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

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

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

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

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

|                                         |
|-----------------------------------------|
|                                         |  |  |
| Class                                   |   | Outstanding at November 3, 2014 |
| Common Shares (par value $10 per share) |   | 150,000 shares |

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

----

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

----

|                                                                                       |
|---------------------------------------------------------------------------------------|
|                                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                  | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                                                  | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                                                  |   |   |   |   |   |   |   |
| Investment income                                                                     | $ | 21,236 |  |   | $ | 20,146 |  |   | $ | 65,582 |  |   | $ | 64,023 |  |
| Investment expenses                                                                   | 6,878 |  |   | 6,250 |  |   | 21,289 |  |   | 19,008 |  |
| Net investment income before provision for certificate reserves and income taxes | 14,358 |  |   | 13,896 |  |   | 44,293 |  |   | 45,015 |  |
| Net provision for certificate reserves                                                | 6,626 |  |   | 7,209 |  |   | 19,979 |  |   | 22,905 |  |
| Net investment income before income taxes                                             | 7,732 |  |   | 6,687 |  |   | 24,314 |  |   | 22,110 |  |
| Income tax expense                                                                    | 2,781 |  |   | 2,431 |  |   | 8,952 |  |   | 8,090 |  |
| Net investment income                                                                 | 4,951 |  |   | 4,256 |  |   | 15,362 |  |   | 14,020 |  |
|                                                                                  |   |   |   |   |   |   |   |
| Net realized gain (loss) on investments                                               | (238 | ) |   | 163 |  |   | 234 |  |   | (1,945 | ) |
| Income tax expense (benefit)                                                          | (83 | ) |   | 57 |  |   | 82 |  |   | (681 | ) |
| Net realized gain (loss) on investments, after-tax                                    | (155 | ) |   | 106 |  |   | 152 |  |   | (1,264 | ) |
| Net income                                                                            | $ | 4,796 |  |   | $ | 4,362 |  |   | $ | 15,514 |  |   | $ | 12,756 |  |
|                                                                                  |   |   |   |   |   |   |   |
| Supplemental Disclosures:                                                             |   |  |   |   |  |   |   |  |   |   |  |
| Total other-than-temporary impairment losses on securities                            | $ | (77 | ) |   | $ | (299 | ) |   | $ | (133 | ) |   | $ | (582 | ) |
| Portion of loss recognized in other comprehensive income (loss) (before taxes)   | 1 |  |   | (11 | ) |   | (517 | ) |   | (1,693 | ) |
| Net impairment losses recognized in net realized gain (loss) on investments           | $ | (76 | ) |   | $ | (310 | ) |   | $ | (650 | ) |   | $ | (2,275 | ) |
|  See Notes to Consolidated Financial Statements.                                 |

----

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                     | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                                     | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                                     |   |   |   |   |   |   |   |
| Net income                                                               | $ | 4,796 |  |   | $ | 4,362 |  |   | $ | 15,514 |  |   | $ | 12,756 |  |
| Other comprehensive income (loss), net of tax:                           |   |  |   |   |  |   |   |  |   |   |  |
| Net unrealized gains (losses) on securities:                             |   |  |   |   |  |   |   |  |   |   |  |
| Net unrealized securities gains (losses) arising during the period       | (5,876 | ) |   | 6,717 |  |   | 3,977 |  |   | (10,418 | ) |
| Reclassification of net securities (gains) losses included in net income | 155 |  |   | (106 | ) |   | (151 | ) |   | 1,252 |  |
| Total other comprehensive income (loss), net of tax                      | (5,721 | ) |   | 6,611 |  |   | 3,826 |  |   | (9,166 | ) |
| Total comprehensive income (loss)                                        | $ | (925 | ) |   | $ | 10,973 |  |   | $ | 19,340 |  |   | $ | 3,590 |  |
| See Notes to Consolidated Financial Statements.                          |

----

|                                                                     |
|---------------------------------------------------------------------|
|                                                                     |  |  |  |  |  |  |  |
|                                                                | September 30, 2014 |   | December 31, 2013 |
| Assets                                                              | (unaudited) |   |   |  |
| Qualified Assets                                                    |   |  |   |   |  |
| Cash and cash equivalents                                           | $ | 105,678 |  |   | $ | 74,526 |  |
| Investments in unaffiliated issuers                                 | 4,389,018 |  |   | 4,118,758 |  |
| Receivables                                                         | 28,799 |  |   | 26,586 |  |
| Equity options, purchased                                           | 39,769 |  |   | 72,848 |  |
| Total qualified assets                                              | 4,563,264 |  |   | 4,292,718 |  |
| Deferred taxes, net                                                 | 680 |  |   | 1,245 |  |
| Total assets                                                        | $ | 4,563,944 |  |   | $ | 4,293,963 |  |
|                                                                |   |   |   |
| Liabilities and Shareholder's Equity                                |   |  |   |   |  |
| Liabilities                                                         |   |  |   |   |  |
| Certificate reserves                                                | $ | 4,230,439 |  |   | $ | 3,983,707 |  |
| Current taxes payable to parent                                     | 3,950 |  |   | 2,924 |  |
| Equity options, written                                             | 34,103 |  |   | 65,958 |  |
| Payable for investment securities purchased                         | 27,165 |  |   | 1,566 |  |
| Due to related party and other liabilities                          | 25,772 |  |   | 16,633 |  |
| Total liabilities                                                   | 4,321,429 |  |   | 4,070,788 |  |
|                                                                |   |   |   |
| Shareholder's Equity                                                |   |  |   |   |  |
| Common shares ($10 par value, 150,000 shares authorized and issued) | 1,500 |  |   | 1,500 |  |
| Additional paid-in capital                                          | 201,517 |  |   | 201,517 |  |
| Total retained earnings                                             | 38,813 |  |   | 23,299 |  |
| Accumulated other comprehensive income (loss), net of tax           | 685 |  |   | (3,141 | ) |
| Total shareholder's equity                                          | 242,515 |  |   | 223,175 |  |
| Total liabilities and shareholder's equity                          | $ | 4,563,944 |  |   | $ | 4,293,963 |  |
| See Notes to Consolidated Financial Statements.                     |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |   |   |   |   |   |   | Retained Earnings |   |   |   |   |
|                                            | Number of Outstanding Shares |   | Common Shares |   | Additional Paid-In Capital |   | Appropriated for Pre-Declared Additional Credits and Interest |   | Appropriated for Additional Interest on Advance Payments |   | Unappropriated |   | Accumulated Other Com-prehensive Income (Loss), Net of Tax |   | Total |
|                                            |
| Balance at January 1, 2013                      | 150,000 |  |   | $ | 1,500 |  |   | $ | 191,517 |  |   | $ | — |  |   | $ | 15 |  |   | $ | 9,137 |  |   | $ | 5,371 |  |   | $ | 207,540 |  |
| Comprehensive 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 atSeptember 30, 2013               | 150,000 |  |   | $ | 1,500 |  |   | $ | 201,517 |  |   | $ | 8 |  |   | $ | 15 |  |   | $ | 21,885 |  |   | $ | (3,795 | ) |   | $ | 221,130 |  |
|                                            |
| Balance at January 1, 2014                      | 150,000 |  |   | $ | 1,500 |  |   | $ | 201,517 |  |   | $ | 26 |  |   | $ | 15 |  |   | $ | 23,258 |  |   | $ | (3,141 | ) |   | $ | 223,175 |  |
| Comprehensive income:                           |
| Net income                                      | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 15,514 |  |   | — |  |   | 15,514 |  |
| Other comprehensive income, net of tax          | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 3,826 |  |   | 3,826 |  |
| Total comprehensive income                      |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   | 19,340 |  |
| Transfer to appropriated/from unappropriated    | — |  |   | — |  |   | — |  |   | 47 |  |   | — |  |   | (47 | ) |   | — |  |   | — |  |
| Balance atSeptember 30, 2014               | 150,000 |  |   | $ | 1,500 |  |   | $ | 201,517 |  |   | $ | 73 |  |   | $ | 15 |  |   | $ | 38,725 |  |   | $ | 685 |  |   | $ | 242,515 |  |
| See Notes to Consolidated Financial Statements. |

----

|                                                                                   |
|-----------------------------------------------------------------------------------|
|                                                                                   |  |  |  |  |  |  |  |
|                                                                              | Nine Months Ended September 30, |
|                                                                              | 2014 |   | 2013 |
| Cash Flows from Operating Activities                                              |
| Net income                                                                        | $ | 15,514 |  |   | $ | 12,756 |  |
| Adjustments to reconcile net income to net cash provided by operating activities: |
| Amortization of premiums, accretion of discounts, net                             | 23,499 |  |   | 25,198 |  |
| Deferred income tax provision (benefit)                                           | (437 | ) |   | 950 |  |
| Net realized gain on Available-for-Sale securities                                | (882 | ) |   | (349 | ) |
| Other net realized (gain) loss                                                    | (1 | ) |   | 19 |  |
| Other-than-temporary impairments and provision for loan loss                      | 650 |  |   | 2,275 |  |
| Changes in operating assets and liabilities:                                      |
| Dividends and interest receivable                                                 | (1,284 | ) |   | (1,469 | ) |
| Certificate reserves, net                                                         | (837 | ) |   | (590 | ) |
| Deferred taxes, net                                                               | (1,404 | ) |   | — |  |
| Current taxes payable to/receivable from parent, net                              | 1,026 |  |   | 5,355 |  |
| Derivatives, net of collateral                                                    | 3,434 |  |   | 215 |  |
| Other liabilities                                                                 | 5,426 |  |   | 622 |  |
| Other, net                                                                        | 682 |  |   | (3,013 | ) |
| Net cash provided by operating activities                                         | 45,386 |  |   | 41,969 |  |
| Cash Flows from Investing Activities                                              |
| Available-for-Sale securities:                                                    |
| Sales                                                                             | 26,277 |  |   | 27,957 |  |
| Maturities, redemptions and calls                                                 | 743,172 |  |   | 780,845 |  |
| Purchases                                                                         | (1,025,867 | ) |   | (1,223,983 | ) |
| Syndicated loans, commercial mortgage loans and real estate owned:                |
| Sales, maturities and repayments                                                  | 14,349 |  |   | 30,736 |  |
| Purchases and fundings                                                            | (20,013 | ) |   | (11,274 | ) |
| Certificate loans, net                                                            | 279 |  |   | 611 |  |
| Net cash used in investing activities                                             | (261,803 | ) |   | (395,108 | ) |
| Cash Flows from Financing Activities                                              |
| Payments from certificate holders and other additions                             | 1,893,534 |  |   | 1,751,868 |  |
| Certificate maturities and cash surrenders                                        | (1,645,965 | ) |   | (1,377,170 | ) |
| Capital contribution from parent                                                  | — |  |   | 10,000 |  |
| Net cash provided by financing activities                                         | 247,569 |  |   | 384,698 |  |
| Net increase in cash and cash equivalents                                         | 31,152 |  |   | 31,559 |  |
| Cash and cash equivalents at beginning of period                                  | 74,526 |  |   | 89,232 |  |
| Cash and cash equivalents at end of period                                        | $ | 105,678 |  |   | $ | 120,791 |  |
| Supplemental disclosures including non-cash transactions:                         |
| Cash paid (received) for income taxes                                             | $ | 3,854 |  |   | $ | (243 | ) |
| Cash paid for interest                                                            | 23,308 |  |   | 28,053 |  |
| See Notes to Consolidated Financial Statements.                                   |

----

----

|                                                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                  |  |  |  |  |  |  |  |
|                                                                                                                                                             | September 30, 2014 |   | December 31, 2013 |
| Available-for-Sale securities:                                                                                                                                   |   |  |   |   |  |
| Fixed maturities, at fair value (amortized cost: 2014, $4,239,186; 2013, $3,987,510)                                                                             | $ | 4,235,238 |  |   | $ | 3,978,248 |  |
| Common stocks, at fair value (cost: 2014, $2,343; 2013, $2,215)                                                                                                  | 7,370 |  |   | 6,323 |  |
| Commercial mortgage loans and syndicated loans, at cost (less allowance for loan losses: 2014, $3,464; 2013, $4,461; fair value: 2014, $147,820; 2013, $134,114) | 144,443 |  |   | 131,241 |  |
| Certificate loans — secured by certificate reserves, at cost, which approximates fair value                                                                | 940 |  |   | 1,219 |  |
| Real estate owned, at fair value less costs to sell                                                                                                              | 1,027 |  |   | 1,727 |  |
| Total                                                                                                                                                            | $ | 4,389,018 |  |   | $ | 4,118,758 |  |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                     |   | September 30, 2014 |
| Description of Securities      |   | Amortized Cost |   | Gross Unrealized Gains |   | Gross Unrealized Losses |   | Fair Value |   | Noncredit OTTI (1) |
|                                     |   | (in thousands) |
| Residential mortgage backed securities   |   | $ | 2,242,368 |  |   | $ | 15,782 |  |   | $ | (28,544 | ) |   | $ | 2,229,606 |  |   | $ | (7,146 | ) |
| Corporate debt securities                |   | 1,095,363 |  |   | 6,571 |  |   | (1,538 | ) |   | 1,100,396 |  |   | 3 |  |
| Commercial mortgage backed securities    |   | 401,042 |  |   | 4,482 |  |   | (741 | ) |   | 404,783 |  |   | — |  |
| Asset backed securities                  |   | 500,035 |  |   | 3,066 |  |   | (3,070 | ) |   | 500,031 |  |   | — |  |
| U.S. government and agencies obligations |   | 378 |  |   | 44 |  |   | — |  |   | 422 |  |   | — |  |
| Common stocks                            |   | 2,343 |  |   | 5,044 |  |   | (17 | ) |   | 7,370 |  |   | 2,220 |  |
| Total                                    |   | $ | 4,241,529 |  |   | $ | 34,989 |  |   | $ | (33,910 | ) |   | $ | 4,242,608 |  |   | $ | (4,923 | ) |

----

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

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                   |   | September 30, 2014 |   | December 31, 2013 |
| Ratings                |   | Amortized Cost |   | Fair Value |   | Percent of Total Fair Value |   | Amortized Cost |   | Fair Value |   | Percent of Total Fair Value |
|                   |   | (in thousands, except percentages) |
| AAA                    |   | $ | 1,769,681 |  |   | $ | 1,776,381 |  |   | 42 | % |   | $ | 1,763,939 |  |   | $ | 1,766,688 |  |   | 44 | % |
| AA                     |   | 248,014 |  |   | 248,196 |  |   | 6 |  |   | 102,397 |  |   | 104,544 |  |   | 3 |  |
| A                      |   | 948,909 |  |   | 945,216 |  |   | 22 |  |   | 1,125,224 |  |   | 1,122,795 |  |   | 28 |  |
| BBB                    |   | 1,054,205 |  |   | 1,057,385 |  |   | 25 |  |   | 733,685 |  |   | 741,023 |  |   | 19 |  |
| Below investment grade |   | 218,377 |  |   | 208,060 |  |   | 5 |  |   | 262,265 |  |   | 243,198 |  |   | 6 |  |
| Total fixed maturities |   | $ | 4,239,186 |  |   | $ | 4,235,238 |  |   | 100 | % |   | $ | 3,987,510 |  |   | $ | 3,978,248 |  |   | 100 | % |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Description of Securities         |   | September 30, 2014 |
| Less than 12 months     |   | 12 months or more |   | Total |
| Number of Securities                   |   | Fair Value |   | Unrealized Losses |   | Number of Securities |   | Fair Value |   | Unrealized Losses |   | Number of Securities |   | Fair Value |   | Unrealized Losses |
|                                   |   | (in thousands, except number of securities) |
| Residential mortgage backed securities | 55 |  |   | $ | 636,978 |  |   | $ | (6,322 | ) |   | 85 |  |   | $ | 629,255 |  |   | $ | (22,222 | ) |   | 140 |  |   | $ | 1,266,233 |  |   | $ | (28,544 | ) |
| Corporate debt securities              | 38 |  |   | 443,439 |  |   | (1,526 | ) |   | 1 |  |   | 11,864 |  |   | (12 | ) |   | 39 |  |   | 455,303 |  |   | (1,538 | ) |
| Commercial mortgage backed securities  | 8 |  |   | 92,941 |  |   | (479 | ) |   | 3 |  |   | 29,629 |  |   | (262 | ) |   | 11 |  |   | 122,570 |  |   | (741 | ) |
| Asset backed securities                | 8 |  |   | 97,111 |  |   | (479 | ) |   | 10 |  |   | 188,690 |  |   | (2,591 | ) |   | 18 |  |   | 285,801 |  |   | (3,070 | ) |
| Common stocks                          |   | 3 |  |   | 209 |  |   | (17 | ) |   | — |  |   | — |  |   | — |  |   | 3 |  |   | 209 |  |   | (17 | ) |
| Total                                  | 112 |  |   | $ | 1,270,678 |  |   | $ | (8,823 | ) |   | 99 |  |   | $ | 859,438 |  |   | $ | (25,087 | ) |   | 211 |  |   | $ | 2,130,116 |  |   | $ | (33,910 | ) |

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

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                 | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                                                 | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                                                 | (in thousands) |
| Beginning balance                                                                    | $ | 83,696 |  |   | $ | 81,522 |  |   | $ | 83,122 |  |   | $ | 79,557 |  |
| Reductions for securities sold during the period (realized)                          | (18,891 | ) |   | — |  |   | (18,891 | ) |   | — |  |
| Credit losses for which an other-than-temporary impairment was previously recognized | 76 |  |   | 310 |  |   | 650 |  |   | 2,275 |  |
| Ending balance                                                                       | $ | 64,881 |  |   | $ | 81,832 |  |   | $ | 64,881 |  |   | $ | 81,832 |  |

----

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                               | NetUnrealizedInvestmentGains (Losses) |   | DeferredIncome Tax |   | Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized InvestmentGains (Losses) |
|                                                               | (in thousands) |
| Balance at January 1, 2013                                         | $ | 8,426 |  |   | $ | (3,055 | ) |   | $ | 5,371 |   |   |
| Net unrealized securities losses arising during the period (1)     | (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 | ) | (2)  |
|                                                               |   |   |   |   |   |   |
| Balance at January 1, 2014                                         | $ | (5,154 | ) |   | $ | 2,013 |  |   | $ | (3,141 | ) |   |
| Net unrealized securities gains arising during the period (1) | 6,465 |  |   | (2,488 | ) |   | 3,977 |   |   |
| Reclassification of gains included in net income                   | (232 | ) |   | 81 |  |   | (151 | ) |   |
| Balance at September 30, 2014                                 | $ | 1,079 |  |   | $ | (394 | ) |   | $ | 685 |   | (2)  |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                             | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                             | (in thousands) |
| Gross realized gains             | $ | 1,224 |  |   | $ | 473 |  |   | $ | 2,272 |  |   | $ | 751 |  |
| Gross realized losses            | (1,387 | ) |   | — |  |   | (1,390 | ) |   | (402 | ) |
| Other-than-temporary impairments | (76 | ) |   | (310 | ) |   | (650 | ) |   | (2,275 | ) |
| Total                            | $ | (239 | ) |   | $ | 163 |  |   | $ | 232 |  |   | $ | (1,926 | ) |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |
|                                   | Amortized Cost |   | Fair Value |
|                                   | (in thousands) |
| Due within one year                    | $ | 230,370 |  |   | $ | 231,486 |  |
| Due after one year through five years  | 865,158 |  |   | 869,075 |  |
| Due after five years through 10 years  | — |  |   | — |  |
| Due after 10 years                     | 213 |  |   | 257 |  |
|                                   | 1,095,741 |  |   | 1,100,818 |  |
| Residential mortgage backed securities | 2,242,368 |  |   | 2,229,606 |  |
| Commercial mortgage backed securities  | 401,042 |  |   | 404,783 |  |
| Asset backed securities                | 500,035 |  |   | 500,031 |  |
| Common stocks                          | 2,343 |  |   | 7,370 |  |
| Total                                  | $ | 4,241,529 |  |   | $ | 4,242,608 |  |

----

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

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |
|                                  | 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, 2014 |
|                                  | Commercial Mortgage Loans |   | Syndicated Loans |   | Total |
|                                  | (in thousands) |
| Individually evaluated for impairment | $ | 1,763 |  |   | $ | 1,874 |  |   | $ | 3,637 |  |
| Collectively evaluated for impairment | 106,161 |  |   | 38,109 |  |   | 144,270 |  |
| Total                                 | $ | 107,924 |  |   | $ | 39,983 |  |   | $ | 147,907 |  |

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

----

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Loans |   | Percentage |
|                            | September 30, 2014 |   | December 31, 2013 |   | September 30, 2014 |   | December 31, 2013 |
|                            | (in thousands) |   |   |   |   |
| East North Central              | $ | 3,210 |  |   | $ | 3,276 |  |   | 3 | % |   | 3 | % |
| Middle Atlantic                 | 7,536 |  |   | 8,148 |  |   | 7 |  |   | 7 |  |
| Mountain                        | 8,941 |  |   | 9,402 |  |   | 8 |  |   | 8 |  |
| New England                     | 10,187 |  |   | 10,440 |  |   | 10 |  |   | 9 |  |
| Pacific                         | 27,190 |  |   | 29,830 |  |   | 25 |  |   | 25 |  |
| South Atlantic                  | 30,087 |  |   | 34,188 |  |   | 28 |  |   | 29 |  |
| West North Central              | 11,990 |  |   | 13,576 |  |   | 11 |  |   | 11 |  |
| West South Central              | 8,783 |  |   | 9,352 |  |   | 8 |  |   | 8 |  |
|                            | 107,924 |  |   | 118,212 |  |   | 100 | % |   | 100 | % |
| Less: allowance for loan losses | 2,341 |  |   | 2,341 |  |   |   |
| Total                           | $ | 105,583 |  |   | $ | 115,871 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                            | Loans |   | Percentage |
|                            | September 30, 2014 |   | December 31, 2013 |   | September 30, 2014 |   | December 31, 2013 |
|                            | (in thousands) |   |   |   |   |
| Apartments                      | $ | 33,713 |  |   | $ | 34,199 |  |   | 31 | % |   | 29 | % |
| Industrial                      | 16,434 |  |   | 23,069 |  |   | 15 |  |   | 20 |  |
| Office                          | 10,913 |  |   | 11,141 |  |   | 10 |  |   | 9 |  |
| Retail                          | 32,215 |  |   | 34,099 |  |   | 30 |  |   | 29 |  |
| Hotel                           | 1,292 |  |   | 1,403 |  |   | 1 |  |   | 1 |  |
| Other                           | 13,357 |  |   | 14,301 |  |   | 13 |  |   | 12 |  |
|                            | 107,924 |  |   | 118,212 |  |   | 100 | % |   | 100 | % |
| Less: allowance for loan losses | 2,341 |  |   | 2,341 |  |   |   |
| Total                           | $ | 105,583 |  |   | $ | 115,871 |  |

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | 2014 |   | 2013 |
|                      | 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 |  |   | 288 |  |   | 1 |  |   | 244 |  |
| Total                     | $ | 1 |  |   | $ | 288 |  |   | $ | 2 |  |   | $ | 2,232 |  |

|         |                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------|
| 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, 2014 |
|                                     | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                                     | (in thousands) |
| Assets                                   |   |  |   |   |  |   |   |  |   |   |  |
| Cash equivalents                         | $ | — |  |   | $ | 82,695 |  |   | $ | — |  |   | $ | 82,695 |  |
| Available-for-Sale securities:           |   |  |   |   |  |   |   |  |   |   |  |
| Residential mortgage backed securities   | — |  |   | 2,058,053 |  |   | 171,553 |  |   | 2,229,606 |  |
| Corporate debt securities                | — |  |   | 912,783 |  |   | 187,613 |  |   | 1,100,396 |  |
| Commercial mortgage backed securities    | — |  |   | 404,783 |  |   | — |  |   | 404,783 |  |
| Asset backed securities                  | — |  |   | 465,384 |  |   | 34,647 |  |   | 500,031 |  |
| U.S. government and agencies obligations | 422 |  |   | — |  |   | — |  |   | 422 |  |
| Common stocks                            | 2,858 |  |   | 4,219 |  |   | 293 |  |   | 7,370 |  |
| Total Available-for-Sale securities      | 3,280 |  |   | 3,845,222 |  |   | 394,106 |  |   | 4,242,608 |  |
| Equity options, purchased                | — |  |   | 39,769 |  |   | — |  |   | 39,769 |  |
| Total assets at fair value               | $ | 3,280 |  |   | $ | 3,967,686 |  |   | $ | 394,106 |  |   | $ | 4,365,072 |  |
|                                     |   |   |   |   |   |   |   |
| Liabilities                              |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves                     | $ | — |  |   | $ | 5,838 |  |   | $ | — |  |   | $ | 5,838 |  |
| Equity options, written                  | — |  |   | 34,103 |  |   | — |  |   | 34,103 |  |
| Total liabilities at fair value          | $ | — |  |   | $ | 39,941 |  |   | $ | — |  |   | $ | 39,941 |  |

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

----

|                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                   | Available-for-Sale Securities |   |
|                                                                                                                   | Residential MortgageBackedSecurities |   | CorporateDebtSecurities |   | Commercial MortgageBackedSecurities |   | AssetBackedSecurities |   | CommonStocks |   | Total |   |
|                                                                                                                   | (in thousands) |   |
| Balance, July 1, 2014                                                                                             | $ | 204,004 |  |   | $ | 188,929 |  |   | $ | — |  |   | $ | 35,898 |  |   | $ | 506 |  |   | $ | 429,337 |  |   |
| Total gains (losses) included in:                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                             | (40 | ) |   | (426 | ) |   | — |  |   | 47 |  |   | — |  |   | (419 | ) | (1)  |
| Other comprehensive loss                                                                                               | 73 |  |   | (890 | ) |   | — |  |   | (114 | ) |   | — |  |   | (931 | ) |   |
| Purchases                                                                                                              | 78,666 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 78,666 |  |   |
| Settlements                                                                                                            | (5,546 | ) |   | — |  |   | — |  |   | (1,184 | ) |   | — |  |   | (6,730 | ) |   |
| Transfers out of Level 3                                                                                               | (105,604 | ) |   | — |  |   | — |  |   | — |  |   | (213 | ) |   | (105,817 | ) |   |
| Balance, September 30, 2014                                                                                       | $ | 171,553 |  |   | $ | 187,613 |  |   | $ | — |  |   | $ | 34,647 |  |   | $ | 293 |  |   | $ | 394,106 |  |   |
| Changes in unrealized gains (losses) relating to assets held at September 30, 2014 included in investment income: | $ | (40 | ) |   | $ | (426 | ) |   | $ | — |  |  | $ | 47 |  |   | $ | — |  |   | $ | (419 | ) |   |

|                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                   | Available-for-Sale Securities |   |
|                                                                                                                   | Residential MortgageBackedSecurities |   | CorporateDebtSecurities |   | Commercial MortgageBackedSecurities |   | AssetBackedSecurities |   | CommonStocks |   | 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 | ) |   | (283 | ) |   | (86 | ) |   | 49 |  |   | — |  |   | (349 | ) | (1)  |
| 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 |  |   |
| Changes in unrealized gains (losses) relating to assets held at September 30, 2013 included in investment income: | $ | (29 | ) |   | $ | (283 | ) |   | $ | — |  |   | $ | 49 |  |   | $ | — |  |   | $ | (263 | ) |   |

----

|                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                   | Available-for-Sale Securities |   |
|                                                                                                                   | Residential MortgageBackedSecurities |   | CorporateDebtSecurities |   | Commercial MortgageBackedSecurities |   | AssetBackedSecurities |   | CommonStocks |   | Total |   |
|                                                                                                                   | (in thousands) |   |
| Balance, January 1, 2014                                                                                               | $ | 128,906 |  |   | $ | 123,032 |  |   | $ | — |  |   | $ | 37,152 |  |   | $ | 273 |  |   | $ | 289,363 |  |   |
| Total gains (losses) included in:                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                                                             | (209 | ) |   | (1,177 | ) |   | — |  |   | 90 |  |   | — |  |   | (1,296 | ) | (1)  |
| Other comprehensive income                                                                                             | 364 |  |   | 31 |  |   | — |  |   | (156 | ) |   | 22 |  |   | 261 |  |   |
| Purchases                                                                                                              | 285,439 |  |   | 65,727 |  |   | 20,000 |  |   | 21,651 |  |   | 128 |  |   | 392,945 |  |   |
| Settlements                                                                                                            | (16,248 | ) |   | — |  |   | — |  |   | (4,110 | ) |   | — |  |   | (20,358 | ) |   |
| Transfers into Level 3                                                                                                 | — |  |   | — |  |   | — |  |   | — |  |   | 456 |  |   | 456 |  |   |
| Transfers out of Level 3                                                                                               | (226,699 | ) |   | — |  |   | (20,000 | ) |   | (19,980 | ) |   | (586 | ) |   | (267,265 | ) |   |
| Balance, September 30, 2014                                                                                       | $ | 171,553 |  |   | $ | 187,613 |  |   | $ | — |  |   | $ | 34,647 |  |   | $ | 293 |  |   | $ | 394,106 |  |   |
| Changes in unrealized gains (losses) relating to assets held at September 30, 2014 included in investment income: | $ | (198 | ) |   | $ | (1,177 | ) |   | $ | — |  |  | $ | 90 |  |   | $ | — |  |   | $ | (1,285 | ) |   |

|                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                   | Available-for-Sale Securities |   |
|                                                                                                                   | Residential MortgageBackedSecurities |   | CorporateDebtSecurities |   | Commercial MortgageBackedSecurities |   | AssetBackedSecurities |   | CommonStocks |   | Total |   |
|                                                                                                                   | (in thousands) |   |
| Balance, January 1, 2013                                                                                               | $ | 252,598 |  |   | $ | 110,643 |  |   | $ | 36,060 |  |   | $ | 22,223 |  |   | $ | 824 |  |   | $ | 422,348 |  |   |
| Total gains (losses) included in:                                                                                      |   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Net income                                                                                                             | (29 | ) |   | (848 | ) |   | (175 | ) |   | 114 |  |   | — |  |   | (938 | ) | (1)  |
| 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 |  |   |
| Changes in unrealized gains (losses) relating to assets held at September 30, 2013 included in investment income: | $ | (29 | ) |   | $ | (848 | ) |   | $ | — |  |   | $ | 104 |  |   | $ | — |  |   | $ | (773 | ) |   |

----

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |
|                                           | September 30, 2014 |
|                                           | Fair Value |   | Valuation Technique |   | Unobservable Input |   | Range (Weighted Average) |
|                                           | (in thousands) |   |   |   |   |   |   |
| Corporate debt securities (private placements) | $ | 167,579 |  |   | Discounted cash flow |   | Yield/spread to U.S. Treasuries |   | 0.9% - 1.3% (1.1%) |

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

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | September 30, 2014 |
|                      | Carrying Value |   | Fair Value |
|                      | Level 1 |   | Level 2 |   | Level 3 |   | Total |
|                      | (in thousands) |
| Financial Assets          |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Syndicated loans          | $ | 38,860 |  |   | $ | — |  |   | $ | 37,992 |  |   | $ | 1,079 |  |   | $ | 39,071 |  |
| Commercial mortgage loans | 105,583 |  |   | — |  |   | — |  |   | 108,749 |  |   | 108,749 |  |
| Certificate loans         | 940 |  |   | — |  |   | 940 |  |   | — |  |   | 940 |  |
| Financial Liabilities     |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Certificate reserves      | $ | 4,224,601 |  |   | $ | — |  |   | $ | — |  |   | $ | 4,218,075 |  |   | $ | 4,218,075 |  |

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

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                      | September 30, 2014 |
|                      | Gross Amounts of Recognized Assets |   | Gross Amounts Offset in the Consolidated Balance Sheets |   | Amounts of Assets Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   |   |
|                      |   |   |   | Financial Instruments (1) |   | Cash Collateral |   | Net Amount |
|                      | (in thousands) |
| Equity options, purchased | $ | 39,769 |  |   | $ | — |  |   | $ | 39,769 |  |   | $ | (34,103 | ) |   | $ | (3,787 | ) |   | $ | 1,879 |  |

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

----

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | September 30, 2014 |
|                    | Gross Amounts of Recognized Liabilities |   | Gross Amounts Offset in the Consolidated Balance Sheets |   | Amounts of Liabilities Presented in the Consolidated Balance Sheets |   | Gross Amounts Not Offset in the Consolidated Balance Sheets |   |   |
|                    |   |   |   | Financial Instruments (1) |   | Cash Collateral |   | Net Amount |
|                    | (in thousands) |
| Equity options, written | $ | 34,103 |  |   | $ | — |  |   | $ | 34,103 |  |   | $ | (34,103 | ) |   | $ | — |  |   | $ | — |  |

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

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Derivatives not designated as hedging instruments |   | Balance Sheet Location |   | Asset |   | Balance Sheet Location |   | Liability |
|                                                                  |   | September 30, 2014 |   | December 31, 2013 |   |   | September 30, 2014 |   | December 31, 2013 |
| (in thousands)                                                   |
| Equity                                                                |   |   |   |   |   |   |   |   |
| Stock market certificates                                             |   | Equity options, purchased |   | $ | 39,769 |  |   | $ | 72,848 |  |   | Equity options, written |   | $ | 34,103 |  |   | $ | 65,958 |  |
| Stock market certificates embedded derivatives                        |   | N/A |   | — |  |   | — |  |   | Certificate reserves |   | 5,838 |  |   | 7,160 |  |
| Total                                                                 |   |   |   | $ | 39,769 |  |   | $ | 72,848 |  |   |   |   | $ | 39,941 |  |   | $ | 73,118 |  |
| N/A Not applicable.                                                   |

----

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Derivatives not designated as hedging instruments |   | Location of Gain (Loss) on Derivatives Recognized in Income |   | Amount of Gain (Loss) on Derivatives Recognized in Income |
|                                                                  |   | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                                  |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                                  |   |   |   | (in thousands) |
| Equity                                                                |
| Stock market certificates                                             |   | Net provision for certificate reserves |   | $ | 358 |  |   | $ | 1,131 |  |   | $ | 2,026 |  |   | $ | 5,029 |  |
| Stock market certificates embedded derivatives                        |   | Net provision for certificate reserves |   | (418 | ) |   | (798 | ) |   | (1,976 | ) |   | (4,352 | ) |
| Total                                                                 |   |   |   | $ | (60 | ) |   | $ | 333 |  |   | $ | 50 |  |   | $ | 677 |  |

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AOCI Reclassification                                     |   | Location of (Gain) Loss Recognized in Income |   | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                           |   | 2014 |   | 2013 |   | 2014 |   | 2013 |
|                                                           |   |   |   | (in thousands) |
| Unrealized net losses (gains) on Available-for-Sale securities |   | Net investment income |   | $ | 239 |  |   | $ | (163 | ) |   | $ | (232 | ) |   | $ | 1,926 |  |
| Tax expense (benefit)                                          |   | Income tax provision |   | (84 | ) |   | 57 |  |   | 81 |  |   | (674 | ) |
| Net of tax                                                     |   |   |   | $ | 155 |  |   | $ | (106 | ) |   | $ | (151 | ) |   | $ | 1,252 |  |

----

----

----

----

|        |
|--------|
|        |  |  |  |
|   |   | AMERIPRISE CERTIFICATE COMPANY |   |
|   |   | (Registrant) |   |
|   |   |   |   |
| Date:  | November 3, 2014 | /s/ Abu M. Arif |   |
|   |   | Abu M. Arif |   |
|   |   | Chief Executive Officer |   |
|   |   |   |   |
|   |   |   |   |
| Date:  | November 3, 2014 | /s/ Ross P. Palacios |   |
|   |   | Ross P. Palacios |   |
|   |   | Chief Financial Officer |   |

----

----

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

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

|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10(b)* | Distribution Agreement, dated Dec. 31, 2006, between Registrant and Ameriprise Financial Services, Inc. filed electronically on or about Feb. 26, 2007 as Exhibit 1 to Post-Effective Amendment No. 35 to Registration Statement No. 2-95577 for Ameriprise Flexible Savings Certificate is incorporated herein by reference, as amended by that certain restated Exhibit A, effective September 19, 2014, filed electronically herewith as Exhibit 10(b) 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. |