-----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, RCHpUVtAxOKp7XnXFfcYj4E+b5LehUyqfIuGlkJTcUe/vq3Ib7V0L0QquGyrvGUQ 2n87CAGlbQOTj2CJdNBZow== 0000950123-10-043450.txt : 20100504 0000950123-10-043450.hdr.sgml : 20100504 20100504150739 ACCESSION NUMBER: 0000950123-10-043450 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20091231 FILED AS OF DATE: 20100504 DATE AS OF CHANGE: 20100504 EFFECTIVENESS DATE: 20100504 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIVERSOURCE VARIABLE ACCOUNT 10 CENTRAL INDEX KEY: 0001000191 IRS NUMBER: 000000000 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-07355 FILM NUMBER: 10796863 BUSINESS ADDRESS: STREET 1: 50605 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5229 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 BUSINESS PHONE: 6126784177 MAIL ADDRESS: STREET 1: 50605 AMERIPRISE FINANCIAL CENTER STREET 2: H27/5229 CITY: MINNEAPOLIS STATE: MN ZIP: 55474 FORMER COMPANY: FORMER CONFORMED NAME: IDS LIFE VARIABLE ACCOUNT 10 DATE OF NAME CHANGE: 19950906 0001000191 S000003522 RIVERSOURCE VARIABLE ACCOUNT 10 C000009763 RiverSource Retirement Advisor Advantage Variable Annuity - Band 3 N-30B-2 1 c56833nv30bv2.txt FORM N-30B-2 (RIVERSOURCE ANNUITIES LOGO) RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE(R) VARIABLE ANNUITY - BAND 3 2009 ANNUAL REPORT (PAPERLESS LOGO) S-6407 L (4/10) Issued by: RiverSource Life Insurance Company ANNUAL FINANCIAL INFORMATION REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS RIVERSOURCE LIFE INSURANCE COMPANY We have audited the accompanying individual statements of assets and liabilities of the divisions of RiverSource Variable Account 10 - RiverSource Retirement Advisor Advantage(R) Variable Annuity - Band 3 (the Account) sponsored by RiverSource Life Insurance Company, referred to in Note 1, as of December 31, 2009, and the related statements of operations and changes in net assets for the periods disclosed in the financial statements. These financial statements are the responsibility of the management of RiverSource Life Insurance Company. Our responsibility is to express an opinion on these financial statements 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 audits of the Account'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 Account'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, 2009 by correspondence with the affiliated and unaffiliated mutual fund managers. 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 individual financial position of the divisions of RiverSource Variable Account 10 - RiverSource Retirement Advisor Advantage(R) Variable Annuity - Band 3, referred to in Note 1, at December 31, 2009, and the individual results of their operations and the changes in their net assets for the periods described above, in conformity with U.S. generally accepted accounting principles. (Ernst & Young LLP Signature) Minneapolis, Minnesota April 23, 2010 - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 1 STATEMENTS OF ASSETS AND LIABILITIES
INVESCO INVESCO INVESCO INVESCO INVESCO VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, VI GLOBAL HLTH, DEC. 31, 2009 SER II SER II SER I SER I SER II ASSETS Investments, at fair value(1),(2) $104,160,856 $33,383,822 $ 6,407,247 $ 14,737,258 $ 23,380,545 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 5,354 655 -- 13,274 28,359 Receivable for share redemptions 111,314 82,835 9,859 24,864 48,365 - -------------------------------------------------------------------------------------------------------------------------- Total assets 104,277,524 33,467,312 6,417,106 14,775,396 23,457,269 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 75,771 24,955 4,552 10,632 17,697 Contract terminations 35,543 57,880 5,307 14,232 30,668 Payable for investments purchased 5,354 655 -- 13,274 28,359 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 116,668 83,490 9,859 38,138 76,724 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 104,145,121 33,366,402 6,392,625 14,735,983 23,379,236 Net assets applicable to contracts in payment period 15,735 17,420 14,622 1,275 1,309 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total net assets $104,160,856 $33,383,822 $ 6,407,247 $ 14,737,258 $ 23,380,545 - -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 5,208,043 3,037,654 450,263 2,889,658 1,498,753 (2) Investments, at cost $113,644,442 $39,957,763 $ 5,228,198 $ 23,231,124 $ 25,574,673 - -------------------------------------------------------------------------------------------------------------------------- INVESCO INVESCO AB VPS AB VPS AB VPS VI INTL GRO, VI TECH, GLOBAL THEMATIC GRO & INC, INTL VAL, DEC. 31, 2009 (CONTINUED) SER II SER I GRO, CL B CL B CL B ASSETS Investments, at fair value(1),(2) $767,970,930 $28,223,341 $17,971,619 $127,984,486 $647,669,201 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 244,272 8,943 33,843 2,513 64,333 Receivable for share redemptions 599,069 22,850 30,085 208,517 786,521 - -------------------------------------------------------------------------------------------------------------------------- Total assets 768,814,271 28,255,134 18,035,547 128,195,516 648,520,055 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 597,911 20,075 13,641 94,256 490,458 Contract terminations 1,158 2,775 16,444 114,261 296,063 Payable for investments purchased 244,272 8,943 33,843 2,513 64,333 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 843,341 31,793 63,928 211,030 850,854 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 767,884,478 28,222,542 17,917,535 127,848,081 646,983,348 Net assets applicable to contracts in payment period 86,452 799 54,084 136,405 685,853 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total net assets $767,970,930 $28,223,341 $17,971,619 $127,984,486 $647,669,201 - -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 29,963,751 2,139,753 1,099,854 8,487,035 44,543,962 (2) Investments, at cost $787,598,439 $24,689,450 $16,901,116 $177,069,553 $749,196,050 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 2 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES
AC VP AC VP AC VP AC VP CALVERT INTL, MID CAP VAL, ULTRA, VAL, VS DEC. 31, 2009 (CONTINUED) CL II CL II CL II CL II SOCIAL BAL ASSETS Investments, at fair value(1),(2) $ 59,609,752 $203,460,054 $ 26,369,904 $206,108,543 $27,571,546 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 11,354 88,437 8,596 12,212 180 Receivable for share redemptions 75,394 159,090 109,292 263,471 69,756 - -------------------------------------------------------------------------------------------------------------------------- Total assets 59,696,500 203,707,581 26,487,792 206,384,226 27,641,482 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 43,529 156,988 19,850 154,972 20,038 Contract terminations 31,865 2,102 89,441 108,499 49,718 Payable for investments purchased 11,354 88,437 8,596 12,212 180 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 86,748 247,527 117,887 275,683 69,936 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 59,455,200 203,383,376 26,361,003 205,816,699 27,493,065 Net assets applicable to contracts in payment period 154,552 76,678 8,902 291,844 78,481 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total net assets $ 59,609,752 $203,460,054 $ 26,369,905 $206,108,543 $27,571,546 - -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 7,721,470 16,773,294 3,279,839 38,961,917 17,985,353 (2) Investments, at cost $ 55,674,108 $207,811,891 $ 30,589,684 $271,062,917 $31,954,868 - -------------------------------------------------------------------------------------------------------------------------- COL COL MARSICO CS EV VT EG VA MARSICO GRO, INTL OPP, COMMODITY FLOATING-RATE FUNDAMENTAL DEC. 31, 2009 (CONTINUED) VS CL A VS CL B RETURN INC LG CAP, CL 2 ASSETS Investments, at fair value(1),(2) $1,713,729,732 $ 78,881,553 $ 89,247,216 $884,458,995 $36,686,464 Dividends receivable -- -- 8,662,684 3,338,988 -- Accounts receivable from RiverSource Life for contract purchase payments 551,978 43,917 32,294 296,714 39,605 Receivable for share redemptions 1,343,019 60,799 104,326 979,803 41,193 - -------------------------------------------------------------------------------------------------------------------------- Total assets 1,715,624,729 78,986,269 98,046,520 889,074,500 36,767,262 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 1,339,656 60,294 67,899 699,536 27,718 Contract terminations 3,363 506 36,428 280,268 13,475 Payable for investments purchased 551,978 43,917 8,694,977 3,635,702 39,605 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,894,997 104,717 8,799,304 4,615,506 80,798 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 1,713,373,199 78,645,750 89,198,960 884,168,035 36,547,536 Net assets applicable to contracts in payment period 356,533 235,802 48,256 290,959 138,848 Net assets applicable to seed money -- -- -- -- 80 - -------------------------------------------------------------------------------------------------------------------------- Total net assets $1,713,729,732 $ 78,881,552 $ 89,247,216 $884,458,994 $36,686,464 - -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 101,344,159 5,574,668 11,651,073 97,730,276 2,150,438 (2) Investments, at cost $1,746,575,572 $108,800,343 $117,634,425 $879,626,224 $34,662,594 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 3 STATEMENTS OF ASSETS AND LIABILITIES
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, DEC. 31, 2009 (CONTINUED) CL 2 SERV CL 2 SERV CL 2 SERV CL 2 SERV CL 2 ASSETS Investments, at fair value(1),(2) $752,301,534 $ 791,181,505 $171,003,098 $1,036,330,593 $129,326,024 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 310,497 72,201 2,066 401,571 135,123 Receivable for share redemptions 592,285 806,155 212,887 963,881 150,549 - ----------------------------------------------------------------------------------------------------------------------------- Total assets 753,204,316 792,059,861 171,218,051 1,037,696,045 129,611,696 - ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 591,585 606,190 124,439 785,381 96,443 Contract terminations 699 199,965 88,447 178,501 54,105 Payable for investments purchased 310,497 72,201 2,066 401,571 135,123 - ----------------------------------------------------------------------------------------------------------------------------- Total liabilities 902,781 878,356 214,952 1,365,453 285,671 - ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 752,147,851 790,229,457 170,694,573 1,035,464,462 129,008,596 Net assets applicable to contracts in payment period 153,684 952,048 308,526 866,130 317,429 Net assets applicable to seed money -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Total net assets $752,301,535 $ 791,181,505 $171,003,099 $1,036,330,592 $129,326,025 - ----------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 71,038,861 38,993,667 15,688,358 41,288,071 8,667,964 (2) Investments, at cost $643,429,863 $1,005,446,749 $198,856,933 $1,106,717,339 $147,976,581 - ----------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK FTVIPT FRANK FTVIPT GS VIT GS VIT GLOBAL REAL EST, SM CAP VAL, MUTUAL SHARES MID CAP VAL, STRUCTD U.S. DEC. 31, 2009 (CONTINUED) CL 2 CL 2 SEC, CL 2 INST EQ, INST ASSETS Investments, at fair value(1),(2) $170,846,852 $ 183,263,851 $178,999,271 $ 326,736,273 $180,207,162 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 22,253 27,334 287,695 1,528 Receivable for share redemptions 163,209 160,042 249,342 437,132 243,998 - ----------------------------------------------------------------------------------------------------------------------------- Total assets 171,010,061 183,446,146 179,275,947 327,461,100 180,452,688 - ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 125,668 136,000 137,219 237,601 132,326 Contract terminations 37,542 24,042 112,122 199,531 111,672 Payable for investments purchased -- 22,253 27,334 287,695 1,528 - ----------------------------------------------------------------------------------------------------------------------------- Total liabilities 163,210 182,295 276,675 724,827 245,526 - ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 170,536,965 183,050,634 178,746,009 326,295,876 180,034,995 Net assets applicable to contracts in payment period 309,886 213,217 253,263 440,397 172,167 Net assets applicable to seed money -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Total net assets $170,846,851 $ 183,263,851 $178,999,272 $ 326,736,273 $180,207,162 - ----------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 15,645,316 14,351,124 12,277,042 28,787,337 18,969,175 (2) Investments, at cost $318,366,161 $ 196,789,734 $210,244,338 $ 406,329,769 $228,392,161 - -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 4 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES
JANUS ASPEN JANUS ASPEN JANUS ASPEN MFS MFS GLOBAL JANUS, OVERSEAS, INV GRO STOCK, NEW DIS, DEC. 31, 2009 (CONTINUED) TECH, SERV SERV SERV SERV CL SERV CL ASSETS Investments, at fair value(1),(2) $ 21,824,264 $1,454,728,162 $160,461,026 $88,112,067 $ 52,364,708 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 46,281 588,340 285 673 24 Receivable for share redemptions 17,766 1,139,774 230,135 138,730 93,456 - --------------------------------------------------------------------------------------------------------------------------- Total assets 21,888,311 1,456,456,276 160,691,446 88,251,470 52,458,188 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 15,276 1,139,300 115,065 64,474 37,909 Contract terminations 2,490 475 115,071 74,256 55,546 Payable for investments purchased 46,281 588,340 285 673 24 - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 64,047 1,728,115 230,421 139,403 93,479 - --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 21,678,628 1,454,707,503 160,158,876 87,990,047 52,312,819 Net assets applicable to contracts in payment period 145,636 20,658 302,149 121,946 51,890 Net assets applicable to seed money -- -- -- 74 -- - --------------------------------------------------------------------------------------------------------------------------- Total net assets $ 21,824,264 $1,454,728,161 $160,461,025 $88,112,067 $ 52,364,709 - --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 4,796,542 68,911,803 3,559,473 9,159,259 4,012,621 (2) Investments, at cost $ 24,735,606 $1,466,331,287 $126,795,923 $87,829,590 $ 55,134,046 - --------------------------------------------------------------------------------------------------------------------------- MFS NB AMT OPPEN OPPEN OPPEN UTILITIES, INTL, GLOBAL SEC MAIN ST SM CAP GLOBAL STRATEGIC DEC. 31, 2009 (CONTINUED) SERV CL CL S VA, SERV VA, SERV INC VA, SERV ASSETS Investments, at fair value(1),(2) $236,943,402 $ 309,505,108 $101,815,668 $73,523,240 $2,606,148,542 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 182,521 119,714 160,519 3,091 884,774 Receivable for share redemptions 318,946 241,690 81,140 112,007 2,047,873 - --------------------------------------------------------------------------------------------------------------------------- Total assets 237,444,869 309,866,512 102,057,327 73,638,338 2,609,081,189 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 177,348 241,538 77,055 56,320 2,045,076 Contract terminations 141,598 152 4,085 55,687 2,797 Payable for investments purchased 182,521 119,714 160,519 3,091 884,774 - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 501,467 361,404 241,659 115,098 2,932,647 - --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 236,579,286 309,491,833 101,559,240 73,451,742 2,604,114,293 Net assets applicable to contracts in payment period 364,116 13,275 256,428 71,498 2,034,249 Net assets applicable to seed money -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total net assets $236,943,402 $ 309,505,108 $101,815,668 $73,523,240 $2,606,148,542 - --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 10,461,077 32,545,227 3,874,264 5,148,686 484,414,227 (2) Investments, at cost $254,431,456 $ 345,941,931 $115,605,351 $84,548,321 $2,542,668,588 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 5 STATEMENTS OF ASSETS AND LIABILITIES
PIMCO PUT VT PUT VT PUT VT DISC VIT ALL ASSET, GLOBAL HLTH CARE, INTL EQ, VISTA, ASSET ALLOC, DEC. 31, 2009 (CONTINUED) ADVISOR CL CL IB CL IB CL IB AGGR ASSETS Investments, at fair value(1),(2) $1,199,776,050 $26,090,706 $36,019,320 $30,947,612 $ 20,077,483 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 490,911 5,108 19,335 -- 1,291 Receivable for share redemptions 1,274,752 19,362 30,650 63,992 -- - ----------------------------------------------------------------------------------------------------------------------------- Total assets 1,201,541,713 26,115,176 36,069,305 31,011,604 20,078,774 - ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 939,931 19,031 26,291 22,102 14,323 Contract terminations 334,822 332 4,360 41,891 -- Payable for investments purchased 490,911 5,108 19,335 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,765,664 24,471 49,986 63,993 14,323 - ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 1,199,070,355 26,054,263 35,984,803 30,833,627 19,931,138 Net assets applicable to contracts in payment period 705,694 36,442 34,516 113,984 133,249 Net assets applicable to seed money -- -- -- -- 64 - ----------------------------------------------------------------------------------------------------------------------------- Total net assets $1,199,776,049 $26,090,705 $36,019,319 $30,947,611 $ 20,064,451 - ----------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 114,264,386 2,145,617 3,250,841 2,684,095 2,293,626 (2) Investments, at cost $1,262,277,848 $24,614,657 $43,776,577 $47,379,096 $ 18,197,730 - ----------------------------------------------------------------------------------------------------------------------------- DISC DISC DISC DISC VP DAVIS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, NY VENTURE, DEC. 31, 2009 (CONTINUED) CONSERV MOD MOD AGGR MOD CONSERV CL 3 ASSETS Investments, at fair value(1),(2) $ 40,560,281 $85,411,505 $49,647,175 $50,768,300 $1,519,549,215 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 35,105 10,080 20,402 171,388 559,127 Receivable for share redemptions -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Total assets 40,595,386 85,421,585 49,667,577 50,939,688 1,520,108,342 - ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 30,647 62,038 35,920 38,177 1,189,548 Contract terminations 38,263 653,344 2,075 14,489 140 Payable for investments purchased -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Total liabilities 68,910 715,382 37,995 52,666 1,189,688 - ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 40,346,267 84,355,737 48,964,041 50,872,579 1,518,842,446 Net assets applicable to contracts in payment period 180,209 350,466 665,541 14,354 76,208 Net assets applicable to seed money -- -- -- 89 -- - ----------------------------------------------------------------------------------------------------------------------------- Total net assets $ 40,526,476 $84,706,203 $49,629,582 $50,887,022 $1,518,918,654 - ----------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 4,119,308 9,324,956 5,535,008 5,368,507 169,636,432 (2) Investments, at cost $ 37,078,596 $79,136,030 $45,824,998 $46,505,227 $1,445,296,567 - -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 6 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES
VP GS VP PTNRS RVS VP RVS VP RVS VP MID CAP VAL, SM CAP VAL, BAL, CASH DIV DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 MGMT, CL 3 BOND, CL 3 ASSETS Investments, at fair value(1),(2) $ 12,872,234 $1,090,682,020 $ 264,485,095 $ 646,091,771 $4,160,787,722 Dividends receivable -- -- -- 174 -- Accounts receivable from RiverSource Life for contract purchase payments 17,649 288,788 9,013 338,837 1,456,483 Receivable for share redemptions -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total assets 12,889,883 1,090,970,808 264,494,108 646,430,782 4,162,244,205 - -------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 9,595 843,909 225,999 518,188 3,295,118 Contract terminations 1,233 21,206 227,243 1,174,349 648,879 Payable for investments purchased -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total liabilities 10,828 865,115 453,242 1,692,537 3,943,997 - -------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 12,871,527 1,089,727,629 260,291,472 644,416,147 4,153,798,271 Net assets applicable to contracts in payment period 7,528 378,064 3,749,394 322,098 4,501,937 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total net assets $ 12,879,055 $1,090,105,693 $ 264,040,866 $ 644,738,245 $4,158,300,208 - -------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 1,403,078 88,932,990 21,519,993 646,091,771 386,646,839 (2) Investments, at cost $ 14,693,062 $1,120,642,752 $ 301,548,497 $ 645,772,741 $4,013,758,108 - -------------------------------------------------------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP DIV EQ DYN GLOBAL GLOBAL INFLATION HI YIELD DEC. 31, 2009 (CONTINUED) INC, CL 3 EQ, CL 3 BOND, CL 3 PROT SEC, CL 3 BOND, CL 3 ASSETS Investments, at fair value(1),(2) $2,728,139,356 $ 452,804,516 $1,429,340,223 $1,786,161,644 $ 538,448,744 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 577,690 304 782,519 717,973 229,109 Receivable for share redemptions -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total assets 2,728,717,046 452,804,820 1,430,122,742 1,786,879,617 538,677,853 - -------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 2,130,891 377,398 1,129,260 1,408,232 422,827 Contract terminations 336,343 200,628 -- 2,088 563,636 Payable for investments purchased -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total liabilities 2,467,234 578,026 1,129,260 1,410,320 986,463 - -------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 2,722,626,361 447,785,525 1,428,292,612 1,785,340,351 535,199,080 Net assets applicable to contracts in payment period 3,623,451 4,441,269 700,870 128,946 2,492,310 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------------- Total net assets $2,726,249,812 $ 452,226,794 $1,428,993,482 $1,785,469,297 $ 537,691,390 - -------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 242,014,868 27,499,482 124,317,365 189,953,160 80,291,975 (2) Investments, at cost $2,981,373,217 $ 620,287,025 $1,363,806,241 $1,808,728,718 $ 528,931,102 - --------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 7 STATEMENTS OF ASSETS AND LIABILITIES
RVS VP RVS VP RVS VP RVS VP RVS VP INC MID CAP MID CAP S&P 500, SHORT DEC. 31, 2009 (CONTINUED) OPP, CL 3 GRO, CL 3 VAL, CL 3 CL 3 DURATION, CL 3 ASSETS Investments, at fair value(1),(2) $1,565,464,164 $128,811,864 $220,510,539 $151,666,821 $346,017,847 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 515,157 15,751 28,310 265,477 172,099 Receivable for share redemptions -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total assets 1,565,979,321 128,827,615 220,538,849 151,932,298 346,189,946 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 1,230,617 105,056 168,186 111,742 262,944 Contract terminations 386,344 3,647 34,961 64,406 28,366 Payable for investments purchased -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,616,961 108,703 203,147 176,148 291,310 - --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 1,564,154,607 128,005,905 220,269,316 151,017,927 345,183,650 Net assets applicable to contracts in payment period 207,753 713,007 66,386 738,223 714,986 Net assets applicable to seed money -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total net assets $1,564,362,360 $128,718,912 $220,335,702 $151,756,150 $345,898,636 - --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 146,131,275 11,195,148 24,671,474 20,205,158 34,026,466 (2) Investments, at cost $1,416,066,663 $124,588,763 $277,909,619 $154,574,307 $348,810,791 - --------------------------------------------------------------------------------------------------------------------------- SEL SEL VP SEL VP THDL VP THDL VP VP LG CAP SM CAP EMER INTL DEC. 31, 2009 (CONTINUED) GRO, CL 3 VAL, CL 3 VAL, CL 3 MKTS, CL 3 OPP, CL 3 ASSETS Investments, at fair value(1),(2) $ 155,386,747 $ 13,067,448 $ 59,236,160 $657,467,942 $163,484,607 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 892 2,831 2,991 270,517 68,718 Receivable for share redemptions -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total assets 155,387,639 13,070,279 59,239,151 657,738,459 163,553,325 - --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 112,850 9,597 43,142 524,814 142,735 Contract terminations 107,135 2,523 153,122 53,092 32,439 Payable for investments purchased -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total liabilities 219,985 12,120 196,264 577,906 175,174 - --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 154,651,865 13,046,549 58,947,810 656,482,125 162,316,219 Net assets applicable to contracts in payment period 515,789 11,610 95,077 678,428 1,061,932 Net assets applicable to seed money -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total net assets $ 155,167,654 $ 13,058,159 $ 59,042,887 $657,160,553 $163,378,151 - --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 26,694,388 1,571,759 6,525,506 43,255,968 15,184,977 (2) Investments, at cost $ 200,192,631 $ 15,106,630 $ 75,651,800 $559,187,203 $163,765,772 - ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 8 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES
VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL MID CAP GRO, WANGER WANGER DEC. 31, 2009 (CONTINUED) CL II REAL EST, CL II CL II INTL USA ASSETS Investments, at fair value(1),(2) $681,300,780 $264,521,914 $47,117,081 $893,101,535 $745,595,633 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 168,266 49,548 16,814 241,718 653,346 Receivable for share redemptions 549,126 250,150 56,273 736,609 864,725 - -------------------------------------------------------------------------------------------------------------------------- Total assets 682,018,172 264,821,612 47,190,168 894,079,862 747,113,704 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 525,165 205,599 35,699 680,819 563,180 Contract terminations 23,961 44,551 20,574 55,789 301,544 Payable for investments purchased 168,266 49,548 16,814 241,718 653,346 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 717,392 299,698 73,087 978,326 1,518,070 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 681,144,653 264,453,867 47,070,294 892,616,883 745,163,833 Net assets applicable to contracts in payment period 156,127 68,047 46,787 484,653 431,801 Net assets applicable to seed money -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total net assets $681,300,780 $264,521,914 $47,117,081 $893,101,536 $745,595,634 - -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 67,455,523 34,264,497 5,189,106 30,091,022 27,161,954 (2) Investments, at cost $811,576,638 $291,987,922 $56,515,188 $847,902,056 $763,664,026 - -------------------------------------------------------------------------------------------------------------------------- WF ADV WF ADV WF ADV WF ADV VT INDEX VT VT VT DEC. 31, 2009 (CONTINUED) ASSET ALLOC INTL CORE OPP SM CAP GRO ASSETS Investments, at fair value(1),(2) $ 41,323,976 $ 7,251,113 $ 47,588,712 $ 84,640,004 Dividends receivable -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 13,156 14,785 5,735 39,748 Receivable for share redemptions 37,014 5,271 96,749 85,697 - -------------------------------------------------------------------------------------------------------------------------- Total assets 41,374,146 7,271,169 47,691,196 84,765,449 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 30,522 5,256 34,852 63,057 Contract terminations 6,492 15 61,897 22,640 Payable for investments purchased 13,156 14,785 5,735 39,748 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 50,170 20,056 102,484 125,445 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 41,124,023 7,242,543 47,571,808 84,580,249 Net assets applicable to contracts in payment period 199,953 8,570 16,904 59,755 Net assets applicable to seed money -- -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Total net assets $ 41,323,976 $ 7,251,113 $ 47,588,712 $ 84,640,004 - -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 3,924,404 1,441,573 3,170,467 13,329,135 (2) Investments, at cost $ 48,327,211 $10,545,768 $ 57,478,713 $ 96,548,742 - --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 9 STATEMENTS OF OPERATIONS
INVESCO INVESCO INVESCO INVESCO INVESCO VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, VI GLOBAL HLTH, YEAR ENDED DEC. 31, 2009 SER II SER II SER I SER I SER II INVESTMENT INCOME Dividend income $ 262,423 $ -- $ -- $ 420,531 $ 26,773 Variable account expenses 815,039 264,934 47,684 103,543 179,413 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (552,616) (264,934) (47,684) 316,988 (152,640) - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 18,799,064 7,715,295 1,475,965 3,979,575 4,861,332 Cost of investments sold 24,371,207 11,650,376 1,565,690 8,301,513 6,350,588 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (5,572,143) (3,935,081) (89,725) (4,321,938) (1,489,256) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 23,330,361 14,524,850 2,086,156 7,376,218 6,527,759 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 17,758,218 10,589,769 1,996,431 3,054,280 5,038,503 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $17,205,602 $10,324,835 $1,948,747 $ 3,371,268 $ 4,885,863 - ---------------------------------------------------------------------------------------------------------------------------------
INVESCO INVESCO AB VPS AB VPS AB VPS VI INTL GRO, VI TECH, GLOBAL THEMATIC GRO & INC, INTL VAL, YEAR ENDED DEC. 31, 2009 (CONTINUED) SER II SER I GRO, CL B CL B CL B INVESTMENT INCOME Dividend income $ 9,159,737 $ -- $ -- $ 4,320,789 $ 6,281,031 Variable account expenses 5,514,284 174,465 111,610 1,061,827 6,611,650 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 3,645,453 (174,465) (111,610) 3,258,962 (330,619) - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 43,192,877 3,137,524 2,887,410 29,012,319 488,196,235 Cost of investments sold 58,148,727 3,677,905 3,494,382 46,433,973 730,895,342 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (14,955,850) (540,381) (606,972) (17,421,654) (242,699,107) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 196,856,943 9,879,261 5,777,996 35,443,487 444,152,316 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 181,901,093 9,338,880 5,171,024 18,021,833 201,453,209 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $185,546,546 $9,164,415 $5,059,414 $ 21,280,795 $ 201,122,590 - ---------------------------------------------------------------------------------------------------------------------------------
AC VP AC VP AC VP AC VP CALVERT INTL, MID CAP VAL, ULTRA, VAL, VS YEAR ENDED DEC. 31, 2009 (CONTINUED) CL II CL II CL II CL II SOCIAL BAL INVESTMENT INCOME Dividend income $ 1,099,088 $ 7,335,391 $ 39,171 $ 10,290,944 $ 545,171 Variable account expenses 467,218 1,719,669 202,440 1,659,496 224,616 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 631,870 5,615,722 (163,269) 8,631,448 320,555 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 13,288,563 74,386,801 5,996,513 35,043,151 5,467,446 Cost of investments sold 15,747,640 96,828,574 8,845,296 54,514,028 7,285,728 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (2,459,077) (22,441,773) (2,848,783) (19,470,877) (1,818,282) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 16,870,540 63,020,683 9,632,641 43,667,336 7,185,010 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 14,411,463 40,578,910 6,783,858 24,196,459 5,366,728 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $15,043,333 $ 46,194,632 $ 6,620,589 $ 32,827,907 $ 5,687,283 - ---------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 10 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF OPERATIONS
COL COL MARSICO CS EV VT EG VA MARSICO GRO, INTL OPP, COMMODITY FLOATING-RATE FUNDAMENTAL YEAR ENDED DEC. 31, 2009 (CONTINUED) VS CL A VS CL B RETURN INC LG CAP, CL 2 INVESTMENT INCOME Dividend income $ 11,325,737 $ 1,314,397 $ 8,762,312 $ 32,827,518 $ 313,753 Variable account expenses 11,962,593 637,153 645,329 6,499,145 240,801 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (636,856) 677,244 8,116,983 26,328,373 72,952 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 80,541,136 18,693,051 7,490,071 44,376,586 4,455,806 Cost of investments sold 96,308,507 33,500,909 10,891,696 51,597,242 5,240,470 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (15,767,371) (14,807,858) (3,401,625) (7,220,656) (784,664) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 356,601,733 35,247,373 8,523,612 198,712,069 8,956,333 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 340,834,362 20,439,515 5,121,987 191,491,413 8,171,669 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $340,197,506 $ 21,116,759 $13,238,970 $217,819,786 $8,244,621 - ---------------------------------------------------------------------------------------------------------------------------------
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 2 SERV CL 2 SERV CL 2 SERV CL 2 SERV CL 2 INVESTMENT INCOME Dividend income $ 1,732,630 $ 8,388,298 $ 1,334,849 $ 4,196,663 $ 2,204,208 Variable account expenses 3,528,022 8,151,414 1,381,858 8,750,522 1,033,553 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (1,795,392) 236,884 (47,009) (4,553,859) 1,170,655 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 50,133,611 593,649,540 37,420,333 317,796,938 27,446,413 Cost of investments sold 46,040,475 946,628,913 52,134,624 426,047,659 38,591,411 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 4,093,136 (352,979,373) (14,714,291) (108,250,721) (11,144,998) Distributions from capital gains -- 193,105 -- 4,714,168 384,952 Net change in unrealized appreciation or depreciation of investments 127,731,038 584,421,899 51,670,655 419,401,944 35,438,317 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 131,824,174 231,635,631 36,956,364 315,865,391 24,678,271 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $130,028,782 $ 231,872,515 $ 36,909,355 $ 311,311,532 $ 25,848,926 - ---------------------------------------------------------------------------------------------------------------------------------
FTVIPT FRANK GLOBAL REAL FTVIPT FRANK FTVIPT GS VIT GS VIT EST, SM CAP VAL, MUTUAL SHARES MID CAP VAL, STRUCTD U.S. YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 2 CL 2 SEC, CL 2 INST EQ, INST INVESTMENT INCOME Dividend income $ 19,636,860 $ 2,775,348 $ 3,137,611 $ 5,168,256 $ 3,373,063 Variable account expenses 1,322,079 1,456,522 1,485,895 2,553,776 1,462,467 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 18,314,781 1,318,826 1,651,716 2,614,480 1,910,596 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 35,888,851 37,384,693 34,330,734 70,885,044 38,429,046 Cost of investments sold 82,974,294 48,917,502 48,326,485 110,423,843 57,400,630 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (47,085,443) (11,532,809) (13,995,751) (39,538,799) (18,971,584) Distributions from capital gains -- 7,642,928 -- -- -- Net change in unrealized appreciation or depreciation of investments 52,846,215 43,213,432 48,608,825 119,134,008 47,711,018 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 5,760,772 39,323,551 34,613,074 79,595,209 28,739,434 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 24,075,553 $ 40,642,377 $ 36,264,790 $ 82,209,689 $ 30,650,030 - ---------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 11 STATEMENTS OF OPERATIONS
JANUS ASPEN JANUS ASPEN JANUS ASPEN MFS MFS GLOBAL JANUS, OVERSEAS, INV GRO STOCK, NEW DIS, YEAR ENDED DEC. 31, 2009 (CONTINUED) TECH, SERV SERV SERV SERV CL SERV CL INVESTMENT INCOME Dividend income $ -- $ 4,019,693 $ 531,656 $ 296,485 $ -- Variable account expenses 134,539 9,954,712 1,114,433 609,550 361,694 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (134,539) (5,935,019) (582,777) (313,065) (361,694) - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 1,973,810 68,346,239 21,139,478 8,922,337 7,312,292 Cost of investments sold 3,087,842 83,170,377 24,002,704 11,160,136 10,851,527 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (1,114,032) (14,824,138) (2,863,226) (2,237,799) (3,539,235) Distributions from capital gains -- -- 3,684,756 -- -- Net change in unrealized appreciation or depreciation of investments 8,155,612 366,845,252 71,467,925 25,721,007 24,075,207 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 7,041,580 352,021,114 72,289,455 23,483,208 20,535,972 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 6,907,041 $346,086,095 $71,706,678 $23,170,143 $20,174,278 - ---------------------------------------------------------------------------------------------------------------------------------
OPPEN MFS NB AMT OPPEN OPPEN GLOBAL UTILITIES, INTL, GLOBAL SEC MAIN ST SM CAP STRATEGIC YEAR ENDED DEC. 31, 2009 (CONTINUED) SERV CL CL S VA, SERV VA, SERV INC VA, SERV INVESTMENT INCOME Dividend income $ 10,067,044 $ 9,449,792 $ 1,723,508 $ 416,213 $ 5,356,672 Variable account expenses 1,873,094 2,358,018 783,920 577,988 21,201,271 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 8,193,950 7,091,774 939,588 (161,775) (15,844,599) - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 43,909,962 42,550,390 17,109,654 13,595,071 202,352,671 Cost of investments sold 58,181,190 57,565,083 25,238,513 19,895,378 227,495,407 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (14,271,228) (15,014,693) (8,128,859) (6,300,307) (25,142,736) Distributions from capital gains -- -- 1,911,246 -- 1,678,820 Net change in unrealized appreciation or depreciation of investments 64,272,529 84,857,173 33,275,208 26,119,350 409,458,541 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 50,001,301 69,842,480 27,057,595 19,819,043 385,994,625 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 58,195,251 $ 76,934,254 $27,997,183 $19,657,268 $370,150,026 - ---------------------------------------------------------------------------------------------------------------------------------
PUT VT PIMCO GLOBAL HLTH PUT VT PUT VT DISC VIT ALL ASSET, CARE, INTL EQ, VISTA, ASSET ALLOC, YEAR ENDED DEC. 31, 2009 (CONTINUED) ADVISOR CL CL IB CL IB CL IB AGGR INVESTMENT INCOME Dividend income $ 74,841,194 $2,890,642 $ -- $ -- $ -- Variable account expenses 10,070,375 213,815 291,880 234,099 118,653 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 64,770,819 2,676,827 (291,880) (234,099) (118,653) - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 335,511,201 6,301,149 8,923,631 6,372,430 3,170,961 Cost of investments sold 384,410,558 6,779,556 13,296,480 12,242,227 3,161,780 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (48,899,357) (478,407) (4,372,849) (5,869,797) 9,181 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 186,231,108 3,326,109 11,638,232 15,114,482 3,541,173 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 137,331,751 2,847,702 7,265,383 9,244,685 3,550,354 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $202,102,570 $5,524,529 $ 6,973,503 $ 9,010,586 $3,431,701 - ---------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 12 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF OPERATIONS
DISC DISC DISC DISC VP DAVIS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, NY VENTURE, YEAR ENDED DEC. 31, 2009 (CONTINUED) CONSERV MOD MOD AGGR MOD CONSERV CL 3 INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ -- $ -- Variable account expenses 275,208 501,654 328,141 313,165 9,602,379 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (275,208) (501,654) (328,141) (313,165) (9,602,379) - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 15,899,380 13,394,794 12,013,242 8,475,792 115,888,817 Cost of investments sold 15,619,059 14,286,548 12,366,338 8,550,776 130,719,745 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 280,321 (891,754) (353,096) (74,984) (14,830,928) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 4,873,371 12,661,873 9,250,822 6,965,312 365,129,530 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 5,153,692 11,770,119 8,897,726 6,890,328 350,298,602 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 4,878,484 $11,268,465 $ 8,569,585 $6,577,163 $340,696,223 - ---------------------------------------------------------------------------------------------------------------------------------
VP GS VP PTNRS RVS VP RVS VP RVS VP MID CAP VAL, SM CAP VAL, BAL, CASH DIV YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 MGMT, CL 3 BOND, CL 3 INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ 719,234 $157,729,719 Variable account expenses 98,184 8,045,658 2,476,443 8,923,010 35,205,378 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (98,184) (8,045,658) (2,476,443) (8,203,776) 122,524,341 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 3,191,218 102,711,181 62,418,736 765,173,507 578,191,962 Cost of investments sold 4,776,150 124,156,736 84,705,680 765,013,424 587,890,480 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (1,584,932) (21,445,555) (22,286,944) 160,083 (9,698,518) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 5,098,851 315,695,353 80,267,710 863,327 347,434,702 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 3,513,919 294,249,798 57,980,766 1,023,410 337,736,184 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 3,415,735 $286,204,140 $ 55,504,323 $ (7,180,366) $460,260,525 - ---------------------------------------------------------------------------------------------------------------------------------
RVS VP RVS VP RVS VP RVS VP GLOBAL RVS VP DIV EQ DYN GLOBAL INFLATION HI YIELD YEAR ENDED DEC. 31, 2009 (CONTINUED) INC, CL 3 EQ, CL 3 BOND, CL 3 PROT SEC, CL 3 BOND, CL 3 INVESTMENT INCOME Dividend income $ -- $ -- $ 23,351,342 $103,558,609 $ 48,879,456 Variable account expenses 20,498,525 4,081,507 12,031,501 11,089,903 4,464,690 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (20,498,525) (4,081,507) 11,319,841 92,468,706 44,414,766 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 278,395,039 91,891,002 228,600,212 39,959,352 85,662,962 Cost of investments sold 354,652,582 156,838,392 230,917,926 40,466,873 96,254,324 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (76,257,543) (64,947,390) (2,317,714) (507,521) (10,591,362) Distributions from capital gains -- -- -- 51,598 -- Net change in unrealized appreciation or depreciation of investments 689,203,430 153,856,250 115,381,226 (19,359,768) 163,884,654 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 612,945,887 88,908,860 113,063,512 (19,815,691) 153,293,292 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $592,447,362 $ 84,827,353 $124,383,353 $ 72,653,015 $197,708,058 - ---------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 13 STATEMENTS OF OPERATIONS
RVS VP RVS VP RVS VP RVS VP RVS VP INC MID CAP MID CAP S&P 500, SHORT YEAR ENDED DEC. 31, 2009 (CONTINUED) OPP, CL 3 GRO, CL 3 VAL, CL 3 CL 3 DURATION, CL 3 INVESTMENT INCOME Dividend income $ 47,817,177 $ -- $ -- $ -- $ 11,117,888 Variable account expenses 9,735,437 1,003,663 1,960,228 1,173,407 3,177,949 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 38,081,740 (1,003,663) (1,960,228) (1,173,407) 7,939,939 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 47,815,322 15,294,084 98,877,264 28,021,847 106,839,620 Cost of investments sold 52,690,060 20,330,511 163,010,996 34,572,974 108,580,565 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (4,874,738) (5,036,427) (64,133,732) (6,551,127) (1,740,945) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 289,109,296 52,849,944 133,998,190 38,794,603 9,874,729 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 284,234,558 47,813,517 69,864,458 32,243,476 8,133,784 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $322,316,298 $46,809,854 $ 67,904,230 $31,070,069 $ 16,073,723 - ---------------------------------------------------------------------------------------------------------------------------------
SEL SEL VP SEL VP THDL VP THDL VP VP LG CAP SM CAP EMER INTL YEAR ENDED DEC. 31, 2009 (CONTINUED) GRO, CL 3 VAL, CL 3 VAL, CL 3 MKTS, CL 3 OPP, CL 3 INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ 2,164,010 $ 2,319,313 Variable account expenses 1,198,578 89,110 437,572 5,523,565 1,541,024 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (1,198,578) (89,110) (437,572) (3,359,555) 778,289 - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 33,257,395 2,656,070 11,985,564 341,897,181 37,152,293 Cost of investments sold 54,869,229 3,913,288 20,260,719 423,548,858 47,325,026 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (21,611,834) (1,257,218) (8,275,155) (81,651,677) (10,172,733) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 65,311,646 3,727,958 25,589,634 405,264,252 43,374,939 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 43,699,812 2,470,740 17,314,479 323,612,575 33,202,206 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 42,501,234 $ 2,381,630 $16,876,907 $320,253,020 $ 33,980,495 - ---------------------------------------------------------------------------------------------------------------------------------
VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL MID CAP GRO, WANGER WANGER YEAR ENDED DEC. 31, 2009 (CONTINUED) CL II REAL EST, CL II CL II INTL USA INVESTMENT INCOME Dividend income $ 30,298,265 $ 48,245 $ -- $ 25,335,904 $ -- Variable account expenses 6,080,899 2,274,817 326,427 6,191,065 5,504,013 - --------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 24,217,366 (2,226,572) (326,427) 19,144,839 (5,504,013) - --------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 270,974,044 115,096,898 7,650,227 104,604,197 99,982,181 Cost of investments sold 400,942,366 163,882,982 13,129,148 125,629,402 126,878,286 - --------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (129,968,322) (48,786,084) (5,478,921) (21,025,205) (26,896,105) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 257,412,229 135,827,610 21,516,169 276,679,585 255,617,339 - --------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 127,443,907 87,041,526 16,037,248 255,654,380 228,721,234 - --------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 151,661,273 $ 84,814,954 $15,710,821 $274,799,219 $223,217,221 - ---------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 14 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF OPERATIONS
WF ADV WF ADV WF ADV WF ADV VT INDEX VT VT VT YEAR ENDED DEC. 31, 2009 (CONTINUED) ASSET ALLOC INTL CORE OPP SM CAP GRO INVESTMENT INCOME Dividend income $ 825,491 $ 208,042 $ -- $ -- Variable account expenses 352,130 58,385 360,099 571,333 - -------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 473,361 149,657 (360,099) (571,333) - -------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 12,670,072 1,781,128 9,438,155 9,170,652 Cost of investments sold 17,352,445 3,071,430 14,713,518 14,583,274 - -------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (4,682,373) (1,290,302) (5,275,363) (5,412,622) Distributions from capital gains -- -- -- -- Net change in unrealized appreciation or depreciation of investments 9,125,744 1,821,933 21,395,093 32,780,362 - -------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 4,443,371 531,631 16,119,730 27,367,740 - -------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 4,916,732 $ 681,288 $15,759,631 $26,796,407 - --------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 15 STATEMENTS OF CHANGES IN NET ASSETS
INVESCO INVESCO INVESCO INVESCO INVESCO VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, VI GLOBAL HLTH, YEAR ENDED DEC. 31, 2009 SER II SER II SER I SER I SER II OPERATIONS Investment income (loss) -- net $ (552,616) $ (264,934) $ (47,684) $ 316,988 $ (152,640) Net realized gain (loss) on sales of investments (5,572,143) (3,935,081) (89,725) (4,321,938) (1,489,256) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 23,330,361 14,524,850 2,086,156 7,376,218 6,527,759 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 17,205,602 10,324,835 1,948,747 3,371,268 4,885,863 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,712,109 873,334 131,490 358,052 927,327 Net transfers(1) (8,453,732) (5,093,513) (870,546) 1,343,659 1,216,565 Transfers for policy loans 10,470 9,686 3,761 10,083 (7,670) Adjustments to net assets allocated to contracts in payment period (8,848) (3,089) (1,197) (372) 794 Contract charges (365,768) (25,274) (6,293) (12,573) (17,440) Contract terminations: Surrender benefits (4,414,512) (1,522,090) (359,479) (977,788) (1,032,948) Death benefits (696,294) (323,407) (70,748) (110,561) (155,924) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (12,216,575) (6,084,353) (1,173,012) 610,500 930,704 - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 99,171,829 29,143,340 5,631,512 10,755,490 17,563,978 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $104,160,856 $33,383,822 $ 6,407,247 $14,737,258 $23,380,545 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 139,781,286 36,124,153 7,742,275 25,118,996 21,603,800 Contract purchase payments 2,400,730 1,064,035 161,210 854,920 1,038,017 Net transfers(1) (12,050,025) (5,583,200) (1,138,661) 3,687,670 1,491,463 Transfers for policy loans 15,707 10,865 4,496 24,351 (7,789) Contract charges (495,405) (28,009) (7,504) (28,606) (19,933) Contract terminations: Surrender benefits (5,995,182) (1,600,041) (439,046) (2,176,049) (1,178,284) Death benefits (950,939) (343,847) (87,189) (276,718) (166,871) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 122,706,172 29,643,956 6,235,581 27,204,564 22,760,403 - --------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 16 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
INVESCO INVESCO AB VPS AB VPS AB VPS VI INTL GRO, VI TECH, GLOBAL THEMATIC GRO & INC, INTL VAL, YEAR ENDED DEC. 31, 2009 (CONTINUED) SER II SER I GRO, CL B CL B CL B OPERATIONS Investment income (loss) -- net $ 3,645,453 $ (174,465) $ (111,610) $ 3,258,962 $ (330,619) Net realized gain (loss) on sales of investments (14,955,850) (540,381) (606,972) (17,421,654) (242,699,107) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 196,856,943 9,879,261 5,777,996 35,443,487 444,152,316 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 185,546,546 9,164,415 5,059,414 21,280,795 201,122,590 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 98,838,649 353,513 985,340 2,972,730 68,004,011 Net transfers(1) 45,595,755 4,666,749 4,746,354 (19,956,545) (386,003,689) Transfers for policy loans 19,914 7,114 46 59,124 77,934 Adjustments to net assets allocated to contracts in payment period 34,271 710 53,096 (23,047) (32,717) Contract charges (2,762,858) (60,057) (11,822) (113,546) (2,199,705) Contract terminations: Surrender benefits (17,344,547) (1,047,745) (526,484) (6,940,999) (30,517,203) Death benefits (3,466,091) (221,433) (92,649) (963,351) (5,876,984) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 120,915,093 3,698,851 5,153,881 (24,965,634) (356,548,353) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 461,509,291 15,360,075 7,758,324 131,669,325 803,094,964 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $767,970,930 $28,223,341 $17,971,619 $127,984,486 $ 647,669,201 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 537,766,644 32,200,674 10,969,877 166,185,303 949,299,324 Contract purchase payments 107,607,053 610,358 1,093,975 3,744,311 106,732,637 Net transfers(1) 46,928,415 7,373,502 5,340,956 (24,569,997) (494,939,271) Transfers for policy loans 20,855 11,641 394 69,876 49,277 Contract charges (2,920,526) (101,111) (13,469) (139,235) (2,841,346) Contract terminations: Surrender benefits (17,432,382) (1,730,886) (603,842) (8,377,676) (28,054,317) Death benefits (3,626,240) (390,772) (99,306) (1,150,330) (6,146,635) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 668,343,819 37,973,406 16,688,585 135,762,252 524,099,669 - --------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 17 STATEMENTS OF CHANGES IN NET ASSETS
AC VP AC VP AC VP AC VP CALVERT INTL, MID CAP VAL, ULTRA, VAL, VS YEAR ENDED DEC. 31, 2009 (CONTINUED) CL II CL II CL II CL II SOCIAL BAL OPERATIONS Investment income (loss) -- net $ 631,870 $ 5,615,722 $ (163,269) $ 8,631,448 $ 320,555 Net realized gain (loss) on sales of investments (2,459,077) (22,441,773) (2,848,783) (19,470,877) (1,818,282) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 16,870,540 63,020,683 9,632,641 43,667,336 7,185,010 - ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 15,043,333 46,194,632 6,620,589 32,827,907 5,687,283 - ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 1,015,452 31,224,291 720,607 6,117,891 744,727 Net transfers(1) (9,026,555) (54,126,313) (1,271,973) (14,473,405) (3,426,846) Transfers for policy loans 223 (20,398) (8,173) 54,011 23,552 Adjustments to net assets allocated to contracts in payment period 15,941 7,249 7,763 (143,926) (7,233) Contract charges (48,269) (866,564) (25,200) (172,480) (27,893) Contract terminations: Surrender benefits (3,190,905) (5,334,037) (1,143,669) (11,559,375) (1,442,336) Death benefits (341,344) (1,155,107) (158,628) (2,032,581) (278,791) - ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (11,575,457) (30,270,879) (1,879,273) (22,209,865) (4,414,820) - ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 56,141,876 187,536,301 21,628,589 195,490,501 26,299,083 - ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $ 59,609,752 $203,460,054 $26,369,905 $206,108,543 $27,571,546 - ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 60,220,944 242,954,980 31,148,264 188,664,402 33,641,067 Contract purchase payments 990,239 36,658,694 931,345 6,707,931 879,962 Net transfers(1) (9,448,096) (65,255,435) (1,860,766) (12,927,452) (4,124,819) Transfers for policy loans 2,266 (23,959) (11,286) 45,904 29,932 Contract charges (48,360) (1,064,132) (33,904) (166,706) (33,160) Contract terminations: Surrender benefits (3,087,308) (6,929,861) (1,516,388) (11,000,983) (1,701,743) Death benefits (338,800) (1,477,106) (209,589) (1,944,911) (325,388) - ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 48,290,885 204,863,181 28,447,676 169,378,185 28,365,851 - ------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 18 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
COL COL MARSICO CS EV VT EG VA MARSICO GRO, INTL OPP, COMMODITY FLOATING-RATE FUNDAMENTAL YEAR ENDED DEC. 31, 2009 (CONTINUED) VS CL A VS CL B RETURN INC LG CAP, CL 2 OPERATIONS Investment income (loss) -- net $ (636,856) $ 677,244 $ 8,116,983 $ 26,328,373 $ 72,952 Net realized gain (loss) on sales of investments (15,767,371) (14,807,858) (3,401,625) (7,220,656) (784,664) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 356,601,733 35,247,373 8,523,612 198,712,069 8,956,333 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 340,197,506 21,116,759 13,238,970 217,819,786 8,244,621 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 218,405,347 3,000,510 3,617,445 111,928,449 2,293,434 Net transfers(1) 242,957,334 (10,886,155) 18,475,133 153,556,412 6,506,963 Transfers for policy loans (76,420) (838) (8,107) (61,086) (1,987) Adjustments to net assets allocated to contracts in payment period (29,425) (49,831) 8,002 (63,434) 71,606 Contract charges (5,946,947) (55,336) (50,436) (2,851,337) (19,657) Contract terminations: Surrender benefits (37,839,442) (3,064,098) (4,222,306) (24,776,426) (1,045,949) Death benefits (7,891,422) (584,529) (502,449) (5,532,118) (390,400) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 409,579,025 (11,640,277) 17,317,282 232,200,460 7,414,010 - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 963,953,201 69,405,070 58,690,964 434,438,748 21,027,833 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,713,729,732 $ 78,881,552 $ 89,247,216 $884,458,994 $36,686,464 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,298,130,787 103,623,136 78,359,789 581,542,099 26,240,985 Contract purchase payments 268,218,501 3,692,483 4,532,105 118,075,823 2,491,225 Net transfers(1) 330,178,071 (16,624,986) 23,778,039 163,400,576 6,937,462 Transfers for policy loans (86,524) 425 (9,305) (60,880) (1,694) Contract charges (7,374,951) (73,320) (64,750) (2,988,034) (21,937) Contract terminations: Surrender benefits (47,732,937) (4,015,015) (5,385,713) (25,876,119) (1,147,721) Death benefits (10,006,182) (783,233) (657,307) (5,815,707) (435,957) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,831,326,765 85,819,490 100,552,858 828,277,758 34,062,363 - --------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 19 STATEMENTS OF CHANGES IN NET ASSETS
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 2 SERV CL 2 SERV CL 2 SERV CL 2 SERV CL 2 OPERATIONS Investment income (loss) -- net $ (1,795,392) $ 236,884 $ (47,009) $ (4,553,859) $ 1,170,655 Net realized gain (loss) on sales of investments 4,093,136 (352,979,373) (14,714,291) (108,250,721) (11,144,998) Distributions from capital gains -- 193,105 -- 4,714,168 384,952 Net change in unrealized appreciation or depreciation of investments 127,731,038 584,421,899 51,670,655 419,401,944 35,438,317 - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 130,028,782 231,872,515 36,909,355 311,311,532 25,848,926 - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 67,703,389 106,140,699 3,086,539 92,913,877 3,935,209 Net transfers(1) 533,788,776 (531,127,441) (27,411,536) (283,420,845) (18,146,050) Transfers for policy loans 488 (22,265) 71,271 37,346 25,682 Adjustments to net assets allocated to contracts in payment period 109,568 39,918 (132,768) (71,901) 8,343 Contract charges (1,658,931) (2,997,515) (158,180) (2,785,054) (101,749) Contract terminations: Surrender benefits (12,051,111) (30,319,995) (9,394,187) (40,005,053) (6,379,976) Death benefits (1,949,339) (6,294,341) (1,564,712) (7,287,776) (890,311) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 585,942,840 (464,580,940) (35,503,573) (240,619,406) (21,548,852) - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 36,329,913 1,023,889,930 169,597,317 965,638,466 125,025,951 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $752,301,535 $ 791,181,505 $171,003,099 $1,036,330,592 $129,326,025 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 36,965,891 1,455,856,516 209,939,118 913,299,589 123,288,887 Contract purchase payments 81,505,259 142,228,951 3,653,759 106,280,016 4,432,989 Net transfers(1) 673,475,027 (703,614,876) (32,533,342) (275,614,062) (17,658,085) Transfers for policy loans (3,462) (18,849) 85,379 6,153 27,857 Contract charges (1,874,171) (4,057,295) (185,973) (2,724,953) (99,502) Contract terminations: Surrender benefits (12,314,599) (40,363,388) (10,926,787) (29,655,641) (5,940,658) Death benefits (2,081,526) (8,335,315) (1,850,907) (5,908,768) (871,284) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 775,672,419 841,695,744 168,181,247 705,682,334 103,180,204 - ---------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 20 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
FTVIPT FRANK FTVIPT FRANK FTVIPT GS VIT GS VIT GLOBAL REAL EST, SM CAP VAL, MUTUAL SHARES MID CAP VAL, STRUCTD U.S. YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 2 CL 2 SEC, CL 2 INST EQ, INST OPERATIONS Investment income (loss) -- net $ 18,314,781 $ 1,318,826 $ 1,651,716 $ 2,614,480 $ 1,910,596 Net realized gain (loss) on sales of investments (47,085,443) (11,532,809) (13,995,751) (39,538,799) (18,971,584) Distributions from capital gains -- 7,642,928 -- -- -- Net change in unrealized appreciation or depreciation of investments 52,846,215 43,213,432 48,608,825 119,134,008 47,711,018 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 24,075,553 40,642,377 36,264,790 82,209,689 30,650,030 - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 5,006,870 5,078,813 5,516,800 4,633,242 3,936,669 Net transfers(1) (24,975,597) (24,785,989) (21,570,462) (51,657,316) (25,762,079) Transfers for policy loans 122,912 26,890 42,154 82,328 45,777 Adjustments to net assets allocated to contracts in payment period (58,588) (44,461) (33,530) (5,951) (78,646) Contract charges (146,779) (128,526) (136,511) (345,677) (376,083) Contract terminations: Surrender benefits (9,067,317) (9,307,303) (8,734,631) (17,933,706) (9,043,125) Death benefits (1,526,290) (1,413,171) (1,616,085) (2,429,890) (1,625,734) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (30,644,789) (30,573,747) (26,532,265) (67,656,970) (32,903,221) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 177,416,087 173,195,221 169,266,747 312,183,554 182,460,353 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $170,846,851 $183,263,851 $178,999,272 $326,736,273 $180,207,162 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 143,021,012 128,040,351 186,091,220 191,346,086 255,181,535 Contract purchase payments 5,868,465 5,251,877 6,293,726 2,796,870 5,485,438 Net transfers(1) (19,832,923) (16,940,874) (23,123,861) (30,390,275) (35,773,647) Transfers for policy loans 90,497 14,954 40,737 49,585 64,695 Contract charges (128,401) (93,668) (143,417) (199,849) (506,769) Contract terminations: Surrender benefits (7,778,014) (6,419,428) (8,793,218) (10,798,973) (12,140,042) Death benefits (1,286,195) (954,646) (1,652,196) (1,414,048) (2,296,624) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 119,954,441 108,898,566 158,712,991 151,389,396 210,014,586 - --------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 21 STATEMENTS OF CHANGES IN NET ASSETS
JANUS ASPEN JANUS ASPEN JANUS ASPEN MFS MFS GLOBAL JANUS, OVERSEAS, INV GRO STOCK, NEW DIS, YEAR ENDED DEC. 31, 2009 (CONTINUED) TECH, SERV SERV SERV SERV CL SERV CL OPERATIONS Investment income (loss) -- net $ (134,539) $ (5,935,019) $ (582,777) $ (313,065) $ (361,694) Net realized gain (loss) on sales of investments (1,114,032) (14,824,138) (2,863,226) (2,237,799) (3,539,235) Distributions from capital gains -- -- 3,684,756 -- -- Net change in unrealized appreciation or depreciation of investments 8,155,612 366,845,252 71,467,925 25,721,007 24,075,207 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 6,907,041 346,086,095 71,706,678 23,170,143 20,174,278 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 343,279 196,595,671 1,967,193 2,505,556 776,346 Net transfers(1) 3,623,220 178,714,104 (7,896,575) 7,068,142 (1,899,757) Transfers for policy loans 16,649 (60,390) 32,502 31,583 21,604 Adjustments to net assets allocated to contracts in payment period 57,795 5,014 (88,708) 30,059 (4,362) Contract charges (14,219) (5,401,166) (84,656) (59,315) (39,955) Contract terminations: Surrender benefits (970,444) (28,551,067) (7,580,842) (4,214,452) (2,600,108) Death benefits (136,989) (6,105,534) (825,531) (597,352) (366,061) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 2,919,291 335,196,632 (14,476,617) 4,764,221 (4,112,293) - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 11,997,932 773,445,434 103,230,964 60,177,703 36,302,724 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $21,824,264 $1,454,728,161 $160,461,025 $ 88,112,067 $52,364,709 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 41,021,714 1,226,178,470 126,354,829 119,102,705 59,530,900 Contract purchase payments 951,058 277,372,407 1,774,307 3,564,389 1,054,385 Net transfers(1) 8,902,632 263,736,061 (10,087,576) 10,523,749 (3,489,206) Transfers for policy loans 50,689 (80,070) 37,772 59,164 36,789 Contract charges (38,006) (7,581,864) (74,989) (101,564) (53,549) Contract terminations: Surrender benefits (2,655,545) (39,550,723) (6,507,426) (6,827,256) (3,389,355) Death benefits (359,110) (8,593,547) (716,052) (1,016,257) (473,343) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 47,873,432 1,711,480,734 110,780,865 125,304,930 53,216,621 - -------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 22 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
MFS NB AMT OPPEN OPPEN OPPEN UTILITIES, INTL, GLOBAL SEC MAIN ST SM CAP GLOBAL STRATEGIC YEAR ENDED DEC. 31, 2009 (CONTINUED) SERV CL CL S VA, SERV VA, SERV INC VA, SERV OPERATIONS Investment income (loss) -- net $ 8,193,950 $ 7,091,774 $ 939,588 $ (161,775) $ (15,844,599) Net realized gain (loss) on sales of investments (14,271,228) (15,014,693) (8,128,859) (6,300,307) (25,142,736) Distributions from capital gains -- -- 1,911,246 -- 1,678,820 Net change in unrealized appreciation or depreciation of investments 64,272,529 84,857,173 33,275,208 26,119,350 409,458,541 - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 58,195,251 76,934,254 27,997,183 19,657,268 370,150,026 - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 6,064,675 45,215,574 3,464,049 2,480,270 279,415,438 Net transfers(1) (26,424,009) (21,702,697) (8,361,153) (6,749,153) 4,385,281 Transfers for policy loans (39,871) (12,969) (23,149) 22,394 (87,100) Adjustments to net assets allocated to contracts in payment period (68,956) (2,147) 41,166 (15,440) (352,780) Contract charges (173,996) (1,286,407) (74,641) (53,276) (7,485,305) Contract terminations: Surrender benefits (11,266,280) (6,575,925) (4,512,683) (3,102,442) (98,091,702) Death benefits (2,067,554) (1,486,159) (941,929) (484,434) (17,745,503) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (33,975,991) 14,149,270 (10,408,340) (7,902,081) 160,038,329 - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 212,724,142 218,421,584 84,226,825 61,768,053 2,075,960,187 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $236,943,402 $309,505,108 $101,815,668 $73,523,240 $2,606,148,542 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 163,176,639 358,115,808 93,205,980 76,585,330 2,013,494,974 Contract purchase payments 4,948,632 64,594,356 3,724,004 3,143,605 263,869,090 Net transfers(1) (19,250,030) (29,705,511) (9,114,970) (7,958,487) 3,026,213 Transfers for policy loans (26,166) (15,745) (15,877) 31,188 (81,761) Contract charges (125,895) (1,879,693) (75,988) (61,081) (6,940,735) Contract terminations: Surrender benefits (7,594,238) (9,790,393) (4,437,523) (3,406,621) (88,670,241) Death benefits (1,500,577) (2,208,466) (977,113) (557,048) (16,313,095) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 139,628,365 379,110,356 82,308,513 67,776,886 2,168,384,445 - ---------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 23 STATEMENTS OF CHANGES IN NET ASSETS
PIMCO PUT VT PUT VT PUT VT DISC VIT ALL ASSET, GLOBAL HLTH CARE, INTL EQ, VISTA, ASSET ALLOC, YEAR ENDED DEC. 31, 2009 (CONTINUED) ADVISOR CL CL IB CL IB CL IB AGGR OPERATIONS Investment income (loss) -- net $ 64,770,819 $ 2,676,827 $ (291,880) $ (234,099) $ (118,653) Net realized gain (loss) on sales of investments (48,899,357) (478,407) (4,372,849) (5,869,797) 9,181 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 186,231,108 3,326,109 11,638,232 15,114,482 3,541,173 - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 202,102,570 5,524,529 6,973,503 9,010,586 3,431,701 - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 182,656,126 447,886 593,132 786,869 1,277,682 Net transfers(1) (172,168,472) (3,236,550) (6,346,826) (4,577,310) 7,374,049 Transfers for policy loans (122,776) 15,006 17,397 34,553 5,531 Adjustments to net assets allocated to contracts in payment period 102,936 (6,585) (2,592) (4,658) 97,566 Contract charges (4,992,541) (26,145) (29,376) (33,934) (11,832) Contract terminations: Surrender benefits (32,295,549) (1,551,571) (2,034,844) (1,683,802) (451,051) Death benefits (7,588,359) (167,492) (288,030) (212,198) -- - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (34,408,635) (4,525,451) (8,091,139) (5,690,480) 8,291,945 - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,032,082,114 25,091,627 37,136,955 27,627,505 8,340,805 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,199,776,049 $26,090,705 $36,019,319 $30,947,611 $20,064,451 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,091,785,066 27,807,296 37,946,874 46,674,073 11,766,349 Contract purchase payments 179,579,273 465,345 594,496 1,210,540 1,694,750 Net transfers(1) (172,489,339) (3,346,971) (6,418,134) (7,038,658) 10,041,638 Transfers for policy loans (114,380) 15,540 17,846 55,117 7,195 Contract charges (4,917,370) (27,213) (29,308) (52,634) (15,427) Contract terminations: Surrender benefits (31,789,893) (1,586,653) (2,021,287) (2,558,053) (580,614) Death benefits (7,545,003) (174,490) (292,843) (327,706) -- - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,054,508,354 23,152,854 29,797,644 37,962,679 22,913,891 - ---------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 24 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
DISC DISC DISC DISC VP DAVIS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, NY VENTURE, YEAR ENDED DEC. 31, 2009 (CONTINUED) CONSERV MOD MOD AGGR MOD CONSERV CL 3 OPERATIONS Investment income (loss) -- net $ (275,208) $ (501,654) $ (328,141) $ (313,165) $ (9,602,379) Net realized gain (loss) on sales of investments 280,321 (891,754) (353,096) (74,984) (14,830,928) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 4,873,371 12,661,873 9,250,822 6,965,312 365,129,530 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 4,878,484 11,268,465 8,569,585 6,577,163 340,696,223 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 3,648,730 6,280,973 3,003,388 3,060,903 193,811,413 Net transfers(1) 14,149,239 33,850,556 14,897,998 23,043,759 387,884,579 Transfers for policy loans 1,887 (72,056) 24,155 (6,326) (57,059) Adjustments to net assets allocated to contracts in payment period 97,460 (26,476) 329,293 (818) (167,583) Contract charges (21,462) (46,451) (30,608) (22,762) (5,252,706) Contract terminations: Surrender benefits (3,305,645) (3,742,953) (1,623,616) (1,760,464) (27,276,922) Death benefits (280,018) (579,914) (1,146) (82,003) (5,579,903) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 14,290,191 35,663,679 16,599,464 24,232,289 543,361,819 - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 21,357,801 37,774,059 24,460,533 20,077,570 634,860,612 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $40,526,476 $84,706,203 $49,629,582 $50,887,022 $1,518,918,654 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 25,426,346 49,366,147 33,063,290 25,257,929 917,373,476 Contract purchase payments 4,022,471 7,745,946 3,847,358 3,597,553 254,298,809 Net transfers(1) 16,118,249 41,233,188 20,119,570 27,698,214 563,251,468 Transfers for policy loans 2,525 (88,205) 30,461 (7,908) (69,745) Contract charges (23,987) (57,143) (39,247) (26,753) (6,876,184) Contract terminations: Surrender benefits (3,758,213) (4,565,238) (2,022,705) (2,081,766) (35,608,041) Death benefits (300,984) (739,687) (1,323) (97,496) (7,407,159) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 41,486,407 92,895,008 54,997,404 54,339,773 1,684,962,624 - -------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 25 STATEMENTS OF CHANGES IN NET ASSETS
VP GS VP PTNRS RVS VP RVS VP RVS VP MID CAP VAL, SM CAP VAL, BAL, CASH DIV YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 MGMT, CL 3 BOND, CL 3 OPERATIONS Investment income (loss) -- net $ (98,184) $ (8,045,658) $ (2,476,443) $ (8,203,776) $ 122,524,341 Net realized gain (loss) on sales of investments (1,584,932) (21,445,555) (22,286,944) 160,083 (9,698,518) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 5,098,851 315,695,353 80,267,710 863,327 347,434,702 - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 3,415,735 286,204,140 55,504,323 (7,180,366) 460,260,525 - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 413,786 141,097,176 4,425,409 111,309,005 534,815,810 Net transfers(1) (1,378,025) (52,221,515) 38,598,572 (585,789,438) 91,396,565 Transfers for policy loans 4,915 9,993 161,614 126,432 (19,836) Adjustments to net assets allocated to contracts in payment period (1,367) (140,262) (678,459) (381,892) (939,678) Contract charges (12,841) (4,130,032) (245,710) (685,096) (14,239,960) Contract terminations: Surrender benefits (614,869) (26,888,122) (23,786,790) (171,471,117) (172,084,203) Death benefits (109,630) (5,409,223) (4,283,391) (16,337,378) (36,430,179) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,698,031) 52,318,015 14,191,245 (663,229,484) 402,498,519 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 11,161,351 751,583,538 194,345,298 1,315,148,095 3,295,541,164 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $12,879,055 $1,090,105,693 $264,040,866 $ 644,738,245 $4,158,300,208 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 13,412,863 856,113,697 189,680,215 1,121,064,760 2,911,692,108 Contract purchase payments 463,931 178,338,447 4,384,134 102,188,492 488,736,740 Net transfers(1) (1,546,125) (56,014,627) 52,019,449 (508,068,806) 47,459,400 Transfers for policy loans 5,412 (588) 122,053 73,217 (40,839) Contract charges (14,372) (4,624,791) (234,261) (585,059) (12,341,133) Contract terminations: Surrender benefits (690,992) (25,260,483) (20,280,031) (146,217,563) (134,265,003) Death benefits (124,967) (5,578,856) (4,099,247) (14,026,899) (29,818,009) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 11,505,750 942,972,799 221,592,312 554,428,142 3,271,423,264 - ----------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 26 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
RVS VP RVS VP RVS VP RVS VP RVS VP DIV EQ DYN GLOBAL GLOBAL INFLATION HI YIELD YEAR ENDED DEC. 31, 2009 (CONTINUED) INC, CL 3 EQ, CL 3 BOND, CL 3 PROT SEC, CL 3 BOND, CL 3 OPERATIONS Investment income (loss) -- net $ (20,498,525) $ (4,081,507) $ 11,319,841 $ 92,468,706 $ 44,414,766 Net realized gain (loss) on sales of investments (76,257,543) (64,947,390) (2,317,714) (507,521) (10,591,362) Distributions from capital gains -- -- -- 51,598 -- Net change in unrealized appreciation or depreciation of investments 689,203,430 153,856,250 115,381,226 (19,359,768) 163,884,654 - ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 592,447,362 84,827,353 124,383,353 72,653,015 197,708,058 - ------------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 268,448,843 10,366,692 176,249,965 193,823,411 11,581,660 Net transfers(1) 105,137,049 (44,031,005) (17,016,350) 847,698,096 (6,607,633) Transfers for policy loans 341,739 1,064,518 (14,902) (36,371) 69,739 Adjustments to net assets allocated to contracts in payment period (17,368) (926,944) (396,021) (178,250) (336,873) Contract charges (7,595,119) (974,361) (4,804,027) (5,122,580) (323,535) Contract terminations: Surrender benefits (100,624,477) (41,286,507) (57,605,911) (42,222,133) (39,757,216) Death benefits (16,696,537) (4,793,771) (11,474,401) (8,569,293) (7,041,964) - ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions 248,994,130 (80,581,378) 84,938,353 985,392,880 (42,415,822) - ------------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 1,884,808,320 447,980,819 1,219,671,776 727,423,402 382,399,154 - ------------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $2,726,249,812 $452,226,794 $1,428,993,482 $1,785,469,297 $537,691,390 - ------------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 2,062,785,467 685,480,996 950,254,996 658,300,417 373,276,720 Contract purchase payments 351,804,290 15,592,874 151,307,717 171,729,059 9,922,731 Net transfers(1) 144,288,091 (72,271,312) (22,522,635) 749,263,374 294,262 Transfers for policy loans 287,067 1,534,351 (18,817) (31,663) 53,153 Contract charges (8,971,881) (1,502,258) (3,847,201) (4,505,352) (253,972) Contract terminations: Surrender benefits (94,456,321) (55,051,454) (39,832,521) (37,000,549) (29,900,721) Death benefits (17,011,042) (7,164,735) (8,499,488) (7,551,823) (5,391,841) - ------------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 2,438,725,671 566,618,462 1,026,842,051 1,530,203,463 348,000,332 - ------------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 27 STATEMENTS OF CHANGES IN NET ASSETS
RVS VP RVS VP RVS VP RVS VP RVS VP INC MID CAP MID CAP S&P 500, SHORT YEAR ENDED DEC. 31, 2009 (CONTINUED) OPP, CL 3 GRO, CL 3 VAL, CL 3 CL 3 DURATION, CL 3 OPERATIONS Investment income (loss) -- net $ 38,081,740 $ (1,003,663) $ (1,960,228) $ (1,173,407) $ 7,939,939 Net realized gain (loss) on sales of investments (4,874,738) (5,036,427) (64,133,732) (6,551,127) (1,740,945) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 289,109,296 52,849,944 133,998,190 38,794,603 9,874,729 - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 322,316,298 46,809,854 67,904,230 31,070,069 16,073,723 - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 180,961,005 3,489,270 24,105,329 4,596,308 19,730,459 Net transfers(1) 529,372,071 11,368,054 (89,329,966) (7,822,475) (28,023,624) Transfers for policy loans (65,936) 143,783 3,025 60,596 83,520 Adjustments to net assets allocated to contracts in payment period (64,478) (71,305) (14,037) (76,014) (78,935) Contract charges (4,758,862) (122,117) (709,168) (115,835) (246,445) Contract terminations: Surrender benefits (32,310,069) (10,412,358) (7,355,476) (8,336,902) (26,975,888) Death benefits (7,025,166) (1,141,397) (1,549,854) (1,300,040) (6,603,441) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 666,108,565 3,253,930 (74,850,147) (12,994,362) (42,114,354) - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 575,937,497 78,655,128 227,281,619 133,680,443 371,939,267 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,564,362,360 $128,718,912 $ 220,335,702 $151,756,150 $345,898,636 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 643,014,466 114,373,202 315,807,987 200,311,464 306,947,929 Contract purchase payments 165,997,714 3,907,246 34,543,046 6,313,633 18,063,103 Net transfers(1) 470,367,351 10,219,597 (120,351,036) (11,215,349) (22,360,068) Transfers for policy loans (55,406) 177,587 4,123 89,059 63,422 Contract charges (4,285,341) (141,800) (954,714) (166,958) (199,480) Contract terminations: Surrender benefits (28,252,815) (12,535,428) (8,952,766) (11,534,448) (21,858,805) Death benefits (6,298,180) (1,253,392) (1,920,220) (1,878,936) (5,307,373) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,240,487,789 114,747,012 218,176,420 181,918,465 275,348,728 - ----------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 28 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
SEL SEL VP SEL VP THDL VP THDL VP VP GRO, LG CAP SM CAP EMER INTL YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 VAL, CL 3 VAL, CL 3 MKTS, CL 3 OPP, CL 3 OPERATIONS Investment income (loss) -- net $ (1,198,578) $ (89,110) $ (437,572) $ (3,359,555) $ 778,289 Net realized gain (loss) on sales of investments (21,611,834) (1,257,218) (8,275,155) (81,651,677) (10,172,733) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 65,311,646 3,727,958 25,589,634 405,264,252 43,374,939 - ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 42,501,234 2,381,630 16,876,907 320,253,020 33,980,495 - ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 3,564,331 507,432 1,423,261 65,761,712 3,874,703 Net transfers(1) (22,322,492) 2,067,361 (6,625,317) (210,383,860) (10,566,665) Transfers for policy loans 152,928 3,215 30,831 139,408 162,858 Adjustments to net assets allocated to contracts in payment period (46,491) (1,401) (44,034) 258,893 106,358 Contract charges (177,091) (9,772) (50,336) (2,052,532) (141,633) Contract terminations: Surrender benefits (8,258,876) (634,568) (3,600,435) (31,908,000) (18,858,255) Death benefits (1,347,845) (187,841) (409,376) (3,536,131) (1,764,975) - ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (28,435,536) 1,744,426 (9,275,406) (181,720,510) (27,187,609) - ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 141,101,956 8,932,103 51,441,386 518,628,043 156,585,265 - ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $155,167,654 $13,058,159 $59,042,887 $ 657,160,553 $163,378,151 - ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 326,510,210 11,453,724 51,553,089 506,028,130 184,146,213 Contract purchase payments 7,045,275 635,452 1,502,844 61,956,469 4,452,625 Net transfers(1) (50,732,792) 2,351,549 (6,212,974) (180,497,217) (13,821,962) Transfers for policy loans 344,761 3,862 30,943 101,166 177,541 Contract charges (361,596) (11,992) (46,973) (1,725,283) (158,431) Contract terminations: Surrender benefits (16,484,485) (753,533) (3,238,713) (21,711,111) (19,338,655) Death benefits (2,809,305) (232,157) (366,013) (2,679,860) (2,034,694) - ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 263,512,068 13,446,905 43,222,203 361,472,294 153,422,637 - -------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 29 STATEMENTS OF CHANGES IN NET ASSETS
VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL MID CAP GRO, WANGER WANGER YEAR ENDED DEC. 31, 2009 (CONTINUED) CL II REAL EST, CL II CL II INTL USA OPERATIONS Investment income (loss) -- net $ 24,217,366 $ (2,226,572) $ (326,427) $ 19,144,839 $ (5,504,013) Net realized gain (loss) on sales of investments (129,968,322) (48,786,084) (5,478,921) (21,025,205) (26,896,105) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 257,412,229 135,827,610 21,516,169 276,679,585 255,617,339 - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 151,661,273 84,814,954 15,710,821 274,799,219 223,217,221 - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 88,400,293 38,133,834 1,518,824 72,372,025 56,565,889 Net transfers(1) (208,655,125) (89,502,242) 2,784,545 34,461,137 (51,552,364) Transfers for policy loans (4,914) 3,311 (13,460) 23,027 54,005 Adjustments to net assets allocated to contracts in payment period 21,376 (26,215) 29,480 10,030 (156,771) Contract charges (2,959,949) (1,088,617) (28,565) (2,116,439) (1,695,123) Contract terminations: Surrender benefits (23,461,825) (7,394,245) (1,700,521) (28,516,988) (27,017,021) Death benefits (4,807,594) (1,422,698) (303,570) (4,014,030) (4,095,804) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (151,467,738) (61,296,872) 2,286,733 72,218,762 (27,897,189) - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 681,107,245 241,003,832 29,119,527 546,083,555 550,275,602 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 681,300,780 $ 264,521,914 $47,117,081 $893,101,536 $745,595,634 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 890,311,612 382,715,240 44,919,664 486,121,150 572,582,227 Contract purchase payments 123,646,333 56,982,252 1,793,414 74,568,276 71,497,300 Net transfers(1) (275,116,164) (125,439,763) 2,386,886 42,293,517 (40,870,469) Transfers for policy loans (4,329) 9,984 (13,941) 12,421 45,414 Contract charges (3,850,993) (1,618,018) (35,706) (1,885,022) (1,871,502) Contract terminations: Surrender benefits (28,447,872) (10,885,602) (2,121,818) (19,082,502) (23,544,045) Death benefits (6,110,204) (2,173,879) (395,429) (3,083,949) (3,849,326) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 700,428,383 299,590,214 46,533,070 578,943,891 573,989,599 - ---------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 30 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
WF ADV WF ADV WF ADV WF ADV VT INDEX VT VT VT YEAR ENDED DEC. 31, 2009 (CONTINUED) ASSET ALLOC INTL CORE OPP SM CAP GRO OPERATIONS Investment income (loss) -- net $ 473,361 $ 149,657 $ (360,099) $ (571,333) Net realized gain (loss) on sales of investments (4,682,373) (1,290,302) (5,275,363) (5,412,622) Distributions from capital gains -- -- -- -- Net change in unrealized appreciation or depreciation of investments 9,125,744 1,821,933 21,395,093 32,780,362 - ---------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 4,916,732 681,288 15,759,631 26,796,407 - ---------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 626,419 101,138 1,471,978 3,182,460 Net transfers(1) (8,523,514) (818,137) (5,285,110) 7,750,193 Transfers for policy loans 7,346 4,051 15,174 (2,583) Adjustments to net assets allocated to contracts in payment period (8,813) (15,704) (1,723) 34,230 Contract charges (36,115) (5,611) (38,689) (45,747) Contract terminations: Surrender benefits (2,990,837) (407,753) (2,264,374) (3,115,446) Death benefits (609,771) (101,921) (347,323) (627,875) - ---------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (11,535,285) (1,243,937) (6,450,067) 7,175,232 - ---------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 47,942,529 7,813,762 38,279,148 50,668,365 - ---------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 41,323,976 $ 7,251,113 $47,588,712 $84,640,004 - ---------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 49,869,060 9,679,627 45,513,898 65,402,599 Contract purchase payments 656,607 129,491 1,601,807 3,408,574 Net transfers(1) (9,224,322) (1,099,931) (5,659,705) 7,559,651 Transfers for policy loans 6,475 4,746 15,613 (3,746) Contract charges (38,318) (7,314) (39,188) (49,793) Contract terminations: Surrender benefits (3,076,115) (520,771) (2,259,191) (3,323,571) Death benefits (671,038) (126,691) (357,533) (653,121) - ---------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 37,522,349 8,059,157 38,815,701 72,340,593 - ----------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 31 STATEMENTS OF CHANGES IN NET ASSETS
INVESCO VI INVESCO VI INVESCO VI INVESCO VI INVESCO VI CAP APPR, CAP DEV, DYN, FIN SERV, GLOBAL HLTH CARE, YEAR ENDED DEC. 31, 2008 SER II SER II SER I SER I SER II OPERATIONS Investment income (loss) -- net $ (1,292,973) $ (459,754) $ (87,674) $ 361,593 $ (175,425) Net realized gain (loss) on sales of investments 1,191,086 (343,627) 875,893 (2,008,552) (322,141) Distributions from capital gains -- 5,996,103 -- 1,440,571 4,617,654 Net change in unrealized appreciation or depreciation of investments (79,900,125) (36,080,606) (7,062,572) (13,737,719) (10,809,499) - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (80,002,012) (30,887,884) (6,274,353) (13,944,107) (6,689,411) - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 4,878,252 2,018,326 233,189 532,632 1,933,226 Net transfers(1) (22,897,465) (15,946,346) (2,937,594) 7,536,306 5,002,995 Transfers for policy loans 13,266 6,614 180 1,012 (1,004) Adjustments to net assets allocated to contracts in payment period (1,881) 4,021 (1,676) (665) 239 Contract charges (524,784) (38,606) (8,957) (15,709) (17,038) Contract terminations: Surrender benefits (7,710,927) (2,411,631) (671,224) (976,080) (1,005,490) Death benefits (1,171,935) (467,305) (48,683) (108,998) (160,011) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (27,415,474) (16,834,927) (3,434,765) 6,968,498 5,752,917 - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 206,589,315 76,866,151 15,340,630 17,731,099 18,500,472 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 99,171,829 $ 29,143,340 $ 5,631,512 $ 10,755,490 $ 17,563,978 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 165,545,770 49,607,310 10,864,203 16,656,560 16,065,485 Contract purchase payments 4,879,165 1,827,671 211,525 726,313 1,842,950 Net transfers(1) (21,286,947) (12,950,614) (2,674,482) 9,207,543 4,903,368 Transfers for policy loans 18,291 4,151 39 3,009 (1,445) Contract charges (513,653) (31,691) (8,478) (21,174) (17,123) Contract terminations: Surrender benefits (7,685,284) (1,927,921) (594,614) (1,326,142) (1,025,817) Death benefits (1,176,056) (404,753) (55,918) (127,113) (163,618) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 139,781,286 36,124,153 7,742,275 25,118,996 21,603,800 - ---------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 32 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
INVESCO INVESCO AB VPS AB VPS AB VPS VI INTL GRO, VI TECH, GLOBAL THEMATIC GRO & INC, INTL VAL, YEAR ENDED DEC. 31, 2008 (CONTINUED) SER II SER I GRO, CL B CL B CL B OPERATIONS Investment income (loss) -- net $ (840,450) $ (201,490) $ (103,794) $ 2,142,434 $ (86,704) Net realized gain (loss) on sales of investments (1,854,572) 92,519 (746,338) (12,955,858) 1,532,880 Distributions from capital gains 8,565,475 -- -- 41,135,459 71,754,420 Net change in unrealized appreciation or depreciation of investments (215,133,394) (12,981,479) (6,462,418) (140,323,608) (841,823,790) - ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (209,262,941) (13,090,450) (7,312,550) (110,001,573) (768,623,194) - ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 118,335,866 586,751 975,261 6,409,990 161,253,262 Net transfers(1) 224,227,960 (2,254,640) 304,566 (60,132,996) 23,971,567 Transfers for policy loans (48,555) 3,673 (33,350) 13,581 (17,013) Adjustments to net assets allocated to contracts in payment period (2,250) -- -- (13,980) 7,463 Contract charges (1,788,225) (78,838) (11,318) (169,292) (2,615,851) Contract terminations: Surrender benefits (10,102,009) (1,321,066) (530,374) (12,132,008) (47,899,889) Death benefits (2,231,481) (129,468) (92,175) (1,578,107) (6,969,090) - ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 328,391,306 (3,193,588) 612,610 (67,602,812) 127,730,449 - ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 342,380,926 31,644,113 14,458,264 309,273,710 1,443,987,709 - ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 461,509,291 $ 15,360,075 $ 7,758,324 $ 131,669,325 $ 803,094,964 - ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 234,064,317 36,519,897 10,650,384 229,215,560 690,850,161 Contract purchase payments 106,979,403 841,259 905,906 6,010,190 159,225,323 Net transfers(1) 209,333,702 (2,960,335) 86,324 (56,267,541) 133,981,714 Transfers for policy loans (34,685) 6,091 (47,585) 17,724 (5,185) Contract charges (1,635,189) (110,293) (10,973) (159,474) (2,185,013) Contract terminations: Surrender benefits (8,969,092) (1,908,415) (525,339) (11,169,756) (27,968,039) Death benefits (1,971,812) (187,530) (88,840) (1,461,400) (4,599,637) - ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 537,766,644 32,200,674 10,969,877 166,185,303 949,299,324 - -----------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 33 STATEMENTS OF CHANGES IN NET ASSETS
AC VP AC VP AC VP AC VP CALVERT INTL, MID CAP VAL, ULTRA, VAL, VS YEAR ENDED DEC. 31, 2008 (CONTINUED) CL II CL II CL II CL II SOCIAL BAL OPERATIONS Investment income (loss) -- net $ (162,420) $ (2,099,838) $ (280,276) $ 4,430,292 $ 542,401 Net realized gain (loss) on sales of investments 4,259,270 (23,922,102) (2,069,440) (25,552,297) (984,400) Distributions from capital gains 9,919,707 -- 5,337,337 39,005,503 491,524 Net change in unrealized appreciation or depreciation of investments (67,694,556) (38,592,255) (19,189,161) (102,934,758) (13,786,091) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (53,677,999) (64,614,195) (16,201,540) (85,051,260) (13,736,566) - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,985,383 69,520,247 1,958,346 9,523,995 1,156,189 Net transfers(1) (18,402,998) (76,000,954) 465,320 (86,811,356) (7,787,264) Transfers for policy loans (8,603) (22,464) 5,855 16,411 28,307 Adjustments to net assets allocated to contracts in payment period (6,573) 8,361 -- (34,686) (33,610) Contract charges (75,603) (1,057,234) (34,101) (231,033) (35,175) Contract terminations: Surrender benefits (5,981,768) (5,677,221) (1,378,939) (17,069,726) (2,273,634) Death benefits (609,844) (1,573,973) (162,676) (2,494,381) (453,979) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (23,100,006) (14,803,238) 853,805 (97,100,776) (9,399,166) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 132,919,881 266,953,734 36,976,324 377,642,537 49,434,815 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 56,141,876 $187,536,301 $ 21,628,589 $ 195,490,501 $ 26,299,083 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 77,918,461 258,311,284 30,854,352 262,020,331 43,038,361 Contract purchase payments 1,461,590 68,865,332 1,964,728 8,352,153 1,123,759 Net transfers(1) (14,425,990) (74,985,758) (54,106) (66,086,051) (7,873,291) Transfers for policy loans (7,657) (22,712) 6,427 14,165 23,789 Contract charges (55,149) (1,144,325) (35,024) (182,727) (34,477) Contract terminations: Surrender benefits (4,220,298) (6,371,335) (1,426,639) (13,440,286) (2,194,577) Death benefits (450,013) (1,697,506) (161,474) (2,013,183) (442,497) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 60,220,944 242,954,980 31,148,264 188,664,402 33,641,067 - --------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 34 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
COL COL MARSICO CS EV VT EG VA MARSICO GRO, INTL OPP, COMMODITY FLOATING-RATE FUNDAMENTAL YEAR ENDED DEC. 31, 2008 (CONTINUED) VS CL A VS CL B RETURN INC LG CAP, CL 2 OPERATIONS Investment income (loss) -- net $ (5,818,040) $ 501,474 $ 379,142 $ 24,259,237 $ 101,898 Net realized gain (loss) on sales of investments (1,919,186) (8,601,724) (2,846,358) (11,044,550) (385,367) Distributions from capital gains -- 21,995,840 5,566,078 -- -- Net change in unrealized appreciation or depreciation of investments (506,718,119) (81,729,339) (40,786,586) (173,776,117) (10,595,606) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (514,455,345) (67,833,749) (37,687,724) (160,561,430) (10,879,075) - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 260,391,304 10,530,742 7,232,903 132,226,226 1,771,960 Net transfers(1) 309,997,349 26,026,818 41,355,894 823,683 (1,440,389) Transfers for policy loans (137,786) (29,568) (20,229) (32,203) (165) Adjustments to net assets allocated to contracts in payment period 223,359 317,938 23,966 63,448 (4,592) Contract charges (3,881,197) (74,829) (56,503) (1,784,684) (19,760) Contract terminations: Surrender benefits (27,425,115) (4,310,804) (4,134,580) (18,245,360) (1,379,649) Death benefits (5,423,288) (704,923) (402,491) (3,959,308) (211,025) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 533,744,626 31,755,374 43,998,960 109,091,802 (1,283,620) - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 944,663,920 105,483,445 52,379,728 485,908,376 33,190,528 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 963,953,201 $ 69,405,070 $ 58,690,964 $ 434,438,748 $ 21,027,833 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 766,012,676 80,923,123 45,929,583 469,434,029 27,463,490 Contract purchase payments 255,171,938 9,186,833 5,834,205 138,263,594 1,732,790 Net transfers(1) 315,156,481 18,749,536 30,729,672 (861,457) (1,428,442) Transfers for policy loans (127,474) (21,219) (14,924) (30,096) (289) Contract charges (3,998,684) (74,317) (48,823) (1,884,184) (19,533) Contract terminations: Surrender benefits (28,532,571) (4,436,540) (3,691,025) (19,229,993) (1,304,198) Death benefits (5,551,579) (704,280) (378,899) (4,149,794) (202,833) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,298,130,787 103,623,136 78,359,789 581,542,099 26,240,985 - --------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 35 STATEMENTS OF CHANGES IN NET ASSETS
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, YEAR ENDED DEC. 31, 2008 (CONTINUED) CL 2 SERV CL 2 SERV CL 2 SERV CL 2 SERV CL 2 OPERATIONS Investment income (loss) -- net $ (519,981) $ 607,849 $ (12,007) $ (7,914,068) $ 2,692,571 Net realized gain (loss) on sales of investments (2,002,966) (47,155,331) (2,168,182) (12,483,089) 167,369 Distributions from capital gains 1,716,442 32,251,009 34,070,529 204,014,982 26,589,319 Net change in unrealized appreciation or depreciation of investments (29,248,242) (628,121,687) (174,868,782) (775,162,198) (141,543,366) - ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (30,054,747) (642,418,160) (142,978,442) (591,544,373) (112,094,107) - ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 3,394,257 265,507,861 6,298,771 153,902,188 8,342,292 Net transfers(1) (12,773,582) 188,298,202 (63,336,220) 8,297,919 (30,835,134) Transfers for policy loans (11,661) (122,156) 57,611 (82,997) (44,600) Adjustments to net assets allocated to contracts in payment period (2,344) 366,427 (103,982) (53,659) (31,844) Contract charges (60,023) (3,874,005) (240,576) (2,644,397) (163,625) Contract terminations: Surrender benefits (3,261,319) (35,884,264) (17,336,524) (54,316,552) (10,913,658) Death benefits (358,835) (6,720,287) (3,193,891) (7,849,927) (1,612,373) - ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (13,073,507) 407,571,778 (77,854,811) 97,252,575 (35,258,942) - ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 79,458,167 1,258,736,312 390,430,570 1,459,930,264 272,379,000 - ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 36,329,913 $1,023,889,930 $ 169,597,317 $ 965,638,466 $ 125,025,951 - ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 46,006,324 1,018,249,324 278,465,380 738,938,581 146,997,035 Contract purchase payments 2,808,632 259,940,481 5,387,295 142,327,803 6,518,803 Net transfers(1) (9,149,047) 226,034,879 (56,243,671) 70,668,718 (21,842,266) Transfers for policy loans (12,730) (103,879) 52,917 (51,605) (23,729) Contract charges (42,716) (3,996,249) (209,976) (2,059,311) (111,326) Contract terminations: Surrender benefits (2,366,479) (37,411,309) (14,777,785) (31,523,887) (7,092,922) Death benefits (278,093) (6,856,731) (2,735,042) (5,000,710) (1,156,708) - ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 36,965,891 1,455,856,516 209,939,118 913,299,589 123,288,887 - -----------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 36 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
FTVIPT FRANK FTVIPT FRANK FTVIPT GS VIT GS VIT GLOBAL REAL EST, SM CAP VAL, MUTUAL SHARES MID CAP VAL, STRUCTD U.S. YEAR ENDED DEC. 31, 2008 (CONTINUED) CL 2 CL 2 SEC, CL 2 INST EQ, INST OPERATIONS Investment income (loss) -- net $ 503,905 $ 702,844 $ 5,246,263 $ 216,127 $ 1,541,198 Net realized gain (loss) on sales of investments (38,394,743) 5,172,829 (3,837,525) (32,773,125) (11,622,093) Distributions from capital gains 87,261,284 20,382,263 10,893,796 838,210 2,274,591 Net change in unrealized appreciation or depreciation of investments (203,912,150) (119,712,412) (130,810,880) (183,567,970) (119,801,756) - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (154,541,704) (93,454,476) (118,508,346) (215,286,758) (127,608,060) - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 11,204,368 8,679,849 11,767,484 9,859,555 7,769,311 Net transfers(1) (112,195,341) (54,730,943) (73,904,335) (172,655,431) (97,640,213) Transfers for policy loans 65,901 (692) (6,959) 37,539 43,188 Adjustments to net assets allocated to contracts in payment period (26,771) (6,007) (127,947) (89,130) (189,538) Contract charges (251,691) (172,640) (200,749) (507,399) (533,685) Contract terminations: Surrender benefits (20,751,224) (14,580,137) (14,269,268) (31,858,658) (17,398,983) Death benefits (2,423,857) (1,783,250) (2,954,337) (3,799,640) (2,452,181) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (124,378,615) (62,593,820) (79,696,111) (199,013,164) (110,402,101) - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 456,336,406 329,243,517 367,471,204 726,483,476 420,470,514 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 177,416,087 $ 173,195,221 $ 169,266,747 $ 312,183,554 $ 182,460,353 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 204,659,663 157,428,566 248,866,779 278,223,433 366,725,492 Contract purchase payments 8,908,558 6,684,534 10,505,500 4,530,966 8,022,571 Net transfers(1) (57,803,132) (27,020,048) (59,532,389) (74,656,686) (98,924,500) Transfers for policy loans 34,749 (8,049) (4,805) 19,029 47,659 Contract charges (138,403) (95,620) (163,866) (225,186) (545,110) Contract terminations: Surrender benefits (11,284,241) (7,818,548) (11,236,361) (14,800,002) (17,639,717) Death benefits (1,356,182) (1,130,484) (2,343,638) (1,745,468) (2,504,860) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 143,021,012 128,040,351 186,091,220 191,346,086 255,181,535 - ----------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 37 STATEMENTS OF CHANGES IN NET ASSETS
JANUS ASPEN JANUS ASPEN JANUS ASPEN MFS MFS GLOBAL JANUS, OVERSEAS, INV GRO STOCK, NEW DIS, YEAR ENDED DEC. 31, 2008 (CONTINUED) TECH, SERV SERV SERV SERV CL SERV CL OPERATIONS Investment income (loss) -- net $ (145,011) $ (2,305,213) $ 605,777 $ (509,432) $ (513,955) Net realized gain (loss) on sales of investments (1,991,925) (6,928,103) 2,506,051 (924,029) (3,495,294) Distributions from capital gains -- -- 32,877,390 4,623,408 12,927,097 Net change in unrealized appreciation or depreciation of investments (8,519,753) (395,159,205) (165,722,340) (42,788,887) (36,609,326) - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (10,656,689) (404,392,521) (129,733,122) (39,598,940) (27,691,478) - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 535,332 247,687,503 2,934,517 2,613,345 1,412,836 Net transfers(1) (2,187,112) 164,673,706 (10,085,784) (16,641,316) (14,951,575) Transfers for policy loans 17,121 (90,112) (63,277) (19,457) 8,281 Adjustments to net assets allocated to contracts in payment period (713) 14,319 108,148 (12,682) (51,358) Contract charges (15,018) (3,804,074) (100,208) (68,003) (48,562) Contract terminations: Surrender benefits (1,490,583) (18,315,354) (11,541,276) (5,994,233) (3,929,933) Death benefits (161,502) (4,193,535) (1,202,226) (824,585) (533,872) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (3,302,475) 385,972,453 (19,950,106) (20,946,931) (18,094,183) - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 25,957,096 791,865,502 252,914,192 120,723,574 82,088,385 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 11,997,932 $ 773,445,434 $ 103,230,964 $ 60,177,703 $ 36,302,724 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 49,168,889 747,893,080 147,130,132 150,559,981 80,673,123 Contract purchase payments 1,295,628 286,576,052 2,190,099 3,399,530 1,653,902 Net transfers(1) (5,645,355) 223,192,943 (13,549,811) (25,100,039) (17,691,840) Transfers for policy loans 40,758 (95,888) (40,236) (28,112) 12,477 Contract charges (36,483) (4,525,898) (76,914) (100,145) (57,562) Contract terminations: Surrender benefits (3,432,864) (21,923,911) (8,371,752) (8,401,975) (4,415,692) Death benefits (368,859) (4,937,908) (926,689) (1,226,535) (643,508) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 41,021,714 1,226,178,470 126,354,829 119,102,705 59,530,900 - ---------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 38 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
MFS NB AMT OPPEN OPPEN OPPEN UTILITIES, INTL, GLOBAL SEC MAIN ST SM CAP GLOBAL STRATEGIC YEAR ENDED DEC. 31, 2008 (CONTINUED) SERV CL CL S VA, SERV VA, SERV INC VA, SERV OPERATIONS Investment income (loss) -- net $ 1,537,568 $ (2,570,124) $ 624,983 $ (577,902) $ 82,435,012 Net realized gain (loss) on sales of investments (6,976,443) (15,591,622) (5,151,933) (3,892,701) (24,612,845) Distributions from capital gains 53,844,373 -- 9,673,420 5,608,068 24,866,375 Net change in unrealized appreciation or depreciation of investments (197,627,493) (115,196,669) (70,922,180) (42,994,917) (483,290,791) - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (149,221,995) (133,358,415) (65,775,710) (41,857,452) (400,602,249) - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 17,638,233 78,594,838 6,629,977 5,152,070 413,463,715 Net transfers(1) (23,668,023) (30,869,209) (30,406,024) (17,997,334) 58,175,030 Transfers for policy loans (49,633) (17,325) 6,006 (9,664) (154,911) Adjustments to net assets allocated to contracts in payment period 142,203 (2,847) 38,116 11,678 950,257 Contract charges (229,836) (1,261,462) (100,647) (68,573) (5,695,688) Contract terminations: Surrender benefits (17,794,372) (6,174,801) (6,829,217) (4,649,184) (103,820,171) Death benefits (3,320,128) (1,537,805) (906,569) (629,276) (17,494,240) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (27,281,556) 38,731,389 (31,568,358) (18,190,283) 345,423,992 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 389,227,693 313,048,610 181,570,893 121,815,788 2,131,138,444 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 212,724,142 $ 218,421,584 $ 84,226,825 $ 61,768,053 $2,075,960,187 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 181,258,692 273,245,434 117,626,819 91,910,733 1,745,767,764 Contract purchase payments 11,515,883 81,261,084 5,883,357 5,092,316 360,902,069 Net transfers(1) (18,159,748) 13,726,397 (24,025,887) (15,674,671) 14,615,938 Transfers for policy loans (27,155) (16,152) 8,236 (5,797) (130,174) Contract charges (130,042) (1,395,789) (80,452) (61,601) (4,930,441) Contract terminations: Surrender benefits (9,359,471) (6,991,618) (5,455,157) (4,098,857) (87,846,472) Death benefits (1,921,520) (1,713,548) (750,936) (576,793) (14,883,710) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 163,176,639 358,115,808 93,205,980 76,585,330 2,013,494,974 - ----------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 39 STATEMENTS OF CHANGES IN NET ASSETS
PIMCO PUT VT PUT VT PUT VT DISC VIT ALL ASSET, GLOBAL HLTH CARE, INTL EQ, VISTA, ASSET ALLOC, PERIOD ENDED DEC. 31, 2008 (CONTINUED) ADVISOR CL CL IB CL IB CL IB AGGR(2) OPERATIONS Investment income (loss) -- net $ 55,016,354 $ (278,114) $ 930,192 $ (407,036) $ (27,495) Net realized gain (loss) on sales of investments (5,336,873) 625,751 (733,014) (6,064,408) (264,639) Distributions from capital gains 3,379,059 314,504 11,474,658 -- -- Net change in unrealized appreciation or depreciation of investments (245,021,116) (6,592,938) (47,273,022) (20,077,045) (1,661,420) - ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (191,962,576) (5,930,797) (35,601,186) (26,548,489) (1,953,554) - ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 284,761,229 768,699 1,063,305 1,298,219 1,252,934 Net transfers(1) 118,887,051 (7,108,096) (18,594,269) (10,320,649) 9,400,148 Transfers for policy loans (79,984) 8,973 12,852 40,753 2,193 Adjustments to net assets allocated to contracts in payment period 529,412 (13,260) (3,721) (13,372) (195) Contract charges (4,199,813) (30,343) (49,465) (44,382) (2,891) Contract terminations: Surrender benefits (25,329,389) (1,851,961) (3,927,793) (3,781,279) (357,830) Death benefits (5,773,796) (215,109) (436,835) (453,300) -- - ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 368,794,710 (8,441,097) (21,935,926) (13,274,010) 10,294,359 - ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 855,249,980 39,463,521 94,674,067 67,450,004 -- - ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,032,082,114 $25,091,627 $ 37,136,955 $ 27,627,505 $ 8,340,805 - ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 754,096,049 35,962,246 53,770,331 61,544,884 -- Contract purchase payments 262,481,612 746,884 743,329 1,481,294 1,336,474 Net transfers(1) 108,874,036 (6,879,621) (13,492,860) (11,663,264) 10,801,305 Transfers for policy loans (74,291) 9,234 11,911 56,359 2,954 Contract charges (3,966,045) (29,546) (35,052) (51,948) (3,612) Contract terminations: Surrender benefits (24,194,353) (1,792,929) (2,728,332) (4,192,107) (370,772) Death benefits (5,431,942) (208,972) (322,453) (501,145) -- - ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,091,785,066 27,807,296 37,946,874 46,674,073 11,766,349 - -----------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. (2)For the period May 1, 2008 (commencement of operations) to Dec. 31, 2008. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 40 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
DISC DISC DISC DISC VP DAVIS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, NY VENTURE, PERIOD ENDED DEC. 31, 2008 (CONTINUED) CONSERV(2) MOD(2) MOD AGGR(2) MOD CONSERV(2) CL 3 OPERATIONS Investment income (loss) -- net $ (62,873) $ (134,199) $ (96,479) $ (74,331) $ (5,901,159) Net realized gain (loss) on sales of investments (490,485) (548,718) (366,025) (743,884) (1,129,011) Distributions from capital gains -- -- -- -- 5,167,283 Net change in unrealized appreciation or depreciation of investments (1,391,686) (6,386,398) (5,428,645) (2,702,239) (319,039,412) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (1,945,044) (7,069,315) (5,891,149) (3,520,454) (320,902,299) - -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 993,675 3,105,294 2,027,043 1,633,496 196,909,373 Net transfers(1) 23,332,184 42,349,382 28,646,415 22,732,816 174,561,789 Transfers for policy loans (23,367) (4,392) (7,898) (12,876) (46,967) Adjustments to net assets allocated to contracts in payment period -- 266,298 81,523 12,742 (832) Contract charges (5,277) (10,847) (5,984) (5,046) (3,031,355) Contract terminations: Surrender benefits (837,560) (725,899) (315,166) (734,652) (15,193,010) Death benefits (156,810) (136,462) (74,251) (28,456) (3,636,964) - -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 23,302,845 44,843,374 30,351,682 23,598,024 349,562,034 - -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- -- 606,200,877 - -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $21,357,801 $37,774,059 $24,460,533 $20,077,570 $ 634,860,612 - -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- -- -- -- 533,474,524 Contract purchase payments 991,290 3,378,562 2,222,979 1,662,306 206,839,189 Net transfers(1) 25,478,179 46,926,034 31,237,470 24,417,767 200,999,356 Transfers for policy loans (24,186) (3,756) (11,805) (13,126) (45,858) Contract charges (6,077) (12,844) (7,138) (5,894) (3,302,892) Contract terminations: Surrender benefits (851,454) (777,741) (271,630) (765,774) (16,692,769) Death benefits (161,406) (144,108) (106,586) (37,350) (3,898,074) - -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 25,426,346 49,366,147 33,063,290 25,257,929 917,373,476 - --------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. (2)For the period May 1, 2008 (commencement of operations) to Dec. 31, 2008. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 41 STATEMENTS OF CHANGES IN NET ASSETS
VP GS VP PTNRS RVS VP RVS VP RVS VP MID CAP VAL, SM CAP VAL, BAL, CASH DIV YEAR ENDED DEC. 31, 2008 (CONTINUED) CL 3 CL 3 CL 3 MGMT, CL 3 BOND, CL 3 OPERATIONS Investment income (loss) -- net $ (154,242) $ (6,878,924) $ (2,275,199) $ 15,151,445 $ (18,626,804) Net realized gain (loss) on sales of investments (1,587,521) (11,207,354) (29,973,539) (54,691) (33,820,604) Distributions from capital gains 167,075 30,800,789 23,249,115 -- -- Net change in unrealized appreciation or depreciation of investments (5,745,465) (315,458,032) (91,725,822) (325,511) (216,095,371) - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (7,320,153) (302,743,521) (100,725,445) 14,771,243 (268,542,779) - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 571,960 193,361,128 5,613,860 219,269,511 778,967,812 Net transfers(1) (5,912,474) 49,520,605 (57,955,138) 280,290,723 (139,919,730) Transfers for policy loans 8,002 (953) 234,168 252,208 (1,881) Adjustments to net assets allocated to contracts in payment period (1,804) (94,261) (652,827) (1,169,218) (546,744) Contract charges (18,414) (3,389,664) (233,307) (650,066) (11,254,905) Contract terminations: Surrender benefits (1,373,482) (26,571,775) (46,856,334) (189,247,253) (166,895,226) Death benefits (119,262) (4,872,553) (5,068,011) (17,534,278) (30,597,103) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (6,845,474) 207,952,527 (104,917,589) 291,211,627 429,752,223 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 25,326,978 846,374,532 399,988,332 1,009,165,225 3,134,331,720 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $11,161,351 $ 751,583,538 $ 194,345,298 $1,315,148,095 $3,295,541,164 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 18,855,178 617,370,344 271,897,845 868,750,481 2,530,298,748 Contract purchase payments 512,163 205,084,186 4,458,110 202,236,494 726,110,338 Net transfers(1) (4,832,398) 61,585,396 (51,696,068) 225,008,434 (178,174,690) Transfers for policy loans 5,518 (12,550) 157,497 197,783 (31,604) Contract charges (16,211) (3,126,625) (181,071) (554,618) (9,852,338) Contract terminations: Surrender benefits (996,015) (20,679,903) (31,164,258) (159,414,965) (131,563,804) Death benefits (115,372) (4,107,151) (3,791,840) (15,158,849) (25,094,542) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 13,412,863 856,113,697 189,680,215 1,121,064,760 2,911,692,108 - ----------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 42 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
RVS VP RVS VP RVS VP RVS VP RVS VP DIV EQ DYN GLOBAL GLOBAL INFLATION HI YIELD YEAR ENDED DEC. 31, 2008 (CONTINUED) INC, CL 3 EQ, CL 3 BOND, CL 3 PROT SEC, CL 3 BOND, CL 3 OPERATIONS Investment income (loss) -- net $ (19,143,545) $ (5,601,293) $ 74,436,353 $ 11,170,218 $ (3,538,676) Net realized gain (loss) on sales of investments (24,614,473) (47,402,275) (5,347,418) (186,918) (30,801,819) Distributions from capital gains 214,500,453 85,907,518 590,926 -- -- Net change in unrealized appreciation or depreciation of investments (1,351,061,550) (413,649,619) (100,051,681) (25,359,743) (116,303,042) - -------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (1,180,319,115) (380,745,669) (30,371,820) (14,376,443) (150,643,537) - -------------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 346,744,420 18,553,001 259,985,783 162,447,055 12,961,165 Net transfers(1) 132,509,673 (123,015,836) (68,677,513) 8,181,357 (176,404,868) Transfers for policy loans (79,069) 932,267 (286) (49,993) 91,031 Adjustments to net assets allocated to contracts in payment period (310,509) (956,748) (131,929) (51,868) (321,491) Contract charges (5,605,751) (1,333,784) (3,829,196) (2,650,012) (361,398) Contract terminations: Surrender benefits (101,234,525) (100,738,536) (61,041,667) (26,495,759) (57,863,381) Death benefits (17,241,488) (8,858,053) (9,609,829) (5,375,017) (8,237,322) - -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 354,782,751 (215,417,689) 116,695,363 136,005,763 (230,136,264) - -------------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 2,710,344,684 1,044,144,177 1,133,348,233 605,794,082 763,178,955 - -------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 1,884,808,320 $ 447,980,819 $1,219,671,776 $727,423,402 $ 382,399,154 - -------------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,615,553,755 908,740,844 852,722,375 543,694,986 550,624,505 Contract purchase payments 343,759,136 20,110,295 229,091,526 145,260,311 11,063,632 Net transfers(1) 192,179,798 (142,300,032) (78,708,281) 110,288 (138,517,692) Transfers for policy loans (50,959) 881,036 (11,878) (43,839) 72,030 Contract charges (5,045,291) (1,485,808) (3,091,241) (2,356,943) (283,275) Contract terminations: Surrender benefits (70,779,936) (90,707,110) (42,561,206) (23,579,811) (43,180,171) Death benefits (12,831,036) (9,758,229) (7,186,299) (4,784,575) (6,502,309) - -------------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 2,062,785,467 685,480,996 950,254,996 658,300,417 373,276,720 - --------------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 43 STATEMENTS OF CHANGES IN NET ASSETS
RVS VP RVS VP RVS VP RVS VP RVS VP INC MID CAP MID CAP S&P 500, SHORT YEAR ENDED DEC. 31, 2008 (CONTINUED) OPP, CL 3 GRO, CL 3 VAL, CL 3 CL 3 DURATION, CL 3 OPERATIONS Investment income (loss) -- net $ (4,583,999) $ (1,307,193) $ (2,657,180) $ (1,574,030) $ (2,672,225) Net realized gain (loss) on sales of investments (12,653,602) (4,257,308) (8,941,924) 456,995 (1,293,058) Distributions from capital gains -- 1,041,144 65,630,697 8,639,876 -- Net change in unrealized appreciation or depreciation of investments (120,902,224) (70,171,114) (218,152,389) (96,065,586) (9,457,807) - ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (138,139,825) (74,694,471) (164,120,796) (88,542,745) (13,423,090) - ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 168,909,005 3,921,623 51,341,501 7,187,475 19,669,255 Net transfers(1) (8,794,640) (21,775,657) 23,883,843 (33,887,555) 50,214,527 Transfers for policy loans (33,252) 139,518 (37,345) 5,455 (48,830) Adjustments to net assets allocated to contracts in payment period (30,672) (88,195) (25,526) (42,372) (96,267) Contract charges (2,634,839) (136,650) (771,044) (147,578) (229,204) Contract terminations: Surrender benefits (16,734,807) (17,971,010) (10,642,279) (14,194,131) (25,823,578) Death benefits (4,024,236) (1,304,105) (1,810,593) (2,049,452) (4,439,841) - ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 136,656,559 (37,214,476) 61,938,557 (43,128,158) 39,246,062 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 577,420,763 190,564,075 329,463,858 265,351,346 346,116,295 - ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 575,937,497 $ 78,655,128 $ 227,281,619 $133,680,443 $371,939,267 - ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 516,836,128 151,417,748 243,623,712 248,359,813 272,625,569 Contract purchase payments 165,306,074 3,930,990 52,641,750 7,744,957 17,456,091 Net transfers(1) (16,672,350) (20,807,744) 31,631,997 (37,738,039) 41,444,935 Transfers for policy loans (31,183) 167,900 (30,476) 12,435 (41,801) Contract charges (2,552,940) (138,644) (770,796) (166,219) (183,827) Contract terminations: Surrender benefits (16,013,800) (18,835,898) (9,615,724) (15,541,389) (20,811,166) Death benefits (3,857,463) (1,361,150) (1,672,476) (2,360,094) (3,541,872) - ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 643,014,466 114,373,202 315,807,987 200,311,464 306,947,929 - ----------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 44 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
SEL SEL VP SEL VP THDL VP THDL VP VP LG CAP SM CAP EMER INTL YEAR ENDED DEC. 31, 2008 (CONTINUED) GRO, CL 3 VAL, CL 3 VAL, CL 3 MKTS, CL 3 OPP, CL 3 OPERATIONS Investment income (loss) -- net $ (1,465,709) $ (110,321) $ (721,334) $ (1,285,583) $ 3,413,289 Net realized gain (loss) on sales of investments (27,559,245) (1,631,807) (11,352,210) (837,475) 6,452,882 Distributions from capital gains -- 363,086 11,015,847 103,706,010 -- Net change in unrealized appreciation or depreciation of investments (113,519,466) (5,376,917) (38,652,357) (505,111,892) (138,759,111) - --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (142,544,420) (6,755,959) (39,710,054) (403,528,940) (128,892,940) - --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 7,767,836 620,986 2,407,471 115,546,695 6,528,218 Net transfers(1) (109,420,420) (4,210,975) (26,253,204) 139,406,078 (43,126,658) Transfers for policy loans 92,813 (1,830) 22,219 (82,961) 153,870 Adjustments to net assets allocated to contracts in payment period (168,448) (1,202) (27,746) 4,516 (155,950) Contract charges (262,930) (12,148) (68,198) (1,941,691) (193,288) Contract terminations: Surrender benefits (16,669,635) (1,296,926) (6,354,400) (22,819,210) (45,856,351) Death benefits (1,720,240) (70,507) (1,027,183) (3,445,805) (2,586,422) - --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (120,381,024) (4,972,602) (31,301,041) 226,667,622 (85,236,581) - --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 404,027,400 20,660,664 122,452,481 695,489,361 370,714,786 - --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 141,101,956 $ 8,932,103 $ 51,441,386 $ 518,628,043 $ 156,585,265 - --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 516,489,168 15,712,105 74,284,903 289,591,162 255,423,903 Contract purchase payments 11,297,360 598,569 1,958,478 82,837,438 5,562,026 Net transfers(1) (173,583,082) (3,711,048) (19,209,461) 148,555,834 (40,743,875) Transfers for policy loans 174,758 (58) 17,463 (37,966) 120,746 Contract charges (413,755) (11,236) (51,915) (1,279,766) (165,213) Contract terminations: Surrender benefits (24,795,058) (1,067,225) (4,683,104) (11,647,189) (33,784,319) Death benefits (2,659,181) (67,383) (763,275) (1,991,383) (2,267,055) - --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 326,510,210 11,453,724 51,553,089 506,028,130 184,146,213 - ---------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 45 STATEMENTS OF CHANGES IN NET ASSETS
VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL MID CAP GRO, WANGER WANGER YEAR ENDED DEC. 31, 2008 (CONTINUED) CL II REAL EST, CL II CL II INTL USA OPERATIONS Investment income (loss) -- net $ 9,934,129 $ 4,131,019 $ (61,992) $ 651,497 $ (6,967,912) Net realized gain (loss) on sales of investments (11,221,313) (2,941,501) (6,013,729) 12,249,365 (135,244) Distributions from capital gains 42,465,434 14,718,198 13,822,746 112,265,598 98,763,493 Net change in unrealized appreciation or depreciation of investments (395,413,857) (153,850,021) (35,740,924) (562,372,647) (458,879,494) - ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (354,235,607) (137,942,305) (27,993,899) (437,206,187) (367,219,157) - ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 162,120,678 55,717,716 3,905,006 76,078,521 81,011,616 Net transfers(1) 41,775,800 128,949,497 8,415,092 (18,512,205) (91,922,121) Transfers for policy loans (38,530) (12,997) (15,789) (86,271) 9,793 Adjustments to net assets allocated to contracts in payment period 12,669 (3,217) 12,157 120,303 (7,159) Contract charges (3,112,560) (854,197) (33,285) (1,399,138) (1,513,214) Contract terminations: Surrender benefits (30,359,657) (6,988,921) (2,348,267) (38,265,890) (38,964,384) Death benefits (4,920,727) (1,243,813) (314,304) (4,782,318) (4,951,058) - ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 165,477,673 175,564,068 9,620,610 13,153,002 (56,336,527) - ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 869,865,179 203,382,069 47,492,816 970,136,740 973,831,286 - ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 681,107,245 $ 241,003,832 $ 29,119,527 $ 546,083,555 $ 550,275,602 - ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 706,657,539 179,033,512 38,592,716 416,769,930 565,036,815 Contract purchase payments 174,658,508 61,098,888 3,580,633 63,518,362 80,202,840 Net transfers(1) 45,994,255 152,920,756 5,565,769 28,905,438 (41,755,516) Transfers for policy loans (38,827) (15,995) (13,416) (35,954) 2,514 Contract charges (3,167,034) (990,995) (34,522) (977,645) (1,270,366) Contract terminations: Surrender benefits (28,910,108) (7,932,739) (2,455,285) (19,311,839) (26,081,981) Death benefits (4,882,721) (1,398,187) (316,231) (2,747,142) (3,552,079) - ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 890,311,612 382,715,240 44,919,664 486,121,150 572,582,227 - -----------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- 46 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
WF ADV WF ADV WF ADV WF ADV VT INDEX VT VT VT YEAR ENDED DEC. 31, 2008 (CONTINUED) ASSET ALLOC INTL CORE OPP SM CAP GRO OPERATIONS Investment income (loss) -- net $ 1,135,226 $ 154,170 $ 666,791 $ (684,366) Net realized gain (loss) on sales of investments (1,689,602) (480,814) (3,064,442) (5,649,931) Distributions from capital gains 5,981,215 2,835,003 14,416,944 21,965,577 Net change in unrealized appreciation or depreciation of investments (30,721,309) (9,918,833) (41,233,853) (55,428,219) - ----------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (25,294,470) (7,410,474) (29,214,560) (39,796,939) - ----------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,206,884 205,812 2,112,338 4,174,718 Net transfers(1) (19,898,897) (3,910,562) (15,745,317) (10,394,214) Transfers for policy loans 13,341 (3,248) (17,912) (3,560) Adjustments to net assets allocated to contracts in payment period (20,924) (4,193) (6,003) (1,541) Contract charges (54,687) (10,287) (52,763) (53,040) Contract terminations: Surrender benefits (5,566,230) (796,937) (3,805,759) (3,734,895) Death benefits (1,111,202) (142,054) (496,130) (506,117) - ----------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (25,431,715) (4,661,469) (18,011,546) (10,518,649) - ----------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 98,668,714 19,885,705 85,505,254 100,983,953 - ----------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 47,942,529 $ 7,813,762 $ 38,279,148 $ 50,668,365 - ----------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 72,214,012 13,828,315 60,059,822 75,618,973 Contract purchase payments 1,017,946 175,616 1,820,547 3,879,797 Net transfers(1) (17,670,224) (3,537,792) (12,826,501) (10,058,185) Transfers for policy loans 13,619 (2,297) (14,360) (5,138) Contract charges (46,514) (8,796) (43,434) (50,239) Contract terminations: Surrender benefits (4,676,335) (661,997) (3,049,892) (3,481,146) Death benefits (983,444) (113,422) (432,284) (501,463) - ----------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 49,869,060 9,679,627 45,513,898 65,402,599 - -----------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 47 NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION RiverSource Variable Account 10 (the Account) was established under Minnesota law as a segregated asset account of RiverSource Life Insurance Company (RiverSource Life). The Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended (the 1940 Act) and exists in accordance with the rules and regulations of the Insurance Division, Department of Commerce of the State of Minnesota. The Account is used as a funding vehicle for RiverSource Retirement Advisor Advantage(R) Variable Annuity - Band 3 contracts issued by RiverSource Life. The Account is comprised of various divisions. Each division invests exclusively in shares of the following funds or portfolios (collectively, the Funds), which are registered under the 1940 Act as open-end management investment companies. The name of each Fund offered through RiverSource Retirement Advisor Advantage(R) Variable Annuity - Band 3 and the corresponding division name are provided below. Each division is comprised of subaccounts. Individual variable annuity accounts invest in subaccounts.
DIVISION FUND - ------------------------------------------------------------------------------------------------- Invesco VI Cap Appr, Ser II Invesco V.I. Capital Appreciation Fund, Series II Shares (previously AIM V.I. Capital Appreciation Fund, Series II Shares) Invesco VI Cap Dev, Ser II Invesco V.I. Capital Development Fund, Series II Shares (previously AIM V.I. Capital Development Fund, Series II Shares) Invesco VI Dyn, Ser I Invesco V.I. Dynamics Fund, Series I Shares (previously AIM V.I. Dynamics Fund, Series I Shares) Invesco VI Fin Serv, Ser I Invesco V.I. Financial Services Fund, Series I Shares (previously AIM V.I. Financial Services Fund, Series I Shares) Invesco VI Global Hlth, Ser II Invesco V.I. Global Health Care Fund, Series II Shares (previously AIM V.I. Global Health Care Fund, Series II Shares) Invesco VI Intl Gro, Ser II Invesco V.I. International Growth Fund, Series II Shares(1) (previously AIM V.I. International Growth Fund, Series II Shares) Invesco VI Tech, Ser I Invesco V.I. Technology Fund, Series I Shares (previously AIM V.I. Technology Fund, Series I Shares) AB VPS Global Thematic Gro, Cl AllianceBernstein VPS Global Thematic Growth Portfolio (Class B) B (previously AllianceBernstein VPS Global Technology Portfolio (Class B)) AB VPS Gro & Inc, Cl B AllianceBernstein VPS Growth and Income Portfolio (Class B) AB VPS Intl Val, Cl B AllianceBernstein VPS International Value Portfolio (Class B)(2) AC VP Intl, Cl II American Century VP International, Class II AC VP Mid Cap Val, Cl II American Century VP Mid Cap Value, Class II AC VP Ultra, Cl II American Century VP Ultra(R), Class II AC VP Val, Cl II American Century VP Value, Class II Calvert VS Social Bal Calvert Variable Series, Inc. VP SRI Social Balanced Portfolio Col Marsico Gro, VS Cl A Columbia Marsico Growth Fund, Variable Series, Class A Col Marsico Intl Opp, VS Cl B Columbia Marsico International Opportunities Fund, Variable Series, Class B CS Commodity Return Credit Suisse Trust - Commodity Return Strategy Portfolio EV VT Floating-Rate Inc Eaton Vance VT Floating-Rate Income Fund EG VA Fundamental Lg Cap, Cl 2 Evergreen VA Fundamental Large Cap Fund - Class 2 EG VA Intl Eq, Cl 2 Evergreen VA International Equity Fund - Class 2(3) Fid VIP Contrafund, Serv Cl 2 Fidelity(R) VIP Contrafund(R) Portfolio Service Class 2 Fid VIP Gro & Inc, Serv Cl 2 Fidelity(R) VIP Growth & Income Portfolio Service Class 2 Fid VIP Mid Cap, Serv Cl 2 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 Fid VIP Overseas, Serv Cl 2 Fidelity(R) VIP Overseas Portfolio Service Class 2 FTVIPT Frank Global Real Est, Cl 2 FTVIPT Franklin Global Real Estate Securities Fund - Class 2 FTVIPT Frank Sm Cap Val, Cl 2 FTVIPT Franklin Small Cap Value Securities Fund - Class 2 FTVIPT Mutual Shares Sec, Cl 2 FTVIPT Mutual Shares Securities Fund - Class 2 GS VIT Mid Cap Val, Inst Goldman Sachs VIT Mid Cap Value Fund - Institutional Shares GS VIT Structd U.S. Eq, Inst Goldman Sachs VIT Structured U.S. Equity Fund - Institutional Shares Janus Aspen Global Tech, Serv Janus Aspen Series Global Technology Portfolio: Service Shares Janus Aspen Janus, Serv Janus Aspen Series Janus Portfolio: Service Shares Janus Aspen Overseas, Serv Janus Aspen Series Overseas Portfolio: Service Shares MFS Inv Gro Stock, Serv Cl MFS(R) Investors Growth Stock Series - Service Class MFS New Dis, Serv Cl MFS(R) New Discovery Series - Service Class MFS Utilities, Serv Cl MFS(R) Utilities Series - Service Class NB AMT Intl, Cl S Neuberger Berman Advisers Management Trust International Portfolio (Class S) Oppen Global Sec VA, Serv Oppenheimer Global Securities Fund/VA, Service Shares Oppen Main St Sm Cap VA, Serv Oppenheimer Main Street Small Cap Fund/VA, Service Shares Oppen Global Strategic Inc VA, Oppenheimer Global Strategic Income Fund/VA, Service Shares Serv (previously Oppenheimer Strategic Bond Fund/VA, Service Shares) - -------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 48 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
DIVISION FUND - ------------------------------------------------------------------------------------------------- PIMCO VIT All Asset, Advisor Cl PIMCO VIT All Asset Portfolio, Advisor Share Class Put VT Global Hlth Care, Cl IB Putnam VT Global Health Care Fund - Class IB Shares Put VT Intl Eq, Cl IB Putnam VT International Equity Fund - Class IB Shares Put VT Vista, Cl IB Putnam VT Vista Fund - Class IB Shares Disc Asset Alloc, Aggr RVST Disciplined Asset Allocation Portfolios - Aggressive Disc Asset Alloc, Conserv RVST Disciplined Asset Allocation Portfolios - Conservative Disc Asset Alloc, Mod RVST Disciplined Asset Allocation Portfolios - Moderate Disc Asset Alloc, Mod Aggr RVST Disciplined Asset Allocation Portfolios - Moderately Aggressive Disc Asset Alloc, Mod Conserv RVST Disciplined Asset Allocation Portfolios - Moderately Conservative VP Davis NY Venture, Cl 3 RVST Variable Portfolio - Davis New York Venture Fund (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Fundamental Value Fund) VP GS Mid Cap Val, Cl 3 RVST Variable Portfolio - Goldman Sachs Mid Cap Value Fund (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Select Value Fund) VP Ptnrs Sm Cap Val, Cl 3 RVST Variable Portfolio - Partners Small Cap Value Fund (Class 3) (previously RVST RiverSource Partners Variable Portfolio - Small Cap Value Fund) RVS VP Bal, Cl 3 RVST RiverSource Variable Portfolio - Balanced Fund (Class 3)(4) RVS VP Cash Mgmt, Cl 3 RVST RiverSource Variable Portfolio - Cash Management Fund (Class 3) RVS VP Div Bond, Cl 3 RVST RiverSource Variable Portfolio - Diversified Bond Fund (Class 3) RVS VP Div Eq Inc, Cl 3 RVST RiverSource Variable Portfolio - Diversified Equity Income Fund (Class 3)(5) RVS VP Dyn Eq, Cl 3 RVST RiverSource Variable Portfolio - Dynamic Equity Fund (Class 3) RVS VP Global Bond, Cl 3 RVST RiverSource Variable Portfolio - Global Bond Fund (Class 3) RVS VP Global Inflation Prot RVST RiverSource Variable Portfolio - Global Inflation Protected Sec, Cl 3 Securities Fund (Class 3) RVS VP Hi Yield Bond, Cl 3 RVST RiverSource Variable Portfolio - High Yield Bond Fund (Class 3) RVS VP Inc Opp, Cl 3 RVST RiverSource Variable Portfolio - Income Opportunities Fund (Class 3) RVS VP Mid Cap Gro, Cl 3 RVST RiverSource Variable Portfolio - Mid Cap Growth Fund (Class 3) RVS VP Mid Cap Val, Cl 3 RVST RiverSource Variable Portfolio - Mid Cap Value Fund (Class 3) RVS VP S&P 500, Cl 3 RVST RiverSource Variable Portfolio - S&P 500 Index Fund (Class 3) RVS VP Short Duration, Cl 3 RVST RiverSource Variable Portfolio - Short Duration U.S. Government Fund (Class 3) Sel VP Gro, Cl 3 RVST Seligman Variable Portfolio - Growth Fund (Class 3) Sel VP Lg Cap Val, Cl 3 RVST Seligman Variable Portfolio - Larger-Cap Value Fund (Class 3) Sel VP Sm Cap Val, Cl 3 RVST Seligman Variable Portfolio - Smaller-Cap Value Fund (Class 3) THDL VP Emer Mkts, Cl 3 RVST Threadneedle Variable Portfolio - Emerging Markets Fund (Class 3) THDL VP Intl Opp, Cl 3 RVST Threadneedle Variable Portfolio - International Opportunity Fund (Class 3) VanK LIT Comstock, Cl II Van Kampen Life Investment Trust Comstock Portfolio, Class II Shares VanK UIF Global Real Est, Cl II Van Kampen's UIF Global Real Estate Portfolio, Class II Shares VanK UIF Mid Cap Gro, Cl II Van Kampen's UIF Mid Cap Growth Portfolio, Class II Shares Wanger Intl Wanger International Wanger USA Wanger USA WF Adv VT Index Asset Alloc Wells Fargo Advantage VT Index Asset Allocation Fund (previously Wells Fargo Advantage VT Asset Allocation Fund) WF Adv VT Intl Core Wells Fargo Advantage VT International Core Fund WF Adv VT Opp Wells Fargo Advantage VT Opportunity Fund WF Adv VT Sm Cap Gro Wells Fargo Advantage VT Small Cap Growth Fund - -------------------------------------------------------------------------------------------------
(1)Effective Feb. 13, 2009, Putman VT International New Opportunities Fund - Class IB Shares was substituted with AIM V.I. International Growth Fund, Series II Shares. (2)Effective Feb. 13, 2009, Lazard Retirement International Equity Portfolio - Service Shares was substituted with AllianceBernstein VPS International Value Portfolio (Class B). (3)Effective Feb. 13, 2009, FTVIPT Templeton Foreign Securities Fund - Class 2 was substituted with Evergreen VA International Equity Fund - Class 2. (4)Effective Feb. 13, 2009, MFS(R) Total Return Series - Service Class was substituted with RVST RiverSource Variable Portfolio - Balanced Fund (Class 3). (5)Effective Feb. 13, 2009, Pioneer Equity Income VCT Portfolio - Class II Shares was substituted with RVST RiverSource Variable Portfolio - Diversified Equity Income Fund (Class 3). The assets of each division of the Account are not chargeable with liabilities arising out of the business conducted by any other segregated asset account or by RiverSource Life. RiverSource Life serves as issuer of the contract. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS IN THE FUNDS Investment transactions are accounted for on the date the shares are purchased and sold. Realized gains and losses on the sales of investments are computed using the average cost method. Income from dividends and gains from realized capital gain distributions are reinvested in additional shares of the Funds and are recorded as income by the divisions on the ex-dividend date. - -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 49 Unrealized appreciation or depreciation of investments in the accompanying financial statements represents the division's share of the Funds' undistributed net investment income, undistributed realized gain or loss and the unrealized appreciation or depreciation on their investment securities. The Account categorizes its fair value measurements according to a three-level hierarchy. This hierarchy prioritizes the inputs used by the Account to value investment securities. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 - Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 - Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 - Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The Funds in the Accounts have been assigned a Level 2 hierarchy, which indicates that the Funds are not considered to be active as there are few daily net asset values released publicly. Investments in shares of the Funds are stated at fair value which is the net asset value per share as determined by the respective Funds. VARIABLE PAYOUT Net assets allocated to contracts in the payout period are periodically compared to a computation which uses the Annuity 2000 Basic Mortality Table and which assumes future mortality improvement. The assumed investment return is 5% unless the annuitant elects otherwise, in which case the rate would be 3.5%, as regulated by the laws of the respective states. The mortality risk is fully borne by RiverSource Life and may result in additional amounts being transferred into the variable annuity account by RiverSource Life to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the insurance company. FEDERAL INCOME TAXES RiverSource Life is taxed as a life insurance company. The Account is treated as part of RiverSource Life for federal income tax purposes. Under existing federal income tax law, no income taxes are payable with respect to any investment income of the Account to the extent the earnings are credited under the contracts. Based on this, no charge is being made currently to the Account for federal income taxes. RiverSource Life will review periodically the status of this policy. In the event of changes in the tax law, a charge may be made in future years for any federal income taxes that would be attributable to the contracts. SUBSEQUENT EVENTS Management has evaluated Account related events and transactions that occurred during the period from the date of the Statements of Assets and Liabilities through the date of issuance of the Account's financial statements. There were no events or transactions that occurred during the period that materially impacted the amounts or disclosures in the Account's financial statements. USE OF ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. 3. VARIABLE ACCOUNT EXPENSES RiverSource Life deducts a daily mortality and expense risk fee equal, on an annual basis, to 0.55% of the average daily net assets of each subaccount. 4. CONTRACT CHARGES RiverSource Life deducts a contract administrative charge of $30 per year on the contract anniversary. This charge reimburses RiverSource Life for expenses incurred in establishing and maintaining the annuity records. Certain products may waive this charge based upon the underlying contract value. Optional riders are available on certain products and if selected, the related fees are deducted annually from the contract value on the contract anniversary. Additional information can be found in the applicable product's prospectus. 5. SURRENDER CHARGES There is no charge if you surrender all or part of your contract during the accumulation phase. - -------------------------------------------------------------------------------- 50 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 6. RELATED PARTY TRANSACTIONS Management fees are paid indirectly to RiverSource Investments, LLC, an affiliate of RiverSource Life, in its capacity as investment manager for the RiverSource Variable Series Trust (RVST) funds. The Fund's Investment Management Services Agreement provides for a fee at a percentage of each Fund's average daily net assets on a tiered schedule that ranges from 1.100% to 0.120%. For certain RVST funds, the management fee may be adjusted upward or downward by a performance incentive adjustment (PIA). The adjustment is based on a comparison of the performance of each Fund to an index of similar funds up to a maximum percentage of each Fund's average daily net assets after deducting 0.50% from the performance difference. If the performance difference is less than 0.50%, the adjustment will be zero. For RVST funds with PIA, the maximum adjustment is 0.08% or 0.12%. The Funds have a Transfer Agency and Servicing Agreement with RiverSource Service Corporation, an affiliate of RiverSource Life. The fee under this agreement is uniform for all RVST funds at an annual rate of 0.06% of each Fund's average daily net assets. The Funds have an agreement with RiverSource Distributors, Inc. (the Distributor) for distribution services. Under a Plan and Agreement of Distribution pursuant to Rule 12b-1, each Fund pays the Distributor a fee at an annual rate of up to 0.125% of each Fund's average daily net assets. RVST funds have an Administrative Services Agreement with Ameriprise Financial, Inc., the parent of RiverSource Life, (Ameriprise Financial). Under this agreement, each Fund pays Ameriprise Financial a fee on a tiered schedule that ranges from 0.080% to 0.030% of each Fund's average daily net assets for administration and accounting services. On Sept. 29, 2009, Ameriprise Financial entered into an agreement with Bank of America Corporation to buy a portion of the asset management business of Columbia Management Group, LLC, including Columbia Management Advisors, LLC and Columbia Wanger Asset Management, LLC (the "Transaction"). The Transaction is subject to certain approvals and other conditions to closing, and is currently expected to close in the spring of 2010. Certain divisions invest in Funds sponsored by Columbia Management Advisors, LLC and Columbia Wanger Asset Management, LLC. In addition to the fees and expenses which each RVST fund bears directly, each Fund indirectly bears a pro rata share of the fees and expenses of the funds in which it invests (also referred to as "acquired funds"), including affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange traded funds). Because the acquired funds have varied expense and fee levels and each Fund may own different proportions of acquired funds at different times, the amount of fees and expenses incurred indirectly by each Fund will vary. 7. INVESTMENT TRANSACTIONS The divisions' purchases of Funds' shares, including reinvestment of dividend distributions, for the year ended Dec. 31, 2009 were as follows:
DIVISION PURCHASES - ------------------------------------------------------------------------------------------------------------------------------- Invesco VI Cap Appr, Ser II $6,029,873 Invesco VI Cap Dev, Ser II 1,366,009 Invesco VI Dyn, Ser I 255,270 Invesco VI Fin Serv, Ser I 4,907,063 Invesco VI Global Hlth, Ser II 5,639,396 Invesco VI Intl Gro, Ser II 167,753,423 Invesco VI Tech, Ser I 6,661,910 AB VPS Global Thematic Gro, Cl B 7,929,681 AB VPS Gro & Inc, Cl B 7,305,647 AB VPS Intl Val, Cl B 131,317,263 AC VP Intl, Cl II 2,344,976 AC VP Mid Cap Val, Cl II 49,731,644 AC VP Ultra, Cl II 3,953,971 AC VP Val, Cl II 21,464,734 Calvert VS Social Bal 1,373,181 Col Marsico Gro, VS Cl A 489,483,305 Col Marsico Intl Opp, VS Cl B 7,730,017 CS Commodity Return 32,924,336 EV VT Floating-Rate Inc 302,905,420 EG VA Fundamental Lg Cap, Cl 2 11,942,768 EG VA Intl Eq, Cl 2 634,281,059 Fid VIP Contrafund, Serv Cl 2 129,498,590 Fid VIP Gro & Inc, Serv Cl 2 1,869,750 Fid VIP Mid Cap, Serv Cl 2 77,337,839 Fid VIP Overseas, Serv Cl 2 7,453,168 - -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 51
DIVISION PURCHASES - ------------------------------------------------------------------------------------------------------------------------------- FTVIPT Frank Global Real Est, Cl 2 $23,558,843 FTVIPT Frank Sm Cap Val, Cl 2 15,772,700 FTVIPT Mutual Shares Sec, Cl 2 9,450,185 GS VIT Mid Cap Val, Inst 5,842,554 GS VIT Structd U.S. Eq, Inst 7,436,421 Janus Aspen Global Tech, Serv 4,758,562 Janus Aspen Janus, Serv 397,607,852 Janus Aspen Overseas, Serv 9,764,841 MFS Inv Gro Stock, Serv Cl 13,373,493 MFS New Dis, Serv Cl 2,838,304 MFS Utilities, Serv Cl 18,127,920 NB AMT Intl, Cl S 63,791,434 Oppen Global Sec VA, Serv 9,552,148 Oppen Main St Sm Cap VA, Serv 5,531,215 Oppen Global Strategic Inc VA, Serv 348,225,222 PIMCO VIT All Asset, Advisor Cl 365,873,386 Put VT Global Hlth Care, Cl IB 4,452,525 Put VT Intl Eq, Cl IB 540,613 Put VT Vista, Cl IB 447,851 Disc Asset Alloc, Aggr 11,351,901 Disc Asset Alloc, Conserv 29,939,004 Disc Asset Alloc, Mod 49,389,095 Disc Asset Alloc, Mod Aggr 28,371,239 Disc Asset Alloc, Mod Conserv 32,288,934 VP Davis NY Venture, Cl 3 650,372,108 VP GS Mid Cap Val, Cl 3 1,371,304 VP Ptnrs Sm Cap Val, Cl 3 147,478,475 RVS VP Bal, Cl 3 74,206,630 RVS VP Cash Mgmt, Cl 3 111,536,048 RVS VP Div Bond, Cl 3 1,103,736,925 RVS VP Div Eq Inc, Cl 3 508,167,982 RVS VP Dyn Eq, Cl 3 7,126,665 RVS VP Global Bond, Cl 3 323,837,522 RVS VP Global Inflation Prot Sec, Cl 3 1,118,041,896 RVS VP Hi Yield Bond, Cl 3 87,881,658 RVS VP Inc Opp, Cl 3 753,094,987 RVS VP Mid Cap Gro, Cl 3 17,543,250 RVS VP Mid Cap Val, Cl 3 22,242,156 RVS VP S&P 500, Cl 3 13,604,975 RVS VP Short Duration, Cl 3 72,171,496 Sel VP Gro, Cl 3 3,663,300 Sel VP Lg Cap Val, Cl 3 4,302,757 Sel VP Sm Cap Val, Cl 3 2,418,906 THDL VP Emer Mkts, Cl 3 157,089,601 THDL VP Intl Opp, Cl 3 10,488,640 VanK LIT Comstock, Cl II 143,723,671 VanK UIF Global Real Est, Cl II 51,573,454 VanK UIF Mid Cap Gro, Cl II 9,610,533 Wanger Intl 195,967,798 Wanger USA 66,580,979 WF Adv VT Index Asset Alloc 1,608,148 WF Adv VT Intl Core 686,849 WF Adv VT Opp 2,627,989 WF Adv VT Sm Cap Gro 15,774,551 - -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 52 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 8. ACCUMULATION UNIT VALUES, UNITS OUTSTANDING AND NET ASSETS The following is a summary of accumulation unit values at Dec. 31, 2009:
INVESCO INVESCO INVESCO INVESCO INVESCO VI GLOBAL VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, HLTH, SUBACCOUNT SER II SER II SER I SER I SER II -------------------------------------------------------------------- 0.55% $0.86 $1.21 $1.04 $0.55 $1.02 0.75% 0.85 1.19 1.03 0.54 1.01 0.85% 0.82 0.89 -- -- 1.07 0.95% 0.84 1.17 1.01 0.53 1.01 1.00% 0.89 1.23 1.11 0.56 1.00 1.05% 0.81 0.89 -- -- 1.06 1.10% 0.81 0.88 -- -- 1.06 1.20% 0.88 1.21 1.09 0.56 1.00 1.25% -- -- -- -- -- 1.25% 0.81 0.88 -- -- 1.06 1.30% 0.81 0.88 -- -- 1.05 1.45% 0.80 0.87 -- -- 1.05 - --------------------------------------------------------------------------------------------------------------------
AB VPS INVESCO INVESCO GLOBAL AB VPS AB VPS VI INTL GRO, VI TECH, THEMATIC GRO & INC, INTL VAL, SUBACCOUNT SER II SER I GRO, CL B CL B CL B -------------------------------------------------------------------- 0.55% $1.25 $0.75 $1.08 $0.97 $1.66 0.75% 1.24 0.73 1.07 0.95 1.63 0.85% 1.11 -- 1.09 0.86 0.80 0.95% 1.23 0.72 1.07 0.93 1.61 1.00% 1.23 0.84 1.06 1.01 1.67 1.05% 1.10 -- 1.08 0.85 0.80 1.10% 1.10 -- 1.08 0.85 0.80 1.20% 1.22 0.83 1.05 1.00 1.64 1.25% -- -- -- -- -- 1.25% 1.09 -- 1.07 0.84 0.79 1.30% 1.09 -- 1.07 0.84 0.79 1.45% 1.08 -- 1.06 0.84 0.79 - --------------------------------------------------------------------------------------------------------------------
AC VP AC VP AC VP AC VP CALVERT INTL, MID CAP VAL, ULTRA, VAL, VS SUBACCOUNT CL II CL II CL II CL II SOCIAL BAL -------------------------------------------------------------------- 0.55% $1.24 $0.88 $0.93 $1.31 $0.99 0.75% 1.22 0.87 0.92 1.29 0.97 0.85% -- 1.08 0.96 0.94 -- 0.95% 1.20 0.87 0.91 1.27 0.95 1.00% 1.38 0.87 0.91 1.26 1.08 1.05% -- 1.07 0.96 0.93 -- 1.10% -- 1.07 0.95 0.93 -- 1.20% 1.36 0.86 0.90 1.24 1.06 1.25% -- -- -- -- -- 1.25% -- 1.07 0.95 0.93 -- 1.30% -- 1.06 0.95 0.93 -- 1.45% -- 1.06 0.94 0.92 -- - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 53
EV VT COL COL MARSICO CS FLOATING- EG VA MARSICO GRO, INTL OPP, COMMODITY RATE FUNDAMENTAL SUBACCOUNT VS CL A VS CL B RETURN INC LG CAP, CL 2 -------------------------------------------------------------------- 0.55% $0.91 $0.89 $0.89 $1.08 $1.09 0.75% 0.90 0.89 0.88 1.08 1.08 0.85% 0.96 1.00 0.92 1.07 1.07 0.95% 0.89 0.88 0.88 1.07 1.06 1.00% 0.89 0.88 0.87 1.07 1.17 1.05% 0.95 0.99 0.91 1.06 1.07 1.10% 0.95 0.99 0.91 1.06 1.06 1.20% 0.89 0.87 0.87 1.06 1.16 1.25% -- -- -- -- -- 1.25% 0.95 0.98 0.91 1.05 1.06 1.30% 0.95 0.98 0.91 1.05 1.06 1.45% 0.94 0.98 0.90 1.05 1.05 - --------------------------------------------------------------------------------------------------------------------
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, SUBACCOUNT CL 2 SERV CL 2 SERV CL 2 SERV CL 2 SERV CL 2 -------------------------------------------------------------------- 0.55% $1.23 $0.93 $1.04 $1.99 $1.35 0.75% 1.22 0.92 1.02 1.96 1.33 0.85% 0.89 0.97 -- 1.04 0.94 0.95% 1.20 0.91 1.00 1.93 1.31 1.00% 1.20 0.91 1.04 1.86 1.45 1.05% 0.88 0.97 -- 1.03 0.93 1.10% 0.88 0.97 -- 1.03 0.93 1.20% 1.18 0.90 1.02 1.84 1.43 1.25% -- -- -- -- -- 1.25% 0.87 0.96 -- 1.02 0.92 1.30% 0.87 0.96 -- 1.02 0.92 1.45% 0.87 0.95 -- 1.01 0.92 - -------------------------------------------------------------------------------------------------------------------
FTVIPT FRANK FTVIPT GLOBAL REAL FTVIPT FRANK MUTUAL GS VIT GS VIT EST, SM CAP VAL, SHARES MID CAP VAL, STRUCTD U.S. SUBACCOUNT CL 2 CL 2 SEC, CL 2 INST EQ, INST -------------------------------------------------------------------- 0.55% $1.75 $2.07 $1.23 $2.30 $0.87 0.75% 1.71 2.02 1.21 2.26 0.85 0.85% 0.64 0.90 0.91 -- 0.83 0.95% 1.68 1.98 1.19 2.21 0.84 1.00% 1.25 1.51 1.26 1.63 1.01 1.05% 0.64 0.89 0.91 -- 0.82 1.10% 0.64 0.89 0.90 -- 0.82 1.20% 1.23 1.48 1.24 1.60 0.99 1.25% -- -- -- -- -- 1.25% 0.63 0.89 0.91 -- 0.81 1.30% 0.63 0.89 0.90 -- 0.81 1.45% 0.62 0.88 0.90 -- 0.81 - -------------------------------------------------------------------------------------------------------------------
MFS JANUS ASPEN JANUS ASPEN JANUS ASPEN INV GRO MFS GLOBAL JANUS, OVERSEAS, STOCK, NEW DIS, SUBACCOUNT TECH, SERV SERV SERV SERV CL SERV CL -------------------------------------------------------------------- 0.55% $0.46 $0.86 $1.47 $0.68 $1.00 0.75% 0.45 0.85 1.44 0.67 0.98 0.85% -- 0.85 -- 1.04 -- 0.95% 0.44 0.85 1.41 0.66 0.96 1.00% 1.12 0.85 2.49 1.03 1.14 1.05% -- 0.85 -- 1.04 -- 1.10% -- 0.85 -- 1.03 -- 1.20% 1.11 0.84 2.45 1.01 1.12 1.25% -- -- -- -- -- 1.25% -- 0.84 -- 1.03 -- 1.30% -- 0.84 -- 1.03 -- 1.45% -- 0.84 -- 1.02 -- - -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 54 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
OPPEN OPPEN MFS NB AMT OPPEN MAIN ST SM GLOBAL UTILITIES, INTL, GLOBAL SEC CAP STRATEGIC SUBACCOUNT SERV CL CL S VA, SERV VA, SERV INC VA, SERV -------------------------------------------------------------------- 0.55% $1.86 $0.76 $1.33 $1.18 $1.27 0.75% 1.83 0.76 1.31 1.17 1.25 0.85% 1.28 0.85 1.00 0.90 1.17 0.95% 1.80 0.75 1.30 1.16 1.24 1.00% 2.25 0.75 1.29 1.15 1.24 1.05% 1.27 0.85 1.00 0.89 1.16 1.10% 1.26 0.84 0.99 0.89 1.16 1.20% 2.21 0.75 1.28 1.14 1.22 1.25% -- -- -- -- -- 1.25% 1.26 0.84 0.99 0.89 1.15 1.30% 1.26 0.84 0.99 0.88 1.15 1.45% 1.25 0.83 0.98 0.88 1.14 - -------------------------------------------------------------------------------------------------------------------
PIMCO PUT VT VIT ALL GLOBAL HLTH PUT VT PUT VT DISC ASSET, CARE, INTL EQ, VISTA, ASSET ALLOC, SUBACCOUNT ADVISOR CL CL IB CL IB CL IB AGGR -------------------------------------------------------------------- 0.55% $1.13 $1.15 $1.23 $0.83 $0.87 0.75% 1.13 1.13 1.21 0.82 0.87 0.85% 1.15 -- -- -- 0.87 0.95% 1.12 1.11 1.19 0.80 0.87 1.00% 1.12 1.15 1.30 1.00 0.87 1.05% 1.14 -- -- -- 0.87 1.10% 1.14 -- -- -- 0.87 1.20% 1.11 1.13 1.28 0.98 0.86 1.25% -- -- -- -- -- 1.25% 1.14 -- -- -- 0.86 1.30% 1.13 -- -- -- 0.86 1.45% 1.13 -- -- -- 0.86 - -------------------------------------------------------------------------------------------------------------------
DISC DISC DISC DISC VP DAVIS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, NY VENTURE, SUBACCOUNT CONSERV MOD MOD AGGR MOD CONSERV CL 3 -------------------------------------------------------------------- 0.55% $0.98 $0.91 $0.89 $0.94 $0.90 0.75% 0.98 0.91 0.89 0.94 0.89 0.85% 0.97 0.91 0.89 0.94 0.91 0.95% 0.97 0.91 0.89 0.94 0.88 1.00% 0.97 0.91 0.89 0.93 0.88 1.05% 0.97 0.91 0.89 0.93 0.91 1.10% 0.97 0.90 0.89 0.93 0.90 1.20% 0.97 0.90 0.89 0.93 0.87 1.25% -- -- -- -- -- 1.25% 0.97 0.90 0.88 0.93 0.90 1.30% 0.97 0.90 0.88 0.93 0.90 1.45% 0.96 0.90 0.88 0.93 0.89 - -------------------------------------------------------------------------------------------------------------------
VP GS VP PTNRS RVS VP RVS VP RVS VP MID CAP VAL, SM CAP VAL, BAL, CASH DIV SUBACCOUNT CL 3 CL 3 CL 3 MGMT, CL 3 BOND, CL 3 -------------------------------------------------------------------- 0.55% $1.17 $1.68 $1.09 $1.24 $1.51 0.75% 1.16 1.66 1.07 1.22 1.48 0.85% 0.99 0.97 0.97 1.07 1.16 0.95% 1.14 1.63 1.04 1.19 1.45 1.00% 1.14 1.54 1.16 1.09 1.27 1.05% 0.98 0.97 0.97 1.06 1.15 1.10% 0.98 0.97 0.97 1.06 1.14 1.20% 1.12 1.52 1.14 1.07 1.25 1.25% -- -- 0.96 1.05 1.14 1.25% 0.97 0.96 1.60 1.31 1.58 1.30% 0.97 0.96 0.96 1.05 1.14 1.45% 0.97 0.95 0.95 1.04 1.13 - -------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 55
RVS VP GLOBAL RVS VP RVS VP RVS VP INFLATION RVS VP DIV EQ DYN GLOBAL PROT SEC, CL HI YIELD SUBACCOUNT INC, CL 3 EQ, CL 3 BOND, CL 3 3 BOND, CL 3 -------------------------------------------------------------------- 0.55% $1.47 $0.70 $1.72 $1.20 $1.61 0.75% 1.45 0.69 1.68 1.19 1.57 0.85% 0.90 0.83 1.23 1.16 1.23 0.95% 1.42 0.68 1.65 1.18 1.54 1.00% 1.44 0.86 1.60 1.17 1.64 1.05% 0.90 0.83 1.22 1.15 1.22 1.10% 0.89 0.82 1.21 1.15 1.22 1.20% 1.41 0.92 1.58 1.16 1.62 1.25% 0.89 0.82 1.21 -- 1.21 1.25% 1.38 1.09 1.77 1.15 1.72 1.30% 0.89 0.82 1.21 1.14 1.21 1.45% 0.88 0.81 1.20 1.14 1.21 - -------------------------------------------------------------------------------------------------------------------
RVS VP RVS VP RVS VP RVS VP RVS VP SHORT INC MID CAP MID CAP S&P 500, DURATION, CL SUBACCOUNT OPP, CL 3 GRO, CL 3 VAL, CL 3 CL 3 3 -------------------------------------------------------------------- 0.55% $1.34 $1.26 $1.15 $0.83 $1.36 0.75% 1.33 1.22 1.14 0.81 1.33 0.85% 1.24 1.05 0.91 0.93 1.09 0.95% 1.31 1.20 1.13 0.80 1.30 1.00% 1.31 1.24 1.12 1.05 1.13 1.05% 1.23 1.04 0.90 0.92 1.08 1.10% 1.23 1.04 0.90 0.92 1.08 1.20% 1.29 1.22 1.11 1.03 1.12 1.25% -- 1.04 -- -- -- 1.25% 1.22 0.95 0.90 0.91 1.07 1.30% 1.22 1.04 0.90 0.91 1.07 1.45% 1.21 1.03 0.89 0.91 1.07 - --------------------------------------------------------------------------------------------------------------------
SEL SEL VP SEL VP THDL VP THDL VP VP LG CAP SM CAP EMER INTL SUBACCOUNT GRO, CL 3 VAL, CL 3 VAL, CL 3 MKTS, CL 3 OPP, CL 3 -------------------------------------------------------------------- 0.55% $0.57 $1.01 $1.44 $2.31 $0.96 0.75% 0.56 1.00 1.42 2.23 0.94 0.85% 0.87 0.86 0.88 1.46 0.98 0.95% 0.55 0.99 1.39 2.19 0.92 1.00% 0.89 0.98 1.34 2.92 1.45 1.05% 0.86 0.86 0.87 1.45 0.98 1.10% 0.86 0.85 0.87 1.45 0.97 1.20% 0.88 0.97 1.32 2.87 1.42 1.25% -- -- -- 1.44 0.97 1.25% 0.86 0.85 0.87 1.81 1.24 1.30% 0.86 0.85 0.87 1.44 0.97 1.45% 0.85 0.84 0.86 1.43 0.96 - --------------------------------------------------------------------------------------------------------------------
VANK UIF VANK LIT GLOBAL VANK UIF COMSTOCK, REAL EST, CL MID CAP GRO, WANGER WANGER SUBACCOUNT CL II II CL II INTL USA -------------------------------------------------------------------- 0.55% $1.09 $0.87 $1.00 $2.15 $1.71 0.75% 1.08 0.86 0.99 2.11 1.67 0.85% 0.89 0.90 1.08 1.15 0.95 0.95% 1.07 0.86 0.98 2.06 1.64 1.00% 1.06 0.86 0.98 2.49 1.46 1.05% 0.88 0.90 1.07 1.14 0.95 1.10% 0.88 0.89 1.07 1.14 0.94 1.20% 1.05 0.85 0.98 2.45 1.43 1.25% -- -- -- -- -- 1.25% 0.88 0.89 1.07 1.13 0.94 1.30% 0.88 0.89 1.06 1.13 0.94 1.45% 0.87 0.88 1.06 1.12 0.93 - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 56 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
WF ADV WF ADV WF ADV WF ADV VT INDEX VT VT VT SUBACCOUNT ASSET ALLOC INTL CORE OPP SM CAP GRO ------------------------------------------------------ 0.55% $1.12 $0.91 $1.28 $1.20 0.75% 1.10 0.90 1.26 1.18 0.85% -- -- 1.03 1.14 0.95% 1.08 0.88 1.24 1.16 1.00% 1.14 1.03 1.29 1.34 1.05% -- -- 1.02 1.13 1.10% -- -- 1.02 1.13 1.20% 1.12 1.02 1.27 1.31 1.25% -- -- -- -- 1.25% -- -- 1.01 1.12 1.30% -- -- 1.01 1.12 1.45% -- -- 1.00 1.11 - -------------------------------------------------------------------------------------------------------------
The following is a summary of units outstanding at Dec. 31, 2009:
INVESCO INVESCO INVESCO INVESCO INVESCO VI GLOBAL VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, HLTH, SUBACCOUNT SER II SER II SER I SER I SER II -------------------------------------------------------------------- 0.55% 450,787 53,904 3,100 606,420 402,838 0.75% 67,781,528 13,228,687 3,764,404 14,876,580 8,088,864 0.85% 3,102,723 2,424,490 -- -- 3,257,736 0.95% 33,205,396 7,715,160 2,073,342 8,566,933 5,414,198 1.00% 10,743,788 1,576,101 249,608 2,151,365 955,633 1.05% 1,760,833 1,623,130 -- -- 2,339,318 1.10% 504,022 1,176,652 -- -- 922,948 1.20% 4,611,526 991,510 145,127 1,003,266 587,192 1.25% -- -- -- -- -- 1.25% 68,592 107,553 -- -- 42,329 1.30% 334,323 668,264 -- -- 583,261 1.45% 142,654 78,505 -- -- 166,086 - -------------------------------------------------------------------------------------------------------------------- Total 122,706,172 29,643,956 6,235,581 27,204,564 22,760,403 - --------------------------------------------------------------------------------------------------------------------
AB VPS INVESCO INVESCO GLOBAL AB VPS AB VPS VI INTL GRO, VI TECH, THEMATIC GRO & INC, INTL VAL, SUBACCOUNT SER II SER I GRO, CL B CL B CL B -------------------------------------------------------------------- 0.55% 2,657,672 411,105 68,982 387,636 1,925,380 0.75% 128,526,448 21,730,280 5,298,716 68,594,818 150,691,972 0.85% 238,183,083 -- 3,313,327 6,136,235 130,093,782 0.95% 76,800,843 11,446,205 3,654,410 41,870,634 93,057,740 1.00% 14,695,332 2,935,486 609,148 7,705,342 19,906,436 1.05% 94,818,493 -- 1,422,004 3,605,980 55,081,670 1.10% 69,225,184 -- 1,056,666 2,039,227 40,250,026 1.20% 7,082,568 1,450,330 547,891 4,257,791 9,980,918 1.25% -- -- -- -- -- 1.25% 3,232,261 -- 84,004 219,640 2,587,907 1.30% 29,798,560 -- 418,604 732,805 17,832,939 1.45% 3,323,375 -- 214,833 212,144 2,690,899 - -------------------------------------------------------------------------------------------------------------------- Total 668,343,819 37,973,406 16,688,585 135,762,252 524,099,669 - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 57
AC VP AC VP AC VP AC VP CALVERT INTL, MID CAP VAL, ULTRA, VAL, VS SUBACCOUNT CL II CL II CL II CL II SOCIAL BAL -------------------------------------------------------------------- 0.55% 263,067 1,288,571 90,647 468,926 10,071 0.75% 26,574,813 48,043,557 11,804,534 72,598,239 15,940,465 0.85% -- 71,543,906 3,364,888 12,296,330 -- 0.95% 15,628,455 25,355,325 6,956,560 48,731,049 9,851,597 1.00% 3,809,936 5,341,105 1,814,972 11,067,605 1,705,558 1.05% -- 25,533,936 1,872,382 9,000,181 -- 1.10% -- 17,412,828 820,976 4,264,215 -- 1.20% 2,014,614 2,523,241 1,098,136 6,158,140 858,160 1.25% -- -- -- -- -- 1.25% -- 844,457 96,041 752,643 -- 1.30% -- 6,246,642 481,628 3,160,023 -- 1.45% -- 729,613 46,912 880,834 -- - -------------------------------------------------------------------------------------------------------------------- Total 48,290,885 204,863,181 28,447,676 169,378,185 28,365,851 - --------------------------------------------------------------------------------------------------------------------
EV VT COL COL MARSICO CS FLOATING- EG VA MARSICO GRO, INTL OPP, COMMODITY RATE FUNDAMENTAL SUBACCOUNT VS CL A VS CL B RETURN INC LG CAP, CL 2 ---------------------------------------------------------------------- 0.55% 7,497,033 809,791 604,780 2,786,769 -- 0.75% 378,240,457 32,787,988 39,766,541 162,181,272 13,118,142 0.85% 626,487,325 10,384,881 8,767,761 261,015,104 3,772,126 0.95% 214,161,166 20,723,206 26,662,095 105,964,285 9,198,502 1.00% 47,207,643 4,015,806 6,588,950 20,977,037 807,927 1.05% 250,317,283 6,843,699 6,272,053 118,217,798 3,082,123 1.10% 185,351,302 4,453,884 4,737,410 85,892,081 1,476,070 1.20% 22,026,161 2,195,238 2,966,047 12,791,727 797,161 1.25% -- -- -- -- -- 1.25% 8,902,990 522,552 768,981 5,344,492 167,651 1.30% 81,378,160 2,414,384 2,321,008 44,354,515 1,233,059 1.45% 9,757,245 668,061 1,097,232 8,752,678 409,602 - ---------------------------------------------------------------------------------------------------------------------- Total 1,831,326,765 85,819,490 100,552,858 828,277,758 34,062,363 - ----------------------------------------------------------------------------------------------------------------------
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, SUBACCOUNT CL 2 SERV CL 2 SERV CL 2 SERV CL 2 SERV CL 2 -------------------------------------------------------------------- 0.55% 2,398,468 4,367,736 805,442 2,734,041 557,893 0.75% 113,413,933 269,589,421 92,558,505 187,651,569 43,314,079 0.85% 298,705,548 180,001,193 -- 199,837,221 10,921,356 0.95% 69,836,196 167,695,577 57,593,231 106,478,938 29,953,559 1.00% 15,465,627 32,815,410 10,988,420 28,494,202 5,075,319 1.05% 122,714,391 80,198,472 -- 79,887,728 5,547,874 1.10% 91,808,622 55,492,015 -- 55,297,591 1,987,832 1.20% 8,151,606 15,948,640 6,235,649 14,163,947 3,135,024 1.25% -- -- -- -- -- 1.25% 4,686,214 4,468,304 -- 3,635,550 448,934 1.30% 42,774,831 26,261,758 -- 23,688,338 1,555,656 1.45% 5,716,983 4,857,218 -- 3,813,209 682,678 - -------------------------------------------------------------------------------------------------------------------- Total 775,672,419 841,695,744 168,181,247 705,682,334 103,180,204 - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 58 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
FTVIPT FRANK FTVIPT GLOBAL REAL FTVIPT FRANK MUTUAL GS VIT GS VIT EST, SM CAP VAL, SHARES MID CAP VAL, STRUCTD U.S. SUBACCOUNT CL 2 CL 2 SEC, CL 2 INST EQ, INST -------------------------------------------------------------------- 0.55% 231,623 351,798 525,279 921,946 826,263 0.75% 50,766,814 42,024,566 57,678,446 78,043,046 108,297,543 0.85% 13,464,982 13,708,764 17,364,665 -- 7,238,294 0.95% 31,073,179 28,729,885 39,361,476 51,883,396 70,758,487 1.00% 7,137,178 7,198,189 10,912,993 12,872,315 11,037,487 1.05% 5,633,440 6,618,808 12,441,378 -- 3,784,172 1.10% 3,723,840 3,930,053 7,365,722 -- 1,363,981 1.20% 4,145,079 3,457,127 5,705,197 7,668,693 5,507,710 1.25% -- -- -- -- -- 1.25% 599,794 327,760 935,570 -- 278,328 1.30% 2,585,806 1,834,306 5,084,062 -- 697,909 1.45% 592,706 717,310 1,338,203 -- 224,412 - -------------------------------------------------------------------------------------------------------------------- Total 119,954,441 108,898,566 158,712,991 151,389,396 210,014,586 - --------------------------------------------------------------------------------------------------------------------
MFS JANUS ASPEN JANUS ASPEN JANUS ASPEN INV GRO MFS GLOBAL JANUS, OVERSEAS, STOCK, NEW DIS, SUBACCOUNT TECH, SERV SERV SERV SERV CL SERV CL ---------------------------------------------------------------------- 0.55% 40,871 6,879,618 395,270 405,718 189,804 0.75% 27,957,107 305,122,729 61,695,723 67,421,474 28,886,592 0.85% -- 639,871,670 -- 2,648,076 -- 0.95% 19,312,496 168,562,456 46,611,823 44,234,678 20,432,432 1.00% 384,484 38,560,024 1,272,151 4,222,428 2,165,884 1.05% -- 250,167,298 -- 1,651,301 -- 1.10% -- 186,397,214 -- 1,309,432 -- 1.20% 178,474 18,450,381 805,898 2,149,011 1,541,909 1.25% -- -- -- -- -- 1.25% -- 8,361,358 -- 341,213 -- 1.30% -- 80,098,884 -- 698,408 -- 1.45% -- 9,009,102 -- 223,191 -- - ---------------------------------------------------------------------------------------------------------------------- Total 47,873,432 1,711,480,734 110,780,865 125,304,930 53,216,621 - ----------------------------------------------------------------------------------------------------------------------
OPPEN OPPEN MFS NB AMT OPPEN MAIN ST GLOBAL UTILITIES, INTL, GLOBAL SEC SM CAP STRATEGIC SUBACCOUNT SERV CL CL S VA, SERV VA, SERV INC VA, SERV ---------------------------------------------------------------------- 0.55% 561,509 1,717,680 604,203 716,942 8,633,957 0.75% 56,323,709 75,726,208 31,542,886 23,658,120 519,119,029 0.85% 17,912,203 137,643,729 7,911,465 8,025,618 577,447,586 0.95% 35,891,204 40,525,416 21,262,666 15,633,605 350,909,503 1.00% 5,018,907 9,497,761 6,423,023 5,662,672 70,681,014 1.05% 10,419,540 52,313,514 5,429,983 5,411,079 270,231,106 1.10% 4,766,095 38,615,299 2,661,503 3,622,550 187,935,690 1.20% 3,343,195 4,087,838 3,413,518 2,509,973 45,739,354 1.25% -- -- -- -- -- 1.25% 498,956 1,621,874 630,784 378,447 13,257,700 1.30% 4,001,423 15,761,122 1,749,931 1,891,492 104,395,229 1.45% 891,624 1,599,915 678,551 266,388 20,034,277 - ---------------------------------------------------------------------------------------------------------------------- Total 139,628,365 379,110,356 82,308,513 67,776,886 2,168,384,445 - ----------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 59
PUT VT PIMCO GLOBAL HLTH PUT VT PUT VT DISC VIT ALL ASSET, CARE, INTL EQ, VISTA, ASSET ALLOC, SUBACCOUNT ADVISOR CL CL IB CL IB CL IB AGGR ---------------------------------------------------------------------- 0.55% 3,430,862 27,160 56,872 149,159 913,600 0.75% 218,702,462 12,725,043 16,371,735 21,580,541 11,668,894 0.85% 351,435,446 -- -- -- 1,743,216 0.95% 127,628,671 7,348,580 10,503,718 15,528,933 5,500,230 1.00% 26,403,273 2,116,204 1,819,362 518,238 897,425 1.05% 143,533,838 -- -- -- 904,010 1.10% 106,124,572 -- -- -- 524,634 1.20% 15,666,544 935,867 1,045,957 185,808 333,970 1.25% -- -- -- -- -- 1.25% 5,694,867 -- -- -- 89,772 1.30% 48,833,871 -- -- -- 324,667 1.45% 7,053,948 -- -- -- 13,473 - ---------------------------------------------------------------------------------------------------------------------- Total 1,054,508,354 23,152,854 29,797,644 37,962,679 22,913,891 - ----------------------------------------------------------------------------------------------------------------------
DISC DISC DISC DISC VP DAVIS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, NY VENTURE, SUBACCOUNT CONSERV MOD MOD AGGR MOD CONSERV CL 3 ---------------------------------------------------------------------- 0.55% 50,063 40,582 83,243 3,328 7,044,679 0.75% 16,032,399 45,179,799 27,719,684 22,560,011 303,536,981 0.85% 2,302,204 6,969,934 3,707,487 3,756,367 634,378,642 0.95% 12,467,389 26,564,870 15,190,561 16,601,544 163,841,190 1.00% 1,848,929 2,698,038 2,942,253 2,684,721 38,319,515 1.05% 2,574,564 4,378,368 1,983,455 2,673,055 244,848,534 1.10% 1,687,544 2,246,275 1,800,390 1,814,957 182,361,708 1.20% 2,129,947 2,219,458 872,898 1,964,153 17,878,796 1.25% -- -- -- -- -- 1.25% 672,692 1,148,736 134,044 602,876 7,801,551 1.30% 1,345,716 867,565 393,924 1,041,342 76,995,423 1.45% 374,960 581,383 169,465 637,419 7,955,605 - ---------------------------------------------------------------------------------------------------------------------- Total 41,486,407 92,895,008 54,997,404 54,339,773 1,684,962,624 - ----------------------------------------------------------------------------------------------------------------------
VP GS VP PTNRS RVS VP RVS VP RVS VP MID CAP VAL, SM CAP VAL, BAL, CASH DIV SUBACCOUNT CL 3 CL 3 CL 3 MGMT, CL 3 BOND, CL 3 ---------------------------------------------------------------------- 0.55% 176,010 3,209,746 733,374 2,492,444 10,140,195 0.75% 5,203,143 149,190,690 74,528,943 197,288,405 638,983,649 0.85% 738,394 373,857,065 9,917,973 56,313,065 972,288,759 0.95% 3,164,803 81,110,821 55,352,997 140,418,547 447,493,206 1.00% 521,944 20,098,543 8,437,840 23,076,205 89,692,464 1.05% 791,548 145,259,580 7,468,003 40,033,534 442,738,147 1.10% 179,448 107,086,699 4,083,680 19,629,534 328,316,147 1.20% 388,998 9,298,435 6,111,275 14,860,609 58,421,023 1.25% -- -- 873,766 7,804,680 21,366,439 1.25% 31,910 4,673,647 50,261,057 26,428,983 62,550,710 1.30% 158,134 44,669,153 2,916,631 14,791,522 167,503,248 1.45% 151,418 4,518,420 906,773 11,290,614 31,929,277 - ---------------------------------------------------------------------------------------------------------------------- Total 11,505,750 942,972,799 221,592,312 554,428,142 3,271,423,264 - ----------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 60 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
RVS VP RVS VP RVS VP RVS VP GLOBAL RVS VP DIV EQ DYN GLOBAL INFLATION HI YIELD SUBACCOUNT INC, CL 3 EQ, CL 3 BOND, CL 3 PROT SEC, CL 3 BOND, CL 3 -------------------------------------------------------------------------- 0.55% 7,610,353 876,966 3,215,336 5,705,371 639,402 0.75% 508,060,830 257,536,571 195,536,059 302,523,880 137,349,865 0.85% 784,643,876 1,264,377 313,653,207 489,118,471 18,657,688 0.95% 307,580,757 147,939,139 137,253,221 192,220,015 111,733,551 1.00% 59,080,334 16,369,565 24,423,423 40,367,030 10,599,949 1.05% 313,086,051 1,184,507 143,161,006 214,008,464 12,920,596 1.10% 227,241,683 375,137 103,932,819 157,674,662 5,553,117 1.20% 30,183,128 6,294,550 16,121,044 25,535,690 9,679,710 1.25% 11,781,050 159,580 7,312,015 -- 731,593 1.25% 77,782,461 134,225,028 18,435,781 9,807,546 34,092,438 1.30% 98,889,720 304,012 53,805,149 79,689,516 4,226,895 1.45% 12,785,428 89,030 9,992,991 13,552,818 1,815,528 - -------------------------------------------------------------------------------------------------------------------------- Total 2,438,725,671 566,618,462 1,026,842,051 1,530,203,463 348,000,332 - --------------------------------------------------------------------------------------------------------------------------
RVS VP RVS VP RVS VP RVS VP RVS VP SHORT INC MID CAP MID CAP S&P 500, DURATION, CL SUBACCOUNT OPP, CL 3 GRO, CL 3 VAL, CL 3 CL 3 3 ---------------------------------------------------------------------- 0.55% 5,110,792 363,189 1,292,363 741,071 825,170 0.75% 229,076,212 40,215,440 57,404,556 91,207,834 109,059,311 0.85% 425,766,932 3,391,981 66,735,435 5,694,265 19,314,203 0.95% 141,698,327 26,342,689 32,037,288 65,625,683 88,306,265 1.00% 29,265,989 2,136,864 6,369,722 6,574,786 11,597,478 1.05% 180,300,681 2,465,988 26,537,526 3,970,908 14,488,042 1.10% 132,844,413 898,777 16,209,308 1,603,426 6,712,259 1.20% 17,729,807 1,372,379 2,952,352 4,567,728 11,134,751 1.25% -- 95,098 -- -- -- 1.25% 7,104,127 36,757,118 950,829 294,017 2,470,330 1.30% 62,855,507 529,254 6,757,715 911,239 6,518,697 1.45% 8,735,002 178,235 929,326 727,508 4,922,222 - ---------------------------------------------------------------------------------------------------------------------- Total 1,240,487,789 114,747,012 218,176,420 181,918,465 275,348,728 - ----------------------------------------------------------------------------------------------------------------------
SEL SEL VP SEL VP THDL VP THDL VP VP LG CAP SM CAP EMER INTL SUBACCOUNT GRO, CL 3 VAL, CL 3 VAL, CL 3 MKTS, CL 3 OPP, CL 3 -------------------------------------------------------------------- 0.55% 2,259,591 195,124 57,331 1,522,018 909,968 0.75% 147,034,146 6,269,124 21,859,415 80,593,030 48,442,441 0.85% 4,122,606 914,597 1,459,321 96,670,337 4,460,139 0.95% 90,929,603 3,736,386 15,188,831 47,288,642 35,420,684 1.00% 9,724,799 519,515 1,760,296 7,244,922 3,118,212 1.05% 2,841,421 752,795 1,106,529 37,952,034 3,620,390 1.10% 1,096,394 285,530 361,864 25,932,105 1,873,230 1.20% 4,530,028 428,796 970,791 3,600,384 1,829,423 1.25% -- -- -- 1,478,151 271,477 1.25% 254,921 53,464 82,776 47,141,875 51,868,790 1.30% 473,479 274,222 284,978 10,719,291 1,357,861 1.45% 245,080 17,352 90,071 1,329,505 250,022 - -------------------------------------------------------------------------------------------------------------------- Total 263,512,068 13,446,905 43,222,203 361,472,294 153,422,637 - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 61
VANK UIF VANK LIT GLOBAL VANK UIF COMSTOCK, REAL EST, CL MID CAP GRO, WANGER WANGER SUBACCOUNT CL II II CL II INTL USA -------------------------------------------------------------------- 0.55% 2,639,435 1,793,502 355,622 2,333,608 2,350,092 0.75% 178,985,564 67,174,337 18,479,137 131,325,831 155,213,493 0.85% 201,934,070 96,053,795 5,604,152 187,502,424 153,936,359 0.95% 95,224,235 38,793,695 12,049,237 80,521,997 100,879,200 1.00% 32,587,037 10,213,505 2,147,786 14,207,751 23,568,215 1.05% 81,027,486 38,110,230 3,042,647 75,441,108 60,871,462 1.10% 59,456,888 28,363,256 1,864,932 52,683,920 42,794,767 1.20% 15,447,216 4,848,426 1,239,773 7,019,811 11,266,337 1.25% -- -- -- -- -- 1.25% 3,239,846 1,305,869 205,525 2,663,815 2,462,662 1.30% 26,276,632 11,746,094 1,329,453 22,621,857 18,457,683 1.45% 3,609,974 1,187,505 214,806 2,621,769 2,189,329 - -------------------------------------------------------------------------------------------------------------------- Total 700,428,383 299,590,214 46,533,070 578,943,891 573,989,599 - --------------------------------------------------------------------------------------------------------------------
WF ADV WF ADV WF ADV WF ADV VT INDEX VT VT VT SUBACCOUNT ASSET ALLOC INTL CORE OPP SM CAP GRO ------------------------------------------------------ 0.55% 3,935 1,175 298,232 224,778 0.75% 19,120,427 4,273,350 19,019,417 31,042,192 0.85% -- -- 2,178,051 7,415,592 0.95% 15,302,767 3,262,727 11,212,013 20,853,250 1.00% 2,083,438 374,821 2,701,396 2,879,427 1.05% -- -- 1,197,008 4,668,946 1.10% -- -- 701,190 1,953,089 1.20% 1,011,782 147,084 1,067,407 1,387,640 1.25% -- -- -- -- 1.25% -- -- 60,767 259,851 1.30% -- -- 325,213 1,279,164 1.45% -- -- 55,007 376,664 - ------------------------------------------------------------------------------------------------------------- Total 37,522,349 8,059,157 38,815,701 72,340,593 - -------------------------------------------------------------------------------------------------------------
The following is a summary of net assets at Dec. 31, 2009:
INVESCO INVESCO INVESCO INVESCO INVESCO VI GLOBAL VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, HLTH, SUBACCOUNT SER II SER II SER I SER I SER II -------------------------------------------------------------------- 0.55% $ 389,513 $ 65,258 $ 3,230 $ 334,390 $ 411,052 0.75% 57,594,432 15,741,951 3,871,259 8,062,476 8,195,118 0.85% 2,545,579 2,167,934 -- -- 3,487,195 0.95% 27,756,947 9,040,828 2,098,671 4,567,055 5,445,285 1.00% 9,553,711 1,938,884 276,080 1,215,458 959,385 1.05% 1,434,384 1,437,916 -- -- 2,485,486 1.10% 409,866 1,040,592 -- -- 978,930 1.20% 4,036,402 1,200,600 158,007 557,879 585,213 1.25% -- -- -- -- -- 1.25% 55,476 94,613 -- -- 44,664 1.30% 269,941 586,668 -- -- 614,214 1.45% 114,605 68,578 -- -- 174,003 - -------------------------------------------------------------------------------------------------------------------- Total $104,160,856 $33,383,822 $6,407,247 $14,737,258 $23,380,545 - --------------------------------------------------------------------------------------------------------------------
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AB VPS INVESCO INVESCO GLOBAL AB VPS AB VPS VI INTL GRO, VI TECH, THEMATIC GRO & INC, INTL VAL, SUBACCOUNT SER II SER I GRO, CL B CL B CL B -------------------------------------------------------------------- 0.55% $ 3,332,872 $ 307,087 $ 74,640 $ 374,810 $ 3,266,303 0.75% 159,899,993 15,962,289 5,705,216 65,247,636 246,344,713 0.85% 263,562,876 -- 3,596,314 5,269,947 104,393,325 0.95% 94,745,138 8,268,359 3,926,582 39,193,617 149,850,214 1.00% 18,086,659 2,479,808 647,684 7,818,819 33,187,081 1.05% 104,188,186 -- 1,541,323 3,114,694 43,961,899 1.10% 75,928,802 -- 1,136,841 1,731,134 32,013,980 1.20% 8,644,490 1,205,798 577,700 4,252,843 16,401,401 1.25% -- -- -- -- -- 1.25% 3,526,654 -- 89,901 185,410 2,047,452 1.30% 32,454,819 -- 447,119 617,696 14,084,195 1.45% 3,600,441 -- 228,299 177,880 2,118,638 - -------------------------------------------------------------------------------------------------------------------- Total $767,970,930 $28,223,341 $17,971,619 $127,984,486 $647,669,201 - --------------------------------------------------------------------------------------------------------------------
AC VP AC VP AC VP AC VP CALVERT INTL, MID CAP VAL, ULTRA, VAL, VS SUBACCOUNT CL II CL II CL II CL II SOCIAL BAL -------------------------------------------------------------------- 0.55% $ 326,144 $ 1,128,907 $ 84,218 $ 614,476 $ 9,919 0.75% 32,426,048 41,873,949 10,883,182 93,632,542 15,435,767 0.85% -- 77,276,804 3,237,151 11,572,827 -- 0.95% 18,835,337 22,021,817 6,355,406 61,947,906 9,378,308 1.00% 5,272,991 4,623,309 1,654,631 13,901,257 1,837,530 1.05% -- 27,407,851 1,788,468 8,411,064 -- 1.10% -- 18,643,326 782,893 3,978,063 -- 1.20% 2,749,232 2,172,442 992,778 7,613,345 910,022 1.25% -- -- -- -- -- 1.25% -- 899,312 90,948 698,423 -- 1.30% -- 6,640,799 456,026 2,927,008 -- 1.45% -- 771,538 44,204 811,632 -- - -------------------------------------------------------------------------------------------------------------------- Total $59,609,752 $203,460,054 $26,369,905 $206,108,543 $27,571,546 - --------------------------------------------------------------------------------------------------------------------
EV VT COL COL MARSICO CS FLOATING- EG VA MARSICO GRO, INTL OPP, COMMODITY RATE FUNDAMENTAL SUBACCOUNT VS CL A VS CL B RETURN INC LG CAP, CL 2 ---------------------------------------------------------------------- 0.55% $ 6,917,782 $ 724,360 $ 537,751 $ 3,022,354 $ 80 0.75% 340,709,837 29,141,155 35,082,213 174,690,097 14,121,699 0.85% 602,448,850 10,406,971 8,078,561 279,252,035 4,067,901 0.95% 191,660,252 18,427,039 23,356,845 113,366,916 9,774,672 1.00% 42,131,713 3,533,048 5,756,636 22,386,548 948,269 1.05% 239,020,777 6,782,264 5,744,620 125,596,443 3,286,063 1.10% 176,671,833 4,406,150 4,325,728 91,085,739 1,570,944 1.20% 19,513,366 1,921,885 2,572,285 13,547,893 936,667 1.25% -- -- -- -- -- 1.25% 8,441,275 514,195 698,613 5,637,492 177,521 1.30% 77,028,138 2,371,744 2,104,314 46,705,571 1,303,148 1.45% 9,185,909 652,741 989,650 9,167,906 499,500 - ---------------------------------------------------------------------------------------------------------------------- Total $1,713,729,732 $78,881,552 $89,247,216 $884,458,994 $36,686,464 - ----------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 63
EG VA FID VIP FID VIP FID VIP FID VIP INTL EQ, CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, SUBACCOUNT CL 2 SERV CL 2 SERV CL 2 SERV CL 2 SERV CL 2 ---------------------------------------------------------------------- 0.55% $ 2,950,441 $ 4,046,495 $ 834,885 $ 5,451,411 $ 754,049 0.75% 137,945,116 248,408,181 94,516,106 368,277,592 57,714,987 0.85% 264,515,781 175,505,474 -- 206,997,051 10,257,223 0.95% 83,919,475 153,424,903 57,857,278 205,756,629 39,281,094 1.00% 18,519,196 29,925,564 11,417,563 53,138,294 7,354,508 1.05% 107,897,916 77,695,215 -- 82,195,623 5,168,879 1.10% 80,581,691 53,616,592 -- 56,773,192 1,846,857 1.20% 9,644,479 14,433,588 6,377,267 26,007,507 4,471,801 1.25% -- -- -- -- -- 1.25% 4,091,457 4,294,457 -- 3,712,726 414,945 1.30% 37,279,570 25,195,594 -- 24,148,891 1,435,185 1.45% 4,956,413 4,635,442 -- 3,871,676 626,497 - ---------------------------------------------------------------------------------------------------------------------- Total $752,301,535 $791,181,505 $171,003,099 $1,036,330,592 $129,326,025 - ----------------------------------------------------------------------------------------------------------------------
FTVIPT FRANK FTVIPT GLOBAL REAL FTVIPT FRANK MUTUAL GS VIT GS VIT EST, SM CAP VAL, SHARES MID CAP VAL, STRUCTD U.S. SUBACCOUNT CL 2 CL 2 SEC, CL 2 INST EQ, INST -------------------------------------------------------------------- 0.55% $ 408,855 $ 727,130 $ 648,131 $ 2,124,567 $ 734,805 0.75% 87,075,858 85,213,359 70,120,312 176,438,422 92,499,495 0.85% 8,667,350 12,332,715 15,844,483 -- 5,981,269 0.95% 52,295,409 57,069,467 47,029,044 114,888,347 59,192,145 1.00% 8,928,985 10,834,163 13,724,983 20,981,173 11,110,548 1.05% 3,599,982 5,912,233 11,272,225 -- 3,138,508 1.10% 2,375,672 3,504,347 6,661,782 -- 1,117,062 1.20% 5,109,745 5,121,870 7,080,544 12,303,764 5,457,363 1.25% -- -- -- -- -- 1.25% 377,031 291,290 847,748 -- 226,725 1.30% 1,637,988 1,624,126 4,565,903 -- 567,636 1.45% 369,976 633,151 1,204,117 -- 181,606 - -------------------------------------------------------------------------------------------------------------------- Total $170,846,851 $183,263,851 $178,999,272 $326,736,273 $180,207,162 - --------------------------------------------------------------------------------------------------------------------
MFS JANUS ASPEN JANUS ASPEN JANUS ASPEN INV GRO MFS GLOBAL JANUS, OVERSEAS, STOCK, NEW DIS, SUBACCOUNT TECH, SERV SERV SERV SERV CL SERV CL ---------------------------------------------------------------------- 0.55% $ 18,685 $ 5,907,254 $ 579,465 $ 276,526 $ 189,514 0.75% 12,536,869 260,605,734 88,782,858 45,112,835 28,318,396 0.85% -- 545,041,457 -- 2,760,542 -- 0.95% 8,639,762 143,207,677 65,962,950 29,082,579 19,651,184 1.00% 431,701 32,713,446 3,163,273 4,345,275 2,472,690 1.05% -- 211,953,957 -- 1,709,330 -- 1.10% -- 157,718,686 -- 1,353,050 -- 1.20% 197,247 15,569,517 1,972,479 2,176,797 1,732,925 1.25% -- -- -- -- -- 1.25% -- 7,046,325 -- 350,700 -- 1.30% -- 67,412,564 -- 716,641 -- 1.45% -- 7,551,544 -- 227,792 -- - ---------------------------------------------------------------------------------------------------------------------- Total $21,824,264 $1,454,728,161 $160,461,025 $88,112,067 $52,364,709 - ----------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 64 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
OPPEN OPPEN MFS NB AMT OPPEN MAIN ST GLOBAL UTILITIES, INTL, GLOBAL SEC SM CAP STRATEGIC SUBACCOUNT SERV CL CL S VA, SERV VA, SERV INC VA, SERV ---------------------------------------------------------------------- 0.55% $ 1,047,067 $ 1,313,592 $ 806,427 $ 848,166 $ 11,234,129 0.75% 103,535,495 57,488,504 41,512,486 27,660,135 651,508,634 0.85% 22,843,436 117,217,800 7,936,356 7,213,221 674,863,174 0.95% 64,845,537 30,551,465 27,709,839 18,125,139 435,661,083 1.00% 11,287,743 7,144,435 8,315,605 6,521,273 87,391,904 1.05% 13,194,713 44,235,555 5,450,091 4,829,069 313,713,330 1.10% 6,024,808 32,595,315 2,646,220 3,227,244 217,685,490 1.20% 7,401,361 3,052,254 4,366,836 2,856,123 55,844,395 1.25% -- -- -- -- -- 1.25% 627,356 1,361,984 623,898 335,403 15,274,605 1.30% 5,022,594 13,210,354 1,727,652 1,673,173 120,053,324 1.45% 1,113,292 1,333,850 720,258 234,294 22,918,474 - ---------------------------------------------------------------------------------------------------------------------- Total $236,943,402 $309,505,108 $101,815,668 $73,523,240 $2,606,148,542 - ----------------------------------------------------------------------------------------------------------------------
PUT VT PIMCO GLOBAL HLTH PUT VT PUT VT DISC VIT ALL ASSET, CARE, INTL EQ, VISTA, ASSET ALLOC, SUBACCOUNT ADVISOR CL CL IB CL IB CL IB AGGR ---------------------------------------------------------------------- 0.55% $ 3,893,556 $ 31,071 $ 69,776 $ 124,199 $ 796,941 0.75% 246,484,304 14,389,715 19,762,926 17,687,172 10,169,088 0.85% 404,638,169 -- -- -- 1,523,758 0.95% 142,922,147 8,173,629 12,486,089 12,437,387 4,898,939 1.00% 29,453,750 2,435,968 2,363,230 516,543 778,816 1.05% 164,099,356 -- -- -- 783,874 1.10% 121,107,838 -- -- -- 454,542 1.20% 17,357,801 1,060,322 1,337,298 182,310 288,881 1.25% -- -- -- -- -- 1.25% 6,464,743 -- -- -- 77,588 1.30% 55,333,140 -- -- -- 280,354 1.45% 8,021,245 -- -- -- 11,670 - ---------------------------------------------------------------------------------------------------------------------- Total $1,199,776,049 $26,090,705 $36,019,319 $30,947,611 $20,064,451 - ----------------------------------------------------------------------------------------------------------------------
DISC DISC DISC DISC VP DAVIS ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, NY VENTURE, SUBACCOUNT CONSERV MOD MOD AGGR MOD CONSERV CL 3 ---------------------------------------------------------------------- 0.55% $ 48,842 $ 36,828 $ 73,979 $ 3,207 $ 6,352,792 0.75% 15,634,819 41,217,835 24,771,950 21,172,489 269,751,280 0.85% 2,241,377 6,353,933 3,338,476 3,519,461 578,794,694 0.95% 12,229,798 24,127,739 13,936,209 15,542,911 144,610,868 1.00% 1,795,564 2,444,784 2,613,428 2,509,085 33,741,751 1.05% 2,565,996 4,146,853 1,844,114 2,496,160 221,836,161 1.10% 1,636,114 2,032,010 1,596,566 1,693,428 164,930,039 1.20% 2,061,599 2,004,473 772,755 1,829,568 15,627,995 1.25% -- -- -- -- -- 1.25% 650,579 1,036,602 118,572 561,089 7,018,593 1.30% 1,300,370 782,303 348,186 968,368 69,147,290 1.45% 361,418 522,843 215,347 591,256 7,107,191 - ---------------------------------------------------------------------------------------------------------------------- Total $40,526,476 $84,706,203 $49,629,582 $50,887,022 $1,518,918,654 - ----------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 65
VP GS VP PTNRS RVS VP RVS VP RVS VP MID CAP VAL, SM CAP VAL, BAL, CASH DIV SUBACCOUNT CL 3 CL 3 CL 3 MGMT, CL 3 BOND, CL 3 ------------------------------------------------------------------------ 0.55% $ 205,767 $ 5,397,169 $ 1,046,102 $ 3,090,794 $ 15,321,115 0.75% 6,010,946 247,611,124 79,853,545 239,875,759 947,184,950 0.85% 728,610 364,102,846 9,663,985 60,078,305 1,123,097,945 0.95% 3,620,210 132,471,495 58,468,726 167,240,787 650,058,363 1.00% 594,001 30,940,308 9,872,095 25,092,723 114,009,524 1.05% 775,612 140,485,943 7,315,582 42,414,122 507,910,704 1.10% 175,529 103,376,165 3,944,224 20,761,648 375,941,327 1.20% 437,441 14,105,870 6,989,825 15,904,916 73,150,883 1.25% -- -- 839,571 8,211,572 24,335,321 1.25% 31,046 4,488,037 82,384,836 34,737,555 100,722,220 1.30% 153,590 42,818,228 2,797,167 15,533,927 190,444,555 1.45% 146,303 4,308,508 865,208 11,796,137 36,123,301 - ------------------------------------------------------------------------------------------------------------------------ Total $12,879,055 $1,090,105,693 $264,040,866 $644,738,245 $4,158,300,208 - ------------------------------------------------------------------------------------------------------------------------
RVS VP RVS VP RVS VP RVS VP GLOBAL RVS VP DIV EQ DYN GLOBAL INFLATION HI YIELD SUBACCOUNT INC, CL 3 EQ, CL 3 BOND, CL 3 PROT SEC, CL 3 BOND, CL 3 -------------------------------------------------------------------------- 0.55% $ 11,349,379 $ 618,249 $ 5,516,363 $ 6,843,687 $ 1,027,609 0.75% 738,847,322 178,573,317 328,904,191 359,939,924 216,864,629 0.85% 707,466,868 1,050,827 384,483,622 568,729,455 22,988,743 0.95% 438,796,210 100,842,574 226,307,807 226,216,418 172,921,887 1.00% 85,363,917 14,093,661 39,133,013 47,380,637 17,438,364 1.05% 280,369,015 977,558 174,302,607 247,094,842 15,807,970 1.10% 203,099,762 309,044 126,275,365 181,730,209 6,795,125 1.20% 42,679,949 5,798,932 25,432,627 29,657,028 15,887,071 1.25% 10,473,668 130,774 8,837,338 -- 888,763 1.25% 108,756,793 149,510,722 32,892,170 11,244,325 59,754,976 1.30% 87,760,145 248,691 64,915,597 91,203,767 5,126,102 1.45% 11,286,784 72,445 11,992,782 15,429,005 2,190,151 - -------------------------------------------------------------------------------------------------------------------------- Total $2,726,249,812 $452,226,794 $1,428,993,482 $1,785,469,297 $537,691,390 - --------------------------------------------------------------------------------------------------------------------------
RVS VP RVS VP RVS VP RVS VP RVS VP SHORT INC MID CAP MID CAP S&P 500, DURATION, CL SUBACCOUNT OPP, CL 3 GRO, CL 3 VAL, CL 3 CL 3 3 ---------------------------------------------------------------------- 0.55% $ 6,846,588 $ 457,688 $ 1,488,057 $ 611,644 $ 1,123,160 0.75% 303,783,963 49,177,139 65,257,942 74,599,271 145,214,173 0.85% 526,507,191 3,566,947 60,712,040 5,282,215 21,019,585 0.95% 185,893,699 31,636,881 36,090,199 52,709,719 115,099,433 1.00% 38,283,738 2,641,139 7,167,567 6,902,254 13,155,820 1.05% 221,437,744 2,575,011 23,986,179 3,694,607 15,721,663 1.10% 162,845,265 949,267 14,616,838 1,474,384 7,241,001 1.20% 22,953,696 1,685,421 3,285,499 4,720,330 12,444,973 1.25% -- 98,605 -- -- -- 1.25% 8,662,713 35,199,469 852,789 268,939 2,650,936 1.30% 76,513,864 547,829 6,050,857 832,027 6,982,972 1.45% 10,633,899 183,516 827,735 660,760 5,244,920 - ---------------------------------------------------------------------------------------------------------------------- Total $1,564,362,360 $128,718,912 $220,335,702 $151,756,150 $345,898,636 - ----------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 66 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
SEL SEL VP SEL VP THDL VP THDL VP VP LG CAP SM CAP EMER INTL SUBACCOUNT GRO, CL 3 VAL, CL 3 VAL, CL 3 MKTS, CL 3 OPP, CL 3 -------------------------------------------------------------------- 0.55% $ 1,283,435 $ 197,249 $ 82,834 $ 3,514,036 $ 874,134 0.75% 83,149,307 6,262,406 31,185,360 179,952,004 45,634,644 0.85% 3,588,915 788,841 1,284,638 140,957,070 4,382,774 0.95% 50,247,365 3,697,732 21,170,685 103,682,617 32,830,285 1.00% 8,668,468 511,256 2,359,227 21,172,177 4,512,154 1.05% 2,456,277 646,671 967,250 54,958,804 3,531,705 1.10% 958,229 244,111 315,762 37,481,557 1,824,195 1.20% 3,982,222 416,963 1,280,720 10,349,764 2,605,687 1.25% -- -- -- 2,125,142 262,974 1.25% 218,824 45,469 71,849 85,684,688 65,366,097 1.30% 405,716 232,809 246,926 15,384,704 1,313,018 1.45% 208,896 14,652 77,636 1,897,990 240,484 - -------------------------------------------------------------------------------------------------------------------- Total $155,167,654 $13,058,159 $59,042,887 $657,160,553 $163,378,151 - --------------------------------------------------------------------------------------------------------------------
VANK UIF VANK LIT GLOBAL VANK UIF COMSTOCK, REAL EST, CL MID CAP GRO, WANGER WANGER SUBACCOUNT CL II II CL II INTL USA -------------------------------------------------------------------- 0.55% $ 2,880,584 $ 1,559,094 $ 355,459 $ 5,018,658 $ 4,008,371 0.75% 193,052,965 57,974,979 18,345,374 276,863,910 259,503,914 0.85% 179,825,273 86,685,119 6,061,261 214,972,306 146,594,570 0.95% 101,552,258 33,259,033 11,868,028 166,437,513 165,330,921 1.00% 34,620,386 8,733,116 2,111,549 35,357,419 34,353,091 1.05% 71,642,155 34,180,303 3,267,704 85,894,020 57,584,688 1.10% 52,477,931 25,371,054 1,999,307 59,870,756 40,395,092 1.20% 16,228,125 4,115,207 1,209,911 17,206,208 16,170,643 1.25% -- -- -- -- -- 1.25% 2,844,442 1,161,764 219,186 3,011,182 2,312,340 1.30% 23,029,532 10,433,059 1,415,403 25,526,749 17,300,748 1.45% 3,147,129 1,049,186 263,899 2,942,815 2,041,256 - -------------------------------------------------------------------------------------------------------------------- Total $681,300,780 $264,521,914 $47,117,081 $893,101,536 $745,595,634 - --------------------------------------------------------------------------------------------------------------------
WF ADV WF ADV WF ADV WF ADV VT INDEX VT VT VT SUBACCOUNT ASSET ALLOC INTL CORE OPP SM CAP GRO ------------------------------------------------------ 0.55% $ 4,406 $ 1,071 $ 381,077 $ 269,007 0.75% 21,162,700 3,830,608 23,906,360 36,509,350 0.85% -- -- 2,234,843 8,424,618 0.95% 16,647,017 2,883,081 13,861,774 24,161,488 1.00% 2,374,686 386,916 3,475,279 3,845,405 1.05% -- -- 1,219,495 5,266,563 1.10% -- -- 713,156 2,199,391 1.20% 1,135,167 149,437 1,351,554 1,824,075 1.25% -- -- -- -- 1.25% -- -- 61,476 291,072 1.30% -- -- 328,439 1,430,088 1.45% -- -- 55,259 418,947 - ------------------------------------------------------------------------------------------------------------- Total $41,323,976 $7,251,113 $47,588,712 $84,640,004 - -------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 67 9. FINANCIAL HIGHLIGHTS The following is a summary for each period in the five year period ended Dec. 31, 2009 of units, net assets and investment income ratios in addition to the accumulation unit values, total returns and expense ratios for variable annuity contracts with the highest and lowest expense.
AT DEC. 31 ---------------------------------------------- FOR THE YEAR ENDED DEC. 31 ACCUMULATION ---------------------------------------------------------------- UNIT VALUE INVESTMENT EXPENSE RATIO UNITS LOWEST TO NET ASSETS INCOME LOWEST TO TOTAL RETURN (000S) HIGHEST (000S) RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- INVESCO VI CAP APPR, SER II 2009 122,706 $0.86 to $0.80 $104,161 0.28% 0.55% to 1.45% 20.06% to 18.98% 2008 139,781 $0.72 to $0.68 $99,172 -- 0.55% to 1.45% (42.94%) to (43.45%) 2007 165,546 $1.26 to $1.19 $206,589 -- 0.55% to 1.45% 11.12% to 10.12% 2006 198,366 $1.14 to $1.08 $223,712 -- 0.55% to 1.45% 5.48% to 8.06%(7) 2005 236,683 $1.08 to $1.12 $254,026 -- 0.55% to 1.20% 7.98% to 7.29% - -------------------------------------------------------------------------------------------------------------------- INVESCO VI CAP DEV, SER II 2009 29,644 $1.21 to $0.87 $33,384 -- 0.55% to 1.45% 41.21% to 39.95% 2008 36,124 $0.86 to $0.62 $29,143 -- 0.55% to 1.45% (47.42%) to (47.89%) 2007 49,607 $1.63 to $1.20 $76,866 -- 0.55% to 1.45% 9.94% to 8.95% 2006 48,026 $1.48 to $1.10 $69,832 -- 0.55% to 1.45% 15.62% to 9.49%(7) 2005 42,661 $1.28 to $1.32 $54,342 -- 0.55% to 1.20% 8.67% to 7.97% - -------------------------------------------------------------------------------------------------------------------- INVESCO VI DYN, SER I 2009 6,236 $1.04 to $1.09 $6,407 -- 0.55% to 1.20% 41.66% to 40.74% 2008 7,742 $0.74 to $0.77 $5,632 -- 0.55% to 1.20% (48.36%) to (48.70%) 2007 10,864 $1.43 to $1.51 $15,341 -- 0.55% to 1.20% 11.57% to 10.84% 2006 12,477 $1.28 to $1.36 $15,850 -- 0.55% to 1.20% 15.48% to 14.73% 2005 14,869 $1.11 to $1.19 $16,410 -- 0.55% to 1.20% 10.12% to 9.40% - -------------------------------------------------------------------------------------------------------------------- INVESCO VI FIN SERV, SER I 2009 27,205 $0.55 to $0.56 $14,737 3.47% 0.55% to 1.20% 26.73% to 25.91% 2008 25,119 $0.44 to $0.44 $10,755 3.06% 0.55% to 1.20% (59.67%) to (59.93%) 2007 16,657 $1.08 to $1.10 $17,731 1.48% 0.55% to 1.20% (22.65%) to (23.15%) 2006 21,798 $1.39 to $1.43 $30,102 1.72% 0.55% to 1.20% 15.81% to 15.06% 2005 19,311 $1.20 to $1.25 $23,108 1.42% 0.55% to 1.20% 5.33% to 4.65% - -------------------------------------------------------------------------------------------------------------------- INVESCO VI GLOBAL HLTH, SER II 2009 22,760 $1.02 to $1.05 $23,381 0.13% 0.55% to 1.45% 26.69% to 25.56% 2008 21,604 $0.81 to $0.83 $17,564 -- 0.55% to 1.45% (29.17%) to (29.81%) 2007 16,065 $1.14 to $1.19 $18,500 -- 0.55% to 1.45% 10.90% to 9.90% 2006 87,789 $1.03 to $1.08 $91,682 -- 0.55% to 1.45% 3.11%(6) to 8.12%(7) 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- INVESCO VI INTL GRO, SER II 2009 668,344 $1.25 to $1.08 $767,971 1.54% 0.55% to 1.45% 34.17% to 32.97% 2008 537,767 $0.93 to $0.81 $461,509 0.72% 0.55% to 1.45% (40.87%) to (41.40%) 2007 234,064 $1.58 to $1.39 $342,381 0.86% 0.55% to 1.45% 13.82% to 12.79% 2006 5,226 $1.39 to $1.23 $7,023 1.97% 0.55% to 1.45% 27.18% to 22.52%(7) 2005 247 $1.09 to $1.09 $269 4.53% 0.55% to 1.20% 8.28%(5) to 8.17%(5) - -------------------------------------------------------------------------------------------------------------------- INVESCO VI TECH, SER I 2009 37,973 $0.75 to $0.83 $28,223 -- 0.55% to 1.20% 56.53% to 55.52% 2008 32,201 $0.48 to $0.53 $15,360 -- 0.55% to 1.20% (44.81%) to (45.17%) 2007 36,520 $0.86 to $0.98 $31,644 -- 0.55% to 1.20% 7.11% to 6.41% 2006 43,391 $0.81 to $0.92 $35,223 -- 0.55% to 1.20% 9.88% to 9.17% 2005 54,315 $0.73 to $0.84 $40,261 -- 0.55% to 1.20% 1.61% to 0.96% - -------------------------------------------------------------------------------------------------------------------- AB VPS GLOBAL THEMATIC GRO, CL B 2009 16,689 $1.08 to $1.06 $17,972 -- 0.55% to 1.45% 52.30% to 50.94% 2008 10,970 $0.71 to $0.70 $7,758 -- 0.55% to 1.45% (47.75%) to (48.22%) 2007 10,650 $1.36 to $1.36 $14,458 -- 0.55% to 1.45% 19.23% to 18.16% 2006 33,897 $1.14 to $1.15 $38,748 -- 0.55% to 1.45% 7.79% to 14.78%(7) 2005 3,446 $1.06 to $1.06 $3,648 -- 0.55% to 1.20% 5.87%(5) to 5.76%(5) - -------------------------------------------------------------------------------------------------------------------- AB VPS GRO & INC, CL B 2009 135,762 $0.97 to $0.84 $127,984 3.51% 0.55% to 1.45% 19.69% to 18.62% 2008 166,185 $0.81 to $0.71 $131,669 1.86% 0.55% to 1.45% (41.02%) to (41.55%) 2007 229,216 $1.37 to $1.21 $309,274 1.21% 0.55% to 1.45% 4.28% to 3.34% 2006 255,691 $1.31 to $1.17 $333,791 1.18% 0.55% to 1.45% 16.34% to 16.48%(7) 2005 277,477 $1.13 to $1.20 $312,799 1.25% 0.55% to 1.20% 4.02% to 3.35% - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 68 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
AT DEC. 31 ---------------------------------------------- FOR THE YEAR ENDED DEC. 31 ACCUMULATION ---------------------------------------------------------------- UNIT VALUE INVESTMENT EXPENSE RATIO UNITS LOWEST TO NET ASSETS INCOME LOWEST TO TOTAL RETURN (000S) HIGHEST (000S) RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- AB VPS INTL VAL, CL B 2009 524,100 $1.66 to $0.79 $647,669 0.86% 0.55% to 1.45% 33.62% to 32.42% 2008 949,299 $1.24 to $0.59 $803,095 0.88% 0.55% to 1.45% (53.54%) to (53.96%) 2007 690,850 $2.68 to $1.29 $1,443,988 0.99% 0.55% to 1.45% 5.00% to 4.05% 2006 453,282 $2.55 to $1.24 $1,057,187 1.25% 0.55% to 1.45% 34.38% to 23.04%(7) 2005 292,660 $1.90 to $1.92 $551,186 0.47% 0.55% to 1.20% 15.88% to 15.13% - -------------------------------------------------------------------------------------------------------------------- AC VP INTL, CL II 2009 48,291 $1.24 to $1.36 $59,610 2.03% 0.55% to 1.20% 32.90% to 32.04% 2008 60,221 $0.93 to $1.03 $56,142 0.69% 0.55% to 1.20% (45.20%) to (45.56%) 2007 77,918 $1.70 to $1.90 $132,920 0.54% 0.55% to 1.20% 17.27% to 16.51% 2006 84,429 $1.45 to $1.63 $123,392 1.41% 0.55% to 1.20% 24.06% to 23.26% 2005 82,367 $1.17 to $1.32 $97,265 0.91% 0.55% to 1.20% 12.49% to 11.76% - -------------------------------------------------------------------------------------------------------------------- AC VP MID CAP VAL, CL II 2009 204,863 $0.88 to $1.06 $203,460 3.96% 0.55% to 1.45% 29.09% to 27.93% 2008 242,955 $0.68 to $0.83 $187,536 0.08% 0.55% to 1.45% (24.92%) to (25.60%) 2007 258,311 $0.90 to $1.11 $266,954 1.22% 0.55% to 1.45% (10.10%)(8)to (3.84%) 2006 2,743 $1.16 to $1.16 $3,176 2.31% 0.85% to 1.45% 15.32%(7) to 14.97%(7) 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- AC VP ULTRA, CL II 2009 28,448 $0.93 to $0.94 $26,370 0.17% 0.55% to 1.45% 33.78% to 32.59% 2008 31,148 $0.69 to $0.71 $21,629 -- 0.55% to 1.45% (41.97%) to (42.49%) 2007 30,854 $1.20 to $1.24 $36,976 -- 0.55% to 1.45% 20.18% to 19.09% 2006 202,331 $1.00 to $1.04 $203,885 -- 0.55% to 1.45% (3.92%) to 3.52%(7) 2005 18,578 $1.04 to $1.04 $19,240 -- 0.55% to 1.20% 3.73%(5) to 3.62%(5) - -------------------------------------------------------------------------------------------------------------------- AC VP VAL, CL II 2009 169,378 $1.31 to $0.92 $206,109 5.47% 0.55% to 1.45% 19.07% to 18.00% 2008 188,664 $1.10 to $0.78 $195,491 2.48% 0.55% to 1.45% (27.20%) to (27.86%) 2007 262,020 $1.51 to $1.08 $377,643 1.42% 0.55% to 1.45% (5.83%) to (6.68%) 2006 279,304 $1.61 to $1.16 $437,608 1.20% 0.55% to 1.45% 17.82% to 15.39%(7) 2005 281,618 $1.36 to $1.32 $378,826 0.64% 0.55% to 1.20% 4.28% to 3.61% - -------------------------------------------------------------------------------------------------------------------- CALVERT VS SOCIAL BAL 2009 28,366 $0.99 to $1.06 $27,572 2.08% 0.55% to 1.20% 24.60% to 23.80% 2008 33,641 $0.79 to $0.86 $26,299 2.23% 0.55% to 1.20% (31.70%) to (32.14%) 2007 43,038 $1.16 to $1.26 $49,435 2.28% 0.55% to 1.20% 2.19% to 1.53% 2006 49,741 $1.13 to $1.24 $56,142 2.32% 0.55% to 1.20% 8.18% to 7.48% 2005 48,625 $1.05 to $1.16 $50,853 1.93% 0.55% to 1.20% 5.07% to 4.39% - -------------------------------------------------------------------------------------------------------------------- COL MARSICO GRO, VS CL A 2009 1,831,327 $0.91 to $0.94 $1,713,730 0.88% 0.55% to 1.45% 25.97% to 24.84% 2008 1,298,131 $0.72 to $0.75 $963,953 0.35% 0.55% to 1.45% (39.78%) to (40.32%) 2007 766,013 $1.20 to $1.26 $944,664 0.07% 0.55% to 1.45% 16.83% to 15.78% 2006 317,946 $1.02 to $1.09 $331,754 -- 0.55% to 1.45% 2.95%(6) to 8.65%(7) 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- COL MARSICO INTL OPP, VS CL B 2009 85,819 $0.89 to $0.98 $78,882 1.87% 0.55% to 1.45% 37.19% to 35.96% 2008 103,623 $0.65 to $0.72 $69,405 1.37% 0.55% to 1.45% (48.77%) to (49.23%) 2007 80,923 $1.27 to $1.42 $105,483 0.17% 0.55% to 1.45% 19.02% to 17.94% 2006 153,627 $1.07 to $1.20 $169,998 0.53% 0.55% to 1.45% 6.74%(6) to 19.72%(7) 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- CS COMMODITY RETURN 2009 100,553 $0.89 to $0.90 $89,247 12.32% 0.55% to 1.45% 18.82% to 17.75% 2008 78,360 $0.75 to $0.77 $58,691 1.33% 0.55% to 1.45% (34.09%) to (34.69%) 2007 45,930 $1.13 to $1.17 $52,380 4.11% 0.55% to 1.45% 16.68% to 15.63% 2006 139,243 $0.97 to $1.01 $137,218 4.43% 0.55% to 1.45% (4.10%)(6)to 0.65%(7) 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- EV VT FLOATING-RATE INC 2009 828,278 $1.08 to $1.05 $884,459 4.79% 0.55% to 1.45% 43.52% to 42.23% 2008 581,542 $0.76 to $0.74 $434,439 5.74% 0.55% to 1.45% (27.54%) to (28.19%) 2007 469,434 $1.04 to $1.03 $485,908 6.25% 0.55% to 1.45% 1.08% to 0.16% 2006 298,230 $1.03 to $1.02 $306,684 6.14% 0.55% to 1.45% 3.18%(6) to 2.50%(7) 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 69
AT DEC. 31 ---------------------------------------------- FOR THE YEAR ENDED DEC. 31 ACCUMULATION ---------------------------------------------------------------- UNIT VALUE INVESTMENT EXPENSE RATIO UNITS LOWEST TO NET ASSETS INCOME LOWEST TO TOTAL RETURN (000S) HIGHEST (000S) RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- EG VA FUNDAMENTAL LG CAP, CL 2 2009 34,062 $1.09 to $1.05 $36,686 1.18% 0.55% to 1.45% 35.00% to 33.79% 2008 26,241 $0.81 to $0.79 $21,028 1.24% 0.55% to 1.45% (33.37%) to (33.97%) 2007 27,463 $1.22 to $1.19 $33,191 0.87% 0.55% to 1.45% 7.42% to 6.45% 2006 28,846 $1.13 to $1.12 $32,620 0.98% 0.55% to 1.45% 11.78% to 11.31%(7) 2005 30,155 $1.01 to $1.10 $30,645 0.82% 0.55% to 1.20% 8.15% to 7.45% - -------------------------------------------------------------------------------------------------------------------- EG VA INTL EQ, CL 2 2009 775,672 $1.23 to $0.87 $752,302 0.46% 0.55% to 1.45% 14.84% to 13.81% 2008 36,966 $1.07 to $0.76 $36,330 -- 0.55% to 1.45% (41.92%) to (42.44%) 2007 46,006 $1.84 to $1.32 $79,458 2.23% 0.55% to 1.45% 14.09% to 13.07% 2006 45,619 $1.62 to $1.17 $71,677 3.71% 0.55% to 1.45% 22.21% to 16.75%(7) 2005 33,531 $1.32 to $1.31 $44,080 3.25% 0.55% to 1.20% 15.04% to 14.30% - -------------------------------------------------------------------------------------------------------------------- FID VIP CONTRAFUND, SERV CL 2 2009 841,696 $0.93 to $0.95 $791,182 0.94% 0.55% to 1.45% 34.73% to 33.52% 2008 1,455,857 $0.69 to $0.71 $1,023,890 0.96% 0.55% to 1.45% (43.01%) to (43.52%) 2007 1,018,249 $1.21 to $1.27 $1,258,736 0.89% 0.55% to 1.45% 16.66% to 15.61% 2006 622,501 $1.03 to $1.09 $654,611 1.75% 0.55% to 1.45% 3.50%(6) to 8.94%(7) 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- FID VIP GRO & INC, SERV CL 2 2009 168,181 $1.04 to $1.02 $171,003 0.83% 0.55% to 1.20% 26.32% to 25.50% 2008 209,939 $0.82 to $0.81 $169,597 0.85% 0.55% to 1.20% (42.22%) to (42.59%) 2007 278,465 $1.42 to $1.42 $390,431 1.39% 0.55% to 1.20% 11.24% to 10.52% 2006 329,942 $1.28 to $1.28 $417,155 0.71% 0.55% to 1.20% 12.24% to 11.51% 2005 358,054 $1.14 to $1.15 $404,610 1.30% 0.55% to 1.20% 6.81% to 6.12% - -------------------------------------------------------------------------------------------------------------------- FID VIP MID CAP, SERV CL 2 2009 705,682 $1.99 to $1.01 $1,036,331 0.43% 0.55% to 1.45% 38.98% to 37.74% 2008 913,300 $1.43 to $0.74 $965,638 0.25% 0.55% to 1.45% (39.94%) to (40.48%) 2007 738,939 $2.39 to $1.24 $1,459,930 0.49% 0.55% to 1.45% 14.70% to 13.67% 2006 624,914 $2.08 to $1.09 $1,208,847 0.16% 0.55% to 1.45% 11.79% to 8.10%(7) 2005 496,239 $1.86 to $1.76 $908,519 1.41% 0.55% to 1.20% 17.37% to 16.61% - -------------------------------------------------------------------------------------------------------------------- FID VIP OVERSEAS, SERV CL 2 2009 103,180 $1.35 to $0.92 $129,326 1.88% 0.55% to 1.45% 25.53% to 24.40% 2008 123,289 $1.08 to $0.74 $125,026 2.18% 0.55% to 1.45% (44.27%) to (44.77%) 2007 146,997 $1.93 to $1.34 $272,379 2.91% 0.55% to 1.45% 16.41% to 15.36% 2006 151,362 $1.66 to $1.16 $248,078 0.65% 0.55% to 1.45% 17.13% to 15.34%(7) 2005 136,453 $1.42 to $1.53 $193,596 0.49% 0.55% to 1.20% 18.13% to 17.37% - -------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK GLOBAL REAL EST, CL 2 2009 119,954 $1.75 to $0.62 $170,847 12.90% 0.55% to 1.45% 18.43% to 17.37% 2008 143,021 $1.48 to $0.53 $177,416 1.02% 0.55% to 1.45% (42.71%) to (43.22%) 2007 204,660 $2.58 to $0.94 $456,336 2.45% 0.55% to 1.45% (21.30%) to (22.01%) 2006 257,421 $3.27 to $1.20 $773,536 2.06% 0.55% to 1.45% 19.92% to 19.66%(7) 2005 266,642 $2.73 to $1.97 $690,004 1.39% 0.55% to 1.20% 12.85% to 12.12% - -------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK SM CAP VAL, CL 2 2009 108,899 $2.07 to $0.88 $183,264 1.66% 0.55% to 1.45% 28.45% to 27.30% 2008 128,040 $1.61 to $0.69 $173,195 1.15% 0.55% to 1.45% (33.38%) to (33.98%) 2007 157,429 $2.42 to $1.05 $329,244 0.65% 0.55% to 1.45% (2.92%) to (3.79%) 2006 166,830 $2.49 to $1.09 $380,878 0.64% 0.55% to 1.45% 16.34% to 7.75%(7) 2005 156,167 $2.14 to $1.57 $316,893 0.75% 0.55% to 1.20% 8.17% to 7.47% - -------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SEC, CL 2 2009 158,713 $1.23 to $0.90 $178,999 1.91% 0.55% to 1.45% 25.36% to 24.23% 2008 186,091 $0.98 to $0.72 $169,267 2.85% 0.55% to 1.45% (37.45%) to (38.01%) 2007 248,867 $1.57 to $1.17 $367,471 1.44% 0.55% to 1.45% 2.91% to 1.98% 2006 207,209 $1.53 to $1.15 $309,114 1.28% 0.55% to 1.45% 17.73% to 13.33%(7) 2005 151,140 $1.30 to $1.34 $196,107 0.87% 0.55% to 1.20% 9.95% to 9.24% - -------------------------------------------------------------------------------------------------------------------- GS VIT MID CAP VAL, INST 2009 151,389 $2.30 to $1.60 $326,736 1.73% 0.55% to 1.20% 32.42% to 31.56% 2008 191,346 $1.74 to $1.22 $312,184 0.90% 0.55% to 1.20% (37.40%) to (37.80%) 2007 278,223 $2.78 to $1.96 $726,483 0.70% 0.55% to 1.20% 2.63% to 1.97% 2006 327,755 $2.71 to $1.92 $835,018 0.90% 0.55% to 1.20% 15.53% to 14.78% 2005 345,787 $2.34 to $1.68 $765,494 0.70% 0.55% to 1.20% 12.21% to 11.48% - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 70 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
AT DEC. 31 ---------------------------------------------- FOR THE YEAR ENDED DEC. 31 ACCUMULATION ---------------------------------------------------------------- UNIT VALUE INVESTMENT EXPENSE RATIO UNITS LOWEST TO NET ASSETS INCOME LOWEST TO TOTAL RETURN (000S) HIGHEST (000S) RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- GS VIT STRUCTD U.S. EQ, INST 2009 210,015 $0.87 to $0.81 $180,207 1.98% 0.55% to 1.45% 20.48% to 19.40% 2008 255,182 $0.72 to $0.68 $182,460 1.39% 0.55% to 1.45% (37.35%) to (37.91%) 2007 366,725 $1.15 to $1.09 $420,471 0.94% 0.55% to 1.45% (2.17%) to (3.05%) 2006 445,093 $1.18 to $1.13 $524,191 1.05% 0.55% to 1.45% 12.27% to 11.89%(7) 2005 467,555 $1.05 to $1.23 $492,636 1.00% 0.55% to 1.20% 5.93% to 5.24% - -------------------------------------------------------------------------------------------------------------------- JANUS ASPEN GLOBAL TECH, SERV 2009 47,873 $0.46 to $1.11 $21,824 -- 0.55% to 1.20% 56.04% to 55.03% 2008 41,022 $0.29 to $0.71 $11,998 0.09% 0.55% to 1.20% (44.28%) to (44.64%) 2007 49,169 $0.53 to $1.29 $25,957 0.34% 0.55% to 1.20% 21.03% to 20.24% 2006 54,174 $0.43 to $1.07 $23,644 -- 0.55% to 1.20% 7.24% to 6.54% 2005 57,634 $0.41 to $1.01 $23,479 -- 0.55% to 1.20% 10.94% to 10.22% - -------------------------------------------------------------------------------------------------------------------- JANUS ASPEN JANUS, SERV 2009 1,711,481 $0.86 to $0.84 $1,454,728 0.38% 0.55% to 1.45% 35.27% to 34.06% 2008 1,226,178 $0.63 to $0.63 $773,445 0.64% 0.55% to 1.45% (40.20%) to (40.74%) 2007 747,893 $1.06 to $1.06 $791,866 0.66% 0.55% to 1.45% 6.28%(8) to 5.64%(8) 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- JANUS ASPEN OVERSEAS, SERV 2009 110,781 $1.47 to $2.45 $160,461 0.41% 0.55% to 1.20% 78.09% to 76.94% 2008 126,355 $0.82 to $1.38 $103,231 1.14% 0.55% to 1.20% (52.49%) to (52.80%) 2007 147,130 $1.73 to $2.93 $252,914 0.45% 0.55% to 1.20% 27.31% to 26.48% 2006 142,098 $1.36 to $2.32 $192,642 1.88% 0.55% to 1.20% 45.83% to 44.88% 2005 134,816 $0.93 to $1.60 $125,579 1.08% 0.55% to 1.20% 31.22% to 30.37% - -------------------------------------------------------------------------------------------------------------------- MFS INV GRO STOCK, SERV CL 2009 125,305 $0.68 to $1.02 $88,112 0.42% 0.55% to 1.45% 38.33% to 37.09% 2008 119,103 $0.49 to $0.74 $60,178 0.30% 0.55% to 1.45% (37.33%) to (37.89%) 2007 150,560 $0.79 to $1.20 $120,724 0.09% 0.55% to 1.45% 10.41% to 9.42% 2006 187,890 $0.71 to $1.10 $136,819 -- 0.55% to 1.45% 6.72% to 9.33%(7) 2005 216,007 $0.67 to $1.02 $146,971 0.14% 0.55% to 1.20% 3.66% to 2.99% - -------------------------------------------------------------------------------------------------------------------- MFS NEW DIS, SERV CL 2009 53,217 $1.00 to $1.12 $52,365 -- 0.55% to 1.20% 62.03% to 60.98% 2008 59,531 $0.62 to $0.70 $36,303 -- 0.55% to 1.20% (39.85%) to (40.24%) 2007 80,673 $1.02 to $1.17 $82,088 -- 0.55% to 1.20% 1.69% to 1.02% 2006 98,386 $1.01 to $1.16 $98,902 -- 0.55% to 1.20% 12.31% to 11.59% 2005 122,560 $0.90 to $1.04 $109,920 -- 0.55% to 1.20% 4.46% to 3.78% - -------------------------------------------------------------------------------------------------------------------- MFS UTILITIES, SERV CL 2009 139,628 $1.86 to $1.25 $236,943 4.76% 0.55% to 1.45% 32.14% to 30.96% 2008 163,177 $1.41 to $0.95 $212,724 1.35% 0.55% to 1.45% (38.15%) to (38.71%) 2007 181,259 $2.28 to $1.56 $389,228 0.75% 0.55% to 1.45% 26.85% to 25.71% 2006 142,816 $1.80 to $1.24 $254,044 1.88% 0.55% to 1.45% 30.25% to 23.49%(7) 2005 103,681 $1.38 to $1.68 $145,619 0.42% 0.55% to 1.20% 15.93% to 15.18% - -------------------------------------------------------------------------------------------------------------------- NB AMT INTL, CL S 2009 379,110 $0.76 to $0.83 $309,505 3.73% 0.55% to 1.45% 33.77% to 32.57% 2008 358,116 $0.57 to $0.63 $218,422 -- 0.55% to 1.45% (46.73%) to (47.21%) 2007 273,245 $1.07 to $1.19 $313,049 2.12% 0.55% to 1.45% 2.64% to 1.72% 2006 147,411 $1.05 to $1.17 $160,106 2.30% 0.55% to 1.45% 4.11%(6) to 16.75%(7) 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- OPPEN GLOBAL SEC VA, SERV 2009 82,309 $1.33 to $0.98 $101,816 1.98% 0.55% to 1.45% 38.59% to 37.35% 2008 93,206 $0.96 to $0.72 $84,227 1.36% 0.55% to 1.45% (40.66%) to (41.19%) 2007 117,627 $1.62 to $1.22 $181,571 1.15% 0.55% to 1.45% 5.50% to 4.55% 2006 117,612 $1.53 to $1.16 $176,344 0.72% 0.55% to 1.45% 16.72% to 15.87%(7) 2005 72,423 $1.31 to $1.30 $94,587 0.57% 0.55% to 1.20% 13.44% to 12.70% - -------------------------------------------------------------------------------------------------------------------- OPPEN MAIN ST SM CAP VA, SERV 2009 67,777 $1.18 to $0.88 $73,523 0.65% 0.55% to 1.45% 36.13% to 34.91% 2008 76,585 $0.87 to $0.65 $61,768 0.29% 0.55% to 1.45% (38.34%) to (38.90%) 2007 91,911 $1.41 to $1.07 $121,816 0.15% 0.55% to 1.45% (1.94%) to (2.82%) 2006 81,385 $1.44 to $1.10 $113,492 0.02% 0.55% to 1.45% 14.03% to 8.72%(7) 2005 41,895 $1.26 to $1.24 $52,482 -- 0.55% to 1.20% 9.11% to 8.41% - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 71
AT DEC. 31 ---------------------------------------------- FOR THE YEAR ENDED DEC. 31 ACCUMULATION ---------------------------------------------------------------- UNIT VALUE INVESTMENT EXPENSE RATIO UNITS LOWEST TO NET ASSETS INCOME LOWEST TO TOTAL RETURN (000S) HIGHEST (000S) RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- OPPEN GLOBAL STRATEGIC INC VA, SERV 2009 2,168,384 $1.27 to $1.14 $2,606,149 0.23% 0.55% to 1.45% 17.76% to 16.70% 2008 2,013,495 $1.08 to $0.98 $2,075,960 4.44% 0.55% to 1.45% (14.95%) to (15.72%) 2007 1,745,768 $1.27 to $1.16 $2,131,138 2.47% 0.55% to 1.45% 8.95% to 7.97% 2006 820,585 $1.16 to $1.08 $936,136 2.90% 0.55% to 1.45% 6.65% to 7.74%(7) 2005 306,977 $1.09 to $1.08 $332,896 1.97% 0.55% to 1.20% 1.92% to 1.26% - -------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET, ADVISOR CL 2009 1,054,508 $1.13 to $1.13 $1,199,776 6.97% 0.55% to 1.45% 20.76% to 19.68% 2008 1,091,785 $0.94 to $0.94 $1,032,082 6.54% 0.55% to 1.45% (16.37%) to (17.12%) 2007 754,096 $1.12 to $1.14 $855,250 8.20% 0.55% to 1.45% 7.59% to 6.62% 2006 437,682 $1.04 to $1.07 $460,233 9.03% 0.55% to 1.45% 4.65%(8) to 6.59%(7) 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- PUT VT GLOBAL HLTH CARE, CL IB 2009 23,153 $1.15 to $1.13 $26,091 11.63% 0.55% to 1.20% 25.31% to 24.50% 2008 27,807 $0.92 to $0.91 $25,092 -- 0.55% to 1.20% (17.52%) to (18.06%) 2007 35,962 $1.11 to $1.11 $39,464 0.83% 0.55% to 1.20% (1.15%) to (1.79%) 2006 46,519 $1.12 to $1.13 $51,796 0.33% 0.55% to 1.20% 2.23% to 1.57% 2005 48,773 $1.10 to $1.11 $53,264 0.05% 0.55% to 1.20% 12.58% to 11.85% - -------------------------------------------------------------------------------------------------------------------- PUT VT INTL EQ, CL IB 2009 29,798 $1.23 to $1.28 $36,019 -- 0.55% to 1.20% 23.95% to 23.15% 2008 37,947 $0.99 to $1.04 $37,137 2.26% 0.55% to 1.20% (44.26%) to (44.62%) 2007 53,770 $1.78 to $1.87 $94,674 2.89% 0.55% to 1.20% 7.77% to 7.07% 2006 62,626 $1.65 to $1.75 $102,620 0.62% 0.55% to 1.20% 27.02% to 26.20% 2005 68,854 $1.30 to $1.39 $89,094 1.45% 0.55% to 1.20% 11.58% to 10.86% - -------------------------------------------------------------------------------------------------------------------- PUT VT VISTA, CL IB 2009 37,963 $0.83 to $0.98 $30,948 -- 0.55% to 1.20% 37.99% to 37.09% 2008 46,674 $0.60 to $0.72 $27,628 -- 0.55% to 1.20% (45.84%) to (46.20%) 2007 61,545 $1.11 to $1.33 $67,450 -- 0.55% to 1.20% 3.24% to 2.56% 2006 79,537 $1.08 to $1.30 $84,668 -- 0.55% to 1.20% 4.88% to 4.20% 2005 94,134 $1.03 to $1.24 $95,729 -- 0.55% to 1.20% 11.53% to 10.81% - -------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, AGGR 2009 22,914 $0.87 to $0.86 $20,064 -- 0.55% to 1.45% 23.13% to 22.02% 2008 11,766 $0.70 to $0.71 $8,341 -- 0.55% to 1.45% (29.70%)(9)to (30.12%)(9) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, CONSERV 2009 41,486 $0.98 to $0.96 $40,526 -- 0.55% to 1.45% 16.22% to 15.18% 2008 25,426 $0.84 to $0.84 $21,358 -- 0.55% to 1.45% (16.24%)(9)to (16.74%)(9) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, MOD 2009 92,895 $0.91 to $0.90 $84,706 -- 0.55% to 1.45% 20.06% to 18.98% 2008 49,366 $0.76 to $0.76 $37,774 -- 0.55% to 1.45% (24.58%)(9)to (25.03%)(9) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, MOD AGGR 2009 54,997 $0.89 to $0.88 $49,630 -- 0.55% to 1.45% 21.52% to 20.44% 2008 33,063 $0.73 to $0.73 $24,461 -- 0.55% to 1.45% (27.03%)(9)to (27.47%)(9) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, MOD CONSERV 2009 54,340 $0.94 to $0.93 $50,887 -- 0.55% to 1.45% 18.27% to 17.21% 2008 25,258 $0.79 to $0.79 $20,078 -- 0.55% to 1.45% (20.96%)(9)to (21.43%)(9) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- 2005 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 72 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
AT DEC. 31 ---------------------------------------------- FOR THE YEAR ENDED DEC. 31 ACCUMULATION ---------------------------------------------------------------- UNIT VALUE INVESTMENT EXPENSE RATIO UNITS LOWEST TO NET ASSETS INCOME LOWEST TO TOTAL RETURN (000S) HIGHEST (000S) RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- VP DAVIS NY VENTURE, CL 3 2009 1,684,963 $0.90 to $0.89 $1,518,919 -- 0.55% to 1.45% 30.61% to 29.44% 2008 917,373 $0.69 to $0.69 $634,861 0.03% 0.55% to 1.45% (38.92%) to (39.47%) 2007 533,475 $1.13 to $1.14 $606,201 1.01% 0.55% to 1.45% 3.27% to 2.34% 2006 338,654 $1.09 to $1.11 $371,272 0.98% 0.55% to 1.45% 8.85%(6) to 10.70%(7) 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- VP GS MID CAP VAL, CL 3 2009 11,506 $1.17 to $0.97 $12,879 -- 0.55% to 1.45% 35.88% to 34.66% 2008 13,413 $0.86 to $0.72 $11,161 -- 0.55% to 1.45% (37.03%) to (37.60%) 2007 18,855 $1.37 to $1.15 $25,327 1.03% 0.55% to 1.45% 5.45% to 4.50% 2006 18,510 $1.30 to $1.10 $27,617 2.14% 0.55% to 1.45% 15.18% to 9.42%(7) 2005 18,946 $1.13 to $1.11 $24,577 0.49% 0.55% to 1.20% (0.05%) to (0.69%) - -------------------------------------------------------------------------------------------------------------------- VP PTNRS SM CAP VAL, CL 3 2009 942,973 $1.68 to $0.95 $1,090,106 -- 0.55% to 1.45% 35.80% to 34.59% 2008 856,114 $1.24 to $0.71 $751,584 0.10% 0.55% to 1.45% (31.95%) to (32.56%) 2007 617,370 $1.82 to $1.05 $846,375 0.89% 0.55% to 1.45% (5.42%) to (6.27%) 2006 271,781 $1.92 to $1.12 $480,085 0.41% 0.55% to 1.45% 19.59% to 10.88%(7) 2005 234,333 $1.61 to $1.49 $370,927 0.21% 0.55% to 1.20% 5.19% to 4.51% - -------------------------------------------------------------------------------------------------------------------- RVS VP BAL, CL 3 2009 221,592 $1.09 to $0.95 $264,041 -- 0.55% to 1.45% 23.55% to 22.44% 2008 189,680 $0.88 to $0.78 $194,345 0.26% 0.55% to 1.45% (30.30%) to (30.92%) 2007 271,898 $1.26 to $1.13 $399,988 2.84% 0.55% to 1.45% 1.18% to 0.27% 2006 308,699 $1.25 to $1.13 $470,890 2.46% 0.55% to 1.45% 13.76% to 12.16%(7) 2005 360,863 $1.10 to $1.66 $501,036 2.59% 0.55% to 1.25% 3.35% to 2.63% - -------------------------------------------------------------------------------------------------------------------- RVS VP CASH MGMT, CL 3 2009 554,428 $1.24 to $1.04 $644,738 0.07% 0.55% to 1.45% (0.41%) to (1.28%) 2008 1,121,065 $1.25 to $1.06 $1,315,148 2.24% 0.55% to 1.45% 1.71% to 0.81% 2007 868,750 $1.22 to $1.05 $1,009,165 4.72% 0.55% to 1.45% 4.25% to 3.32% 2006 701,788 $1.17 to $1.02 $794,074 4.44% 0.55% to 1.45% 3.92% to 1.65%(7) 2005 429,069 $1.13 to $1.23 $477,358 2.58% 0.55% to 1.25% 2.05% to 1.34% - -------------------------------------------------------------------------------------------------------------------- RVS VP DIV BOND, CL 3 2009 3,271,423 $1.51 to $1.13 $4,158,300 4.22% 0.55% to 1.45% 13.79% to 12.78% 2008 2,911,692 $1.33 to $1.00 $3,295,541 0.39% 0.55% to 1.45% (6.83%) to (7.66%) 2007 2,530,299 $1.43 to $1.09 $3,134,332 4.75% 0.55% to 1.45% 4.62% to 3.68% 2006 1,441,352 $1.36 to $1.05 $1,832,904 4.39% 0.55% to 1.45% 3.84% to 4.86%(7) 2005 842,520 $1.31 to $1.41 $1,094,933 3.71% 0.55% to 1.25% 1.56% to 0.85% - -------------------------------------------------------------------------------------------------------------------- RVS VP DIV EQ INC, CL 3 2009 2,438,726 $1.47 to $0.88 $2,726,250 -- 0.55% to 1.45% 26.76% to 25.62% 2008 2,062,785 $1.16 to $0.70 $1,884,808 0.08% 0.55% to 1.45% (40.79%) to (41.32%) 2007 1,615,554 $1.96 to $1.20 $2,710,345 1.57% 0.55% to 1.45% 7.43% to 6.46% 2006 1,286,388 $1.83 to $1.12 $2,199,172 1.41% 0.55% to 1.45% 19.09% to 11.90%(7) 2005 772,974 $1.53 to $1.51 $1,175,707 1.61% 0.55% to 1.20% 12.88% to 12.15% - -------------------------------------------------------------------------------------------------------------------- RVS VP DYN EQ, CL 3 2009 566,618 $0.70 to $0.81 $452,227 -- 0.55% to 1.45% 23.47% to 22.36% 2008 685,481 $0.57 to $0.67 $447,981 0.24% 0.55% to 1.45% (42.48%) to (43.00%) 2007 908,741 $0.99 to $1.17 $1,044,144 1.30% 0.55% to 1.45% 2.37% to 1.44% 2006 1,149,920 $0.97 to $1.15 $1,327,213 1.16% 0.55% to 1.45% 14.65% to 14.68%(7) 2005 587,040 $0.85 to $1.35 $570,540 1.15% 0.55% to 1.25% 5.59% to 4.86% - -------------------------------------------------------------------------------------------------------------------- RVS VP GLOBAL BOND, CL 3 2009 1,026,842 $1.72 to $1.20 $1,428,993 1.82% 0.55% to 1.45% 10.77% to 9.78% 2008 950,255 $1.55 to $1.09 $1,219,672 6.92% 0.55% to 1.45% (0.98%) to (1.87%) 2007 852,722 $1.56 to $1.11 $1,133,348 3.68% 0.55% to 1.45% 7.05% to 6.09% 2006 472,738 $1.46 to $1.05 $646,999 3.28% 0.55% to 1.45% 6.15% to 4.85%(7) 2005 331,823 $1.38 to $1.46 $454,346 3.91% 0.55% to 1.25% (5.52%) to (6.17%) - -------------------------------------------------------------------------------------------------------------------- RVS VP GLOBAL INFLATION PROT SEC, CL 3 2009 1,530,203 $1.20 to $1.14 $1,785,469 8.68% 0.55% to 1.45% 6.25% to 5.30% 2008 658,300 $1.13 to $1.08 $727,423 2.47% 0.55% to 1.45% (0.41%) to (1.30%) 2007 543,695 $1.13 to $1.10 $605,794 2.38% 0.55% to 1.45% 7.34% to 6.37% 2006 420,004 $1.06 to $1.03 $439,332 3.36% 0.55% to 1.45% 0.64% to 3.04%(7) 2005 177,692 $1.05 to $1.04 $186,090 7.05% 0.55% to 1.20% 2.24% to 1.59% - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 73
AT DEC. 31 ---------------------------------------------- FOR THE YEAR ENDED DEC. 31 ACCUMULATION ---------------------------------------------------------------- UNIT VALUE INVESTMENT EXPENSE RATIO UNITS LOWEST TO NET ASSETS INCOME LOWEST TO TOTAL RETURN (000S) HIGHEST (000S) RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- RVS VP HI YIELD BOND, CL 3 2009 348,000 $1.61 to $1.21 $537,691 10.21% 0.55% to 1.45% 53.01% to 51.64% 2008 373,277 $1.05 to $0.80 $382,399 0.32% 0.55% to 1.45% (25.58%) to (26.25%) 2007 550,625 $1.41 to $1.08 $763,179 7.40% 0.55% to 1.45% 1.29% to 0.38% 2006 649,204 $1.39 to $1.07 $905,546 7.40% 0.55% to 1.45% 10.21% to 7.67%(7) 2005 715,854 $1.26 to $1.39 $919,121 6.46% 0.55% to 1.25% 3.45% to 2.73% - -------------------------------------------------------------------------------------------------------------------- RVS VP INC OPP, CL 3 2009 1,240,488 $1.34 to $1.21 $1,564,362 4.60% 0.55% to 1.45% 41.61% to 40.35% 2008 643,014 $0.95 to $0.86 $575,938 0.18% 0.55% to 1.45% (19.25%) to (19.98%) 2007 516,836 $1.17 to $1.08 $577,421 6.88% 0.55% to 1.45% 2.08% to 1.16% 2006 309,653 $1.15 to $1.07 $345,710 6.45% 0.55% to 1.45% 7.39% to 6.77%(7) 2005 59,285 $1.07 to $1.06 $63,157 5.94% 0.55% to 1.20% 2.76% to 2.10% - -------------------------------------------------------------------------------------------------------------------- RVS VP MID CAP GRO, CL 3 2009 114,747 $1.26 to $1.03 $128,719 -- 0.55% to 1.45% 62.51% to 61.06% 2008 114,373 $0.78 to $0.64 $78,655 0.02% 0.55% to 1.45% (45.15%) to (45.64%) 2007 151,418 $1.41 to $1.18 $190,564 0.06% 0.55% to 1.45% 13.11% to 12.09% 2006 200,202 $1.25 to $1.05 $222,008 0.24% 0.55% to 1.45% (0.62%) to 4.74%(7) 2005 87,824 $1.26 to $1.25 $107,722 -- 0.55% to 1.20% 9.52% to 8.81% - -------------------------------------------------------------------------------------------------------------------- RVS VP MID CAP VAL, CL 3 2009 218,176 $1.15 to $0.89 $220,336 -- 0.55% to 1.45% 40.17% to 38.91% 2008 315,808 $0.82 to $0.64 $227,282 -- 0.55% to 1.45% (45.41%) to (45.90%) 2007 243,624 $1.50 to $1.19 $329,464 0.74% 0.55% to 1.45% 9.75% to 8.76% 2006 273,710 $1.37 to $1.09 $347,533 1.09% 0.55% to 1.45% 14.69% to 8.46%(7) 2005 12,717 $1.20 to $1.19 $17,507 1.13% 0.55% to 1.20% 17.78%(4) to 17.28%(4) - -------------------------------------------------------------------------------------------------------------------- RVS VP S&P 500, CL 3 2009 181,918 $0.83 to $0.91 $151,756 -- 0.55% to 1.45% 25.31% to 24.18% 2008 200,311 $0.66 to $0.73 $133,680 0.08% 0.55% to 1.45% (37.44%) to (38.00%) 2007 248,360 $1.05 to $1.18 $265,351 1.62% 0.55% to 1.45% 4.44% to 3.50% 2006 269,990 $1.01 to $1.14 $276,643 1.45% 0.55% to 1.45% 14.63% to 13.44%(7) 2005 304,082 $0.88 to $1.13 $272,014 1.40% 0.55% to 1.20% 3.83% to 3.16% - -------------------------------------------------------------------------------------------------------------------- RVS VP SHORT DURATION, CL 3 2009 275,349 $1.36 to $1.07 $345,899 3.12% 0.55% to 1.45% 4.95% to 4.01% 2008 306,948 $1.30 to $1.02 $371,939 0.13% 0.55% to 1.45% (3.17%) to (4.04%) 2007 272,626 $1.34 to $1.07 $346,116 4.18% 0.55% to 1.45% 4.74% to 3.80% 2006 270,831 $1.28 to $1.03 $331,991 3.80% 0.55% to 1.45% 3.27% to 2.92%(7) 2005 302,534 $1.24 to $1.04 $361,417 2.89% 0.55% to 1.20% 1.02% to 0.37% - -------------------------------------------------------------------------------------------------------------------- SEL VP GRO, CL 3 2009 263,512 $0.57 to $0.85 $155,168 -- 0.55% to 1.45% 36.24% to 35.02% 2008 326,510 $0.42 to $0.63 $141,102 0.30% 0.55% to 1.45% (44.65%) to (45.15%) 2007 516,489 $0.75 to $1.15 $404,027 1.01% 0.55% to 1.45% 2.50% to 1.58% 2006 590,278 $0.73 to $1.13 $449,154 0.93% 0.55% to 1.45% 10.47% to 13.46%(7) 2005 579,086 $0.67 to $1.05 $398,436 0.39% 0.55% to 1.20% 8.02% to 7.32% - -------------------------------------------------------------------------------------------------------------------- SEL VP LG CAP VAL, CL 3 2009 13,447 $1.01 to $0.84 $13,058 -- 0.55% to 1.45% 25.43% to 24.31% 2008 11,454 $0.81 to $0.68 $8,932 0.08% 0.55% to 1.45% (39.79%) to (40.33%) 2007 15,712 $1.34 to $1.14 $20,661 1.37% 0.55% to 1.45% (1.01%) to (1.90%) 2006 15,289 $1.35 to $1.16 $24,456 1.26% 0.55% to 1.45% 18.41% to 15.50%(7) 2005 11,470 $1.14 to $1.13 $16,462 1.60% 0.55% to 1.20% 3.96% to 3.29% - -------------------------------------------------------------------------------------------------------------------- SEL VP SM CAP VAL, CL 3 2009 43,222 $1.44 to $0.86 $59,043 -- 0.55% to 1.45% 39.05% to 37.81% 2008 51,553 $1.04 to $0.63 $51,441 -- 0.55% to 1.45% (38.93%) to (39.48%) 2007 74,285 $1.70 to $1.03 $122,452 0.16% 0.55% to 1.45% (4.71%) to (5.57%) 2006 97,486 $1.79 to $1.09 $170,404 0.04% 0.55% to 1.45% 11.08% to 8.04%(7) 2005 116,136 $1.61 to $1.51 $183,927 -- 0.55% to 1.20% 4.25% to 3.58% - -------------------------------------------------------------------------------------------------------------------- THDL VP EMER MKTS, CL 3 2009 361,472 $2.31 to $1.43 $657,161 0.37% 0.55% to 1.45% 73.13% to 71.58% 2008 506,028 $1.33 to $0.83 $518,628 0.68% 0.55% to 1.45% (53.96%) to (54.37%) 2007 289,591 $2.90 to $1.82 $695,489 0.59% 0.55% to 1.45% 37.35% to 36.11% 2006 191,857 $2.11 to $1.34 $379,204 0.35% 0.55% to 1.45% 33.17% to 33.82%(7) 2005 134,343 $1.58 to $2.02 $213,076 0.20% 0.55% to 1.20% 33.07% to 32.21% - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 74 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
AT DEC. 31 ---------------------------------------------- FOR THE YEAR ENDED DEC. 31 ACCUMULATION ---------------------------------------------------------------- UNIT VALUE INVESTMENT EXPENSE RATIO UNITS LOWEST TO NET ASSETS INCOME LOWEST TO TOTAL RETURN (000S) HIGHEST (000S) RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) --------------------------------------------------------------------------------------------------------------- THDL VP INTL OPP, CL 3 2009 153,423 $0.96 to $0.96 $163,378 1.56% 0.55% to 1.45% 26.84% to 25.70% 2008 184,146 $0.76 to $0.77 $156,585 2.35% 0.55% to 1.45% (40.76%) to (41.29%) 2007 255,424 $1.28 to $1.30 $370,715 0.99% 0.55% to 1.45% 12.06% to 11.05% 2006 314,505 $1.14 to $1.17 $419,625 1.93% 0.55% to 1.45% 23.49% to 16.79%(7) 2005 335,839 $0.92 to $1.23 $370,645 1.43% 0.55% to 1.25% 13.24% to 12.45% - -------------------------------------------------------------------------------------------------------------------- VANK LIT COMSTOCK, CL II 2009 700,428 $1.09 to $0.87 $681,301 4.57% 0.55% to 1.45% 27.70% to 26.56% 2008 890,312 $0.85 to $0.69 $681,107 2.13% 0.55% to 1.45% (36.15%) to (36.73%) 2007 706,658 $1.34 to $1.09 $869,865 1.54% 0.55% to 1.45% (2.87%) to (3.74%) 2006 615,160 $1.38 to $1.13 $810,354 1.11% 0.55% to 1.45% 15.41% to 12.68%(7) 2005 384,396 $1.19 to $1.18 $456,175 0.49% 0.55% to 1.20% 3.54% to 2.87% - -------------------------------------------------------------------------------------------------------------------- VANK UIF GLOBAL REAL EST, CL II 2009 299,590 $0.87 to $0.88 $264,522 0.02% 0.55% to 1.45% 40.64% to 39.38% 2008 382,715 $0.62 to $0.63 $241,004 2.66% 0.55% to 1.45% (44.65%) to (45.15%) 2007 179,034 $1.12 to $1.16 $203,382 1.28% 0.55% to 1.45% (8.98%) to (9.80%) 2006 136,442 $1.23 to $1.28 $169,621 4.39% 0.55% to 1.45% 23.57%(6) to 26.94%(7) 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- VANK UIF MID CAP GRO, CL II 2009 46,533 $1.00 to $1.06 $47,117 -- 0.55% to 1.45% 56.51% to 55.10% 2008 44,920 $0.64 to $0.68 $29,120 0.77% 0.55% to 1.45% (47.11%) to (47.58%) 2007 38,593 $1.21 to $1.30 $47,493 -- 0.55% to 1.45% 21.94% to 20.84% 2006 98,448 $0.99 to $1.08 $100,352 -- 0.55% to 1.45% (0.22%)(6)to 7.27%(7) 2005 -- -- -- -- -- -- -- -- -- - -------------------------------------------------------------------------------------------------------------------- WANGER INTL 2009 578,944 $2.15 to $1.12 $893,102 3.70% 0.55% to 1.45% 48.96% to 47.63% 2008 486,121 $1.44 to $0.76 $546,084 0.96% 0.55% to 1.45% (45.90%) to (46.39%) 2007 416,770 $2.67 to $1.42 $970,137 0.84% 0.55% to 1.45% 15.67% to 14.63% 2006 392,888 $2.31 to $1.24 $857,316 0.51% 0.55% to 1.45% 36.41% to 22.89%(7) 2005 318,154 $1.69 to $1.98 $539,107 0.86% 0.55% to 1.20% 20.86% to 20.08% - -------------------------------------------------------------------------------------------------------------------- WANGER USA 2009 573,990 $1.71 to $0.93 $745,596 -- 0.55% to 1.45% 41.45% to 40.18% 2008 572,582 $1.21 to $0.67 $550,276 -- 0.55% to 1.45% (40.02%) to (40.56%) 2007 565,037 $2.01 to $1.12 $973,831 -- 0.55% to 1.45% 4.81% to 3.86% 2006 489,659 $1.92 to $1.08 $890,484 0.23% 0.55% to 1.45% 7.28% to 7.16%(7) 2005 478,752 $1.79 to $1.54 $828,367 -- 0.55% to 1.20% 10.64% to 9.93% - -------------------------------------------------------------------------------------------------------------------- WF ADV VT INDEX ASSET ALLOC 2009 37,522 $1.12 to $1.12 $41,324 2.02% 0.55% to 1.20% 14.82% to 14.08% 2008 49,869 $0.98 to $0.98 $47,943 2.38% 0.55% to 1.20% (29.50%) to (29.96%) 2007 72,214 $1.38 to $1.40 $98,669 2.24% 0.55% to 1.20% 7.00% to 6.31% 2006 76,000 $1.29 to $1.32 $97,390 2.31% 0.55% to 1.20% 11.53% to 10.81% 2005 84,219 $1.16 to $1.19 $96,853 2.09% 0.55% to 1.20% 4.41% to 3.74% - -------------------------------------------------------------------------------------------------------------------- WF ADV VT INTL CORE 2009 8,059 $0.91 to $1.02 $7,251 3.04% 0.55% to 1.20% 12.04% to 11.31% 2008 9,680 $0.81 to $0.91 $7,814 1.96% 0.55% to 1.20% (43.72%) to (44.09%) 2007 13,828 $1.45 to $1.63 $19,886 0.01% 0.55% to 1.20% 12.05% to 11.32% 2006 15,404 $1.29 to $1.47 $19,827 1.61% 0.55% to 1.20% 20.15% to 19.37% 2005 17,549 $1.07 to $1.23 $18,913 1.88% 0.55% to 1.20% 9.07% to 8.37% - -------------------------------------------------------------------------------------------------------------------- WF ADV VT OPP 2009 38,816 $1.28 to $1.00 $47,589 -- 0.55% to 1.45% 46.93% to 45.61% 2008 45,514 $0.87 to $0.69 $38,279 1.90% 0.55% to 1.45% (40.43%) to (40.96%) 2007 60,060 $1.46 to $1.17 $85,505 0.59% 0.55% to 1.45% 6.05% to 5.09% 2006 68,746 $1.38 to $1.11 $93,493 -- 0.55% to 1.45% 11.61% to 10.85%(7) 2005 78,280 $1.23 to $1.25 $95,962 -- 0.55% to 1.20% 7.22% to 6.52% - -------------------------------------------------------------------------------------------------------------------- WF ADV VT SM CAP GRO 2009 72,341 $1.20 to $1.11 $84,640 -- 0.55% to 1.45% 51.81% to 50.45% 2008 65,403 $0.79 to $0.74 $50,668 -- 0.55% to 1.45% (41.74%) to (42.27%) 2007 75,619 $1.35 to $1.28 $100,984 -- 0.55% to 1.45% 13.18% to 12.16% 2006 50,566 $1.20 to $1.14 $60,201 -- 0.55% to 1.45% 22.08% to 12.91%(7) 2005 38,139 $0.98 to $1.10 $37,471 -- 0.55% to 1.20% 5.66% to 4.98% - --------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 75 (1)These amounts represent the dividends, excluding distributions of capital gains, received by the division from the underlying fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude variable account expenses that result in direct reductions in the unit values. The recognition of investment income by the division is affected by the timing of the declaration of dividends by the underlying fund in which the division invests. These ratios are annualized for periods less than one year. (2)These ratios represent the annualized contract expenses of the separate account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund are excluded. (3)These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. Although the total return is presented as a range of minimum to maximum values, based on the subaccounts representing the minimum and maximum expense ratio amounts, some individual subaccount total returns are not within the ranges presented due to the introduction of new subaccounts during the year and other market factors. (4)New subaccount operations commenced on May 2, 2005. (5)New subaccount operations commenced on Nov. 1, 2005. (6)New subaccount operations commenced on May 1, 2006. (7)New subaccount operations commenced on June 26, 2006. (8)New subaccount operations commenced on May 1, 2007. (9)New subaccount operations commenced on May 1, 2008. - -------------------------------------------------------------------------------- 76 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT CONDENSED FINANCIAL INFORMATION (UNAUDITED) The following tables give per-unit information about the financial history of each subaccount. The date in which operations commenced in each subaccount is noted in parentheses.
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) (PREVIOUSLY AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.72 $1.26 $1.14 $1.08 $1.00 $0.94 $0.73 $0.98 $1.00 -- Accumulation unit value at end of period $0.86 $0.72 $1.26 $1.14 $1.08 $1.00 $0.94 $0.73 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 451 495 371 489 1,554 110 85 4 6 -- - --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) (PREVIOUSLY AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.86 $1.63 $1.48 $1.28 $1.18 $1.03 $0.77 $0.98 $1.00 -- Accumulation unit value at end of period $1.21 $0.86 $1.63 $1.48 $1.28 $1.18 $1.03 $0.77 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 54 71 208 183 141 107 284 180 3 -- - --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. DYNAMICS FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. DYNAMICS FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.74 $1.43 $1.28 $1.11 $1.01 $0.89 $0.65 $0.96 $1.00 -- Accumulation unit value at end of period $1.04 $0.74 $1.43 $1.28 $1.11 $1.01 $0.89 $0.65 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 3 8 12 11 19 18 249 149 1 -- - --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. FINANCIAL SERVICES FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.44 $1.08 $1.39 $1.20 $1.14 $1.06 $0.82 $0.97 $1.00 -- Accumulation unit value at end of period $0.55 $0.44 $1.08 $1.39 $1.20 $1.14 $1.06 $0.82 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 606 149 54 158 140 132 66 3 -- -- - --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) (PREVIOUSLY AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.81 $1.14 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.02 $0.81 $1.14 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 403 73 115 1,114 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) (PREVIOUSLY AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES) Accumulation unit value at beginning of period $0.93 $1.58 $1.39 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.25 $0.93 $1.58 $1.39 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,658 2,794 1,479 105 5 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) (PREVIOUSLY AIM V.I. TECHNOLOGY FUND, SERIES I SHARES) Accumulation unit value at beginning of period $0.48 $0.86 $0.81 $0.73 $0.72 $0.69 $0.48 $0.91 $1.00 -- Accumulation unit value at end of period $0.75 $0.48 $0.86 $0.81 $0.73 $0.72 $0.69 $0.48 $0.91 -- Number of accumulation units outstanding at end of period (000 omitted) 411 351 275 418 532 249 96 3 -- -- - --------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) (PREVIOUSLY ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B)) Accumulation unit value at beginning of period $0.71 $1.36 $1.14 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.08 $0.71 $1.36 $1.14 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 69 49 61 653 144 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $0.81 $1.37 $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 $1.00 -- Accumulation unit value at end of period $0.97 $0.81 $1.37 $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 388 452 1,081 1,374 1,186 726 969 310 136 -- - --------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $1.24 $2.68 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 $1.00 -- Accumulation unit value at end of period $1.66 $1.24 $2.68 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 1,925 3,352 3,600 3,592 2,607 984 472 606 210 -- - --------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS II (08/13/2001) Accumulation unit value at beginning of period $0.93 $1.70 $1.45 $1.17 $1.04 $0.91 $0.74 $0.93 $1.00 -- Accumulation unit value at end of period $1.24 $0.93 $1.70 $1.45 $1.17 $1.04 $0.91 $0.74 $0.93 -- Number of accumulation units outstanding at end of period (000 omitted) 263 286 389 365 314 127 5 254 1 -- - ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 77
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - --------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.68 $0.90 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.88 $0.68 $0.90 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,289 1,327 1,710 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.69 $1.20 $1.00 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.93 $0.69 $1.20 $1.00 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 91 72 187 2,939 618 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.10 $1.51 $1.61 $1.36 $1.31 $1.15 $0.90 $1.04 $1.00 -- Accumulation unit value at end of period $1.31 $1.10 $1.51 $1.61 $1.36 $1.31 $1.15 $0.90 $1.04 -- Number of accumulation units outstanding at end of period (000 omitted) 469 483 848 1,060 1,104 1,064 673 483 146 -- - --------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. VP SRI SOCIAL BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $0.79 $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 $1.00 Accumulation unit value at end of period $0.99 $0.79 $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 10 24 21 18 5 54 8 8 6 5 - --------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (05/01/2006) Accumulation unit value at beginning of period $0.72 $1.20 $1.02 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.72 $1.20 $1.02 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,497 6,506 5,466 2,834 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (05/01/2006) Accumulation unit value at beginning of period $0.65 $1.27 $1.07 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.65 $1.27 $1.07 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 810 730 772 2,194 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.75 $1.13 $0.97 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.75 $1.13 $0.97 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 605 506 677 1,600 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $0.76 $1.04 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.08 $0.76 $1.04 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,787 2,025 2,116 2,567 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $0.81 $1.22 $1.13 $1.01 $0.94 $0.86 $0.83 -- -- -- Accumulation unit value at end of period $1.09 $0.81 $1.22 $1.13 $1.01 $0.94 $0.86 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) -- 47 47 56 56 49 90 -- -- -- - --------------------------------------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.07 $1.84 $1.62 $1.32 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.23 $1.07 $1.84 $1.62 $1.32 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,398 408 500 669 661 76 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.69 $1.21 $1.03 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.93 $0.69 $1.21 $1.03 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,368 8,518 7,443 6,582 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $0.82 $1.42 $1.28 $1.14 $1.06 $1.01 $0.83 $1.00 $1.00 -- Accumulation unit value at end of period $1.04 $0.82 $1.42 $1.28 $1.14 $1.06 $1.01 $0.83 $1.00 -- Number of accumulation units outstanding at end of period (000 omitted) 805 963 1,126 1,624 1,338 994 432 233 132 -- - --------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.43 $2.39 $2.08 $1.86 $1.59 $1.28 $0.93 $1.04 $1.00 -- Accumulation unit value at end of period $1.99 $1.43 $2.39 $2.08 $1.86 $1.59 $1.28 $0.93 $1.04 -- Number of accumulation units outstanding at end of period (000 omitted) 2,734 3,823 3,786 4,011 2,702 1,034 510 325 132 -- - ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 78 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - --------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.08 $1.93 $1.66 $1.42 $1.20 $1.06 $0.75 $0.95 $1.00 -- Accumulation unit value at end of period $1.35 $1.08 $1.93 $1.66 $1.42 $1.20 $1.06 $0.75 $0.95 -- Number of accumulation units outstanding at end of period (000 omitted) 558 771 890 1,130 728 573 205 324 7 -- - --------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.48 $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 $0.96 Accumulation unit value at end of period $1.75 $1.48 $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 Number of accumulation units outstanding at end of period (000 omitted) 232 262 688 836 667 487 349 205 211 148 - --------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $1.61 $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 $0.96 Accumulation unit value at end of period $2.07 $1.61 $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 352 465 576 738 593 414 242 282 150 9 - --------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $0.98 $1.57 $1.53 $1.30 $1.18 $1.05 $0.85 $0.97 $1.00 -- Accumulation unit value at end of period $1.23 $0.98 $1.57 $1.53 $1.30 $1.18 $1.05 $0.85 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 525 670 761 865 716 533 667 130 -- -- - --------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $1.74 $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 $0.95 Accumulation unit value at end of period $2.30 $1.74 $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 Number of accumulation units outstanding at end of period (000 omitted) 922 1,060 2,008 2,339 1,930 834 639 450 200 15 - --------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $0.72 $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 $1.10 Accumulation unit value at end of period $0.87 $0.72 $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 Number of accumulation units outstanding at end of period (000 omitted) 826 1,128 1,678 2,499 3,019 1,522 735 694 943 577 - --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.29 $0.53 $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 $0.68 $1.00 Accumulation unit value at end of period $0.46 $0.29 $0.53 $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 $0.68 Number of accumulation units outstanding at end of period (000 omitted) 41 22 37 180 200 333 426 343 202 310 - --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.63 $1.06 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.86 $0.63 $1.06 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 6,880 6,240 5,448 -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.82 $1.73 $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 $0.80 $1.00 Accumulation unit value at end of period $1.47 $0.82 $1.73 $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 $0.80 Number of accumulation units outstanding at end of period (000 omitted) 395 275 272 231 250 132 295 875 606 556 - --------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.49 $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 $1.00 Accumulation unit value at end of period $0.68 $0.49 $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 406 260 317 481 640 522 874 785 913 533 - --------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.62 $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 $1.00 Accumulation unit value at end of period $1.00 $0.62 $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 190 92 130 243 558 576 622 485 548 352 - --------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.41 $2.28 $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 $1.00 -- Accumulation unit value at end of period $1.86 $1.41 $2.28 $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 -- Number of accumulation units outstanding at end of period (000 omitted) 562 821 765 1,065 588 211 139 139 138 -- - --------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.57 $1.07 $1.05 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.76 $0.57 $1.07 $1.05 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,718 1,971 2,116 1,957 -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 79
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - --------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.96 $1.62 $1.53 $1.31 $1.16 $1.00 -- -- -- -- Accumulation unit value at end of period $1.33 $0.96 $1.62 $1.53 $1.31 $1.16 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 604 777 1,099 1,309 756 158 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $0.87 $1.41 $1.44 $1.26 $1.16 $1.00 -- -- -- -- Accumulation unit value at end of period $1.18 $0.87 $1.41 $1.44 $1.26 $1.16 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 717 646 676 773 643 432 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) (PREVIOUSLY OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES) Accumulation unit value at beginning of period $1.08 $1.27 $1.16 $1.09 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $1.27 $1.08 $1.27 $1.16 $1.09 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,634 8,498 9,223 6,331 3,173 403 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $0.94 $1.12 $1.04 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.13 $0.94 $1.12 $1.04 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,431 4,628 4,555 4,105 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- PUTNAM VT GLOBAL HEALTH CARE FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $0.92 $1.11 $1.12 $1.10 $0.98 $0.92 $0.78 $0.98 $1.00 -- Accumulation unit value at end of period $1.15 $0.92 $1.11 $1.12 $1.10 $0.98 $0.92 $0.78 $0.98 -- Number of accumulation units outstanding at end of period (000 omitted) 27 111 67 195 218 67 170 145 129 -- - --------------------------------------------------------------------------------------------------------------------------- PUTNAM VT INTERNATIONAL EQUITY FUND - CLASS IB SHARES (08/13/2001) Accumulation unit value at beginning of period $0.99 $1.78 $1.65 $1.30 $1.16 $1.01 $0.79 $0.96 $1.00 -- Accumulation unit value at end of period $1.23 $0.99 $1.78 $1.65 $1.30 $1.16 $1.01 $0.79 $0.96 -- Number of accumulation units outstanding at end of period (000 omitted) 57 91 69 164 145 194 207 881 418 -- - --------------------------------------------------------------------------------------------------------------------------- PUTNAM VT VISTA FUND - CLASS IB SHARES (09/15/1999) Accumulation unit value at beginning of period $0.60 $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 $1.36 Accumulation unit value at end of period $0.83 $0.60 $1.11 $1.08 $1.03 $0.92 $0.78 $0.59 $0.86 $1.29 Number of accumulation units outstanding at end of period (000 omitted) 149 221 370 429 374 375 431 525 1,092 1,330 - --------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.70 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.70 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 914 547 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.84 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.98 $0.84 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 50 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.76 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.91 $0.76 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 41 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.73 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.89 $0.73 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 83 67 -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVST DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.79 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $0.94 $0.79 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3 -- -- -- -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND) Accumulation unit value at beginning of period $0.69 $1.13 $1.09 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.90 $0.69 $1.13 $1.09 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 7,045 4,641 3,570 3,666 -- -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 80 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - --------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SELECT VALUE FUND) Accumulation unit value at beginning of period $0.86 $1.37 $1.30 $1.13 $1.13 $1.00 -- -- -- -- Accumulation unit value at end of period $1.17 $0.86 $1.37 $1.30 $1.13 $1.13 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 176 74 115 77 235 182 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVST VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (08/14/2001) (PREVIOUSLY RVST RIVERSOURCE PARTNERS VARIABLE PORTFOLIO - SMALL CAP VALUE FUND) Accumulation unit value at beginning of period $1.24 $1.82 $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 $1.00 -- Accumulation unit value at end of period $1.68 $1.24 $1.82 $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 -- Number of accumulation units outstanding at end of period (000 omitted) 3,210 3,353 3,487 2,495 2,068 860 982 627 411 -- - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.88 $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 $1.09 Accumulation unit value at end of period $1.09 $0.88 $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 733 602 372 459 623 257 221 120 296 145 - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)*(09/15/1999) Accumulation unit value at beginning of period $1.25 $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 $1.01 Accumulation unit value at end of period $1.24 $1.25 $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 Number of accumulation units outstanding at end of period (000 omitted) 2,492 10,988 11,779 8,286 4,504 2,098 447 3,911 5,658 6,615 *The 7-day simple and compound yields for RVST RiverSource Variable Portfolio - Cash Management Fund at Dec. 31, 2009 were (0.58%) and (0.58%), respectively. - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.33 $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 $1.02 Accumulation unit value at end of period $1.51 $1.33 $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 10,140 8,140 9,540 7,272 3,619 2,145 1,691 762 985 410 - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.16 $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 $1.02 Accumulation unit value at end of period $1.47 $1.16 $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 7,610 8,565 9,289 9,434 5,165 3,041 1,239 1,262 281 218 - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.57 $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 $1.14 Accumulation unit value at end of period $0.70 $0.57 $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 877 1,397 1,682 2,453 3,121 1,484 172 202 291 266 - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.55 $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 $1.00 Accumulation unit value at end of period $1.72 $1.55 $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 Number of accumulation units outstanding at end of period (000 omitted) 3,215 2,861 3,115 2,645 1,377 741 714 251 249 4 - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.13 $1.13 $1.06 $1.05 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.20 $1.13 $1.13 $1.06 $1.05 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,705 2,307 2,713 2,959 1,455 5,004 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.05 $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 $1.01 Accumulation unit value at end of period $1.61 $1.05 $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 Number of accumulation units outstanding at end of period (000 omitted) 639 713 1,605 1,925 2,397 2,886 4,230 1,480 1,549 1,186 - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $0.95 $1.17 $1.15 $1.07 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.34 $0.95 $1.17 $1.15 $1.07 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,111 2,233 2,599 2,358 493 -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP GROWTH FUND (CLASS 3) (05/01/2001) Accumulation unit value at beginning of period $0.78 $1.41 $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 $1.00 -- Accumulation unit value at end of period $1.26 $0.78 $1.41 $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 -- Number of accumulation units outstanding at end of period (000 omitted) 363 242 268 450 655 523 578 328 38 -- - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - MID CAP VALUE FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $0.82 $1.50 $1.37 $1.20 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.15 $0.82 $1.50 $1.37 $1.20 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,292 1,658 1,406 2,575 115 -- -- -- -- -- - ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 81
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $0.66 $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 $1.00 Accumulation unit value at end of period $0.83 $0.66 $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 741 1,447 1,022 1,170 2,054 1,958 1,381 973 770 285 - --------------------------------------------------------------------------------------------------------------------------- RVST RIVERSOURCE VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.30 $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 $1.01 Accumulation unit value at end of period $1.36 $1.30 $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 825 1,394 817 493 688 870 1,097 1,275 592 1 - --------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - GROWTH FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.42 $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 $1.17 Accumulation unit value at end of period $0.57 $0.42 $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 2,260 2,601 3,768 6,049 6,193 2,153 1,664 1,064 1,285 1,762 - --------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - LARGER-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $0.81 $1.34 $1.35 $1.14 $1.10 $1.00 -- -- -- -- Accumulation unit value at end of period $1.01 $0.81 $1.34 $1.35 $1.14 $1.10 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 195 67 67 184 92 65 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- RVST SELIGMAN VARIABLE PORTFOLIO - SMALLER-CAP VALUE FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.04 $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 $1.12 Accumulation unit value at end of period $1.44 $1.04 $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 Number of accumulation units outstanding at end of period (000 omitted) 57 113 214 333 514 779 660 393 378 286 - --------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - EMERGING MARKETS FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $1.33 $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 $1.00 Accumulation unit value at end of period $2.31 $1.33 $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 1,522 2,437 1,993 2,144 1,491 475 115 277 3 1 - --------------------------------------------------------------------------------------------------------------------------- RVST THREADNEEDLE VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.76 $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 $1.27 Accumulation unit value at end of period $0.96 $0.76 $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 910 1,080 1,307 1,343 1,252 848 143 488 65 81 - --------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (02/04/2004) Accumulation unit value at beginning of period $0.85 $1.34 $1.38 $1.19 $1.15 $1.00 -- -- -- -- Accumulation unit value at end of period $1.09 $0.85 $1.34 $1.38 $1.19 $1.15 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,639 3,700 3,639 4,892 3,642 641 -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.62 $1.12 $1.23 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.87 $0.62 $1.12 $1.23 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,794 1,961 1,463 1,473 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- VAN KAMPEN'S UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.64 $1.21 $0.99 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.00 $0.64 $1.21 $0.99 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 356 270 140 1,068 -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $1.44 $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 $1.51 Accumulation unit value at end of period $2.15 $1.44 $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 Number of accumulation units outstanding at end of period (000 omitted) 2,334 2,433 2,932 3,471 2,814 1,701 1,136 1,484 769 599 - --------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.21 $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 $1.15 Accumulation unit value at end of period $1.71 $1.21 $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 Number of accumulation units outstanding at end of period (000 omitted) 2,350 3,272 3,659 3,852 2,709 1,415 1,250 847 820 990 - --------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INDEX ASSET ALLOCATION FUND (05/01/2001) (PREVIOUSLY WELLS FARGO ADVANTAGE VT ASSET ALLOCATION FUND) Accumulation unit value at beginning of period $0.98 $1.38 $1.29 $1.16 $1.11 $1.02 $0.84 $0.97 $1.00 -- Accumulation unit value at end of period $1.12 $0.98 $1.38 $1.29 $1.16 $1.11 $1.02 $0.84 $0.97 -- Number of accumulation units outstanding at end of period (000 omitted) 4 4 7 31 355 91 66 29 8 -- - ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- 82 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 - --------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL CORE FUND (05/01/2001) Accumulation unit value at beginning of period $0.81 $1.45 $1.29 $1.07 $0.99 $0.90 $0.69 $0.90 $1.00 -- Accumulation unit value at end of period $0.91 $0.81 $1.45 $1.29 $1.07 $0.99 $0.90 $0.69 $0.90 -- Number of accumulation units outstanding at end of period (000 omitted) 1 1 5 5 82 84 4 144 1 -- - --------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (08/13/2001) Accumulation unit value at beginning of period $0.87 $1.46 $1.38 $1.23 $1.15 $0.98 $0.72 $0.99 $1.00 -- Accumulation unit value at end of period $1.28 $0.87 $1.46 $1.38 $1.23 $1.15 $0.98 $0.72 $0.99 -- Number of accumulation units outstanding at end of period (000 omitted) 298 182 331 421 467 408 445 314 136 -- - --------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (05/01/2001) Accumulation unit value at beginning of period $0.79 $1.35 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 $1.00 -- Accumulation unit value at end of period $1.20 $0.79 $1.35 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 -- Number of accumulation units outstanding at end of period (000 omitted) 225 258 231 84 35 10 10 6 2 -- - ---------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2009 ANNUAL REPORT 83 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS RIVERSOURCE LIFE INSURANCE COMPANY We have audited the accompanying consolidated balance sheets of RiverSource Life Insurance Company, (a wholly owned subsidiary of Ameriprise Financial, Inc.) (the Company) as of December 31, 2009 and 2008, and the related consolidated statements of income, shareholder's equity, and cash flows for each of the three years in the period ended December 31, 2009. These financial statements are the responsibility of RiverSource Life Insurance Company's management. Our responsibility is to express an opinion on these financial statements 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 audits 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. 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 consolidated financial position of RiverSource Life Insurance Company at December 31, 2009 and 2008, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles. As discussed in Note 3 to the consolidated financial statements, in 2009 the Company adopted new accounting guidance related to the recognition and presentation of other-than-temporary impairments. Also, in 2008, the Company adopted new accounting guidance related to the measurement of fair value and in 2007, the Company adopted new guidance related to the accounting for uncertainty in income taxes as well as new guidance related to accounting for deferred acquisition costs in connection with modifications or exchanges of insurance and annuity contracts. /s/ Ernst & Young LLP Minneapolis, Minnesota February 23, 2010 F-1 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS (IN MILLIONS, EXCEPT SHARE AMOUNTS)
DECEMBER 31, 2009 2008 ASSETS Investments: Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2009, $25,142; 2008, $19,452) $25,999 $18,070 Common and preferred stocks, at fair value (cost: 2009 and 2008, $30) 23 16 Commercial mortgage loans, at cost (less allowance for loan losses: 2009, $30; 2008, $17) 2,532 2,737 Policy loans 715 722 Trading securities and other investments 310 452 - ------------------------------------------------------------------------------------------------- Total investments 29,579 21,997 Cash and cash equivalents 811 3,307 Restricted cash 184 -- Reinsurance recoverables 1,688 1,592 Deferred income taxes, net 63 599 Other receivables 332 102 Accrued investment income 303 239 Deferred acquisition costs 4,285 4,324 Deferred sales inducement costs 524 518 Other assets 936 2,658 Separate account assets 54,267 41,787 - ------------------------------------------------------------------------------------------------- Total assets $92,972 $77,123 ================================================================================================= LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities: Future policy benefits $30,383 $28,753 Policy claims and other policyholders' funds 123 172 Line of credit with Ameriprise Financial, Inc. 300 -- Other liabilities 1,955 2,672 Separate account liabilities 54,267 41,787 - ------------------------------------------------------------------------------------------------- Total liabilities 87,028 73,384 - ------------------------------------------------------------------------------------------------- Shareholder's equity: Common stock, $30 par value; 100,000 shares authorized, issued and outstanding 3 3 Additional paid-in capital 2,445 2,116 Retained earnings 3,114 2,336 Accumulated other comprehensive income (loss), net of tax 382 (716) - ------------------------------------------------------------------------------------------------- Total shareholder's equity 5,944 3,739 - ------------------------------------------------------------------------------------------------- Total liabilities and shareholder's equity $92,972 $77,123 =================================================================================================
See Notes to Consolidated Financial Statements. F-2 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF INCOME (IN MILLIONS)
YEARS ENDED DECEMBER 31, 2009 2008 2007 REVENUES Premiums $ 450 $ 438 $ 439 Net investment income 1,526 1,252 1,424 Policy and contract charges 1,156 1,352 1,217 Other revenues 233 255 255 Net realized investment gains (losses) 59 (442) 61 - ------------------------------------------------------------------------------------------------------- Total revenues 3,424 2,855 3,396 - ------------------------------------------------------------------------------------------------------- BENEFITS AND EXPENSES Benefits, claims, losses and settlement expenses 841 673 760 Interest credited to fixed accounts 903 790 847 Amortization of deferred acquisition costs 145 861 470 Separation costs -- -- 97 Other insurance and operating expenses 550 649 735 - ------------------------------------------------------------------------------------------------------- Total benefits and expenses 2,439 2,973 2,909 - ------------------------------------------------------------------------------------------------------- Pretax income (loss) 985 (118) 487 Income tax provision (benefit) 245 (189) 53 - ------------------------------------------------------------------------------------------------------- Net income $ 740 $ 71 $ 434 ======================================================================================================= Supplemental Disclosures: Net realized investment gains (losses): Net realized investment gains before impairment losses on securities $ 121 - ------------------------------------------------------------------------------------------------------- Total other-than-temporary impairment losses on securities (53) Portion of loss recognized in other comprehensive income (9) - ------------------------------------------------------------------------------------------------------- Net impairment losses recognized in net realized investment gains (losses) (62) - ------------------------------------------------------------------------------------------------------- Net realized investment gains (losses) $ 59 =======================================================================================================
See Notes to Consolidated Financial Statements. F-3 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (IN MILLIONS)
YEARS ENDED DECEMBER 31, 2009 2008 2007 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 740 $ 71 $ 434 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Capitalization of deferred acquisition and deferred sales inducement costs (640) (674) (823) Amortization of deferred acquisition and deferred sales inducement costs 155 982 523 Depreciation, amortization and accretion, net (68) 61 71 Deferred income tax (benefit) expense (81) (234) 83 Contractholder and policyholder charges, non-cash (259) (248) (206) Net realized investment gains (135) (7) (44) Other-than-temporary impairments and provision for loan losses recognized in net realized investment (gains) losses 76 449 (17) Change in operating assets and liabilities: Trading securities and equity method investments, net 136 (110) 166 Future policy benefits for traditional life, disability income and long term care insurance 282 308 275 Policy claims and other policyholders' funds (49) 81 2 Reinsurance recoverables (96) (302) (153) Other receivables (5) 20 (28) Accrued investment income (64) 14 49 Derivatives collateral, net (1,928) 1,591 242 Other assets and liabilities, net 670 23 (226) - ------------------------------------------------------------------------------------------------------- Net cash provided by (used in) operating activities (1,266) 2,025 348 - ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Available-for-Sale securities: Proceeds from sales 5,215 246 3,020 Maturities, sinking fund payments and calls 3,486 2,510 1,908 Purchases (13,696) (1,684) (677) Proceeds from sales and maturities of commercial mortgage loans 279 263 424 Funding of commercial mortgage loans (104) (110) (504) Proceeds from sales of other investments 43 19 49 Purchases of other investments (11) (140) -- Change in policy loans, net 7 (25) (47) - ------------------------------------------------------------------------------------------------------- Net cash provided by (used in) investing activities (4,781) 1,079 4,173 - ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Policyholder and contractholder account values: Considerations received 4,863 2,913 1,093 Net transfers from (to) separate accounts 195 91 (50) Surrenders and other benefits (1,923) (2,931) (3,838) Proceeds from line of credit with Ameriprise Financial, Inc. 500 -- -- Deferred premium options, net (82) (77) (8) Tax adjustment on share-based incentive compensation plan (2) 2 2 Cash dividend to Ameriprise Financial, Inc. -- (775) (900) - ------------------------------------------------------------------------------------------------------- Net cash provided by (used in) financing activities 3,551 (777) (3,701) - ------------------------------------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents (2,496) 2,327 820 Cash and cash equivalents at beginning of year 3,307 980 160 - ------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of year $ 811 $ 3,307 $ 980 ======================================================================================================= Supplemental Disclosures: Income taxes paid (received), net $ 72 $ 168 $ (4) Interest paid on borrowings 1 -- -- Non-cash transactions: Capital contributions from Ameriprise Financial, Inc. $ 331 $ 322 $ 8
See Notes to Consolidated Financial Statements. F-4 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY THREE YEARS ENDED DECEMBER 31, 2009 (IN MILLIONS)
ACCUMULATED ADDITIONAL OTHER COMMON PAID-IN RETAINED COMPREHENSIVE STOCK CAPITAL EARNINGS INCOME (LOSS) TOTAL - ------------------------------------------------------------------------------------------------------------------- BALANCES AT JANUARY 1, 2007 $ 3 $2,021 $3,788 $ (209) $5,603 Change in accounting principles, net of tax -- -- (134) -- (134) Comprehensive income: Net income -- -- 434 -- 434 Other comprehensive income, net of tax: Change in net unrealized securities losses -- -- -- 52 52 Change in net unrealized derivative losses -- -- -- 1 1 ------------ Total comprehensive income 487 Tax adjustment on share-based incentive compensation plan -- 2 -- -- 2 Cash dividends to Ameriprise Financial, Inc. -- -- (900) -- (900) Non-cash capital contribution from Ameriprise Financial, Inc. -- 8 -- -- 8 - ------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2007 $ 3 $2,031 $3,188 $ (156) $5,066 Change in accounting principles, net of tax -- -- (30) -- (30) Comprehensive income: Net income -- -- 71 -- 71 Other comprehensive income (loss), net of tax: Change in net unrealized securities losses -- -- -- (562) (562) Change in net unrealized derivative losses -- -- -- 2 2 ------------ Total comprehensive loss (489) Tax adjustment on share-based incentive compensation plan -- 2 -- -- 2 Cash dividends to Ameriprise Financial, Inc. -- -- (775) -- (775) Non-cash capital contribution from Ameriprise Financial, Inc. -- 83 -- -- 83 Non-cash dividend to Ameriprise Financial, Inc. -- -- (118) -- (118) - ------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2008 $ 3 $2,116 $2,336 $ (716) $3,739 Change in accounting principles, net of tax -- -- 38 (38) -- Comprehensive income: Net income -- -- 740 -- 740 Other comprehensive income, net of tax: Change in net unrealized securities losses -- -- -- 1,109 1,109 Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities -- -- -- 23 23 Change in net unrealized derivative losses -- -- -- 4 4 ------------ Total comprehensive income 1,876 Tax adjustment on share-based incentive compensation plan -- (2) -- -- (2) Non-cash capital contribution from Ameriprise Financial, Inc. -- 331 -- -- 331 - ------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2009 $ 3 $2,445 $3,114 $ 382 $5,944 ===================================================================================================================
See Notes to Consolidated Financial Statements. F-5 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION Nature of Business RiverSource Life Insurance Company is a stock life insurance company with one wholly owned operating subsidiary, RiverSource Life Insurance Co. of New York ("RiverSource Life of NY"). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. ("Ameriprise Financial"). - - RiverSource Life Insurance Company is domiciled in Minnesota and holds Certificates of Authority in American Samoa, the District of Columbia and all states except New York. RiverSource Life Insurance Company issues insurance and annuity products. - - RiverSource Life of NY is a stock life insurance company domiciled in New York, which holds Certificates of Authority in New York, North Dakota and Delaware. RiverSource Life of NY issues insurance and annuity products. On December 31, 2008, Ameriprise Financial contributed all of the issued and outstanding shares of RiverSource Tax Advantaged Investments, Inc. ("RTA") to RiverSource Life Insurance Company. RTA is domiciled in Delaware and is a limited partner in affordable housing partnership investments. RiverSource Life Insurance Company and its subsidiaries are referred to collectively in these notes as "RiverSource Life". Ameriprise Financial was formerly a wholly owned subsidiary of American Express Company ("American Express"). On February 1, 2005, the American Express Board of Directors 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 the distribution of Ameriprise Financial 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 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. Through 2007, RiverSource Life was allocated certain expenses incurred as a result of Ameriprise Financial becoming an independent company. The separation from American Express was completed in 2007. RiverSource Life's principal products are variable deferred annuities and variable universal life insurance which are issued primarily to individuals. It also offers fixed annuities where assets accumulate until the contract is surrendered, the contractholder (or in some contracts, the annuitant) dies, or the contractholder or annuitant begins receiving benefits under an annuity payout option. It also offers immediate annuities in which payments begin within one year of issue and continue for life or for a fixed period of time. RiverSource Life's fixed deferred annuities guarantee a relatively low annual interest rate during the accumulation period (the time before annuity payments begin). However, RiverSource Life has the option of paying a higher rate set at its discretion. In addition, persons owning an equity indexed annuity may have their interest calculated based on an increase in a broad-based stock market index. RiverSource Life issues both variable and fixed universal life insurance, traditional life insurance and disability income ("DI") insurance. Universal life insurance is a form of permanent life insurance characterized by flexible premiums, flexible death benefit amounts and unbundled pricing factors (i.e., mortality, interest and expenses). Traditional life insurance refers to whole and term life insurance policies that pay a specified sum to a beneficiary upon death of the insured for a fixed premium. Variable universal life insurance combines the premium and death benefit flexibility of universal life with underlying fund investment flexibility and the risks associated therewith. Waiver of premium and accidental death benefit riders are generally available with these life insurance products. RiverSource Life issues only non- participating life insurance policies which do not pay dividends to policyholders from realized policy margins. Under RiverSource Life's variable life insurance and variable annuity products described above, the purchaser may choose among investment options that include RiverSource Life's "general account" as well as from a variety of portfolios including common stocks, bonds, managed assets and/or short-term securities. Basis of Presentation The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and its wholly owned subsidiaries, RiverSource Life of NY and RTA. RiverSource Life evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through February 23, 2010, the date the financial statements were issued. RECLASSIFICATIONS The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles ("GAAP") which vary in certain respects from reporting practices prescribed or permitted by state insurance F-6 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- regulatory authorities as described in Note 13. Certain reclassifications of prior year amounts have been made to conform to the current presentation. In the first quarter of 2009, RiverSource Life reclassified reinsurance allowances for coinsurance contracts for traditional life and long term care insurance from premiums to other insurance and operating expenses to net with the associated expenses. The following table shows the impact of the reclassification of the reinsurance allowances made to RiverSource Life's previously reported Consolidated Statements of Income.
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31, 2008 2007 ------------------------------------------------------ PREVIOUSLY PREVIOUSLY (IN MILLIONS) REPORTED RECLASSIFIED REPORTED RECLASSIFIED - ------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 481 $ 438 $ 485 $ 439 Net investment income 1,252 1,252 1,424 1,424 Policy and contract charges 1,352 1,352 1,217 1,217 Other revenue 255 255 255 255 Net realized investment gain (442) (442) 61 61 - ------------------------------------------------------------------------------------------------------------- Total revenues 2,898 2,855 3,442 3,396 - ------------------------------------------------------------------------------------------------------------- BENEFITS AND EXPENSES Benefits, claims, losses and settlement expenses 673 673 760 760 Interest credited to fixed accounts 790 790 847 847 Amortization of deferred acquisition costs 861 861 470 470 Separation costs -- -- 97 97 Other insurance and operating expenses 692 649 781 735 - ------------------------------------------------------------------------------------------------------------- Total benefits and expenses 3,016 2,973 2,955 2,909 - ------------------------------------------------------------------------------------------------------------- Pretax income (118) (118) 487 487 Income tax provision (189) (189) 53 53 - ------------------------------------------------------------------------------------------------------------- NET INCOME $ 71 $ 71 $ 434 $ 434 =============================================================================================================
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION RiverSource Life consolidates all entities in which it holds a greater than 50% voting interest or when certain conditions are met for variable interest entities ("VIEs") and limited partnerships, except for immaterial seed money investments in separate accounts, which are accounted for as trading securities. Entities in which RiverSource Life holds a greater than 20% but less than 50% voting interest are accounted for under the equity method. Additionally, other investments in which RiverSource Life holds an interest that is less than 50% are accounted for under the equity method. All other investments that are not reported at fair value as Available-for-Sale or trading securities are accounted for under the cost method where RiverSource Life owns less than a 20% voting interest and does not exercise significant influence. Generally, a VIE is a corporation, partnership, trust or any other legal structure that either does not have equity investors with substantive voting rights or has equity investors that do not provide sufficient financial resources for the entity to support its activities. To determine whether RiverSource Life must consolidate a VIE, it analyzes the design of the VIE to identify the variable interests it holds. Then RiverSource Life quantitatively determines whether its variable interests will absorb a majority of the VIE's variability. If RiverSource Life determines it will absorb a majority of the VIE's expected variability, RiverSource Life consolidates the VIE and is referred to as the primary beneficiary. The calculation of variability is based on an analysis of projected probability-weighted cash flows based on the design of the particular VIE. All material intercompany transactions and balances between and among RiverSource Life and its subsidiaries have been eliminated in consolidation. AMOUNTS BASED ON ESTIMATES AND ASSUMPTIONS Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, valuation of deferred acquisition costs ("DAC") and the corresponding recognition of DAC amortization, derivative instruments and hedging activities, claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. F-7 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- INVESTMENTS Investments consist of the following: Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (loss), net of income tax provision (benefit) and net of adjustments in other asset and liability balances, such as DAC, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet date. Gains and losses are recognized in the Consolidated Statements of Income upon disposition of the securities. Effective January 1, 2009, RiverSource Life early adopted an accounting standard that significantly changed RiverSource Life's accounting policy regarding the timing and amount of other-than-temporary impairments for Available-for-Sale securities. When the fair value of an investment is less than its amortized cost, RiverSource Life assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not RiverSource Life will be required to sell the security before its anticipated recovery. If either of these conditions is met, an other-than-temporary impairment is considered to have occurred and RiverSource Life must recognize an other-than-temporary impairment for the difference between the investment's amortized cost basis and its fair value through earnings. For securities that do not meet the above criteria and RiverSource Life does not expect to recover a security's amortized cost basis, the security is also considered other-than- temporarily impaired. For these securities, RiverSource Life separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairments related to credit loss is recognized in earnings. The amount of the total other-than- temporary impairments related to other factors is recognized in other comprehensive income (loss), net of impacts to DAC, deferred sales inducement costs ("DSIC"), certain benefit reserves and income taxes. For Available-for- Sale securities that have recognized an other-than-temporary impairment through earnings, if through subsequent evaluation there is a significant increase in the cash flow expected, the difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in other comprehensive income (loss). RiverSource Life's Consolidated Statements of Shareholder's Equity present all changes in other comprehensive income (loss) associated with Available-for-Sale debt securities that have been other-than-temporarily impaired on a separate line from fair value changes recorded in other comprehensive income (loss) from all other securities. RiverSource Life provides a supplemental disclosure on the face of its Consolidated Statements of Income that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other- than-temporary impairment losses recognized in other comprehensive income (loss). The sum of these amounts represents the credit-related portion of other- than-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in other comprehensive income (loss) includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Income as the portion of other-than-temporary losses recognized in other comprehensive income (loss) excludes subsequent increases and decreases in the fair value of these securities. For all securities that are considered temporarily impaired, RiverSource Life does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that RiverSource Life will be required to sell the security before recovery of its amortized cost basis. RiverSource Life believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired. Factors RiverSource Life considers in determining whether declines in the fair value of fixed-maturity securities are other-than-temporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security's effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and RiverSource Life's position in the debtor's overall capital structure. For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities, asset backed securities and other structured investments), RiverSource Life also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. F-8 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Based upon these factors, securities that have indicators of potential other- than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be carefully monitored by management. For the year ended December 31, 2009, certain non- agency residential mortgage backed securities were deemed other-than-temporarily impaired. Generally, the credit loss component for the non-agency residential mortgage backed securities is determined as the amount the amortized cost basis exceeds the present value of the projected cash flows expected to be collected. Significant inputs considered in these projections are consistent with the factors considered in assessing potential other-than-temporary impairment for these investments. Current contractual interest rates considered in these cash flow projections are used to calculate the discount rate used to determine the present value of the expected cash flows. Commercial Mortgage Loans, Net Commercial mortgage loans, net, reflect principal amounts outstanding less the allowance for loan losses. The allowance for loan losses is primarily based on RiverSource Life's past loan loss experience, known and inherent risks in the portfolio, composition of the loan portfolio, current economic conditions, and other relevant factors. Loans in this portfolio are generally smaller balance and homogeneous in nature and accordingly RiverSource Life follows accounting guidance on contingencies when establishing necessary reserves for losses inherent in the portfolio. For larger balance or restructured loans that are collateral dependent, the allowance is based on the fair value of collateral. Management regularly evaluates the adequacy of the allowance for loan losses and believes it is adequate to absorb estimated losses in the portfolio. RiverSource Life generally stops accruing interest on commercial mortgage loans for which interest payments are delinquent more than three months. Based on management's judgment as to the ultimate collectability of principal, interest payments received are either recognized as income or applied to the recorded investment in the loan. Policy Loans Policy loans include life insurance policy and annuity loans. These loans are carried at the aggregate of the unpaid loan balances, which do not exceed the cash surrender values of underlying products, plus accrued interest. Trading Securities and Other Investments Included in trading securities and other investments are separate account and mutual fund seed money, equity method investments, trading bonds, interests in affordable housing partnerships and below investment grade syndicated bank loans. Separate account and mutual fund seed money is carried at fair value with changes in value recognized within net investment income. Affordable housing partnerships are accounted for under the equity method. Below investment grade syndicated bank loans reflect amortized cost less allowance for losses. CASH AND CASH EQUIVALENTS Cash equivalents include highly liquid investments with original maturities of 90 days or less. RESTRICTED CASH Total restricted cash at December 31, 2009 and 2008 was $184 million and nil, respectively, consisting of cash that is pledged to counterparties. REINSURANCE RiverSource Life cedes significant amounts of insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Traditional life, long term care ("LTC") and DI reinsurance premium, net of the change in any prepaid reinsurance asset, is reported as a reduction of premiums. Fixed and variable universal life reinsurance premium is reported as a reduction of policy and contract charges. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses. Insurance liabilities are reported before the effects of reinsurance. Future policy benefits and policy claims and other policyholders' funds recoverable under reinsurance contracts are recorded as reinsurance recoverables. RiverSource Life also assumes life insurance and fixed annuity business from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within future policy benefits. See Note 7 for additional information on reinsurance. LAND, BUILDINGS, EQUIPMENT AND SOFTWARE Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. RiverSource Life generally uses the straight-line method of depreciation and F-9 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- amortization over periods ranging from three to 30 years. During 2009, RiverSource Life received a non-cash capital contribution of $131 million comprised of two buildings and the related land from Ameriprise Financial. At December 31, 2009 and 2008, land, buildings, equipment and software were $190 million and $43 million, respectively, net of accumulated depreciation of $52 million and $9 million, respectively. Depreciation and amortization expense for the years ended December 31, 2009, 2008 and 2007 was $8 million, $5 million and $1 million, respectively. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. See Note 11 for information regarding RiverSource Life's fair value measurement of derivative instruments. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. RiverSource Life primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. RiverSource Life occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm commitments ("fair value hedges") or (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedges"). RiverSource Life's policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. For derivative instruments that do not qualify for hedge accounting or are not designated as hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Income based on the nature and use of the instrument. Changes in derivatives used as economic hedges are presented in the Consolidated Statements of Income with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as of the hedged risk within the corresponding hedged assets, liabilities or firm commitments, are recognized in current earnings. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. For derivative 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 Consolidated Statements of Income with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported currently in earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income (loss) is 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. See Note 15 for information regarding the impact of derivatives on the Consolidated Statements of Income. Derivative instruments that are entered into for hedging purposes are designated as such at the time RiverSource Life enters into the contract. For all derivative instruments that are designated for hedging activities, RiverSource Life 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. RiverSource Life 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, RiverSource Life will discontinue the application of hedge accounting. The equity component of equity indexed annuity obligations is considered an embedded derivative. Additionally, certain annuities contain guaranteed minimum accumulation benefit ("GMAB") and guaranteed minimum withdrawal benefit ("GMWB") provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. The fair value of embedded derivatives associated with annuities is included in future policy benefits. The change in the fair value of the equity indexed annuity embedded derivatives is reflected in the interest credited to fixed accounts. The changes in the fair value of the GMWB and GMAB embedded derivatives are reflected in benefits, claims, losses and settlement expenses. DEFERRED ACQUISITION COSTS DAC represents the cost of acquiring new business, principally direct sales commissions and other distribution and underwriting costs that have been deferred on the sale of annuity and insurance products. These costs are deferred to the extent they are recoverable from future profits or premiums. The DAC associated with insurance or annuity contracts that are F-10 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. Direct sales commissions and other costs deferred as DAC is amortized over time. For annuity and universal life ("UL") contracts, DAC is amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC is generally amortized as a percentage of premiums over amortization periods equal to the premium-paying period. For annuity and UL insurance products, the assumptions made in projecting future results and calculating the DAC balance and DAC amortization expense are management's best estimates. Management is required to update these assumptions whenever it appears that, based on actual experience or other evidence, earlier estimates should be revised. When assumptions are changed, the percentage of estimated gross profits used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. For other life, DI and LTC insurance products, the assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities and therefore are intended to provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC is not recoverable. If management concludes that DAC is not recoverable, DAC is reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in RiverSource Life's Consolidated Statements of Income. For annuity, life, DI and LTC insurance products, key assumptions underlying these long-term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance, mortality and morbidity rates and the rates at which policyholders are expected to surrender their contracts, make withdrawals from their contracts and make additional deposits to their contracts. Assumptions about earned and credited interest rates are the primary factors used to project interest margins, while assumptions about equity and bond market performance are the primary factors used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make assumptions to project maintenance expenses associated with servicing its annuity and insurance businesses during the DAC amortization period. The client asset value growth rates are the rates at which variable annuity and variable universal life ("VUL") insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. RiverSource Life typically uses a five-year mean reversion process as a guideline in setting near-term equity asset growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term growth rate is reviewed to ensure consistency with management's assessment of anticipated equity market performance. In 2009, management continued to follow the mean reversion process, decreasing near-term equity asset growth rates to reflect the positive market. DAC amortization expense recorded in a period when client asset value growth rates exceed management's near-term estimate will typically be less than in a period when growth rates fall short of management's near-term estimate. RiverSource Life monitors other principal DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin and maintenance expense levels each quarter and, when assessed independently, each could impact RiverSource Life's DAC balances. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless management identifies a significant deviation over the course of its quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. DEFERRED SALES INDUCEMENT COSTS DSIC consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. The amortization of DSIC is recorded in benefits, claims, losses and settlement expenses. F-11 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- SEPARATE ACCOUNT ASSETS AND LIABILITIES Separate account assets and liabilities are primarily funds held for the exclusive benefit of variable annuity contractholders and variable life insurance policyholders. RiverSource Life receives mortality and expense risk and other fees, guarantee fees and cost of insurance charges from the related accounts. FUTURE POLICY BENEFITS AND POLICY CLAIMS AND OTHER POLICYHOLDERS' FUNDS Fixed Annuities and Variable Annuity Guarantees Future policy benefits and policy claims and other policyholders' funds related to fixed annuities and variable annuity guarantees include liabilities for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, equity indexed annuities and fixed annuities in a payout status. Liabilities for fixed account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. The majority of the variable annuity contracts offered by RiverSource Life contain guaranteed minimum death benefit ("GMDB") provisions. When market values of the customer's accounts decline, the death benefit payable on a contract with a GMDB may exceed the contract accumulation value. RiverSource Life also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up ("GGU") benefits. In addition, RiverSource Life offers contracts containing GMWB and GMAB provisions and, until May 2007, RiverSource Life offered contracts containing guaranteed minimum income benefit ("GMIB") provisions. In determining the liabilities for GMDB, GMIB and the life contingent benefits associated with GMWB, RiverSource Life projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guarantees a minimum lifetime annuity based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated meaningful life based on expected assessments. The embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions are recorded at fair value. See Note 11 for information regarding the fair value measurement of embedded derivatives. The liability for the life contingent benefits associated with GMWB provisions is determined in the same way as the GMDB liability. The changes in both the fair values of the GMWB and GMAB embedded derivatives and the liability for life contingent benefits are reflected in benefits, claims, losses and settlement expenses. Liabilities for equity indexed annuities are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates, ranging from 4.6% to 9.5% at December 31, 2009, depending on year of issue, with an average rate of approximately 5.7%. Life, Disability Income and Long Term Care Insurance Future policy benefits and policy claims and other policyholders' funds related to life, DI and LTC insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI and LTC policies as claims are incurred in the future. Liabilities for fixed account values on fixed and variable universal life insurance are equal to accumulation values. Accumulation values are the cumulative gross deposits and credited interest less various contractual expense and mortality charges and less amounts withdrawn by policyholders. F-12 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported DI and LTC claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These amounts are calculated based on claim continuance tables which estimate the likelihood an individual will continue to be eligible for benefits. Present values are calculated at interest rates established when claims are incurred. Anticipated claim continuance rates are based on established industry tables, adjusted as appropriate for RiverSource Life's experience. Interest rates used with DI claims ranged from 3.0% to 8.0% at December 31, 2009, with an average rate of 4.7%. Interest rates used with LTC claims ranged from 4.0% to 7.0% at December 31, 2009, with an average rate of 4.1%. Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported. Liabilities for estimates of benefits that will become payable on future claims on term life, whole life, DI and LTC policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on RiverSource Life's experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. Anticipated interest rates for term and whole life ranged from 4.0% to 10.0% at December 31, 2009, depending on policy form, issue year and policy duration. Anticipated interest rates for DI vary by plan and were 7.5% and 6.0% at policy issue grading to 5.0% over five years and 4.5% over 20 years, respectively. Anticipated interest rates for LTC policy reserves can vary by plan and year and ranged from 5.8% to 9.4% at December 31, 2009. Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverables. SOURCES OF REVENUE RiverSource Life's principal sources of revenue include premium revenues, net investment income and policy and contract charges. Premium Revenues Premium revenues include premiums on traditional life, DI and LTC insurance products and immediate annuities with a life contingent feature. Premiums on traditional life, DI and LTC insurance are net of reinsurance ceded and are recognized as revenue when due. Net Investment Income Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, commercial mortgage loans and policy loans, other investments and cash and cash equivalents; the changes in fair value of trading securities and certain derivatives; and the pro-rata share of net income or loss on equity method investments. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale and commercial mortgage loans so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. Policy and Contract Charges Policy and contract charges include mortality and expense risk fees and certain charges assessed on annuities and fixed and variable universal life insurance, such as cost of insurance, net of reinsurance premiums for universal life insurance products, and administrative and surrender charges. Mortality and expense risk fees include risk, management and administration fees, which are generated directly and indirectly from RiverSource Life's separate account assets. Cost of insurance charges on fixed and variable universal life insurance and contract charges and surrender charges on annuities and universal and variable universal life insurance are recognized as revenue when collected. Net Realized Investment Gains (Losses) Realized gains and losses on the sale of securities are recognized using the specific identification method, on a trade date basis, and charges for investments determined to be other-than-temporarily impaired and related to credit losses. OTHER INSURANCE AND OPERATING EXPENSES Other insurance and operating expenses primarily include expenses allocated to RiverSource Life from its parent, Ameriprise Financial, for RiverSource Life's share of compensation, professional and consultant fees and expenses associated with information technology and communications, facilities and equipment, advertising and promotion and legal and regulatory costs. F-13 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- INCOME TAXES As a result of the Separation of Ameriprise Financial from American Express, RiverSource Life will not be able to file a consolidated U.S. federal income tax return with other members of Ameriprise Financial's affiliated group until 2010. RiverSource Life's provision for income taxes represents the net amount of income taxes that it expects to pay or to receive from various taxing jurisdictions in connection with its operations. RiverSource Life provides for income taxes based on amounts that it 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, the consolidated 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. Among RiverSource Life's deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. RiverSource Life is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. 3. RECENT ACCOUNTING PRONOUNCEMENTS ADOPTION OF NEW ACCOUNTING STANDARDS Accounting and Reporting for Decreases in Ownership of a Subsidiary In January 2010, the Financial Accounting Standards Board ("FASB") updated the accounting standards to clarify the accounting and disclosure requirements for changes in the ownership percentage of a subsidiary. The additional disclosures primarily relate to instances when a subsidiary is deconsolidated or a group of assets is derecognized. The additional disclosures primarily relate to fair value considerations, the parent's involvement with the deconsolidated entity and related party considerations. The standard is effective for the first interim or annual reporting period ending after December 15, 2009. RiverSource Life adopted the standard in the fourth quarter of 2009. The adoption did not have any effect on RiverSource Life's consolidated financial condition and results of operations. Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) In September 2009, the FASB updated the accounting standards to allow for net asset value ("NAV") to be used as a practical expedient in estimating the fair value of alternative investments without readily determinable fair values. The standard also requires additional disclosure by major category of investment related to restrictions on the investor's ability to redeem the investment as of the measurement date, unfunded commitments and the investment strategies of the investees. The disclosures are required for all investments within the scope of the standard regardless of whether the fair value of the investment is measured using the NAV or another method. The standard is effective for interim and annual periods ending after December 15, 2009, with early adoption permitted. RiverSource Life adopted the standard in the fourth quarter of 2009. The adoption did not have a material effect on RiverSource Life's consolidated financial condition and results of operations. Measuring Liabilities at Fair Value In August 2009, the FASB updated the accounting standards to provide additional guidance on estimating the fair value of a liability. The standard is effective for the first reporting period, including interim periods, beginning after issuance. RiverSource Life adopted the standard in the fourth quarter of 2009. The adoption did not have a material effect on RiverSource Life's consolidated financial condition and results of operations. The Hierarchy of GAAP In June 2009, the FASB established the FASB Accounting Standards Codification(TM) ("Codification") as the single source of authoritative accounting principles recognized by the FASB in the preparation of financial statements in conformity with GAAP. The Codification supersedes existing nongrandfathered, non-SEC accounting and reporting standards. The Codification did not change GAAP but rather organized it into a hierarchy where all guidance within the Codification carries an equal level of authority. The Codification became effective on July 1, 2009. The Codification did not have a material effect on RiverSource Life's consolidated financial condition and results of operations. F-14 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Subsequent Events In May 2009, the FASB updated the accounting standards on the recognition and disclosure of subsequent events. The standard also requires the disclosure of the date through which subsequent events were evaluated. The standard is effective for interim and annual reporting periods ending after June 15, 2009, and shall be applied prospectively. RiverSource Life adopted the standard in the second quarter of 2009. The adoption did not have a material effect on RiverSource Life's consolidated financial condition and results of operations. Fair Value In April 2009, the FASB updated the accounting standards to provide guidance on estimating the fair value of a financial asset or liability when the trade volume and level of activity for the asset or liability have significantly decreased relative to historical levels. The standard requires entities to disclose the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, debt and equity securities as defined by GAAP shall be disclosed by major category. This standard is effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009, and is to be applied prospectively. RiverSource Life early adopted the standard in the first quarter of 2009. The adoption did not have a material effect on RiverSource Life's consolidated financial condition and results of operations. In September 2006, the FASB updated the accounting standards to define fair value, establish a framework for measuring fair value and expand disclosures about fair value measurements. RiverSource Life adopted the standard effective January 1, 2008 and recorded a cumulative effect reduction to the opening balance of retained earnings of $30 million, net of DAC and DSIC amortization and income taxes. This reduction to retained earnings was related to adjusting the fair value of certain derivatives RiverSource Life uses to hedge its exposure to market risk related to certain variable annuity riders. Prior to January 1, 2008, RiverSource Life recorded these derivatives in accordance with accounting guidance for derivative contracts held for trading purposes and contracts involved in energy trading and risk management activities. The new standard nullifies the previous guidance and requires these derivatives to be marked to the price RiverSource Life would receive to sell the derivatives to a market participant (an exit price). The adoption of the standard also resulted in adjustments to the fair value of RiverSource Life's embedded derivative liabilities associated with certain variable annuity riders. Since there is no market for these liabilities, RiverSource Life considered the assumptions participants in a hypothetical market would make to determine an exit price. As a result, RiverSource Life adjusted the valuation of these liabilities by updating certain policyholder assumptions, adding explicit margins to provide for profit, risk, and expenses, and adjusting the rate used to discount expected cash flows to reflect a current market estimate of RiverSource Life's risk of nonperformance specific to these liabilities. These adjustments resulted in an adoption impact of a $4 million increase in earnings, net of DAC and DSIC amortization and income taxes, at January 1, 2008. The nonperformance risk component of the adjustment is specific to the risk of RiverSource Life not fulfilling these liabilities. As RiverSource Life's estimate of this credit spread widens or tightens, the liability will decrease or increase. Recognition and Presentation of Other-Than-Temporary Impairments In April 2009, the FASB updated the accounting standards for the recognition and presentation of other-than-temporary impairments. The standard amends existing guidance on other-than-temporary impairments for debt securities and requires that the credit portion of other-than-temporary impairments be recorded in earnings and the noncredit portion of losses be recorded in other comprehensive income (loss) when the entity does not intend to sell the security and it is more likely than not that the entity will not be required to sell the security prior to recovery of its cost basis. The standard requires separate presentation of both the credit and noncredit portions of other-than-temporary impairments on the financial statements and additional disclosures. This standard is effective for interim and annual reporting periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009. At the date of adoption, the portion of previously recognized other-than-temporary impairments that represent the noncredit related loss component shall be recognized as a cumulative effect of adoption with an adjustment to the opening balance of retained earnings with a corresponding adjustment to accumulated other comprehensive income (loss). RiverSource Life adopted the standard in the first quarter of 2009 and recorded a cumulative effect increase to the opening balance of retained earnings of $38 million, net of DAC and DSIC amortization, certain benefit reserves and income taxes, and a corresponding increase to accumulated other comprehensive loss, net of impacts to DAC and DSIC amortization, certain benefit reserves and income taxes. See Note 4 for RiverSource Life's required disclosures. Disclosures about Derivative Instruments and Hedging Activities In March 2008, the FASB updated the accounting standards for disclosures about derivative instruments and hedging activities. The standard intends to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures about their impact on an entity's financial position, financial performance, and cash flows. The standard requires disclosures regarding the objectives for using derivative instruments, the fair value of derivative instruments and their related gains and losses, and the accounting for derivatives and related hedged items. The standard is effective for fiscal years and F-15 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- interim periods beginning after November 15, 2008, with early adoption permitted. RiverSource Life applied the new disclosure requirements in the first quarter of 2009. See Note 15 for the required disclosures. Noncontrolling Interests in Consolidated Financial Statements In December 2007, the FASB updated the accounting standards for noncontrolling interests in consolidated financial statements to establish the accounting and reporting for ownership interest in subsidiaries not attributable, directly or indirectly, to a parent. The standard requires noncontrolling (minority) interests to be classified as equity (instead of as a liability) within the Consolidated Balance Sheets, and net income (loss) attributable to both the parent and the noncontrolling interests to be disclosed on the face of the Consolidated Statements of Income. The standard is effective for fiscal years beginning after December 15, 2008, and interim periods within those years with early adoption prohibited. The provisions of the standard are to be applied prospectively, except for the presentation and disclosure requirements which are to be applied retrospectively to all periods presented. RiverSource Life adopted the new standard as of January 1, 2009 and there was no impact on its consolidated financial condition and results of operations. Uncertainty in Income Taxes In June 2006, the FASB updated the accounting standards related to uncertainty in income taxes. The standard 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. The standard also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. RiverSource Life adopted the standard as of January 1, 2007. The effect of adopting the standard on RiverSource Life's consolidated financial condition and results of operations was not material. DAC Costs in Connection With Modifications or Exchanges of Insurance Contracts In September 2005, the accounting standards related to DAC in connection with modifications or exchanges of insurance contracts were updated. The standard provides clarifying guidance on accounting for DAC associated with an insurance or annuity contract that is significantly modified or is internally replaced with another contract. Prior to adoption, RiverSource Life accounted for many of these transactions as contract continuations and continued amortizing existing DAC against revenue for the new or modified contract. Effective January 1, 2007, RiverSource Life adopted the standard resulting in these transactions being prospectively accounted for as contract terminations. Consistent with this, RiverSource Life now anticipates these transactions in establishing amortization periods and other valuation assumptions. As a result of adopting the standard, RiverSource Life recorded as a cumulative change in accounting principle $206 million, reducing DAC by $204 million, DSIC by $11 million and liabilities for future policy benefits by $9 million. The after-tax decrease to retained earnings for these changes was $134 million. FUTURE ADOPTION OF NEW ACCOUNTING STANDARDS Fair Value In January 2010, the FASB updated the accounting standards related to disclosure about fair value measurements. The standard expands the current disclosure requirements to include additional detail about significant transfers between Levels 1 and 2 within the fair value hierarchy and presenting activity in the rollforward of Level 3 activity on a gross basis. The standard also clarifies existing disclosure requirements related to the level of disaggregation to be used for assets and liabilities as well as disclosures about the inputs and valuation techniques used to measure fair value. The standard is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosure requirements related to the Level 3 rollforward, which are effective for interim and annual periods beginning after December 15, 2010. RiverSource Life will adopt the standard in the first quarter of 2010 except for the additional disclosures related to the Level 3 rollforward, which RiverSource Life will adopt in the first quarter of 2011. The adoption of the standard will not impact RiverSource Life's consolidated financial condition and results of operations. Consolidation of Variable Interest Entities In June 2009, the FASB updated the accounting standards related to the consolidation of variable interest entities. The standard amends current consolidation guidance and requires additional disclosures about an enterprise's involvement in VIEs. The standard is effective for interim and annual reporting periods beginning after November 15, 2009, with early adoption prohibited. RiverSource Life does not expect the adoption to have a material effect on its consolidated financial condition and results of operations. F-16 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- 4. INVESTMENTS Available-for-Sale securities distributed by type were as follows:
DECEMBER 31, 2009 -------------------------------------------------------------------- GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR NON-CREDIT DESCRIPTION OF SECURITIES (IN MILLIONS) COST GAINS LOSSES VALUE OTTI(1) - -------------------------------------------------------------------------------------------------------------------- Fixed maturities: Corporate debt securities $14,245 $ 855 $(106) $14,994 $ 1 Residential mortgage backed securities 5,249 185 (238) 5,196 (41) Commercial mortgage backed securities 3,874 182 (16) 4,040 -- Asset backed securities 877 32 (29) 880 -- State and municipal obligations 647 12 (46) 613 -- U.S. government and agencies obligations 152 7 (1) 158 -- Foreign government bonds and obligations 94 14 (1) 107 -- Other structured investments 4 7 -- 11 7 - -------------------------------------------------------------------------------------------------------------------- Total fixed maturities 25,142 1,294 (437) 25,999 (33) Common and preferred stocks 30 -- (7) 23 -- - -------------------------------------------------------------------------------------------------------------------- Total $25,172 $1,294 $(444) $26,022 $(33) ====================================================================================================================
(1) Represents the amount of other-than-temporary impairment losses in Accumulated Other Comprehensive Income, which starting January 1, 2009, were not included in earnings. Amount includes unrealized gains and losses on impaired securities subsequent to the impairment date. These amounts are included in gross unrealized gains and losses at December 31, 2009.
DECEMBER 31, 2008 ------------------------------------------------------ GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR DESCRIPTION OF SECURITIES (IN MILLIONS) COST GAINS LOSSES VALUE - ------------------------------------------------------------------------------------------------------------- Fixed maturities: Corporate debt securities $12,030 $ 86 $(1,123) $10,993 Residential mortgage backed securities 3,697 59 (220) 3,536 Commercial mortgage backed securities 2,582 35 (174) 2,443 Asset backed securities 682 4 (60) 626 State and municipal obligations 164 1 (20) 145 U.S. government and agencies obligations 200 11 -- 211 Foreign government bonds and obligations 95 16 (4) 107 Other structured investments 2 7 -- 9 - ------------------------------------------------------------------------------------------------------------- Total fixed maturities 19,452 219 (1,601) 18,070 Common and preferred stocks 30 -- (14) 16 - ------------------------------------------------------------------------------------------------------------- Total $19,482 $219 $(1,615) $18,086 =============================================================================================================
At December 31, 2009 and 2008, fixed maturity securities comprised approximately 88% and 82%, respectively, of RiverSource Life's total investments. These securities were rated by Moody's Investors Service ("Moody's"), Standard & Poor's Ratings Services ("S&P") and Fitch Ratings Ltd. ("Fitch"), except for approximately $1.1 billion of securities at both December 31, 2009 and 2008, which were rated by RiverSource Investments, LLC's internal analysts using criteria similar to Moody's, S&P and Fitch. Ratings on fixed maturity securities are presented using the median of ratings from Moody's, S&P and Fitch. If only two of the ratings are available, the lower rating is used. A summary of fixed maturity securities by rating was as follows:
DECEMBER 31, 2009 DECEMBER 31, 2008 ---------------------------------------------------------------------------------- PERCENT OF PERCENT OF RATINGS (IN MILLIONS, EXCEPT AMORTIZED FAIR TOTAL FAIR AMORTIZED FAIR TOTAL FAIR PERCENTAGES) COST VALUE VALUE COST VALUE VALUE - -------------------------------------------------------------------------------------------------------------------------- AAA $ 9,194 $ 9,520 37% $ 7,038 $ 6,779 38% AA 1,081 1,084 4 1,071 1,017 6 A 4,182 4,326 17 4,132 3,883 21 BBB 9,276 9,826 38 5,901 5,388 30 Below investment grade 1,409 1,243 4 1,310 1,003 5 - -------------------------------------------------------------------------------------------------------------------------- Total fixed maturities $25,142 $25,999 100% $19,452 $18,070 100% ==========================================================================================================================
At December 31, 2009 and 2008, approximately 19% and 44%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of shareholder's equity. F-17 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following tables provide 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:
DECEMBER 31, 2009 (IN MILLIONS, EXCEPT ------------------------------------------------------------------------------------------------ NUMBER OF SECURITIES) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL - ------------------------------------------------------------------------------------------------------------------------ DESCRIPTION OF NUMBER OF FAIR UNREALIZED NUMBER OF FAIR UNREALIZED NUMBER OF SECURITIES SECURITIES VALUE LOSSES SECURITIES VALUE LOSSES SECURITIES - ------------------------------------------------------------------------------------------------------------------------ Corporate debt securities 133 $1,088 $(18) 165 $1,313 $ (88) 298 Residential mortgage backed securities 43 1,184 (34) 68 363 (204) 111 Commercial mortgage backed securities 33 353 (4) 26 297 (12) 59 Asset backed securities 7 70 (1) 18 87 (28) 25 State and municipal obligations 32 232 (9) 2 99 (37) 34 U.S. government and agencies obligations 2 89 (1) -- -- -- 2 Foreign government bonds and obligations -- -- -- 2 4 (1) 2 Other structured investments -- -- -- 2 -- -- 2 Common and preferred stock -- -- -- 2 23 (7) 2 - ------------------------------------------------------------------------------------------------------------------------ Total 250 $3,016 $(67) 285 $2,186 $(377) 535 ======================================================================================================================== DECEMBER 31, 2009 (IN MILLIONS, EXCEPT -------------------------- NUMBER OF SECURITIES) TOTAL - -------------------------------------------------- DESCRIPTION OF FAIR UNREALIZED SECURITIES VALUE LOSSES - -------------------------------------------------- Corporate debt securities $2,401 $(106) Residential mortgage backed securities 1,547 (238) Commercial mortgage backed securities 650 (16) Asset backed securities 157 (29) State and municipal obligations 331 (46) U.S. government and agencies obligations 89 (1) Foreign government bonds and obligations 4 (1) Other structured investments -- -- Common and preferred stock 23 (7) - -------------------------------------------------- Total $5,202 $(444) ==================================================
DECEMBER 31, 2008 (IN MILLIONS, EXCEPT ------------------------------------------------------------------------------------------------ NUMBER OF SECURITIES) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL - ------------------------------------------------------------------------------------------------------------------------ DESCRIPTION OF NUMBER OF FAIR UNREALIZED NUMBER OF FAIR UNREALIZED NUMBER OF SECURITIES SECURITIES VALUE LOSSES SECURITIES VALUE LOSSES SECURITIES - ------------------------------------------------------------------------------------------------------------------------ Corporate debt securities 312 $5,086 $(372) 221 $3,309 $ (751) 533 Residential mortgage backed securities 34 305 (85) 52 466 (135) 86 Commercial mortgage backed securities 26 387 (23) 54 867 (151) 80 Asset backed securities 17 187 (31) 15 124 (29) 32 State and municipal obligations 2 17 (1) 2 78 (19) 4 U.S. government and agencies obligations -- -- -- 1 11 -- 1 Foreign government bonds and obligations 7 20 (4) -- -- -- 7 Other structured investments -- -- -- 2 -- -- 2 Common and preferred stock -- -- -- 2 16 (14) 2 - ------------------------------------------------------------------------------------------------------------------------ Total 398 $6,002 $(516) 349 $4,871 $(1,099) 747 ======================================================================================================================== DECEMBER 31, 2008 (IN MILLIONS, EXCEPT -------------------------- NUMBER OF SECURITIES) TOTAL - -------------------------------------------------- DESCRIPTION OF FAIR UNREALIZED SECURITIES VALUE LOSSES - -------------------------------------------------- Corporate debt securities $ 8,395 $(1,123) Residential mortgage backed securities 771 (220) Commercial mortgage backed securities 1,254 (174) Asset backed securities 311 (60) State and municipal obligations 95 (20) U.S. government and agencies obligations 11 -- Foreign government bonds and obligations 20 (4) Other structured investments -- -- Common and preferred stock 16 (14) - -------------------------------------------------- Total $10,873 $(1,615) ==================================================
As part of RiverSource Life'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 credit spreads across sectors. The primary driver of lower unrealized losses in 2009 compared to 2008 was the tightening of credit spreads across sectors, partially offset by higher interest rates. In addition, a portion of the decrease in unrealized losses was offset by an increase due to the adoption of a new accounting standard effective January 1, 2009. RiverSource Life recorded a cumulative effect increase to the amortized cost of previously other-than-temporarily impaired investments that increased the gross unrealized losses on Available-for-Sale securities by $64 million. This impact is due to the impairment of Available-for-Sale securities recognized in other comprehensive income (loss) previously recognized through earnings for factors other than credit. The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on securities for which a portion of the securities' total other-than-temporary impairments was recognized in other comprehensive income (loss):
(IN MILLIONS) - ------------------------------------------------------------------------------------------- Beginning balance of credit losses on securities held for which a portion of other-than-temporary impairment was recognized in other comprehensive income $102 Additional amount related to credit losses for which an other-than-temporary impairment was not previously recognized 7 Reductions for securities sold during the period (realized) (58) Additional increases to the amount related to credit losses for which an other-than-temporary impairment was previously recognized 31 - ------------------------------------------------------------------------------------------- Ending balance of credit losses on securities held as of December 31, 2009 for which a portion of other-than-temporary impairment was recognized in other comprehensive income $ 82 ===========================================================================================
F-18 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The change in net unrealized securities gains (losses) in other comprehensive income (loss) includes three components, net of tax: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for- Sale securities; and (iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, DSIC, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. As a result of the adoption of a new accounting standard effective January 1, 2009, net unrealized investment gains (losses) arising during the period also includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income (loss) during the period. Additionally, reclassification of (gains) losses included in net income contains noncredit other-than-temporary impairment losses that were previously unrealized, but have been recognized in current period net income due to their reclassification as credit losses. The following table presents a rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income (loss):
ACCUMULATED OTHER COMPREHEN- SIVE INCOME (LOSS) RELATED TO NET NET UNREALIZED UNREALIZED INVESTMENT INVESTMENT GAINS DEFERRED GAINS (IN MILLIONS) (LOSSES) INCOME TAX (LOSSES) - ---------------------------------------------------------------------------------------------------- Balance at January 1, 2007 $ (258) $ 90 $ (168) Net unrealized investment gains arising during the period 103 (36) 67 Reclassification of gains included in net income (39) 14 (25) Impact on DAC, DSIC and benefit reserves 15 (5) 10 - ---------------------------------------------------------------------------------------------------- Balance at December 31, 2007 $ (179) $ 63 $ (116) Net unrealized investment losses arising during the period (1,598) 559 (1,039) Reclassification of losses included in net income 431 (151) 280 Impact on DAC, DSIC and benefit reserves 303 (106) 197 - ---------------------------------------------------------------------------------------------------- Balance at December 31, 2008 $(1,043) $ 365 $ (678) Cumulative effect of accounting change (58)(1) 20 (38) Net unrealized investment gains arising during the period 2,378 (832) 1,546 Reclassification of gains included in net income (73) 26 (47) Impact on DAC, DSIC, benefit reserves and reinsurance recoverables (566) 199 (367) - ---------------------------------------------------------------------------------------------------- Balance at December 31, 2009 $ 638 $(222) $ 416(2) ====================================================================================================
(1) Amount represents the cumulative effect of adopting a new accounting standard on January 1, 2009, net of DAC and DSIC amortization and certain benefit reserves. See Note 3 for additional information on the adoption impact. (2) At December 31, 2009, Accumulated Other Comprehensive Income Related to Net Unrealized Investment Gains included $(16) million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities. Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains (losses) were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Gross realized investment gains from sales $185 $ 13 $ 64 Gross realized investment losses from sales (50) (6) (20) Other-than-temporary impairments related to credit (62) (440) (4)
The $62 million of other-than-temporary impairments recognized in net realized investment gains (losses) in 2009 were related to credit losses on non-agency residential mortgage backed securities and corporate debt securities in the gaming industry and banking and finance industries. The $440 million of other- than-temporary impairments recognized in net realized investment gains (losses) in 2008 primarily to credit losses on non-agency residential mortgage backed securities, corporate debt securities primarily in the financial services industry and asset backed and other securities. The $4 million of other-than- temporary impairments recognized in net realized investment gains (losses) in 2007 related to corporate debt securities in the publishing and home building industries. F-19 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Available-for-Sale securities by contractual maturity at December 31, 2009 were as follows:
AMORTIZED (IN MILLIONS) COST FAIR VALUE - ------------------------------------------------------------------------------------------------- Due within one year $ 738 $ 751 Due after one year through five years 6,638 6,862 Due after five years through 10 years 4,786 5,062 Due after 10 years 2,976 3,197 - ------------------------------------------------------------------------------------------------- 15,138 15,872 - ------------------------------------------------------------------------------------------------- Residential mortgage backed securities 5,249 5,196 Commercial mortgage backed securities 3,874 4,040 Asset backed securities 877 880 Other structured investments 4 11 Common and preferred stocks 30 23 - ------------------------------------------------------------------------------------------------- Total $25,172 $26,022 =================================================================================================
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities, asset backed securities and other structured investments are not due at a single maturity date. As such, these securities, as well as common and preferred stocks, were not included in the maturities distribution. At December 31, 2009 and 2008, bonds carried at $7 million and $6 million, respectively, were on deposit with various states as required by law. Commercial Mortgage Loans, Net The following is a summary of commercial mortgage loans:
DECEMBER 31, -------------------------- (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------- Commercial mortgage loans $2,562 $2,754 Less: allowance for loan losses (30) (17) - ------------------------------------------------------------------------------------------------- Commercial mortgage loans, net $2,532 $2,737 =================================================================================================
Commercial mortgage loans are first mortgages on real estate. RiverSource Life holds the mortgage documents, which gives it the right to take possession of the property if the borrower fails to perform according to the terms of the agreements. Commercial mortgage loan fundings are restricted by state insurance regulatory authorities to 80% or less of the market value of the real estate at the time of origination of the loan. The balances of and changes in the allowance for loan losses were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Balance at January 1 $17 $16 $ 37 Provision for loan losses 14 1 (21) Foreclosures, write-offs and loan sales (1) -- -- - ------------------------------------------------------------------------------------------------------- Balance at December 31 $30 $17 $ 16 =======================================================================================================
Concentrations of credit risk of commercial mortgage loans by region were as follows:
DECEMBER 31, ------------------------------------------------------ (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------------------- ON-BALANCE FUNDING ON-BALANCE FUNDING SHEET COMMITMENTS SHEET COMMITMENTS - ------------------------------------------------------------------------------------------------------------- Commercial mortgage loans by U.S. region: Atlantic $ 835 $13 $ 880 $ 3 North Central 538 16 629 10 Pacific 487 13 463 20 Mountain 296 -- 319 10 South Central 248 8 287 -- New England 158 -- 176 -- - ------------------------------------------------------------------------------------------------------------- 2,562 50 2,754 43 Less: allowance for loan losses (30) -- (17) -- - ------------------------------------------------------------------------------------------------------------- Total $2,532 $50 $2,737 $43 =============================================================================================================
F-20 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Concentrations of credit risk of commercial mortgage loans by property type were as follows:
DECEMBER 31, ------------------------------------------------------ (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------------------- ON-BALANCE FUNDING ON-BALANCE FUNDING SHEET COMMITMENTS SHEET COMMITMENTS - ------------------------------------------------------------------------------------------------------------- Commercial mortgage loans by U.S. property type: Shopping centers and retail $ 842 $16 $ 869 $23 Office buildings 702 6 777 18 Industrial buildings 468 12 485 2 Apartments 340 -- 383 -- Hotels and motels 61 -- 76 -- Mixed use 46 -- 50 -- Medical buildings 28 16 32 -- Other 75 -- 82 -- - ------------------------------------------------------------------------------------------------------------- 2,562 50 2,754 43 Less: allowance for loan losses (30) -- (17) -- - ------------------------------------------------------------------------------------------------------------- Total $2,532 $50 $2,737 $43 =============================================================================================================
Commitments to fund commercial mortgages were made in the ordinary course of business. The funding commitments at December 31, 2009 and 2008 approximate fair value. Below Investment Grade Syndicated Bank Loans, Net The following is a summary of below investment grade syndicated bank loans:
DECEMBER 31, -------------------------- (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------- Below investment grade syndicated bank loans $228 $260 Less: allowance for loan losses (12) (12) - ------------------------------------------------------------------------------------------------- Net below investment grade syndicated bank loans $216 $248 =================================================================================================
Below investment grade syndicated bank loans, which are included as a component of other investments, represent loans in which a group of lenders provide funds to borrowers. There is usually one originating lender which retains a small percentage and syndicates the remainder. Trading Securities Net recognized gains (losses) related to trading securities held at December 31, 2009, 2008 and 2007 were nil, $9 million and $(2) million, respectively. Sources of Investment Income and Net Realized Investment Gains (Losses) Net investment income is summarized as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Income on fixed maturities $1,371 $1,043 $1,187 Income on commercial mortgage loans 160 173 173 Trading securities and other investments 35 55 82 - ------------------------------------------------------------------------------------------------------- 1,566 1,271 1,442 Less: investment expenses (40) (19) (18) - ------------------------------------------------------------------------------------------------------- Total $1,526 $1,252 $1,424 =======================================================================================================
Net realized investment gains (losses) are summarized as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Fixed maturities $ 73 $(433) $40 Commercial mortgage loans (13) (1) -- Trading securities and other investments (1) (8) -- Reduction in the allowance for loan losses -- -- 21 - ------------------------------------------------------------------------------------------------------- Total $ 59 $(442) $61 =======================================================================================================
F-21 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- 5. VARIABLE INTEREST ENTITIES RTA, a subsidiary of RiverSource Life Insurance Company, has variable interests in affordable housing partnerships for which it is not the primary beneficiary and, therefore, does not consolidate. RTA's maximum exposure to loss as a result of its investment in the affordable housing partnerships is limited to the carrying values. The carrying values are reflected in trading securities and other investments and were $28 million and $54 million as of December 31, 2009 and 2008, respectively. RTA has no obligation to provide further financial or other support to the affordable housing partnerships nor has it provided any additional support to the affordable housing partnerships. RiverSource Life had no liabilities recorded as of December 31, 2009 and 2008 related to the affordable housing partnerships. 6. DEFERRED ACQUISITION COSTS AND DEFERRED SALES INDUCEMENT COSTS During the third quarter of 2009, 2008 and 2007, RiverSource Life completed the annual detailed review of valuation assumptions of its products. In addition, during the third quarter of 2008, RiverSource Life converted to a new industry standard valuation system that provides enhanced modeling capabilities. The total pretax impacts on RiverSource Life's assets and liabilities attributable to the review of valuation assumptions during the third quarter of 2009, 2008 and 2007 and the valuation system conversion during the third quarter of 2008 were as follows:
FUTURE BALANCE SHEET IMPACT REINSURANCE OTHER POLICY OTHER DEBIT (CREDIT) (IN MILLIONS) RECOVERABLES DAC DSIC ASSETS BENEFITS LIABILITIES TOTAL - -------------------------------------------------------------------------------------------------------------------------------- 2009 period $(65) $119 $ 9 $-- $ 71 $-- $134 2008 period 92 (81) (6) 1 95 5 106 2007 period (2) (16) 3 -- (15) -- (30)
The total pretax impacts on RiverSource Life's revenues and expenses attributable to the review of the valuation assumptions for the years ended December 31, 2009, 2008 and 2007 and the valuation system conversion for the year ended December 31, 2008 were as follows:
BENEFITS, OTHER CLAIMS, INSURANCE POLICY AND LOSSES AND AND PRETAX CONTRACT SETTLEMENT AMORTIZATION OPERATING BENEFIT (CHARGE) (IN MILLIONS) PREMIUMS CHARGES EXPENSES OF DAC EXPENSES TOTAL - -------------------------------------------------------------------------------------------------------------------------- 2009 period $-- $(65) $ 80 $119 $-- $134 2008 period 2 95 89 (81) 1 106 2007 period -- (2) (12) (16) -- (30)
The balances of and changes in DAC were as follows:
(IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Balance at January 1 $4,324 $4,334 $4,321 Cumulative effect of accounting change -- 36 (204) Capitalization of acquisition costs 558 587 699 Amortization, excluding impacts of valuation assumptions review and valuation system conversion (264) (780) (454) Amortization, impact of valuation assumptions review and valuation system conversion 119 (81) (16) Impact of change in net unrealized securities losses (gains) (452) 228 (12) - ------------------------------------------------------------------------------------------------------- Balance at December 31 $4,285 $4,324 $4,334 =======================================================================================================
The balances of and changes in DSIC were as follows:
(IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Balance at January 1 $518 $ 511 $452 Cumulative effect of accounting change -- 9 (11) Capitalization of sales inducements costs 82 87 124 Amortization, excluding impacts of valuation assumptions review and valuation system conversion (19) (115) (56) Amortization, impact of valuation assumptions review and valuation system conversion 9 (6) 3 Impact of change in net unrealized securities losses (gains) (66) 32 (1) - ------------------------------------------------------------------------------------------------------- Balance at December 31 $524 $ 518 $511 =======================================================================================================
RiverSource Life adopted a new accounting standard on the recognition and presentation of other-than-temporary impairments in the first quarter of 2009. The adoption had no net impact to DAC and DSIC. Effective January 1, 2008, RiverSource Life adopted a new accounting standard on fair value measurements and recorded as a cumulative change in accounting principle a pretax increase of $36 million and $9 million to DAC and DSIC, respectively. See Note 3 for additional information regarding RiverSource Life's adoption of fair value accounting standards. F-22 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Effective January 1, 2007, RiverSource Life adopted a new accounting standard related to DAC in connection with modifications or exchanges of insurance contracts and recorded as a cumulative change in accounting principle a pretax reduction of $204 million and $11 million to DAC and DSIC, respectively. 7. REINSURANCE Generally, RiverSource Life reinsures 90% of the death benefit liability related to individual fixed and variable universal life and term life insurance products. As a result, RiverSource Life typically retains and is at risk for, at most, 10% of each policy's death benefit from the first dollar of coverage for new sales of these policies, subject to the reinsurers fulfilling their obligations. RiverSource Life began reinsuring risks at this level during 2001 (2002 for RiverSource Life of NY) for term life insurance and 2002 (2003 for RiverSource Life of NY) for individual fixed and variable universal life insurance. Policies issued prior to these dates are not subject to these same reinsurance levels. Generally, the maximum amount of life insurance risk retained by RiverSource Life is $1.5 million (increased from $750,000 during 2008) on a single life and $1.5 million on any flexible premium survivorship life policy. Risk on fixed and variable universal life policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy. For existing LTC policies, RiverSource Life (and RiverSource Life of NY for 1996 and later issues) retained 50% of the risk and ceded the remaining 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. ("Genworth"). Generally, RiverSource Life retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states in October 2007 and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. RiverSource Life retains all risk for new claims on DI contracts sold on other policy forms. RiverSource Life also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions. In addition, RiverSource Life assumes life insurance and fixed annuity risk under reinsurance arrangements with unaffiliated insurance companies. At December 31, 2009 and 2008, traditional life and universal life insurance in force aggregated $192.8 billion and $192.3 billion, respectively, of which $131.2 billion and $127.6 billion were reinsured at the respective year ends. Life insurance in force is reported on a statutory basis. RiverSource Life also reinsures a portion of the risks assumed under its DI and LTC policies. The effect of reinsurance on premiums was as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Direct premiums $ 721 $ 641 $ 628 Reinsurance ceded (271) (203) (189) - ------------------------------------------------------------------------------------------------------- Net premiums $ 450 $ 438 $ 439 =======================================================================================================
Policy and contract charges are presented on the Consolidated Statements of Income net of $62 million, $61 million and $57 million of reinsurance ceded for the years ended December 31, 2009, 2008 and 2007, respectively. Reinsurance recovered from reinsurers was $167 million, $142 million and $126 million for the years ended December 31, 2009, 2008 and 2007, respectively. Reinsurance contracts do not relieve RiverSource Life from its primary obligation to policyholders. Included in reinsurance recoverables is approximately $1.3 billion and $1.2 billion related to LTC risk ceded to Genworth as of December 31, 2009 and 2008, respectively. Included in future policy benefits is $667 million and $689 million related to assumed reinsurance arrangements as of December 31, 2009 and 2008, respectively. F-23 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- 8. FUTURE POLICY BENEFITS, POLICY CLAIMS AND OTHER POLICYHOLDERS' FUNDS AND SEPARATE ACCOUNT LIABILITIES Future policy benefits and policy claims and other policyholders' funds consisted of the following:
DECEMBER 31, -------------------------- (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------- Fixed annuities $16,558 $14,058 Equity indexed annuities accumulated host values 159 228 Equity indexed annuities embedded derivatives 9 16 Variable annuities fixed sub-accounts 6,127 5,623 Variable annuity GMWB 204 1,471 Variable annuity GMAB 100 367 Other variable annuity guarantees 12 67 - ------------------------------------------------------------------------------------------------- Total annuities 23,169 21,830 VUL/ UL insurance 2,595 2,526 Other life, DI and LTC insurance 4,619 4,397 - ------------------------------------------------------------------------------------------------- Total future policy benefits 30,383 28,753 Policy claims and other policyholders' funds 123 172 - ------------------------------------------------------------------------------------------------- Total future policy benefits and policy claims and other policyholders' funds $30,506 $28,925 =================================================================================================
Separate account liabilities consisted of the following:
DECEMBER 31, -------------------------- (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------- Variable annuity variable sub-accounts $48,982 $37,657 VUL insurance variable sub-accounts 5,239 4,091 Other insurance variable sub-accounts 46 39 - ------------------------------------------------------------------------------------------------- Total separate account liabilities $54,267 $41,787 =================================================================================================
Fixed Annuities Fixed annuities include both deferred and payout contracts. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. RiverSource Life generally invests the proceeds from the annuity payments in fixed rate securities. RiverSource Life may hedge the interest rate risks related to fixed annuities with derivative instruments. As of December 31, 2009 and 2008, there were no outstanding derivatives to hedge these risks. Equity Indexed Annuities The Index 500 Annuity, RiverSource Life's equity indexed annuity product, is a single premium deferred fixed annuity. The contract is issued with an initial term of seven years and interest earnings are linked to the S&P 500 Index. This annuity has a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. RiverSource Life generally invests the proceeds from the annuity deposits in fixed rate securities and hedges the equity risk with derivative instruments. See Note 15 for additional information regarding RiverSource Life's derivative instruments. In 2007, RiverSource Life discontinued new sales of equity indexed annuities. Variable Annuities Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders. Most of the variable annuity contracts issued by RiverSource Life contain one or more guaranteed benefits, including GMWB, GMAB, GMDB and GGU provisions. RiverSource Life previously offered contracts with GMIB provisions. See Note 2 and Note 9 for additional information regarding RiverSource Life's variable annuity guarantees. RiverSource Life does not currently hedge its risk under the GGU and GMIB provisions. During the third quarter of 2009, RiverSource Life entered into a limited number of derivative contracts to economically hedge equity exposure related to GMDB provisions on variable annuity contracts written previously in 2009. The total value of variable annuity contracts with GMWB riders increased from $12.7 billion at December 31, 2008 to $19.2 billion at December 31, 2009. The total value of variable annuity contracts with GMAB riders increased from $2.0 billion at December 31, 2008 to $2.9 billion at December 31, 2009. The total value of variable annuity contracts with GMDB riders increased from $42.2 billion at December 31, 2008 to $53.7 billion at December 31, 2009, of which $5.2 billion have corresponding hedges. See Note 15 for additional information regarding derivative instruments used to hedge risks related to GMWB, GMAB and GMDB provisions. F-24 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- Insurance Liabilities VUL/UL is the largest group of insurance policies written by RiverSource Life. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for VUL contracts are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. RiverSource Life also offers term and whole life insurance as well as disability products. RiverSource Life no longer offers LTC products but has in force policies from prior years. Insurance liabilities include accumulation values, unpaid reported claims, incurred but not reported claims, and obligations for anticipated future claims. 9. VARIABLE ANNUITY AND INSURANCE GUARANTEES The majority of the variable annuity contracts offered by RiverSource Life contain GMDB provisions. RiverSource Life also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as GGU benefits. In addition, RiverSource Life offers contracts with GMWB and GMAB provisions. RiverSource Life previously offered contracts containing GMIB provisions. See Note 2 and Note 8 for additional information regarding the liabilities related to variable annuity guarantees. The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. RiverSource Life has three primary GMDB provisions: - - Return of premium -- provides purchase payments minus adjusted partial surrenders. - - Reset -- provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision is often provided in combination with the return of premium provision. This provision is no longer offered. - - Ratchet -- provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders. The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on equity market performance. At issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a "step-up") in the case of favorable market performance. RiverSource Life has GMWB riders in force with the following provisions: - - withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount. - - withdrawals at a specified rate per year for the life of the contractholder ("GMWB for life"). - - withdrawals at a specified rate per year for joint contractholders while either is alive. Once withdrawals begin, the contractholder's funds are moved to one of three less aggressive asset allocation models (of the five that are available prior to withdrawal). - - withdrawals based on performance of the contract or issue age. On some contracts, credits are applied annually for the first ten years to increase the guaranteed amount as long as withdrawals have not been taken. Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or 80% of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10 year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value. Certain UL contracts offered by RiverSource Life provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. F-25 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following table provides information related to variable annuity guarantees for which RiverSource Life has established additional liabilities:
DECEMBER 31, 2009 DECEMBER 31, 2008 --------------------------------------------------------------------------------------- CONTRACT WEIGHTED CONTRACT VARIABLE ANNUITY GUARANTEES BY TOTAL VALUE IN NET AVERAGE TOTAL VALUE IN BENEFIT TYPE(1) CONTRACT SEPARATE AMOUNT ATTAINED CONTRACT SEPARATE (IN MILLIONS, EXCEPT AGE) VALUE ACCOUNTS AT RISK(2) AGE VALUE ACCOUNTS - --------------------------------------------------------------------------------------------------------------------------- GMDB: Return of Premium $30,938 $28,415 $ 974 61 $22,249 $20,153 Six-Year Reset 13,886 11,197 926 61 12,719 10,063 One-Year Ratchet 7,081 6,400 873 63 5,770 5,061 Five-Year Ratchet 1,256 1,171 38 59 951 888 Other 582 542 98 67 471 429 - --------------------------------------------------------------------------------------------------------------------------- Total -- GMDB $53,743 $47,725 $2,909 61 $42,160 $36,594 =========================================================================================================================== GGU DEATH BENEFIT $ 853 $ 775 $ 70 63 $ 699 $ 619 GMIB $ 628 $ 582 $ 126 63 $ 567 $ 511 GMWB: GMWB $ 4,196 $ 4,067 $ 454 64 $ 3,513 $ 3,409 GMWB for life 14,988 14,333 795 63 9,194 8,764 - --------------------------------------------------------------------------------------------------------------------------- Total -- GMWB $19,184 $18,400 $1,249 63 $12,707 $12,173 =========================================================================================================================== GMAB $ 2,926 $ 2,853 $ 153 56 $ 2,006 $ 1,937 DECEMBER 31, 2008 --------------------------- WEIGHTED VARIABLE ANNUITY GUARANTEES BY NET AVERAGE BENEFIT TYPE(1) AMOUNT ATTAINED (IN MILLIONS, EXCEPT AGE) AT RISK(2) AGE - --------------------------------------------------------------- GMDB: Return of Premium $ 4,873 61 Six-Year Reset 2,802 61 One-Year Ratchet 2,163 62 Five-Year Ratchet 199 59 Other 192 66 - --------------------------------------------------------------- Total -- GMDB $10,229 61 =============================================================== GGU DEATH BENEFIT $ 65 63 GMIB $ 245 63 GMWB: GMWB $ 1,312 63 GMWB for life 2,704 63 - --------------------------------------------------------------- Total -- GMWB $ 4,016 63 =============================================================== GMAB $ 608 56
(1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. (2) Represents the current guaranteed benefit amount in excess of the current contract value. GMIB, GMWB and GMAB benefits are subject to waiting periods and payment periods specified in the contract. Changes in additional liabilities were as follows:
(IN MILLIONS) GMDB & GGU GMIB GMWB GMAB UL - -------------------------------------------------------------------------------------------------------------------- Liability balance at January 1, 2008 $ 24 $ 3 $ 136 $ 33 $ 4 Incurred claims 58 10 1,335 334 6 Paid claims (27) (1) -- -- (3) - -------------------------------------------------------------------------------------------------------------------- Liability balance at December 31, 2008 55 12 1,471 367 7 Incurred claims 12 (5) (1,267) (267) 8 Paid claims (61) (1) -- -- -- - -------------------------------------------------------------------------------------------------------------------- Liability balance at December 31, 2009 $ 6 $ 6 $ 204 $ 100 $15 ====================================================================================================================
The liabilities for guaranteed benefits are supported by general account assets. The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits:
DECEMBER 31, -------------------------- (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------- Mutual funds: Equity $29,379 $21,899 Bond 16,537 12,135 Other 2,889 3,463 - ------------------------------------------------------------------------------------------------- Total mutual funds $48,805 $37,497 =================================================================================================
No gains or losses were recognized on assets transferred to separate accounts for the periods presented. 10. LINES OF CREDIT In July 2009, RiverSource Life Insurance Company, as the borrower, entered into a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under the line of credit may not exceed $800 million at any time. The interest rate for any borrowing under the new agreement is established by reference to LIBOR plus 28 basis points. Amounts borrowed may be repaid at any time with no prepayment penalty. As of December 31, 2009, the outstanding balance under this credit line was $300 million which was repaid in full with payments in January and February 2010. RiverSource Life has available a committed line of credit with Ameriprise Financial aggregating $200 million. The interest rate for any borrowings is established by reference to LIBOR. There were no amounts outstanding on this line of credit at December 31, 2009 and 2008. F-26 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- In September 2008, RiverSource Life, as the lender, entered into a revolving credit agreement with Ameriprise Financial as the borrower. This line of credit is not to exceed 3% of RiverSource Life's statutory admitted assets as of the prior year end. The interest rate for any borrowing is established by reference to LIBOR plus 28 basis points. In the event of default, an additional 1% interest will accrue during such period of default. There were no amounts outstanding on this revolving credit agreement as of December 31, 2009 and 2008. RiverSource Life had a collateral loan agreement with Ameriprise Financial aggregating up to $75 million which expired on October 31, 2008. 11. FAIR VALUES OF ASSETS AND LIABILITIES GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale. VALUATION HIERARCHY RiverSource Life categorizes its fair value measurements according to a three- level hierarchy. The hierarchy prioritizes the inputs used by RiverSource Life's valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. DETERMINATION OF FAIR VALUE RiverSource Life uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. RiverSource Life's market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. RiverSource Life's income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, RiverSource Life maximizes the use of observable inputs and minimizes the use of unobservable inputs. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. ASSETS Cash Equivalents Cash equivalents include highly liquid investments with original maturities of 90 days or less. Actively traded money market funds are measured at their NAV and classified as Level 1. RiverSource Life's remaining cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization. Available-for-Sale Securities When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from nationally-recognized pricing services, broker quotes, or other model-based valuation techniques such as the present value of cash flows. Level 1 securities include U.S. Treasuries. Level 2 securities include corporate and municipal bonds, agency mortgage backed securities, commercial mortgage backed securities, asset backed securities and U.S. and foreign government and agency securities. Level 3 securities include corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities. Through RiverSource Life's own experience transacting in the marketplace and through discussions with its pricing vendors, RiverSource Life believes that the market for non-agency residential mortgage backed securities is inactive. Indicators of inactive markets include: pricing services' reliance on brokers or discounted cash flow analyses to provide prices, an increase in the disparity between prices provided by different pricing services for the same security, unreasonably large bid-offer spreads and a significant decrease in the volume of trades relative to historical levels. In certain cases, this market inactivity has resulted in RiverSource Life applying valuation techniques that rely more on an income approach (discounted cash flows using market rates) than on a market approach (prices from pricing services). RiverSource Life considers market observable yields for other asset classes it considers to be of similar risk which includes nonperformance and liquidity for individual F-27 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- securities to set the discount rate for applying the income approach to certain non-agency residential mortgage backed securities. Separate Account Assets The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV represents the exit price for the separate account. Separate account assets are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information. Derivatives The fair value of derivatives that are traded in certain over-the-counter markets are generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include interest rate swaps and options. Derivatives that are valued using pricing models that have significant unobservable inputs are classified as Level 3 measurements. Structured derivatives that are used by RiverSource Life to hedge its exposure to market risk related to certain variable annuity riders are classified as Level 3. RiverSource Life settled these derivatives in the second quarter of 2009 and has not entered into any additional structured derivatives since then. LIABILITIES Embedded Derivatives VARIABLE ANNUITY RIDERS -- GMAB AND GMWB RiverSource Life values the embedded derivative liability attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk, and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions and margins for risk, profit and expenses that RiverSource Life believes an exit market participant would expect. The fair value of these embedded derivatives also reflects a current estimate of RiverSource Life's nonperformance risk specific to these liabilities. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivative liability attributable to these provisions is recorded in future policy benefits. EQUITY INDEXED ANNUITIES RiverSource Life uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its equity indexed annuities. The inputs to these calculations are primarily market observable. As a result, these measurements are classified as Level 2. The embedded derivative liability attributable to the provisions of RiverSource Life's equity indexed annuities is recorded in future policy benefits. F-28 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following tables present the balances of assets and liabilities measured at fair value on a recurring basis:
DECEMBER 31, 2009 ------------------------------------------------------ (IN MILLIONS) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------------------- Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $-- $13,755 $1,239 $14,994 Residential mortgage backed securities -- 2,424 2,772 5,196 Commercial mortgage backed securities -- 3,968 72 4,040 Asset backed securities -- 665 215 880 State and municipal obligations -- 613 -- 613 U.S. government and agencies obligations 11 147 -- 158 Foreign government bonds and obligations -- 107 -- 107 Other structured investments -- -- 11 11 - ------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 11 21,679 4,309 25,999 Common and preferred stocks -- 23 -- 23 Trading securities -- 36 -- 36 Cash equivalents 2 801 -- 803 Other assets -- 615 -- 615 Separate account assets -- 54,267 -- 54,267 - ------------------------------------------------------------------------------------------------------------- Total assets at fair value $13 $77,421 $4,309 $81,743 ============================================================================================================= Liabilities Future policy benefits $-- $ 9 $ 299 $ 308 Other liabilities -- 757 -- 757 - ------------------------------------------------------------------------------------------------------------- Total liabilities at fair value $-- $ 766 $ 299 $ 1,065 =============================================================================================================
DECEMBER 31, 2008 ------------------------------------------------------ (IN MILLIONS) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - ------------------------------------------------------------------------------------------------------------- Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ -- $ 9,907 $1,086 $10,993 Residential mortgage backed securities -- 3,016 520 3,536 Commercial mortgage backed securities -- 2,440 3 2,443 Asset backed securities -- 531 95 626 State and municipal obligations -- 145 -- 145 U.S. government and agencies obligations 21 190 -- 211 Foreign government bonds and obligations -- 107 -- 107 Other structured investments -- -- 9 9 - ------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 21 16,336 1,713 18,070 Common and preferred stocks -- 16 -- 16 Trading securities 70 77 -- 147 Cash equivalents 432 2,861 -- 3,293 Other assets -- 2,238 200 2,438 Separate account assets -- 41,787 -- 41,787 - ------------------------------------------------------------------------------------------------------------- Total assets at fair value $523 $63,315 $1,913 $65,751 ============================================================================================================= Liabilities Future policy benefits $ -- $ 16 $1,832 $ 1,848 Other liabilities -- 645 -- 645 - ------------------------------------------------------------------------------------------------------------- Total liabilities at fair value $ -- $ 661 $1,832 $ 2,493 =============================================================================================================
F-29 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis:
TOTAL GAINS PURCHASES, (LOSSES) INCLUDED IN SALES, -------------------------- ISSUANCES BALANCE, OTHER AND TRANSFERS BALANCE, JANUARY 1, NET COMPREHEN- SETTLEMENTS, IN/(OUT) OF DECEMBER 31, (IN MILLIONS) 2009 INCOME SIVE INCOME NET LEVEL 3 2009 - -------------------------------------------------------------------------------------------------------------------------- Available-for-Sale securities: Fixed maturities Corporate debt securities $ 1,086 $ -- $194 $ 20 $(61) $1,239 Residential mortgage backed securities 520 65 156 2,031 -- 2,772 Commercial mortgage backed securities 3 -- 8 61 -- 72 Asset backed securities 95 7 10 112 (9) 215 Other structured investments 9 2 -- -- -- 11 - -------------------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 1,713 74(1) 368 2,224 (70)(3) 4,309 Other assets 200 (37)(2) -- (163) -- -- Future policy benefits (1,832) 1,611(2) -- (78) -- (299)
(1) Represents a $7 million loss included in net realized investment gains (losses) and a $81 million gain included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. (3) Represents securities with a fair value of $79 million that were transferred to Level 2 as the fair value of the securities is now obtained from a nationally-recognized pricing service net of a security with a fair value of $9 million that was transferred to Level 3 as the fair value of the security is now based on broker quotes.
TOTAL GAINS PURCHASES, (LOSSES) INCLUDED IN SALES, -------------------------- ISSUANCES BALANCE, OTHER AND TRANSFERS BALANCE, JANUARY 1, NET COMPREHEN- SETTLEMENTS, IN/(OUT) OF DECEMBER 31, (IN MILLIONS) 2008 INCOME SIVE LOSS NET LEVEL 3 2008 - -------------------------------------------------------------------------------------------------------------------------- Available-for-Sale securities: Fixed maturities Corporate debt securities $1,271 $ (30) $(152) $ (3) $ -- $ 1,086 Residential mortgage backed securities 417 (144) (134) 162 219 520 Commercial mortgage backed securities 5 -- -- (2) -- 3 Asset backed securities 115 1 (24) 3 -- 95 Other structured investments 2 4 6 (3) -- 9 - -------------------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 1,810 (169)(1) (304) 157 219(3) 1,713 Other assets 280 149(2) -- (229) -- 200 Future policy benefits (158) (1,611)(2) -- (63) -- (1,832) Other liabilities -- (9)(2) -- 9 -- --
(1) Represents a $176 million loss included in net realized investment gains (losses) and a $7 million gain included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. (3) Represents prime non-agency residential mortgage backed securities previously classified as Level 2 for which management believes the market for these prime quality assets is now inactive. F-30 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following table presents the changes in unrealized gains (losses) included in net income related to Level 3 assets and liabilities held at December 31 for the year then ended:
2009 2008 ---------------------------------------------------------------------------------- NET BENEFITS, NET BENEFITS, REALIZED CLAIMS, REALIZED CLAIMS, NET INVESTMENT LOSSES AND NET INVESTMENT LOSSES AND INVESTMENT GAINS SETTLEMENT INVESTMENT GAINS SETTLEMENT (IN MILLIONS) INCOME (LOSSES) EXPENSES INCOME (LOSSES) EXPENSES - -------------------------------------------------------------------------------------------------------------------------- Available-for-Sale securities: Fixed maturities Corporate debt securities $-- $ -- $ -- $-- $ (29) $ -- Residential mortgage backed securities 80 (31) -- 2 (146) -- Asset backed securities 1 -- -- 1 -- -- - -------------------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 81 (31) -- 3 (175) -- Other assets -- -- -- -- -- 126 Future policy benefits -- -- 1,582 -- -- (1,608)
During the reporting period, there were no material assets or liabilities measured at fair value on a nonrecurring basis. The following table provides the carrying value and the estimated fair value of financial instruments that are not reported at fair value. All other financial instruments that are reported at fair value have been included above in the table with balances of assets and liabilities measured at fair value on a recurring basis.
DECEMBER 31, ------------------------------------------------------ 2009 2008 - ------------------------------------------------------------------------------------------------------------- CARRYING FAIR CARRYING FAIR (IN MILLIONS) VALUE VALUE VALUE VALUE - ------------------------------------------------------------------------------------------------------------- FINANCIAL ASSETS Commercial mortgage loans, net $ 2,532 $ 2,519 $ 2,737 $ 2,506 Policy loans 715 790 722 779 Other investments 226 245 248 202 Restricted cash 184 184 -- -- FINANCIAL LIABILITIES Future policy benefits $15,540 $15,657 $13,116 $12,418 Separate account liabilities 406 406 386 386 Line of credit with Ameriprise Financial 300 300 -- --
Commercial mortgage loans, net The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities and characteristics including loan-to-value ratio, occupancy rate, refinance risk, debt-service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for RiverSource Life's estimate of the amount recoverable on the loan. Policy loans The fair value of policy loans is determined using discounted cash flows. Other investments Other investments primarily consist of syndicated loans. The fair value of syndicated loans is obtained from a nationally-recognized pricing service. Restricted Cash Restricted cash is generally set aside for specific business transactions and restrictions are specific to RiverSource Life and does not transfer to third party market participants, therefore, the carrying value amount is a reasonable estimate of fair value. Future policy benefits The fair value of fixed annuities, in deferral status, is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a provision for adverse deviation from estimated early policy surrender behavior and RiverSource Life's nonperformance risk specific to these liabilities. The fair value of other liabilities including non-life contingent fixed annuities in payout status, equity indexed annuity host contracts F-31 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Separate account liabilities Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. Carrying value is a reasonable estimate of the fair value as it represents the exit value as evidenced by withdrawal transactions between contractholders and RiverSource Life. A nonperformance adjustment is not included as the related separate account assets act as collateral for these liabilities and minimize nonperformance risk. Line of credit with Ameriprise Financial The fair value of the line of credit is determined by discounting cash flows with an adjustment for RiverSource Life's nonperformance risk specific to this liability. Due to the short-term nature of the line of credit, the carrying value is an approximation of the fair value. 12. RELATED PARTY TRANSACTIONS RiverSource Investments, LLC is the investment manager for the proprietary mutual funds used as investment options by RiverSource Life's variable annuity contractholders and variable life insurance policyholders. RiverSource Life provides all fund management services, other than investment management, and is compensated for the administrative services it provides. For the years ended December 31, 2009, 2008 and 2007, RiverSource Life received $87 million, $101 million and $97 million, respectively, from RiverSource Investments, LLC for these services. RiverSource Life participates in the Ameriprise Financial Retirement Plan which covers all permanent employees age 21 and over who have met certain employment requirements. RiverSource Life contributions to the plan are based on participants' age, years of service and total compensation for the year. Funding of retirement costs for this plan complies with the applicable minimum funding requirements specified by the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). RiverSource Life's share of the total net periodic pension cost was $2 million in 2009, and $1 million in both 2008 and 2007. RiverSource Life participates in the Ameriprise Financial 2005 Incentive Compensation Plan. Employees, directors and independent contractors are eligible to receive incentive awards including stock options, restricted stock awards, restricted stock units, performance shares and similar awards designed to comply with the applicable federal regulations and laws of jurisdiction. The expense for incentive awards was $3 million in 2009, 2008 and 2007. RiverSource Life also participates in the defined contribution pension plans of Ameriprise Financial which cover all employees who have met certain employment requirements. RiverSource Life contributions to the plans are a percent of either each employee's eligible compensation or basic contributions. Costs of these plans charged to operations were $2 million, nil and $3 million in 2009, 2008 and 2007, respectively. RiverSource Life participates in the defined benefit health care plans of Ameriprise Financial that provide health care and life insurance benefits to retired employees and retired financial advisors. The plans include participant contributions and service related eligibility requirements. Upon retirement, such employees are considered to have been employees of Ameriprise Financial. Ameriprise Financial expenses these benefits and allocates the expenses to its subsidiaries. The cost of these plans charged to operations in 2009, 2008 and 2007 was nil, $1 million and $2 million, respectively. Charges by Ameriprise Financial and affiliated companies to RiverSource Life for use of joint facilities, technology support, marketing services and other services aggregated $580 million, $673 million and $909 million for 2009, 2008 and 2007, respectively. Certain of these costs are included in DAC. Expenses allocated to RiverSource Life may not be reflective of expenses that would have been incurred by RiverSource Life on a stand-alone basis. Dividends paid and received were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Cash dividends paid to Ameriprise Financial $-- $775 $900 Cash dividends paid to RiverSource Life Insurance Company from RiverSource Life of NY -- 77 83 Cash dividend paid to RiverSource Life Insurance Company from RTA 22 -- -- Non-cash dividend paid to Ameriprise Financial from RTA -- 118 --
Notifications to state insurance regulators were made in advance of payments of dividends for amounts in excess of statutorily defined thresholds. See Note 13 for additional information. F-32 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- During 2008, RiverSource Life received a non-cash capital contribution of $83 million comprised of below investment grade syndicated bank loans from Ameriprise Financial. In addition, RiverSource Life Insurance Company received a $239 million contribution from Ameriprise Financial, consisting of all the issued and outstanding shares of RTA. During 2009, RiverSource Life Insurance Company received a non-cash capital contribution of $131 million comprised of two buildings and the related land from Ameriprise Financial. As part of the transaction, RiverSource Life Insurance Company entered into an agreement to lease the buildings to Ameriprise Financial. In addition, RiverSource Life Insurance Company received a non-cash capital contribution of $200 million consisting of a reduction of the outstanding balance due to Ameriprise Financial under a line of credit. See Note 10 for more information on RiverSource Life's lines of credit. There were no amounts included in other liabilities at December 31, 2009 and 2008 payable to Ameriprise Financial for federal income taxes. During 2009, RiverSource Life sold corporate bonds of $27 million to Ameriprise Financial and recognized a gain of $9 million. 13. STATUTORY CAPITAL AND SURPLUS State insurance statutes contain limitations as to the amount of dividends or distributions that insurers may make without providing prior notification to state regulators. For RiverSource Life Insurance Company, dividends or distributions in excess of unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life Insurance Company's primary regulator, and are subject to potential disapproval. RiverSource Life Insurance Company's statutory unassigned surplus aggregated $433 million and $173 million as of December 31, 2009 and 2008, respectively. In addition, dividends or distributions, whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceed the greater of the previous year's statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as "extraordinary dividends." Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Statutory net gain from operations and net income for the years ended December 31 and capital and surplus as of December 31 are summarized as follows:
(IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- (unaudited) Statutory net gain (loss) from operations(1) $1,793 $(1,184) $ 523 Statutory net income (loss)(1) 1,887 (1,407) 555 Statutory capital and surplus 3,371 2,529 2,820
(1) An increase in statutory reserves for variable annuity guaranteed benefits contributed significantly to the loss in 2008, but was substantially offset by unrealized gains on derivatives which are not included in the statutory income statement, but recorded directly to surplus. These impacts were substantially reversed in 2009. 14. INCOME TAXES RiverSource Life qualifies as a life insurance company for federal income tax purposes. As such, RiverSource Life is subject to the Internal Revenue Code provisions applicable to life insurance companies. The components of income tax provision (benefit) were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Current income tax: Federal $325 $ 42 $(30) State 1 3 -- - ------------------------------------------------------------------------------------------------------- Total current income tax 326 45 (30) Deferred income tax Federal (80) (236) 83 State (1) 2 -- - ------------------------------------------------------------------------------------------------------- Total deferred income tax (81) (234) 83 - ------------------------------------------------------------------------------------------------------- Total income tax provision (benefit) $245 $(189) $ 53 =======================================================================================================
F-33 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- 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:
YEARS ENDED DECEMBER 31, ---------------------------------------- 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Tax at U.S. statutory rate 35.0% 35.0% 35.0% Changes in taxes resulting from: Tax-exempt interest and dividend income (7.2) 56.6 (10.9) State taxes, net of federal benefit -- (3.7) -- Low income housing credit (2.0) 27.9 (7.0) Foreign tax credit, net of addback (1.0) 15.3 (2.3) Taxes applicable to prior years 0.1 29.2 (4.0) Other, net -- (0.2) -- - ------------------------------------------------------------------------------------------------------- Income tax provision 24.9% 160.1% 10.8% =======================================================================================================
RiverSource Life's effective tax rate was 24.9% and 160.1% for the years ended December 31, 2009 and 2008, respectively. The decrease in the effective tax rate is primarily due to pretax income for 2009 compared to a pretax loss in relation to a net tax benefit for 2008. RiverSource Life's effective tax rate for 2008 included a $39 million tax benefit related to changes in the status of current audits. 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 RiverSource Life's deferred income tax assets and liabilities are reflected in the following table:
DECEMBER 31, -------------------------- (IN MILLIONS) 2009 2008 - ------------------------------------------------------------------------------------------------- Deferred income tax assets: Liabilities for future policy benefits $1,390 $1,744 Investment related 163 -- Net unrealized losses on Available-for-Sale securities and derivatives -- 399 Net operating loss and tax credit carryforwards 185 159 Other -- 44 - ------------------------------------------------------------------------------------------------- Gross deferred income tax assets 1,738 2,346 Deferred income tax liabilities: DAC 1,264 1,168 Investment related -- 398 Net unrealized gains on Available-for-Sale securities 203 -- DSIC 193 181 Other 15 -- - ------------------------------------------------------------------------------------------------- Gross deferred income tax liabilities 1,675 1,747 - ------------------------------------------------------------------------------------------------- Net deferred income tax assets $ 63 $ 599 =================================================================================================
RiverSource Life is required to establish a valuation allowance for any portion of the deferred income tax assets that management believes will not be realized. Included in RiverSource Life's deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination, (i) future taxable income exclusive of reversing temporary differences and carryforwards, (ii) future reversals of existing taxable temporary differences, (iii) taxable income in prior carryback years, and (iv) tax planning strategies. Based on analysis of RiverSource Life's tax position, management believes it is more likely than not that the results of future operations and implementation of tax planning strategies will generate sufficient taxable income to enable RiverSource Life to utilize all of its deferred tax assets. Accordingly, no valuation allowance for deferred tax assets has been established as of December 31, 2009 and 2008. Additionally, RiverSource Life has tax benefits related to net operating loss carryforwards of $16 million which expire beginning December 31, 2025 as well as tax credit carryforwards of $149 million which expire beginning December 31, 2025. F-34 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
(IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Balance at January 1 $(89) $ 97 $ 73 Additions (reductions) based on tax positions related to the current year 1 (165) 34 Additions for tax positions of prior years 18 38 16 Reductions for tax positions of prior years (7) (59) (26) - ------------------------------------------------------------------------------------------------------- Balance at December 31 $(77) $ (89) $ 97 =======================================================================================================
If recognized, approximately $49 million, $30 million and $49 million, net of federal tax benefits, of the unrecognized tax benefits as of December 31, 2009, 2008 and 2007, respectively, would affect the effective tax rate. RiverSource Life recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. RiverSource Life recognized a net reduction of $1 million, $14 million and $11 million in interest and penalties for the year ended December 31, 2009, 2008 and 2007, respectively. At December 31, 2009 and 2008, RiverSource Life had a receivable of $16 million and $15 million, respectively, related to accrued interest and penalties. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. However, there are a number of open audits and quantification of a range cannot be made at this time. RiverSource Life or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, RiverSource Life 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 completed its field examination of the RiverSource Life's income tax returns for 1997 through 2002 during 2008 and completed its field examination of 2003 through 2004 in the third quarter of 2009. However, for federal income tax purposes, these years continue to remain open as a consequence of certain issues under appeal. In the fourth quarter of 2008, the IRS commenced an examination of RiverSource Life's U.S. income tax returns for 2005 through 2007, which is expected to be completed in 2010. RiverSource Life or certain of its subsidiaries' state income tax returns are currently under examination by various jurisdictions for years ranging from 1998 through 2006. On September 25, 2007, the IRS issued Revenue Ruling 2007-61 in which it announced that it intends to issue regulations with respect to certain computational aspects of the Dividends Received Deduction ("DRD") related to separate account assets held in connection with variable contracts of life insurance companies. Revenue Ruling 2007-61 suspended a revenue ruling issued in August 2007 that purported to change accepted industry and IRS interpretations of the statutes governing these computational questions. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other members of the public will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing and substance of any such regulations are unknown at this time, but they may result in the elimination of some or all of the separate account DRD tax benefit that RiverSource Life receives. Management believes that it is likely that any such regulations would apply prospectively only. Additionally, included in the Administration's 2011 Revenue Proposals is a provision to modify the DRD for life insurance companies' separate accounts, which if enacted could significantly reduce the DRD tax benefits RiverSource Life receives, prospectively, beginning in 2011. For the year ended December 31, 2009, RiverSource Life recorded a benefit of approximately $62 million related to the current year's separate account DRD. As a result of the separation of Ameriprise Financial from American Express, RiverSource Life and subsidiaries will not be able to file a consolidated U.S. federal income tax return with other members of Ameriprise Financial's affiliated group until 2010. The items comprising other comprehensive income (loss) are presented net of the following income tax provision (benefit) amounts:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Net unrealized securities gains (losses) $166 $(302) $28 Net unrealized derivative gains 2 2 -- - ------------------------------------------------------------------------------------------------------- Net income tax provision (benefit) $168 $(300) $28 =======================================================================================================
15. DERIVATIVES AND HEDGING ACTIVITIES Derivative instruments enable RiverSource Life to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. RiverSource Life primarily enters into derivative agreements for risk management purposes related to RiverSource Life's products and operations. F-35 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- RiverSource Life uses derivatives as economic hedges and occasionally holds derivatives designated for hedge accounting. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives, by type of derivative and product at December 31, 2009:
BALANCE BALANCE DERIVATIVES NOT DESIGNATED AS HEDGING SHEET SHEET INSTRUMENTS LOCATION ASSET LOCATION LIABILITY - ------------------------------------------------------------------------------------------------------------ (IN (IN MILLIONS) MILLIONS) INTEREST RATE CONTRACTS Other GMWB and GMAB Other assets $176 liabilities $ 280 EQUITY CONTRACTS Other GMWB and GMAB Other assets 437 liabilities 474 Other GMDB -- liabilities 2 Equity indexed annuities Other assets 2 -- Future Equity indexed annuities embedded policy derivatives -- benefits 9 OTHER Future policy GMWB and GMAB embedded derivatives(1) -- benefits 299 - ------------------------------------------------------------------------------------------------------------ Total $615 $1,064 ============================================================================================================
(1) The fair values of GMWB and GMAB embedded derivatives fluctuate primarily based on changes in equity, interest rate and credit markets. See Note 11 for additional information regarding RiverSource Life's fair value measurement of derivative instruments. Derivatives Not Designated as Hedges The following table presents a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income for the year ended December 31, 2009:
LOCATION OF AMOUNT OF GAIN (LOSS) GAIN (LOSS) ON ON DERIVATIVES DERIVATIVES DERIVATIVES NOT DESIGNATED AS HEDGING RECOGNIZED RECOGNIZED INSTRUMENTS IN INCOME IN INCOME - --------------------------------------------------------------------------------- (IN MILLIONS) INTEREST RATE CONTRACTS Benefits, claims, losses and settlement GMWB and GMAB expenses $ (435) EQUITY CONTRACTS Benefits, claims, losses and settlement GMWB and GMAB expenses (1,310) Benefits, claims, losses and settlement GMDB expenses (10) Interest credited to fixed Equity indexed annuities accounts 4 Interest credited to fixed Equity indexed annuities embedded derivatives accounts 7 OTHER Benefits, claims, losses and settlement GMWB and GMAB embedded derivatives expenses 1,533 - --------------------------------------------------------------------------------- Total $ (211) =================================================================================
RiverSource Life holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity and interest rate risk related to various RiverSource Life products and transactions. The majority of RiverSource Life's annuity contracts contain GMDB provisions, which may result in a death benefit payable that exceeds the contract accumulation value when market values of customers' accounts decline. Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of considerations received at the beginning of the contract period, after a specified holding period, respectively. RiverSource Life economically hedges the exposure related to non-life contingent GMWB and GMAB provisions using various equity futures, equity options, total return swaps, interest rate swaptions and interest rate swaps. In the third quarter of 2009, RiverSource Life entered into a limited number of derivative contracts to economically hedge equity exposure related to GMDB provisions on variable annuity contracts written previously in 2009. At December 31, 2009, the gross notional amount of these contracts was $38.7 billion and $77 million for RiverSource Life's GMWB and GMAB provisions and GMDB provisions, respectively. The premium associated with certain of the above options is paid or received semi-annually over the life of the option contract. F-36 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- The following is a summary of the payments RiverSource Life is scheduled to make and receive for these options:
PREMIUMS PREMIUMS (IN MILLIONS) PAYABLE RECEIVABLE - ------------------------------------------------------------------------------------------------- 2010 $189 $5 2011 181 4 2012 160 3 2013 143 2 2014 118 1 2015-2024 410 4
Actual timing and payment amounts may differ due to future contract settlements, modifications or exercises of options prior to the full premium being paid or received. Equity indexed annuities have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by RiverSource Life related to equity indexed annuities products will positively or negatively impact earnings over the life of these products. As a means of economically hedging its obligations under the provisions of these products, RiverSource Life enters into index options and occasionally enters into futures contracts. The gross notional amount of these derivative contracts was $129 million at December 31, 2009. EMBEDDED DERIVATIVES Certain annuities contain GMAB and non-life contingent GMWB provisions, which are considered embedded derivatives. In addition, the equity component of the equity indexed annuity product obligations is also considered an embedded derivative. As captured in the tables above, embedded derivatives are bifurcated from their host contracts and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As noted above, RiverSource Life uses derivatives to mitigate the financial statement impact of these embedded derivatives. CASH FLOW HEDGES RiverSource Life has amounts classified in accumulated other comprehensive income (loss) related to gains and losses associated with the effective portion of previously designated cash flow hedges. RiverSource Life reclassifies these amounts into income as the forecasted transactions impact earnings. During the year ended December 31, 2009, RiverSource Life held no derivatives that were designated as cash flow hedges. The following is a summary of unrealized derivatives gains (losses) included in accumulated other comprehensive income (loss) related to cash flow hedges:
(IN MILLIONS) 2009 2008 2007 - ------------------------------------------------------------------------------------------------------- Net unrealized derivatives losses at January 1 $(38) $(40) $(41) Unrealized derivative losses arising during the period -- (1) (1) Reclassification of realized gains(1) 6 5 2 Income tax provision (benefit) (2) (2) -- - ------------------------------------------------------------------------------------------------------- Net unrealized derivatives losses at December 31 $(34) $(38) $(40) =======================================================================================================
(1) Gain reclassified from Accumulated Other Comprehensive to Net Investment Income on Consolidated Statements of Income. At December 31, 2009, RiverSource Life expects to reclassify $6 million of deferred loss on derivative instruments from accumulated other comprehensive income (loss) to earnings during the next 12 months that will be recorded in net investment income. These were originally losses on derivative instruments related to interest rate swaptions. 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. No hedge relationships were discontinued during the years ended December 31, 2009, 2008 and 2007 due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the years ended December 31, 2009 and 2008, there were no amounts recognized in earnings on derivative transactions that were ineffective. For the year ended December 31, 2007, RiverSource Life recognized $2 million in net investment income related to ineffectiveness on its swaptions. Currently, the longest period of time over which RiverSource Life is hedging exposure to the variability in future cash flows is 9 years and relates to interest credited on forecasted fixed premium product sales. CREDIT RISK Credit risk associated with RiverSource Life's derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, RiverSource Life has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master F-37 RiverSource Life Insurance Company - -------------------------------------------------------------------------------- netting arrangements and collateral arrangements wherever practical. As of December 31, 2009, RiverSource Life held $88 million in cash and cash equivalents and recorded a corresponding liability in other liabilities for collateral RiverSource Life is obligated to return to counterparties. As of December 31, 2009, RiverSource Life had accepted additional collateral consisting of various securities with a fair market value of $22 million, which are not reflected on the Consolidated Balance Sheets. As of December 31, 2009, RiverSource Life's maximum credit exposure related to derivative assets after considering netting arrangements with counterparties and collateral arrangements was approximately $53 million. Certain of RiverSource Life's derivative instruments contain provisions that adjust the level of collateral RiverSource Life is required to post based on RiverSource Life's financial strength rating (or based on the debt rating of RiverSource Life's parent, Ameriprise Financial). Additionally, certain of RiverSource Life's derivative contracts contain provisions that allow the counterparty to terminate the contract if RiverSource Life does not maintain a specific financial strength rating or Ameriprise Financial's debt does not maintain a specific credit rating (generally an investment grade rating). If these termination provisions were to be triggered, RiverSource Life's counterparty could require immediate settlement of any net liability position. At December 31, 2009, the aggregate fair value of all derivative instruments containing such credit risk features was $296 million. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2009 was $269 million. If the credit risk features of derivative contracts that were in a net liability position at December 31, 2009 were triggered, the additional fair value of assets needed to settle these derivative liabilities would have been $27 million. 16. COMMITMENTS AND CONTINGENCIES At December 31, 2009 and 2008, RiverSource Life had no material commitments to purchase investments other than mortgage loan fundings. See Note 4 for additional information. RiverSource Life's annuity and life products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2009, these guarantees range up to 5.0%. To the extent the yield on RiverSource Life's invested assets portfolio declines below its target spread plus the minimum guarantee, RiverSource Life's profitability would be negatively affected. The Securities and Exchange Commission, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities have brought proceedings challenging several mutual fund and variable product financial practices, generally including suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements. RiverSource Life has received requests for information and has been contacted by regulatory authorities concerning its practices and is cooperating fully with these inquiries. RiverSource Life is involved in the normal course of business in a number of other legal and arbitration proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life 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 consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material impact on results of operations in any particular reporting period as the proceedings are resolved. F-38 (RIVERSOURCE ANNUITIES LOGO) RiverSource Life Insurance Company 829 Ameriprise Financial Center Minneapolis, MN 55474 1 (800) 333-3437 RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company. Both companies are affiliated with Ameriprise Financial Services, Inc. S-6407 L (4/10) (C) 2008-2010 RiverSource Life Insurance Company. All rights reserved. -----END PRIVACY-ENHANCED MESSAGE-----