 |  |
| Equity derivative contracts              | 4 |  |   | 14,928 |  |   | — |  |   | 14,932 |  |
| Total liabilities at fair value          | $ | 4 |  |   | $ | 19,058 |  |   | $ | — |  |   | $ | 19,062 |  |

|                                                                                                             |
|-------------------------------------------------------------------------------------------------------------|
|                                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                        | Available-for-Sale Securities |   |
| Residential Mortgage Backed Securities                                                                      |   | Corporate Debt Securities |   | Asset Backed Securities |   | Common Stocks |   | Total |
|                                                                                                        | (in thousands) |   |
| Balance, July 1, 2016                                                                                  | $ | 137,109 |  |   | $ | 153,167 |  |   | $ | 35,299 |  |   | $ | 74 |  |   | $ | 325,649 |  |   |
| Total gains (losses) included in:                                                                           |
| Net income                                                                                                  | 114 |  |   | (105 | ) |   | 45 |  |   | — |  |   | 54 |  | (1)  |
| Other comprehensive income                                                                                  | 1,666 |  |   | (27 | ) |   | (67 | ) |   | 53 |  |   | 1,625 |  |   |
| Purchases                                                                                                   | 37,386 |  |   | — |  |   | 12,500 |  |   | — |  |   | 49,886 |  |   |
| Settlements                                                                                                 | (12,042 | ) |   | (4,000 | ) |   | — |  |   | — |  |   | (16,042 | ) |   |
| Transfers into Level 3                                                                                      | — |  |   | — |  |   | — |  |   | 360 |  |   | 360 |  |   |
| Transfers out of Level 3                                                                                    | — |  |   | — |  |   | (15,063 | ) |   | — |  |   | (15,063 | ) |   |
| Balance, September 30, 2016                                                                            | $ | 164,233 |  |   | $ | 149,035 |  |   | $ | 32,714 |  |   | $ | 487 |  |   | $ | 346,469 |  |   |
|                                                                                                        |
| Change in unrealized gains (losses) relating to Level 3 assets held at September 30, 2016 included in: |
| Investment income                                                                                           | $ | 114 |  |   | $ | (99 | ) |   | $ | 45 |  |   | $ | — |  |   | $ | 60 |  |   |

----

|                                                                                                             |
|-------------------------------------------------------------------------------------------------------------|
|                                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                        | Available-for-Sale Securities |   |
| Residential Mortgage Backed Securities                                                                      |   | Corporate Debt Securities |   | Commercial Mortgage BackedSecurities |   | Asset Backed Securities |   | Common Stocks |   | Total |
|                                                                                                        | (in thousands) |   |
| Balance, July 1, 2015                                                                                  | $ | 268,685 |  |   | $ | 169,944 |  |   | $ | 9,992 |  |   | $ | 16,550 |  |   | $ | 365 |  |   | $ | 465,536 |  |   |
| Total gains (losses) included in:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                  | 59 |  |   | (369 | ) |   | — |  |   | 50 |  |   | — |  |   | (260 | ) | (1)  |
| Other comprehensive income                                                                                  | (696 | ) |   | (108 | ) |   | — |  |   | 450 |  |   | 3 |  |   | (351 | ) |   |
| Purchases                                                                                                   | 55,551 |  |   | 32,502 |  |   | — |  |   | 4,474 |  |   | — |  |   | 92,527 |  |   |
| Settlements                                                                                                 | (13,615 | ) |   | — |  |   | — |  |   | (7,500 | ) |   | — |  |   | (21,115 | ) |   |
| Transfers into Level 3                                                                                      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   |
| Transfers out of Level 3                                                                                    | (68,091 | ) |   | — |  |   | (9,992 | ) |   | — |  |   | (198 | ) |   | (78,281 | ) |   |
| Balance, September 30, 2015                                                                            | $ | 241,893 |  |   | $ | 201,969 |  |   | $ | — |  |   | $ | 14,024 |  |   | $ | 170 |  |   | $ | 458,056 |  |   |
|                                                                                                        |
| Change in unrealized gains (losses) relating to Level 3 assets held at September 30, 2015 included in: |
| Investment income                                                                                           | $ | 59 |  |   | $ | (369 | ) |   | $ | — |  |   | $ | 50 |  |   | $ | — |  |   | $ | (260 | ) |   |

|                                                                                                             |
|-------------------------------------------------------------------------------------------------------------|
|                                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                        | Available-for-Sale Securities |   |
| Residential Mortgage Backed Securities                                                                      |   | Corporate Debt Securities |   | Asset Backed Securities |   | Common Stocks |   | Total |
|                                                                                                        | (in thousands) |   |
| Balance, January 1, 2016                                                                                    | $ | 196,334 |  |   | $ | 190,304 |  |   | $ | 29,515 |  |   | $ | 229 |  |   | $ | 416,382 |  |   |
| Total gains (losses) included in:                                                                           |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                  | 460 |  |   | (1,624 | ) |   | 101 |  |   | — |  |   | (1,063 | ) | (1)  |
| Other comprehensive income                                                                                  | 296 |  |   | 2,355 |  |   | (129 | ) |   | 53 |  |   | 2,575 |  |   |
| Purchases                                                                                                   | 37,386 |  |   | — |  |   | 28,289 |  |   | — |  |   | 65,675 |  |   |
| Settlements                                                                                                 | (45,644 | ) |   | (42,000 | ) |   | — |  |   | — |  |   | (87,644 | ) |   |
| Transfers into Level 3                                                                                      | — |  |   | — |  |   | — |  |   | 360 |  |   | 360 |  |   |
| Transfers out of Level 3                                                                                    | (24,599 | ) |   | — |  |   | (25,062 | ) |   | (155 | ) |   | (49,816 | ) |   |
| Balance, September 30, 2016                                                                            | $ | 164,233 |  |   | $ | 149,035 |  |   | $ | 32,714 |  |   | $ | 487 |  |   | $ | 346,469 |  |   |
|                                                                                                        |
| Change in unrealized gains (losses) relating to Level 3 assets held at September 30, 2016 included in: |
| Investment income                                                                                           | $ | 460 |  |   | $ | (295 | ) |   | $ | 101 |  |   | $ | — |  |   | $ | 266 |  |   |

----

|                                                                                                             |
|-------------------------------------------------------------------------------------------------------------|
|                                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                        | Available-for-Sale Securities |   |
| Residential Mortgage Backed Securities                                                                      |   | Corporate Debt Securities |   | Commercial Mortgage BackedSecurities |   | Asset Backed Securities |   | Common Stocks |   | Total |
|                                                                                                        | (in thousands) |   |
| Balance, January 1, 2015                                                                                    | $ | 196,558 |  |   | $ | 165,501 |  |   | $ | — |  |   | $ | 18,188 |  |   | $ | 908 |  |   | $ | 381,155 |  |   |
| Total gains (losses) included in:                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                  | (89 | ) |   | (696 | ) |   | — |  |   | 114 |  |   | — |  |   | (671 | ) | (1)  |
| Other comprehensive income                                                                                  | (384 | ) |   | 479 |  |   | — |  |   | 250 |  |   | (57 | ) |   | 288 |  |   |
| Purchases                                                                                                   | 241,367 |  |   | 36,685 |  |   | 9,992 |  |   | 11,974 |  |   | — |  |   | 300,018 |  |   |
| Settlements                                                                                                 | (34,244 | ) |   | — |  |   | — |  |   | (16,502 | ) |   | — |  |   | (50,746 | ) |   |
| Transfers into Level 3                                                                                      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   |
| Transfers out of Level 3                                                                                    | (161,315 | ) |   | — |  |   | (9,992 | ) |   | — |  |   | (681 | ) |   | (171,988 | ) |   |
| Balance, September 30, 2015                                                                            | $ | 241,893 |  |   | $ | 201,969 |  |   | $ | — |  |   | $ | 14,024 |  |   | $ | 170 |  |   | $ | 458,056 |  |   |
|                                                                                                        |
| Change in unrealized gains (losses) relating to Level 3 assets held at September 30, 2015 included in: |
| Investment income                                                                                           | $ | 89 |  |   | $ | (696 | ) |   | $ | — |  |   | $ | 114 |  |   | $ | — |  |   | $ | (493 | ) |   |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |
|                                                             | September 30, 2016 |
|                                                             | Fair Value |   | Valuation Technique |   | Unobservable Input |   | Range (Weighted Average) |
|                                                             | (in thousands) |   |   |   |   |   |   |
| Corporate debt securities    (private placements) | $ | 149,032 |  |   | Discounted cash flow | Yield/spread to U.S. Treasuries |   | 1.0% - 1.8% (1.2%) |

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |
|                                                             | December 31, 2015 |
|                                                             | Fair Value |   | Valuation Technique |   | Unobservable Input |   | Range (Weighted Average) |
|                                                             | (in thousands) |   |   |   |   |   |   |
| Corporate debt securities    (private placements) | $ | 190,301 |  |   | Discounted cash flow | Yield/spread to U.S. Treasuries |   | 1.2% - 1.9% (1.4%) |

----

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | September 30, 2016 |
| Carrying Value       |   | Fair Value |
| Level 1              |   | Level 2 |   | Level 3 |   | Total |
| (in thousands)       |
| Financial Assets          |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Syndicated loans          | $ | 88,600 |  |   | $ | — |  |   | $ | 85,539 |  |   | $ | 3,207 |  |   | $ | 88,746 |  |
| Commercial mortgage loans | 79,678 |  |   | — |  |   | — |  |   | 80,592 |  |   | 80,592 |  |
| Certificate loans         | 540 |  |   | — |  |   | 540 |  |   | — |  |   | 540 |  |
| Financial Liabilities     |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves      | $ | 5,638,536 |  |   | $ | — |  |   | $ | — |  |   | $ | 5,632,274 |  |   | $ | 5,632,274 |  |

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | December 31, 2015 |
| Carrying Value       |   | Fair Value |
| Level 1              |   | Level 2 |   | Level 3 |   | Total |
| (in thousands)       |
| Financial Assets          |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Syndicated loans          | $ | 98,475 |  |   | $ | — |  |   | $ | 93,224 |  |   | $ | 2,947 |  |   | $ | 96,171 |  |
| Commercial mortgage loans | 97,910 |  |   | — |  |   | — |  |   | 99,424 |  |   | 99,424 |  |
| Certificate loans         | 686 |  |   | — |  |   | 686 |  |   | — |  |   | 686 |  |
| Financial Liabilities     |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves      | $ | 4,830,766 |  |   | $ | — |  |   | $ | — |  |   | $ | 4,822,541 |  |   | $ | 4,822,541 |  |

----

|                                    |
|------------------------------------|
|                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                               | September 30, 2016 |
| Gross Amounts of Recognized Assets |   | Gross Amounts Offset in the Consolidated Balance Sheets |   | Amounts of Assets Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   | Net Amount |
| Financial Instruments (1)     |   | Cash Collateral |
| (in thousands)                |
| Derivatives:                       |
| OTC                                | $ | 36,704 |  |   | $ | — |  |   | $ | 36,704 |  |   | $ | (30,164 | ) |   | $ | (4,992 | ) |   | $ | 1,548 |  |
| Exchange-traded                    | 8 |  |   | — |  |   | 8 |  |   | — |  |   | — |  |   | 8 |  |
| Total                              | $ | 36,712 |  |   | $ | — |  |   | $ | 36,712 |  |   | $ | (30,164 | ) |   | $ | (4,992 | ) |   | $ | 1,556 |  |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                    | December 31, 2015 |
| Gross Amounts of Recognized Assets |   | Gross Amounts Offset in the Consolidated Balance Sheets |   | Amounts of Assets Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   | Net Amount |
| Financial Instruments (1)          |   | Cash Collateral |
| (in thousands)                     |
| Derivatives:                            |
| OTC                                     | $ | 18,493 |  |   | $ | — |  |   | $ | 18,493 |  |   | $ | (14,928 | ) |   | $ | (1,950 | ) |   | $ | 1,615 |  |
| Total                                   | $ | 18,493 |  |   | $ | — |  |   | $ | 18,493 |  |   | $ | (14,928 | ) |   | $ | (1,950 | ) |   | $ | 1,615 |  |

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                         | September 30, 2016 |
| Gross Amounts of Recognized Liabilities |   | Gross Amounts Offset in the Consolidated Balance Sheets |   | Amounts of Liabilities Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   | Net Amount |
| Financial Instruments (1)               |   | Cash Collateral |
| (in thousands)                          |
| Derivatives:                                 |
| OTC                                          | $ | 30,164 |  |   | $ | — |  |   | $ | 30,164 |  |   | $ | (30,164 | ) |   | $ | — |  |   | $ | — |  |
| Total                                        | $ | 30,164 |  |   | $ | — |  |   | $ | 30,164 |  |   | $ | (30,164 | ) |   | $ | — |  |   | $ | — |  |

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                         | December 31, 2015 |
| Gross Amounts of Recognized Liabilities |   | Gross Amounts Offset in the Consolidated Balance Sheets |   | Amounts of Liabilities Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   | Net Amount |
| Financial Instruments (1)               |   | Cash Collateral |
| (in thousands)                          |
| Derivatives:                                 |
| OTC                                          | $ | 14,928 |  |   | $ | — |  |   | $ | 14,928 |  |   | $ | (14,928 | ) |   | $ | — |  |   | $ | — |  |
| Exchange-traded                              | 4 |  |   | — |  |   | 4 |  |   | — |  |   | — |  |   | 4 |  |
| Total                                        | $ | 14,932 |  |   | $ | — |  |   | $ | 14,932 |  |   | $ | (14,928 | ) |   | $ | — |  |   | $ | 4 |  |

----

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | September 30, 2016 |   | December 31, 2015 |
|                                                             | Notional |   | Gross Fair Value | Notional |   | Gross Fair Value |
|                                                             | Assets |   | Liabilities | Assets |   | Liabilities |
|                                                             | (in thousands) |
| Derivatives not designated as hedging instruments |   |   |   |   |   |   |   |   |   |   |
|   Equity contracts(1)                                  | $ | 921,713 |  |   | $ | 36,712 |  |   | $ | 30,164 |  |   | $ | 935,957 |  |   | $ | 18,493 |  |   | $ | 14,932 |  |
| Embedded derivatives                                             |   |   |   |   |   |   |   |   |   |   |   |
|   Stock market certificates(2)                         | N/A |  |   | — |  |   | 7,780 |  |   | N/A |  |   | — |  |   | 4,130 |  |
| Total derivatives                                                | $ | 921,713 |  |   | $ | 36,712 |  |   | $ | 37,944 |  |   | $ | 935,957 |  |   | $ | 18,493 |  |   | $ | 19,062 |  |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 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,                                      |   | Nine Months Ended September 30, |
| 2016                                                                  |   | 2015 |   | 2016 |   | 2015 |
|                                                                  | (in thousands) |
| Equity contracts                                                      |   |   |   |   |   |   |   |   |   |   |
| Stock market certificates                                             |   | Net provision for certificate reserves |   | $ | 1,475 |  |   | $ | (2,327 | ) |   | $ | 1,044 |  |   | $ | (1,652 | ) |
| Stock market certificates embedded derivatives                        |   | Net provision for certificate reserves |   | (1,338 | ) |   | 2,095 |  |   | (1,334 | ) |   | 1,747 |  |
| Total                                                                 |   | $ | 137 |  |   | $ | (232 | ) |   | $ | (290 | ) |   | $ | 95 |  |

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AOCI Reclassification                                     |   | Location of (Gain) Loss Recognized in Income |   | Three Months Ended September 30, |   | Nine Months Ended September 30, |
| 2016                                                           |   | 2015 |   | 2016 |   | 2015 |
|                                                                |   |   |   | (in thousands) |
| Unrealized net losses (gains) on Available-for-Sale securities |   | Net realized loss (gain) on investments |   | $ | (1,031 | ) |   | $ | 329 |  |   | $ | (62 | ) |   | $ | 1,327 |  |
| Tax expense (benefit)                                          |   | Income tax expense (benefit) |   | 360 |  |   | (114 | ) |   | 21 |  |   | (463 | ) |
| Net of tax                                                     |   |   |   | $ | (671 | ) |   | $ | 215 |  |   | $ | (41 | ) |   | $ | 864 |  |

----

----

----

----

----

|        |
|--------|
|        |  |  |  |  |
|   |   |   | AMERIPRISE CERTIFICATE COMPANY |   |
|   |   |   | (Registrant) |   |
|   |   |   |   |   |
| Date:  | November 2, 2016 | By | /s/ Abu M. Arif |   |
|   |   |   | Abu M. Arif |   |
|   |   |   | Chief Executive Officer |   |
|   |   |   |   |   |
|   |   |   |   |   |
| Date:  | November 2, 2016 | By | /s/ Janet C. Langner |   |
|   |   |   | Janet C. Langner |   |
|   |   |   | Chief Financial Officer |   |

----

|         |             |
|---------|-------------|
| Exhibit | Description |

----

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

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

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

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

|     |                                                                                                                                                                                    |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 32* | Certification of Abu M. Arif and Janet C. Langner pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |