Ameriprise 2015 Annual Report Download - page 44

These assessments are generally based on a member insurer’s proportionate share of all premiums written by member
insurers in the state during a specified period prior to an insurer’s insolvency. See Note 23 to our Consolidated Financial
Statements included in Part II, Item 8 of this Annual Report on Form 10-K for additional information regarding guaranty
association assessments.
Certain variable annuity and variable life insurance policies offered by the RiverSource Life companies constitute and are
registered as securities under the Securities Act of 1933, as amended. As such, these products are subject to regulation
by the SEC and FINRA. Securities regulators have recently increased their focus on the adequacy of disclosure regarding
complex investment products, including variable annuities and life insurance, and have announced that they will continue
to review actions by life insurers to improve profitability and reduce risks under in force annuity and insurance products
with guaranteed benefits.
The Dodd-Frank Act created the Federal Insurance Office (‘‘FIO’’) within the Department of Treasury. The FIO does not have
substantive regulatory responsibilities, though it is tasked with monitoring the insurance industry and the effectiveness of
its regulatory framework and providing periodic reports to the President and Congress.
RiverSource Life owns a block of residential mortgage loans. As an owner and servicer of residential mortgages,
RiverSource Life must comply with applicable federal and state lending and foreclosure laws and is subject to the
jurisdiction of the federal Consumer Finance Protection Bureau and certain state regulators relative to these mortgage
loans.
Each of our insurance subsidiaries is subject to risk-based capital (‘‘RBC’’) requirements designed to assess the adequacy
of an insurance company’s total adjusted capital in relation to its investment, insurance and other risks. The National
Association of Insurance Commissioners (‘‘NAIC’’) has established RBC standards that all state insurance departments
have adopted. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit
regulatory actions designed to protect policyholders. Our RiverSource Life companies and Property Casualty companies are
subject to various levels of regulatory intervention should their total adjusted statutory capital fall below defined RBC action
levels. At the ‘‘company action level,’’ defined as total adjusted capital level between 100% and 75% of the RBC
requirement, an insurer must submit a plan for corrective action with its primary state regulator. The level of regulatory
intervention is greater at lower levels of total adjusted capital relative to the RBC requirement. RiverSource Life,
RiverSource Life of NY, IDS Property Casualty and Ameriprise Insurance Company maintain capital levels well in excess of
the company action level required by state insurance regulators as noted below as of December 31, 2015:
Company Action Total % of Company
Entity Level RBC Adjusted Capital Action Level RBC
(in millions, except percentages)
RiverSource Life $ 589 $ 3,800 645%
RiverSource Life of NY 44 333 748
IDS Property Casualty 121 684 563
Ameriprise Insurance Company 1 46 8,701
Ameriprise Financial, as a direct and indirect owner of its insurance subsidiaries, is subject to the insurance holding
companies laws of the states where its insurance subsidiaries are domiciled. These laws generally require insurance
holding companies to register with the insurance department of the insurance company’s state of domicile and to provide
certain financial and other information about the operations of the companies within the holding company structure.
As part of its Solvency Modernization Initiative, in 2010 the NAIC adopted revisions to its Insurance Holding Company
System Regulatory Act (‘‘Holding Company Act’’) to enhance insurer group supervision and create a new Risk Management
and Own Risk and Solvency Assessment (‘‘ORSA’’) Model Act. The Holding Company Act revisions focus on the overall
insurance holding company system, establish a framework of regulator supervisory colleges, enhancements to corporate
governance, and require the annual filing of an Enterprise Risk Management Report. The ORSA Model Act requires that an
insurer create and file, annually, its Own Risk Solvency Assessment, which is a complete self-assessment of its risk
management functions and capital adequacy. These laws have now been enacted by the domiciliary states of RiverSource
Life and the Property Casualty companies: Minnesota, New York and Wisconsin. The reports have been completed and filed
as required by the laws and regulations of those states.
Federal Banking Regulation
In January 2013, Ameriprise Bank received approval for and completed the conversion from a federal savings bank to a
limited powers national trust bank, which was renamed Ameriprise National Trust Bank. As a limited powers national
association, Ameriprise National Trust Bank remains subject to supervision under various laws and regulations enforced by
the OCC, including those related to capital adequacy, liquidity and conflicts of interest, and to a limited extent, by the
FDIC.
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