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 $1.6 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.

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 $1.7 trillion in assets under management, administration and advisement as of September 30, 2025. We offer a broad range of products and services designed to achieve individual and institutional clients’ financial objectives.

Previous wording

While our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), management believes that adjusted operating earnings measures, which exclude net realized investment gains or losses, net of reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and universal life (“UL”) insurance contracts), net of hedges and the reinsurance accrual; mean reversion related impacts (the impact on variable universal life (“VUL”) products for the difference between assumed and updated separate account investment performance on the reinsurance accrual and additional insurance benefit reserves); 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; income (loss) from discontinued operations; and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis.

Current wording

While our consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), management believes that adjusted operating earnings measures, which exclude net realized investment gains or losses, net of reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and universal life (“UL”) insurance contracts), net of hedges and the reinsurance accrual; mean reversion related impacts (the impact on variable universal life (“VUL”) products for the difference between assumed and updated separate account investment performance on the reinsurance accrual and additional insurance benefit reserves); 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; income (loss) from

Previous wording

(1)Adjustments reflect the sum of after-tax net realized investment gains/losses, net of the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and related reinsurance accrual; mean reversion related impacts; block transfer reinsurance transaction impacts; the market impact of hedges to offset interest rate and currency changes on unrealized gains or losses for certain investments; gain or loss on disposal of a business that is not considered discontinued operations; integration and restructuring charges; income (loss) from discontinued operations; and net income (loss) from consolidated investment entities. After-tax is calculated using the statutory tax rate of 21%.

Current wording

(1)Adjustments reflect the sum of after-tax net realized investment gains or losses, net of the reinsurance accrual; the market impact on non-traditional long-duration products (including variable and fixed deferred annuity contracts and UL insurance contracts), net of hedges and related reinsurance accrual; mean reversion related impacts; 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; gain or loss on disposal of a business that is not considered discontinued operations; integration and restructuring charges; income (loss) from discontinued operations; and net income (loss) from consolidated investment entities. After-tax is calculated using the statutory tax rate of 21%.

Previous wording

(2)Adjusted operating return on equity, excluding AOCI is calculated using adjusted operating earnings in the numerator, and Ameriprise Financial shareholders’ equity, excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 21%.

Current wording

(2)Adjusted operating return on equity, excluding accumulated other comprehensive income (“AOCI”) is calculated using adjusted operating earnings in the numerator, and Ameriprise Financial shareholders’ equity, excluding AOCI and the impact of consolidating investment entities using a five-point average of quarter-end equity in the denominator. After-tax is calculated using the statutory tax rate of 21%.

Previous 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.

Current wording

Total AUM increased $82.2 billion, or 7%, to $1.3 trillion as of September 30, 2025 compared to $1.2 trillion as of September 30, 2024 due to an $81.2 billion increase in Advice & Wealth Management AUM driven by equity market appreciation and wrap account net inflows, and a $2.6 billion increase in Asset Management AUM primarily driven by equity market appreciation, partially offset by net outflows. Total Assets Under Administration increased $33.7 billion, or 11%, to $347.9 billion as of September 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 $5.6 billion, or 18%, to $37.5 billion as September 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 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:

Current wording

Pretax income increased $529 million, or 82%, for the three months ended September 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

•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.

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 $82 million for the three months ended September 30, 2025 compared to an expense of $402 million for the prior year period.

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 8% in the three months ended June 30, 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 15% in the three months ended September 30, 2025 compared to the prior year period.

Previous 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.

Current wording

Management and financial advice fees increased $238 million, or 9%, for the three months ended September 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

•A $106 million decrease in expense from other market impacts on indexed universal life (“IUL”) benefits, net of hedges, which was a benefit of $62 million for the three months ended June 30, 2025 compared to an expense of $44 million for the prior year period. The decrease in expense was primarily due to a decrease in the IUL embedded derivative in the current period, which reflected more discounting due to higher forward rates.

Current wording

Interest credited to fixed accounts increased $23 million, or 19%, for the three months ended September 30, 2025 compared to the prior year period primarily reflecting a $24 million increase in expense from other market impacts on indexed universal life (“IUL”) benefits, net of hedges, which was a benefit of $11 million for the three months ended September 30, 2025 compared to a benefit of $35 million for the prior year period. The increase in expense was primarily due to a decrease in the IUL embedded derivative in the prior period, which reflected lower option costs due to a lower new money rate, offset by less discounting due to lower forward rates.

Previous 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.

Current wording

Benefits, claims, losses and settlement expenses decreased $87 million, or 20%, for the three months ended September 30, 2025 compared to the prior year period primarily reflecting a $91 million decrease in expense from market impacts on structured variable annuities (“SVA”) embedded derivative, net of hedging activity. This decrease was primarily the result of a favorable $557 million change in the market impact on derivatives hedging the SVA embedded derivative and an unfavorable $466 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

•A $130 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges. This decrease was the result of a favorable $474 million change in the market impact on variable annuity guaranteed benefits reserves, partially offset by an unfavorable $344 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:

Current wording

•A $265 million decrease in expense from other market impacts on variable annuity guaranteed benefits, net of hedges. This decrease was the result of a favorable $779 million change in the market impact on variable annuity guaranteed benefits reserves, partially offset by an unfavorable $514 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 a lower benefit for the three months ended June 30, 2025 compared to 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 a lower expense for the three months ended September 30, 2025 compared to the prior year period.

Previous wording

•Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a lower net expense for the three months ended June 30, 2025 compared to the prior year period.

Current wording

•Other unhedged items, including the difference between the assumed and actual underlying separate account investment performance, transaction costs and various behavioral items, were a larger net expense for the three months ended September 30, 2025 compared to the prior year period.

Previous 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.

Current wording

General and administrative expense decreased $24 million, or 2%, for the three months ended September 30, 2025 compared to the prior year period primarily due to ongoing benefits from our initiatives to enhance operational efficiency and effectiveness, partially offset by higher volume related expenses and investments for business growth.

Previous 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.

Current wording

Total client assets increased $113.9 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 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.

Current wording

Ending wrap account assets increased $35.1 billion to $650.3 billion during the three months ended September 30, 2025 due to market appreciation of $30.3 billion and net inflows of $4.8 billion. Average advisory wrap account assets increased $76.5 billion, or 14%, 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 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.

Current wording

Ameriprise Bank is continuing its deposit growth trend, with bank deposit balances increasing 4% from the prior year to $22.6 billion as of September 30, 2025. Ameriprise Certificate Company (“ACC”) client deposits decreased $3.1 billion from the prior year to $8.9 billion. After a period of strong growth during a rising interest rate environment, ACC has experienced net outflows during the past seven quarters. Third party cash products increased $5.0 billion to $47.9 billion driven by an increase of money market funds of $7.2 billion, partially offset by a decline in brokered CDs.

Previous 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.

Current wording

•In Ameriprise Bank, assets included $19.4 billion of Available-for-Sale securities, $3.3 billion of cash and cash equivalents, and $1.7 billion of other assets, primarily loans. The Ameriprise Bank investment portfolio securities are mostly rated AAA and primarily consist of structured assets, of which 11% were floating rate and sensitive to changes in short-term interest rates as of September 30, 2025. We took action to reduce the floating rate allocation from 19% as of September 30, 2024. The duration of Ameriprise Bank investments was 3.7 years as of September 30, 2025 compared to 3.1 years as of September 30, 2024. In the three months ended September 30, 2025, we purchased $0.7 billion of investments, which was primarily funded from security maturities and prepayments.

Previous 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.

Current wording

•In ACC, assets include $8.8 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 40% were floating rate and approximately 20% were 6-month Treasury Bills or short-term Federal Home Loan Bank securities as of September 30, 2025. The duration of ACC investments was 1.4 years as of September 30, 2025 compared to 0.8 years as of September 30, 2024.

Previous 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.

Current wording

Our Advice & Wealth Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $55 million, or 7%, for the three months ended September 30, 2025 compared to the prior year period. This reflected the benefit from market appreciation and increased advisor productivity through the cumulative impact of client net inflows, partially offset by lower interest revenue. Pretax adjusted operating margin was 29.5% for the three months ended September 30, 2025 compared to 30.1% for the prior year period.

Previous 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.

Current wording

Management and financial advice fees increased $227 million, or 14%, for the three months ended September 30, 2025 compared to the prior year period primarily due to growth in average wrap account assets. Average advisory wrap account assets increased $76.5 billion, or 14%, 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 $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.

Current wording

Net investment income, which excludes net realized investment gains or losses, decreased $69 million, or 12%, for the three months ended September 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 $10.3 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.

Current wording

•The average certificate reserve balance for ACC was $9.4 billion for the three months ended September 30, 2025 compared to $12.2 billion for the prior year period with the average crediting rate of 3.48% for the three months ended September 30, 2025 compared to 4.36% for the prior year period.

Previous 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.

Current wording

•The daily average interest-bearing deposit balance for the Ameriprise Bank increased to $22.1 billion for the three months ended September 30, 2025 compared to $21.6 billion for the prior year period with the average interest rate paid on deposits decreasing to 0.30% for the three months ended September 30, 2025 from 0.46% for the prior year period, which included both cash sweep and savings products.

Previous wording

Distribution expenses increased $143 million, or 10%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap accounts, as well as investments in recruiting experienced advisors.

Current wording

Distribution expenses increased $168 million, or 11%, for the three months ended September 30, 2025 compared to the prior year period primarily reflecting higher advisor compensation from higher average wrap accounts, as well as investments in recruiting experienced advisors.

Previous wording

General and administrative expense increased $26 million, or 6%, for the three months ended June 30, 2025 compared to the prior year period primarily reflecting higher volume related expenses and investments for business growth.

Current wording

General and administrative expense increased $20 million, or 5%, for the three months ended September 30, 2025 compared to the prior year period primarily reflecting higher volume related expenses and investments for business growth.

Previous 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.

Current wording

(2) Columbia funds are available for purchase by U.S. customers. Out of 89 Columbia funds rated (based on primary share class), 1 received a 5-star Overall Rating and 46 received a 4-star Overall Rating. Out of 134 Threadneedle funds rated (based on highest-rated share class), 11 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.

Previous 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.

Current wording

Total segment AUM increased $20.5 billion, or 3%, during the three months ended September 30, 2025 primarily due to market appreciation, partially offset by an unfavorable foreign exchange impact and net outflows. Net outflows were $3.4 billion for the three months ended September 30, 2025.

Previous 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.

Current wording

Our Asset Management segment pretax adjusted operating earnings, which exclude net realized investment gains or losses, increased $15 million, or 6%, for the three months ended September 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

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.

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 $99 million, or 84%, for the three months ended September 30, 2025 compared to prior year period primarily reflecting unlocking impacts, higher investment portfolio yields and market appreciation.

Previous 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.

Current wording

Variable annuity account balances increased 4% to $91.0 billion as of September 30, 2025 compared to the prior year period primarily due to market appreciation, partially offset by net outflows of $4.3 billion. Variable annuity sales increased 2% compared to the prior year period primarily reflecting a strong level of sales of SVAs. Account values with living benefit riders declined to 47% as of September 30, 2025 compared to 51% 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 $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.

Current wording

Net investment income, which excludes net realized investment gains or losses, increased $45 million, or 16%, for the three months ended September 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

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.

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 $27 million, 19%, for the three months ended September 30, 2025 compared to the prior year period, reflecting improved general and administrative expenses, partially offset by an unfavorable unlocking impact.

Previous wording

LTC insurance had pretax adjusted operating earnings of $21 million for the six months ended June 30, 2025 compared to pretax adjusted operating earnings of $28 million for the prior year period primarily reflecting a lower level of closed claims and lower investment portfolio yields.

Current wording

LTC insurance had pretax adjusted operating loss of $22 million for the three months ended September 30, 2025 compared to pretax adjusted operating earnings of $9 million for the prior year period primarily reflecting a net unfavorable unlocking impact from updating morbidity and mortality assumptions.

Previous 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.

Current wording

The FA business had a pretax adjusted operating loss of $7 million for the three months ended September 30, 2025 compared to a pretax adjusted operating loss of $7 million for the prior year period. Fixed deferred annuity account balances declined 8% to $5.3 billion as of September 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, 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.

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, decreased $6 million, or 11%, for the three months ended September 30, 2025 compared to the prior year period primarily reflecting lower investment portfolio yields.

Previous 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.

Current wording

General and administrative expense decreased $57 million, or 50%, for the three months ended September 30, 2025 compared to the prior year period primarily reflecting lower severance expenses and favorable mark-to-market impacts on share-based compensation in the current period compared to an unfavorable impact in the prior year period, as well as expenses to accelerate our transition to cloud-based technology in the prior year period.

Previous wording

Pretax income decreased $232 million, or 10%, for the six 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:

Current wording

Pretax income increased $297 million, or 10%, for the nine months ended September 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 12% in the six months ended June 30, 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 13% in the nine months ended September 30, 2025 compared to the prior year period.