Ameriprise 2015 Annual Report Download - page 36

In 2015, we had total cash sales for fixed annuity products through third-party channels of $9 million. As of December 31,
2015, we had distribution agreements for RiverSource fixed annuity products in place with more than 118 third-party
firms.
Liabilities and Reserves for Annuities
We maintain adequate financial reserves to cover the risks associated with guaranteed benefit provisions added to variable
annuity contracts in addition to liabilities arising from fixed and variable annuity base contracts. You can find a discussion
of liabilities and reserves related to our annuity products in Part II, Item 7A of this Annual Report on Form 10-K —
‘‘Quantitative and Qualitative Disclosures About Market Risk’’, as well as in Note 2, Note 10, Note 11 and Note 16 to our
Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.
Financial Strength Ratings
Our insurance company subsidiaries that issue RiverSource annuity products receive ratings from independent rating
organizations. Ratings are important to maintain public confidence in our insurance subsidiaries and our protection and
annuity products. For a discussion of the financial strength ratings of our insurance company subsidiaries, see the ‘‘Our
Segments — Protection — Financial Strength Ratings’’ section, below.
Our Segments — Protection
Our Protection segment provides a variety of products to address the protection and risk management needs of our retail
clients, including life, disability income and property casualty insurance. These products are designed to provide a lifetime
of solutions that allow clients to protect income, grow assets and give to loved ones or charity.
Life and disability income products are primarily provided through our advisors. Our property casualty products are sold
primarily through affinity relationships. We issue insurance policies through our life insurance subsidiaries and the Property
Casualty companies (as defined below under ‘‘Ameriprise Auto & Home Insurance Products’’). The primary sources of
revenues for this segment are premiums, fees and charges we receive to assume insurance-related risk. We earn net
investment income on owned assets supporting insurance reserves and capital supporting the business. We also receive
fees based on the level of assets supporting variable universal life separate account balances. This segment earns
intersegment revenues from fees paid by our Asset Management segment for marketing support and other services
provided in connection with the availability of VIT Funds under the variable universal life contracts. Intersegment expenses
for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well
as expenses for investment management services provided by our Asset Management segment. All intersegment activity is
eliminated in consolidation.
RiverSource Insurance Products
Through the RiverSource Life companies, we issue both variable and fixed (including indexed) universal life insurance,
traditional life insurance and disability income insurance. Universal life insurance is a form of permanent life insurance
characterized by flexible premiums, flexible death benefits and unbundled pricing factors (i.e., mortality, interest and
expenses). Variable universal life insurance combines the premium and death benefit flexibility of universal life with
underlying fund investment flexibility and the risks associated therewith. Traditional life insurance refers to whole and term
life insurance policies. While traditional life insurance typically pays a specified sum to a beneficiary upon death of the
insured for a fixed premium, we also offer a term life insurance product that will generally pay the death benefit in the
form of a monthly income stream to a date specified at issue. We also offer a chronic care rider, AdvanceSource rider, on
our new permanent insurance products. This rider allows its policyholder to accelerate a portion of the life insurance death
benefit in the event of a qualified chronic care need.
Our sales of RiverSource individual life insurance in 2015, as measured by scheduled annual premiums, lump sum and
excess premiums and single premiums, consisted of 83% fixed universal life, 14% variable universal life and 3% traditional
life. Our RiverSource Life companies issue only non-participating life insurance policies that do not pay dividends to
policyholders from the insurer’s earnings.
Assets supporting policy values associated with fixed account life insurance and annuity products, as well as those assets
associated with fixed account investment options under variable insurance and annuity products (collectively referred to as
the ‘‘fixed accounts’’), are part of the RiverSource Life companies’ general accounts. Under fixed accounts, the
RiverSource Life companies bear the investment risk. More information on the RiverSource Life companies’ general
accounts is found under ‘‘Business — Our Segments — Asset Management — Product and Service Offerings —
Management of Owned Assets’’ above.
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