AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aa-” (Superior) of RiverSource Life Insurance Company (Minneapolis, MN) and its wholly owned subsidiary, RiverSource Life Insurance Co. of New York (Albany, NY). These companies represent the key life/health (L/H) insurance subsidiaries of Ameriprise Financial, Inc. (Ameriprise) (headquartered in Minneapolis, MN) [NYSE: AMP] and are collectively known as Ameriprise Financial Group. Concurrently, AM Best has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) of Ameriprise Captive Insurance Company (ACIC) (Burlington, VT), a property/casualty (P/C) subsidiary of Ameriprise. In addition, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) and the existing Long-Term Issue Credit Ratings (Long-Term IRs) of Ameriprise. The outlook of all these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the Long-Term IRs.)

The ratings reflect Ameriprise Financial Group’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

The balance sheet metrics for the RiverSource L/H grouped companies remain supportive of the very strong balance sheet strength assessment. On an enterprise level, the L/H group has taken various steps to de-risk the balance sheet from interest rate volatility, and this has been accomplished through reinsurance and the reduction of interest sensitive products. AM Best views the capabilities of Ameriprise’s mature risk management program supportive of this strategy. The L/H group’s operating metrics include continued positive operating net income, growth in premiums, and a return on equity well above industry averages (45%). Distribution capabilities are robust throughout the L/H group’s adviser channel, leaning on an innovative delivery process and achieving operating efficiencies through its investments in technology. Ameriprise’s life and annuity business is complemented by the enterprise’s larger asset management businesses in the United States (U.S.) and internationally. As a L/H group, the RiverSource companies not only are diversified geographically across the U. S., but also offer investment services in addition to life and annuity products.

The ratings also reflect ACIC’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate ERM. ACIC benefits from rating enhancement due to its strategic importance as a single-parent captive insurance provider.

AM Best assesses ACIC’s business profile as limited due to its narrow market focus as a single-parent captive serving just one customer (its parent) for a limited amount of exposure. ACIC provides various coverages to Ameriprise in the form of errors and omissions policies, a workers’ compensation deductible reimbursement policy, fidelity bonds and property terrorism (nuclear, biological, chemical or radiological). The captive has generated strong operating performance as demonstrated by its five-year average pre-tax return on revenue and equity ratios, which compare favorably with the averages for AM Best’s commercial casualty composite. Additionally, ACIC benefits from a very low expense ratio.

The following Long-Term IRs have been affirmed with stable outlooks:

Ameriprise Financial, Inc. —

— “a-” (Excellent) on $500 million 3.00% senior unsecured notes, due 2025

— “a-” (Excellent) on $500 million 2.875% senior unsecured notes, due 2026

— “a-” (Excellent) on $600 million 5.7% senior unsecured notes, due 2028

— “a-” (Excellent) on $500 million 4.50% senior unsecured notes, due 2032

— “a-” (Excellent) on $750 million 5.15% senior unsecured notes, due 2033

The following indicative Long-Term IRs have been affirmed with stable outlooks under the current shelf registration:

Ameriprise Financial, Inc.—

— “a-” (Excellent) on senior unsecured debt

— “bbb+” (Good) on subordinated debt

— “bbb” (Good) on preferred stock

AM Best remains the leading rating agency of alternative risk transfer entities, with more than 200 such vehicles rated in the United States and throughout the world. For current Best’s Credit Ratings and independent data on the captive and alternative risk transfer insurance market, please visit www.ambest.com/captive.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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