AMERIPRISE FINANCIAL INC

Previous wording

Ameriprise Financial is a diversified financial services company with a 130-year history of providing financial solutions. We are a long-standing leader in financial planning and advice with $1.5 trillion in assets under management, administration and advisement as of March 31, 2025. We offer a broad range of products and services designed to achieve individual and institutional clients’ financial objectives.

Current wording

Ameriprise Financial is a diversified financial services company with a 130-year history of providing financial solutions. We are a long-standing leader in financial planning and advice with $1.6 trillion in assets under management, administration and advisement as of June 30, 2025. We offer a broad range of products and services designed to achieve individual and institutional clients’ financial objectives.

Previous wording

We operate our business in the broader context of the macroeconomic forces around us, including the global and U.S. economies, changes in interest and inflation rates, financial market volatility, fluctuations in foreign exchange rates, geopolitical strain, pandemics, the competitive environment, client and customer activities and preferences, and the various regulatory and legislative developments. Financial markets and macroeconomic conditions have had and will continue to have a significant impact on our operating and performance results. In addition, the business, political and regulatory environments in which we operate are subject to elevated uncertainty and substantial, frequent change. Accordingly, we expect to continue focusing on our key strategic objectives and obtaining operational and strategic leverage from our core capabilities. The success of these and other strategies may be affected by the factors discussed in Item 1A, “Risk Factors” in our 2024 10-K and other factors as discussed herein.

Current wording

We operate our business in the broader context of the macroeconomic forces around us, including the global and U.S. economies, changes in interest and inflation rates, financial market volatility, fluctuations in foreign exchange rates, geopolitical strain, the competitive environment, client and customer activities and preferences, and the various regulatory and legislative developments. Financial markets and macroeconomic conditions have had and will continue to have a significant impact on our operating and performance results. In addition, the business, political and regulatory environments in which we operate are subject to elevated uncertainty and substantial, frequent change. Accordingly, we expect to continue focusing on our key strategic objectives and obtaining operational and strategic leverage from our core capabilities. The success of these and other strategies may be affected by the factors discussed in Item 1A, “Risk Factors” in our 2024 10-K and other factors as discussed herein.

Previous wording

Total AUM increased $19.5 billion, or 2%, to $1.1 trillion as of March 31, 2025 compared to $1.1 trillion as of March 31, 2024 due to a $51.0 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $30.7 billion decrease in Asset Management AUM primarily driven by net outflows, partially offset by equity market appreciation. Total Assets Under Administration increased $16.6 billion, or 6%, to $314.1 billion as of March 31, 2025 compared to the prior year period primarily driven by equity market appreciation and an increase in third-party money market funds. Total Assets Under Advisement increased $5.9 billion, or 21%, to $33.7 billion as March 31, 2025 due to market appreciation and net inflows. See our segment results of operations discussion below for additional information on changes in our AUM.

Current wording

Total AUM increased $90.5 billion, or 8%, to $1.2 trillion as of June 30, 2025 compared to $1.1 trillion as of June 30, 2024 due to an $80.1 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $12.3 billion increase in Asset Management AUM primarily driven by equity market appreciation and a favorable foreign exchange impact, partially offset by net outflows. Total Assets Under Administration increased $32.6 billion, or 11%, to $331.0 billion as of June 30, 2025 compared to the prior year period primarily driven by equity market appreciation and an increase in third-party money market funds. Total Assets Under Advisement increased $2.8 billion, or 9%, to $33.8 billion as June 30, 2025 due to net inflows and market appreciation. See our segment results of operations discussion below for additional information on changes in our AUM.

Previous wording

Pretax income decreased $532 million, or 44%, for the three months ended March 31, 2025 compared to the prior year period. The following impacts were significant drivers of the period-over-period change in pretax income:

Current wording

Pretax income increased $300 million, or 29%, for the three months ended June 30, 2025 compared to the prior year period. The following impacts were significant drivers of the period-over-period change in pretax income:

Previous wording

•A favorable impact from higher average equity markets compared to the prior year period. Our average WEI, which is a proxy for equity movements on AUM, increased 15% in the three months ended March 31, 2025 compared to the prior year period.

Current wording

•A favorable impact from higher average equity markets compared to the prior year period. Our average WEI, which is a proxy for equity movements on AUM, increased 8% in the three months ended June 30, 2025 compared to the prior year period.

Previous wording

•The favorable impact from the cumulative impact of wrap net inflows and improved transactional activity.

Current wording

•The favorable impact from the cumulative impact of wrap net inflows.

Previous wording

Management and financial advice fees increased $203 million, or 8%, for the three months ended March 31, 2025 compared to the prior year period reflecting market appreciation and continued wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows and higher performance fees in the prior year period.

Current wording

Management and financial advice fees increased $144 million, or 6%, for the three months ended June 30, 2025 compared to the prior year period reflecting market appreciation and continued wrap account net inflows, partially offset by the cumulative impact of Asset Management net outflows.

Previous wording

Net investment income decreased $33 million, or 4%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting the unfavorable impact of declining investment portfolio yields, partially offset by the favorable impact of growth in Ameriprise Bank, FSB (“Ameriprise Bank”) customer deposits and structured variable annuities (“SVA”) products.

Current wording

Net investment income decreased $30 million, or 3%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting lower average invested assets supporting certificates and the unfavorable impact of declining investment portfolio yields, partially offset by the favorable impact of growth in Ameriprise Bank, FSB (“Ameriprise Bank”) customer deposits and structured variable annuities (“SVA”) products.

Previous wording

Benefits, claims, losses and settlement expenses increased $86 million, or 29%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting a $102 million increase in expense from market impacts on SVA embedded derivative, net of hedging activity. This increase was primarily the result of an unfavorable $1.3 billion change in the market impact on derivatives hedging the SVA embedded derivative and a favorable $1.2 billion change in the market impact on SVA embedded derivative. The increase in expense also reflects the impact of increased volume in SVAs, partially offset by the impact of lower sales of life contingent payout annuities.

Current wording

Benefits, claims, losses and settlement expenses decreased $74 million, or 22%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting a $57 million decrease in expense from market impacts on SVA embedded derivative, net of hedging activity. This decrease was primarily the result of a favorable $842 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $785 million change in the market impact on SVA embedded derivative. The decrease in expense also reflects the impact of lower sales of life contingent payout annuities, partially offset by the impact of increased volume in SVAs.

Previous wording

General and administrative expense decreased $44 million, or 5%, for the three months ended March 31, 2025 compared to the prior year period primarily due to ongoing benefits from our initiatives to enhance operational efficiency and effectiveness and higher prior year period performance fee related compensation, partially offset by expenses to accelerate our transition to cloud-based technology.

Current wording

General and administrative expense decreased $10 million, or 1%, for the three months ended June 30, 2025 compared to the prior year period primarily due to ongoing benefits from our initiatives to enhance operational efficiency and effectiveness and lower severance expenses, partially offset by higher volume related expenses and investments for business growth.

Previous wording

Total client assets increased $68.7 billion, or 7%, to $1.0 trillion compared to a year ago primarily due to market appreciation and client net inflows.

Current wording

Total client assets increased $111.7 billion, or 11%, to $1.1 trillion compared to a year ago primarily due to market appreciation and client net inflows.

Previous wording

Ending wrap account assets decreased $1.1 billion to $572.8 billion during the three months ended March 31, 2025 due to market depreciation of $9.8 billion and net inflows of $8.7 billion. Average advisory wrap account assets increased $88.0 billion, or 18%, compared to the prior year period primarily reflecting market appreciation and net inflows.

Current wording

Ending wrap account assets increased $42.4 billion to $615.2 billion during the three months ended June 30, 2025 due to market appreciation of $37.0 billion and net inflows of $5.4 billion. Average advisory wrap account assets increased $61.5 billion, or 12%, compared to the prior year period primarily reflecting market appreciation and net inflows.

Previous wording

Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing 7% from the prior year to $22.7 billion as of March 31, 2025. Ameriprise Certificate Company (“ACC”) client deposits decreased $2.5 billion from the prior year to $10.7 billion. After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the past five quarters. Third party cash products increased $6.9 billion to $46.0 billion driven by an increase of money market funds of $9.2 billion, partially offset by a decline in brokered CDs.

Current wording

Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing 5% from the prior year to $22.5 billion as of June 30, 2025. Ameriprise Certificate Company (“ACC”) client deposits decreased $2.6 billion from the prior year to $9.9 billion. After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the past six quarters. Third party cash products increased $5.9 billion to $47.2 billion driven by an increase of money market funds of $8.6 billion, partially offset by a decline in brokered CDs.

Previous wording

•In Ameriprise Bank, interest-bearing assets included $21.3 billion of Available-for-Sale securities, $1.8 billion of cash and cash equivalents, and $1.4 billion of other assets, primarily loans. The Ameriprise Bank investment portfolio securities are mostly rated AAA and primarily consist of structured assets, of which 15% were floating rate and sensitive to changes in short-term interest rates as of March 31, 2025. We took action to reduce the floating rate allocation from 26% as of March 31, 2024. The duration of Ameriprise Bank investments was 3.6 years as of March 31, 2025 compared to 3.4 years as of March 31, 2024. In the three months ended March 31, 2025, we purchased $2.6 billion of investments, which was primarily funded from security maturities and prepayments, as well as a portion of the cash and cash equivalents position and additional client deposits in the bank.

Current wording

•In Ameriprise Bank, assets included $20.3 billion of Available-for-Sale securities, $2.5 billion of cash and cash equivalents, and $1.5 billion of other assets, primarily loans. The Ameriprise Bank investment portfolio securities are mostly rated AAA and primarily consist of structured assets, of which 13% were floating rate and sensitive to changes in short-term interest rates as of June 30, 2025. We took action to reduce the floating rate allocation from 26% as of June 30, 2024. The duration of Ameriprise Bank investments was 3.7 years as of June 30, 2025 compared to 3.3 years as of June 30, 2024. In the three months ended June 30, 2025, we purchased $0.8 billion of investments, which was primarily funded from security maturities and prepayments.

Previous wording

•In ACC, interest-bearing assets include $10.5 billion of Available-for-Sale securities, $0.9 billion of cash and cash equivalents, and $0.1 billion of loans and other assets. The ACC investment portfolio securities are mostly rated AAA and primarily consist of structured assets and government bonds, of which 39% were floating rate and approximately 23% were 6-month Treasury Bills as of March 31, 2025. The duration of ACC investments was 1.3 years as of March 31, 2025 compared to 0.9 years as of March 31, 2024.

Current wording

•In ACC, assets include $9.8 billion of Available-for-Sale securities, $0.5 billion of cash and cash equivalents, and $0.1 billion of loans and other assets. The ACC investment portfolio securities are mostly rated AAA and primarily consist of structured assets and government bonds, of which 39% were floating rate and approximately 21% were 6-month Treasury Bills or short-term Federal Home Loan Bank securities as of June 30, 2025. The duration of ACC investments was 1.4 years as of June 30, 2025 compared to 0.9 years as of June 30, 2024.

Previous wording

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $30 million, or 4%, for the three months ended March 31, 2025 compared to the prior year period. This growth reflected the benefit from market appreciation and increased advisor productivity through the cumulative impact of client net inflows and higher transactional revenue, partially offset by lower interest revenue. Pretax adjusted operating margin was 28.5% for the three months ended March 31, 2025 compared to 29.8% for the prior year period.

Current wording

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, decreased $10 million, or 1%, for the three months ended June 30, 2025 compared to the prior year period. This reflected lower interest revenue, partially offset by the benefit from market appreciation and increased advisor productivity through the cumulative impact of client net inflows. Pretax adjusted operating margin was 28.9% for the three months ended June 30, 2025 compared to 31.1% for the prior year period.

Previous wording

Management and financial advice fees increased $210 million, or 14%, for the three months ended March 31, 2025 compared to the prior year period primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $88.0 billion, or 18%, compared to the prior year period primarily reflecting net inflows and market appreciation.

Current wording

Management and financial advice fees increased $166 million, or 11%, for the three months ended June 30, 2025 compared to the prior year period primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $61.5 billion, or 12%, compared to the prior year period primarily reflecting net inflows and market appreciation.

Previous wording

Net investment income, which excludes net realized investment gains or losses, decreased $60 million, or 11%, for the three months ended March 31, 2025 compared to the prior year period primarily due to lower average invested assets supporting certificates and the unfavorable impact of lower investment yields on the investment portfolios supporting the bank cash deposits and certificate products.

Current wording

Net investment income, which excludes net realized investment gains or losses, decreased $64 million, or 11%, for the three months ended June 30, 2025 compared to the prior year period primarily due to lower average invested assets supporting certificates and the unfavorable impact of lower investment yields on the investment portfolios supporting the bank cash deposits and certificate products.

Previous wording

•The average certificate reserve balance for ACC was $10.9 billion for the three months ended March 31, 2025 compared to $13.4 billion for the prior year period with the average crediting rate of 3.95% for the three months ended March 31, 2025 compared to 4.64% for the prior year period.

Current wording

•The average certificate reserve balance for ACC was $10.3 billion for the three months ended June 30, 2025 compared to $12.8 billion for the prior year period with the average crediting rate of 3.74% for the three months ended June 30, 2025 compared to 4.51% for the prior year period.

Previous wording

•The daily average interest-bearing deposit balance for the Ameriprise Bank increased to $22.2 billion for the three months ended March 31, 2025 compared to $21.3 billion for the prior year period with the average interest rate paid on deposits decreasing to 0.31% for the three months ended March 31, 2025 from 0.42% for the prior year period, which included both cash sweep and savings products.

Current wording

•The daily average interest-bearing deposit balance for the Ameriprise Bank increased to $22.4 billion for the three months ended June 30, 2025 compared to $21.4 billion for the prior year period with the average interest rate paid on deposits decreasing to 0.28% for the three months ended June 30, 2025 from 0.44% for the prior year period, which included both cash sweep and savings products.

Previous wording

(2) Columbia funds are available for purchase by U.S. customers. Out of 89 Columbia funds rated (based on primary share class), 3 received a 5-star Overall Rating and 37 received a 4-star Overall Rating. Out of 136 Threadneedle funds rated (based on highest-rated share class), 15 received a 5-star Overall Rating and 46 received a 4-star Overall Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

Current wording

(2) Columbia funds are available for purchase by U.S. customers. Out of 89 Columbia funds rated (based on primary share class), 39 received a 4-star Overall Rating. Out of 136 Threadneedle funds rated (based on highest-rated share class), 17 received a 5-star Overall Rating and 43 received a 4-star Overall Rating. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.

Previous wording

Total segment AUM decreased $23.5 billion, or 4%, during the three months ended March 31, 2025 primarily due to net outflows and market depreciation, partially offset by a favorable foreign exchange impact. Net outflows of $18.3 billion for the three months ended March 31, 2025 were primarily driven by a large institutional client repositioning into passive strategies, outflows from our U.S. real estate business, and higher retail redemptions due to market volatility.

Current wording

Total segment AUM increased $32.8 billion, or 5%, during the three months ended June 30, 2025 primarily due to market appreciation and a favorable foreign exchange impact, partially offset by net outflows. Net outflows of $8.7 billion for the three months ended June 30, 2025 included $1.6 billion of outflows from our U.S. real estate business.

Previous wording

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $35 million, or 17%, for the three months ended March 31, 2025 compared to the prior year period primarily due to equity market appreciation and the positive impact from expense management actions, partially offset by the cumulative impact from net outflows.

Current wording

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $4 million, or 2%, for the three months ended June 30, 2025 compared to the prior year period primarily due to equity market appreciation and the positive impact from expense management actions, partially offset by the cumulative impact from net outflows.

Previous wording

Management and financial advice fees decreased $2 million for the three months ended March 31, 2025 compared to the prior year period primarily due to the cumulative impact from net outflows and higher performance fees in the prior year period, partially offset by higher average equity markets.

Current wording

Management and financial advice fees decreased $17 million, or 2%, for the three months ended June 30, 2025 compared to the prior year period primarily due to the cumulative impact from net outflows, partially offset by higher average equity markets.

Previous wording

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on indexed universal life (“IUL”) benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $16 million, or 8%, for the three months ended March 31, 2025 compared to prior year period primarily reflecting higher investment portfolio yields.

Current wording

Our Retirement & Protection Solutions segment pretax adjusted operating earnings, which excludes net realized investment gains or losses (net of the reinsurance accrual), the market impact on variable annuity guaranteed benefits (net of hedges), the market impact on IUL benefits (net of hedges and the reinsurance accrual), mean reversion related impacts, and block transfer reinsurance transaction impacts increased $18 million, or 9%, for the three months ended June 30, 2025 compared to prior year period primarily reflecting higher investment portfolio yields, market appreciation and favorable life claims.

Previous wording

Variable annuity account balances decreased 1% to $83.5 billion as of March 31, 2025 compared to the prior year period due to net outflows of $3.9 billion, partially offset by market appreciation. Variable annuity sales decreased 8% compared to the prior year period primarily reflecting a decrease in sales of SVAs, partially offset by an increase in sales in traditional variable annuities without living benefit guarantees. Account values with living benefit riders declined to 49% as of March 31, 2025 compared to 53% a year ago reflecting our actions to optimize our business mix. This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.

Current wording

Variable annuity account balances increased 4% to $87.8 billion as of June 30, 2025 compared to the prior year period primarily due to market appreciation, partially offset by net outflows of $4.1 billion. Variable annuity sales decreased 9% compared to the prior year period primarily reflecting a very strong level of sales of SVAs in the prior year period. Account values with living benefit riders declined to 48% as of June 30, 2025 compared to 52% a year ago reflecting our actions to optimize our business mix. This trend is expected to continue and meaningfully shift the mix of business away from products with living benefit guarantees over time.

Previous wording

Net investment income, which excludes net realized investment gains or losses, increased $53 million, or 22%, for the three months ended March 31, 2025 compared to the prior year period primarily due to higher SVA balances and higher investment portfolio yields from investment portfolio repositioning.

Current wording

Net investment income, which excludes net realized investment gains or losses, increased $43 million, or 16%, for the three months ended June 30, 2025 compared to the prior year period primarily due to higher SVA balances and higher investment portfolio yields from investment portfolio repositioning.

Previous wording

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, decreased $13 million, or 6%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting lower sales of life contingent payout annuities, partially offset by increased volume in SVAs.

Current wording

Benefits, claims, losses and settlement expenses, which exclude the market impact on structured variable annuities indexed account embedded derivative (net of hedges) and mean reversion related impacts, decreased $17 million, or 8%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting lower sales of life contingent payout annuities and favorable life claims, partially offset by increased volume in SVAs.

Previous wording

Change in fair value of market risk benefits increased $14 million, or 11%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting market appreciation on contractual fees.

Current wording

Change in fair value of market risk benefits increased $11 million, or 8%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting market appreciation on contractual fees.

Previous wording

Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss increased $8 million for the three months ended March 31, 2025 compared to the prior year period, reflecting lower net investment income.

Current wording

Our Corporate & Other segment pretax adjusted operating loss excludes net realized investment gains or losses, the market impact on fixed annuity benefits (net of hedges), the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impact, gain or loss on disposal of a business that is not considered discontinued operations, integration and restructuring charges, and the impact of consolidating CIEs. Our Corporate & Other segment pretax adjusted operating loss decreased $20 million for the three months ended June 30, 2025 compared to the prior year period, reflecting higher net investment income and improved general and administrative expenses.

Previous wording

LTC insurance had pretax adjusted operating earnings of $14 million for the three months ended March 31, 2025 compared to pretax adjusted operating earnings of $16 million for the prior year period primarily reflecting lower investment portfolio yields, partially offset by improved claims experience.

Current wording

LTC insurance had pretax adjusted operating earnings of $7 million for the three months ended June 30, 2025 compared to pretax adjusted operating earnings of $12 million for the prior year period primarily reflecting a lower level of closed claims and lower investment portfolio yields.

Previous wording

The FA business had a pretax adjusted operating loss of $8 million for the three months ended March 31, 2025 compared to a pretax adjusted operating loss of $6 million for the prior year period. Fixed deferred annuity account balances declined 9% to $5.5 billion as of March 31, 2025 compared to the prior year period as policies continue to lapse.

Current wording

The FA business had a pretax adjusted operating loss of $6 million for the three months ended June 30, 2025 compared to a pretax adjusted operating loss of $8 million for the prior year period. Fixed deferred annuity account balances declined 9% to $5.4 billion as of June 30, 2025 compared to the prior year period as policies continue to lapse.

Previous wording

Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impacts, integration and restructuring charges, and the impact of consolidating CIEs, decreased $11 million, or 19%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting lower investment portfolio yields.

Current wording

Net investment income, which excludes net realized investment gains or losses, the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments, block transfer reinsurance transaction impacts, integration and restructuring charges, and the impact of consolidating CIEs, increased $9 million, or 19%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting a benefit in our affordable housing partnerships.

Previous wording

General and administrative expense decreased $6 million, or 8%, for the three months ended March 31, 2025 compared to the prior year period primarily reflecting favorable mark-to-market impacts on share-based compensation in the current period compared to unfavorable impacts in the prior year period along with a lease write-down in the prior year period.

Current wording

General and administrative expense decreased $12 million, or 13%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting lower severance expenses, partially offset by unfavorable mark-to-market impacts on share-based compensation in the current period compared to a favorable impact in the prior year period.

Previous wording

•The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was an expense of $460 million for the three months ended March 31, 2025 compared to a benefit of $140 million for the prior year period.

Current wording

•The market impact on non-traditional long duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and the reinsurance accrual was an expense of $241 million for the six months ended June 30, 2025 compared to a benefit of $80 million for the prior year period.

Previous wording

•A $501 million increase in expense from other market impacts on variable annuity guaranteed benefits, net of hedges. This increase was the result of an unfavorable $1.8 billion change in the market impact on variable annuity guaranteed benefits reserves, partially offset by a favorable $1.3 billion change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes are summarized below:

Current wording

•A $371 million increase in expense from market impacts on variable annuity guaranteed benefits, net of hedges. This increase was the result of an unfavorable $1.4 billion change in the market impact on variable annuity guaranteed benefits reserves and a favorable $958 million change in the market impact on derivatives hedging the variable annuity guaranteed benefits. The main market drivers contributing to these changes are summarized below:

Previous wording

•Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in an expense for the three months ended March 31, 2025 compared to a benefit in the prior year period.

Current wording

•Interest rate and bond impact on the variable annuity guaranteed benefits liability net of the impact on the corresponding hedge assets resulted in an expense for the six months ended June 30, 2025 compared to a benefit for the prior year period.

Previous wording

General and administrative expense decreased $49 million, or 12%, for the three months ended March 31, 2025 compared to the prior year period reflecting the benefits from our initiatives to enhance operational efficiency and effectiveness along with higher performance fee related compensation in the prior year period.

Current wording

General and administrative expense decreased $69 million, or 9%, for the six months ended June 30, 2025 compared to the prior year period primarily reflecting the initial benefits from our initiatives to enhance operational efficiency and effectiveness along with higher performance fee related compensation in the prior year period.

Previous wording

Companies are required to measure the fair value of liabilities at the price that would be received to transfer the liability to a market participant (an exit price). Since there is not a market for our obligations of our market risk benefits, fixed deferred indexed annuities, structured variable annuities, and IUL insurance, we consider the assumptions participants in a hypothetical market would make to reflect an exit price. As a result, we adjust the valuation of market risk benefits, fixed deferred indexed annuities, structured variable annuities, and IUL insurance by updating certain contractholder assumptions, adding explicit margins to provide for risk, and adjusting the rates used to discount expected cash flows to reflect a current market estimate of our nonperformance risk. The nonperformance risk adjustment is based on observable market data adjusted to estimate the risk of our life insurance company subsidiaries not fulfilling these liabilities. Consistent with general market conditions, this estimate resulted in a spread over the U.S. Treasury curve as of March 31, 2025. As our estimate of this spread widens or tightens, the liability will decrease or increase, respectively. If this nonperformance credit spread moves to a zero spread over the U.S. Treasury curve, the reduction to future total equity would be approximately $571 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on March 31, 2025 credit spreads.

Current wording

Companies are required to measure the fair value of liabilities at the price that would be received to transfer the liability to a market participant (an exit price). Since there is not a market for our obligations of our market risk benefits, fixed deferred indexed annuities, structured variable annuities, and IUL insurance, we consider the assumptions participants in a hypothetical market would make to reflect an exit price. As a result, we adjust the valuation of market risk benefits, fixed deferred indexed annuities, structured variable annuities, and IUL insurance by updating certain contractholder assumptions, adding explicit margins to provide for risk, and adjusting the rates used to discount expected cash flows to reflect a current market estimate of our nonperformance risk. The nonperformance risk adjustment is based on observable market data adjusted to estimate the risk of our life insurance company subsidiaries not fulfilling these liabilities. Consistent with general market conditions, this estimate resulted in a spread over the U.S. Treasury curve as of June 30, 2025. As our estimate of this spread widens or tightens, the liability will decrease or increase, respectively. If this nonperformance credit spread moves to a zero spread over the U.S. Treasury curve, the reduction to future total equity would be approximately $493 million, net of the reinsurance accrual and income taxes (calculated at the statutory tax rate of 21%), based on June 30, 2025 credit spreads.

Previous wording

We maintained substantial liquidity during the three months ended March 31, 2025. As of March 31, 2025 and December 31, 2024, we had $7.8 billion and $8.1 billion, respectively, in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.

Current wording

We maintained substantial liquidity during the six months ended June 30, 2025. As of June 30, 2025 and December 31, 2024, we had $8.0 billion and $8.1 billion, respectively, in cash and cash equivalents excluding CIEs and other restricted cash on a consolidated basis.