-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, J/jTLaiHWYfQLvAJlYFMcdDYHOpFe2nvJljHODnvK75k1T32bhs6G6Mo/Nu6SWoE bnBSXi/Zqm/1pZ6/fgyTbA== 0000950137-08-003078.txt : 20080229 0000950137-08-003078.hdr.sgml : 20080229 20080229151601 ACCESSION NUMBER: 0000950137-08-003078 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20071231 FILED AS OF DATE: 20080229 DATE AS OF CHANGE: 20080229 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERIPRISE CERTIFICATE CO CENTRAL INDEX KEY: 0000052428 IRS NUMBER: 416009975 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 811-00002 FILM NUMBER: 08655133 BUSINESS ADDRESS: STREET 1: 50606 AMERIPRISE FINANCIAL CENTER CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 6123723131 MAIL ADDRESS: STREET 1: 50606 AMERIPRISE FINANCIAL CENTER CITY: MINNEAPOLIS STATE: MN ZIP: 55474 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN EXPRESS CERTIFICATE CO DATE OF NAME CHANGE: 20000512 FORMER COMPANY: FORMER CONFORMED NAME: IDS CERTIFICATE CO /MN/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: INVESTORS SYNDICATE OF AMERICA INC DATE OF NAME CHANGE: 19860303 10-K 1 c24192e10vk.txt ANNUAL REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K [X] ANNUAL REPORT PURSUANT TO SECTION 30 OF THE INVESTMENT COMPANY ACT OF 1940 AND SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO _________ COMMISSION FILE NO. 2-23772 AMERIPRISE CERTIFICATE COMPANY (Exact name of registrant as specified in its charter) DELAWARE 41-6009975 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.)
1099 AMERIPRISE FINANCIAL CENTER, MINNEAPOLIS, MINNESOTA 55474 (Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (612) 671-3131 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X] Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes [ ] No [X] Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [Not applicable] Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one): Large Accelerated Filer [ ] Accelerated Filer [ ] Non-Accelerated Filer [X] Smaller reporting company [ ] (Do not check if a smaller reporting company) Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
CLASS OUTSTANDING AT FEBRUARY 29, 2008 ----- -------------------------------- Common Shares (par value $10 per share) 150,000 shares
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS (I)(1)(a) AND (b) OF FORM 10-K AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT. TABLE OF CONTENTS Form 10-K Item NUMBER
PAGE ---- PART I 1. Business..................................................... 3 1A. Risk Factors................................................. 5 1B. Unresolved Staff Comments.................................... 8 2. Properties................................................... 8 3. Legal Proceedings............................................ 8 4. Submission of Matters to a Vote of Security Holders.......... 8 PART II 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities............ 9 6. Selected Financial Data...................................... 9 7. Management's Narrative Analysis.............................. 9 7A. Quantitative and Qualitative Disclosures About Market Risk... 11 8. Financial Statements and Supplementary Data.................. 12 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure..................................... 13 9A(T). Controls and Procedures...................................... 13 9B. Other Information............................................ 13 PART III 10. Directors, Executive Officers and Corporate Governance....... 13 11. Executive Compensation....................................... 13 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters................... 13 13. Certain Relationships and Related Transactions, and Director Independence................................................. 13 14. Principal Accounting Fees and Services....................... 14 PART IV 15. Exhibits, Financial Statement Schedules...................... 14 Signatures................................................... 15 Index to Financial Statements and Schedules.................. F-1 Exhibit Index................................................ E-1
2 PART I ITEM 1. BUSINESS OVERVIEW Ameriprise Certificate Company ("ACC" or the "Company") was incorporated on October 28, 1977 under the laws of Delaware. Ameriprise Financial, Inc. ("Ameriprise Financial"), a Delaware corporation, owns 100% of the outstanding voting securities of ACC. Ameriprise Financial and its predecessor companies have more than 110 years of history providing clients with financial solutions. ACC is registered as an investment company under the Investment Company Act of 1940 (the "1940 Act") and is in the business of issuing face-amount investment certificates. Face-amount certificates issued by ACC entitle the certificate owner to receive at maturity a stated amount of money and interest or credits declared from time to time by ACC, at its discretion. The certificates issued by ACC are not insured by any government agency. ACC's certificates are sold by Ameriprise Financial Services, Inc. ("AFSI"), an affiliate of ACC. AFSI is registered as a broker-dealer in all 50 states, the District of Columbia and Puerto Rico. To ACC's knowledge, ACC is the largest issuer of face-amount certificates in the United States. However, such certificates compete with many other products (including investments) offered by banks, savings and loan associations, mutual funds, broker-dealers and others, which may be viewed by potential clients as offering a comparable or superior combination of safety and return on investment. In particular, some of ACC's products are designed to be competitive with the types of investments offered by banks and thrifts. Since ACC's face-amount certificates are securities, their offer and sale are subject to regulation under federal and state securities laws. ACC's certificates are backed by ACC's qualified assets on deposit and are not insured by any governmental agency or other entity. OUR RELATIONSHIP WITH AMERICAN EXPRESS COMPANY Ameriprise Financial was a wholly owned subsidiary of American Express Company ("American Express"). Effective as of the close of business on September 30, 2005, American Express completed the disposition of 100% of its share holdings in Ameriprise Financial through a tax-free distribution of Ameriprise Financial common shares to its shareholders (the "Distribution"). In connection with the Distribution, Ameriprise Financial entered into certain agreements with American Express to effect the separation and to define the responsibility for obligations arising before and after the date of the Distribution, including among others, obligations relating to transition services, taxes and employees. Based on the terms of the distribution and investment advisory and services agreements set in place between ACC and its affiliates, no separation costs were allocated to ACC. During the third quarter of 2005, ACC agreed with American Express Bank Limited ("AEB"), a subsidiary of American Express, to execute an orderly wind-down of the certificate business marketed through AEB and American Express Bank International ("AEBI"). This wind-down has been completed. The amount of certificate reserves associated with this business was approximately nil and $4.4 million as of December 31, 2007 and 2006, respectively. PRODUCTS As of the date of this report, ACC offers the following four different certificate products to the public: 1. Ameriprise Flexible Savings Certificate - Single payment certificate that permits a limited amount of additional payments and on which ACC guarantees interest rates in advance for a term of six, seven, twelve, thirteen, eighteen, twenty-four, thirty or thirty-six months, and potentially other terms, at ACC's option. - Currently sold without a sales charge. - Currently bears surrender charges for premature surrenders. - Available as qualified investments for IRAs, 401(k) plans, and other qualified retirement plans. - Distributed pursuant to a Distribution Agreement with AFSI. - Current policy is to re-evaluate the certificate product interest crediting rates weekly to respond to marketplace changes. - ACC refers to an independent index or source to set the rates for new sales and must set the rates for an initial purchase of the certificate within a specified range of the rate from such index or source. For renewals, ACC uses such rates as an indication of the competitors' rates, but is not required to set rates within a specified range. 3 - National Certificate of Deposit (CD) averages courtesy of Bankrate.com are used as the guide in setting rates. - Competes with popular short-term investment vehicles such as certificates of deposit, money market certificates, and money market mutual funds that offer comparable yields, liquidity and safety of principal. 2. Ameriprise Installment Certificate - Installment payment certificate that declares interest rates in advance for a three-month period and offers bonuses for up to four certificate years for regular investments. - Currently sold without a sales charge. - Currently bears surrender charges for premature surrenders. - Available as qualified investments for IRAs, 401(k) plans, and other qualified retirement plans. - Distributed pursuant to a Distribution Agreement with AFSI. - Current policy is to re-evaluate the certificate product interest crediting rates weekly to respond to marketplace changes. - ACC refers to an independent index or source to set the rates for new sales and must set the rates for an initial purchase of the certificate within a specified range of the rate from such index or source. For renewals, ACC uses such rates as an indication of the competitors' rates, but is not required to set rates within a specified range. - The national average interest rate for money market deposit accounts courtesy of Bankrate.com is used as a guide in setting rates. - Intended to help clients save systematically and may compete with passbook savings and NOW accounts. 3. Ameriprise Market Strategy Certificate - Single payment certificate, with a flexible yield, that pays interest at a fixed rate or that offers the certificate product owner the opportunity to have all or part of the certificate product returns tied to fifty-two week stock market performance, up to a maximum return, as measured by a broad stock market index, for a series of fifty-two week terms starting every month or at intervals the certificate product owner selects. - Currently sold without a sales charge. - Currently bears surrender charges for premature surrenders. - Available as qualified investments for IRAs, 401(k) plans, and other qualified retirement plans. - Distributed pursuant to a Distribution Agreement with AFSI. - Current policy is to re-evaluate the certificate product interest crediting rates weekly and maximum return rates at least monthly to respond to marketplace changes. - Certain banks offer certificates of deposit that have features similar to this certificate. - The rate of interest is calculated in whole or in part based on any upward movement in a broad-based stock market index up to a maximum return, where the maximum is a fixed rate for a given term, but can be changed at ACC's discretion for prospective terms. 4. Ameriprise Stock Market Certificate - Single payment certificate that offers the certificate product owner the opportunity to have all or part of the certificate product returns tied to fifty-two week stock market performance, up to a maximum return, as measured by a broad stock market index, with return of principal guaranteed by ACC. The owner can also choose to earn a fixed rate of interest after the first term. - Currently sold without a sales charge. - Currently bears surrender charges for premature surrenders. - Available as qualified investments for IRAs, 401(k) plans, and other qualified retirement plans. - Distributed pursuant to a Distribution Agreement with AFSI. - Current policy is to re-evaluate the certificate product interest crediting rates weekly and maximum return rates at least monthly to respond to marketplace changes. - Certain banks offer certificates of deposit that have features similar to this certificate. - The rate of interest is calculated in whole or in part based on any upward movement in a broad-based stock market index up to a maximum return, where the maximum is a fixed rate for a given term, but can be changed at ACC's discretion for prospective terms. The specified maturities of most of ACC's certificate products range from ten to twenty years. Within that maturity period, most certificates have interest crediting rate terms ranging from six to thirty-six months. Interest crediting rates are subject to change and certificate product owners can surrender their certificates without penalty at term end. Currently offered Ameriprise Certificates (listed above), as well as certain certificates previously issued by ACC (not listed above), contain renewal features which enable certificate owners to renew their certificate term until certificate maturity. Accordingly, certificate products that are currently outstanding in their renewal periods or are exercised for renewal in the future are, and continue to be, liabilities of ACC until their withdrawals or maturity whether or not such certificates are available for new sales. 4 DISTRIBUTION AND MARKETING CHANNELS ACC's certificates offered by AFSI are sold pursuant to a distribution agreement which is terminable on sixty days' notice and is subject to annual approval by ACC's Board of Directors, including a majority of the directors who are not "interested persons" of AFSI or ACC as that term is defined in the 1940 Act. The distribution agreement provides for the payment of distribution fees to AFSI for services provided. ASSET MANAGEMENT ACC has retained RiverSource Investments, LLC, a wholly owned subsidiary of Ameriprise Financial, to manage ACC's investment portfolio under an investment management agreement, which is subject to annual review and approval by ACC's Board of Directors, including a majority of the directors who are not "interested persons" of AFSI, RiverSource Investments, LLC or ACC. On October 25, 2006, the Board approved, subject to shareholder approval, a new "Investment Advisory and Services Agreement" with RiverSource Investments, LLC, with an effective date of January 1, 2007. The agreement was subsequently approved by the Company's sole shareholder, Ameriprise Financial, on October 27, 2006, and this agreement ran through December 31, 2007 and continues from year to year thereafter, subject to the annual review and approval by ACC's Board of Directors discussed above, and unless and until terminated by either party. On November 20, 2007, ACC's Board of Directors conducted its annual review of the investment management agreement and re-approved the agreement for another year, effective January 1, 2008. REGULATION ACC is required to maintain cash and "qualified assets" meeting the standards of Section 28(b) of the 1940 Act, as modified by an exemptive order of the Securities and Exchange Commission (the "SEC"). The amortized cost of such investments must be at least equal to ACC's net liabilities on all outstanding face-amount certificates plus $250,000. ACC's qualified assets consist of cash and cash equivalents, first mortgage loans on real estate and other loans, U.S. government and government agency securities, municipal bonds, corporate bonds, preferred stocks and other securities meeting specified standards. So long as ACC wishes to rely on the SEC order, as a condition to the order, ACC has agreed to maintain an amount of unappropriated retained earnings and capital equal to at least 5% of certificate reserves (less outstanding certificate loans). To the extent that payment of a dividend would decrease the capital ratio below the required 5%, payment of a dividend would be restricted. In determining compliance with this condition, qualified assets are valued in accordance with the provisions of Minnesota Statutes where such provisions are applicable. ACC has also entered into a written understanding with the State of Minnesota, Department of Commerce, that ACC will maintain capital equal to 5% of the assets of ACC (less outstanding certificate loans). To the extent that payment of a dividend would decrease this ratio below the required 5%, payment of a dividend would be restricted. When computing its capital for these purposes, ACC values its assets on the basis of statutory accounting for insurance companies rather than U.S. generally accepted accounting principles. ACC is subject to annual examination and supervision by the State of Minnesota, Department of Commerce (Banking Division). ITEM 1A. RISK FACTORS If any of the following risks and uncertainties develops into actual events, these events could have a material adverse effect on ACC's business, financial condition or results of operations. Based on current information the following information identifies the most significant risk factors affecting ACC in each of these categories of risk. However, the risks and uncertainties ACC faces are not limited to those described below. Additional risks and uncertainties which are not presently known or which are currently believed to be immaterial may also adversely affect ACC's business. RISKS RELATING TO ACC'S BUSINESS ACC'S FINANCIAL CONDITION AND RESULTS OF OPERATIONS MAY BE ADVERSELY AFFECTED BY MARKET FLUCTUATIONS, ECONOMIC AND OTHER FACTORS. ACC's financial condition and results of operations in the past have been, and in the future may continue to be, materially affected by many factors of a global or localized nature, including political, economic and market conditions; the availability and cost of capital; the level and volatility of equity prices, commodity prices and interest rates; currency values and other market indices; technological changes and events; the availability and cost of credit; inflation; and investor sentiment and confidence in the financial markets. These factors also may have an impact on the Company's ability to achieve its strategic objectives. ACC's financial condition and results of operations are affected by the "spread", or the difference between the returns ACC earns on the investments that support its product obligations and the amounts that the Company must pay certificate holders. 5 ACC's investment products are sensitive to interest rate fluctuations and ACC's future costs associated with such variations may differ from its historical costs. During periods of increasing market interest rates, ACC expects to increase crediting rates on existing face-amount certificates. Because returns on invested assets may not increase as quickly as current interest rates, ACC may have to accept a lower spread and thus lower profitability or face a decline in sales and greater loss of existing certificates. In addition, increases in market interest rates may cause increased certificate surrenders as certificate holders seek to shift assets to products with perceived higher returns. This process may lead to an earlier than expected flow of cash out of ACC's business. Also, increases in market interest rates may result in the extension of the maturities of some of ACC's investment assets. These earlier outflows and asset maturity extensions may require investment assets to be sold at a time when the prices of those assets are lower because of the increase in market interest rates, which may result in realized investment losses. Increases in crediting rates, as well as surrenders and withdrawals, could have an adverse effect on ACC's financial condition and results of operations. During periods of falling interest rates, ACC's spread may also be reduced. Because ACC may adjust the interest rates it credits on most of the products downward only at limited, pre-established intervals, ACC's spreads could decrease and potentially become negative. Interest rate fluctuations could also have an adverse effect on the results of ACC's investment portfolio. During periods of declining market interest rates, the interest ACC receives on variable interest rate investments decreases. In addition, during those periods, ACC is forced to reinvest the cash it receives as interest or return of principal on its investments in lower-yielding, high-grade instruments or in lower-credit instruments to maintain comparable returns. Issuers of fixed income securities also may decide to prepay their obligations in order to borrow at lower market rates. This increases the risk that ACC may have to invest the cash proceeds of these securities in lower-yielding or lower-credit instruments. Offsetting some of these risks is the fact that a significant portion of certificate balances do not have a minimum guaranteed interest crediting rate. For additional information regarding the sensitivity of the fixed income securities in ACC's investment portfolio to interest rate fluctuations, see Item 7A of this Form 10-K--"Quantitative and Qualitative Disclosures about Market Risk." DEFAULTS IN ACC'S FIXED INCOME MATURITIES PORTFOLIO WOULD ADVERSELY AFFECT THE COMPANY'S EARNINGS. Issuers of the fixed income maturities owned by ACC may default on principal and interest payments. As of December 31, 2007, 6.8% of ACC's invested assets had ratings below investment grade. Moreover, economic downturns and corporate malfeasance can increase the number of companies, including those with investment grade ratings, that default on their debt obligations. IF THE COUNTERPARTIES TO THE DERIVATIVE INSTRUMENTS ACC USES TO HEDGE CERTAIN CERTIFICATE LIABILITIES DEFAULT, ACC MAY BE EXPOSED TO RISKS IT HAD SOUGHT TO MITIGATE, WHICH COULD ADVERSELY AFFECT ACC'S FINANCIAL CONDITION AND RESULTS OF OPERATIONS. ACC uses derivative instruments to hedge certain certificate liabilities. ACC enters into a variety of derivative instruments with a number of counterparties. If ACC's counterparties fail to honor their obligations under the derivative instruments, ACC's hedges of the related liabilities will be ineffective. That failure could have an adverse effect on ACC's financial condition and results of operations that could be material. This risk of failure of ACC's hedge transactions and hedging strategies may be increased by capital market volatility, such as the volatility that has been experienced since the second half of 2007. SOME OF ACC'S INVESTMENTS ARE RELATIVELY ILLIQUID. ACC invests a portion of its assets in privately placed fixed income securities and mortgage loans. Mortgage loans are relatively illiquid. ACC's investment manager periodically reviews ACC's private placement investments using adopted standards to categorize such investments as liquid or illiquid. As of December 31, 2007, mortgage loans and private placement fixed income securities that have been categorized as illiquid represented approximately 7.3% of the carrying value of ACC's investment portfolio. If ACC requires significant amounts of cash on short notice in excess of its normal cash requirements, ACC may have difficulty selling these investments in a timely manner or be forced to sell them for an amount less than it would otherwise have been able to realize, or both. Any inability to quickly dispose of illiquid investments could have an adverse effect on ACC's financial condition and results of operations. IF ACC'S RESERVES FOR FUTURE CERTIFICATE REDEMPTIONS AND MATURITIES ARE INADEQUATE, ACC MAY BE REQUIRED TO INCREASE ITS RESERVE LIABILITIES, WHICH COULD ADVERSELY AFFECT ITS FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Investment certificates may be purchased either with a lump-sum payment or by installment payments. Certificate product owners are entitled to receive, at maturity, a definite sum of money. Payments from certificate owners are credited to investment certificate reserves. Investment certificate reserves accumulate interest at specified percentage rates as declared by ACC. Reserves also are maintained for advance payments made by certificate owners, accrued interest thereon, and for additional credits in excess of minimum guaranteed rates and accrued interest thereon. On certificates allowing for the deduction of a surrender charge, the cash surrender values may be less than accumulated investment certificate reserves prior to maturity dates. Cash surrender values on certificates allowing for no surrender charge are equal to certificate reserves. The payment distribution, reserve accumulation rates, cash surrender values, reserve values and other matters are governed by the 1940 Act. 6 Certain certificates offer a return based on the relative change in a stock market index. The certificates with an equity-based return contain embedded derivatives, which are carried at fair value within investment certificate reserves on the balance sheets. The fair values of these embedded derivatives incorporate current market data inputs. Changes in fair value are reflected in provision for certificate reserves within the statements of income. ACC monitors its reserve levels continually. If the Company concluded its reserves were insufficient to cover actual or expected redemptions or maturities, ACC would be required to increase its reserves and incur income statement charges for the period in which it makes the determination. Such a determination could adversely affect ACC's financial condition and results of operations. INTENSE COMPETITION COULD NEGATIVELY AFFECT ACC'S ABILITY TO MAINTAIN OR INCREASE ITS MARKET SHARE AND PROFITABILITY. ACC's business operates in an intensely competitive industry segment. ACC competes based on a number of factors including name recognition, service, investment performance, product features and perceived financial strength. ACC's competitors include broker-dealers, banks, asset managers and other financial institutions. ACC's business faces competitors that have greater market share, offer a broader range of products or have greater financial resources. ACC'S AFFILIATED DISTRIBUTOR MAY BE UNABLE TO ATTRACT AND RETAIN FINANCIAL ADVISORS. ACC is dependent on the branded financial advisors of its affiliated broker-dealer selling firm for all of the sales of its certificate products. A significant number of its branded financial advisors operate as independent contractors under a franchise agreement with its affiliated selling firm. There can be no assurance that ACC's affiliated selling firm will be successful in its efforts to recruit and retain new advisors to its network. If ACC's affiliated selling firm is unable to attract and retain quality financial advisors, no advisors would be available to sell ACC's certificate products and ACC's financial condition and results of operations could be materially adversely affected. ACC'S BUSINESS IS REGULATED AND CHANGES IN REGULATION MAY REDUCE THE COMPANY'S PROFITABILITY AND LIMIT ITS GROWTH. ACC operates in a regulated industry. Various regulatory and governmental bodies have the authority to review ACC's products and business practices and to bring regulatory or other legal actions against ACC if, in their view, ACC's practices are improper. Changes in these regulations may lead to increased fees to service providers. Additionally, ACC is subject to heightened regulatory requirements relating to privacy and protection of customer data. CONFLICTS OF INTEREST ARE INCREASING AND A FAILURE TO APPROPRIATELY DEAL WITH CONFLICTS OF INTEREST COULD ADVERSELY AFFECT ACC'S BUSINESS. ACC has to address potential conflicts of interest, including those relating to the activities of its affiliated entities. For example, conflicts may arise between ACC's position as a manufacturer of certificate products and the position of an ACC affiliate, AFSI, as the distributor of these products. ACC and its affiliated entities have procedures and controls in place that are designed to address conflicts of interest. Appropriately dealing with conflicts of interest, however, is complex and difficult and the enterprise's reputation could be damaged if it fails, or appears to fail, to deal appropriately with conflicts of interest. In addition, the SEC and other federal and state regulators have increased their scrutiny of potential conflicts of interest. It is possible that potential or perceived conflicts could give rise to litigation or enforcement actions. It is possible that the regulatory scrutiny of, and litigation in connection with, conflicts of interest could make the enterprise's clients less willing to enter into transactions in which such a conflict may occur, and could adversely affect ACC's business. FAILURE OF ACC'S SERVICE PROVIDERS TO PERFORM THEIR RESPONSIBILITIES COULD ADVERSELY AFFECT ACC'S BUSINESS. ACC's business operations, including investment management, transfer agent, custody and distribution services, are performed by affiliated service providers pursuant to formal contracts. The failure of a service provider to fulfill its responsibilities could have an adverse effect on ACC's financial condition and results of operations that could be material. ACC IS SUBJECT TO TAX CONTINGENCIES THAT COULD ADVERSELY AFFECT ITS PROVISION FOR INCOME TAXES. ACC is subject to the income tax laws of the U.S., its states and municipalities. These tax laws are complex and may be subject to different interpretations. ACC must make judgments and interpretations about the application of these inherently complex tax laws when determining the provision for income taxes and must also make estimates about when in the future certain items affect taxable income in the various tax jurisdictions. Disputes over interpretations of the tax laws may be settled with the taxing authority upon examination or audit. BREACHES OF SECURITY, OR THE PERCEPTION THAT OUR TECHNOLOGY INFRASTRUCTURE IS NOT SECURE, COULD HARM OUR BUSINESS. ACC's business requires the appropriate and secure utilization of consumer and other sensitive information. ACC's operations require the secure transmission of confidential information over public networks. Security breaches in connection with the delivery of ACC's products and services, including products and services utilizing the Internet, and the trend toward broad 7 consumer and general public notification of such incidents, could significantly harm ACC's business, financial condition or results of operations. Even if ACC successfully protects its technology infrastructure and the confidentiality of sensitive data, ACC could suffer harm to its business and reputation if attempted security breaches are publicized. ACC cannot be certain that advances in criminal capabilities, discovery of new vulnerabilities, attempts to exploit vulnerabilities in ACC's systems, data thefts, physical system or network break-ins or inappropriate access, or other developments will not compromise or breach the technology or other security measures protecting the networks used in connection with ACC's products and services. PROTECTION FROM SYSTEM INTERRUPTIONS IS IMPORTANT TO ACC'S BUSINESS. IF ACC EXPERIENCES A SUSTAINED INTERRUPTION TO ACC'S TELECOMMUNICATIONS OR DATA PROCESSING SYSTEMS, IT COULD HARM ACC'S BUSINESS. System or network interruptions could delay and disrupt ACC's ability to develop, deliver or maintain ACC's products and services, causing harm to ACC's business and reputation and resulting in loss of customers or revenue. These interruptions can include fires, floods, earthquakes, power losses, equipment failures, software failures and other events beyond ACC's control. RISK MANAGEMENT POLICIES AND PROCEDURES MAY NOT BE FULLY EFFECTIVE IN MITIGATING RISK EXPOSURE IN ALL MARKET ENVIRONMENTS OR AGAINST ALL TYPES OF RISK, INCLUDING EMPLOYEE AND FINANCIAL ADVISOR MISCONDUCT. ACC has devoted significant resources toward developing ACC's risk management policies and procedures and will continue to do so in the future. Nonetheless, ACC's policies and procedures to identify, monitor and manage risks may not be fully effective in mitigating ACC's risk exposure in all market environments or against all types of risk. Many of ACC's methods of managing risk and exposures are based upon ACC's use of observed historical market behavior or statistics based on historical models. During periods of market volatility or due to unforeseen events, the historically derived correlations upon which these methods are based may not be valid. As a result, these methods may not accurately predict future exposures, which could be significantly greater than what ACC's models indicate. This could cause us to incur investment losses or cause ACC's hedging and other risk management strategies to be ineffective. Other risk management methods depend upon the evaluation of information regarding markets, clients, catastrophe occurrence or other matters that is publicly available or otherwise accessible to us, which may not always be accurate, complete, up-to-date or properly evaluated. Moreover, ACC is subject to the risks of errors and misconduct by ACC's employees and AFSI's financial advisors -- such as fraud, non-compliance with policies, recommending transactions that are not suitable, and improperly using or disclosing confidential information -- which is difficult to detect in advance and deter, and could harm ACC's business, results of operations or financial condition. ACC is further subject to the risk of nonperformance or inadequate performance of contractual obligations by third party vendors of products and services that are used in ACC's businesses. Management of operational, legal and regulatory risks requires, among other things, policies and procedures to record properly and verify a large number of transactions and events, and these policies and procedures may not be fully effective in mitigating ACC's risk exposure in all market environments or against all types of risk. Insurance and other traditional risk-shifting tools may be held by or be available to us in order to manage certain exposures, but they are subject to terms such as deductibles, coinsurance, limits and policy exclusions, as well as risk of counterparty denial of coverage, default or insolvency. ITEM 1B. UNRESOLVED STAFF COMMENTS None. ITEM 2. PROPERTIES ACC occupies office space in Minneapolis, Minnesota, which is leased or owned by Ameriprise Financial. ITEM 3. LEGAL PROCEEDINGS ACC may be a party to litigation and arbitration proceedings in the ordinary course of its business. The outcome of any litigation or threatened litigation cannot be predicted with any certainty. ACC believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its financial condition or results of operations. However, it is possible that the outcome of any such proceedings could have a material impact on ACC's financial position or results of operations. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Item omitted pursuant to General Instructions (I)(2)(c) of Form 10-K. 8 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES All of ACC's outstanding common stock is owned by Ameriprise Financial. There is no established public trading market for ACC's common stock. Frequency and amount of capital transactions with Ameriprise Financial during the past two years were (in millions):
DIVIDENDS/ RETURN RECEIPT OF OF CAPITAL PAID CAPITAL FROM TO AMERIPRISE AMERIPRISE FINANCIAL FINANCIAL --------------- ------------ FOR THE YEAR ENDED DECEMBER 31, 2007: March 31, 2007 ......................... $15 $-- June 29, 2007 .......................... 15 -- September 28, 2007 ..................... 25 -- December 31, 2007 ...................... 15 -- --- --- Total ............................... $70 $-- === ===
DIVIDENDS/ RETURN RECEIPT OF OF CAPITAL PAID CAPITAL FROM TO AMERIPRISE AMERIPRISE FINANCIAL FINANCIAL --------------- ------------ FOR THE YEAR ENDED DECEMBER 31, 2006: March 31, 2006.......................... $35 $-- June 30, 2006........................... 15 -- September 30, 2006...................... 10 -- December 29, 2006....................... 10 -- --- --- Total................................ $70 $-- === ===
Restriction on ACC's present or future ability to pay dividends to Ameriprise Financial: Certain series of installment certificate products outstanding provide that cash dividends may be paid by ACC only in calendar years for which additional credits of at least 1/2 of 1% on such series of certificates have been authorized by ACC. This requirement has been met for 2007 and 2006 by ACC's declaration of additional credits in meeting this requirement. Appropriated retained earnings resulting from the pre-declaration of additional credits to ACC's certificate product owners are not available for the payment of dividends by ACC. In addition, ACC will discontinue issuance of certificates subject to the pre-declaration of additional credits and will make no further pre-declaration as to outstanding certificates if at any time the capital and unappropriated retained earnings of ACC should be less than 5% of net certificate reserves (certificate reserves less certificate loans). At December 31, 2007, the capital and unappropriated retained earnings amounted to 5.6% of net certificate reserves. ITEM 6. SELECTED FINANCIAL DATA Item omitted pursuant to General Instructions (I)(2)(a) of Form 10-K. ITEM 7. MANAGEMENT'S NARRATIVE ANALYSIS The following information should be read in conjunction with the accompanying audited financial statements and related notes included elsewhere in this report. The following discussion may contain forward-looking statements that reflect ACC's plans, estimates and beliefs. ACC's actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those discussed below under the heading "Forward-Looking Statements" and elsewhere in this report, particularly in "Item 1A-Risk Factors." RESULTS OF OPERATIONS ACC's net income is derived primarily from the after-tax yield on investments and realized investment gains (losses), less investment expenses and interest credited on certificate reserve liabilities. Changes in net income trends occur largely due to changes in investment returns in ACC's portfolio, from realization of investment gains (losses), and from changes in interest crediting rates to certificate products. ACC follows U.S. generally accepted accounting principles. In 2007, investment income decreased $56.7 million, or 20.6%, compared to 2006. This decrease was primarily a result of a reduction in holdings, due to lower client volumes and client net outflows, and the impact of smaller gains on equity index 9 options, due to market conditions, hedging outstanding stock market certificates. The decrease was slightly offset by a small increase in the average rate of return on investments. In 2006, investment income decreased $37.4 million, or 12.0%, compared to 2005 mainly due to a reduction in holdings, mostly related to the American Express Bank Limited ("AEB") and American Express Bank International ("AEBI") business wind-down. This overall decrease was slightly offset by an increase in gains on equity index options due to the effect of higher appreciation in the S&P 500 on the value of options hedging outstanding stock market certificates. Investment expense in 2007 decreased $2.3 million, or 6.0%. The decrease is mainly due to lower distribution fees, as a result of lower client volumes and less distribution fees being paid to AEB and AEBI as a result of the business wind-down of AEB and AEBI. This decrease was partially offset by an increase in transfer agent fees paid to RiverSource Service Corporation, an affiliate of ACC, due to an increase in rates in the transfer agent agreement effective in the first quarter of 2007. In 2006, investment expense decreased $12.7 million, or 24.9%. The decrease is mainly due to less distribution fees being paid to AEB and AEBI as a result of the business wind-down of AEB and AEBI. In 2007, net provision for certificate reserves decreased $28.9 million, or 13.7%. The decrease is the result of lower stock market participation costs and interest credited costs resulting from lower client volumes. The overall decrease was offset by an increase in client crediting rates. In 2006, net provision for certificate reserves increased $12.2 million, or 6.1%, due to an increase in additional credits and interest authorized by ACC on fully-paid certificates. These increases are a result of increases in short-term interest rates and greater stock market participation costs resulting from equity market appreciation, partially offset by lower volumes due to the AEB and AEBI business wind-down and a $1 million adjustment for interest credited on stock market certificates. Net realized gains on investments were $0.9 million for 2007 compared to net realized losses of $1.2 million for 2006. Investment gains for the year ended December 31, 2007 included a decrease of $1.7 million to the allowance for loan losses on commercial mortgage loans. Included in net realized gains and losses on investments are gross realized gains and losses on sales of securities using the specific identification method, as noted in the table below for the years ended December 31:
2007 2006 ------- ------- (IN THOUSANDS) Available-for-Sale securities: Gross realized gains from sales $ 1,427 $ 1,815 Gross realized losses from sales (1,804) (3,045) Other-than-temporary impairments (455) -- Other, net 1,704 (17)
The effective tax rate was (82.0)% for the year ended December 31, 2007 compared to 34.5% for the year ended December 31, 2006. The effective tax rate for the year ended December 31, 2007 reflects the impact of a $0.9 million tax benefit related to the settlement of taxes for capital losses in prior years and the level of current year tax advantaged items relative to the level of pretax income. RECENT ACCOUNTING PRONOUNCEMENTS AND SIGNIFICANT ACCOUNTING POLICIES For information regarding recent accounting pronouncements and their expected impact on the Company's future results of operations or financial condition, see Note 1 to ACC's financial statements. Also see Note 1 for significant accounting policies. FORWARD-LOOKING STATEMENTS This report contains forward-looking statements, which are subject to risks and uncertainties. The words "believe," "expect," "anticipate," "optimistic," "intend," "plan," "aim," "will," "may," "should," "could," "would," "likely," and similar expressions are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors, which could cause actual results, performance or achievements to differ materially from future results, performance or achievements. These statements are not guarantees or indicative of future performance. Important assumptions and other important factors that could cause actual results to differ materially from those forward-looking statements include, but are not limited to, those factors, risks and uncertainties described in "Item 1A-Risk Factors" and elsewhere in ACC's Annual Report on Form 10-K. ACC's future financial condition and results of operations, as well as any forward-looking statements contained in this report, are made only as of the date hereof. ACC undertakes no obligation to update or revise any forward-looking statements. 10 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK IMPACT OF MARKET VOLATILITY ON RESULTS OF OPERATIONS ACC has two principal components of market risk: interest rate risk and equity market risk. Interest rate risk results from investing in assets that are somewhat longer and reset less frequently than the liabilities they support. In prior years, ACC managed interest rate risk through the use of a variety of tools that include derivative financial instruments, such as interest rate swaps, caps, and floors, which change the interest rate characteristics of client liabilities or investment assets. Because certain of the provisions for certificates are impacted by the value of equity indices, from time to time ACC enters into risk management strategies that may include the use of equity derivative financial instruments, such as equity options, to mitigate ACC's exposure to volatility in the equity markets. Ameriprise Financial's Asset Liability Committee ("ALCO"), which is comprised of senior business managers, holds regularly scheduled meetings to review models projecting various interest rate scenarios and risk/return measures and their effect on various portfolios managed by RiverSource Investments, LLC, including that of ACC. ACC's Board of Directors has appointed the ALCO as the investment committee of ACC. The ALCO's objectives are to structure ACC's portfolio of investment securities based upon the type and behavior of the certificates in the certificate reserve liabilities, to achieve targeted levels of profitability within defined risk parameters and to meet certificate contractual obligations. ACC primarily invests in mortgage and asset-backed securities and intermediate term corporate debt securities to provide its certificate owners with a competitive rate of return on their certificates while managing risk. These investments provide ACC with a historically dependable and targeted margin between the interest rate earned on investments and the interest rate credited to certificate owners' accounts. ACC does not invest in securities to generate short-term trading profits for its own account. To evaluate interest rate and equity price risk ACC performs sensitivity testing which measures the impact on pretax income from the sources listed below for a 12 month period following a hypothetical 100 basis point increase in interest rates and a hypothetical 10% decline in equity markets. At December 31, 2007, aggregating ACC's exposure from all sources of interest rate risk net of financial derivatives hedging that exposure detailed below, ACC estimates a negative impact of $0.2 million on pretax income for the 12 month period if, hypothetically, interest rates had increased by 100 basis points and remain at that level for 12 months. This compares with an estimate of a negative impact of $4.2 million made at December 31, 2006 for 12 months following a hypothetical 100 basis point increase in interest rates at December 31, 2006. At December 31, 2007, aggregating ACC's exposure from all sources of equity price risk net of financial derivatives hedging that exposure detailed below, ACC estimates no impact on pretax income for the 12 month period if, hypothetically, equity markets had declined by 10% and remain at that level for 12 months. This compares with an estimate of a minimal impact at December 31, 2006 for 12 months following a hypothetical 10% drop in equity markets at December 31, 2006. The numbers below show ACC's estimate of the pretax impact of these hypothetical market moves, net of hedging, as of December 31, 2007. Following the table is a discussion by source of risk and the portfolio management techniques and derivative financial instruments ACC uses to mitigate these risks.
NET RISK EXPOSURE TO PRETAX INCOME -------------------- INTEREST EQUITY SOURCES OF MARKET RISK RATE PRICE ---------------------- -------- ------ (IN THOUSANDS) Flexible Savings and other fixed rate certificates .. $(200) $-- Stock market certificates ........................... -- -- ----- --- Total ............................................ $(200) $-- ===== ===
Actual results could differ materially from those illustrated above as they are based on a number of estimates and assumptions. These include assuming the composition of invested assets and liabilities does not change in the 12 month period following the hypothetical market decline and assuming the increase in interest rates produces a parallel shift in the yield curve. The selection of a 100 basis point interest rate increase and a 10% equity market decline should not be construed as a prediction of future market events. FLEXIBLE SAVINGS AND OTHER FIXED RATE CERTIFICATES ACC has interest rate risk from its Flexible Savings and other fixed rate certificates. These are investment certificates generally ranging in amounts from $1,000 to $1 million with terms ranging from three to 36 months. ACC guarantees an 11 interest rate to the holders of these products. Payments collected from clients are primarily invested in fixed rate securities to fund the client credited rate with the spread between the rate earned from investments and the rate credited to clients recorded as earned income. Client liabilities and investment assets generally differ as it relates to basis, repricing or maturity characteristics. Rates credited to clients generally reset at shorter intervals than the yield on underlying investments. This exposure is not currently hedged although ACC monitors its investment strategy and makes modifications based on changing liabilities and the expected rate environment. ACC has $2.6 billion in reserves included in certificate reserves on the Balance Sheet at December 31, 2007 to cover the liabilities associated with these products. At December 31, 2007, ACC estimates the interest rate risk from this exposure on pretax income for the 12 month period following a hypothetical increase of 100 basis points in interest rates to be a negative $0.2 million. STOCK MARKET CERTIFICATES Stock market certificates are purchased for amounts generally from $1,000 to $1 million for terms of 52 weeks which can be extended to a maximum of 14 terms. For each term the certificate holder can choose to participate 100% in any percentage increase in the S&P 500 Index up to a maximum return or choose partial participation in any increase in the S&P 500 Index plus a fixed rate of interest guaranteed in advance. If partial participation is selected, the total of equity-linked return and guaranteed rate of interest cannot exceed the maximum return. Reserves for the stock market certificates of $1.1 billion are included in certificate reserves on the Balance Sheet at December 31, 2007. The notional amount and fair value asset (liability) of derivatives hedging this product are as follows.
DECEMBER 31, ------------------------------------------- 2007 2006 -------------------- -------------------- NOTIONAL FAIR NOTIONAL FAIR AMOUNT VALUE AMOUNT VALUE --------- -------- --------- -------- (IN THOUSANDS) Purchased calls ............... $ 899,918 $ 58,575 $ 900,029 $103,806 Written calls ................. (965,152) (26,796) (962,499) (55,794) Purchased S&P 500 futures(1) .. 3,398 -- 1,357 --
- ---------- (1) These S&P 500 futures are cash settled daily and, therefore, have no fair value. Interest Rate Risk - Stock Market Certificates Stock market certificates have some interest rate risk as changes in interest rates affect the fair value of the payout to be made to the certificate holder. This exposure to interest rate changes is hedged by the derivatives listed above. ACC estimates that if, hypothetically, interest rates had increased by 100 basis points at December 31, 2007 and remain at that level for 12 months, ACC's unhedged exposure would be a negative impact of $0.6 million on pretax income for the 12 month period offset by a positive impact of the same amount from ACC's hedging strategy for a net immaterial exposure. Equity Price Risk - Stock Market Certificates The equity-linked return to investors creates equity price risk exposure. ACC seeks to minimize this exposure with purchased futures and call spreads that replicate what ACC must credit to client accounts. ACC estimates that if, hypothetically, equity markets had declined by 10% at December 31, 2007 and remain at that level for 12 months, the impact to pretax income for the 12 month period without hedging would be a positive $21.6 million. The impact of ACC's hedging strategy offsets that gain for an immaterial net exposure. CREDIT RISK ACC's potential derivative credit exposure to each counterparty is aggregated with all of its other exposures to the counterparty to determine compliance with established credit and market risk limits at the time ACC enters into a derivative transaction. Credit exposures may take into account enforceable netting arrangements. Before executing a new type or structure of derivative contract, ACC determines the variability of the contract's potential market and credit exposures and whether such variability might reasonably be expected to create exposure to a counterparty in excess of established limits. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA See Index to Financial Statements at page F-1 hereof. 12 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. ITEM 9A(T). CONTROLS AND PROCEDURES DISCLOSURE CONTROLS AND PROCEDURES ACC maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) designed to provide reasonable assurance that the information required to be reported in the Exchange Act filings is recorded, processed, summarized and reported within the time periods specified and pursuant to SEC regulations, including controls and procedures designed to ensure that this information is accumulated and communicated to ACC's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding the required disclosure. It should be noted that, because of inherent limitations, ACC's disclosure controls and procedures, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the disclosure controls and procedures are met. ACC's management, with the participation of its Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of ACC's disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, ACC's Chief Executive Officer and Chief Financial Officer have concluded that ACC's disclosure controls and procedures were effective at a reasonable level of assurance as of December 31, 2007. This annual report does not contain management's report or an attestation of the Company's independent registered public accounting firm regarding internal control over financial reporting. The requirements for such report and attestation do not apply to a registered investment company such as Ameriprise Certificate Company by reason of the exemption set forth in Section 405 of the Sarbanes-Oxley Act of 2002, exempting registered investment companies from the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and rules of the Securities and Exchange Commission promulgated thereunder. CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING There have not been any changes in ACC's internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth fiscal quarter of the year to which this report relates that have materially affected, or are reasonably likely to materially affect, ACC's internal control over financial reporting. ITEM 9B. OTHER INFORMATION None. PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Item omitted pursuant to General Instructions (I)(2)(c) of Form 10-K. ITEM 11. EXECUTIVE COMPENSATION Item omitted pursuant to General Instructions (I)(2)(c) of Form 10-K. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS Item omitted pursuant to General Instructions (I)(2)(c) of Form 10-K. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE Item omitted pursuant to General Instructions (I)(2)(c) of Form 10-K. 13 ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES The Board of Directors of ACC, at the recommendation of its Audit Committee, has appointed Ernst & Young LLP ("Ernst & Young") as independent registered public accountants to audit the financial statements of ACC for the years ended December 31, 2007 and 2006. AUDIT FEES The aggregate fees billed or to be billed by Ernst & Young for each of the last two years for professional services rendered for the audit of ACC's annual Financial Statements and services that were provided in connection with statutory and regulatory filings were $123,000 and $115,000 for 2007 and 2006, respectively. AUDIT-RELATED FEES ACC was not billed by Ernst & Young for any fees for audit-related services for 2007 or 2006. TAX FEES ACC was not billed by Ernst & Young for any tax fees for 2007 or 2006. ALL OTHER FEES ACC was not billed by Ernst & Young for any other fees for 2007 or 2006. POLICY ON PRE-APPROVAL OF SERVICES PROVIDED BY INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS Pursuant to the requirements of the Sarbanes-Oxley Act of 2002, the terms of the engagement of Ernst & Young are subject to the specific pre-approval of the Audit Committee of Ameriprise Financial. All audit and permitted non-audit services to be performed by Ernst & Young for ACC require pre-approval by the Audit Committee of Ameriprise Financial in accordance with pre-approval procedures established by the Audit Committee of Ameriprise Financial. The procedures require all proposed engagements of Ernst & Young for services to ACC of any kind to be directed to the General Auditor of Ameriprise Financial and then submitted for approval to the Audit Committee of Ameriprise Financial prior to the beginning of any services. In addition, the charter of ACC's Audit Committee requires pre-approval of any engagement, including the fees and other compensation, of Ernst & Young (1) to provide any services to ACC and prohibits the performance of certain specified non-audit services, and (2) to provide any non-audit services to Ameriprise Financial or any affiliate of Ameriprise Financial that controls, is controlled by, or under common control with Ameriprise Financial. Certain exceptions apply to the pre-approval requirement. In 2007 and 2006, 100% of the services provided by Ernst & Young for ACC were pre-approved by the Audit Committee of Ameriprise Financial. PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES (a) 1. Financial Statements: See Index to Financial Statements on page F-1 hereof. 2. Financial Statement Schedules: See Index to Financial Statements on page F-1 hereof. 3. Exhibits: See Exhibit Index on pages E-1 through E-2 hereof. 14 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. REGISTRANT AMERIPRISE CERTIFICATE COMPANY BY /s/ William F. Truscott ---------------------------------------- NAME AND TITLE William F. Truscott, Director, President and Chief Executive Officer (Principal Executive Officer) DATE February 29, 2008 Pursuant to the requirements of the Securities and Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. BY /s/ Brian J. McGrane ---------------------------------------- NAME AND TITLE Brian J. McGrane, Vice President and Chief Financial Officer (Principal Financial Officer) DATE February 29, 2008 BY /s/ David K. Stewart ---------------------------------------- NAME AND TITLE David K. Stewart, Vice President, Controller and Chief Accounting Officer (Principal Accounting Officer) DATE February 29, 2008 BY /s/ Rodney P. Burwell* ---------------------------------------- NAME AND TITLE Rodney P. Burwell, Director DATE February 29, 2008 BY /s/ Jean B. Keffeler* ---------------------------------------- NAME AND TITLE Jean B. Keffeler, Director DATE February 29, 2008 BY /s/ Thomas R. McBurney* ---------------------------------------- NAME AND TITLE Thomas R. McBurney, Director DATE February 29, 2008 BY /s/ Karen M. Bohn* ---------------------------------------- NAME AND TITLE Karen M. Bohn, Director DATE February 29, 2008 *By /s/ William F. Truscott --------------------------------- Name: William F. Truscott Executed by William F. Truscott on behalf of those indicated pursuant to a Power of Attorney, dated February 19, 2008, filed electronically on or about February 29, 2008 as Exhibit 24(a) hereto. 15 INDEX TO FINANCIAL STATEMENTS AND SCHEDULES FINANCIAL STATEMENTS: Part I. Financial Information: Item 1. Financial Statements Report of Independent Registered Public Accounting Firm.... F-2 Statements of Income - Years ended December 31, 2007, 2006 and 2005................................................... F-3 Balance Sheets - December 31, 2007 and 2006................ F-4 Statements of Cash Flows - Years ended December 31, 2007, 2006 and 2005.............................................. F-6 Statements of Comprehensive Income (Loss) - Years ended December 31, 2007, 2006 and 2005........................... F-7 Statements of Shareholder's Equity - Years ended December 31, 2007, 2006 and 2005.................................... F-8 Notes to Financial Statements.............................. F-9 Schedule No.: Financial Schedules: I Investments in Securities of Unaffiliated Issuers, December 31, 2007.......................................... F-25 II Investments in and Advances to Affiliates and Income thereon, December 31, 2007, 2006 and 2005.................. F-40 III Mortgage Loans on Real Estate and Interest earned on Mortgages, year ended December 31, 2007.................... F-41 V Qualified Assets on Deposit, December 31, 2007............. F-45 VI Certificate Reserves, year ended December 31, 2007......... F-46 VII Valuation and Qualifying Accounts, years ended December 31, 2007, 2006 and 2005.................................... F-64
All other Schedules required by Article 6 of Regulation S-X are not required under the related instructions or are inapplicable and therefore have been omitted. F-1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Shareholders Ameriprise Certificate Company We have audited the accompanying balance sheets of Ameriprise Certificate Company, (a wholly owned subsidiary of Ameriprise Financial, Inc.) (the Company) as of December 31, 2007 and 2006, and the related statements of income, comprehensive income (loss), shareholder's equity, and cash flows for each of the three years in the period ended December 31, 2007. Our audits also included the financial statement schedules listed in the index at Item 8. These financial statements and schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007 and 2006, by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Ameriprise Certificate Company at December 31, 2007 and 2006, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2007, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic financial statements taken as whole, present fairly in all material respects the information set forth therein. As discussed in Note 3 to the financial statements, in 2007 the Company adopted Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109. /s/ Ernst & Young LLP Minneapolis, Minnesota February 27, 2008 F-2 AMERIPRISE CERTIFICATE COMPANY STATEMENTS OF INCOME YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
2007 2006 2005 -------- -------- -------- (in thousands) INVESTMENT INCOME Interest income from unaffiliated investments: Available-for-Sale securities .................................... $182,109 $216,385 $265,125 First mortgage loans on real estate and other loans .............. 25,497 28,310 26,916 Certificate loans ................................................ 467 553 672 Dividends ........................................................... 1,541 1,119 1,813 Equity index options ................................................ 6,329 27,740 15,699 Interest rate swap agreements ....................................... -- -- (124) Other ............................................................... 2,389 963 2,386 -------- -------- -------- Total investment income ....................................... 218,332 275,070 312,487 -------- -------- -------- INVESTMENT EXPENSES Ameriprise Financial and affiliated company fees: Distribution ..................................................... 18,148 22,041 33,980 Investment advisory and services ................................. 9,880 10,743 12,141 Transfer agent ................................................... 6,422 3,842 3,859 Depository ....................................................... 328 360 395 Other ............................................................... 1,171 1,258 581 -------- -------- -------- Total investment expenses ..................................... 35,949 38,244 50,956 -------- -------- -------- NET INVESTMENT INCOME BEFORE PROVISION FOR CERTIFICATE RESERVES AND INCOME TAX EXPENSE ............................................... 182,383 236,826 261,531 -------- -------- -------- PROVISION FOR CERTIFICATE RESERVES According to the terms of the certificates: Provision for certificate reserves ............................... 6,228 6,854 6,568 Interest on additional credits ................................... 182 217 257 Interest on advance payments ..................................... 9 11 13 Additional credits/interest authorized by ACC ....................... 177,460 205,981 194,015 -------- -------- -------- Total provision for certificate reserves before reserve recoveries .. 183,879 213,063 200,853 Reserve recoveries from terminations prior to maturity .............. (1,352) (1,626) (1,603) -------- -------- -------- Net provision for certificate reserves .............................. 182,527 211,437 199,250 -------- -------- -------- NET INVESTMENT (LOSS) INCOME BEFORE INCOME TAX EXPENSE .............. (144) 25,389 62,281 Income tax (benefit) expense ........................................ (902) 8,775 21,949 -------- -------- -------- Net investment income ............................................... 758 16,614 40,332 -------- -------- -------- NET REALIZED GAIN (LOSS) ON INVESTMENTS Securities of unaffiliated issuers before income tax expense (benefit) ........................................................ 872 (1,247) (16,388) Income tax expense (benefit) ........................................ 305 (436) (5,736) -------- -------- -------- Net realized gain (loss) on investments ............................. 567 (811) (10,652) -------- -------- -------- NET INCOME .......................................................... $ 1,325 $ 15,803 $ 29,680 ======== ======== ========
See Notes to Financial Statements. F-3 AMERIPRISE CERTIFICATE COMPANY BALANCE SHEETS DECEMBER 31, 2007 AND 2006
2007 2006 ---------- ---------- (in thousands, except share data) ASSETS QUALIFIED ASSETS Investments in unaffiliated issuers: Cash and cash equivalents ................................. $ 76,079 $ 174,247 Available-for-Sale securities ............................. 3,419,201 4,250,409 First mortgage loans on real estate and other loans, net .. 341,944 408,883 Certificate loans - secured by certificate reserves ....... 7,923 9,526 ---------- ---------- Total investments ...................................... 3,845,147 4,843,065 ---------- ---------- Receivables: Dividends and interest .................................... 26,575 32,719 Investment securities sold ................................ 2,543 1,665 ---------- ---------- Total receivables ...................................... 29,118 34,384 ---------- ---------- Equity index options, purchased .............................. 58,575 103,806 ---------- ---------- Total qualified assets ................................. 3,932,840 4,981,255 ---------- ---------- OTHER ASSETS Deferred taxes, net ......................................... 40,434 72,138 Current taxes receivable .................................... 9,287 -- Due from related party ...................................... 132 94 ---------- ---------- Total other assets ..................................... 49,853 72,232 ---------- ---------- Total assets ........................................ $3,982,693 $5,053,487 ========== ==========
See Notes to Financial Statements. F-4 AMERIPRISE CERTIFICATE COMPANY BALANCE SHEETS (CONTINUED) DECEMBER 31, 2007 AND 2006
2007 2006 ---------- ---------- (in thousands, except share data) LIABILITIES AND SHAREHOLDER'S EQUITY LIABILITIES Certificate Reserves Installment certificates: Reserves to mature .......................................... $ 54,871 $ 66,805 Additional credits and accrued interest ..................... 1,533 2,009 Advance payments and accrued interest ....................... 254 278 Other ....................................................... -- 1 Fully paid certificates: Reserves to mature .......................................... 3,675,240 4,606,157 Additional credits and accrued interest ..................... 25,529 44,322 Due to unlocated certificate holders ........................ 67 30 ---------- ---------- Total certificate reserves ............................... 3,757,494 4,719,602 ---------- ---------- Accounts Payable and Accrued Liabilities: Due to related party ........................................... 525 700 Current taxes payable to parent ................................ -- 41 Payable for investment securities purchased .................... 1,263 1,830 Equity index options, written .................................. 26,796 55,794 Other liabilities .............................................. 19,991 46,009 ---------- ---------- Total accounts payable and accrued liabilities .................... 48,575 104,374 ---------- ---------- Total liabilities ........................................ 3,806,069 4,823,976 ---------- ---------- SHAREHOLDER'S EQUITY Common shares ($10 par value, 150,000 shares authorized and issued) ........................................................ 1,500 1,500 Additional paid-in capital ........................................ 207,964 274,115 Retained earnings: Appropriated for pre-declared additional credits and interest .. 15 15 Appropriated for additional interest on advance payments ....... 949 3,473 Unappropriated ................................................. -- -- Accumulated other comprehensive loss - net of tax ................. (33,804) (49,592) ---------- ---------- Total shareholder's equity ............................... 176,624 229,511 ---------- ---------- Total liabilities and shareholder's equity $3,982,693 $5,053,487 ========== ==========
See Notes to Financial Statements. F-5 AMERIPRISE CERTIFICATE COMPANY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
2007 2006 2005 ----------- ----------- ----------- (in thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income ....................................................... $ 1,325 $ 15,803 $ 29,680 Adjustments to reconcile net income to net cash provided by operating activities: Interest added to certificate loans ........................... (312) (357) (442) Amortization of premiums, accretion of discounts, net ......... 9,301 11,876 16,201 Deferred taxes, net ........................................... 22,823 (14,314) 12,987 Net realized loss on investments before income tax provision .. 828 1,247 16,388 Provision for loan loss ....................................... (1,700) -- -- Changes in other operating assets and liabilities: Equity index options purchased and written, net ............... 16,233 (12,198) 7,652 Dividends and interest receivable ............................. 6,144 6,423 3,020 Due from parent for income taxes .............................. (9,328) (3,212) (13,016) Other assets and liabilities, net ............................. (44,663) 28,523 (5,008) ----------- ----------- ----------- NET CASH PROVIDED BY OPERATING ACTIVITIES ........................ 651 33,791 67,462 ----------- ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES Available-for-Sale securities: Sales ......................................................... 210,554 461,988 804,177 Maturities and redemptions .................................... 727,996 836,698 1,051,692 Purchases ..................................................... (92,728) (287,895) (1,659,895) First mortgage loans on real estate and other loans: Sales ......................................................... 6,589 19,211 30,447 Maturities and redemptions .................................... 129,427 118,378 109,025 Purchases ..................................................... (67,434) (115,819) (107,985) Certificate loans: Payments ...................................................... 984 1,562 1,352 Fundings ...................................................... (990) (1,189) (1,175) Changes in amounts due to and from brokers, net .................. (1,445) (4,129) (17,539) ----------- ----------- ----------- NET CASH PROVIDED BY INVESTING ACTIVITIES ........................ 912,953 1,028,805 210,099 ----------- ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES Payments from certificate owners ................................. 820,521 1,945,380 3,243,729 Certificate maturities and cash surrenders ....................... (1,762,293) (2,882,829) (3,412,402) Dividend/return of capital to parent ............................. (70,000) (70,000) (25,000) ----------- ----------- ----------- NET CASH USED IN FINANCING ACTIVITIES ............................ (1,011,772) (1,007,449) (193,673) ----------- ----------- ----------- NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ............. (98,168) 55,147 83,888 Cash and cash equivalents at beginning of year ................... 174,247 119,100 35,212 ----------- ----------- ----------- CASH AND CASH EQUIVALENTS AT END OF YEAR ......................... $ 76,079 $ 174,247 $ 119,100 =========== =========== =========== SUPPLEMENTAL DISCLOSURES INCLUDING NON-CASH TRANSACTIONS: Cash (received) paid for income taxes ............................ $ (14,306) $ 25,382 $ 22,683 Certificate maturities and surrenders through loan reductions .... 1,921 1,763 1,966
See Notes to Financial Statements. F-6 AMERIPRISE CERTIFICATE COMPANY STATEMENTS OF COMPREHENSIVE INCOME (LOSS) YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
2007 2006 2005 ------- ------- --------- (in thousands) NET INCOME .............................................................. $ 1,325 $15,803 $ 29,680 ------- ------- --------- OTHER COMPREHENSIVE INCOME (LOSS) Unrealized gains (losses) on Available-for-Sale securities: Unrealized holding gains (losses) arising during the period ....... 23,836 9,176 (127,788) Income tax expense (benefit) ...................................... 8,589 1,994 (44,726) ------- ------- --------- Net unrealized holding gains (losses) arising during the period ... 15,247 7,182 (83,062) ------- ------- --------- Reclassification adjustment for losses included in net income .................................................. 832 1,230 17,403 Income tax benefit ................................................ 291 449 6,091 ------- ------- --------- Net reclassification adjustment for losses included in net income .................................................. 541 781 11,312 ------- ------- --------- Net unrealized gains (losses) on Available-for-Sale securities ...... 15,788 7,963 (71,750) ------- ------- --------- Unrealized losses on interest rate swaps: Unrealized losses arising during the period ....................... -- -- (515) Income tax benefit ................................................ -- -- (180) ------- ------- --------- Net unrealized holding losses arising during the period ........... -- -- (335) ------- ------- --------- Reclassification adjustment for gains included in net income ...... -- -- 124 Income tax expense ................................................ -- -- 43 ------- ------- --------- Net reclassification adjustment for gains included in net income .. -- -- 81 ------- ------- --------- Net unrealized losses on interest rate swaps ......................... -- -- (254) ------- ------- --------- NET OTHER COMPREHENSIVE INCOME (LOSS) ................................... 15,788 7,963 (72,004) ------- ------- --------- TOTAL COMPREHENSIVE INCOME (LOSS) ....................................... $17,113 $23,766 $ (42,324) ======= ======= =========
See Notes to Financial Statements. F-7 AMERIPRISE CERTIFICATE COMPANY STATEMENTS OF SHAREHOLDER'S EQUITY YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
RETAINED EARNINGS APPROPRIATED APPROPRIATED FOR FOR ACCUMULATED PRE-DECLARED ADDITIONAL OTHER NUMBER OF ADDITIONAL ADDITIONAL INTEREST ON COMPREHENSIVE OUTSTANDING COMMON PAID-IN CREDITS ADVANCE (LOSS) INCOME SHARES SHARES CAPITAL AND INTEREST PAYMENTS UNAPPROPRIATED - NET OF TAX TOTAL ----------- ------ ---------- ------------ ------------ -------------- ------------- -------- (in thousands, except share data) BALANCE AT JANUARY 1, 2005 .................... 150,000 $1,500 $ 323,844 $15 $ 549 $ 2,712 $ 14,449 $343,069 Net income ................. -- -- -- -- 29,680 -- 29,680 Transfer ................... -- -- -- 2,647 (2,647) -- -- Dividend/return of capital to parent .............. -- -- -- -- (25,000) -- (25,000) Net other comprehensive loss .................... -- -- -- -- -- (72,004) (72,004) ------- ------ --------- --- ------- -------- -------- -------- BALANCE AT DECEMBER 31, 2005 .................... 150,000 1,500 323,844 15 3,196 4,745 (57,555) 275,745 Net income ................. -- -- -- -- 15,803 -- 15,803 Transfer ................... -- -- -- 277 (277) -- -- Dividend/return of capital to parent ............... -- (49,729) -- -- (20,271) -- (70,000) Net other comprehensive income .................. -- -- -- -- -- 7,963 7,963 ------- ------ --------- --- ------- -------- -------- -------- BALANCE AT DECEMBER 31, 2006 .................... 150,000 1,500 274,115 15 3,473 -- (49,592) 229,511 Net income ................. -- -- -- -- 1,325 -- 1,325 Transfer ................... -- -- -- (2,524) 2,524 -- -- Dividend/return of capital to parent ............... -- (66,151) -- -- (3,849) -- (70,000) Net other comprehensive income .................. -- -- -- -- -- 15,788 15,788 ------- ------ --------- --- ------- -------- -------- -------- BALANCE AT DECEMBER 31, 2007 .................... 150,000 $1,500 $ 207,964 $15 $ 949 $ -- $(33,804) $176,624
See Notes to Financial Statements. F-8 1. BASIS OF PRESENTATION & SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF BUSINESS Ameriprise Certificate Company ("ACC" or the "Company"), is a wholly owned subsidiary of Ameriprise Financial, Inc. ("Ameriprise Financial"). ACC is registered as an investment company under the Investment Company Act of 1940 (the "1940 Act") and is in the business of issuing face-amount investment certificates. Face-amount certificates issued by ACC entitle the certificate owner to receive at maturity a stated amount of money and interest or credits declared from time to time by ACC, at its discretion. The certificates issued by ACC are not insured by any government agency. ACC's certificates are sold primarily by Ameriprise Financial Services, Inc. ("AFSI"), an affiliate of ACC. AFSI is registered as a broker-dealer in all 50 states, the District of Columbia and Puerto Rico. As of December 31, 2007, ACC offered four different certificate products to the public. ACC is impacted by significant changes in interest rates as interest crediting rates on certificate products generally reset at shorter intervals than the change in the yield on ACC's investment portfolio. The specified maturities of most of ACC's certificate products range from ten to twenty years. Within that maturity period, most certificates have interest crediting rate terms ranging from three to thirty-six months. Interest crediting rates are subject to change and certificate product owners can surrender their certificates without penalty at term end. In addition, two types of certificate products have interest tied, in whole or in part, to a broad-based stock market index. All of the certificates are available as qualified investments for Individual Retirement Accounts, 401(k) plans and other qualified retirement plans. SEPARATION OF AMERIPRISE FINANCIAL On February 1, 2005, American Express Company ("American Express") announced its intention to pursue the disposition of 100% of its shareholdings in Ameriprise Financial (the "Separation") through a tax-free distribution to American Express shareholders. Effective as of the close of business on September 30, 2005, American Express completed the separation and distribution of common shares to American Express shareholders (the "Distribution"). In connection with the Distribution, Ameriprise Financial entered into certain agreements with American Express to effect the separation of its business and to define the responsibility for obligations arising before and after the date of the Distribution, including among others, obligations relating to transition services, taxes and employees. Based on the terms of the distribution and investment advisory and services agreements set in place between ACC and its affiliates, no separation costs were allocated to ACC. During the third quarter of 2005, ACC agreed with American Express Bank Limited ("AEB"), a subsidiary of American Express, to execute an orderly wind-down of the certificate business marketed through AEB and American Express Bank International ("AEBI"). This wind-down was completed during the first quarter of 2007. The amount of certificate reserves associated with this business was approximately nil and $4.4 million as of December 31, 2007 and 2006, respectively. BASIS OF FINANCIAL STATEMENT PRESENTATION The accompanying financial statements are presented in accordance with U.S. generally accepted accounting principles. ACC uses the equity method of accounting for its wholly owned unconsolidated subsidiary, Investors Syndicate Development Corporation, as prescribed by the Securities and Exchange Commission ("SEC") for non-investment company subsidiaries. Certain reclassifications of prior period amounts have been made to conform to the current presentation. Accounting estimates are an integral part of the financial statements. In part, they are based upon assumptions concerning future events. Among the more significant is investment securities valuation as discussed in Note 3. These accounting estimates reflect the best judgment of management and actual results could differ. INTEREST INCOME Interest income is accrued as earned using the effective interest method, which makes an adjustment for security premiums and discounts, so that the related security recognizes a constant rate of return on the outstanding balance throughout its term. PREFERRED STOCK DIVIDEND INCOME ACC recognizes dividend income from cumulative redeemable preferred stocks with fixed maturities on an accrual basis similar to that used for recognizing interest income on debt securities. Dividend income from perpetual preferred stock is recognized on an ex-dividend date basis. F-9 CASH AND CASH EQUIVALENTS ACC has defined cash and cash equivalents as cash in banks and highly liquid investments with original maturities of 90 days or less. AVAILABLE-FOR-SALE SECURITIES Debt securities and marketable equity securities are classified as Available-for-Sale and carried at fair value which is generally based on quoted market prices. Unrealized gains (losses) on securities classified as Available-for-Sale are reflected, net of taxes, in accumulated other comprehensive income (loss) as part of Shareholder's Equity. ACC uses the specific identification method for determining cost in computing realized gains (losses) on securities. Gains (losses) are recognized in the results of operations upon disposition of the securities. In addition, losses are also recognized when management determines that a decline in value is other-than-temporary, which requires judgment regarding the amount and timing of recovery. Indicators of other-than-temporary impairment for debt securities include issuer downgrade, default or bankruptcy. ACC also considers the extent to which cost exceeds fair value, the duration of time of that decline and management's judgment as to the issuer's current and prospective financial condition, as well as ACC's ability and intent to hold until recovery. The charges are reflected in net realized gain (loss) on investments in the Statements of Income. FIRST MORTGAGE LOANS ON REAL ESTATE AND OTHER LOANS First mortgage loans on real estate reflect principal amounts outstanding less allowance for loan losses, which is the basis for determining realized gains (losses). Other loans reflect amortized cost less allowance for losses. The allowance for loan losses is measured as the excess of the loan's recorded investment over its present value of expected principal and interest payments discounted at the loan's effective interest rate or the fair value of collateral. Additionally, the level of the allowance for loan losses is determined based on several factors, including historical experience and current economic and political conditions. Management regularly evaluates the adequacy of the allowance for loan losses and believes it is adequate to absorb estimated losses in the portfolio. ACC generally stops accruing interest on mortgage loans on real estate for which interest payments are delinquent more than three months. Based on management's judgment as to the ultimate collectibility of principal, interest payments received are either recognized as income or applied to the recorded investment in the loan. CERTIFICATE RESERVES Investment certificates may be purchased either with a lump-sum payment or by installment payments. Certificate product owners are entitled to receive, at maturity, a definite sum of money. Payments from certificate owners are credited to investment certificate reserves. Investment certificate reserves accumulate interest at specified percentage rates as declared by ACC. Reserves also are maintained for advance payments made by certificate owners, accrued interest thereon, and for additional credits in excess of minimum guaranteed rates and accrued interest thereon. On certificates allowing for the deduction of a surrender charge, the cash surrender values may be less than accumulated investment certificate reserves prior to maturity dates. Cash surrender values on certificates allowing for no surrender charge are equal to certificate reserves. The payment distribution, reserve accumulation rates, cash surrender values, reserve values and other matters are governed by the 1940 Act. Certain certificates offer a return based on the relative change in a stock market index. The certificates with an equity-based return contain embedded derivatives, which are carried at fair value within investment certificate reserves on the Balance Sheets. The fair values of these embedded derivatives incorporate current market data inputs. Changes in fair value are reflected in provision for certificate reserves within the Statements of Income. F-10 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Derivative instruments, consisting of interest rate swaps and options and futures contracts, if any, are classified in the Balance Sheets at fair value. The fair value of ACC's derivative financial instruments is determined using either market quotes or valuation models that are based upon the net present value of estimated future cash flows and incorporate current market observable inputs to the extent available. The accounting for the change in the fair value of the derivative financial instrument depends on its intended use and the resulting hedge designation, if any. ACC has historically designated interest rate swaps as cash flow hedges and does not designate options and futures contracts as accounting hedges. For derivative financial instruments that qualify as cash flow hedges, the effective portions of the gain or loss on the derivative instruments are reported in accumulated other comprehensive income (loss) and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Statements of Income with the hedged instrument or transaction impact. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income (loss) may be recognized into earnings over the period that the hedged item impacts earnings. For any hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income (loss) are recognized in earnings immediately. Derivative financial instruments that are entered into for hedging purposes are designated as such at the time that ACC enters into the contract. For all derivative financial instruments that are designated for hedging activities, ACC formally documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also formally documents its risk management objectives and strategies for entering into the hedge transactions. ACC formally assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, ACC will discontinue the application of hedge accounting. See Note 9 for further discussion of derivatives and hedging activities of ACC. For derivative financial instruments that do not qualify for hedge accounting or are not designated as hedges, changes in fair value are recognized in current period earnings. INCOME TAXES ACC's taxable income is included in the consolidated federal income tax return of Ameriprise Financial. ACC provides for income taxes on a separate return basis, except that, under an agreement between Ameriprise Financial and ACC, tax benefits are recognized for losses to the extent they can be used in the consolidated return. It is the policy of Ameriprise Financial that it will reimburse its subsidiaries for any tax benefits recorded. ACC's provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe, taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items. In connection with the provision for income taxes, ACC's financial statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. RECENTLY ISSUED ACCOUNTING STANDARDS In December 2007, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 141 (revised 2007) "Business Combinations" ("SFAS 141(R)"). SFAS 141(R) establishes principles and requirements for how an acquirer recognizes and measures the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in an acquiree, and goodwill acquired. SFAS 141(R) also requires an acquirer to disclose information about the financial effects of a business combination. SFAS 141(R) is effective prospectively for business combinations with an acquisition date on or after the beginning of the first annual reporting period beginning on or after December 15, 2008, with early adoption prohibited. The Company will apply the standard to any business combinations within the scope of SFAS 141(R) occurring after December 31, 2008. In December 2007, the FASB issued SFAS No. 160 "Noncontrolling Interests in Consolidated Financial Statements--an amendment of ARB No. 51" ("SFAS 160"). SFAS 160 establishes the accounting and reporting for ownership interest in subsidiaries not attributable, directly or indirectly, to a parent. SFAS 160 requires that noncontrolling (minority) interests be classified as equity (instead of as a liability) within the balance sheet, and net income attributable to both the parent and the F-11 noncontrolling interest be disclosed on the face of the statement of income. SFAS 160 is effective for fiscal years beginning after December 15, 2008, and interim periods within those years with early adoption prohibited. The provisions of SFAS 160 are to be applied prospectively, except for the presentation and disclosure requirements which are to be applied retrospectively to all periods presented. The Company is currently evaluating the impact of SFAS 160 on its results of operations and financial condition. In June 2007, the American Institute of Certified Public Accountants ("AICPA") issued Statement of Position ("SOP") 07-1, "Clarification of the Scope of the Audit and Accounting Guide 'Investment Companies' and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies" ("SOP 07-1"). SOP 07-1 provided clarification on the definition of an investment company. In February 2008, the FASB decided to indefinitely defer the effective date of SOP 07-1. In May 2007, the FASB issued FASB Staff Position ("FSP") FASB Interpretation No. ("FIN") 46(R)-7, "Application of FIN 46(R) to Investment Companies" ("FSP 46(R)-7"). FSP 46(R)-7 is dependent upon clarification of the definition of an investment company as provided in SOP 07-1 and is effective upon the adoption of that SOP. With the deferral of SOP 07-1, the Company will defer the adoption of both SOP 07-1 and FSP 46(R)-7. In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities - Including an amendment of FASB Statement No. 115" ("SFAS 159"). SFAS 159 gives entities the option to measure certain financial instruments and other items at fair value that are not currently permitted to be measured at fair value. The objective of SFAS 159 is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. SFAS 159 requires entities to report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. SFAS 159 also establishes presentation and disclosure requirements. SFAS 159 is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007. The Company did not adopt SFAS 159 for any of its existing eligible assets or liabilities and has no current plans to adopt SFAS 159 for any new financial instruments. In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements" ("SFAS 157"). SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 applies under other accounting pronouncements that require or permit fair value measurements. Accordingly, SFAS 157 does not require any new fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Early adoption is permitted provided that the entity has not issued financial statements for any period within the year of adoption. The provisions of SFAS 157 are required to be applied prospectively as of the beginning of the fiscal year in which SFAS 157 is initially applied, except for certain financial instruments as defined in SFAS 157 which will require retrospective application of SFAS 157. The transition adjustment, if any, will be recognized as a cumulative-effect adjustment to the opening balance of retained earnings for the fiscal year of adoption. The Company adopted SFAS 157 effective January 1, 2008. The adoption of SFAS 157 will not have a material effect on the Company's results of operations and financial condition. In accordance with FSP FAS 157-(2), "Effective Date of FASB Statement No. 157" ("FSP 157-(2)"), the Company will defer the adoption of SFAS 157 for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis. In June 2006, the FASB issued FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, "Accounting for Income Taxes." FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company adopted FIN 48 as of January 1, 2007. The effect of adopting FIN 48 on the Company's results of operations and financial condition was not material. In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid Financial Instruments" ("SFAS 155"). SFAS 155 amends SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133") and SFAS 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities" ("SFAS 140"). SFAS 155: (i) permits fair value remeasurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation; (ii) clarifies which interest-only and principal-only strips are not subject to the requirements of SFAS 133; (iii) establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; (iv) clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and (v) amends SFAS 140 to eliminate the prohibition on a qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. The F-12 Company adopted SFAS 155 as of January 1, 2007. The effect of adopting SFAS 155 on the Company's results of operations and financial condition was not material. 2. DEPOSIT OF ASSETS AND MAINTENANCE OF QUALIFIED ASSETS Under the provisions of its certificates and the 1940 Act, ACC was required to have Qualified Assets (as defined in Section 28(b) of the 1940 Act) in the amount of $3.7 billion and $4.7 billion at December 31, 2007 and 2006, respectively. ACC reported Qualified Assets of $4.0 billion and $5.1 billion at December 31, 2007 and 2006, respectively. Qualified Assets exclude net unrealized pretax losses on Available-for-Sale securities of $53.5 million and $78.1 million at December 31, 2007 and 2006, respectively, and unsettled investment purchases of $1.3 million and $1.8 million at December 31, 2007 and 2006, respectively. Qualified Assets are valued in accordance with such provisions of Minnesota Statutes as are applicable to investments of life insurance companies. These values are the same as financial statement carrying values, except for debt securities classified as Available-for-Sale and all marketable equity securities, which are carried at fair value in the financial statements but are valued at either amortized cost, market value or par value based on the state requirements for qualified asset and deposit maintenance purposes. Pursuant to provisions of the certificates, the 1940 Act, the Central Depository Agreement and requirements of various states, Qualified Assets (accounted for on a trade date basis) of ACC were deposited as follows:
DECEMBER 31, 2007 ---------------------------------- REQUIRED DEPOSITS DEPOSITS EXCESS ---------- ---------- -------- (IN THOUSANDS) Deposits to meet certificate liability requirements: Pennsylvania (at market value) $ 151 $ 150 $ 1 Texas, Illinois, New Jersey (at par value) 221 215 6 Central Depository (at amortized cost) 3,968,072 3,733,462 234,610 ---------- ---------- -------- Total $3,968,444 $3,733,827 $234,617 ========== ========== ========
DECEMBER 31, 2006 ---------------------------------- REQUIRED DEPOSITS DEPOSITS EXCESS ---------- ---------- -------- (IN THOUSANDS) Deposits to meet certificate liability requirements: Pennsylvania (at market value) $ 153 $ 150 $ 3 Texas, Illinois, New Jersey (at par value) 222 215 7 Central Depository (at amortized cost) 4,978,537 4,678,232 300,305 ---------- ---------- -------- Total $4,978,912 $4,678,597 $300,315 ========== ========== ========
The assets on deposit with the Central Depository at December 31, 2007 and 2006 consisted of securities and other loans having a deposit value of $3.7 billion and $4.6 billion, respectively, mortgage loans on real estate of $205.8 million and $265.5 million, respectively, and other investments of $75.5 million and $65.6 million, respectively. Additionally, these assets on deposit include unsettled purchases of investments in the amount of $1.3 million and $1.8 million at December 31, 2007 and 2006, respectively. Ameriprise Trust Company, the custodian for ACC, is the Central Depository. See Note 7. F-13 3. INVESTMENTS IN AVAILABLE-FOR-SALE SECURITIES Fair values of investments in securities represent market prices or estimated fair values when quoted prices are not available. Estimated fair values are determined by using established procedures involving, among other things, review of market indexes, price levels of current offerings and comparable issues, price estimates, estimated future cash flows, and market data from brokers. Available-for-Sale securities at December 31, 2007 are distributed by type as presented below:
GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE ---------- ---------- ---------- --------- (IN THOUSANDS) Mortgage and other asset-backed securities... $2,159,248 $4,055 $(37,189) $2,126,114 Corporate debt securities.................... 1,259,984 1,026 (20,979) 1,240,031 Stated maturity preferred stock.............. 4,483 17 -- 4,500 Perpetual preferred stock.................... 19,612 -- (355) 19,257 U.S. Government and agency obligations....... 20,345 43 (12) 20,376 State and municipal obligations.............. 9,000 -- (77) 8,923 ---------- ------ -------- ---------- Total $3,472,672 $5,141 $(58,612) $3,419,201 ========== ====== ======== ==========
Available-for-Sale securities at December 31, 2006 are distributed by type as presented below:
GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR COST GAINS LOSSES VALUE ---------- ---------- ---------- --------- (IN THOUSANDS) Mortgage and other asset-backed securities... $2,718,298 $2,464 $(48,570) $2,672,192 Corporate debt securities.................... 1,554,492 1,127 (33,421) 1,522,198 Stated maturity preferred stock.............. 5,784 7 (64) 5,727 Perpetual preferred stock.................... 19,613 1,097 -- 20,710 U.S. Government and agency obligations....... 21,346 -- (475) 20,871 State and municipal obligations.............. 9,016 -- (305) 8,711 ---------- ------ -------- ---------- Total $4,328,549 $4,695 $(82,835) $4,250,409 ========== ====== ======== ==========
At December 31, 2007 and 2006, fixed maturity securities comprised approximately 89% and 88%, respectively, of the Company's total investments. These securities were rated by either Moody's, Standard & Poor's ("S&P"), or by RiverSource Investments, LLC, using criteria similar to Moody's and S&P, when a public rating does not exist. Ratings on investment grade securities are presented using S&P's convention and, if the two agencies' ratings differ, the lower rating was used. A summary of fixed maturity securities was as follows:
2007 2006 ------------------------------------ ------------------------------------ PERCENT OF PERCENT OF RATING AMORTIZED TOTAL FAIR AMORTIZED TOTAL FAIR COST FAIR VALUE VALUE COST FAIR VALUE VALUE ---------- ---------- ---------- ---------- ---------- ---------- (IN THOUSANDS) (IN THOUSANDS) AAA......................... $2,146,353 $2,114,369 62% $2,689,407 $2,642,626 62% AA.......................... 390,267 388,638 11 412,937 405,588 10 A........................... 263,144 260,449 8 461,327 450,736 11 BBB......................... 521,365 512,769 15 607,573 595,724 14 Below investment grade...... 131,931 123,719 4 137,692 135,026 3 ---------- ---------- --- ---------- ---------- --- Total fixed maturities... $3,453,060 $3,399,944 100% $4,308,936 $4,229,700 100% ========== ========== === ========== ========== ===
Of the securities rated AAA, 42% and 43% at December 31, 2007 and 2006, respectively, are U.S. Government Agency mortgage-backed securities that are rated by a public rating agency. At both December 31, 2007 and 2006, approximately 3% of securities with fixed maturities, other than GNMA, FNMA and FHLMC, were rated by RiverSource Investments, LLC. F-14 The following table provides information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2007:
LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL --------------------- ----------------------- ----------------------- FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES -------- ---------- ---------- ---------- ---------- ---------- (IN THOUSANDS) Mortgage and other asset-backed securities... $296,515 $(16,389) $1,495,484 $(20,800) $1,791,999 $(37,189) Corporate debt securities.... 62,757 (728) 1,051,911 (20,251) 1,114,668 (20,979) Stated maturity preferred stock........... 901 -- -- -- 901 -- Perpetual preferred stock.... 19,257 (355) -- -- 19,257 (355) U.S. Government and agency obligations........ -- -- 14,986 (12) 14,986 (12) State and municipal obligations............... -- -- 8,924 (77) 8,924 (77) -------- -------- ---------- -------- ---------- -------- Total........................ $379,430 $(17,472) $2,571,305 $(41,140) $2,950,735 $(58,612) ======== ======== ========== ======== ========== ========
The following table provides information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2006:
LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL --------------------- ----------------------- ----------------------- FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSSES VALUE LOSSES VALUE LOSSES -------- ---------- ---------- ---------- ---------- ---------- (IN THOUSANDS) Mortgage and other asset-backed securities... $236,573 $(1,444) $1,986,235 $(47,126) $2,222,808 $(48,570) Corporate debt securities.... 84,805 (428) 1,308,667 (32,993) 1,393,472 (33,421) Stated maturity preferred stock........... -- -- 3,859 (64) 3,859 (64) U.S. Government and agency obligations........ 202 (1) 20,669 (474) 20,871 (475) State and municipal obligations............... -- -- 8,696 (305) 8,696 (305) -------- ------- ---------- -------- ---------- -------- Total..................... $321,580 $(1,873) $3,328,126 $(80,962) $3,649,706 $(82,835) ======== ======= ========== ======== ========== ========
In evaluating potential other-than-temporary impairments, ACC considers the extent to which cost exceeds fair value and the duration and size of that difference. A key metric in performing this evaluation is the ratio of fair value to cost. The following table summarizes the unrealized losses by ratio of fair value to cost as of December 31, 2007:
LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL ---------------------------------- ---------------------------------- ---------------------------------- NUMBER GROSS NUMBER GROSS NUMBER GROSS RATIO OF FAIR VALUE OF UNREALIZED OF UNREALIZED OF UNREALIZED TO AMORTIZED COST SECURITIES FAIR VALUE LOSSES SECURITIES FAIR VALUE LOSSES SECURITIES FAIR VALUE LOSSES - ------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- (IN THOUSANDS, EXCEPT NUMBER OF SECURITIES) 95% - 100% 54 $242,284 $ (3,148) 304 $2,489,523 $(27,745) 358 $2,731,807 $(30,893) 90% - 95% 13 96,727 (8,392) 17 41,920 (3,198) 30 138,647 (11,590) 80% - 90% 2 40,419 (5,932) 7 23,197 (4,201) 9 63,616 (10,133) < 80 -- -- -- 7 16,665 (5,996) 7 16,665 (5,996) --- -------- -------- --- ---------- -------- --- ---------- -------- Total 69 $379,430 $(17,472) 335 $2,571,305 $(41,140) 404 $2,950,735 $(58,612) === ======== ======== === ========== ======== === ========== ========
F-15 As part of ACC's ongoing monitoring process, management determined that a majority of the gross unrealized losses on its Available-for-Sale securities are attributable to changes in interest rates and credit spreads across asset classes. As noted in the table above, a significant portion of the gross unrealized losses relates to securities that have a fair value to amortized cost ratio of 95% or above, resulting in an overall 98% ratio of fair value to amortized cost for all securities with an unrealized loss. From an overall perspective, the gross unrealized losses were not concentrated in any individual industries or with any individual securities. The securities with a fair value to amortized cost ratio of 80-90% primarily relate to the consumer products, financial, and home building industries. The securities with a fair value to cost of less than 80% primarily relate to the financial and home building industries. The total gross unrealized loss related to the home building industry was $2.4 million. The unrealized losses in the other categories are not concentrated in any individual industry or with any individual issuer. ACC monitors the investments and metrics described previously on a quarterly basis to identify and evaluate investments that have indications of possible other-than-temporary impairments. Additionally, ACC has the ability and intent to hold these securities for a time sufficient to recover its amortized cost and has, therefore, concluded that none had other-than-temporary impairment at December 31, 2007. ACC's total mortgage and asset backed exposure at December 31, 2007 was $2,126.1 million which included $1,608.2 million of residential mortgage backed securities and $352.8 million of commercial mortgage backed securities. At December 31, 2007, residential mortgage backed securities included $889.3 million of agency-backed securities, $356.4 million of Alt-A securities, and $362.5 million of prime, non-agency securities. With respect to the Alt-A securities, the vast majority are rated AAA. None of the structures are levered, and the majority of the AAA-rated holdings are "super senior" bonds, meaning they have more collateral support for credit enhancement than required to receive a AAA rating. While overall delinquencies in the market continue to deteriorate, most of these positions are performing in-line or better than their vintage. With regard to asset backed securities, ACC's exposure at December 31, 2007 was $165.1 million, which included $41.4 million of securities backed by subprime collateral. These securities are predominately AAA-rated bonds backed by seasoned, traditional, first lien collateral. Holdings include both floating rate and short-duration fixed securities. ACC has no other structured or hedge fund investments with exposure to subprime residential mortgages. The following is a distribution of Available-for-Sale securities by maturity as of December 31, 2007. Cash flows may differ from contractual maturities because issuers may call or prepay obligations.
AMORTIZED FAIR COST VALUE ---------- ---------- (IN THOUSANDS) Due within one year..................... $ 529,926 $ 527,169 Due after one year through five years... 693,606 680,286 Due after five years through 10 years... 70,280 66,375 ---------- ---------- 1,293,812 1,273,830 Mortgage and asset-backed securities.... 2,159,248 2,126,114 Perpetual preferred stock............... 19,612 19,257 ---------- ---------- Total................................ $3,472,672 $3,419,201 ========== ==========
Mortgage and other asset-backed securities primarily reflect GNMA, FNMA, and FHLMC securities at December 31, 2007 and 2006. The expected payouts on mortgage and other asset-backed securities may not coincide with their contractual maturities. As such, these securities, as well as perpetual preferred stock, were not included in the maturities distribution. At December 31, 2007 and 2006, other than GNMA, FNMA and FHLMC, the only issuers greater than 1% of the fair market value of ACC's total investment portfolio are the following:
2007 2006 ---- ---- Wachovia Corporation........... 1.4% 1.1% Prudential Financial, Inc...... 1.0% 0.8%
F-16 Included in net realized gains and losses are gross realized gains and losses on sales of securities, as well as other-than-temporary impairment losses on investments, classified as Available-for-Sale, determined using the specific identification method, as noted in the following table for the years ended December 31:
2007 2006 2005 ------- ------- -------- (in thousands) Gross realized gains from sales.... $ 1,427 $ 1,815 $ 1,988 Gross realized losses from sales... (1,804) (3,045) (19,365) Other-than-temporary impairments... (455) -- (26)
4. INVESTMENTS IN FIRST MORTGAGE LOANS ON REAL ESTATE AND OTHER LOANS The carrying amounts of first mortgage loans on real estate and other loans at December 31 are below:
2007 2006 --------- -------- (in thousands) First mortgage loans on real estate ..... $207,159 $268,563 Other loans ............................. 139,621 146,856 Reserve for losses ...................... (4,836) (6,536) -------- -------- First mortgage and other loans, net... $341,944 $408,883 ======== ========
Also included in net realized gain (loss) on investments before income taxes for the year ended December 31, 2007 was a decrease of $1.7 million to the allowance for loan losses on commercial mortgage loans. At December 31, 2007 and 2006, ACC did not hold investments in impaired mortgage or other loans. ACC recognized nil of interest income related to such investments for the years ended December 31, 2007 and 2006, respectively. At both December 31, 2007 and 2006, approximately 5% and 6%, respectively, of ACC's invested assets were first mortgage loans on real estate. Concentrations of credit risk of first mortgage loans on real estate by region at December 31 were:
2007 2006 ---- ---- Mortgages by U.S. region: Atlantic............................. 30% 23% North Central........................ 23 28 Pacific.............................. 15 18 Mountain............................. 13 12 South Central........................ 12 14 New England.......................... 7 5 ---- ---- Total................................... 100% 100% ==== ====
Concentrations of credit risk of first mortgage loans on real estate by property type at December 31 were:
2007 2006 ---- ---- Mortgage loans by U.S. property type: Office buildings..................... 34% 42% Apartments........................... 20 19 Industrial buildings................. 19 14 Shopping centers and retail.......... 18 17 Other................................ 9 8 ---- ---- Total................................... 100% 100% ==== ====
At December 31, 2007 and 2006, ACC had no commitments to fund first mortgage loans on real estate. ACC holds the mortgage document, which gives ACC the right to take possession of the property if the borrower fails to perform according to the terms of the agreements. ACC employs policies and procedures to ensure the creditworthiness of the borrowers and that funds will be available on the funding date. ACC's first mortgage loans on commercial real estate are restricted to 80% or less of the market value of the real estate at the time of the loan funding. F-17 5. CERTIFICATE RESERVES Reserves maintained on outstanding certificates have been computed in accordance with the provisions of the certificates and Section 28 of the 1940 Act. The average rates of accumulation on certificate reserves at December 31, 2007 were as follows:
AVERAGE GROSS AVERAGE RESERVE ACCUMULATION ADDITIONAL BALANCE RATES CREDIT RATES ---------- ------------- ------------ (in thousands, except percentages) Installment certificates: Reserves to mature: With guaranteed rates...................... $ 3,289 4.00% 0.50% Without guaranteed rates (a) .............. 51,582 -- 3.13% Additional credits and accrued interest: With guaranteed rates...................... 713 3.40% -- Without guaranteed rates (a)............... 820 -- 0.50% Advance payments and accrued interest (b) .... 254 3.45% -- Other......................................... -- -- 0.50% Fully paid certificates: Reserves to mature: With guaranteed rates...................... 58,622 3.19% 0.08% Without guaranteed rates (a) and (c) ...... 3,616,618 -- 3.74% Additional credits and accrued interest....... 25,529 -- 0.70% Due to unlocated certificate holders.......... 67 -- -- ---------- Total......................................... $3,757,494 ==========
The average rates of accumulation on certificate reserves at December 31, 2006 were as follows:
AVERAGE GROSS AVERAGE RESERVE ACCUMULATION ADDITIONAL BALANCE RATES CREDIT RATES ---------- ------------- ------------ (in thousands, except percentages) Installment certificates: Reserves to mature: With guaranteed rates...................... $ 5,086 4.00% 0.50% Without guaranteed rates (a) .............. 61,719 -- 3.24% Additional credits and accrued interest: With guaranteed rates...................... 1,139 3.33% -- Without guaranteed rates (a)............... 870 -- 0.44% Advance payments and accrued interest (b) .... 278 3.42% -- Other......................................... 1 -- 0.37% Fully paid certificates: Reserves to mature: With guaranteed rates...................... 66,294 3.19% 0.03% Without guaranteed rates (a) and (c) ...... 4,539,863 -- 4.22% Additional credits and accrued interest....... 44,322 -- 0.26% Due to unlocated certificate holders.......... 30 -- -- ---------- Total......................................... $4,719,602 ==========
(a) There is no minimum rate of accrual on these reserves. Interest is declared periodically, quarterly, or annually in accordance with the terms of the separate series of certificates. (b) Certain series of installment certificates guarantee accrual of interest on advance payments at an average of 3.26%. ACC's rate of accrual is currently set at 4%, which is in effect through April 2009. (c) Ameriprise Stock Market Certificate and Ameriprise Market Strategy Certificate enable the certificate owner to participate in any relative rise in a major stock market index up to a cap without risking loss of principal. Generally the certificates have a term of 52 weeks and may continue for up to 20 successive terms. The reserve balances on these certificates at December 31, 2007 and 2006 were $1.1 billion. F-18 On certain series of single payment certificates, additional interest is pre-declared for periods greater than one year. The retained earnings appropriated for the pre-declared additional interest at December 31, 2007 and 2006 was $0.9 million and $3.5 million, respectively, which reflects the difference between certificate reserves on these series, calculated on a statutory basis, and the reserves maintained per books. The carrying amounts of net certificate reserves at December 31, 2007 and 2006 consisted of the following:
2007 2006 ---------- ---------- (in thousands) Reserves with terms of one year or less... $3,395,998 $4,275,459 Other..................................... 361,496 444,143 ---------- ---------- Total certificate reserves................ 3,757,494 4,719,602 ---------- ---------- Unapplied certificate transactions........ 226 2,032 Certificate loans and accrued interest.... (8,025) (9,657) ---------- ---------- Total..................................... $3,749,695 $4,711,977 ========== ==========
6. DIVIDEND RESTRICTION Certain series of installment certificates outstanding provide that cash dividends may be paid by ACC only in calendar years for which additional credits of at least one-half of 1% on such series of certificates have been authorized by ACC. This restriction has been satisfied for 2007 and 2006 by ACC's declaration of additional credits. ACC is required to maintain cash and "qualified assets" meeting the standards of Section 28(b) of the 1940 Act, as modified by an order of the SEC. The amortized cost of such investments must be at least equal to ACC's net liabilities on all outstanding face-amount certificates plus $250,000. ACC's qualified assets consist of cash and cash equivalents, first mortgage loans on real estate and other loans, U.S. government and government agency securities, municipal bonds, corporate bonds, preferred stocks and other securities meeting specified standards. So long as ACC wishes to rely on the SEC order, as a condition to the order, ACC has agreed to maintain an amount of unappropriated retained earnings and capital equal to at least 5% of certificate reserves (less outstanding certificate loans). To the extent that payment of a dividend would decrease the capital ratio below the required 5%, payment of a dividend would be restricted. In determining compliance with this condition, qualified assets are valued in accordance with the provisions of Minnesota Statutes where such provisions are applicable. ACC has also entered into a written understanding with the State of Minnesota, Department of Commerce, that ACC will maintain capital equal to 5% of the assets of ACC (less outstanding certificate loans). To the extent that payment of a dividend would decrease this ratio below the required 5%, payment of a dividend would be restricted. When computing its capital for these purposes, ACC values its assets on the basis of statutory accounting for insurance companies rather than generally accepted accounting principles. ACC is subject to annual examination and supervision by the State of Minnesota, Department of Commerce (Banking Division). F-19 7. RELATED PARTY TRANSACTIONS INVESTMENT ADVISORY, JOINT FACILITIES AND TECHNOLOGY SUPPORT Effective December 31, 2006, the investment advisory and services agreement with RiverSource Investments provides for a graduated scale of fees equal on an annual basis to 0.350% on the first $250 million of total book value of investments of ACC, 0.300% on the next $250 million, 0.250% on the next $500 million and 0.200% on the amount in excess of $1 billion. The fee is payable monthly in an amount equal to one-twelfth of each of the percentages set forth above. Net invested assets for purposes of this computation are cash and cash equivalents, accounts receivable for interest and dividends and securities sold, accounts payable for invested assets purchased, securities available for sale (including any segregated assets), trading securities, purchased equity index options, written equity index options and mortgages. The fee paid to RiverSource Investments for managing and servicing bank loans is equal to 0.35%. The fee is payable monthly and is equal to one-twelfth of 0.35%, computed each month on the basis of book value of the loans as of the close of business on the last full business day of the preceding month. DISTRIBUTION SERVICES Fees payable to AFSI on sales of ACC's certificates are based upon terms of agreements giving AFSI the right to distribute the certificates covered under the agreements. The agreements provide for payment of fees over a period of time. From time to time, ACC may sponsor or participate in sales promotions involving one or more of the certificates and their respective terms. These promotions may offer a special interest rate to attract new clients or retain existing clients. To cover the cost of these promotions, distribution fees paid to AFSI may be lowered. From September 29, 2004 through March 1, 2005, ACC sponsored a sales promotion on the 7 and 11-month Flexible Savings Certificates. ACC ran another promotion from August 30, 2006 through January 2, 2007 on the 7-month Flexible Savings Certificate. During those promotions, the distribution fee on Flexible Savings Certificates was 0.08% of the initial payment and 0.08% of the reserves maintained for these certificates at the beginning of the second and subsequent quarters after issuance. ACC is currently offering 7 and 13 month Flexible Savings Certificates. The distribution fee on the 7 month term is 0.08% of the initial payment and 0.08% of the reserves maintained for these certificates at the beginning of the second and subsequent quarters after issuance. The distribution fee on the 13 month term is 0.032% of the initial payment and 0.032% of the reserves maintained for these certificates at the beginning of the second and subsequent quarters after issuance. The aggregate fees payable under the agreements are $25 per $1,000 face amount of installment certificates sold on or after April 30, 1997. The aggregate fees payable for the first year is $2.50 per $1,000 face amount of installment certificates and the remaining $22.50 is payable over nine subsequent years. The previously offered American Express Investors Certificates have contractual distribution fee rates at an annualized rate of 1% of the reserves maintained for the certificates. Fees are paid at the end of each term on certificates with a one, two or three-month term. Fees are paid each quarter from date of issuance on certificates with a six, twelve, twenty-four or thirty-six month term. The distribution fee rate decreased 15 basis points on October 1, 2005 and another five basis points on January 1, 2006 as a consequence of the orderly wind-down of business marketed through AEB and AEBI. The previously offered Ameriprise Cash Reserve Certificates have contractual distribution fee rates of 0.0625% of the purchase price at the time of issuance and 0.0625% of the reserves maintained for these certificates at the beginning of the second and subsequent quarters from issue date. Effective October 1, 2007, these fees are waived. Effective April 26, 2000, the Ameriprise Flexible Savings Certificates have contractual distribution fee rates of 0.08% of the purchase price at the time of issuance and 0.08% of the reserves maintained for these certificates at the beginning of the second and subsequent quarters from issue date. Effective April 28, 1999, the Ameriprise Stock Market Certificate, sold through AFSI, and Ameriprise Market Strategy Certificates have contractual distribution fee rates of 0.90% of the initial investment on the first day of the certificate's term and 0.90% of the reserves maintained for these certificates at the beginning of each subsequent term. Effective April 26, 2000, the previously offered American Express Stock Market Certificates, sold through American Express Bank International, have contractual distribution fee rates of 1.00%. Fees are paid on the purchase price on the first day of the certificate's term and on the reserves maintained for these certificates at the beginning of each subsequent term. The basis for computing fees paid or payable to AEB for the distribution of the previously offered American Express Special Deposits Certificates on an annualized basis is 1.25% of the reserves maintained for the certificates on an amount from $100,000 to $249,999, 0.80% on an amount from $250,000 to $499,999, 0.65% on an amount from $500,000 to $999,999 F-20 and 0.50% on an amount $1,000,000 or more. Fees are paid at the end of each term on certificates with a one, two, or three-month term. Fees are paid at the end of each quarter from date of issuance on certificates with six, twelve, twenty-four, or thirty-six month terms. The distribution fee rate decreased 15 basis points on October 1, 2005 and another five basis points on January 1, 2006 as a consequence of the orderly wind-down of business marketed through AEB and AEBI. DEPOSITORY FEES The basis for computing fees paid or payable to Ameriprise Trust Company for depository services is as follows: Depository fees paid or payable to Ameriprise Trust Company is: Maintenance charge per account.... 5 cents per $1,000 of assets on deposit Transaction charge................ $20 per transaction Security loan activity: Depository Trust Company receive/deliver............. $20 per transaction Physical receive/deliver....... $25 per transaction Exchange collateral............ $15 per transaction
A transaction consists of the receipt or withdrawal of securities and commercial paper and/or a change in the security position. The charges are payable quarterly except for maintenance, which is an annual fee. TRANSFER AGENT FEES The basis of computing transfer agent fees paid or payable to RiverSource Service Corporation is under a Transfer Agency Agreement effective December 31, 2006. RiverSource Service Corporation maintains certificate owner accounts and records. ACC pays RiverSource Service Corporation a monthly fee of one-twelfth of $20.00 per certificate owner account for this service in addition to certain out-of-pocket expenses. 8. INCOME TAXES (Benefits) provisions for income taxes were:
2007 2006 2005 -------- -------- ------- CURRENT INCOME TAX: Federal ............................. $(22,829) $ 21,111 $ 3,760 State and local ..................... (591) 1,542 (534) -------- -------- ------- Total current income tax ......... (23,420) 22,653 3,226 -------- -------- ------- DEFERRED INCOME TAX: Federal ............................. 21,998 (12,486) 12,987 State and local ..................... 825 (1,828) -- -------- -------- ------- Total deferred income tax ......... 22,823 (14,314) 12,987 -------- -------- ------- TOTAL INCOME TAX (BENEFIT) PROVISION ... $ (597) $ 8,339 $16,213 ======== ======== =======
The principal reasons that the aggregate income tax provision is different from that computed by using the U.S. statutory rate of 35% are as follows:
2007 2006 2005 ------ ---- ---- Tax at U.S. statutory rate.............. 35.0% 35.0% 35.0% Dividend exclusion...................... (52.2)% (1.2)% (1.0)% State income tax, net................... 60.5% (3.4)% (0.8)% Taxes applicable to prior years......... (125.3)% 4.1% 2.1% ------ ---- ---- Income tax (benefit) provision.......... (82.0)% 34.5% 35.3% ====== ==== ====
ACC's effective tax rate was (82.0)% for the year ended December 31, 2007 compared to 34.5% for the year ended December 31, 2006. The effective tax rate for the year ended December 31, 2007 reflects the impact of a $0.9 million tax benefit related to the settlement of taxes for capital losses in prior years and the level of current year tax advantaged items relative to the level of pretax income. F-21 Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. The significant components of deferred tax assets and liabilities at December 31, 2007 and 2006 were as follows:
2007 2006 ------- ------- (in thousands) Deferred income tax assets: Certificate reserves .................................. $ 4,454 $18,730 Investments, including bond discounts and premiums .... 16,132 24,859 Investment unrealized losses, net ..................... 19,666 28,548 Other ................................................. 206 44 ------- ------- Total deferred income tax assets ......................... 40,458 72,181 ------- ------- Deferred income tax liabilities: Other ................................................. 24 43 ------- ------- Total deferred income tax liabilities .................... 24 43 ------- ------- Net deferred income tax assets ........................... $40,434 $72,138 ======= =======
ACC is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. In the opinion of management, it is more likely than not that ACC will realize the benefit of the deferred tax assets and, therefore, no such valuation allowance has been established. Effective January 1, 2007, ACC adopted the provisions of FIN 48, which did not have an effect on ACC's balance sheet or statement of income. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(IN THOUSANDS) -------------- Balance at January 1, 2007..................................... $3,969 Additions based on tax positions related to the current year... -- Additions for tax positions of prior years..................... -- Reductions for tax positions of prior years.................... -- Settlements.................................................... -- Balance at December 31, 2007................................... -- ------ $3,969 ======
If recognized, approximately $0.8 million, net of federal tax benefits, of the unrecognized tax benefits as of January 1, 2007 and December 31, 2007, would affect the effective tax rate. ACC recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. ACC recognized interest and penalties of $0.3 million for the year ended December 31, 2007. ACC had $0.7 million and $1.0 million for the payment of interest and penalties accrued at January 1, 2007 and December 31, 2007, respectively. It is not expected that the total amounts of unrecognized tax benefits will change materially in the next 12 months. ACC files income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal or state and local income tax examinations by tax authorities for years before 1997. The Internal Revenue Service ("IRS"), as part of the overall examination of the American Express Company consolidated return, commenced an examination of ACC's U.S. income tax returns for 1997 through 2002 in the third quarter of 2005. In the first quarter of 2007, the IRS expanded the period of the examination to include 2003 through 2004. ACC's state income tax returns are currently under examination by various jurisdictions for years ranging from 1998 through 2005. F-22 9. DERIVATIVE FINANCIAL INSTRUMENTS ACC maintains an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate and equity market volatility. ACC may enter into interest rate swaps to manage interest rate sensitivity and currently enters into options and futures contracts to mitigate the negative effect on earnings that would result from an increase in the equity markets. ACC did not hold any interest rate swaps at December 31, 2007. ACC reclassified into earnings pretax losses of nil for the years ended December 31, 2007 and 2006, and $0.1 million for the year ended December 31, 2005 as a result of interest rate swap agreements. For the years ended December 31, 2007, 2006, and 2005, ACC recognized no losses on the derivatives as a result of ineffectiveness. ACC offers Ameriprise Stock Market Certificates ("SMC") that offer a return based upon the relative change in a major stock market index between the beginning and end of the SMC's term. The SMC product contains an embedded derivative, essentially the equity based return of the certificate that must be separated from the host contract and accounted for as a derivative instrument. As a result of fluctuations in equity markets, and the corresponding changes in value of the embedded derivative, the amount of expenses incurred by ACC related to SMC will positively or negatively impact reported earnings. As a means of hedging its obligations under the provisions for these certificates, ACC purchases and writes call options on the major stock market index. ACC views this strategy as a prudent management of equity market sensitivity, such that earnings are not exposed to undue risk presented by changes in equity market levels. ACC also purchases futures on the major stock market index to economically hedge its obligations. The futures are marked-to-market daily and exchange traded, exposing ACC to no counterparty risk. Derivative financial instruments are carried at fair value within other qualified assets or other liabilities. The fair value of the derivative financial instruments are determined using either market quotes or valuation models that are based upon the net present value of estimated future cash flows and incorporate current market data inputs. The options and futures contracts do not receive special hedge accounting under SFAS No. 133. As such, any changes in the fair value of the contracts are taken through earnings. The fair values of the purchased and written call options are included in equity indexed options and other liabilities, respectively, on the balance sheet. The fair value of the embedded derivatives is reflected in certificate reserves. Gains (losses) on options and futures are reflected in investment income, equity index options, on the Statements of Income. Changes in fair values of embedded derivative instruments are reflected in provision for certificate reserves. By using derivative instruments, ACC is exposed to credit and market risk. Credit risk is the possibility that the counterparty will not fulfill the terms of the contract. ACC monitors credit risk related to derivative financial instruments through established approval procedures, including setting concentration limits by counterparty, reviewing credit ratings and requiring collateral where appropriate. Market risk is the possibility that the value of the derivative financial instrument will change due to fluctuations in a factor from which the instrument derives its value, primarily an interest rate or a major stock market index. ACC manages the market risk associated with interest rate contracts by establishing and monitoring limits as to the types and degree of risk that may be undertaken. ACC primarily uses derivatives to manage risk and, therefore, cash flow and income effects of such derivatives generally offset effects of the underlying certificate product reserves. 10. FAIR VALUES OF FINANCIAL INSTRUMENTS The following table discloses fair value information for financial instruments. ACC discloses fair value information for financial instruments for which it is practicable to estimate that value. The fair values of the financial instruments presented are estimates based upon current market conditions and perceived risks at December 31, 2007 and 2006 and may require management judgment to estimate such values. These figures may not be indicative of future fair values. The fair value of the Company, therefore, cannot be estimated by aggregating the amounts presented herein. The estimated fair value of certain financial instruments such as cash and cash equivalents and certificate loans approximate the carrying amounts disclosed in the Balance Sheets. F-23 The following table discloses carrying value and fair value information for the financial instruments at December 31:
2007 2006 ----------------------- ----------------------- CARRYING FAIR CARRYING FAIR AMOUNT VALUE AMOUNT VALUE ---------- ---------- ---------- ---------- (IN THOUSANDS) FINANCIAL ASSETS: Assets for which carrying values approximate fair values................. $3,553,855 $3,553,855 $4,528,462 $4,528,462 First mortgage loans on real estate and other loans net..................... 341,944 341,925 408,883 421,526 FINANCIAL LIABILITIES: Liabilities for which carrying values approximate fair values................. $ 38,603 $ 38,603 $ 71,126 $ 71,126 Certificate reserves, net.................. 3,749,695 3,747,242 4,711,977 4,705,983
The following methods were used to estimate the fair values of financial assets and financial liabilities: FINANCIAL ASSETS Assets for which carrying values approximate fair values are cash and cash equivalents, Available-for-Sale securities, and derivative assets. Generally these assets are either short-term in duration or are recorded at fair value on the Balance Sheets. The fair value of mortgage loans on real estate, except those with significant credit deterioration, are estimated using discounted cash flow analysis, based on current interest rates for loans with similar maturities to borrowers of similar credit quality. For loans with significant credit deterioration, fair values are based on estimates of future cash flows discounted at rates commensurate with the risk inherent in the revised cash flow projections, or for collateral dependent loans, on collateral values. FINANCIAL LIABILITIES Liabilities for which carrying values approximate fair values include certain derivative and other liabilities. The carrying value approximates fair value because of their short-term nature or because they are recorded at fair value on the Balance Sheets. For variable rate investment certificates that reprice within a year, carrying values approximate fair values. For other investment certificates, fair value is estimated using discounted cash flows based on current interest rates. The valuations are reduced by the amount of the applicable surrender charges. Fair values of net certificate reserves with interest rate terms of one year or less (including embedded derivatives) approximated the carrying values less any applicable surrender charges. Fair values for other certificate reserves are determined by discounted cash flow analyses using interest rates currently offered for certificates with similar remaining terms, less any applicable surrender charges. F-24 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- BONDS AND NOTES U.S. GOVERNMENT U.S. Government-Direct Obligations FANNIE MAE 2008 4.000% 15,000 14,999 14,987 FANNIE MAE 2012 4.450% 4,974 4,974 5,012 US TREASURY 2008 5.625% 200 201 202 US TREASURY 2014 4.750% 165 171 175 TOTAL - U.S. GOVERNMENT-DIRECT OBLIGATIONS 20,339 20,345 20,376 TOTAL - U.S. GOVERNMENT 20,339 20,345 20,376 MORTGAGE BACKED SECURITIES Mortgage Backed Securities AESOP FUNDING II LLC AESOP_03- 2009 3.720% 7,500 7,513 7,471(d) AESOP_05-4 2010 4.400% 18,000 17,997 17,660(d) AESOP_2003-2 2009 3.610% 4,700 4,682 4,684(d) AMCAR_04-BM 2011 2.670% 1,934 1,923 1,927 ARMT_2004-2 2035 5.227% 3,003 3,041 2,999 BAA_2003-1 2033 5.000% 3,121 3,138 2,963 BACM_03-1 2036 3.878% 7,493 7,461 7,383 BACM_2004-5 2041 4.176% 11,724 11,732 11,592 BALL_01-FM 2016 6.119% 2,131 2,131 2,185(d) BANC OF AMERICA FUNDING CORP B 2035 5.351% 6,894 6,939 6,844 BANK OF AMERICA MORTGAGE SECUR 2033 4.150% 15,000 14,942 15,275 BANK ONE ISSUANCE TRUST BOIT 2011 3.860% 13,400 13,399 13,320 BEAR STEARNS ALT-A TRUST BALTA 2035 4.640% 8,120 8,103 7,686 BEAR STEARNS ALT-A TRUST BALTA 2035 5.352% 4,542 4,560 4,500 BOAMS_04-B 2034 4.095% 8,237 8,213 8,166 BOAMS_04-F_2A6 2034 4.146% 10,000 9,894 9,843 BOAMS_04G 2034 4.806% 8,105 7,969 7,962 BOAMS_2004-E 2034 4.110% 15,000 14,895 14,885 BOAMS_2004-E 2034 4.409% 5,801 5,569 5,743 BOAMS_2004-H 2034 4.834% 4,331 4,283 4,248 BSCMS_03-TOP10 2040 4.000% 4,764 4,774 4,668 BSCMS_2004-PWR5 2042 4.254% 7,200 7,209 7,124 BSMF_06-AR5 2046 5.075% 16,770 16,770 15,157 BVMBS_05-1 2035 4.475% 10,791 10,757 10,461 CARAT_07-1SN 2011 5.128% 15,000 14,692 14,808 CARAT_2004-2 2009 3.920% 10,000 9,958 9,960 CDCSC_02-FX1 2019 5.252% 6,336 6,343 6,380 CDTIM_05-1A 2017 4.670% 2,924 2,924 2,953(d) CENTEX HOME EQUITY CHECK_03-A 2031 3.750% 2,106 2,096 2,085 CMAC_98-C1 2031 6.490% 1,011 1,015 1,011 CMLTI_05-3 2035 4.679% 7,515 7,477 7,410 COMM_04-LNB3 2037 4.713% 7,500 7,502 7,473 COUNTRYWIDE HOME LOANS CWHL_05 2036 5.386% 1,569 1,568 1,551
F-25 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- CSFBMSC_04-C2 2036 3.819% 5,498 5,396 5,380 CWALT_05-24 2035 6.173% 5,636 5,693 5,419 CWALT_05-27 2035 6.415% 7,322 7,389 6,782 CWALT_06-OA19 2047 5.199% 20,531 20,531 18,954 CWALT_06-OC8 2036 4.975% 19,170 19,158 18,833 CWA_2004-33 2034 6.832% 2,074 2,090 2,013 CWA_2004-J7 2034 4.673% 1,532 1,528 1,506 CWHEL_04-K 2034 5.328% 1,046 1,048 1,032 CWHL_04-12 2034 5.096% 5,575 5,510 5,458 CWHL_05-HYB7 2035 5.725% 16,657 16,763 16,682 DART_05-2 2010 4.120% 1,319 1,319 1,316(d) DBALT_07-AR1 2047 5.025% 22,051 22,051 19,312 DBALT_07-OA1 2047 5.015% 8,147 8,147 7,678 DEUTSCHE ALT-A SECURITIES INC 2037 5.035% 24,300 24,300 21,107 EQUITY ONE EQABS_2004-3 2034 5.100% 8,046 8,133 7,883 FANNIE MAE 2008 3.930% 11,156 11,211 11,081 FANNIE MAE 2019 6.075% 9,243 9,405 9,824 FANNIE MAE 036225 2016 9.000% 9 9 10 FANNIE MAE 050973 2009 6.000% 529 525 531 FANNIE MAE 070007 2017 6.288% 117 118 118 FANNIE MAE 070117 2017 6.713% 40 40 40 FANNIE MAE 088879 2019 6.662% 250 252 253 FANNIE MAE 089125 2019 6.715% 332 339 338 FANNIE MAE 105989 2020 6.301% 125 132 130 FANNIE MAE 190726 2033 6.788% 605 618 614 FANNIE MAE 249907 2024 7.500% 519 526 529 FANNIE MAE 250670 2011 7.000% 169 169 174 FANNIE MAE 250671 2011 7.500% 447 446 460 FANNIE MAE 250857 2012 7.000% 424 423 437 FANNIE MAE 252259 2014 5.500% 37 37 38 FANNIE MAE 252344 2014 5.500% 2,706 2,656 2,770 FANNIE MAE 252381 2014 5.500% 2,623 2,571 2,660 FANNIE MAE 254010 2008 5.500% 628 625 630 FANNIE MAE 254508 2012 5.000% 6,868 6,963 6,952 FANNIE MAE 254584 2012 5.000% 11,124 11,240 11,263 FANNIE MAE 254586 2013 5.000% 17,512 17,788 17,734 FANNIE MAE 254590 2018 5.000% 17,446 17,557 17,488 FANNIE MAE 254591 2018 5.500% 8,912 9,174 9,046 FANNIE MAE 254663 2013 5.000% 2,497 2,522 2,528 FANNIE MAE 254720 2018 4.500% 51,330 51,523 51,153 FANNIE MAE 303259 2025 6.786% 466 479 470 FANNIE MAE 303445 2009 5.500% 372 367 372 FANNIE MAE 303970 2024 6.000% 2,421 2,390 2,475 FANNIE MAE 313042 2011 7.000% 310 310 319 FANNIE MAE 313522 2012 7.000% 808 809 836 FANNIE MAE 313561 2012 8.000% 460 464 478 FANNIE MAE 323290 2013 6.000% 86 86 88 FANNIE MAE 323748 2014 6.500% 1,516 1,490 1,571 FANNIE MAE 323833 2014 6.000% 756 750 774
F-26 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- FANNIE MAE 367005 2012 7.000% 344 342 358 FANNIE MAE 509806 2014 6.500% 601 596 624 FANNIE MAE 545249 2016 5.500% 5,324 5,339 5,406 FANNIE MAE 545303 2016 5.000% 7,040 6,954 7,055 FANNIE MAE 545492 2022 5.500% 2,323 2,300 2,338 FANNIE MAE 545679 2022 5.500% 5,507 5,372 5,543 FANNIE MAE 545786 2032 5.427% 1,718 1,724 1,759 FANNIE MAE 555724 2018 4.500% 7,497 7,462 7,376 FANNIE MAE 566074 2031 5.860% 803 800 821 FANNIE MAE 584507 2031 5.561% 932 928 945 FANNIE MAE 584829 2016 6.000% 1,329 1,320 1,362 FANNIE MAE 585743 2016 5.500% 5,045 5,063 5,123 FANNIE MAE 616220 2016 5.000% 4,863 4,784 4,874 FANNIE MAE 617270 2017 5.000% 5,257 5,200 5,268 FANNIE MAE 620293 2032 5.475% 1,844 1,835 1,902 FANNIE MAE 622462 2016 5.500% 4,168 4,123 4,233 FANNIE MAE 623866 2017 5.000% 6,209 6,190 6,222 FANNIE MAE 625943 2017 5.000% 9,157 9,131 9,179 FANNIE MAE 651629 2032 5.117% 1,235 1,232 1,240 FANNIE MAE 653342 2032 7.185% 364 365 368 FANNIE MAE 654158 2032 4.937% 1,966 1,964 1,984 FANNIE MAE 654195 2032 4.921% 3,345 3,347 3,382 FANNIE MAE 655646 2032 5.757% 1,151 1,149 1,162 FANNIE MAE 655798 2032 5.168% 3,451 3,441 3,482 FANNIE MAE 661349 2032 5.440% 918 917 923 FANNIE MAE 661501 2032 5.069% 1,416 1,415 1,427 FANNIE MAE 661744 2032 5.345% 1,826 1,828 1,839 FANNIE MAE 664521 2032 5.128% 1,660 1,661 1,680 FANNIE MAE 664750 2032 4.923% 1,281 1,279 1,286 FANNIE MAE 670731 2032 5.339% 4,365 4,381 4,436 FANNIE MAE 670779 2032 5.132% 5,217 5,241 5,269 FANNIE MAE 670890 2032 4.661% 5,326 5,328 5,351 FANNIE MAE 670912 2032 5.080% 4,463 4,472 4,500 FANNIE MAE 670947 2032 4.697% 4,366 4,369 4,389 FANNIE MAE 685479 2018 4.500% 18,182 18,276 17,889 FANNIE MAE 694852 2033 4.955% 4,461 4,538 4,405 FANNIE MAE 701161 2018 4.500% 11,056 11,118 10,879 FANNIE MAE 701269 2018 4.500% 14,091 14,166 13,865 FANNIE MAE 704592 2018 5.000% 7,341 7,550 7,359 FANNIE MAE 708635 2018 5.000% 4,960 5,102 4,972 FANNIE MAE 708646 2018 4.500% 7,435 7,451 7,316 FANNIE MAE 722779 2033 4.394% 10,351 10,371 10,109 FANNIE MAE 725558 2034 4.567% 3,182 3,152 3,143 FANNIE MAE 725694 2034 4.743% 4,880 4,783 4,853 FANNIE MAE 725719 2033 4.847% 7,332 7,302 7,332 FANNIE MAE 733525 2033 3.955% 10,621 10,196 10,317 FANNIE MAE 739194 2033 5.054% 2,925 2,933 2,939 FANNIE MAE 743256 2033 4.553% 8,292 8,177 8,205 FANNIE MAE 743856 2033 4.713% 2,369 2,372 2,355
F-27 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- FANNIE MAE 758873 2033 4.469% 5,702 5,638 5,619 FANNIE MAE 774968 2034 4.770% 3,255 3,292 3,173 FANNIE MAE 794787 2034 5.142% 7,436 7,532 7,440 FANNIE MAE 799733 2034 5.064% 4,836 4,920 4,868 FANNIE MAE 801917 2034 4.993% 8,861 8,905 8,686 FANNIE MAE 804561 2034 4.459% 5,278 5,291 5,338 FANNIE MAE 809532 2035 4.915% 6,281 6,327 6,321 FANNIE MAE 834552 2035 4.894% 7,763 7,808 7,786 FANNIE MAE FNMA_03-28 2022 5.000% 5,900 5,984 5,892 FANNIE MAE FNMA_04-3 2034 3.750% 76 76 76 FANNIE MAE FNMA_05-40 2030 5.000% 8,826 8,862 8,826 FANNIE MAE FNMA_99-8 2014 6.000% 2,703 2,687 2,754 FHAMS_04-AA7 2035 5.138% 2,840 2,877 2,830 FHAMS_05-AA2 2035 5.065% 4,644 4,734 4,568 FHAMS_05-AA3 2035 5.351% 9,587 9,680 9,546 FHAT_2004-A4 2034 5.383% 3,620 3,693 3,556 FHLMC_2382 2030 5.500% 2,820 2,798 2,837 FHLMC_2478 2021 5.250% 3,041 3,037 3,045 FHLMC_2619 2022 5.000% 14,326 14,599 14,327 FHLMC_2835 2032 4.500% 9,868 9,856 9,793 FHLMC_2872 2022 4.500% 9,378 9,385 9,312 FHLMC_2901 2033 4.500% 4,351 4,348 4,301 FHLMC_2907 2019 4.500% 5,934 5,930 5,894 FMGT_03-T5 2013 4.055% 5,210 5,210 5,180 FNMA_02-10 2042 5.000% 10 10 10 FNMA_03-18 2043 4.610% 3,927 3,924 3,908 FNMA_04-81 2020 4.350% 9,860 9,859 9,764 FNMA_04-89 2022 4.500% 8,381 8,340 8,337 FREDDIE MAC 1B0183 2031 5.209% 1,092 1,084 1,097 FREDDIE MAC 350190 2022 7.125% 83 85 83 FREDDIE MAC 405014 2019 6.830% 86 86 87 FREDDIE MAC 405092 2019 6.576% 116 115 117 FREDDIE MAC 405185 2018 6.984% 219 218 222 FREDDIE MAC 405243 2019 7.135% 98 99 99 FREDDIE MAC 405360 2019 7.238% 43 44 44 FREDDIE MAC 405437 2019 7.150% 97 96 98 FREDDIE MAC 405615 2019 6.563% 92 93 93 FREDDIE MAC 605041 2019 7.017% 22 22 22 FREDDIE MAC 605048 2018 6.853% 118 117 119 FREDDIE MAC 605432 2017 6.467% 123 123 125 FREDDIE MAC 605433 2017 6.891% 163 163 164 FREDDIE MAC 605454 2017 6.823% 387 384 390 FREDDIE MAC 606024 2019 6.742% 120 118 120 FREDDIE MAC 606025 2019 6.575% 474 474 476 FREDDIE MAC 630074 2018 6.750% 7 7 7 FREDDIE MAC 780514 2033 5.014% 10,259 10,522 10,268 FREDDIE MAC 780845 2033 4.527% 5,541 5,387 5,450 FREDDIE MAC 780903 2033 4.539% 5,500 5,449 5,436 FREDDIE MAC 781884 2034 5.149% 35,296 35,714 35,418
F-28 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- FREDDIE MAC 785363 2025 7.491% 319 321 324 FREDDIE MAC 785619 2026 7.250% 227 227 232 FREDDIE MAC 785634 2026 7.375% 87 87 89 FREDDIE MAC 788941 2031 5.506% 455 448 470 FREDDIE MAC 840031 2019 7.125% 11 11 11 FREDDIE MAC 840035 2019 6.779% 95 95 96 FREDDIE MAC 840036 2019 7.125% 46 47 47 FREDDIE MAC 840072 2019 6.961% 98 97 98 FREDDIE MAC 845154 2022 7.094% 148 154 150 FREDDIE MAC 845523 2023 7.058% 109 112 109 FREDDIE MAC 845654 2024 7.163% 401 405 410 FREDDIE MAC 845730 2023 7.239% 814 840 830 FREDDIE MAC 845733 2024 7.239% 561 571 568 FREDDIE MAC 846072 2029 7.048% 236 241 238 FREDDIE MAC 846107 2025 7.837% 128 131 130 FREDDIE MAC 865008 2018 6.107% 424 427 440 FREDDIE MAC FHLMC_2542 2022 5.500% 9,129 9,340 9,253 FREDDIE MAC FHLMC_2548 2022 5.500% 22,942 23,288 23,247 FREDDIE MAC FHLMC_2550 2022 5.500% 6,853 6,972 6,946 FREDDIE MAC FHLMC_2556 2022 5.500% 27,230 27,694 27,594 FREDDIE MAC FHLMC_2558 2022 5.500% 8,799 8,936 8,916 FREDDIE MAC FHLMC_2574 2022 5.000% 6,875 6,991 6,858 FREDDIE MAC FHLMC_2586 2023 5.500% 8,866 9,079 8,986 FREDDIE MAC FHLMC_2595 2022 5.500% 58,885 60,066 59,684 FREDDIE MAC FHLMC_2597 2022 5.500% 26,384 26,959 26,735 FREDDIE MAC FHLMC_2603 2022 5.500% 20,706 21,110 20,974 FREDDIE MAC FHLMC_2770 2032 3.750% 7,836 7,809 7,688 FREDDIE MAC FHR_2931-QA 2015 4.500% 8,573 8,603 8,555 FREDDIE MAC GOLD C90581 2022 5.500% 2,875 2,854 2,893 FREDDIE MAC GOLD C90582 2022 5.500% 1,740 1,729 1,751 FREDDIE MAC GOLD E00383 2010 7.000% 353 352 362 FREDDIE MAC GOLD E00388 2010 7.000% 205 203 210 FREDDIE MAC GOLD E00426 2011 6.500% 226 225 232 FREDDIE MAC GOLD E00484 2012 6.500% 192 189 198 FREDDIE MAC GOLD E01140 2017 6.000% 7,123 7,332 7,296 FREDDIE MAC GOLD E76761 2014 6.500% 1,015 1,002 1,048 FREDDIE MAC GOLD E77557 2014 6.500% 91 90 95 FREDDIE MAC GOLD E90153 2017 6.000% 1,406 1,455 1,440 FREDDIE MAC GOLD E90154 2017 6.000% 3,846 3,981 3,939 FREDDIE MAC GOLD E91041 2017 5.000% 6,453 6,460 6,469 FREDDIE MAC GOLD E91491 2012 5.000% 2,697 2,735 2,733 FREDDIE MAC GOLD E93341 2012 5.000% 9,517 9,716 9,646 FREDDIE MAC GOLD E95403 2018 5.000% 5,841 6,010 5,855 FREDDIE MAC GOLD E95556 2013 4.500% 3,129 3,197 3,142 FREDDIE MAC GOLD E95562 2013 4.500% 5,796 5,919 5,821 FREDDIE MAC GOLD E95671 2018 5.000% 7,456 7,661 7,474 FREDDIE MAC GOLD E96172 2013 4.500% 18,475 18,897 18,517 FREDDIE MAC GOLD G10364 2010 7.000% 232 231 236 FREDDIE MAC GOLD G10665 2012 7.000% 1,537 1,533 1,590
F-29 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- FREDDIE MAC GOLD G10949 2014 6.500% 724 716 748 FREDDIE MAC GOLD G11004 2015 7.000% 247 246 256 FREDDIE MAC GOLD G11193 2016 5.000% 4,207 4,156 4,216 FREDDIE MAC GOLD G11298 2017 5.000% 6,039 6,048 6,054 FREDDIE MAC GOLD G30227 2023 5.500% 7,305 7,572 7,344 GCCF_03-C2 2036 4.022% 6,000 6,035 5,945 GECAF_2003-1A 2015 5.415% 1,916 1,931 1,916(d) GECCMC_04-C2 2040 4.119% 12,700 12,616 12,535 GINNIE MAEII 008157 2023 6.375% 338 343 342 GINNIE MAEII 008206 2017 6.375% 166 165 169 GINNIE MAEII 008240 2017 5.625% 77 75 77 GINNIE MAEII 008251 2017 5.625% 6 6 6 GINNIE MAEII 008274 2017 6.125% 267 264 270 GINNIE MAEII 008283 2017 6.125% 33 32 33 GINNIE MAEII 008293 2017 6.125% 64 63 64 GINNIE MAEII 008341 2018 6.375% 14 14 14 GINNIE MAEII 008353 2018 6.375% 120 117 121 GINNIE MAEII 008365 2018 6.375% 142 138 144 GINNIE MAEII 008377 2018 5.625% 55 54 56 GINNIE MAEII 008428 2018 6.125% 24 24 24 GINNIE MAEII 008440 2018 6.125% 103 102 104 GINNIE MAEII 008638 2025 6.375% 335 338 339 GMACCMSI_2004-C3 2041 4.207% 8,000 8,015 7,909 GMHE_2004-AR2 2034 4.391% 5,248 5,263 5,254 GMHE_2004-AR2 2034 5.209% 7,654 7,666 7,654 GNMA_02-81 2025 3.815% 10,048 10,005 9,879 GNMA_03-17 2018 2.578% 5,126 5,112 5,040 GNMA_04-10 2031 4.043% 8,792 8,758 8,599 GNMA_04-19 2034 4.500% 7,762 7,782 7,728 GNMA_04-77 2020 4.585% 4,552 4,587 4,537 GNMA_05-02 2019 4.116% 8,209 8,209 8,130 GNMA_05-10 2021 4.031% 6,473 6,473 6,395 GNMA_2004-23 2027 3.629% 13,168 13,165 12,729 GNMA_2004-45 2021 4.020% 7,854 7,820 7,758 GNMA_2004-60 2018 4.104% 6,562 6,562 6,498 GNMA_2004-XX 2020 2.913% 6,662 6,578 6,512 GPMF_05-AR5 2045 6.863% 12,245 12,522 12,049 GSAP_05-5 2045 5.932% 8,731 8,674 8,660(d) GSMS_2004-GG2 2038 4.602% 12,215 12,264 12,194 GSR_04-10F 2019 4.500% 3,764 3,783 3,741 GSR_05-AR1 2035 4.921% 10,911 10,954 10,753 GSR_05-AR3 2035 5.017% 9,770 9,816 9,753 GSR_05-AR5 2035 5.165% 14,256 14,259 14,194 HARBORVIEW MORTGAGE LOAN TRUST 2034 4.788% 6,980 7,038 6,868 HERTZ VEHICLE FINANCING LLC HE 2009 3.230% 15,000 14,999 14,714(d) HVMLT_04-7 2034 4.584% 6,699 6,643 6,659 HVMLT_05-15 2045 6.863% 15,263 15,617 15,103 HVMLT_05-8 2035 6.363% 5,014 5,063 4,938 HVMLT_06-14 2038 5.165% 15,986 15,986 14,774
F-30 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- HVMLT_2004-10 2035 5.253% 3,295 3,324 3,274 HVMLT_2004-6 2034 4.666% 4,359 4,327 4,271 HVML_2004-4 2034 5.841% 394 391 388 INDX_05-AR1 2035 5.290% 963 969 937 INDYMAC INDX MORTGAGE LOAN TRU 2035 5.213% 8,395 8,443 8,316 JPMCCMSC_03-CIBC6 2037 4.393% 6,512 6,458 6,429 JPMCC_02-CIB5 2037 4.372% 4,818 4,843 4,795 JPMCC_04-C2 2041 4.278% 7,840 7,828 7,785 JPMCMFC_04-C1 2038 3.053% 3,514 3,480 3,446 LB-UBS COMM MORT TRUST LBUBSCM 2026 5.969% 2,002 2,002 2,007 LB-UBS COMM MORT TRUST LBUBSCM 2026 4.904% 1,924 1,924 1,921 LB-UBS COMM MORT TRUST LBUBSCM 2026 4.023% 2,643 2,644 2,622 LB-UBS COMM MORT TRUST LBUBSCM 2026 4.071% 5,149 5,170 5,098 LB-UBS COMM MORT TRUST LBUBSCM 2027 4.064% 10,000 10,009 9,918 LB-UBS COMM MORT TRUST LBUBSCM 2027 3.636% 7,933 7,936 7,873 LB-UBS COMM MORT TRUST LBUBSCM 2027 4.207% 9,680 9,685 9,605 LBUBSCMT_04-C4 2029 4.567% 10,000 10,025 9,973 LBUBSCMT_05-C5 2030 4.741% 13,631 13,661 13,588 LBUBSCMT_2004-C7 2029 3.625% 3,210 3,215 3,173 LBUBSCMT_2004-C8 2029 4.201% 18,425 18,340 18,225 LBUBS_05-C1 2030 4.310% 13,100 13,032 12,926 LIFT - LEASE INVESTMENT FLIGHT 2016 5.458% 1,964 1,964 1,512 LUMINENT MORTGAGE TRUST LUM_06 2046 5.105% 6,790 6,790 6,199 LUMINENT MORTGAGE TRUST LUM_07 2037 5.055% 9,135 9,135 8,420 MARM_05-1 2035 5.395% 6,834 6,918 6,776 MERRILL LYNCH MOR INVEST INC M 2033 4.086% 10,000 9,977 9,920 MLCC_2004-1 2034 4.725% 3,153 3,159 3,107 MLMI_05-A1 2034 4.523% 6,151 6,166 6,134 MLMI_05-A2 2035 4.488% 10,580 10,583 10,411 MORGAN STANLEY CAPITAL I MSDWC 2040 3.270% 2,926 2,930 2,868 MSC 2004-IQ8 A3 2040 4.500% 7,000 7,009 6,953 MSCI_04-HQ4 2040 4.220% 7,000 6,996 6,922 MSDWCI_02-TOP7 2039 5.380% 1,469 1,473 1,480 MSDWCI_04-T13 2045 3.940% 11,681 11,582 11,497 MSM_2004-10AR 2034 7.351% 1,539 1,550 1,515 MSM_2004-10AR 2034 5.116% 4,936 4,999 4,885 MSM_2004-6AR 2034 5.082% 5,967 5,925 5,774 NAVOT_05-A 2014 4.430% 9,000 9,000 8,917 NEW YORK CITY TAX LIEN NYCTL_0 2018 4.780% 933 933 928(d) NPF XII INC NPF12_00-2 2008 5.645% 10,000 0 0(b)(d)(e) PCMT_03-PWR1 2036 3.669% 4,095 4,010 4,018 POPLR_05-3 2035 4.437% 10,060 10,040 9,983 RALI_05-QA2 2035 5.060% 8,793 8,885 8,847 RALI_2004-QR1 2034 5.250% 4,306 4,334 4,281 RALI_2004-QS5 2034 4.750% 3,101 3,089 2,957 RAMC_05-3 2035 4.814% 10,000 9,978 9,842 RESIDENTIAL ACCREDIT LOANS INC 2037 5.055% 14,080 14,080 12,692 RESIDENTIAL ACCREDIT LOANS INC 2035 5.594% 3,339 3,371 3,289 RESTRUCTURED ASSET SECURITIES 2030 4.000% 4,757 4,739 4,684(d)
F-31 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- RFMSI_03-QS2 2033 4.500% 2,956 2,929 2,835 RFMSI_04-KS9 2034 4.620% 10,727 10,720 10,589 RFMSI_05-SA2 2035 5.146% 20,682 20,731 20,147 SASC_2003-24A 2033 5.575% 2,958 3,012 2,935 SASC_2004-18H 2034 4.750% 5,853 5,865 5,816 SBAP_05-10D 2015 4.510% 3,827 3,827 3,834 SMALL BUSINESS ADMIN 2022 4.750% 3,079 3,133 3,045 SMALL BUSINESS ADMIN 2013 3.900% 1,750 1,766 1,729 SMALL BUSINESS ADMIN 2014 3.870% 4,134 4,168 4,085 STRUCTURED ADJUSTABLE RATE MOR 2034 4.935% 8,052 8,186 7,853 TOPT_01-TZH 2013 6.522% 2,727 2,724 2,730(d) TRIAD FINANCIAL CORP 2010 4.280% 4,276 4,276 4,267 WAMU_04-AR10 2044 5.305% 3,036 3,048 2,891 WAMU_05-AR3 2035 4.636% 10,149 10,192 9,937 WAMU_2004-AR4 2034 3.797% 10,000 9,899 9,667 WASHINGTON MUTUAL WAMU_03-A11 2033 3.985% 7,500 7,483 7,434 WASHINGTON MUTUAL WAMU_03-A12 2034 3.961% 12,500 12,473 12,264 WASHINGTON MUTUAL WAMU_03-AR3 2033 3.927% 5,196 5,196 5,189 WASHINGTON MUTUAL WAMU_04-AR5- 2034 3.842% 10,000 9,861 9,802 WASHINGTON MUTUAL WAMU_04-AR7 2034 3.940% 10,000 9,876 9,885 WASHINGTON MUTUAL WAMU_04-S3 2034 5.500% 13,181 13,402 13,197 WASHINGTON MUTUAL WAMU_05-AR10 2035 4.835% 10,000 10,007 9,788 WASHINGTON MUTUAL WAMU_05-AR4 2035 4.672% 10,000 9,958 9,765 WBCMT_2004-C11 2041 3.333% 3,037 3,026 3,001 WFMBS_04-DD 2035 4.493% 5,761 5,770 5,631 WFMBS_04-P 2034 4.259% 7,809 7,646 7,208 WFMBS_05-AR10 2035 4.110% 6,519 6,482 6,463 WFMBS_05-AR2 2035 4.541% 3,799 3,813 3,747 WFMBS_05-AR2 2035 4.936% 12,036 11,943 11,844 WFMBS_05-AR4 2035 4.524% 10,075 10,048 9,875 WFMBS_2004-0 2034 4.892% 6,384 6,326 6,261 WFMBS_2004-CC 2035 4.950% 6,600 6,622 6,469 WFMBS_2004-W 2034 4.559% 20,000 20,139 19,244 TOTAL - MORTGAGE BACKED SECURITIES 2,161,955 2,159,248 2,126,114 TOTAL - MORTGAGE BACKED SECURITIES 2,161,955 2,159,248 2,126,114 MUNICIPAL BONDS New Jersey NEW JERSEY STATE TRNPK AUTH 2009 3.140% 4,000 4,000 3,954 TOTAL - NEW JERSEY 4,000 4,000 3,954 New York NEW YORK CITY GO - LT 2008 3.000% 5,000 5,000 4,969 TOTAL - NEW YORK 5,000 5,000 4,969
F-32 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- TOTAL - MUNICIPAL BONDS 9,000 9,000 8,923 CORPORATE DEBT SECURITIES Corporate - Finance ALLSTATE FINANCIAL GLOBAL FUND 2008 4.250% 5,000 4,999 5,009(d) AMERICAN GENERAL FINANCE CORPO 2008 2.750% 7,500 7,490 7,408 BANK OF AMERICA CORP 2010 7.800% 5,000 5,341 5,299 BANK OF AMERICA CORP 2009 5.875% 5,000 5,098 5,072 BANK OF NEW YORK 2009 3.625% 10,000 9,994 9,930 BANK ONE NA - CHICAGO 2008 3.700% 19,000 19,002 19,000 BANKNORTH GROUP INC 2008 3.750% 8,650 8,656 8,616 BERKSHIRE HATHAWAY FINANCE COR 2008 3.375% 17,500 17,490 17,345 CAMDEN PROPERTY TRUST 2009 4.700% 3,750 3,748 3,739 CAMDEN PROPERTY TRUST 2010 4.375% 10,000 10,008 9,752 COUNTRYWIDE FUNDING CORP 2009 4.125% 15,000 14,843 11,003 DIAGEO CAPITAL PLC 2008 3.375% 10,000 9,996 9,969 ERAC USA FINANCE COMPANY 2008 7.350% 14,658 14,876 14,783(d) ERAC USA FINANCE COMPANY 2008 5.300% 12,000 11,997 11,919(d) ERP OPERATING LP 2009 4.750% 12,500 12,493 12,446 FIFTH THIRD BANCORP 2008 3.375% 12,000 11,985 11,883 HERTZ GLOBAL HOLDINGS INC 2014 8.875% 1,645 1,655 1,668 HOUSEHOLD FINANCE CORP 2008 4.625% 12,000 12,003 11,998 HSBC BANK USA 2009 3.875% 20,000 19,955 19,813 JPMORGAN CHASE & CO 2008 4.000% 10,000 10,001 9,992 KEY BANK OF NY 2008 7.500% 9,000 9,277 9,143 LEHMAN BROTHERS HOLDINGS INC 2010 4.375% 8,500 8,468 8,397 LEHMAN BROTHERS HOLDINGS INC 2010 4.250% 5,000 4,991 4,913 M & I MARSHALL & ILSLEY BANK 2009 3.950% 21,500 21,488 21,162 MBNA CORP 2008 4.625% 5,000 4,999 4,978 MERRILL LYNCH & CO INC 2009 4.750% 10,000 9,994 9,868 MERRILL LYNCH & CO INC 2008 3.700% 7,500 7,516 7,446 MERRILL LYNCH & CO INC 2010 4.500% 2,000 2,005 1,964 MERRILL LYNCH AIG CBO 2010 6.629% 6,500 0 0(b)(d)(e) MERRILL LYNCH ELLIOTT & PAIGE 2010 6.729% 11,000 0 0(b)(d)(e) METROPOLITAN LIFE GLOBAL FUNDI 2010 4.500% 20,000 19,971 20,152(d) OLD NATIONAL BANCORP/IN 2008 3.500% 7,000 6,998 6,942 POPULAR NORTH AMERICA INC 2008 4.250% 12,500 12,498 12,460 POPULAR NORTH AMERICA INC 2008 3.875% 2,500 2,501 2,476 PRICOA GLOBAL FUNDING I 2008 4.350% 38,000 38,021 37,898(d) PRICOA GLOBAL FUNDING I 2010 4.200% 2,480 2,479 2,465(d) SUNGARD DATA 2014 4.875% 370 334 325 SUNTRUST BANK 2009 4.550% 20,000 19,994 19,970 SUNTRUST BANK 2011 6.375% 3,500 3,738 3,647 TIAA GLOBAL MARKETS 2008 3.875% 7,500 7,500 7,497(d) TRAVELERS PROPERTY CASUALTY 2008 3.750% 5,000 4,999 4,990 US BANCORP 2008 3.125% 5,000 4,994 4,979 US BANK NA 2009 3.400% 6,800 6,773 6,666 US BANK NA 2011 6.375% 21,455 22,645 22,502
F-33 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- WACHOVIA CORP 2009 3.625% 10,000 9,994 9,793 WASHINGTON MUTUAL BANK FA 2011 6.875% 1,500 1,599 1,415 WASHINGTON MUTUAL INC 2008 4.375% 12,980 12,983 12,940 WELLS FARGO & CO 2008 3.500% 5,000 5,000 4,979 WELLS FARGO BANK NA 2011 6.450% 20,250 21,507 21,424 WORLD SAVINGS BANK FSB 2009 4.125% 15,000 14,981 14,940 WORLD SAVINGS BANK FSB 2009 4.500% 30,000 30,043 29,978 TOTAL - CORPORATE - FINANCE 544,038 529,920 522,953 Corporate - Industrial ALLIED WASTE NORTH AMERICA 2011 6.375% 505 495 500 AMERISOURCEBERGEN CORP 2015 5.875% 955 951 937 BALL CORP 2012 6.875% 2,000 2,031 2,030 BEAZER HOMES USA INC 2013 6.500% 750 762 536 BOISE CASCADE LLC 2014 7.125% 500 518 484 BOYD GAMING CORP 2014 6.750% 1,000 1,001 953 BRISTOW GROUP INC 2013 6.125% 500 485 480 BRITISH SKY BROADCASTING GROUP 2009 6.875% 1,500 1,490 1,529 BURLINGTON NORTHERN AND SANTA 2012 4.255% 4,209 4,209 3,912(d) BURLINGTON NORTHERN AND SANTA 2012 4.255% 7,052 7,052 6,594(d) BURLINGTON NORTHERN SANTA FE C 2010 7.125% 5,000 5,368 5,303 CADBURY SCHWEPPES US 2008 3.875% 11,000 10,995 10,933(d) CAESARS ENTERTAINMENT INC 2013 7.000% 1,000 1,054 1,144 CALIFORNIA STEEL INDUSTRIES 2014 6.125% 1,500 1,494 1,320 CANADIAN NATIONAL RAILWAY CO 2009 4.250% 15,250 15,234 15,208 CARDINAL HEALTH INC 2008 6.250% 16,585 16,772 16,691 CASCADES INC 2013 7.250% 425 431 398 CHESAPEAKE ENERGY CORP 2013 7.500% 1,500 1,548 1,534 CHESAPEAKE ENERGY CORP 2014 7.500% 1,000 1,016 1,018 CHESAPEAKE ENERGY CORP 2015 6.375% 300 303 290 CHESAPEAKE ENERGY CORP 2017 6.500% 210 208 203 CHURCH & DWIGHT CO INC 2012 6.000% 1,750 1,754 1,711 CLOROX CO 2010 4.200% 27,660 27,660 27,342 COMCAST CORP 2011 5.500% 7,500 7,726 7,581 COTT BEVERAGES INC 2011 8.000% 1,750 1,740 1,628 CROWN AMERICAS INC 2013 7.625% 1,250 1,250 1,278 CROWN AMERICAS INC 2015 7.750% 1,145 1,172 1,179 CSC HOLDINGS INC 2012 6.750% 500 507 478 CVS CAREMARK CORP 2009 4.000% 17,500 17,532 17,171 DAIMLERCHRYSLER NA HLDG 2008 4.750% 9,000 9,004 8,998 DAIMLERCHRYSLER NA HLDG 2008 4.050% 10,000 10,014 9,947 DAVITA INC 2013 6.625% 1,000 999 995 DEL MONTE FOODS CO 2015 6.750% 1,500 1,508 1,418 DENBURY RESOURCES INC 2013 7.500% 665 677 672 DEX MEDIA WEST LLC/DEX MEDIA F 2010 8.500% 890 908 902 DIRECTV HOLDINGS LLC 2015 6.375% 1,985 1,967 1,906 DOW CHEMICAL CO/THE 2009 4.027% 22,500 22,500 22,480(d) DR HORTON INC 2009 8.000% 2,000 1,998 1,954
F-34 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- DR HORTON INC 2012 5.375% 5,825 5,806 4,979 DRS TECHNOLOGIES INC 2013 6.875% 2,335 2,359 2,323 ECHOSTAR DBS CORP 2008 5.750% 1,750 1,751 1,748 ECHOSTAR DBS CORP 2011 6.375% 1,000 1,000 988 ENCORE ACQUISITION CO 2014 6.250% 1,000 964 928 ENCORE ACQUISITION CO 2015 6.000% 160 152 144 ENERGIZER HOLDINGS INC 2008 4.900% 4,000 4,000 3,982(d) FLEXTRONICS INTERNATIONAL LTD 2013 6.500% 1,050 1,057 1,019 GARDNER DENVER INC 2013 8.000% 250 250 253 GENERAL ELECTRIC CAP CORP 2008 3.500% 7,500 7,499 7,474 GENERAL ELECTRIC CAP CORP 2008 4.250% 4,000 4,000 4,000 GENERAL MOTORS ACCEPTANCE CORP 2011 6.875% 12,500 13,003 10,694 GEORGIA GULF CORP 2013 7.125% 2,450 2,518 1,813 GIBRALTAR INDUSTRIES 2015 8.000% 250 250 225 HALLMARK CARDS INC 2008 4.220% 10,000 10,000 9,885(d) HCA INC 2012 6.300% 1,800 1,817 1,602 HJ HEINZ CO 2008 6.428% 10,000 10,096 10,181(d) HOST MARRIOTT L.P. 2013 7.125% 2,000 2,041 2,015 INDESIT COMPANY SPA 2009 5.170% 19,000 19,000 18,873(d) ING SECURITY LIFE INSTITUTIONA 2010 4.250% 23,750 23,736 24,047(d) INTERNATIONAL PAPER CO 2008 3.800% 15,000 15,006 14,948 JONES APPAREL GROUP INC 2009 4.250% 11,250 11,249 10,952 K HOVNANIAN ENTERPRISES INC 2014 6.375% 1,000 1,023 700 K HOVNANIAN ENTERPRISES INC 2015 6.250% 750 750 514 KB HOME 2014 5.750% 1,660 1,654 1,432 KB HOME 2015 5.875% 2,035 2,026 1,755 KELLOGG CO 2008 2.875% 5,000 5,000 4,959 KRAFT FOODS INC 2011 5.625% 9,250 9,499 9,439 KRAFT FOODS INC 2008 4.000% 4,000 3,996 3,981 L-3 COMMUNICATIONS HOLDINGS IN 2013 6.125% 2,750 2,750 2,702 L-3 COMMUNICATIONS HOLDINGS IN 2015 5.875% 1,000 1,000 965 LIN TV CORP 2013 6.500% 1,500 1,486 1,412 MANITOWOC CO INC/THE 2013 7.125% 1,575 1,595 1,559 MAY DEPT STORES 2009 4.800% 17,500 17,529 17,401 MERITAGE HOMES CORP 2015 6.250% 845 801 587 MERITOR AUTOMOTIVE INC 2009 6.800% 87 88 84 MGM MIRAGE 2009 6.000% 2,250 2,254 2,244 MIRANT NORTH AMERICA LLC 2013 7.375% 975 985 977 MOHEGAN TRIBAL GAMING AUTHORIT 2009 6.375% 500 502 500 MOOG INC 2015 6.250% 1,500 1,510 1,459 NALCO COMPANY 2011 7.750% 1,500 1,519 1,519 NEWFIELD EXPLORATION CO 2011 7.625% 2,500 2,544 2,594 NEWFIELD EXPLORATION CO 2014 6.625% 200 206 198 NEWS AMERICA INC 2008 6.625% 3,150 3,152 3,151 NEWS AMERICA INC 2010 4.750% 2,000 2,016 1,989 NORAMPAC INC 2013 6.750% 2,500 2,486 2,281 NORTHROP GRUMMAN CORP 2011 7.125% 5,000 5,319 5,329 NOVA CHEMICALS CORPORATION 2012 6.500% 1,800 1,851 1,687 NOVELIS INC 2015 7.250% 1,300 1,317 1,222
F-35 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- OFFICEMAX INC 2013 7.000% 1,500 1,551 1,399 OMNICARE INC 2013 6.125% 1,750 1,767 1,592 OMNICARE INC 2015 6.875% 575 582 535 PACIFIC ENERGY PARTNERS L.P. 2014 7.125% 500 506 520 PACIFIC ENERGY PARTNERS L.P. 2015 6.250% 250 251 250 PACKAGING CORP OF AMERICA 2008 4.375% 3,250 3,248 3,220 PEABODY ENERGY CORP 2013 6.875% 2,800 2,856 2,814 PEABODY ENERGY CORP 2016 5.875% 1,000 1,005 940 PRAXAIR INC 2008 2.750% 15,000 14,994 14,851 RIO TINTO FINANCE - USA LTD 2008 2.625% 12,500 12,499 12,297 ROGERS CABLE SYSTEMS 2013 6.250% 1,500 1,515 1,539 RR DONNELLEY & SONS CO 2009 3.750% 7,500 7,497 7,367 SARA LEE CORP 2008 2.750% 15,000 14,995 14,839 SHAW COMMUNICATIONS INC 2011 7.250% 1,250 1,280 1,284 SILGAN HOLDINGS INC 2013 6.750% 1,000 1,001 970 SPEEDWAY MOTORSPORTS INC 2013 6.750% 1,000 1,007 985 STANDARD-PACIFIC CORP 2008 6.500% 1,500 1,327 1,327 STANDARD-PACIFIC CORP 2010 6.500% 295 201 201 STARWOOD HOTELS AND RESORTS WO 2012 7.875% 500 533 531 STATION CASINOS INC 2012 6.000% 1,660 1,637 1,477 THOMSON CORPORATION 2009 4.250% 7,500 7,481 7,492 TRANE INC 2008 7.375% 2,000 1,999 2,001 TRANSDIGM INC 2014 7.750% 720 720 731 UNION PACIFIC CORP 2009 3.875% 6,000 5,996 5,958 UNION PACIFIC CORP 2010 3.625% 3,000 2,992 2,923 UNION PACIFIC RAILROAD COMPANY 2012 3.860% 8,910 8,910 8,769(d) UNION TANK 2008 6.500% 551 551 555 UNITED RENTALS - NORTH AMERICA 2012 6.500% 915 914 830 VAIL RESORTS INC 2014 6.750% 650 657 640 VALMONT INDUSTRIES INC 2014 6.875% 1,500 1,502 1,485 VIDEOTRON - LE GRPE LTD 2014 6.875% 1,000 1,013 979 VIN & SPIRIT AB - V&S 2008 3.570% 15,000 15,000 14,880(d) WABTEC CORP 2013 6.875% 1,360 1,374 1,340 WEYERHAEUSER CO 2008 5.950% 10,000 10,064 10,081 XTO ENERGY INC 2014 4.900% 1,000 995 983 TOTAL - CORPORATE - INDUSTRIAL 522,769 525,165 513,935 Corporate - Utility AMERITECH CAPITAL FUNDING CORP 2008 6.150% 7,000 7,008 7,002 CINCINNATI BELL INC 2013 7.250% 1,250 1,263 1,253 COMCAST CABLE COMMUNICATIONS I 2008 6.200% 15,000 15,269 15,122 CONSOLIDATED EDISON CO OF NEW 2008 6.250% 6,000 6,014 6,004 CONSUMERS ENERGY 2008 6.375% 3,500 3,507 3,502 CONSUMERS ENERGY 2008 4.250% 9,500 9,522 9,468 DEUTSCHE TELEKOM INTERNATIONAL 2010 8.000% 15,750 17,164 16,815 DEUTSCHE TELEKOM INTERNATIONAL 2008 3.875% 5,000 5,000 4,967 DTE ENERGY CO 2009 6.650% 5,000 5,146 5,118 DUKE ENERGY CORP 2008 3.750% 4,500 4,500 4,492
F-36 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- DUKE ENERGY CORP 2008 4.200% 10,000 10,014 9,937 GULF STATE UTILITIES 2009 5.524% 10,000 10,000 9,933 NISOURCE FINANCE CORPORATION 2010 7.875% 7,500 8,147 7,956 PACIFIC GAS AND ELECTRIC COMPA 2009 3.600% 17,500 17,385 17,298 PACIFICORP 2008 4.300% 6,500 6,499 6,484 PROGRESS ENERGY CAROLINAS 2009 5.950% 4,000 4,074 4,064 PUGET ENERGY INC 2008 3.363% 3,500 3,500 3,472 RELIANT ENERGY INC 2014 6.750% 1,500 1,517 1,507 SBC COMMUNICATIONS INC 2011 6.250% 7,000 7,314 7,287 SBC COMMUNICATIONS INC 2009 4.125% 5,000 4,987 4,968 SPRINT CAPITAL CORP 2011 7.625% 10,000 10,735 10,421 TELECOM ITALIA 2010 4.000% 15,000 14,892 14,692 TELUS CORP ORD 2011 8.000% 9,900 10,856 10,726 TRANS CONTINENTAL GAS PIPELINE 2011 7.000% 750 777 787 US WEST COMMUNICATIONS INC 2015 7.625% 510 514 519 VERIZON NEW YORK INC 2012 6.875% 4,000 4,240 4,244 VERIZON PENNSYLVANIA 2011 5.650% 12,250 12,564 12,626 XCEL ENERGY INC 2008 3.400% 2,500 2,491 2,479 TOTAL - CORPORATE - UTILITY 199,910 204,899 203,143 TOTAL - CORPORATE DEBT SECURITIES 1,266,717 1,259,984 1,240,031 TOTAL - BONDS AND NOTES 3,458,011 3,448,577 3,395,444 PREFERRED STOCK PREFERRED STOCK - STATED MATURITY Corporate - Industrial WHIRLPOOL CORP 2008 6.550% 9 902 902(b)(d) TOTAL - CORPORATE - INDUSTRIAL 9 902 902 Corporate - Utility AMERENCILCO 2008 5.850% 28 2,763 2,776 SAN DIEGO GAS & ELEC COMPANY 2008 7.050% 33 818 822 TOTAL - CORPORATE - UTILITY 61 3,581 3,598 TOTAL - PREFERRED STOCK - STATED MATURITY 70 4,483 4,500 PREFERRED STOCK - PERPETUAL Corporate - Finance UBS PREFERRED FUNDING TRUST IV 6.243% 20,000 19,612 19,257 TOTAL - CORPORATE - FINANCE 20,000 19,612 19,257 TOTAL - PREFERRED STOCK - PERPETUAL 20,000 19,612 19,257
F-37 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ---------- TOTAL - PREFERRED STOCK 20,070 24,095 23,757 TOTAL INVESTMENTS IN SECURITIES OF UNAFFILIATED 3,478,081 3,472,672 3,419,201 ISSUERS
NOTES: a) See Notes 1 and 3 to the financial statements regarding determination of cost and fair values. All available for sale securities are carried at fair value on the balance sheet. b) In the absence of market quotations, securities are valued by Amerprise Certificate Company at fair value c) Aggregate cost of investment in securities of unaffiliated issuers for federal income tax purposes was $3,512,312. d) Securities acquired in private negotiation which may require registration under federal securities law if they were to be publicly sold. Also see note 3b to financial statements e) Non-income producing securities F-38 AMERIPRISE CERTIFICATE COMPANY SCHEDULE 1 INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS AT DECEMBER 31, 2007
12/31/2007 PRINCIPAL AMT OF VALUE AT BONDS & NOTES COST 12/31/2007 ISSUER NAME AND ISSUER TITLE OR # OF SHARES (NOTES A & C) (NOTE A) - ---------------------------- ---------------- ------------- ----------
F-39 SCHEDULE II AMERIPRISE CERTIFICATE COMPANY INVESTMENTS IN AND ADVANCES TO AFFILIATES AND INCOME THEREON DECEMBER 31, 2007, 2006 AND 2005 ($ IN THOUSANDS)
Balance December 31, 2007 ------------------------------- Interest Dividends Principal Carrying Credited Amount or Cost Value to Income Name of Issuer and Title of Issue No. of Shares (a) (b) (c) - --------------------------------- ------------- ---- -------- --------- Wholly Owned Subsidiary (b): Real Estate Investment Company: Investors Syndicate Development Corporation: Capital Stock................................ 100 $0 $0 $0 ==== Investors Syndicate Development Corporation: Undistributed Net Income..................... $ 0 0 0 0 ==== Other Affiliates (as defined in Sec. 2(a)(3) of the Investment Company Act of 1940)................. $ 0 0 0 0 ==== --- --- --- Total affiliates................................ $0 $0 $0 === === ===
Balance December 31, 2006 ------------------------------- Interest Dividends Principal Carrying Credited Amount or Cost Value to Income Name of Issuer and Title of Issue No. of Shares (a) (b) (c) - --------------------------------- ------------- ---- -------- --------- Wholly Owned Subsidiary (b): Real Estate Investment Company: Investors Syndicate Development Corporation: Capital Stock................................ 100 $0 $0 $0 ==== Investors Syndicate Development Corporation: Undistributed Net Income..................... $ 0 0 0 0 ==== Other Affiliates (as defined in Sec. 2(a)(3) of the Investment Company Act of 1940)................. $ 0 0 0 0 ==== --- --- --- Total affiliates................................ $0 $0 $0 === === ===
Balance December 31, 2005 ----------------------------- Interest Dividends Principal Carrying Credited Amount or Cost Value to Income Name of Issuer and Title of Issue No. of Shares (a) (b) (c) - --------------------------------- ------------- ---- -------- --------- Wholly Owned Subsidiary (b): Real Estate Investment Company: Investors Syndicate Development Corporation: Capital Stock................................ 100 $0 $0 $0 ==== Other Controlled Companies: ....................... $ 0 0 0 0 ==== Other Affiliates (as defined in Sec. 2(a)(3) of the Investment Company Act of 1940)................. $ 0 0 0 0 ==== --- --- --- Total affiliates................................ $ 0 $0 $0 === === ===
NOTES: (a) The aggregate cost for federal income tax purposes was $0, $0, and $0 at December 31, 2007, 2006 and 2005, subject to possible adjustment in certain circumstances under consolidated income tax return regulations. (b) Investments in stocks of wholly owned subsidiaries are carried at cost adjusted for equity in undistributed net income since organization or acquisition of the subsidiaries. (c) There were no dividends or interest earned which were not credited to income. F-40 SCHEDULE III AMERIPRISE CERTIFICATE COMPANY MORTGAGE LOANS ON REAL ESTATE AND INTEREST EARNED ON MORTGAGES YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Mortgage loans on real estate Part 2 - Interest Part 1 - at end of period earned on mortgages -------- ---------------------------------------------- ---------------------- Amount of principal unpaid at end of period ------------------- Average Interest gross rate Subject Amount due and of interest Carrying to of accrued on mortgages Number Prior amount of delinquent mortgages at end of held at end of liens mortgages (c), interest being period of period Loan No. Description (a) Property Location loans (b) (g),(h) and (i) Total (d) foreclosed (e) (f) - -------- --------------- ------------------ -------- ----- --------------- -------- ---------- ---------- --------- ------------ First mortgages: Insured by Federal Housing Administration - liens on: Residential - under $100 0 $ 0 $ 0 $ 0 $ 0 0.00% Apartment and business - under $100 0 0 0 0 0 0.00% --- -------- -------- --- --- ---- Total 0 0 0 0 0 0.00% --- -------- -------- --- --- ---- Partially guaranteed under Serviceman's Readjustment Act of 1944, as amended - liens on: Residential - under $100 0 0 0 0 0 0.00% Apartment and business - under $100 0 0 0 0 0 0.00% --- -------- -------- --- --- ---- Total 0 0 0 0 0 0.00% --- -------- -------- --- --- ---- Other - liens on: Residential 0 0 0 0 0 0.00% --- -------- -------- --- --- ---- Apartment and business: Under $100 0 0 0 0 0 0.00% $100 to $150 0 0 0 0 0 0.00% $150 to $200 0 0 0 0 0 0.00% $200 to $250 0 0 0 0 0 0.00% $250 to $300 0 0 0 0 0 0.00% $300 to $350 0 0 0 0 0 0.00% $350 to $400 0 0 0 0 0 0.00% $400 to $450 1 411 411 0 0 5.00% $450 to $500 0 0 0 0 0 0.00% Over $500: 21-47157 Tampa, FL 1 1,733 1,733 0 0 7.65% 21-47173 Fairfield, NJ 1 3,146 3,146 0 0 7.26% 21-47195 Pharr, TX 1 1,604 1,604 0 0 5.68% 21-47196 Pharr, TX 1 3,589 3,589 0 0 5.68% 21-47197 Alamo, TX 1 822 822 0 0 5.68% 21-47205 Tucson, AZ 1 3,281 3,281 0 0 6.33% 21-47210 West Haven, CT 1 5,929 5,929 0 0 5.98% 21-47214 Plymouth, MN 1 9,252 9,252 0 0 5.48% 21-47215 Urbandale, IA 1 2,486 2,486 0 0 5.55% 21-47216 Urbandale, IA 1 1,957 1,957 0 0 5.55% 21-47223 Houston, TX 1 5,036 5,036 0 0 6.15% 21-47224 Plano, TX 1 2,207 2,207 0 0 6.00% 21-47226 Austin, TX 1 2,186 2,186 0 0 5.50% 21-47230 Houston, TX 1 1,842 1,842 0 0 5.11% 21-47232 Delavan, WI 1 699 699 0 0 7.40% 21-47233 Jefferson City, MO 1 1,550 1,550 0 0 7.15% 21-47234 Littleton, CO 1 2,671 2,671 0 0 7.18% 21-47241 Sioux Falls, SD 1 664 664 0 0 7.05% 21-47243 Chesapeake, VA 1 2,475 2,475 0 0 6.96% 21-47246 Dallas, TX 1 733 733 0 0 7.01% 21-47250 Alexandria, VA 1 2,257 2,257 0 0 6.90% 21-47255 Forest Lake, MN 1 3,190 3,190 0 0 6.83% 21-47256 Rapid City, SD 1 639 639 0 0 6.75% 21-47259 Santa Clarita, CA 1 1,590 1,590 0 0 6.95% 21-47260 Ann Arbor, MI 1 2,196 2,196 0 0 6.98% 21-47262 Fargo, ND 1 5,176 5,176 0 0 5.82% 21-47264 Orem, UT 1 1,600 1,600 0 0 6.81% 21-47266 Clarkston, MI 1 3,161 3,161 0 0 6.89% 21-47267 Charlotte, NC 1 1,060 1,060 0 0 6.91% 21-47268 Sebring, FL 1 7,990 7,990 0 0 6.65% 21-47269 Spokane, WA 1 2,572 2,572 0 0 7.15% 21-47270 Houston, TX 1 2,311 2,311 0 0 6.80% 21-47271 Wilsonville, OR 1 1,266 1,266 0 0 6.85% 21-47273 Rapid City, SD 1 530 530 0 0 6.85% 21-47277 Tucson, AZ 1 1,872 1,872 0 0 7.00% 21-47278 Kennewick, WA 1 5,507 5,507 0 0 6.75% 21-47281 Shaker Heights, OH 1 1,835 1,835 0 0 7.00% 21-47285 Fort Myers, FL 1 2,672 2,672 0 0 6.75% 21-47287 Rogers, MN 1 3,636 3,636 0 0 7.30% 21-47288 Plymouth, MN 1 1,633 1,633 0 0 6.85% 21-47289 Newport News, VA 1 1,629 1,629 0 0 6.90% 21-47293 Corvallis, OR 1 3,666 3,666 0 0 6.75% 21-47294 Hope Mills, NC 1 981 981 0 0 7.00% 21-47295 Concord, NC 1 771 771 0 0 7.00%
F-41 21-47297 Concord, OH 1 1,525 1,525 0 0 7.00% 21-47298 Rock Hill, SC 1 555 555 0 0 7.25% 21-47299 Escondido, CA 1 1,895 1,895 0 0 7.00% 21-47308 Clearwater, FL 1 5,521 5,521 0 0 5.32% 21-47318 Silverdale, WA 1 3,182 3,182 0 0 4.41% 21-47319 Pittsburgh, PA 1 2,373 2,373 0 0 5.04% 21-47320 Kirkland, WA 1 2,986 2,986 0 0 4.66% 21-47329 Omaha, NE 1 1,068 1,068 0 0 5.40% 21-47336 Burr Ridge, IL 1 3,636 3,636 0 0 5.18% 21-47338 Santa Fe, NM 1 2,606 2,606 0 0 5.42% 21-47342 Tucson, AZ 1 3,017 3,017 0 0 5.80% 21-87167 Ruskin, FL 1 4,702 4,702 0 0 5.65% 21-87168 Riverview, FL 1 2,471 2,471 0 0 5.65% 21-87187 Mebane, NC 1 3,486 3,486 0 0 5.69% 21-87245 Southport, CT 1 3,479 3,479 0 0 5.75% 21-87290 Doraville, GA 1 2,465 2,465 0 0 5.77% 21-87313 Orchard Park, NY 1 3,767 3,767 0 0 5.46% 21-87324 Falls Church, VA 1 2,250 2,250 0 0 4.79% 21-87325 Austin, TX 1 3,653 3,653 0 0 4.85% 21-87327 Marietta, GA 1 2,313 2,313 0 0 4.80% 21-87328 Charlotte, NC 1 2,989 2,989 0 0 4.99% 21-87330 Meriden, CT 1 4,300 4,300 0 0 5.39% 21-87332 Denver, CO 1 4,852 4,852 0 0 4.80% 21-87333 Broken Arrow, OK 1 1,538 1,538 0 0 5.13% 21-87335 Blue Ash, OH 1 3,325 3,325 0 0 4.95% 21-87337 Issaquah, WA 1 7,997 7,997 0 0 5.33% 21-87343 Durham, NC 1 2,210 2,210 0 0 6.30% 21-87344 Norcross, GA 1 1,968 1,968 0 0 6.22% 21-87345 Henderson, NV 1 7,017 7,017 0 0 6.25% Total Other 74 207,159 207,159 0 0 6.00% --- -------- -------- --- --- ---- Unallocated Reserve for Losses 1,336 -------- Total First Mortgage Loans on Real Estate 74 $205,823 $207,159 $ 0 $ 0 6.00% === ======== ======== === === ====
F-42 SCHEDULE III AMERIPRISE CERTIFICATE COMPANY MORTGAGE LOANS ON REAL ESTATE AND INTEREST EARNED ON MORTGAGES YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS) Part 3 - Location of mortgaged properties
Amount of principal unpaid at end of period ---------------------- Carrying Subject amount of to Amount of State in Number Prior mortgages delinquent mortgages which mortgaged of liens (c), (g), interest being property is located loans (b) (h) and (i) Total (d) foreclosed - ------------------- ------ ----- ----------- -------- ---------- ---------- Arizona AZ 3 8,169 8,169 0 0 California CA 2 3,486 3,486 0 0 Colorado CO 2 7,524 7,524 0 0 Connecticut CT 3 13,708 13,708 0 0 Florida FL 6 25,088 25,088 0 0 Georgia GA 3 6,747 6,747 0 0 Iowa IA 2 4,443 4,443 0 0 Ilinois IL 2 4,047 4,047 0 0 Michigan MI 2 5,357 5,357 0 0 Minnesota MN 4 17,711 17,711 0 0 Missouri MO 1 1,550 1,550 0 0 North Carolina NC 6 11,496 11,496 0 0 North Dakota ND 1 5,176 5,176 0 0 New England NE 1 1,068 1,068 New Jersey NJ 1 3,146 3,146 0 0 New Mexico NM 1 2,607 2,607 0 0 Nevada NV 1 7,017 7,017 New York NY 1 3,767 3,767 0 0 Ohio OH 3 6,684 6,684 0 0 Oklahoma OK 1 1,538 1,538 0 0 Oregon OR 2 4,931 4,931 0 0 Pennsylvania PA 1 2,373 2,373 0 0 South Carolina SC 1 555 555 0 0 South Dakota SD 3 1,833 1,833 0 0 Texas TX 10 23,985 23,985 0 0 Utah UT 1 1,600 1,600 0 0 Virginia VA 4 8,610 8,610 0 0 Washington WA 5 22,244 22,244 0 0 Wisconsin WI 1 699 699 0 0 --- -------- -------- --- --- Total 74 207,159 207,159 0 0 --- -------- -------- --- --- Unallocated Reserve for Losses 1,336 -------- Total 74 $205,823 $207,159 $0 $0 === ======== ======== === ===
NOTES: (a) The classification "residential" includes single dwellings only. Residential multiple dwellings are included in "apartment and business". (b) Real estate taxes and easements, which in the opinion of the Company are not undue burden on the properties, have been excluded from the determination of "prior liens". (c) In this schedule III, carrying amount of mortgage loans represents unpaid principal balances plus unamortized premiums less unamortized discounts and reserve for loss. (d) Interest in arrears for less than three months has been disregarded in computing the total amount of principal subject to delinquent interest. The amounts of mortgage loans being foreclosed are also included in amounts subject to delinquent interest. (e) Information as to interest due and accrued for the various classes within the types of mortgage loans is not readily available and the obtaining thereof would involve unreasonable effort and expense. The Company does not accrue interest on loans which are over three months delinquent. (f) Information as to interest income by type and class of loan has been omitted because it is not readily available and the obtaining thereof would involve unreasonable effort and expense. In lieu thereof, the average gross interest rates (exclusive of amortization of discounts and premiums) on mortgage loans held at December 31, 2007 are shown by type and class of loan. F-43 The average gross interest rates on mortgage loans held at December 31, 2007, 2006 and 2005 are summarized as follows:
2007 2006 2005 -------- -------- -------- First mortgages: Insured by Federal Housing Administration 0.000% 0.000% 0.000% Partially guaranteed under Servicemen's Readjustment Act of 1944, as amended 0.000 0.000 0.000 Other 6.003 0.000 6.142 ----- ----- ----- Combined average 6.003% 0.000% 6.142% ===== ===== =====
(g) Following is a reconciliation of the carrying amount of mortgage loans for the years ended December 31, 2007, 2006 and 2005.
2007 2006 2005 -------- -------- -------- Balance at beginning of period $265,526 $303,282 $325,416 New loans acquired: Nonaffiliated companies 6,636 28,576 25,768 Reserve for loss reversal 1,700 879 -------- -------- -------- Total additions 8,336 28,576 26,647 -------- -------- -------- 273,862 331,858 352,063 -------- -------- -------- Deductions during period: Collections of principal 68,039 66,332 48,781 Reserve for loss 0 0 0 -------- -------- -------- Total deductions 68,039 66,332 48,781 -------- -------- -------- Balance at end of period $205,823 $265,526 $303,282 ======== ======== ========
(h) The aggregate cost of mortgage loans for federal income tax purposes at December 31, 2007 was $207,159. (i) At December 31, 2007, an unallocated reserve for loss on first mortgage loans of $1,336 is recorded. F-44 AMERIPRISE CERTIFICATE COMPANY SCHEDULE V QUALIFIED ASSETS ON DEPOSIT DECEMBER 31, 2007 ($ IN THOUSANDS)
INVESTMENT SECURITIES -------------------- BONDS AND MORTGAGE NOTES STOCKS LOANS OTHER NAME OF DEPOSITARY (A) (B) (C) (D) TOTAL ------------------ ---------- ------- -------- ------- ---------- Deposits with states or their depositories to meet requirements of statutes and agreements: Illinois - Secretary of State of Illinois $ 52 $ 0 $ 0 $ 0 $ 52 New Jersey - Commissioner of Banking and Insurance of New Jersey 50 0 0 0 50 Pennsylvania - Treasurer of the State of Pennsylvania 151 0 0 0 151 Texas - Treasurer of the State of Texas 119 0 0 0 119 ---------- ------- -------- ------- ---------- Total deposits with states or their depositories to meet requirements of statues and agreements 372 0 0 0 372 Central depository - Ameriprise Trust Company 3,663,904 24,096 205,824 74,248 3,968,072 ---------- ------- -------- ------- ---------- Total $3,664,276 $24,096 $205,824 $74,248 $3,968,444 ========== ======= ======== ======= ==========
Notes: (a) Represents amortized cost of bonds and notes. (b) Represents average cost of individual issues of stocks. (c) Represents unpaid principal balance of mortgage loans less unamortized discounts and reserve for losses. (d) Represents cost of purchased call options and accounts payable purchased. F-45 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 1 - SUMMARY OF CHANGES YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Balance at beginning of period Additions -------------------------------- -------------------------------- Number of Charged Yield accounts Amount Charged Reserve to other to maturity with of Amount to profit payments by accounts on an annual security maturity of and loss certificate (per Description payment basis holders value reserves or income holders part 2) ----------- ---------------- -------- ---------- ---------- --------- ----------- -------- Installment certificates: Reserves to mature: Series 15, includes extended maturities 15, " " " 2.40% 0 $ 0 $ 0 $ 0 $ 0 $ 0 20, " " " 2.52% 0 0 0 0 0 0 15A, " " " 2.66% 0 0 0 0 0 0 22A, " " " 3.09% 70 1,867 1,745 37 14 5 I-76, " " " 3.35% 173 3,857 3,341 103 62 4 Reserve Plus Flex Payment 1 6 3 0 0 0 IC-Q-Installment 0 0 0 0 0 0 IC-Q-Ins 80 949 390 0 40 2 IC-Q-Ins Emp 1 6 3 0 1 0 IC-I 851 12,930 7,675 0 370 106 IC-I-Emp 9 276 817 0 392 46 Inst 9,109 0 50,812 0 14,808 910 Inst-E 50 0 319 0 76 6 RP-Q-Installment 10 106 74 0 0 1 RP-Q-Flexible Payment 2 32 13 0 0 0 RP-Q-Ins 3 24 3 0 0 0 RP-Q-Ins Emp 0 0 0 0 0 0 RP-I 4 36 32 0 2 1 RP-I-EMP 0 0 0 0 0 0 Inst-R & RP I95 285 19,352 1,500 0 437 14 Inst-R-E 7 878 21 0 5 1 ------- ---------- ---------- -------- -------- -------- Total 10,655 40,319 66,748 140 16,207 1,096 ------- ---------- ---------- -------- -------- -------- Payments made in advance of certificate year requirements and accrued interest thereon: 15, includes ext maturities 2.00% 0 0 0 0 0 0 20, " " " 2.00% 0 0 0 0 0 0 15A, " " " 3.00% 0 0 0 0 0 0 22A, " " " 3.00% 0 0 50 1 1 0 I-76, " " " 3.50% 0 0 228 8 10 0 ------- ---------- ---------- -------- -------- -------- Total 0 0 278 9 11 0 ------- ---------- ---------- -------- -------- -------- Deductions Balance at close of period -------------------------------- -------------------------------- Number Credited of Cash to other accounts Amount surrenders accounts with of Amount prior to (per security maturity of Description Maturities maturity part 2) holders value reserves ----------- ---------- ---------- -------- -------- ---------- ---------- Installment certificates: Reserves to mature: Series 15, includes extended maturities 15, " " " $ 0 $ 0 $0 0 $ 0 $ 0 20, " " " 0 0 0 0 0 0 15A, " " " 0 0 0 0 0 0 22A, " " " 309 128 670 24 756 697 I-76, " " " 538 329 49 128 2,903 2,593 Reserve Plus Flex Payment 0 0 0 1 6 3 IC-Q-Installment 0 0 0 0 0 0 IC-Q-Ins 34 183 0 55 559 214 IC-Q-Ins Emp 0 0 0 1 6 3 IC-I 5,824 1,565 0 86 1,207 764 IC-I-Emp 15 40 0 6 216 1,200 Inst 3,476 15,753 0 7,771 0 47,301 Inst-E 25 135 0 44 0 241 RP-Q-Installment 0 1 0 10 106 74 RP-Q-Flexible Payment 0 1 0 2 32 13 RP-Q-Ins 0 0 0 3 24 3 RP-Q-Ins Emp 0 0 0 0 0 0 RP-I 18 16 0 0 0 0 RP-I-EMP 0 0 0 0 0 0 Inst-R & RP I95 18 231 0 256 18,380 1,702 Inst-R-E 0 3 0 7 894 25 ------- ---------- -------- ------- ---------- ---------- Total 10,257 18,385 719 8,394 25,089 54,833 ------- ---------- -------- ------- ---------- ---------- Payments made in advance of certificate year requirements and accrued interest thereon: 15, includes ext maturities 0 0 0 0 0 0 20, " " " 0 0 0 0 0 0 15A, " " " 0 0 0 0 0 0 22A, " " " 13 2 8 0 0 30 I-76, " " " 15 3 4 0 0 225 ------- ---------- -------- ------- ---------- ---------- Total 28 5 12 0 0 255 ------- ---------- -------- ------- ---------- ----------
F-46 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 1 - SUMMARY OF CHANGES YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Balance at beginning of period Additions -------------------------------- -------------------------------- Number of Charged Yield accounts Amount Charged Reserve to other to maturity with of Amount to profit payments by accounts on an annual security maturity of and loss certificate (per Description payment basis holders value reserves or income holders part 2) ----------- ---------------- -------- ---------- ---------- --------- ----------- -------- Additional credits and accrued interest thereon: " 15, includes ext mat 2.50% 0 0 0 0 0 0 " 20, " " " 2.50% 0 0 0 0 0 0 " 15A, " " " 3.00% 0 0 0 0 0 0 " 22A, " " " 3.00% 0 0 382 8 0 7 " I-76, " " " 3.50% 0 0 745 23 0 13 " Res Plus Flex Pay 0 0 0 0 0 0 " IC-Q-Installment 0 0 0 0 0 0 " IC-Q-Ins 0 0 0 2 0 0 " IC-Q-Ins Emp 0 0 0 0 0 0 " IC-I 0 0 14 95 0 0 " IC-I-Emp 0 0 1 46 0 0 " Inst 0 0 41 906 0 0 " Inst-E 0 0 0 5 0 0 " RP-Q-Installment 0 0 0 1 0 0 " RP-Q-Flexible Pay 0 0 0 0 0 0 " RP-Q-Ins 0 0 0 0 0 0 " RP-Q-Ins Emp 0 0 0 0 0 0 " RP-I 0 0 0 0 0 0 " RP-I-EMP 0 0 0 0 0 0 " Inst-R 0 0 1 14 0 0 " Inst-R-E 0 0 0 1 0 0 ------- ---------- ---------- -------- -------- -------- Total 0 0 1,184 1,101 0 20 ------- ---------- ---------- -------- -------- -------- Deductions Balance at close of period -------------------------------- -------------------------------- Number Credited of Cash to other accounts Amount surrenders accounts with of Amount prior to (per security maturity of Description Maturities maturity part 2) holders value reserves ----------- ---------- ---------- -------- -------- ---------- ---------- Additional credits and accrued interest thereon: " 15, includes ext mat 0 0 0 0 0 0 " 20, " " " 0 0 0 0 0 0 " 15A, " " " 0 0 0 0 0 0 " 22A, " " " 72 29 154 0 0 141 " I-76, " " " 136 73 10 0 0 563 " Res Plus Flex Pay 0 0 0 0 0 0 " IC-Q-Installment 0 0 0 0 0 0 " IC-Q-Ins 0 0 2 0 0 0 " IC-Q-Ins Emp 0 0 0 0 0 0 " IC-I 0 0 108 0 0 1 " IC-I-Emp 0 0 46 0 0 1 " Inst 0 0 912 0 0 35 " Inst-E 0 0 6 0 0 0 " RP-Q-Installment 0 0 1 0 0 0 " RP-Q-Flexible Pay 0 0 0 0 0 0 " RP-Q-Ins 0 0 0 0 0 0 " RP-Q-Ins Emp 0 0 0 0 0 0 " RP-I 0 0 1 0 0 0 " RP-I-EMP 0 0 0 0 0 0 " Inst-R 0 0 14 0 0 1 " Inst-R-E 0 0 1 0 0 0 ------- ---------- -------- ------- ---------- ---------- Total 208 102 1,255 0 0 742 ------- ---------- -------- ------- ---------- ----------
F-47 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 1 - SUMMARY OF CHANGES YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Balance at beginning of period Additions -------------------------------- -------------------------------- Number of Charged Yield accounts Amount Charged Reserve to other to maturity with of Amount to profit payments by accounts on an annual security maturity of and loss certificate (per Description payment basis holders value reserves or income holders part 2) ----------- ---------------- -------- ---------- ---------- --------- ----------- -------- Res for accrued 3rd year 2113 - Installment Prod only. 0 0 870 709 (759) 0 Res for accrued 6th year 2114 0 0 0 0 0 0 Acc int - default I-76 2003/2025 3.50% 0 0 1 1 0 0 Res for add'l credits to be allowed 0 0 0 0 0 0 Installment Cert-Special Add'l 0 0 0 0 0 0 Credits I-76 (2105) 0 0 0 0 0 0 Accrued for add'l credits to 0 0 0 0 0 0 be allowed at next anni (2102) 0 0 11 17 0 0 Reserve for death & disab (2111) 0 0 0 0 0 0 Res for reconversion (2104) 0 0 0 0 0 0 ------- ---------- ---------- -------- -------- -------- Total 0 0 882 727 (759) 0 ------- ---------- ---------- -------- -------- -------- TOTAL INSTALLMENT CERTIFICATES 10,655 40,319 69,092 1,977 15,459 1,116 ------- ---------- ---------- -------- -------- -------- Fully paid certificates: Single-Payment certificates: SP 74 (C2740-10 Prod 40) 3.50% 0 0 0 0 0 0 SP 75 - 50 3.50% 0 0 0 0 0 0 SP 76 - 60 3.50% 0 0 0 0 0 0 SP 77 - 70 3.50% 0 0 0 0 0 0 SP 78 - 80 3.50% 0 0 0 0 0 0 SP 79 - 90 3.50% 21 15 15 0 0 0 SP 80 - 100 3.50% 0 0 0 0 0 0 SP 81A - 110 3.50% 24 10 10 0 0 0 SP 82A - 111 3.50% 29 22 22 0 0 0 SP 82B - 112 3.50% 0 0 0 0 0 0 SP 83A - 113 3.50% 0 0 0 0 0 0 SP 83B - 114 3.50% 0 0 0 0 0 0 IC-2-84 - 115, 116, 117, 118, 119 3.50% 44 16 16 0 0 0 IC-2-85 - 120, 121, 122, 123.124, 125, 126, 127, 128, 129, 130 3.50% 23 280 42 0 0 0 IC-2-86 - 131 3.50% 22 208 172 0 0 5 IC-2-87 - 132 3.50% 97 1,486 1,480 0 0 45 IC-2-88 - 133 3.50% 177 2,470 2,512 0 0 84 Reserve Plus Single Payment - 150 27 122 166 0 0 5 Cash Reserve Single Payment - 160 0 0 0 0 0 0 IC-Flexible Savings (Variable Term) - 165 152,441 2,083,442 2,221,981 0 302,311 81,036 IC-Flexible Savings Emp (VT) - 166 342 4,286 5,989 0 46 220 Deductions Balance at close of period -------------------------------- -------------------------------- Number Credited of Cash to other accounts Amount surrenders accounts with of Amount prior to (per security maturity of Description Maturities maturity part 2) holders value reserves ----------- ---------- ---------- -------- -------- ---------- ---------- Res for accrued 3rd year 2113 - Installment Prod only. 0 0 0 0 0 820 Res for accrued 6th year 2114 0 0 0 0 0 0 Acc int - default I-76 2003/2025 0 0 1 0 0 0 Res for add'l credits to be allowed 0 0 0 0 0 0 Installment Cert-Special Add'l 0 0 0 0 0 0 Credits I-76 (2105) 0 0 0 0 0 0 Accrued for add'l credits to 0 0 0 0 0 0 be allowed at next anni (2102) 0 0 20 0 0 9 Reserve for death & disab (2111) 0 0 0 0 0 0 Res for reconversion (2104) 0 0 0 0 0 0 ------- ---------- -------- ------- ---------- ---------- Total 0 0 21 0 0 829 ------- ---------- -------- ------- ---------- ---------- TOTAL INSTALLMENT CERTIFICATES 10,493 18,492 2,007 8,394 25,089 56,659 ------- ---------- -------- ------- ---------- ---------- Fully paid certificates: Single-Payment certificates: SP 74 (C2740-10 Prod 40) 0 0 0 0 0 0 SP 75 - 50 0 0 0 0 0 0 SP 76 - 60 0 0 0 0 0 0 SP 77 - 70 0 0 0 0 0 0 SP 78 - 80 0 0 0 0 0 0 SP 79 - 90 15 0 0 0 0 0 SP 80 - 100 0 0 0 0 0 0 SP 81A - 110 0 0 0 1 10 10 SP 82A - 111 0 0 0 2 22 22 SP 82B - 112 0 0 0 0 0 0 SP 83A - 113 0 0 0 0 0 0 SP 83B - 114 0 0 0 0 0 0 IC-2-84 - 115, 116, 117, 118, 119 0 0 0 4 16 16 IC-2-85 - 120, 121, 122, 123.124, 125, 126, 127, 128, 129, 130 19 0 0 2 134 22 IC-2-86 - 131 124 28 19 1 76 5 IC-2-87 - 132 529 517 24 33 651 455 IC-2-88 - 133 0 533 0 125 1,992 2,063 Reserve Plus Single Payment - 150 2 0 0 6 119 169 Cash Reserve Single Payment - 160 0 0 0 0 0 0 IC-Flexible Savings (Variable Term) - 165 1,937 1,011,485 0 122,888 1,444,281 1,591,905 IC-Flexible Savings Emp (VT) - 166 6 1,117 0 287 3,605 5,131
F-48 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 1 - SUMMARY OF CHANGES YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Balance at beginning of period Additions -------------------------------- -------------------------------- Number of Charged Yield accounts Amount Charged Reserve to other to maturity with of Amount to profit payments by accounts on an annual security maturity of and loss certificate (per Description payment basis holders value reserves or income holders part 2) ----------- ---------------- -------- ---------- ---------- --------- ----------- -------- IC-Preferred Investors - 250 10 12,236 12,569 0 4,039 561 IC-Investors - 201, 202,203 1 404 515 0 0 2 IC-Special Deposits U.K. - 204 1 2,856 3,118 0 0 39 IC-Special Deposits HONG KONG - 205 0 0 0 0 0 0 IC-1-84 - 170, 171,172,173,174 1 1 3 0 0 0 Cash Reserve Variable Payment - 660 0 0 0 0 0 0 Cash Reserve Variable PMT-3mo. - 662 34,639 242,740 250,952 0 140,085 6,955 IC-Future Value - 155 10 22 22 0 0 0 IC-Future Value Emp - 156 0 0 0 0 0 0 IC-Stock Market - 180 63,007 353,625 410,899 0 63,601 23,403 IC-MSC - 181 23,923 370,998 402,102 0 53,621 22,068 IC-EISC - 185 3 5 6 0 0 0 IC-AEBI Stock Market - 301, 302, 303, 304,305 4 687 733 0 0 38 ------- ---------- ---------- -------- -------- -------- Total 274,846 3,075,931 3,313,324 0 563,703 134,461 ------- ---------- ---------- -------- -------- -------- Additional credits and accrued interest thereon: SP 74 (2030/1 4022) 3.50% 0 0 0 0 0 0 SP 75 3.50% 0 0 0 0 0 0 SP 76 3.50% 0 0 0 0 0 0 SP 77 3.50% 0 0 0 0 0 0 SP 78 3.50% 0 0 0 0 0 0 SP 79 3.50% 0 0 15 0 0 0 SP 80 3.50% 0 0 0 0 0 0 SP 81A 3.50% 0 0 8 0 0 0 SP 82A 3.50% 0 0 19 0 0 0 SP 82B 3.50% 0 0 0 0 0 0 SP 83A 3.50% 0 0 0 0 0 0 SP 83B 3.50% 0 0 0 0 0 0 IC-2-84 3.50% 0 0 10 0 0 0 IC-2-85 3.50% 0 0 0 0 0 0 IC-2-86 3.50% 0 0 4 1 0 0 IC-2-87 3.50% 0 0 28 35 0 0 IC-2-88 3.50% 0 0 48 80 0 0 Reserve Plus SP 2004-4061 0 0 0 5 0 0 Cash Reserve SP 0 0 0 0 0 0 IC-Flexible Savings 0 0 4,027 85,820 0 0 IC-Preferred Investors 0 0 19 609 0 0 Deductions Balance at close of period -------------------------------- -------------------------------- Number Credited of Cash to other accounts Amount surrenders accounts with of Amount prior to (per security maturity of Description Maturities maturity part 2) holders value reserves ----------- ---------- ---------- -------- -------- ---------- ---------- IC-Preferred Investors - 250 0 5,815 0 7 11,096 11,353 IC-Investors - 201, 202,203 0 517 0 0 0 0 IC-Special Deposits U.K. - 204 0 3,157 0 0 0 0 IC-Special Deposits HONG KONG - 205 0 0 0 0 0 0 IC-1-84 - 170, 171,172,173,174 0 0 0 1 1 3 Cash Reserve Variable Payment - 660 0 0 0 0 0 0 Cash Reserve Variable PMT-3mo. - 662 253 234,314 0 28,479 155,546 163,424 IC-Future Value - 155 11 2 0 3 9 9 IC-Future Value Emp - 156 0 0 0 0 0 0 IC-Stock Market - 180 3,552 97,301 0 56,823 335,103 397,050 IC-MSC - 181 0 77,423 0 22,665 359,205 400,368 IC-EISC - 185 0 6 0 0 0 0 IC-AEBI Stock Market - 301, 302, 303, 304,305 0 771 0 0 0 0 ------- ---------- -------- ------- ---------- ---------- Total 6,448 1,432,986 43 231,327 2,311,866 2,572,005 ------- ---------- -------- ------- ---------- ---------- Additional credits and accrued interest thereon: SP 74 (2030/1 4022) 0 0 0 0 0 0 SP 75 0 0 0 0 0 0 SP 76 0 0 0 0 0 0 SP 77 0 0 0 0 0 0 SP 78 0 0 0 0 0 0 SP 79 15 0 0 0 0 0 SP 80 0 0 0 0 0 0 SP 81A 0 0 0 0 0 8 SP 82A 0 0 0 0 0 19 SP 82B 0 0 0 0 0 0 SP 83A 0 0 0 0 0 0 SP 83B 0 0 0 0 0 0 IC-2-84 0 0 0 0 0 10 IC-2-85 0 0 0 0 0 0 IC-2-86 0 0 5 0 0 0 IC-2-87 0 7 44 0 0 13 IC-2-88 0 6 82 0 0 40 Reserve Plus SP 2004-4061 0 0 5 0 0 0 Cash Reserve SP 0 0 0 0 0 0 IC-Flexible Savings 0 5,843 81,104 0 0 2,899 IC-Preferred Investors 0 54 561 0 0 13
F-49 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 1 - SUMMARY OF CHANGES YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Balance at beginning of period Additions -------------------------------- -------------------------------- Number of Charged Yield accounts Amount Charged Reserve to other to maturity with of Amount to profit payments by accounts on an annual security maturity of and loss certificate (per Description payment basis holders value reserves or income holders part 2) ----------- ---------------- -------- ---------- ---------- --------- ----------- -------- IC-FS-EMP 0 0 10 252 0 0 IC-Investors 0 0 0 2 0 0 IC-Special Deposits U.K. 0 0 10 29 0 0 IC-Special Deposits HONG KONG 0 0 0 0 0 0 IC-1-84 - 2013-4061 0 0 0 0 0 0 Cash Reserve VP 2004-4061 0 0 0 0 0 0 Cash Reserve Variable Payment-3mo. 0 0 802 7,338 (622) 0 IC-Future Value 0 0 27 1 0 0 IC-Future Value Emp 0 0 0 0 0 0 IC-Stk Mkt, 2004/16/31-4000/16 0 0 848 1,231 0 0 IC-MSC 0 0 264 2,006 0 0 IC - EISC 0 0 0 0 0 0 IC-AEBI Stk Mkt 2004/31/19-4000/16 0 0 1 0 0 0 ------- ---------- ---------- -------- -------- -------- Total 0 0 6,140 97,409 (622) 0 ------- ---------- ---------- -------- -------- -------- Accrued for additional credits to be allowed at next anniversaries: SP 74 (2102-4070) 0 0 0 0 0 0 SP 75 0 0 0 (1) 0 0 SP 76 0 0 0 0 0 0 SP 77 0 0 0 0 0 0 SP 78 0 0 0 0 0 0 SP 79 0 0 0 0 0 0 SP 80 0 0 0 0 0 0 SP 81A 0 0 0 0 0 0 SP 82A 0 0 0 0 0 0 SP 82B 0 0 0 0 0 0 SP 83A 0 0 0 0 0 0 SP 83B 0 0 0 0 0 0 IC-2-84 - 2019-4061 0 0 0 0 0 0 IC-2-85 0 0 0 0 0 0 IC-2-86 0 0 0 0 0 0 IC-2-87 0 0 0 1 0 0 IC-2-88 0 0 1 2 0 0 Deductions Balance at close of period -------------------------------- -------------------------------- Number Credited of Cash to other accounts Amount surrenders accounts with of Amount prior to (per security maturity of Description Maturities maturity part 2) holders value reserves ----------- ---------- ---------- -------- -------- ---------- ---------- IC-FS-EMP 0 34 220 0 0 9 IC-Investors 0 0 2 0 0 0 IC-Special Deposits U.K. 0 0 39 0 0 0 IC-Special Deposits HONG KONG 0 0 0 0 0 0 IC-1-84 - 2013-4061 0 0 0 0 0 0 Cash Reserve VP 2004-4061 0 0 0 0 0 0 Cash Reserve Variable Payment-3mo. 0 56 6,957 0 0 506 IC-Future Value 15 2 0 0 0 11 IC-Future Value Emp 0 0 0 0 0 0 IC-Stk Mkt, 2004/16/31-4000/16 0 99 1,182 0 0 798 IC-MSC 0 10 2,018 0 0 241 IC - EISC 0 0 0 0 0 0 IC-AEBI Stk Mkt 2004/31/19-4000/16 0 0 1 0 0 0 ------- ---------- -------- ------- ---------- ---------- Total 30 6,111 92,220 0 0 4,567 ------- ---------- -------- ------- ---------- ---------- Accrued for additional credits to be allowed at next anniversaries: SP 74 (2102-4070) 0 0 0 0 0 0 SP 75 0 0 0 0 0 (1) SP 76 0 0 0 0 0 0 SP 77 0 0 0 0 0 0 SP 78 0 0 0 0 0 0 SP 79 0 0 0 0 0 0 SP 80 0 0 0 0 0 0 SP 81A 0 0 0 0 0 0 SP 82A 0 0 0 0 0 0 SP 82B 0 0 0 0 0 0 SP 83A 0 0 0 0 0 0 SP 83B 0 0 0 0 0 0 IC-2-84 - 2019-4061 0 0 0 0 0 0 IC-2-85 0 0 0 0 0 0 IC-2-86 0 0 0 0 0 0 IC-2-87 0 0 1 0 0 0 IC-2-88 0 0 2 0 0 1
F-50 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 1 - SUMMARY OF CHANGES YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Balance at beginning of period Additions -------------------------------- -------------------------------- Number of Charged Yield accounts Amount Charged Reserve to other to maturity with of Amount to profit payments by accounts on an annual security maturity of and loss certificate (per Description payment basis holders value reserves or income holders part 2) ----------- ---------------- -------- ---------- ---------- --------- ----------- -------- IC-Stock Mkt - 2019/31-4061 SEC 5 from C2785-81 0 0 0 0 0 0 IC-Market Strategy Certificate (SEC 5 from c2785-81) 0 0 19,449 7,258 0 0 IC-EISC 0 0 18,132 6,527 0 0 IC-AEBI Stock Market 0 0 0 0 0 0 0 0 0 0 0 0 0 0 37 0 0 0 ------- ---------- ---------- -------- -------- -------- Total 0 0 37,619 13,787 0 0 ------- ---------- ---------- -------- -------- -------- TOTAL SINGLE PAYMENT - NON QUALIFIED 274,846 3,075,931 3,357,083 111,196 563,081 134,461 ------- ---------- ---------- -------- -------- -------- R Series Single-Payment certificates: R-76 - 900 3.50% 2 8 8 0 0 0 R-77 - 910 3.50% 15 216 205 0 0 1 R-78 - 911 3.50% 21 131 140 0 0 5 R-79 - 912 3.50% 37 227 219 0 0 8 R-80 - 913 3.50% 26 153 148 0 0 5 R-81 - 914 3.50% 11 72 62 0 0 2 R-82A - 915 3.50% 73 476 376 0 0 11 RP-Q - 916 112 166 455 0 0 14 R-II - 920 3.50% 43 332 198 0 0 7 RP-2-84 - 921, 922, 923, 924, 925 3.50% 12 166 15 0 0 0 RP-2-85 - 926, 927, 928, 929, 930, 931, 932, 933, 934, 935, 936 3.50% 0 0 (0) 0 0 0 RP-2-86 - 937 3.50% 7 21 25 0 0 1 RP-2-87 - 938 3.50% 31 235 210 0 0 7 RP-2-88 - 939 3.50% 28 128 142 0 0 5 Cash Reserve RP - 970 0 0 0 0 0 0 RP-Flexible Savings - 971 48,151 881,150 931,850 1 160,405 37,458 RP-Preferred Investors - 950 1 441 541 0 0 27 Cash Reserve RP-3 mo. - 972 4,817 43,612 44,663 0 37,223 1,315 RP-Flexible Savings Emp - 973 146 1,644 2,335 0 8 91 RP-Future Value - 975 7 176 176 2 0 0 RP-Future Value Emp - 976 2 59 59 0 0 0 RP-Stock Market - 960 11,885 120,651 134,589 (1) 26,338 7,920 Market Strategy Cert - 961 (section 1-6 from Report 2785-81-RP-STOCK-VB 2001) 4,004 101,409 109,083 0 18,054 6,026 D-1 - sum of SERIES D on Summary page - 400 + 990-993 71 5,421 6,840 0 75 278 ------- ---------- ---------- -------- -------- -------- Total 69,502 1,156,894 1,232,339 2 242,103 53,181 ------- ---------- ---------- -------- -------- -------- Deductions Balance at close of period -------------------------------- -------------------------------- Number Credited of Cash to other accounts Amount surrenders accounts with of Amount prior to (per security maturity of Description Maturities maturity part 2) holders value reserves ----------- ---------- ---------- -------- -------- ---------- ---------- IC-Stock Mkt - 2019/31-4061 SEC 5 from C2785-81 0 0 0 0 0 0 IC-Market Strategy Certificate (SEC 5 from c2785-81) 0 563 22,250 0 0 3,895 IC-EISC 0 663 20,073 0 0 3,922 IC-AEBI Stock Market 0 0 0 0 0 0 0 0 0 0 0 0 0 0 37 0 0 0 ------- ---------- -------- ------- ---------- ---------- Total 0 1,226 42,363 0 0 7,817 ------- ---------- -------- ------- ---------- ---------- TOTAL SINGLE PAYMENT - NON QUALIFIED 6,478 1,440,323 134,626 231,327 2,311,866 2,584,389 ------- ---------- -------- ------- ---------- ---------- R Series Single-Payment certificates: R-76 - 900 0 6 0 1 2 2 R-77 - 910 0 166 0 9 83 40 R-78 - 911 0 9 0 20 123 136 R-79 - 912 0 48 0 31 167 179 R-80 - 913 0 17 0 21 136 136 R-81 - 914 0 1 0 10 71 63 R-82A - 915 0 162 0 56 281 225 RP-Q - 916 0 55 0 100 147 414 R-II - 920 0 42 0 36 266 163 RP-2-84 - 921, 922, 923, 924, 925 0 0 0 3 166 15 RP-2-85 - 926, 927, 928, 929, 930, 931, 932, 933, 934, 935, 936 0 0 0 0 0 0 RP-2-86 - 937 21 0 5 0 4 0 RP-2-87 - 938 117 7 3 19 141 90 RP-2-88 - 939 0 30 0 22 102 117 Cash Reserve RP - 970 0 0 0 0 0 0 RP-Flexible Savings - 971 366 371,358 0 41,419 697,284 757,989 RP-Preferred Investors - 950 0 0 0 1 441 568 Cash Reserve RP-3 mo. - 972 14 53,266 0 3,965 28,669 29,921 RP-Flexible Savings Emp - 973 11 502 0 120 1,266 1,920 RP-Future Value - 975 149 29 0 0 0 0 RP-Future Value Emp - 976 59 0 0 0 0 0 RP-Stock Market - 960 362 33,336 0 11,227 118,957 135,148 Market Strategy Cert - 961 (section 1-6 from Report 2785-81-RP-STOCK-VB 2001) 0 18,492 0 3,937 103,928 114,671 D-1 - sum of SERIES D on Summary page - 400 + 990-993 0 812 0 65 5,020 6,381 ------- ---------- -------- ------- ---------- ---------- Total 1,099 478,338 8 61,062 957,254 1,048,178 ------- ---------- -------- ------- ---------- ----------
F-51 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 1 - SUMMARY OF CHANGES YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Balance at beginning of period Additions -------------------------------- -------------------------------- Number of Charged Yield accounts Amount Charged Reserve to other to maturity with of Amount to profit payments by accounts on an annual security maturity of and loss certificate (per Description payment basis holders value reserves or income holders part 2) ----------- ---------------- -------- ---------- ---------- --------- ----------- -------- Additional Interest on R-Series Single Payment Reserves: R-76 3.50% 0 0 0 0 0 0 R-77 3.50% 0 0 1 5 0 0 R-78 3.50% 0 0 3 5 0 0 R-79 3.50% 0 0 5 7 0 0 R-80 3.50% 0 0 4 5 0 0 R-81 3.50% 0 0 1 2 0 0 R-82A 3.50% 0 0 11 10 0 0 RP-Q 0 0 0 14 0 0 R-II 3.50% 0 0 4 7 0 0 RP-2-84 3.50% 0 0 0 0 0 0 RP-2-85 3.50% 0 0 0 0 0 0 RP-2-86 3.50% 0 0 1 0 0 0 RP-2-87 3.50% 0 0 4 6 0 0 RP-2-88 3.50% 0 0 2 5 0 0 Cash Reserve RP 0 0 0 0 0 0 RP-Flexible Savings 0 0 1,698 38,582 0 0 RP-Preferred Investors 0 0 1 27 0 0 Cash Reserve RP-3 mo. Plus 0 0 137 1,406 (120) 0 RP-Flexible Savings Emp 0 0 4 95 0 0 RP-Future Value 0 0 238 4 0 0 RP-Future Value Emp 0 0 53 2 0 0 RP-Stock Market 0 0 243 351 0 0 Market Strategy Cert (2785-81 RP-STOCK VB 2004/4000 & 2016/2031/4016) 0 0 76 560 0 0 D-1 - 400 1 318 0 0 ------- ---------- ---------- -------- -------- -------- Total 0 0 2,487 41,411 (120) 0 ------- ---------- ---------- -------- -------- -------- Deductions Balance at close of period -------------------------------- -------------------------------- Number Credited of Cash to other accounts Amount surrenders accounts with of Amount prior to (per security maturity of Description Maturities maturity part 2) holders value reserves ----------- ---------- ---------- -------- -------- ---------- ---------- Additional Interest on R-Series Single Payment Reserves: R-76 0 0 0 0 0 0 R-77 0 4 1 0 0 1 R-78 0 0 5 0 0 3 R-79 0 1 8 0 0 4 R-80 0 0 5 0 0 4 R-81 0 0 2 0 0 1 R-82A 0 3 11 0 0 7 RP-Q 0 0 14 0 0 0 R-II 0 0 7 0 0 4 RP-2-84 0 0 0 0 0 0 RP-2-85 0 0 0 0 0 0 RP-2-86 0 0 1 0 0 0 RP-2-87 0 0 7 0 0 3 RP-2-88 0 0 5 0 0 2 Cash Reserve RP 0 0 0 0 0 0 RP-Flexible Savings 0 1,441 37,458 0 0 1,382 RP-Preferred Investors 0 0 27 0 0 1 Cash Reserve RP-3 mo. Plus 0 11 1,315 0 0 96 RP-Flexible Savings Emp 0 5 91 0 0 4 RP-Future Value 221 21 0 0 0 0 RP-Future Value Emp 55 0 0 0 0 0 RP-Stock Market 0 26 337 0 0 232 Market Strategy Cert (2785-81 RP-STOCK VB 2004/4000 & 2016/2031/4016) 0 1 562 0 0 73 D-1 - 400 0 41 278 21 82 0 ------- ---------- -------- ------- ---------- ---------- Total 276 1,554 40,134 21 82 1,817 ------- ---------- -------- ------- ---------- ----------
F-52 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 1 - SUMMARY OF CHANGES YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Balance at beginning of period Additions -------------------------------- -------------------------------- Number of Charged Yield accounts Amount Charged Reserve to other to maturity with of Amount to profit payments by accounts on an annual security maturity of and loss certificate (per Description payment basis holders value reserves or income holders part 2) ----------- ---------------- -------- ---------- ---------- --------- ----------- -------- Accrued for additional credits to be allowed at next anniversaries: RP-Stock Market 0 6,629 2,388 0 0 Market Strategy Cert (C2785-81 2019/2102/4061) 0 0 4,941 1,786 0 0 ------- ---------- ---------- -------- -------- -------- Total 0 0 11,570 4,174 0 0 ------- ---------- ---------- -------- -------- -------- TOTAL SINGLE PAYMENT - QUALIFIED 69,502 1,156,894 1,246,396 45,586 241,983 53,181 ------- ---------- ---------- -------- -------- -------- Paid-up certificates: Series 15 and 20 3.25% 0 0 0 0 0 0 " 15A and 22A 3.50% 0 0 1,070 29 0 60 " I-76 - 640 3.50% 0 0 2,159 64 0 35 ------- ---------- ---------- -------- -------- -------- Total 0 0 3,229 93 0 95 ------- ---------- ---------- -------- -------- -------- Additional credits and accrued interest thereon: Series 15 and 20 2.50% 0 0 0 0 0 0 " 15A and 22A 3.00% 0 0 16 0 0 0 " I-76 3.50% 0 0 169 5 0 0 ------- ---------- ---------- -------- -------- -------- Total 0 0 185 5 0 0 ------- ---------- ---------- -------- -------- -------- Accrued for additional credits to be allowed at next anniversaries 0 0 0 0 0 0 ------- ---------- ---------- -------- -------- -------- Total paid-up 0 0 3,414 98 0 95 ------- ---------- ---------- -------- -------- -------- Deductions Balance at close of period -------------------------------- -------------------------------- Number Credited of Cash to other accounts Amount surrenders accounts with of Amount prior to (per security maturity of Description Maturities maturity part 2) holders value reserves ----------- ---------- ---------- -------- -------- ---------- ---------- Accrued for additional credits to be allowed at next anniversaries: RP-Stock Market 0 139 7,583 0 1,295 Market Strategy Cert (C2785-81 2019/2102/4061) 0 207 5,464 0 0 1,057 ------- ---------- -------- ------- ---------- ---------- Total 0 345 13,047 0 0 2,352 ------- ---------- -------- ------- ---------- ---------- TOTAL SINGLE PAYMENT - QUALIFIED 1,375 480,237 53,189 61,083 957,336 1,052,347 ------- ---------- -------- ------- ---------- ---------- Paid-up certificates: Series 15 and 20 0 0 0 0 0 0 " 15A and 22A 141 193 345 0 0 480 " I-76 - 640 267 410 0 0 0 1,582 ------- ---------- -------- ------- ---------- ---------- Total 408 603 345 0 0 2,062 ------- ---------- -------- ------- ---------- ---------- Additional credits and accrued interest thereon: Series 15 and 20 0 0 0 0 0 0 " 15A and 22A 4 1 6 26 491 5 " I-76 25 7 0 324 1,733 143 ------- ---------- -------- ------- ---------- ---------- Total 29 8 6 350 2,224 148 ------- ---------- -------- ------- ---------- ---------- Accrued for additional credits to be allowed at next anniversaries 0 0 0 0 0 0 ------- ---------- -------- ------- ---------- ---------- Total paid-up 437 611 351 350 2,224 2,210 ------- ---------- -------- ------- ---------- ----------
F-53 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 1 - SUMMARY OF CHANGES YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Balance at beginning of period Additions -------------------------------- -------------------------------- Number of Charged Yield accounts Amount Charged Reserve to other to maturity with of Amount to profit payments by accounts on an annual security maturity of and loss certificate (per Description payment basis holders value reserves or income holders part 2) ----------- ---------------- -------- ---------- ---------- --------- ----------- -------- Optional settlement certificates: Series IST&G 3.00% 0 0 0 0 0 0 Other series and conversions from Single Source 2740-10: Options 0 0 0 0 0 0 Payment certificates 2.50%-3.00%-3.5% 0 0 0 0 0 0 Series R-76 thru R-82A - Prod 900 3.00% 0 0 56,896 1,678 0 1,318 Series R-II & RP-2-84 thru 88 - Prod 921 3.50 0 0 6 0 0 0 Reserve Plus Single-Payment (Prod 150) 0 0 54 2 0 8 Reserve Plus Flex-Pay & IC-Q-Inst (Prod 650, 651, 652) 0 0 97 3 0 0 Series R-Installment (Prod 980, 981,982) 0 0 44 0 0 0 Series R-Single-Payment (Prod 133) 25 161 49 0 0 0 Add'l credits and accrued int. thereon 2.50%-3.00% 0 0 5,317 146 0 37 Add'l credits and accrued int. thereon-IST&G 2.50%-3.00% 0 0 0 0 0 0 Accrued for additional credits to be allowed 0 0 4 124 0 0 at next anniversaries 0 0 0 0 0 0 Accrued for additional credits to be allowed 0 0 0 0 0 0 at next anniversaries-R-76-R-82A & R-II 0 0 0 0 0 0 Accrued for additional credits to be allowed 0 0 0 0 0 0 at next anniversaries-IST&G ------- ---------- ---------- -------- -------- -------- Total optional settlement 25 161 62,467 1,953 0 1,363 ------- ---------- ---------- -------- -------- -------- Due to unlocated cert holders 0 0 30 0 0 50 ------- ---------- ---------- -------- -------- -------- Total certificate reserves 355,028 $4,273,305 $4,738,483 $160,811 $820,523 $190,266 ------- ---------- ---------- -------- -------- -------- Deductions Balance at close of period -------------------------------- -------------------------------- Number Credited of Cash to other accounts Amount surrenders accounts with of Amount prior to (per security maturity of Description Maturities maturity part 2) holders value reserves ----------- ---------- ---------- -------- -------- ---------- ---------- Optional settlement certificates: Series IST&G 0 0 0 0 0 0 Other series and conversions from Single 0 0 0 0 0 0 Payment certificates 0 0 0 0 0 0 Series R-76 thru R-82A - Prod 900 2,501 4,708 0 0 0 52,683 Series R-II & RP-2-84 thru 88 - Prod 921 3 0 0 0 0 3 Reserve Plus Single-Payment (Prod 150) 4 0 0 0 0 60 Reserve Plus Flex-Pay & IC-Q-Inst (Prod 650, 651, 652) 3 7 0 0 0 89 Series R-Installment (Prod 980, 981,982) 0 9 0 0 0 35 Series R-Single-Payment (Prod 133) 4 3 0 0 0 43 Add'l credits and accrued int. thereon 262 469 132 0 0 4,636 Add'l credits and accrued int. thereon-IST&G 0 0 0 0 0 0 Accrued for additional credits to be allowed 0 0 39 0 0 89 at next anniversaries 0 0 0 0 0 0 Accrued for additional credits to be allowed 0 0 0 0 0 0 at next anniversaries-R-76-R-82A & R-II 0 0 0 0 0 0 Accrued for additional credits to be allowed 0 0 0 0 0 0 at next anniversaries-IST&G ------- ---------- -------- ------- ---------- ---------- Total optional settlement 2,777 5,196 171 0 0 57,638 ------- ---------- -------- ------- ---------- ---------- Due to unlocated cert holders 0 1 12 0 0 67 ------- ---------- -------- ------- ---------- ---------- Total certificate reserves $21,560 $1,944,860 $190,356 301,154 $3,296,515 $3,753,310 ------- ---------- -------- ------- ---------- ----------
F-54 CERTIFICATE RESERVES PART 2 - DESCRIPTIONS OF ADDITIONS TO RESERVES CHARGED TO OTHER ACCOUNTS AND DEDUCTIONS FROM RESERVES CREDITED TO OTHER ACCOUNTS DECEMBER 31, 2007 ($ IN THOUSANDS) Additional credits on installment certificates and accrued interest thereon: Other additions represent: Transfers from accruals for additional credits to be allowed at next anniversaries $ 20 Reconversions of paid-up certificates-charged to paid-up reserves 9 Transfers from maturities to extended maturities, additional credits/interest and advance payments 1,087 ------- $ 1,116 ======= Other deductions represent: Transfers to reserves on a quarterly basis for Reserve Plus Flexible- Payment, IC-Q-Installment and R-Flexible-Payment $ 1,088 Conversions to optional settlement certificates-credited to optional settlement reserves 788 Conversions to paid-up certificates-credited to paid-up reserves 98 Transfers to extended maturities at maturity 0 ------- $ 1,974 ======= Accrual for additional credits to be allowed on installment certificates at next anniversaries: Other deductions represent: Transfers to reserves for additional credits on installment certificates $ 13 ======= Reserve for death and disability refund options: Other deductions represent: Payments, in excess of installment reserves, made to certificate holders who exercised the death and disability refund options. $ 0 ======= Reserve for reconversions of paid-up certificates: The amount shown as charged to profit and loss has been deducted from reserve recoveries in the accompanying Statement of Operations $ 0 ======= Other deductions represent: Amounts credited to installment certificate reserves to mature, on reconversions of paid-up certificates. $ 9 ======= Paid-up certificates: Other additions represent: Conversions from installment certificates (charged to installment reserves less surrender charges) $ 96 Transfers from accrual for additional credits to be allowed at next anniversaries 0 ------- $ 96 ======= Other deductions represent: Transfers credited to installment reserves on reconversions to installment certificates $ 0 Transfers for accrual for additional credits and accrued interest thereon 0 Transfers to settlement options 351 ------- $ 351 =======
F-55 CERTIFICATE RESERVES PART 2 - DESCRIPTIONS OF ADDITIONS TO RESERVES CHARGED TO OTHER ACCOUNTS AND DEDUCTIONS FROM RESERVES CREDITED TO OTHER ACCOUNTS DECEMBER 31, 2007 ($ IN THOUSANDS) Default interest on installment certificates: Other additions represent: Reconversions of paid-up certificates charged to paid-up reserves $ 0 ======== Other deductions represent: Conversions to paid-up certificates - credited to paid-up reserves $ 0 Transfers to advance payments as late payments are credited to certificates 1 -------- $ 1 ======== Optional settlement certificates: Other additions represent: Transfers from installment certificate reserves (less surrender charges), single-payment and Series D certificate reserves upon election of optional settlement privileges $ 975 Transfers from paid-up certificate reserves 351 Transfers from accruals for additional credits to be allowed at next anniversaries 37 -------- $ 1,363 ======== Other deductions represent: Transfers to reserve for additional credits and accrued interest thereon $ 39 Transfers to optional settlement reserves 132 -------- $ 171 ======== Single-Payment certificates: Other additions represent: Transfers from accruals for additional credits to be allowed at next anniversaries $ 0 Transfers from accruals on a quarterly basis on: 0 Reserve Plus Single-Payment 0 Cash Reserve Single-Payment 0 Flexible Savings 81,035 Flexible Savings-Emp 220 Preferred Investors 561 Investors 2 Special Deposits 39 Cash Reserve 0 Cash Reserve-3mo 6,955 Future Value 0 Stock Market 23,403 Market Strategy 22,068 AEBI Stock Market 38 Equity Index Stock Certificate 0 RP-Q 14 Cash Reserve-RP 0 Cash Reserve-RP-3mo 1,315 Flexible Saving-RP 37,458 Flexible Savings-RP-Emp 91 Preferred Investors-RP 27 Stock Market-RP 7,920 Market Strategy-RP 6,026 Transfers from accruals at anniversaries maintained in a separate reserve account. 469 -------- $187,641 ========
F-56 CERTIFICATE RESERVES PART 2 - DESCRIPTIONS OF ADDITIONS TO RESERVES CHARGED TO OTHER ACCOUNTS AND DEDUCTIONS FROM RESERVES CREDITED TO OTHER ACCOUNTS DECEMBER 31, 2007 ($ IN THOUSANDS) Single-Payment certificates continued: Other deductions represent: Transfers to optional settlement reserves: Single-Payment $ 50,765 R Single-Payment 8 Transfers to reserves for additional credits and accrued interest thereon (469) Transfers to a separate reserve account from the accrual account 0 Transfers to reserves on a quarterly basis: Reserve Plus Single-Payment 5 Cash Reserve Single-Payment 0 Flexible Savings 81,173 Flexible Savings-Emp 0 Preferred Investors 561 Investors 2 Special Deposits 39 Cash Reserve 0 Cash Reserve-3mo 6,963 Stock Market 29 AEBI Stock Market 2,018 RP-Q 14 Cash Reserve-RP 0 Cash Reserve-RP-3mo 1,315 Flexible Saving-RP 37,458 Flexible Savings-RP-Emp 91 Preferred Investors-RP 27 Stock Market-RP 7,920 Transfers to Federal tax withholding (104) --------- $ 187,815 ========= Due to unlocated certificate holders: Other additions represent: Amounts equivalent to payments due certificate holders who could not be located $ 50 ========= Other deductions represent: Payments to certificate holders credited to cash $ 12 =========
F-57 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 3 - INFORMATION REGARDING INSTALLMENT CERTIFICATES CLASSIFIED BY AGE GROUPINGS YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Deductions from Reserves ------------------------ Number of Accounts Amount of Cash with Certificate Maturity Amount of Surrenders Holders Value Reserves Prior to December 31, December 31, December 31, Maturity Other Months ------------------ ----------------- ----------------- ---------- ----- Certificate Series Paid 2006 2007 2006 2007 2006 2007 2007 2007 - ------------------ ------- ------ ----- ------- ------- ------- ------- ---------- ----- 15 INC EXT 61-72 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 121-132 0 0 0 0 0 0 0 0 133-144 0 0 0 0 0 0 0 0 145-156 0 0 0 0 0 0 0 0 157-168 0 0 0 0 0 0 0 0 169-180 0 0 0 0 0 0 0 0 181-192 0 0 0 0 0 0 0 0 193-204 0 0 0 0 0 0 0 0 205-216 0 0 0 0 0 0 0 0 217-228 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- 20, including extended maturities 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 121-132 0 0 0 0 0 0 0 0 133-144 0 0 0 0 0 0 0 0 145-156 0 0 0 0 0 0 0 0 157-168 0 0 0 0 0 0 0 0 169-180 0 0 0 0 0 0 0 0 181-192 0 0 0 0 0 0 0 0 193-204 0 0 0 0 0 0 0 0 205-216 0 0 0 0 0 0 0 0 217-228 0 0 0 0 0 0 0 0 229-240 0 0 0 0 0 0 0 0 241-252 0 0 0 0 0 0 0 0 253-264 0 0 0 0 0 0 0 0 265-276 0 0 0 0 0 0 0 0 277-288 0 0 0 0 0 0 0 0 289-300 0 0 0 0 0 0 0 0 301-312 0 0 0 0 0 0 0 0 313-324 0 0 0 0 0 0 0 0 325-336 0 0 0 0 0 0 0 0 337-348 0 0 0 0 0 0 0 0 349-360 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- 15 A INC EXT 61-72 0 0 0 0 0 0 0 0 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 121-132 0 0 0 0 0 0 0 0 133-144 0 0 0 0 0 0 0 0 145-156 0 0 0 0 0 0 0 0 157-168 0 0 0 0 0 0 0 0 169-180 0 0 0 0 0 0 0 0 181-192 0 0 0 0 0 0 0 0 193-204 0 0 0 0 0 0 0 0 205-216 0 0 0 0 0 0 0 0 217-228 0 0 0 0 0 0 0 0 229-240 0 0 0 0 0 0 0 0 241-252 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- ACC Maturity Value & Count TOTAL 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- 22A INC EXT 25-36 0 0 0 0 0 0 0 0 37-48 0 0 0 0 0 0 0 0 49-60 0 0 0 0 0 0 0 0 61-72 0 0 0 0 0 0 0 0 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 121-132 0 0 0 0 0 0 0 0
F-58 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 3 - INFORMATION REGARDING INSTALLMENT CERTIFICATES CLASSIFIED BY AGE GROUPINGS YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Deductions from Reserves ------------------------ Number of Accounts Amount of Cash with Certificate Maturity Amount of Surrenders Holders Value Reserves Prior to December 31, December 31, December 31, Maturity Other Months ------------------ ----------------- ----------------- ---------- ----- Certificate Series Paid 2006 2007 2006 2007 2006 2007 2007 2007 - ------------------ ------- ------ ----- ------- ------- ------- ------- ---------- ----- 133-144 0 0 0 0 0 0 0 0 145-156 0 0 0 0 0 0 0 0 157-168 1 1 19 19 9 10 0 0 169-180 0 0 0 0 0 0 0 0 181-192 0 0 0 0 0 0 0 0 193-204 0 0 0 0 0 0 0 0 205-216 0 0 0 0 0 0 0 0 217-228 1 0 15 0 12 0 0 0 229-240 1 2 19 34 15 29 0 0 241-252 0 0 0 0 0 0 0 0 253-264 1 1 15 15 14 15 0 0 265-276 0 0 0 0 0 0 0 0 277-288 0 0 0 0 0 0 0 0 289-300 0 0 0 0 0 0 0 0 301-312 1 0 16 0 12 0 0 0 313-324 0 1 0 16 0 12 0 0 325-336 1 0 19 0 16 0 0 0 337-348 4 1 374 19 320 17 0 0 349-360 0 4 0 374 0 336 0 0 361-372 14 0 357 0 338 0 0 50 373-384 46 14 1033 279 1009 278 128 620 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 70 24 1867 756 1745 697 128 670 ------ ----- ------- ------- ------- ------- ------- ---- I-76 25-36 0 0 0 0 0 0 0 0 37-48 0 0 0 0 0 0 0 0 49-60 0 0 0 0 0 0 0 0 61-72 0 0 0 0 0 0 0 0 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 121-132 0 0 0 0 0 0 0 0 133-144 0 0 0 0 0 0 0 0 145-156 0 0 0 0 0 0 0 0 157-168 0 0 0 0 0 0 0 0 169-180 0 0 0 0 0 0 0 0 181-192 0 0 0 0 0 0 0 0 193-204 0 0 0 0 0 0 0 0 205-216 0 0 0 0 0 0 0 0 217-228 0 0 0 0 0 0 0 0 229-240 0 0 0 0 0 0 0 0 241-252 0 0 0 0 0 0 0 0 253-264 2 0 40 0 24 0 0 0 265-276 1 3 25 65 15 42 0 0 277-288 0 0 0 0 0 0 0 0 289-300 2 0 61 0 46 0 0 0 301-312 24 2 652 61 508 48 0 12 313-324 34 22 920 612 759 506 75 19 325-336 33 29 723 781 631 684 43 0 337-348 44 31 753 674 694 622 45 0 349-360 33 41 683 710 664 691 166 18 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 173 128 3,857 2,903 3,341 2,593 329 49 ------ ----- ------- ------- ------- ------- ------- ---- RES+FP 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 121-132 0 0 0 0 0 0 0 0 133-144 0 0 0 0 0 0 0 0 145-156 0 0 0 0 0 0 0 0 157-168 0 0 0 0 0 0 0 0 169-180 0 0 0 0 0 0 0 0 181-192 0 0 0 0 0 0 0 0 193-204 0 0 0 0 0 0 0 0 205-216 0 0 0 0 0 0 0 0 217-228 0 0 0 0 0 0 0 0 229-240 0 0 0 0 0 0 0 0 241-252 0 0 0 0 0 0 0 0 253-264 0 0 0 0 0 0 0 0 265-276 0 0 0 0 0 0 0 0 277-288 1 0 6 3 0 0 0 289-300 0 1 0 6 0 3 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 1 1 6 6 3 3 0 0 ------ ----- ------- ------- ------- ------- ------- ----
F-59 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 3 - INFORMATION REGARDING INSTALLMENT CERTIFICATES CLASSIFIED BY AGE GROUPINGS YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Deductions from Reserves ------------------------ Number of Accounts Amount of Cash with Certificate Maturity Amount of Surrenders Holders Value Reserves Prior to December 31, December 31, December 31, Maturity Other Months ------------------ ----------------- ----------------- ---------- ----- Certificate Series Paid 2006 2007 2006 2007 2006 2007 2007 2007 - ------------------ ------- ------ ----- ------- ------- ------- ------- ---------- ----- IC-Q-INST 61-72 0 0 0 0 0 0 0 0 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 121-132 0 0 0 0 0 0 0 0 133-144 0 0 0 0 0 0 0 0 145-156 0 0 0 0 0 0 0 0 157-168 0 0 0 0 0 0 0 0 169-180 0 0 0 0 0 0 0 0 181-192 0 0 0 0 0 0 0 0 193-204 0 0 0 0 0 0 0 0 205-216 0 0 0 0 0 0 0 0 217-228 0 0 0 0 0 0 0 0 229-240 0 0 0 0 0 0 0 0 241-252 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- IC-Q-IN 1-12 0 0 0 0 0 0 0 0 13-24 0 0 0 0 0 0 0 0 25-36 0 0 0 0 0 0 0 0 37-48 0 0 0 0 0 0 0 0 49-60 0 0 0 0 0 0 0 0 61-72 0 0 0 0 0 0 0 0 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 121-132 0 0 0 0 0 0 0 0 133-144 0 0 0 0 0 0 0 0 145-156 0 0 0 0 0 0 0 0 157-168 0 0 0 0 0 0 0 0 169-180 8 0 93 0 37 0 0 0 181-192 19 6 200 54 107 30 1 0 193-204 12 17 126 183 75 70 45 0 205-216 16 9 227 72 54 41 41 0 217-228 18 9 219 128 80 13 46 0 229-240 7 13 84 116 37 55 33 0 241-252 0 1 0 6 0 5 16 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 80 55 949 559 390 214 182 0 ------ ----- ------- ------- ------- ------- ------- ---- IC-IN-EMP 1-12 0 0 0 0 0 0 0 0 13-24 0 0 0 0 0 0 0 0 25-36 0 0 0 0 0 0 0 0 37-48 0 0 0 0 0 0 0 0 49-60 0 0 0 0 0 0 0 0 61-72 0 0 0 0 0 0 0 0 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 121-132 0 0 0 0 0 0 0 0 133-144 0 0 0 0 0 0 0 0 145-156 0 0 0 0 0 0 0 0 157-168 0 0 0 0 0 0 0 0 169-180 0 0 0 0 0 0 0 0 181-192 0 0 0 0 0 0 0 0 193-204 1 0 6 0 3 0 0 0 205-216 0 1 0 6 0 3 0 0 229-240 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 1 1 6 6 3 3 0 0 ------ ----- ------- ------- ------- ------- ------- ---- IC-I 1-12 0 0 0 0 0 0 0 0 13-24 6 0 81 0 19 0 0 0 25-36 2 4 25 49 6 20 5 0 37-48 2 2 81 25 15 9 0 0 49-60 1 2 12 81 4 18 0 0 61-72 0 0 0 0 0 0 4 0
F-60 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 3 - INFORMATION REGARDING INSTALLMENT CERTIFICATES CLASSIFIED BY AGE GROUPINGS YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Deductions from Reserves ------------------------ Number of Accounts Amount of Cash with Certificate Maturity Amount of Surrenders Holders Value Reserves Prior to December 31, December 31, December 31, Maturity Other Months ------------------ ----------------- ----------------- ---------- ----- Certificate Series Paid 2006 2007 2006 2007 2006 2007 2007 2007 - ------------------ ------- ------ ----- ------- ------- ------- ------- ---------- ----- 73-84 0 0 0 0 0 0 0 0 85-96 5 0 40 0 33 0 0 0 97-108 1 4 24 33 20 28 7 0 109-120 750 1 11,536 24 6,782 23 0 0 121-132 15 8 246 118 168 57 1,191 0 133-144 21 11 296 186 219 144 0 0 145-156 23 17 344 260 195 171 0 0 157-168 13 15 120 228 116 108 20 0 169-180 12 11 125 102 98 95 12 0 181-192 0 11 0 101 0 91 15 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 851 86 12,930 1,207 7,675 764 1,254 0 ------ ----- ------- ------- ------- ------- ------- ---- IC-I-EMP 1-12 1 0 6 0 1 0 0 0 13-24 0 1 0 6 0 3 0 0 25-36 0 0 0 0 0 0 0 0 37-48 0 0 0 0 0 0 0 0 49-60 0 0 0 0 0 0 0 0 61-72 0 0 0 0 0 0 0 0 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 2 0 24 0 15 0 0 0 121-132 3 0 108 0 31 0 0 0 133-144 0 2 0 72 0 24 8 0 145-156 2 0 18 0 9 0 0 0 157-168 0 2 0 18 0 9 0 0 169-180 1 0 120 0 761 0 0 0 181-192 0 1 0 120 0 1,164 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 9 6 276 216 817 1,200 8 0 ------ ----- ------- ------- ------- ------- ------- ---- IC-I95 1-12 741 629 0 0 1,215 889 41 0 13-24 1,045 619 0 0 3,257 1,888 137 0 25-36 1,485 901 0 0 6,560 4,123 405 0 37-48 1,480 1,266 0 0 8,813 7,381 915 0 49-60 1,176 1,264 0 0 8,092 9,334 1,149 0 61-72 723 985 0 0 5,277 7,962 1,135 0 73-84 561 512 0 0 3,756 3,848 1,765 0 85-96 646 431 0 0 4,515 3,102 919 0 97-108 759 555 0 0 5,341 3,988 643 0 109-120 493 605 0 0 3,986 4,777 731 0 121-132 0 4 0 0 0 9 838 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 9,109 7,771 0 0 50,812 47,301 8,678 0 ------ ----- ------- ------- ------- ------- ------- ---- IC-I95-E 1-12 6 7 0 0 3 3 5 0 13-24 4 4 0 0 6 6 1 0 25-36 17 4 0 0 114 10 0 0 37-48 6 14 0 0 25 113 15 0 49-60 6 4 0 0 48 21 8 0 61-72 2 5 0 0 20 48 2 0 73-84 4 0 0 0 51 0 22 0 85-96 2 2 0 0 13 10 28 0 97-108 2 2 0 0 18 14 0 0 109-120 1 2 0 0 21 16 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 50 44 0 0 319 241 81 0 ------ ----- ------- ------- ------- ------- ------- ---- RP-Q-INST 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 121-132 0 0 0 0 0 0 0 0 133-144 0 0 0 0 0 0 0 0 145-156 0 0 0 0 0 0 0 0 157-168 0 0 0 0 0 0 0 0 169-180 0 0 0 0 0 0 0 0 181-192 0 0 0 0 0 0 0 0 193-204 0 0 0 0 0 0 0 0 205-216 0 0 0 0 0 0 0 0
F-61 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 3 - INFORMATION REGARDING INSTALLMENT CERTIFICATES CLASSIFIED BY AGE GROUPINGS YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Deductions from Reserves ------------------------ Number of Accounts Amount of Cash with Certificate Maturity Amount of Surrenders Holders Value Reserves Prior to December 31, December 31, December 31, Maturity Other Months ------------------ ----------------- ----------------- ---------- ----- Certificate Series Paid 2006 2007 2006 2007 2006 2007 2007 2007 - ------------------ ------- ------ ----- ------- ------- ------- ------- ---------- ----- 217-228 0 0 0 0 0 0 0 0 229-240 0 0 0 0 0 0 0 0 241-252 0 0 0 0 0 0 0 0 253-264 6 0 72 0 25 0 0 0 265-276 0 6 22 72 0 25 0 0 277-288 3 0 12 0 11 0 0 0 289-300 1 3 0 22 38 11 0 0 301-312 0 1 0 12 0 38 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 10 10 106 106 74 74 0 0 ------ ----- ------- ------- ------- ------- ------- ---- RP-Q-FP 61-72 0 0 0 0 0 0 0 0 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 121-132 0 0 0 0 0 0 0 0 133-144 0 0 0 0 0 0 0 0 145-156 0 0 0 0 0 0 0 0 157-168 0 0 0 0 0 0 0 0 169-180 0 0 0 0 0 0 0 0 181-192 0 0 0 0 0 0 0 0 193-204 0 0 0 0 0 0 0 0 205-216 0 0 0 0 0 0 0 0 217-228 0 0 0 0 0 0 0 0 229-240 0 0 0 0 0 0 0 0 241-252 2 0 32 0 13 0 0 0 253-264 0 2 0 32 0 13 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 2 2 32 32 13 13 0 0 ------ ----- ------- ------- ------- ------- ------- ---- RP-Q-IN 1-12 0 0 0 0 0 0 0 0 13-24 0 0 0 0 0 0 0 0 25-36 0 0 0 0 0 0 0 0 37-48 0 0 0 0 0 0 0 0 49-60 0 0 0 0 0 0 0 0 61-72 0 0 0 0 0 0 0 0 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 121-132 0 0 0 0 0 0 0 0 133-144 0 0 0 0 0 0 0 0 145-156 0 0 0 0 0 0 0 0 157-168 0 0 0 0 0 0 0 0 169-180 0 0 0 0 0 0 0 0 181-192 0 0 0 0 0 0 0 0 193-204 2 0 12 0 3 0 0 0 205-216 1 2 12 12 0 3 0 0 217-228 0 1 0 12 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 3 3 24 24 3 3 0 0 ------ ----- ------- ------- ------- ------- ------- ---- RP-IN-EMP 1-12 0 0 0 0 0 0 0 0 13-24 0 0 0 0 0 0 0 0 25-36 0 0 0 0 0 0 0 0 37-48 0 0 0 0 0 0 0 0 49-60 0 0 0 0 0 0 0 0 61-72 0 0 0 0 0 0 0 0 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- RP-I 1-12 0 0 0 0 0 0 0 0 13-24 0 0 0 0 0 0 0 0 25-36 0 0 0 0 0 0 0 0 37-48 0 0 0 0 0 0 0 0 49-60 0 0 0 0 0 0 0 0
F-62 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VI CERTIFICATE RESERVES PART 3 - INFORMATION REGARDING INSTALLMENT CERTIFICATES CLASSIFIED BY AGE GROUPINGS YEAR ENDED DECEMBER 31, 2007 ($ IN THOUSANDS)
Deductions from Reserves ------------------------ Number of Accounts Amount of Cash with Certificate Maturity Amount of Surrenders Holders Value Reserves Prior to December 31, December 31, December 31, Maturity Other Months ------------------ ----------------- ----------------- ---------- ----- Certificate Series Paid 2006 2007 2006 2007 2006 2007 2007 2007 - ------------------ ------- ------ ----- ------- ------- ------- ------- ---------- ----- 61-72 0 0 0 0 0 0 0 0 73-84 0 0 0 0 0 0 0 0 85-96 0 0 0 0 0 0 0 0 97-108 0 0 0 0 0 0 0 0 109-120 4 0 36 0 32 0 0 0 121-132 0 0 0 0 0 0 16 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 4 0 36 0 32 0 16 0 ------ ----- ------- ------- ------- ------- ------- ---- RP-I-EMP 1-12 0 0 0 0 0 0 0 0 13-24 0 0 0 0 0 0 0 0 25-36 0 0 0 0 0 0 0 0 37-48 0 0 0 0 0 0 0 0 49-60 0 0 0 0 0 0 0 0 61-72 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 0 0 0 0 0 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- Inst-R (RP-I95) 1-12 33 26 1,331 799 60 84 0 0 13-24 56 23 2,670 537 174 77 9 0 25-36 49 47 2,145 2,463 195 240 29 0 37-48 68 44 8,887 1,870 512 233 13 0 49-60 50 60 1,438 8,763 345 578 34 0 61-72 13 40 569 1,280 98 370 45 0 73-84 6 8 1,986 488 46 55 38 0 85-96 9 5 319 1,912 66 51 1 0 97-108 1 3 7 268 4 14 0 0 109-120 0 0 0 0 0 0 3 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 285 256 19,352 18,380 1,500 1,702 172 0 ------ ----- ------- ------- ------- ------- ------- ---- Inst-R-E 1-12 2 2 12 30 1 9 0 0 13-24 2 2 612 12 9 2 0 0 25-36 0 2 0 612 0 12 0 0 37-48 1 0 8 0 2 0 0 0 49-60 1 0 240 0 2 0 0 0 61-72 0 1 0 240 0 2 0 0 73-84 0 0 0 0 0 0 0 0 85-96 1 0 6 0 7 0 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL 7 7 878 894 21 25 0 0 ------ ----- ------- ------- ------- ------- ------- ---- TOTAL - ALL SERIES 10,655 8,394 $40,319 $25,089 $66,748 $54,833 $10,848 $719 ====== ===== ======= ======= ======= ======= ======= ====
F-63 AMERIPRISE CERTIFICATE COMPANY SCHEDULE VII VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005 ($ IN THOUSANDS) Year ended December 31, 2007
Additions ---------------- Reserves Balance Charged Balance deducted from at to costs Deductions at assets to beginning and from end which they apply of period expenses Other reserves/writedowns of period ---------------- --------- -------- ----- ------------------- --------- Allowance for losses: Conventional first mortgage loans $6,536 $-- $-- $1,700 $4,836
Year ended December 31, 2006
Additions ---------------- Reserves Balance Charged Balance deducted from at to costs Deductions at assets to beginning and from end which they apply of period expenses Other reserves/writedowns of period ---------------- --------- -------- ----- ------------------- --------- Allowance for losses: Conventional first mortgage loans and other loans $6,536 $-- $-- $-- $6,536
Year ended December 31, 2005
Additions ---------------- Reserves Balance Charged Balance deducted from at to costs Deductions at assets to beginning and from end which they apply of period expenses Other reserves/writedowns of period ---------------- --------- -------- ----- ------------------- --------- Allowance for losses: Conventional first mortgage loans and other loans $7,536 $(1,000) $-- $-- $6,536
F-64 EXHIBIT INDEX The following exhibits are filed as part of this Annual Report:
Exhibit Description - ------- ----------- 3(a) Amended and Restated Certificate of Incorporation of American Express Certificate Company, dated Aug. 1, 2005, filed electronically on or about March 10, 2006 as Exhibit 3(a) to Registrant's Form 10-K is incorporated by reference. 3(b) Current By-Laws, filed electronically as Exhibit 3(e) to Post-Effective Amendment No. 19 to Registration Statement No. 33-26844, are incorporated herein by reference. 4 through 9 None or not applicable. 10(a) Investment Advisory and Services Agreement, dated Dec. 31, 2006, between Registrant and RiverSource Investments, LLC filed electronically on or about Feb 26, 2007 as Exhibit 10(a) to Post-Effective Amendment No. 35 to Registration Statement No. 2-95577 for Ameriprise Flexible Savings Certificate is incorporated herein by reference. 10(b) Distribution Agreement, dated Dec. 31, 2006, between Registrant and Ameriprise Financial Services, Inc. filed electronically on or about Feb. 26, 2007 as Exhibit 1 to Post-Effective Amendment No. 35 to Registration Statement No. 2-95577 for Ameriprise Flexible Savings Certificate is incorporated herein by reference. 10(c) Depositary and Custodial Agreement, dated Dec. 31, 2006, between Registrant and Ameriprise Trust Company, filed electronically on or about Feb. 26, 2007 as Exhibit 10(c) to Post-Effective Amendment No. 35 to Registration Statement No. 2-95577 for Ameriprise Flexible Savings Certificate is incorporated herein by reference. 10(d) Foreign Deposit Agreement dated November 21, 1990, between IDS Certificate Company and IDS Bank & Trust, filed electronically as Exhibit 10(h) to Post-Effective Amendment No. 5 to Registration Statement No. 33-26844, is incorporated herein by reference. 10(e) Transfer Agent Agreement, dated Dec. 31, 2006 between Registrant and RiverSource Client Service Corporation filed electronically on or about Feb. 26, 2007 as Exhibit 10(e) to Post-Effective Amendment No. 35 to Registration Statement No. 2-95577 for Ameriprise Flexible Savings Certificate is incorporated herein by reference. 10(f) Administration and Services Agreement, dated October 1, 2005 between RiverSource Investments, LLC and Ameriprise Financial, Inc. filed electronically on or about March 10, 2006 as Exhibit 10(s) to Registrant's Form 10-K is incorporated by reference. 11 through 13 None or not applicable. 14(a) Code of Ethics under rule 17j-1 for Ameriprise Certificate Company, filed electronically as Exhibit 10 (p)(1) to Pre-Effective Amendment No. 1 to Registration Statement No. 333-34982, is incorporated herein by reference. 14(b) Codes of Ethics under rule 17j-1 for Registrant's investment advisor and principal underwriter, dated April 2006 and Jan. 2007, filed electronically on or about Feb. 26, 2007 as Exhibit 14(b) to Post-Effective Amendment No. 35 to Registration Statement No. 2-95577 for Ameriprise Flexible Savings Certificate is incorporated herein by reference. 15 through 23 None or not applicable. 24(a) Directors' Power of Attorney, dated Feb. 19, 2008, is filed electronically herewith as Exhibit 24 (a) to Registrant's Form 10-K. 24(b) Director's Power of Attorney, dated Feb. 19, 2008, is filed electronically herewith as Exhibit 24 (b) to Registrant's Form 10-K. 24(c) Officers' Power of Attorney, dated Feb. 19, 2008, is filed electronically herewith as Exhibit 24 (c) to Registrant's Form 10-K.
E-1 25 through 30 None or not applicable. 31.1 Certification of William F. Truscott pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. 31.2 Certification of Brian J. McGrane pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended. 32.1 Certification of William F. Truscott and Brian J. McGrane pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 33 through 100 None or not applicable.
E-2 EX-24.(A) 2 c24192exv24wxay.txt DIRECTORS' POWER OF ATTORNEY EXHIBIT 24(a) AMERIPRISE CERTIFICATE COMPANY POWER OF ATTORNEY City of Minneapolis State of Minnesota Each of the undersigned as a director of Ameriprise Certificate Company, a face-amount certificate company registered under the Investment Company Act of 1940, hereby constitutes and appoints William F. (Ted) Truscott, Brian J. McGrane, David K. Stewart, Scott R. Plummer and Christopher O. Petersen or any one of them, as his or her attorney-in-fact and agent, to sign for him or her in his or her name, place and stead any and all registration statements and amendments thereto (with all exhibits and other documents required or desirable in connection therewith) that may be prepared from time to time in connection with said Company's existing or future face-amount certificate products--whether pursuant to the requirements of the Securities Act of 1933, the Investment Company Act of 1940 or otherwise--and periodic and other reports, and amendments thereto, including those on Form 10-K, Form 10-Q and Form 8-K, as required pursuant to provisions of applicable federal securities laws, and any necessary or appropriate filings with states or other jurisdictions, and grants to any or all of them the full power and authority to do and perform each and every act required or necessary or appropriate in connection with such signatures or filings. Signed on this 19th day of February, 2008 /s/ Rodney P. Burwell - ------------------------------------- Name: Rodney P. Burwell /s/ Jean B. Keffeler - ------------------------------------- Name: Jean B. Keffeler /s/ Thomas R. McBurney - ------------------------------------- Name: Thomas R. McBurney /s/ Karen M. Bohn - ------------------------------------- Name: Karen M. Bohn EX-24.(B) 3 c24192exv24wxby.txt DIRECTOR'S POWER OF ATTORNEY EXHIBIT 24(b) AMERIPRISE CERTIFICATE COMPANY POWER OF ATTORNEY City of Minneapolis State of Minnesota Each of the undersigned as an officer of Ameriprise Certificate Company, a face-amount certificate company registered under the Investment Company Act of 1940, hereby constitutes and appoints William F. (Ted) Truscott, Scott R. Plummer, and Christopher O. Petersen or any one of them, as his attorney-in-fact and agent, to sign for him in his name, place and stead any and all registration statements and amendments thereto (with all exhibits and other documents required or desirable in connection therewith) that may be prepared from time to time in connection with said Company's existing or future face-amount certificate products--whether pursuant to the requirements of the Securities Act of 1933, the Investment Company Act of 1940 or otherwise--and periodic and other reports, and amendments thereto, including those on Form 10-K, Form 10-Q and Form 8-K, as required pursuant to provisions of applicable federal securities laws, and any necessary or appropriate filings with states or other jurisdictions, and grants to any or all of them the full power and authority to do and perform each and every act required or necessary or appropriate in connection with such signatures or filings. Signed on this 19th day of February, 2008 /s/ Brian J. McGrane - ------------------------------------- Name: Brian J. McGrane /s/ David K. Stewart - ------------------------------------- Name: David K. Stewart EX-24.(C) 4 c24192exv24wxcy.txt OFFICERS' POWER OF ATTORNEY EXHIBIT 24(c) AMERIPRISE CERTIFICATE COMPANY POWER OF ATTORNEY City of Minneapolis State of Minnesota The undersigned as a director and officer of Ameriprise Certificate Company, a face-amount certificate company registered under the Investment Company Act of 1940, hereby constitutes and appoints Brian J. McGrane, David K. Stewart, Scott R. Plummer, and Christopher O. Petersen or any one of them, as his attorney-in-fact and agent, to sign for him in his name, place and stead any and all registration statements and amendments thereto (with all exhibits and other documents required or desirable in connection therewith) that may be prepared from time to time in connection with said Company's existing or future face-amount certificate products--whether pursuant to the requirements of the Securities Act of 1933, the Investment Company Act of 1940 or otherwise--and periodic and other reports, and amendments thereto, including those on Form 10-K, Form 10-Q and Form 8-K, as required pursuant to provisions of applicable federal securities laws, and any necessary or appropriate filings with states or other jurisdictions, and grants to any or all of them the full power and authority to do and perform each and every act required or necessary or appropriate in connection with such signatures or filings. Signed on this 19th day of February, 2008 /s/ William F. Truscott - ------------------------------------- Name: William F. (Ted) Truscott EX-31.1 5 c24192exv31w1.txt CERTIFICATION OF WILLIAM F. TRUSCOTT EXHIBIT 31.1 CERTIFICATION I, William F. Truscott, certify that: 1. I have reviewed this annual report on Form 10-K of Ameriprise Certificate Company; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 29, 2008 /s/ William F. Truscott ---------------------------------------- William F. Truscott Chief Executive Officer EX-31.2 6 c24192exv31w2.txt CERTIFICATION OF BRIAN J. MCGRANE EXHIBIT 31.2 CERTIFICATION I, Brian J. McGrane, certify that: 1. I have reviewed this annual report on Form 10-K of Ameriprise Certificate Company; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or person performing the equivalent functions): (a) All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: February 29, 2008 /s/ Brian J. McGrane ---------------------------------------- Brian J. McGrane Chief Financial Officer EX-32.1 7 c24192exv32w1.txt SECTION 1350 CERTIFICATION OF WILLIAM F. TRUSCOTT AND BRIAN J. MCGRANE EXHIBIT 32.1 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Annual Report on Form 10-K of Ameriprise Certificate Company (the "Company") for the fiscal year ended December 31, 2007, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), William F. Truscott, as Chief Executive Officer of the Company and Brian J. McGrane, as Principal and Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ William F. Truscott - ------------------------------------- Name: William F. Truscott Title: Chief Executive Officer Date: February 29, 2008 /s/ Brian J. McGrane - ------------------------------------- Name: Brian J. McGrane Title: Chief Financial Officer Date: February 29, 2008 The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002, and is not being "filed" as part of the Form 10-K or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.1 is expressly and specifically incorporated by reference in any such filing. A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----