N-30B-2 1 c62632nv30bv2.txt N-30B-2 (RIVERSOURCE ANNUITIES LOGO) 2010 Annual Report RiverSource Retirement Advisor Advantage(R) Variable Annuity - Band 3 (CHOOSE PAPERLESS LOGO) S-6407 M (4/11) Issued by: RiverSource Life Insurance Company THIS PAGE LEFT BLANK INTENTIONALLY 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, 2010, 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, 2010 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, 2010, 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 22, 2011 -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 1 STATEMENTS OF ASSETS AND LIABILITIES
AB VPS GLOBAL AB VPS AB VPS AC VP AC VP THEMATIC GRO, GRO & INC, INTL VAL, INTL, MID CAP VAL, DEC. 31, 2010 CL B CL B CL B CL II CL II ASSETS Investments, at fair value(1),(2) $17,719,944 $116,597,101 $369,702,423 $56,423,166 $44,144,667 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 2,633 67,003 23,312 47,061 Receivable for share redemptions 48,512 150,203 403,853 41,554 45,506 -------------------------------------------------------------------------------------------------------------------------- Total assets 17,768,456 116,749,937 370,173,279 56,488,032 44,237,234 -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 13,677 85,638 275,998 41,077 34,341 Contract terminations 34,835 64,565 127,855 477 11,165 Payable for investments purchased -- 2,633 67,003 23,312 47,061 -------------------------------------------------------------------------------------------------------------------------- Total liabilities 48,512 152,836 470,856 64,866 92,567 -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 17,683,065 116,468,528 369,138,425 56,264,509 44,067,641 Net assets applicable to contracts in payment period 36,879 128,573 563,998 158,657 77,026 Net assets applicable to seed money -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total net assets $17,719,944 $116,597,101 $369,702,423 $56,423,166 $44,144,667 -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 933,120 6,854,621 25,030,631 6,599,201 3,121,971 (2) Investments, at cost $14,529,626 $142,492,935 $410,298,455 $47,727,266 $39,000,615 -------------------------------------------------------------------------------------------------------------------------- AC VP AC VP CALVERT COL VP COL VP ULTRA, VAL, VP SRI MARSICO GRO, MARSICO INTL OPP, DEC. 31, 2010 (CONTINUED) CL II CL II BAL CL 1 CL 2 ASSETS Investments, at fair value(1),(2) $28,286,576 $206,513,915 $26,851,188 $233,638,317 $73,764,037 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 351 26,564 129 7,378 14,556 Receivable for share redemptions 69,279 179,160 26,651 389,426 103,668 -------------------------------------------------------------------------------------------------------------------------- Total assets 28,356,206 206,719,639 26,877,968 234,035,121 73,882,261 -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 21,439 154,334 19,385 176,707 56,898 Contract terminations 47,839 24,826 7,265 212,719 46,771 Payable for investments purchased 351 26,564 129 7,378 14,556 -------------------------------------------------------------------------------------------------------------------------- Total liabilities 69,629 205,724 26,779 396,804 118,225 -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 28,276,777 206,216,367 26,772,717 233,238,115 73,522,911 Net assets applicable to contracts in payment period 9,800 296,960 78,472 400,202 240,429 Net assets applicable to seed money -- 588 -- -- 696 -------------------------------------------------------------------------------------------------------------------------- Total net assets $28,286,577 $206,513,915 $26,851,189 $233,638,317 $73,764,036 -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 3,048,123 35,241,282 15,841,409 11,380,337 4,616,022 (2) Investments, at cost $27,878,158 $241,683,247 $28,030,828 $198,709,241 $88,567,321 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 2 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES
CS EV VT FID VIP FID VIP FID VIP COMMODITY FLOATING-RATE CONTRAFUND, GRO & INC, MID CAP, DEC. 31, 2010 (CONTINUED) RETURN INC SERV CL 2 SERV CL 2 SERV CL 2 ASSETS Investments, at fair value(1),(2) $101,183,490 $247,938,774 $512,182,685 $160,712,077 $708,605,896 Dividends receivable -- 938,684 -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 5,477 221,980 8,486 -- 19,836 Receivable for share redemptions 172,599 199,919 768,175 213,616 914,975 -------------------------------------------------------------------------------------------------------------------------- Total assets 101,361,566 249,299,357 512,959,346 160,925,693 709,540,707 -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 77,111 190,740 388,833 116,263 526,887 Contract terminations 95,488 9,180 379,342 97,352 388,089 Payable for investments purchased 5,477 1,160,663 8,486 -- 19,836 -------------------------------------------------------------------------------------------------------------------------- Total liabilities 178,076 1,360,583 776,661 213,615 934,812 -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 100,945,770 247,583,026 511,099,711 160,402,378 707,552,464 Net assets applicable to contracts in payment period 237,720 355,748 1,082,746 309,700 1,053,163 Net assets applicable to seed money -- -- 228 -- 268 -------------------------------------------------------------------------------------------------------------------------- Total net assets $101,183,490 $247,938,774 $512,182,685 $160,712,078 $708,605,895 -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 12,045,654 26,209,173 21,804,286 12,929,371 22,054,338 (2) Investments, at cost $116,503,811 $239,226,995 $566,705,435 $163,706,722 $590,940,594 -------------------------------------------------------------------------------------------------------------------------- FTVIPT FID VIP FTVIPT FRANK FTVIPT FRANK MUTUAL SHARES GS VIT OVERSEAS, GLOBAL REAL EST, SM CAP VAL, SEC, MID CAP VAL, DEC. 31, 2010 (CONTINUED) SERV CL 2 CL 2 CL 2 CL 2 INST ASSETS Investments, at fair value(1),(2) $122,216,174 $172,608,885 $193,361,961 $174,040,457 $328,204,212 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 657 11,300 4,761 53,256 -- Receivable for share redemptions 244,961 187,931 326,961 208,498 431,322 -------------------------------------------------------------------------------------------------------------------------- Total assets 122,461,792 172,808,116 193,693,683 174,302,211 328,635,534 -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 91,138 126,544 143,447 133,720 238,190 Contract terminations 153,822 61,388 183,514 74,778 193,133 Payable for investments purchased 657 11,300 4,761 53,256 -- -------------------------------------------------------------------------------------------------------------------------- Total liabilities 245,617 199,232 331,722 261,754 431,323 -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 121,894,592 172,247,563 193,127,845 173,822,191 327,666,256 Net assets applicable to contracts in payment period 321,583 361,321 233,760 217,699 537,955 Net assets applicable to seed money -- -- 356 567 -- -------------------------------------------------------------------------------------------------------------------------- Total net assets $122,216,175 $172,608,884 $193,361,961 $174,040,457 $328,204,211 -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 7,353,560 13,453,537 11,899,198 10,911,627 23,276,894 (2) Investments, at cost $124,829,972 $268,337,798 $163,275,152 $185,771,416 $328,424,008 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 3 STATEMENTS OF ASSETS AND LIABILITIES
GS VIT INVESCO INVESCO INVESCO INVESCO STRUCTD U.S. EQ, VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, DEC. 31, 2010 (CONTINUED) INST SER II SER II SER I SER I ASSETS Investments, at fair value(1),(2) $167,513,711 $102,946,749 $30,871,417 $6,331,921 $14,005,733 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 814 1,029 5,095 25 1,903 Receivable for share redemptions 226,823 129,718 44,057 4,889 12,600 -------------------------------------------------------------------------------------------------------------------------- Total assets 167,741,348 103,077,496 30,920,569 6,336,835 14,020,236 -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 122,632 74,876 23,207 4,495 10,081 Contract terminations 104,191 54,842 20,849 393 2,519 Payable for investments purchased 814 1,029 5,095 25 1,903 -------------------------------------------------------------------------------------------------------------------------- Total liabilities 227,637 130,747 49,151 4,913 14,503 -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 167,355,337 102,930,480 30,854,697 6,315,694 14,004,815 Net assets applicable to contracts in payment period 158,374 16,269 16,721 16,228 918 Net assets applicable to seed money -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total net assets $167,513,711 $102,946,749 $30,871,418 $6,331,922 $14,005,733 -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 15,848,033 4,491,568 2,371,077 359,360 2,492,123 (2) Investments, at cost $189,636,251 $ 97,567,427 $31,060,739 $4,212,622 $19,049,819 -------------------------------------------------------------------------------------------------------------------------- INVESCO INVESCO INVESCO INVESCO VANK VI JANUS ASPEN VI GLOBAL HLTH, VI INTL GRO, VI TECH, COMSTOCK, GLOBAL TECH, DEC. 31, 2010 (CONTINUED) SER II SER II SER I SER II SERV ASSETS Investments, at fair value(1),(2) $22,250,601 $121,171,446 $33,423,508 $257,009,567 $24,760,253 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 14,734 13,884 2,224 4,083 1,475 Receivable for share redemptions 17,695 131,879 36,954 317,808 33,715 -------------------------------------------------------------------------------------------------------------------------- Total assets 22,283,030 121,317,209 33,462,686 257,331,458 24,795,443 -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 17,054 91,273 23,936 191,443 17,528 Contract terminations 642 40,606 13,018 126,365 16,187 Payable for investments purchased 14,734 13,884 2,224 4,083 1,475 -------------------------------------------------------------------------------------------------------------------------- Total liabilities 32,430 145,763 39,178 321,891 35,190 -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 22,249,317 121,077,890 33,422,663 256,847,044 24,619,580 Net assets applicable to contracts in payment period 1,283 93,556 845 162,523 140,673 Net assets applicable to seed money -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------------- Total net assets $22,250,600 $121,171,446 $33,423,508 $257,009,567 $24,760,253 -------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 1,358,400 4,274,125 2,088,969 22,023,099 4,374,603 (2) Investments, at cost $22,899,105 $111,421,793 $24,668,710 $271,280,358 $22,355,225 --------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 4 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES
JANUS ASPEN JANUS ASPEN MFS MFS MFS JANUS, OVERSEAS, INV GRO STOCK, NEW DIS, UTILITIES, DEC. 31, 2010 (CONTINUED) SERV SERV SERV CL SERV CL SERV CL ASSETS Investments, at fair value(1),(2) $82,233,183 $175,075,543 $82,959,875 $62,697,587 $229,995,171 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 2,930 38,090 42,514 2,775 2,743 Receivable for share redemptions 139,059 128,192 98,409 86,032 330,808 -------------------------------------------------------------------------------------------------------------------------------- Total assets 82,375,172 175,241,825 83,100,798 62,786,394 230,328,722 -------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 62,630 125,106 61,150 45,257 173,338 Contract terminations 76,429 3,086 37,259 40,774 157,471 Payable for investments purchased 2,930 38,090 42,514 2,775 2,743 -------------------------------------------------------------------------------------------------------------------------------- Total liabilities 141,989 166,282 140,923 88,806 333,552 -------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 82,211,013 174,700,048 82,837,823 62,591,911 229,601,446 Net assets applicable to contracts in payment period 21,610 375,495 122,052 105,677 392,828 Net assets applicable to seed money 560 -- -- -- 896 -------------------------------------------------------------------------------------------------------------------------------- Total net assets $82,233,183 $175,075,543 $82,959,875 $62,697,588 $229,995,170 -------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 3,422,105 3,124,117 7,710,026 3,534,250 9,218,243 (2) Investments, at cost $73,788,122 $112,647,958 $74,004,747 $48,774,516 $223,429,622 -------------------------------------------------------------------------------------------------------------------------------- MS UIF MS UIF NB AMT OPPEN GLOBAL OPPEN GLOBAL GLOBAL REAL EST, MID CAP GRO, INTL, SEC VA, STRATEGIC INC VA, DEC. 31, 2010 (CONTINUED) CL II CL II CL S SERV SRV ASSETS Investments, at fair value(1),(2) $73,116,473 $60,967,357 $22,804,363 $107,677,617 $985,347,754 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 29,864 61,207 346 74,014 299,941 Receivable for share redemptions 80,029 53,561 73,539 113,408 770,568 -------------------------------------------------------------------------------------------------------------------------------- Total assets 73,226,366 61,082,125 22,878,248 107,865,039 986,418,263 -------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 56,304 46,110 17,305 81,794 760,435 Contract terminations 23,726 7,451 56,234 31,615 10,133 Payable for investments purchased 29,864 61,207 346 74,014 299,941 -------------------------------------------------------------------------------------------------------------------------------- Total liabilities 109,894 114,768 73,885 187,423 1,070,509 -------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 72,934,491 60,858,596 22,791,286 107,396,295 983,157,879 Net assets applicable to contracts in payment period 181,981 108,401 13,077 280,641 2,189,875 Net assets applicable to seed money -- 360 -- 680 -- -------------------------------------------------------------------------------------------------------------------------------- Total net assets $73,116,472 $60,967,357 $22,804,363 $107,677,616 $985,347,754 -------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 8,704,342 5,076,383 2,205,451 3,584,475 173,476,717 (2) Investments, at cost $73,929,058 $54,864,108 $23,184,245 $106,073,882 $913,551,986 --------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 5 STATEMENTS OF ASSETS AND LIABILITIES
OPPEN MAIN PIMCO VIT PUT VT PUT VT PUT VT ST SM MID CAP VA, ALL ASSET, GLOBAL HLTH CARE, INTL EQ, MULTI-CAP GRO, DEC. 31, 2010 (CONTINUED) SERV ADVISOR CL CL IB CL IB CL IB ASSETS Investments, at fair value(1),(2) $76,560,275 $244,030,879 $21,455,084 $32,041,487 $33,345,807 Dividends receivable -- 5,875,103 -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 22,654 132,021 6,788 233 -- Receivable for share redemptions 80,343 266,218 21,754 25,197 37,260 --------------------------------------------------------------------------------------------------------------------------------- Total assets 76,663,272 250,304,221 21,483,626 32,066,917 33,383,067 --------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 58,860 187,841 15,599 23,196 23,799 Contract terminations 21,483 78,378 6,155 2,002 13,461 Payable for investments purchased 22,654 6,007,124 6,788 233 -- --------------------------------------------------------------------------------------------------------------------------------- Total liabilities 102,997 6,273,343 28,542 25,431 37,260 --------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 76,482,913 242,766,114 21,420,837 32,006,989 33,279,053 Net assets applicable to contracts in payment period 76,674 1,264,448 34,172 34,421 66,754 Net assets applicable to seed money 688 316 75 76 -- --------------------------------------------------------------------------------------------------------------------------------- Total net assets $76,560,275 $244,030,878 $21,455,084 $32,041,486 $33,345,807 --------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 4,374,873 21,964,976 1,752,866 2,719,990 1,638,615 (2) Investments, at cost $71,665,155 $243,292,215 $20,164,014 $36,289,396 $29,430,070 --------------------------------------------------------------------------------------------------------------------------------- DISC DISC DISC DISC DISC ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, DEC. 31, 2010 (CONTINUED) AGGR CONSERV MOD MOD AGGR MOD CONSERV ASSETS Investments, at fair value(1),(2) $22,909,478 $59,215,673 $111,104,222 $55,565,948 $61,169,898 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 1,036 789 3,516 1,721 12,585 Receivable for share redemptions -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------------- Total assets 22,910,514 59,216,462 111,107,738 55,567,669 61,182,483 --------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 16,685 46,823 82,705 40,904 46,803 Contract terminations 427 26,865 139,495 2,707 246 Payable for investments purchased -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------------- Total liabilities 17,112 73,688 222,200 43,611 47,049 --------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 22,753,046 58,977,500 110,577,976 53,329,773 60,856,681 Net assets applicable to contracts in payment period 140,279 165,214 307,496 2,194,208 278,676 Net assets applicable to seed money 77 60 66 77 77 --------------------------------------------------------------------------------------------------------------------------------- Total net assets $22,893,402 $59,142,774 $110,885,538 $55,524,058 $61,135,434 --------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 2,325,835 5,529,008 10,989,537 5,562,157 5,898,737 (2) Investments, at cost $19,038,152 $52,614,413 $ 96,378,864 $47,397,942 $53,238,259 ---------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 6 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES
COL VP COL VP COL VP COL VP COL VP BAL, CASH MGMT, DIV BOND, DIV EQ INC, DYN EQ, DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 ASSETS Investments, at fair value(1),(2) $242,146,317 $417,968,094 $1,162,666,105 $1,005,501,792 $436,797,285 Dividends receivable -- 115 -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 8,857 36,630 206,176 44,832 106 Receivable for share redemptions -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- Total assets 242,155,174 418,004,839 1,162,872,281 1,005,546,624 436,797,391 ------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 205,806 331,263 915,882 777,453 362,043 Contract terminations 15,374 211,051 195,766 821,389 233,649 Payable for investments purchased -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- Total liabilities 221,180 542,314 1,111,648 1,598,842 595,692 ------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 238,222,015 417,270,886 1,157,218,887 1,000,255,039 431,713,465 Net assets applicable to contracts in payment period 3,711,891 191,639 4,541,746 3,692,743 4,488,234 Net assets applicable to seed money 88 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- Total net assets $241,933,994 $417,462,525 $1,161,760,633 $1,003,947,782 $436,201,699 ------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 17,508,772 417,968,093 105,696,919 76,347,896 22,608,555 (2) Investments, at cost $245,798,492 $417,787,626 $1,105,784,885 $ 924,128,934 $508,979,846 ------------------------------------------------------------------------------------------------------------------------------- COL VP COL VP COL VP GLOBAL INFLATION COL VP COL VP MID CAP GLOBAL BOND, PROT SEC, HI YIELD BOND, INC OPP, GRO OPP, DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 ASSETS Investments, at fair value(1),(2) $410,582,432 $279,651,062 $501,833,704 $215,737,630 $140,341,092 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 208,325 12,690 117,586 139,294 437 Receivable for share redemptions -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- Total assets 410,790,757 279,663,752 501,951,290 215,876,924 140,341,529 ------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 321,500 215,448 395,083 165,671 114,813 Contract terminations -- 47,260 74,596 74,166 61,802 Payable for investments purchased -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- Total liabilities 321,500 262,708 469,679 239,837 176,615 ------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 409,809,683 279,346,212 499,000,167 215,405,784 139,303,515 Net assets applicable to contracts in payment period 659,574 54,832 2,481,444 231,303 861,399 Net assets applicable to seed money -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------- Total net assets $410,469,257 $279,401,044 $501,481,611 $215,637,087 $140,164,914 ------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 35,092,516 29,313,528 72,414,676 20,143,570 9,658,712 (2) Investments, at cost $384,470,550 $280,916,378 $475,213,303 $196,757,442 $108,183,528 -------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 7 STATEMENTS OF ASSETS AND LIABILITIES
COL VP MID CAP COL VP COL VP COL VP COL VP SELECT VAL OPP, S&P 500, SHORT DURATION, LG CAP GRO, LG CAP VAL, DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 ASSETS Investments, at fair value(1),(2) $120,328,070 $148,817,681 $321,654,313 $150,329,172 $25,363,249 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 2,002 20,302 10,654 263 6,988 Receivable for share redemptions -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- Total assets 120,330,072 148,837,983 321,664,967 150,329,435 25,370,237 --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 91,144 109,562 248,946 109,059 18,333 Contract terminations 63,172 34,956 119,860 154,111 4,497 Payable for investments purchased -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- Total liabilities 154,316 144,518 368,806 263,170 22,830 --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 120,097,608 147,931,562 320,639,728 149,627,474 25,335,560 Net assets applicable to contracts in payment period 78,148 761,815 656,433 438,791 11,847 Net assets applicable to seed money -- 88 -- -- -- --------------------------------------------------------------------------------------------------------------------------- Total net assets $120,175,756 $148,693,465 $321,296,161 $150,066,265 $25,347,407 --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 10,988,865 17,284,284 31,017,774 22,042,401 2,531,262 (2) Investments, at cost $125,061,114 $132,367,959 $318,334,484 $164,634,693 $23,482,052 --------------------------------------------------------------------------------------------------------------------------- COL VP SELECT COL VP EMER COL VP VP VP SM CAP VAL, MKTS OPP, INTL OPP, AGGR, AGGR, DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 2 CL 4 ASSETS Investments, at fair value(1),(2) $66,560,263 $422,329,405 $149,229,835 $208,038,345 $1,821,262,145 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 10,869 97,466 38,006 813,322 1,261,664 Receivable for share redemptions -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- Total assets 66,571,132 422,426,871 149,267,841 208,851,667 1,822,523,809 --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 48,259 340,124 130,062 149,365 1,395,351 Contract terminations 58,180 87,209 32,804 -- 10,139 Payable for investments purchased -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- Total liabilities 106,439 427,333 162,866 149,365 1,405,490 --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 66,318,022 421,155,215 148,053,874 208,699,381 1,821,118,319 Net assets applicable to contracts in payment period 146,671 844,323 1,051,101 2,877 -- Net assets applicable to seed money -- -- -- 44 -- --------------------------------------------------------------------------------------------------------------------------- Total net assets $66,464,693 $421,999,538 $149,104,975 $208,702,302 $1,821,118,319 --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 5,782,820 23,541,215 12,353,463 18,426,780 161,316,399 (2) Investments, at cost $66,476,290 $299,260,377 $133,203,254 $192,054,492 $1,566,037,012 ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 8 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES
VP VP VP DAVIS VP GS VP CONSERV, CONSERV, NY VENTURE, MID CAP VAL, MOD, DEC. 31, 2010 (CONTINUED) CL 2 CL 4 CL 3 CL 3 CL 2 ASSETS Investments, at fair value(1),(2) $183,335,014 $1,412,524,234 $62,709,340 $14,312,423 $1,728,391,095 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 912,507 6,324 16 15,612 5,981,466 Receivable for share redemptions -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Total assets 184,247,521 1,412,530,558 62,709,356 14,328,035 1,734,372,561 ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 153,626 1,198,759 47,311 10,704 1,337,496 Contract terminations 60 1,386,163 88,087 2,292 41,939 Payable for investments purchased -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Total liabilities 153,686 2,584,922 135,398 12,996 1,379,435 ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 184,091,301 1,409,945,636 62,499,064 14,307,900 1,732,982,288 Net assets applicable to contracts in payment period 2,534 -- 74,894 7,139 10,827 Net assets applicable to seed money -- -- -- -- 11 ----------------------------------------------------------------------------------------------------------------------------- Total net assets $184,093,835 $1,409,945,636 $62,573,958 $14,315,039 $1,732,993,126 ----------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 17,427,283 134,270,364 6,277,211 1,280,181 156,983,751 (2) Investments, at cost $178,335,608 $1,331,793,867 $53,817,309 $13,301,408 $1,633,491,701 ----------------------------------------------------------------------------------------------------------------------------- VP VP VP VP VP MOD, MOD AGGR, MOD AGGR, MOD CONSERV, MOD CONSERV, DEC. 31, 2010 (CONTINUED) CL 4 CL 2 CL 4 CL 2 CL 4 ASSETS Investments, at fair value(1),(2) $11,569,172,928 $986,321,108 $7,162,580,449 $519,158,876 $3,334,334,313 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 49,372 5,935,867 204,684 1,351,308 1,026,606 Receivable for share redemptions -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Total assets 11,569,222,300 992,256,975 7,162,785,133 520,510,184 3,335,360,919 ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES ----------------------------------------------------------------------------------------------------------------------------- Payable to RiverSource Life for: Mortality and expense risk fee 9,232,948 728,975 5,543,075 413,839 2,747,305 Contract terminations 2,149,878 -- 502,721 -- 593,822 Payable for investments purchased -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Total liabilities 11,382,826 728,975 6,045,796 413,839 3,341,127 ----------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 11,557,839,474 991,522,406 7,156,739,337 520,091,103 3,332,019,792 Net assets applicable to contracts in payment period -- 5,583 -- 5,231 -- Net assets applicable to seed money -- 11 -- 11 -- ----------------------------------------------------------------------------------------------------------------------------- Total net assets $11,557,839,474 $991,528,000 $7,156,739,337 $520,096,345 $3,332,019,792 ----------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 1,050,787,732 88,143,084 639,516,112 48,204,167 309,307,450 (2) Investments, at cost $10,376,352,708 $918,341,963 $6,286,797,452 $497,167,523 $3,068,690,736 -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 9 STATEMENTS OF ASSETS AND LIABILITIES
VP PTNRS WF ADV VT WF ADV VT SM CAP VAL, WANGER WANGER CORE EQ, INDEX ASSET ALLOC, DEC. 31, 2010 (CONTINUED) CL 3 INTL USA CL 2 CL 2 ASSETS Investments, at fair value(1),(2) $197,586,199 $458,488,585 $441,908,082 $42,755,871 $36,092,798 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 10,623 8,778 163,728 8,762 -- Receivable for share redemptions -- 537,480 796,273 82,155 62,610 --------------------------------------------------------------------------------------------------------------------------- Total assets 197,596,822 459,034,843 442,868,083 42,846,788 36,155,408 --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 144,577 339,640 327,388 33,191 26,456 Contract terminations 186,574 197,840 468,884 48,964 36,154 Payable for investments purchased -- 8,778 163,728 8,762 -- --------------------------------------------------------------------------------------------------------------------------- Total liabilities 331,151 546,258 960,000 90,917 62,610 --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 196,895,857 457,887,308 441,413,714 42,593,963 35,879,808 Net assets applicable to contracts in payment period 369,814 601,277 494,369 161,292 212,990 Net assets applicable to seed money -- -- -- 616 -- --------------------------------------------------------------------------------------------------------------------------- Total net assets $197,265,671 $458,488,585 $441,908,083 $42,755,871 $36,092,798 --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 12,947,982 12,679,441 13,051,036 2,167,049 3,079,590 (2) Investments, at cost $165,566,079 $350,491,610 $360,571,396 $35,484,558 $37,774,101 --------------------------------------------------------------------------------------------------------------------------- WF ADV WF ADV WF ADV VT VT INTL EQ, VT OPP, SM CAP GRO, DEC. 31, 2010 (CONTINUED) CL 2 CL 2 CL 2 ASSETS Investments, at fair value(1),(2) $74,526,363 $51,585,277 $100,081,392 Dividends receivable -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 16,083 479 41 Receivable for share redemptions 57,679 85,873 148,359 --------------------------------------------------------------------------------------------------------------------------- Total assets 74,600,125 51,671,629 100,229,792 --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 56,450 37,958 75,168 Contract terminations 1,229 47,915 73,191 Payable for investments purchased 16,083 479 41 --------------------------------------------------------------------------------------------------------------------------- Total liabilities 73,762 86,352 148,400 --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 74,345,087 51,575,518 100,006,887 Net assets applicable to contracts in payment period 181,276 9,150 74,060 Net assets applicable to seed money -- 609 445 --------------------------------------------------------------------------------------------------------------------------- Total net assets $74,526,363 $51,585,277 $100,081,392 --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 12,983,687 2,800,504 12,432,471 (2) Investments, at cost $59,122,833 $50,402,423 $ 89,618,483 ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 10 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF OPERATIONS
AB VPS GLOBAL AB VPS AB VPS AC VP AC VP THEMATIC GRO, GRO & INC, INTL VAL, INTL, MID CAP VAL, YEAR ENDED DEC. 31, 2010 CL B CL B CL B CL II CL II INVESTMENT INCOME Dividend income $ 348,239 $ -- $ 10,930,768 $ 1,215,830 $ 1,392,830 Variable account expenses 150,245 1,008,823 4,062,781 462,252 971,900 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 197,994 (1,008,823) 6,867,987 753,578 420,930 ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 6,155,035 26,842,798 276,723,182 11,559,424 183,977,411 Cost of investments sold 5,902,863 36,276,963 364,382,365 11,081,397 183,180,074 ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 252,172 (9,434,165) (87,659,183) 478,027 797,337 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 2,119,815 23,189,233 60,930,817 4,760,256 9,495,889 ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 2,371,987 13,755,068 (26,728,366) 5,238,283 10,293,226 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $2,569,981 $12,746,245 $(19,860,379) $ 5,991,861 $ 10,714,156 ---------------------------------------------------------------------------------------------------------------------------- AC VP AC VP CALVERT COL VP COL VP ULTRA, VAL, VP SRI MARSICO GRO, MARSICO INTL OPP, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL II CL II BAL CL 1 CL 2 INVESTMENT INCOME Dividend income $ 94,870 $ 4,048,326 $ 366,741 $ 1,298,905 $ 483,642 Variable account expenses 231,981 1,734,326 227,049 7,431,669 646,491 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (137,111) 2,314,000 139,692 (6,132,764) (162,849) ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 6,158,648 33,647,735 4,742,869 1,575,761,621 17,969,488 Cost of investments sold 6,875,400 43,277,307 5,273,950 1,609,709,297 24,839,731 ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (716,752) (9,629,572) (531,081) (33,947,676) (6,870,243) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 4,628,198 29,785,042 3,203,682 67,774,916 15,115,506 ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 3,911,446 20,155,470 2,672,601 33,827,240 8,245,263 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $3,774,335 $22,469,470 $2,812,293 $ 27,694,476 $ 8,082,414 ---------------------------------------------------------------------------------------------------------------------------- CS EV VT FID VIP FID VIP FID VIP COMMODITY FLOATING-RATE CONTRAFUND, GRO & INC, MID CAP, YEAR ENDED DEC. 31, 2010 (CONTINUED) RETURN INC SERV CL 2 SERV CL 2 SERV CL 2 INVESTMENT INCOME Dividend income $ 5,976,484 $ 20,532,184 $ 4,924,195 $ 710,710 $ 773,033 Variable account expenses 785,609 4,753,753 5,366,033 1,331,656 7,229,098 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 5,190,875 15,778,431 (441,838) (620,946) (6,456,065) ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 15,146,954 778,131,393 375,357,270 32,232,588 532,591,173 Cost of investments sold 20,035,928 752,199,207 468,551,635 36,868,166 540,131,530 ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (4,888,974) 25,932,186 (93,194,365) (4,635,578) (7,540,357) Distributions from capital gains -- -- 216,856 -- 2,869,143 Net change in unrealized appreciation or depreciation of investments 13,066,888 3,879,008 159,742,494 24,859,190 188,052,048 ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 8,177,914 29,811,194 66,764,985 20,223,612 183,380,834 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $13,368,789 $ 45,589,625 $ 66,323,147 $19,602,666 $176,924,769 ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 11 STATEMENTS OF OPERATIONS
FTVIPT FID VIP FTVIPT FRANK FTVIPT FRANK MUTUAL SHARES GS VIT OVERSEAS, GLOBAL REAL EST, SM CAP VAL, SEC, MID CAP VAL, YEAR ENDED DEC. 31, 2010 (CONTINUED) SERV CL 2 CL 2 CL 2 CL 2 INST INVESTMENT INCOME Dividend income $ 1,320,489 $ 4,763,992 $ 1,349,770 $ 2,671,593 $ 2,035,233 Variable account expenses 1,021,312 1,435,493 1,550,702 1,541,654 2,668,751 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 299,177 3,328,499 (200,932) 1,129,939 (633,518) ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 24,630,733 32,857,648 39,101,113 29,899,180 69,743,082 Cost of investments sold 28,649,757 57,764,200 38,947,568 33,976,059 80,753,327 ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (4,019,024) (24,906,552) 153,545 (4,076,879) (11,010,245) Distributions from capital gains 218,866 -- -- -- -- Net change in unrealized appreciation or depreciation of investments 16,036,759 51,790,396 43,612,692 19,514,108 79,373,700 ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 12,236,601 26,883,844 43,766,237 15,437,229 68,363,455 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $12,535,778 $30,212,343 $43,565,305 $16,567,168 $ 67,729,937 ---------------------------------------------------------------------------------------------------------------------------- GS VIT INVESCO INVESCO INVESCO INVESCO STRUCTD U.S. EQ, VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, YEAR ENDED DEC. 31, 2010 (CONTINUED) INST SER II SER II SER I SER I INVESTMENT INCOME Dividend income $ 2,352,250 $ 511,635 $ -- $ -- $ 14,545 Variable account expenses 1,428,252 836,100 271,253 50,154 119,322 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 923,998 (324,465) (271,253) (50,154) (104,777) ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 36,153,789 18,677,730 8,495,813 1,551,902 4,708,976 Cost of investments sold 44,642,763 19,962,198 9,818,391 1,219,325 6,829,853 ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (8,488,974) (1,284,468) (1,322,578) 332,577 (2,120,877) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 26,062,459 14,862,908 6,384,619 940,250 3,449,780 ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 17,573,485 13,578,440 5,062,041 1,272,827 1,328,903 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $18,497,483 $13,253,975 $4,790,788 $1,222,673 $1,224,126 ---------------------------------------------------------------------------------------------------------------------------- INVESCO INVESCO INVESCO INVESCO VANK JANUS ASPEN VI GLOBAL HLTH, VI INTL GRO, VI TECH, VI COMSTOCK, GLOBAL TECH, YEAR ENDED DEC. 31, 2010 (CONTINUED) SER II SER II SER I SER II SERV INVESTMENT INCOME Dividend income $ -- $ 2,108,998 $ -- $ 917,493 $ -- Variable account expenses 205,084 3,334,902 245,517 3,749,888 186,761 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (205,084) (1,225,904) (245,517) (2,832,395) (186,761) ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 6,583,869 638,696,340 5,288,476 475,468,869 4,999,764 Cost of investments sold 7,127,927 709,273,841 4,578,204 560,972,217 5,332,424 ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (544,058) (70,577,501) 710,272 (85,503,348) (332,660) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 1,545,624 29,377,162 5,220,907 116,005,067 5,316,370 ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 1,001,566 (41,200,339) 5,931,179 30,501,719 4,983,710 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 796,482 $(42,426,243) $5,685,662 $ 27,669,324 $4,796,949 ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 12 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF OPERATIONS
JANUS ASPEN JANUS ASPEN MFS MFS MFS JANUS, OVERSEAS, INV GRO STOCK, NEW DIS, UTILITIES, YEAR ENDED DEC. 31, 2010 (CONTINUED) SERV SERV SERV CL SERV CL SERV CL INVESTMENT INCOME Dividend income $ 293,702 $ 880,711 $ 245,637 $ -- $6,919,526 Variable account expenses 5,766,291 1,379,320 712,217 458,049 1,960,253 ----------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (5,472,589) (498,609) (466,580) (458,049) 4,959,273 ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 1,426,207,362 27,540,136 19,414,777 10,059,526 41,903,232 Cost of investments sold 1,452,808,307 20,414,878 19,245,320 9,693,771 45,314,444 ----------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (26,600,945) 7,125,258 169,457 365,755 (3,411,212) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 20,048,186 28,762,482 8,672,651 16,692,409 24,053,603 ----------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (6,552,759) 35,887,740 8,842,108 17,058,164 20,642,391 ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ (12,025,348) $35,389,131 $ 8,375,528 $16,600,115 $25,601,664 ----------------------------------------------------------------------------------------------------------------------------------- MS UIF MS UIF GLOBAL MID NB AMT OPPEN GLOBAL OPPEN GLOBAL REAL EST, CAP GRO, INTL, SEC VA, STRATEGIC INC VA, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL II CL II CL S SERV SRV INVESTMENT INCOME Dividend income $ 13,569,876 $ -- $ 2,454,079 $ 1,241,790 $ 222,202,129 Variable account expenses 1,355,269 454,566 1,242,401 892,971 15,344,182 ----------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 12,214,607 (454,566) 1,211,678 348,819 206,857,947 ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 215,162,329 9,687,349 290,227,385 17,033,010 1,910,118,088 Cost of investments sold 246,631,012 10,497,012 340,026,180 19,003,333 1,938,516,917 ----------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (31,468,683) (809,663) (49,798,795) (1,970,323) (28,398,829) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 26,653,423 15,501,356 36,056,941 15,393,418 8,315,814 ----------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (4,815,260) 14,691,693 (13,741,854) 13,423,095 (20,083,015) ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 7,399,347 $14,237,127 $(12,530,176) $13,771,914 $ 186,774,932 ----------------------------------------------------------------------------------------------------------------------------------- OPPEN MAIN PIMCO PUT VT PUT VT PUT VT ST SM MID CAP VA, VIT ALL ASSET, GLOBAL HLTH CARE, INTL EQ, MULTI-CAP GRO, PERIOD ENDED DEC. 31, 2010 (CONTINUED) SERV ADVISOR CL CL IB CL IB CL IB(1) INVESTMENT INCOME Dividend income $ 311,516 $ 31,040,402 $ 459,691 $1,168,896 $ -- Variable account expenses 650,047 5,860,946 195,584 267,654 73,165 ----------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (338,531) 25,179,456 264,107 901,242 (73,165) ----------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 15,184,504 1,112,484,821 5,710,116 7,134,387 2,062,918 Cost of investments sold 16,331,187 1,137,949,178 5,527,368 9,039,395 1,930,947 ----------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (1,146,683) (25,464,357) 182,748 (1,905,008) 131,971 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 15,920,201 63,240,462 (184,979) 3,509,348 3,915,737 ----------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 14,773,518 37,776,105 (2,231) 1,604,340 4,047,708 ----------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $14,434,987 $ 62,955,561 $ 261,876 $2,505,582 $3,974,543 -----------------------------------------------------------------------------------------------------------------------------------
(1) For the period Sept. 24, 2010 (commencement of operations) to Dec. 31, 2010. See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 13 STATEMENTS OF OPERATIONS
DISC DISC DISC DISC DISC ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, YEAR ENDED DEC. 31, 2010 (CONTINUED) AGGR CONSERV MOD MOD AGGR MOD CONSERV INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ -- $ -- Variable account expenses 176,471 474,793 857,933 452,133 495,856 ----------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (176,471) (474,793) (857,933) (452,133) (495,856) ----------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 24,239,686 57,207,300 109,186,163 65,071,455 65,522,955 Cost of investments sold 23,749,370 55,862,474 107,583,852 63,687,569 64,143,067 ----------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 490,316 1,344,826 1,602,311 1,383,886 1,379,888 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 1,991,573 3,119,575 8,449,883 4,345,829 3,668,566 ----------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 2,481,889 4,464,401 10,052,194 5,729,715 5,048,454 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 2,305,418 $ 3,989,608 $ 9,194,261 $ 5,277,582 $ 4,552,598 ----------------------------------------------------------------------------------------------------------------------------- COL VP COL VP COL VP COL VP COL VP BAL, CASH MGMT, DIV BOND, DIV EQ INC, DYN EQ, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 INVESTMENT INCOME Dividend income $ -- $ 51,835 $ 69,856,849 $ -- $ -- Variable account expenses 2,441,168 4,773,910 22,752,617 15,073,879 4,121,591 ----------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (2,441,168) (4,722,075) 47,104,232 (15,073,879) (4,121,591) ----------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 339,849,846 863,811,505 7,525,239,396 4,843,041,791 672,420,923 Cost of investments sold 344,935,651 863,672,943 7,277,573,223 5,059,958,507 700,001,398 ----------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (5,085,805) 138,562 247,666,173 (216,916,716) (27,580,475) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 33,411,227 (138,562) (90,148,394) 334,606,719 95,299,948 ----------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 28,325,422 -- 157,517,779 117,690,003 67,719,473 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 25,884,254 $ (4,722,075) $ 204,622,011 $ 102,616,124 $63,597,882 ----------------------------------------------------------------------------------------------------------------------------- COL VP COL VP COL VP GLOBAL INFLATION COL VP COL VP MID CAP GLOBAL BOND, PROT SEC, HI YIELD BOND, INC OPP, GRO OPP, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 INVESTMENT INCOME Dividend income $ 27,823,162 $ 7,164,231 $ 46,443,825 $ 24,758,416 $ -- Variable account expenses 7,748,158 8,424,698 4,742,877 7,030,057 1,246,267 ----------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 20,075,004 (1,260,467) 41,700,948 17,728,359 (1,246,267) ----------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 2,550,615,863 3,556,384,510 617,015,687 2,907,734,395 147,175,008 Cost of investments sold 2,529,964,790 3,535,204,499 613,795,580 2,743,067,552 144,703,701 ----------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 20,651,073 21,180,011 3,220,107 164,666,843 2,471,307 Distributions from capital gains -- 572,150 -- -- -- Net change in unrealized appreciation or depreciation of investments (39,422,100) 21,301,758 17,102,759 (130,417,313) 27,934,463 ----------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (18,771,027) 43,053,919 20,322,866 34,249,530 30,405,770 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 1,303,977 $ 41,793,452 $ 62,023,814 $ 51,977,889 $ 29,159,503 -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 14 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF OPERATIONS
COL VP MID CAP COL VP COL VP COL VP COL VP SELECT VAL OPP, S&P 500, SHORT DURATION, LG CAP GRO, LG CAP VAL, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 INVESTMENT INCOME Dividend income $ -- $ -- $ 3,449,735 $ -- $ -- Variable account expenses 1,393,644 1,245,774 3,080,058 1,243,298 162,472 -------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (1,393,644) (1,245,774) 369,677 (1,243,298) (162,472) -------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 399,217,907 180,538,180 422,142,706 222,435,374 19,735,261 Cost of investments sold 428,005,306 180,296,070 421,446,824 230,040,755 19,846,314 -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (28,787,399) 242,110 695,882 (7,605,381) (111,053) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 52,666,036 19,357,208 6,112,773 30,500,363 3,920,379 -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 23,878,637 19,599,318 6,808,655 22,894,982 3,809,326 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 22,484,993 $18,353,544 $ 7,178,332 $ 21,651,684 $ 3,646,854 -------------------------------------------------------------------------------------------------------------------------- COL VP SELECT COL VP EMER COL VP SM CAP VAL, MKTS OPP, INTL OPP, VP AGGR, VP AGGR, PERIOD ENDED DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 2(1) CL 4(1) INVESTMENT INCOME Dividend income $ -- $ 7,331,707 $ 2,116,991 $ -- $ -- Variable account expenses 511,051 4,616,879 1,495,726 473,599 9,360,352 -------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (511,051) 2,714,828 621,265 (473,599) (9,360,352) -------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 83,641,546 891,037,692 192,986,250 2,805,371 126,625,006 Cost of investments sold 85,640,435 873,172,787 193,351,762 2,695,588 120,517,474 -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (1,998,889) 17,864,905 (365,512) 109,783 6,107,532 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 16,499,613 24,788,289 16,307,746 15,983,853 255,225,133 -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 14,500,724 42,653,194 15,942,234 16,093,636 261,332,665 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $13,989,673 $ 45,368,022 $ 16,563,499 $15,620,037 $251,972,313 -------------------------------------------------------------------------------------------------------------------------- (1) For the period May 7, 2010 (commencement of operations) to Dec. 31, 2010. VP VP VP DAVIS VP GS VP CONSERV, CONSERV, NY VENTURE, MID CAP VAL, MOD, PERIOD ENDED DEC. 31, 2010 (CONTINUED) CL 2(1) CL 4(1) CL 3 CL 3 CL 2(1) INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ -- $ -- Variable account expenses 575,375 8,631,376 5,959,595 111,860 4,458,274 -------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (575,375) (8,631,376) (5,959,595) (111,860) (4,458,274) -------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 10,595,165 176,311,572 2,972,830,219 17,266,058 14,070,565 Cost of investments sold 10,357,359 169,415,881 2,939,377,743 17,481,177 13,622,598 -------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 237,806 6,895,691 33,452,476 (215,119) 447,967 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 4,999,406 80,730,367 (65,360,617) 2,831,843 94,899,394 -------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 5,237,212 87,626,058 (31,908,141) 2,616,724 95,347,361 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $4,661,837 $78,994,682 $(37,867,736) $2,504,864 $90,889,087 --------------------------------------------------------------------------------------------------------------------------
(1) For the period May 7, 2010 (commencement of operations) to Dec. 31, 2010. See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 15
VP VP VP VP VP MOD, MOD AGGR, MOD AGGR, MOD CONSERV, MOD CONSERV, PERIOD ENDED DEC. 31, 2010 (CONTINUED) CL 4(1) CL 2(1) CL 4(1) CL 2(1) CL 4(1) INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ -- $ -- Variable account expenses 63,571,414 2,438,058 37,723,573 1,462,630 19,186,173 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (63,571,414) (2,438,058) (37,723,573) (1,462,630) (19,186,173) ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 465,801,243 7,874,458 379,110,229 7,083,890 203,593,029 Cost of investments sold 442,483,582 7,598,711 362,831,777 6,879,486 193,319,157 ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 23,317,661 275,747 16,278,452 204,404 10,273,872 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 1,192,820,220 67,979,145 875,782,997 21,991,353 265,643,577 ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 1,216,137,881 68,254,892 892,061,449 22,195,757 275,917,449 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $1,152,566,467 $65,816,834 $854,337,876 $20,733,127 $256,731,276 ---------------------------------------------------------------------------------------------------------------------------- (1) For the period May 7, 2010 (commencement of operations) to Dec. 31, 2010. VP PTNRS WF ADV VT WF ADV VT SM CAP VAL, WANGER WANGER CORE EQ, INDEX ASSET ALLOC, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 3 INTL USA CL 2 CL 2 INVESTMENT INCOME Dividend income $ -- $10,355,775 $ -- $ 175,247 $ 659,122 Variable account expenses 5,113,382 5,393,448 4,767,576 354,896 320,682 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (5,113,382) 4,962,327 (4,767,576) (179,649) 338,440 ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 2,152,081,021 538,729,045 412,872,843 8,052,079 10,474,032 Cost of investments sold 2,116,506,140 531,986,708 416,609,178 7,515,673 11,920,380 ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 35,574,881 6,742,337 (3,736,335) 536,406 (1,446,348) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 61,980,852 62,797,496 99,405,079 5,247,443 5,321,932 ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 97,555,733 69,539,833 95,668,744 5,783,849 3,875,584 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 92,442,351 $ 74,502,160 $ 90,901,168 $ 5,604,200 $ 4,214,024 ---------------------------------------------------------------------------------------------------------------------------- WF ADV WF ADV WF ADV VT VT INTL EQ, VT OPP, SM CAP GRO, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 2 CL 2 CL 2 INVESTMENT INCOME Dividend income $ 5,719,884 $ 361,649 $ -- Variable account expenses 3,119,475 409,557 783,167 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 2,600,409 (47,908) (783,167) ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 679,268,973 9,071,246 18,024,031 Cost of investments sold 639,223,015 10,163,483 19,062,758 ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 40,045,958 (1,092,237) (1,038,727) Distributions from capital gains 10,310,660 -- -- Net change in unrealized appreciation or depreciation of investments (93,468,141) 11,072,855 22,371,647 ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (43,111,523) 9,980,618 21,332,920 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ (40,511,114) $9,932,710 $20,549,753 ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 16 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
AB VPS GLOBAL AB VPS AB VPS AC VP AC VP THEMATIC GRO, GRO & INC, INTL VAL, INTL, MID CAP VAL, YEAR ENDED DEC. 31, 2010 CL B CL B CL B CL II CL II OPERATIONS Investment income (loss) -- net $ 197,994 $ (1,008,823) $ 6,867,987 $ 753,578 $ 420,930 Net realized gain (loss) on sales of investments 252,172 (9,434,165) (87,659,183) 478,027 797,337 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 2,119,815 23,189,233 60,930,817 4,760,256 9,495,889 ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 2,569,981 12,746,245 (19,860,379) 5,991,861 10,714,156 ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 508,421 2,352,036 16,573,408 767,304 8,617,116 Net transfers(1) (2,006,155) (16,661,733) (238,195,599) (5,168,611) (172,589,015) Transfers for policy loans (3,778) 42,940 101,488 14,846 (4,652) Adjustments to net assets allocated to contracts in payment period (30,468) (21,568) (129,298) (13,048) (11,589) Contract charges (14,707) (98,797) (853,810) (43,598) (406,743) Contract terminations: Surrender benefits (1,223,076) (8,576,912) (31,446,228) (4,161,078) (5,036,214) Death benefits (51,893) (1,169,596) (4,156,360) (574,262) (598,446) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (2,821,656) (24,133,630) (258,106,399) (9,178,447) (170,029,543) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 17,971,619 127,984,486 647,669,201 59,609,752 203,460,054 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $17,719,944 $116,597,101 $ 369,702,423 $56,423,166 $ 44,144,667 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 16,688,585 135,762,252 524,099,669 48,290,885 204,863,181 Contract purchase payments 469,865 2,517,443 17,953,978 604,673 7,822,976 Net transfers(1) (1,980,965) (17,393,422) (262,054,685) (4,333,015) (167,208,843) Transfers for policy loans (3,661) 42,531 82,595 11,198 (4,472) Contract charges (13,616) (103,245) (767,825) (35,601) (390,525) Contract terminations: Surrender benefits (1,106,037) (8,807,747) (22,918,389) (3,337,680) (5,123,603) Death benefits (46,133) (1,243,002) (3,219,829) (471,211) (575,794) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 14,008,038 110,774,810 253,175,514 40,729,249 39,382,920 -------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 17 STATEMENTS OF CHANGES IN NET ASSETS
AC VP AC VP COL VP COL VP ULTRA, VAL, CALVERT VP MARSICO GRO, MARSICO INTL OPP, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL II CL II SRI BAL CL 1 CL 2 OPERATIONS Investment income (loss) -- net $ (137,111) $ 2,314,000 $ 139,692 $ (6,132,764) $ (162,849) Net realized gain (loss) on sales of investments (716,752) (9,629,572) (531,081) (33,947,676) (6,870,243) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 4,628,198 29,785,042 3,203,682 67,774,916 15,115,506 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 3,774,335 22,469,470 2,812,293 27,694,476 8,082,414 ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 535,190 5,384,091 614,397 70,777,376 2,376,436 Net transfers(1) (16,783) (12,186,996) (1,958,419) (1,529,787,605) (10,268,939) Transfers for policy loans 3,280 37,482 2,141 9,951 (13,597) Adjustments to net assets allocated to contracts in payment period (368) (27,327) (8,149) (25,824) (22,280) Contract charges (27,835) (162,357) (25,154) (3,316,519) (53,387) Contract terminations: Surrender benefits (2,045,865) (13,008,132) (1,968,783) (38,494,935) (4,793,446) Death benefits (305,282) (2,100,859) (188,683) (6,948,335) (424,717) ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,857,663) (22,064,098) (3,532,650) (1,507,785,891) (13,199,930) ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 26,369,905 206,108,543 27,571,546 1,713,729,732 78,881,552 ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $28,286,577 $206,513,915 $26,851,189 $ 233,638,317 $ 73,764,036 ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 28,447,676 169,378,185 28,365,851 1,831,326,765 85,819,490 Contract purchase payments 560,370 4,802,282 603,184 72,584,708 2,517,797 Net transfers(1) 50,844 (9,618,725) (1,979,578) (1,641,121,539) (11,548,280) Transfers for policy loans 3,648 23,663 1,881 11,219 (15,476) Contract charges (29,574) (130,968) (25,001) (3,439,390) (58,971) Contract terminations: Surrender benefits (2,161,667) (10,367,665) (1,938,614) (40,419,852) (5,270,866) Death benefits (321,485) (1,707,431) (189,406) (7,282,538) (454,579) ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 26,549,812 152,379,341 24,838,317 211,659,373 70,989,115 ----------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
CS EV VT FID VIP FID VIP FID VIP COMMODITY FLOATING-RATE CONTRAFUND, GRO & INC, MID CAP, YEAR ENDED DEC. 31, 2010 (CONTINUED) RETURN INC SERV CL 2 SERV CL 2 SERV CL 2 OPERATIONS Investment income (loss) -- net $ 5,190,875 $ 15,778,431 $ (441,838) $ (620,946) $ (6,456,065) Net realized gain (loss) on sales of investments (4,888,974) 25,932,186 (93,194,365) (4,635,578) (7,540,357) Distributions from capital gains -- -- 216,856 -- 2,869,143 Net change in unrealized appreciation or depreciation of investments 13,066,888 3,879,008 159,742,494 24,859,190 188,052,048 --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 13,368,789 45,589,625 66,323,147 19,602,666 176,924,769 --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 2,991,874 40,083,802 29,567,663 2,287,359 33,890,887 Net transfers(1) 3,322,111 (683,380,830) (333,429,101) (18,477,849) (482,494,211) Transfers for policy loans 11,271 (9,221) (14,129) 20,570 (42,834) Adjustments to net assets allocated to contracts in payment period 144,276 38,154 (19,633) (36,391) (38,954) Contract charges (56,544) (1,647,281) (1,012,050) (139,177) (1,537,209) Contract terminations: Surrender benefits (7,271,496) (31,381,643) (36,310,544) (11,459,793) (47,891,030) Death benefits (574,007) (5,812,826) (4,104,173) (2,088,406) (6,536,115) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,432,515) (682,109,845) (345,321,967) (29,893,687) (504,649,466) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 89,247,216 884,458,994 791,181,505 171,003,099 1,036,330,592 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $101,183,490 $ 247,938,774 $ 512,182,685 $160,712,078 $ 708,605,895 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 100,552,858 828,277,758 841,695,744 168,181,247 705,682,334 Contract purchase payments 3,437,900 36,533,672 30,079,981 2,201,037 27,192,017 Net transfers(1) 3,426,536 (615,667,345) (354,317,423) (18,036,840) (373,560,136) Transfers for policy loans 13,656 (8,234) (12,830) 16,474 (31,558) Contract charges (65,503) (1,495,862) (1,042,059) (134,807) (1,057,140) Contract terminations: Surrender benefits (8,363,848) (28,220,639) (37,938,267) (11,032,067) (25,777,941) Death benefits (651,790) (5,244,300) (4,271,913) (2,056,631) (3,782,337) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 98,349,809 214,175,050 474,193,233 139,138,413 328,665,239 ---------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 19 STATEMENTS OF CHANGES IN NET ASSETS
FTVIPT FID VIP FTVIPT FRANK FTVIPT FRANK MUTUAL SHARES GS VIT OVERSEAS, GLOBAL REAL EST, SM CAP VAL, SEC, MID CAP VAL, YEAR ENDED DEC. 31, 2010 (CONTINUED) SERV CL 2 CL 2 CL 2 CL 2 INST OPERATIONS Investment income (loss) -- net $ 299,177 $ 3,328,499 $ (200,932) $ 1,129,939 $ (633,518) Net realized gain (loss) on sales of investments (4,019,024) (24,906,552) 153,545 (4,076,879) (11,010,245) Distributions from capital gains 218,866 -- -- -- -- Net change in unrealized appreciation or depreciation of investments 16,036,759 51,790,396 43,612,692 19,514,108 79,373,700 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 12,535,778 30,212,343 43,565,305 16,567,168 67,729,937 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 2,593,545 3,954,790 4,349,364 5,642,097 3,694,490 Net transfers(1) (13,515,833) (17,455,595) (23,029,258) (14,304,142) (39,657,748) Transfers for policy loans 12,740 124,322 32,148 32,624 65,092 Adjustments to net assets allocated to contracts in payment period (29,400) (11,125) (31,296) (58,086) 9,794 Contract charges (91,819) (143,021) (122,104) (125,821) (338,804) Contract terminations: Surrender benefits (7,472,386) (13,260,482) (13,008,767) (10,968,078) (27,601,482) Death benefits (1,142,475) (1,659,199) (1,657,282) (1,744,577) (2,433,341) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (19,645,628) (28,450,310) (33,467,195) (21,525,983) (66,261,999) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 129,326,025 170,846,851 183,263,851 178,999,272 326,736,273 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $122,216,175 $172,608,884 $193,361,961 $174,040,457 $328,204,211 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 103,180,204 119,954,441 108,898,566 158,712,991 151,389,396 Contract purchase payments 2,359,471 3,418,411 3,308,232 5,355,383 1,660,158 Net transfers(1) (11,059,157) (10,749,661) (12,513,172) (12,195,190) (17,210,223) Transfers for policy loans 13,760 78,396 20,951 28,366 23,777 Contract charges (74,605) (94,998) (68,837) (109,033) (148,648) Contract terminations: Surrender benefits (5,933,364) (8,380,953) (6,939,862) (9,258,412) (12,139,586) Death benefits (947,222) (1,090,751) (877,596) (1,502,387) (1,051,761) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 87,539,087 103,134,885 91,828,282 141,031,718 122,523,113 --------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
GS VIT INVESCO INVESCO INVESCO INVESCO STRUCTD U.S. EQ, VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, YEAR ENDED DEC. 31, 2010 (CONTINUED) INST SER II SER II SER I SER I OPERATIONS Investment income (loss) -- net $ 923,998 $ (324,465) $ (271,253) $ (50,154) $ (104,777) Net realized gain (loss) on sales of investments (8,488,974) (1,284,468) (1,322,578) 332,577 (2,120,877) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 26,062,459 14,862,908 6,384,619 940,250 3,449,780 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 18,497,483 13,253,975 4,790,788 1,222,673 1,224,126 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 2,839,441 1,015,991 648,295 92,229 296,964 Net transfers(1) (18,635,572) (8,606,043) (5,853,993) (850,400) (1,171,264) Transfers for policy loans 20,892 20,595 2,052 1,843 3,954 Adjustments to net assets allocated to contracts in payment period (31,141) (1,503) (3,297) (1,485) (453) Contract charges (380,456) (386,759) (23,043) (6,047) (13,277) Contract terminations: Surrender benefits (13,282,281) (5,774,161) (1,881,971) (477,709) (998,212) Death benefits (1,721,817) (736,202) (191,235) (56,429) (73,363) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (31,190,934) (14,468,082) (7,303,192) (1,297,998) (1,955,651) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 180,207,162 104,160,856 33,383,822 6,407,247 14,737,258 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $167,513,711 $102,946,749 $30,871,418 $ 6,331,922 $14,005,733 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 210,014,586 122,706,172 29,643,956 6,235,581 27,204,564 Contract purchase payments 3,231,517 1,180,712 587,583 84,779 524,590 Net transfers(1) (21,172,134) (9,764,571) (5,028,590) (808,374) (2,177,297) Transfers for policy loans 24,225 22,327 1,485 1,592 6,961 Contract charges (435,235) (455,916) (19,814) (5,539) (23,662) Contract terminations: Surrender benefits (15,044,626) (6,620,864) (1,604,870) (434,998) (1,764,334) Death benefits (1,971,336) (856,734) (165,518) (51,806) (128,363) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 174,646,997 106,211,126 23,414,232 5,021,235 23,642,459 --------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 21 STATEMENTS OF CHANGES IN NET ASSETS
INVESCO INVESCO INVESCO INVESCO VANK VI JANUS ASPEN VI GLOBAL HLTH, VI INTL GRO, VI TECH, COMSTOCK, GLOBAL TECH, YEAR ENDED DEC. 31, 2010 (CONTINUED) SER II SER II SER I SER II SERV OPERATIONS Investment income (loss) -- net $ (205,084) $ (1,225,904) $ (245,517) $ (2,832,395) $ (186,761) Net realized gain (loss) on sales of investments (544,058) (70,577,501) 710,272 (85,503,348) (332,660) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 1,545,624 29,377,162 5,220,907 116,005,067 5,316,370 --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 796,482 (42,426,243) 5,685,662 27,669,324 4,796,949 --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 752,634 31,005,338 390,841 23,164,023 302,473 Net transfers(1) (805,391) (611,558,665) 1,327,937 (446,652,905) 198,841 Transfers for policy loans (3,802) (9,488) 4,406 (12,914) 19,476 Adjustments to net assets allocated to contracts in payment period (75) (2,537) (98) (14,673) (37,863) Contract charges (19,353) (1,428,749) (67,542) (1,536,958) (14,958) Contract terminations: Surrender benefits (1,718,802) (19,238,892) (1,956,748) (22,739,501) (2,232,387) Death benefits (131,638) (3,140,248) (184,291) (4,167,609) (96,542) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,926,427) (604,373,241) (485,495) (451,960,537) (1,860,960) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 23,380,545 767,970,930 28,223,341 681,300,780 21,824,264 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $22,250,600 $ 121,171,446 $33,423,508 $ 257,009,567 $24,760,253 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 22,760,403 668,343,819 37,973,406 700,428,383 47,873,432 Contract purchase payments 724,823 28,158,107 508,376 24,777,403 629,453 Net transfers(1) (856,629) (586,037,604) 1,724,341 (483,154,923) 191,937 Transfers for policy loans (3,725) (9,513) 5,948 (12,662) 40,579 Contract charges (18,994) (1,261,809) (90,218) (1,527,838) (30,987) Contract terminations: Surrender benefits (1,692,350) (16,146,914) (2,468,031) (21,594,106) (4,608,801) Death benefits (128,427) (2,743,677) (242,834) (4,058,125) (209,262) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 20,785,101 90,302,409 37,410,988 214,858,132 43,886,351 ---------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
JANUS ASPEN JANUS ASPEN MFS MFS MFS JANUS, OVERSEAS, INV GRO STOCK, NEW DIS, UTILITIES, YEAR ENDED DEC. 31, 2010 (CONTINUED) SERV SERV SERV CL SERV CL SERV CL OPERATIONS Investment income (loss) -- net $ (5,472,589) $ (498,609) $ (466,580) $ (458,049) $ 4,959,273 Net realized gain (loss) on sales of investments (26,600,945) 7,125,258 169,457 365,755 (3,411,212) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 20,048,186 28,762,482 8,672,651 16,692,409 24,053,603 --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (12,025,348) 35,389,131 8,375,528 16,600,115 25,601,664 --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 61,911,503 1,674,072 1,922,434 639,466 5,997,976 Net transfers(1) (1,388,790,842) (5,134,845) (7,594,137) (2,421,528) (21,099,655) Transfers for policy loans 11,008 (22,913) 24,218 23,657 56,631 Adjustments to net assets allocated to contracts in payment period (1,637) 603 (12,207) 26,732 (16,704) Contract charges (2,969,576) (87,867) (61,672) (43,043) (166,908) Contract terminations: Surrender benefits (25,410,276) (16,064,368) (7,087,953) (4,263,646) (15,206,551) Death benefits (5,219,810) (1,139,295) (718,403) (228,874) (2,114,685) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,360,469,630) (20,774,613) (13,527,720) (6,267,236) (32,549,896) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,454,728,161 160,461,025 88,112,067 52,364,709 236,943,402 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 82,233,183 $175,075,543 $ 82,959,875 $62,697,588 $229,995,170 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,711,480,734 110,780,865 125,304,930 53,216,621 139,628,365 Contract purchase payments 72,359,526 1,048,717 2,301,712 583,167 4,063,093 Net transfers(1) (1,659,453,317) (3,538,549) (11,127,909) (2,450,449) (12,442,535) Transfers for policy loans 11,498 (16,529) 38,228 20,494 32,653 Contract charges (3,458,352) (55,310) (86,184) (39,939) (99,444) Contract terminations: Surrender benefits (29,496,429) (10,091,999) (9,969,037) (3,883,914) (8,485,637) Death benefits (6,130,994) (728,105) (1,038,278) (211,320) (1,237,084) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 85,312,666 97,399,090 105,423,462 47,234,660 121,459,411 ---------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 23 STATEMENTS OF CHANGES IN NET ASSETS
MS UIF MS UIF NB AMT OPPEN GLOBAL OPPEN GLOBAL GLOBAL REAL EST, MID CAP GRO, INTL, SEC VA, STRATEGIC INC VA, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL II CL II CL S SERV SRV OPERATIONS Investment income (loss) -- net $ 12,214,607 $ (454,566) $ 1,211,678 $ 348,819 $ 206,857,947 Net realized gain (loss) on sales of investments (31,468,683) (809,663) (49,798,795) (1,970,323) (28,398,829) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 26,653,423 15,501,356 36,056,941 15,393,418 8,315,814 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 7,399,347 14,237,127 (12,530,176) 13,771,914 186,774,932 ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 10,666,204 1,561,535 13,566,701 3,983,774 93,709,200 Net transfers(1) (199,733,158) 2,032,626 (280,651,447) (3,621,008) (1,769,293,079) Transfers for policy loans 18,079 1,610 3,092 37,112 84,050 Adjustments to net assets allocated to contracts in payment period 98,952 39,676 (2,558) (12,217) (122,240) Contract charges (486,089) (35,397) (635,254) (75,173) (4,247,709) Contract terminations: Surrender benefits (8,063,239) (3,602,225) (5,413,995) (7,194,480) (109,667,300) Death benefits (1,305,538) (384,676) (1,037,108) (1,027,974) (18,038,642) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (198,804,789) (386,851) (274,170,569) (7,909,966) (1,807,575,720) ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 264,521,914 47,117,081 309,505,108 101,815,668 2,606,148,542 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 73,116,472 $60,967,357 $ 22,804,363 $107,677,616 $ 985,347,754 ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 299,590,214 46,533,070 379,110,356 82,308,513 2,168,384,445 Contract purchase payments 11,749,389 1,354,752 16,083,679 3,407,485 77,506,665 Net transfers(1) (231,509,919) 1,472,668 (362,495,084) (3,023,729) (1,437,995,631) Transfers for policy loans 19,644 1,544 3,639 27,707 65,136 Contract charges (538,424) (31,615) (774,923) (59,804) (3,437,237) Contract terminations: Surrender benefits (8,784,942) (3,199,275) (6,758,462) (5,554,341) (84,239,515) Death benefits (1,429,274) (334,285) (1,277,468) (822,618) (14,059,888) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 69,096,688 45,796,859 23,891,737 76,283,213 706,223,975 -----------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
OPPEN MAIN ST SM PIMCO PUT VT PUT VT PUT VT MID CAP VA, VIT ALL ASSET, GLOBAL HLTH CARE, INTL EQ, MULTI-CAP GRO, PERIOD ENDED DEC. 31, 2010 (CONTINUED) SERV ADVISOR CL CL IB CL IB CL IB(2) OPERATIONS Investment income (loss) -- net $ (338,531) $ 25,179,456 $ 264,107 $ 901,242 $ (73,165) Net realized gain (loss) on sales of investments (1,146,683) (25,464,357) 182,748 (1,905,008) 131,971 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 15,920,201 63,240,462 (184,979) 3,509,348 3,915,737 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 14,434,987 62,955,561 261,876 2,505,582 3,974,543 ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 2,154,231 54,499,432 326,136 393,404 145,887 Net transfers(1) (8,020,654) (1,032,754,941) (3,474,771) (4,425,320) 30,465,480 Transfers for policy loans 15,233 (56,196) 15,181 16,746 4,656 Adjustments to net assets allocated to contracts in payment period (9,119) 463,073 (2,774) (2,892) 58,881 Contract charges (53,834) (2,329,161) (22,005) (24,398) (8,809) Contract terminations: Surrender benefits (4,934,990) (32,567,132) (1,542,079) (2,231,231) (1,203,267) Death benefits (548,819) (5,955,807) (197,185) (209,724) (91,564) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (11,397,952) (1,018,700,732) (4,897,497) (6,483,415) 29,371,264 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 73,523,240 1,199,776,049 26,090,705 36,019,319 -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 76,560,275 $ 244,030,878 $21,455,084 $32,041,486 $33,345,807 ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 67,776,886 1,054,508,354 23,152,854 29,797,644 -- Contract purchase payments 1,997,782 46,444,068 291,731 329,022 136,202 Net transfers(1) (6,867,818) (874,047,668) (3,151,720) (3,766,024) 30,510,722 Transfers for policy loans 13,429 (47,702) 13,615 14,033 4,544 Contract charges (46,943) (1,991,500) (19,787) (20,688) (8,263) Contract terminations: Surrender benefits (4,136,684) (27,482,458) (1,374,961) (1,870,409) (1,123,934) Death benefits (486,951) (5,012,444) (177,390) (181,124) (84,948) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 58,249,701 192,370,650 18,734,342 24,302,454 29,434,323 -----------------------------------------------------------------------------------------------------------------------------
(1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. (2) For the period Sept. 24, 2010 (commencement of operations) to Dec. 31, 2010. See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 25 STATEMENTS OF CHANGES IN NET ASSETS
DISC DISC DISC DISC DISC ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, YEAR ENDED DEC. 31, 2010 (CONTINUED) AGGR CONSERV MOD MOD AGGR MOD CONSERV OPERATIONS Investment income (loss) -- net $ (176,471) $ (474,793) $ (857,933) $ (452,133) $ (495,856) Net realized gain (loss) on sales of investments 490,316 1,344,826 1,602,311 1,383,886 1,379,888 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 1,991,573 3,119,575 8,449,883 4,345,829 3,668,566 ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 2,305,418 3,989,608 9,194,261 5,277,582 4,552,598 ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 1,346,425 6,979,844 6,213,264 3,947,114 3,642,624 Net transfers(1) 296,591 13,552,021 19,368,172 2,142,885 7,359,873 Transfers for policy loans (812) 2,553 (35,809) 16,594 (24,874) Adjustments to net assets allocated to contracts in payment period (7,648) (27,936) (338,713) 651,086 57,867 Contract charges (16,509) (31,831) (75,299) (38,598) (36,925) Contract terminations: Surrender benefits (1,094,514) (4,771,961) (7,303,451) (6,064,910) (4,640,100) Death benefits -- (1,076,000) (843,090) (37,277) (662,651) ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions 523,533 14,626,690 16,985,074 616,894 5,695,814 ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 20,064,451 40,526,476 84,706,203 49,629,582 50,887,022 ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $22,893,402 $59,142,774 $110,885,538 $55,524,058 $61,135,434 ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 22,913,891 41,486,407 92,895,008 54,997,404 54,339,773 Contract purchase payments 1,465,285 7,038,131 6,722,091 4,407,296 3,762,028 Net transfers(1) 277,411 13,634,077 20,505,169 1,636,915 7,297,311 Transfers for policy loans (1,222) 2,307 (41,895) 21,869 (27,132) Contract charges (18,651) (31,671) (81,181) (42,726) (38,452) Contract terminations: Surrender benefits (1,241,757) (4,757,457) (7,802,632) (6,725,446) (4,819,203) Death benefits -- (1,070,082) (891,523) (41,680) (689,040) ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 23,394,957 56,301,712 111,305,037 54,253,632 59,825,285 ------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
COL VP COL VP COL VP COL VP COL VP BAL, CASH MGMT, DIV BOND, DIV EQ INC, DYN EQ, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (2,441,168) $ (4,722,075) $ 47,104,232 $ (15,073,879) $ (4,121,591) Net realized gain (loss) on sales of investments (5,085,805) 138,562 247,666,173 (216,916,716) (27,580,475) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 33,411,227 (138,562) (90,148,394) 334,606,719 95,299,948 ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 25,884,254 (4,722,075) 204,622,011 102,616,124 63,597,882 ------------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 3,877,166 52,824,512 155,781,344 92,051,221 7,650,561 Net transfers(1) (21,786,691) (140,400,885) (3,152,563,948) (1,782,832,501) (34,320,107) Transfers for policy loans 196,450 513,820 72,638 257,791 670,981 Adjustments to net assets allocated to contracts in payment period (495,113) (921,627) (2,147,284) (1,127,449) (826,577) Contract charges (216,641) (397,777) (7,273,101) (4,317,914) (937,445) Contract terminations: Surrender benefits (25,479,905) (122,905,777) (164,376,776) (112,200,136) (46,301,770) Death benefits (4,086,392) (11,265,911) (30,654,459) (16,749,166) (5,558,620) ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (47,991,126) (222,553,645) (3,201,161,586) (1,824,918,154) (79,622,977) ------------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 264,040,866 644,738,245 4,158,300,208 2,726,249,812 452,226,794 ------------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $241,933,994 $ 417,462,525 $ 1,161,760,633 $ 1,003,947,782 $436,201,699 ------------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 221,592,312 554,428,142 3,271,423,264 2,438,725,671 566,618,462 Contract purchase payments 3,266,575 48,538,439 130,465,162 94,250,284 9,072,675 Net transfers(1) (19,860,531) (126,357,609) (2,485,027,798) (1,779,312,553) (44,893,588) Transfers for policy loans 141,111 437,927 36,456 176,252 731,110 Contract charges (175,871) (342,914) (5,732,639) (4,016,750) (1,190,210) Contract terminations: Surrender benefits (19,591,011) (105,324,156) (115,164,209) (84,193,146) (52,619,751) Death benefits (3,368,730) (9,866,781) (22,217,725) (13,489,265) (6,665,739) ------------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 182,003,855 361,513,048 773,782,511 652,140,493 471,052,959 ------------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 27 STATEMENTS OF CHANGES IN NET ASSETS
COL VP COL VP COL VP GLOBAL INFLATION COL VP COL VP MID CAP GLOBAL BOND, PROT SEC, HI YIELD BOND, INC OPP, GRO OPP, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ 20,075,004 $ (1,260,467) $ 41,700,948 $ 17,728,359 $ (1,246,267) Net realized gain (loss) on sales of investments 20,651,073 21,180,011 3,220,107 164,666,843 2,471,307 Distributions from capital gains -- 572,150 -- -- -- Net change in unrealized appreciation or depreciation of investments (39,422,100) 21,301,758 17,102,759 (130,417,313) 27,934,463 -------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,303,977 41,793,452 62,023,814 51,977,889 29,159,503 -------------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 52,315,891 72,931,971 7,579,345 64,048,267 3,024,310 Net transfers(1) (1,002,429,736) (1,558,037,035) (44,462,963) (1,415,397,331) (5,478,948) Transfers for policy loans (14,861) (5,675) 52,162 (18,210) 84,608 Adjustments to net assets allocated to contracts in payment period (696,838) (728,876) (961,810) (426,450) (91,426) Contract charges (2,448,961) (3,596,140) (318,445) (3,019,074) (127,522) Contract terminations: Surrender benefits (57,012,085) (48,581,431) (53,474,152) (38,089,233) (13,718,488) Death benefits (9,541,612) (9,844,519) (6,647,730) (7,801,131) (1,406,035) -------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,019,828,202) (1,547,861,705) (98,233,593) (1,400,703,162) (17,713,501) -------------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,428,993,482 1,785,469,297 537,691,390 1,564,362,360 128,718,912 -------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 410,469,257 $ 279,401,044 $501,481,611 $ 215,637,087 $140,164,914 -------------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,026,842,051 1,530,203,463 348,000,332 1,240,487,789 114,747,012 Contract purchase payments 41,899,625 62,545,772 5,207,480 50,732,854 2,609,402 Net transfers(1) (776,324,762) (1,310,531,100) (27,822,516) (1,105,849,134) (4,210,880) Transfers for policy loans (12,432) (5,232) 31,704 (14,235) 84,594 Contract charges (1,814,226) (3,054,873) (197,691) (2,344,188) (108,541) Contract terminations: Surrender benefits (36,368,687) (40,801,552) (32,355,483) (28,571,686) (11,874,336) Death benefits (6,490,548) (8,284,652) (4,065,140) (5,929,445) (1,199,339) -------------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 247,731,021 230,071,826 288,798,686 148,511,955 100,047,912 --------------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
COL VP MID CAP COL VP COL VP COL VP COL VP SELECT VAL OPP, S&P 500, SHORT DURATION, LG CAP GRO, LG CAP VAL, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (1,393,644) $ (1,245,774) $ 369,677 $ (1,243,298) $ (162,472) Net realized gain (loss) on sales of investments (28,787,399) 242,110 695,882 (7,605,381) (111,053) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 52,666,036 19,357,208 6,112,773 30,500,363 3,920,379 --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 22,484,993 18,353,544 7,178,332 21,651,684 3,646,854 --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 6,822,315 3,729,306 13,997,344 3,470,611 371,139 Net transfers(1) (119,178,844) (11,167,535) (6,117,815) (15,018,400) 9,895,575 Transfers for policy loans 29,279 (56,673) 29,793 44,965 6,244 Adjustments to net assets allocated to contracts in payment period (36,853) (92,396) (495,712) (208,833) (5,030) Contract charges (314,702) (114,853) (220,581) (167,249) (15,333) Contract terminations: Surrender benefits (8,658,180) (12,042,263) (34,272,456) (13,261,510) (1,506,946) Death benefits (1,307,954) (1,671,815) (4,701,380) (1,612,657) (103,255) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (122,644,939) (21,416,229) (31,780,807) (26,753,073) 8,642,394 --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 220,335,702 151,756,150 345,898,636 155,167,654 13,058,159 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 120,175,756 $148,693,465 $321,296,161 $150,066,265 $25,347,407 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 218,176,420 181,918,465 275,348,728 263,512,068 13,446,905 Contract purchase payments 6,969,598 4,144,430 12,373,935 5,277,961 369,419 Net transfers(1) (121,260,712) (13,346,913) (5,646,708) (25,515,035) 9,581,519 Transfers for policy loans 26,121 (63,295) 15,179 70,292 5,858 Contract charges (304,658) (134,390) (173,646) (274,323) (14,846) Contract terminations: Surrender benefits (7,799,622) (14,115,420) (26,703,859) (21,449,120) (1,424,318) Death benefits (1,220,831) (1,948,741) (3,679,398) (2,787,130) (102,857) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 94,586,316 156,454,136 251,534,231 218,834,713 21,861,680 ---------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 29 STATEMENTS OF CHANGES IN NET ASSETS
COL VP SELECT COL VP COL VP SM CAP VAL, EMER MKTS OPP, INTL OPP, VP AGGR, VP AGGR, PERIOD ENDED DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 2(2) CL 4(2) OPERATIONS Investment income (loss) -- net $ (511,051) $ 2,714,828 $ 621,265 $ (473,599) $ (9,360,352) Net realized gain (loss) on sales of investments (1,998,889) 17,864,905 (365,512) 109,783 6,107,532 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 16,499,613 24,788,289 16,307,746 15,983,853 255,225,133 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 13,989,673 45,368,022 16,563,499 15,620,037 251,972,313 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,305,083 22,035,548 2,767,047 148,930,242 24,073,001 Net transfers(1) (1,843,250) (259,458,371) (13,348,632) 44,667,837 1,593,345,660 Transfers for policy loans 25,359 140,676 125,931 12,878 (8,242) Adjustments to net assets allocated to contracts in payment period (4,089) (202,785) (181,188) 2,374 (59,262) Contract charges (51,082) (996,325) (122,711) (15,614) (5,992,587) Contract terminations: Surrender benefits (5,487,859) (38,825,134) (18,232,397) (515,452) (39,922,340) Death benefits (512,029) (3,222,646) (1,844,725) -- (2,290,224) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (6,567,867) (280,529,037) (30,836,675) 193,082,265 1,569,146,006 -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 59,042,887 657,160,553 163,378,151 -- -- -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $66,464,693 $ 421,999,538 $149,104,975 $208,702,302 $1,821,118,319 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 43,222,203 361,472,294 153,422,637 -- -- Contract purchase payments 1,079,416 13,947,795 2,590,403 142,913,365 23,688,625 Net transfers(1) (951,431) (174,793,940) (13,698,528) 43,583,589 1,646,541,101 Transfers for policy loans 17,629 70,205 107,202 12,507 (13,497) Contract charges (35,368) (559,285) (114,360) (15,059) (5,859,979) Contract terminations: Surrender benefits (3,682,279) (18,974,167) (16,241,672) (490,414) (38,848,199) Death benefits (366,640) (1,710,951) (1,838,052) -- (2,190,223) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 39,283,530 179,451,951 124,227,630 186,003,988 1,623,317,828 --------------------------------------------------------------------------------------------------------------------------
(1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. (2) For the period May 7, 2010 (commencement of operations) to Dec. 31, 2010. See accompanying notes to financial statements. -------------------------------------------------------------------------------- 30 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
VP DAVIS VP GS VP CONSERV, VP CONSERV, NY VENTURE, MID CAP VAL, VP MOD, PERIOD ENDED DEC. 31, 2010 (CONTINUED) CL 2(2) CL 4(2) CL 3 CL 3 CL 2(2) OPERATIONS Investment income (loss) -- net $ (575,375) $ (8,631,376) $ (5,959,595) $ (111,860) $ (4,458,274) Net realized gain (loss) on sales of investments 237,806 6,895,691 33,452,476 (215,119) 447,967 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 4,999,406 80,730,367 (65,360,617) 2,831,843 94,899,394 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 4,661,837 78,994,682 (37,867,736) 2,504,864 90,889,087 ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 118,278,678 14,899,237 65,308,756 383,210 1,282,267,148 Net transfers(1) 65,621,819 1,402,459,508 (1,449,781,491) (378,263) 371,556,132 Transfers for policy loans 4,471 (42,351) (15,725) (13,681) (219,438) Adjustments to net assets allocated to contracts in payment period (24,789) (2,778,537) (348,902) (1,693) (97,702) Contract charges (34,305) (4,410,305) (3,178,387) (12,802) (101,570) Contract terminations: Surrender benefits (4,114,301) (70,538,238) (25,254,664) (918,006) (10,986,861) Death benefits (299,575) (8,638,360) (5,206,547) (127,645) (313,670) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 179,431,998 1,330,950,954 (1,418,476,960) (1,068,880) 1,642,104,039 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- 1,518,918,654 12,879,055 -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $184,093,835 $1,409,945,636 $ 62,573,958 $14,315,039 $1,732,993,126 ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- -- 1,684,962,624 11,505,750 -- Contract purchase payments 115,700,626 14,732,602 70,650,068 345,791 1,234,514,922 Net transfers(1) 64,827,897 1,416,847,020 (1,655,433,687) (268,000) 360,920,021 Transfers for policy loans 4,158 (41,145) (17,980) (11,870) (212,076) Contract charges (33,551) (4,330,874) (3,453,674) (10,781) (96,982) Contract terminations: Surrender benefits (4,004,712) (69,244,963) (27,691,465) (773,677) (10,470,444) Death benefits (289,990) (8,434,296) (5,782,100) (111,473) (292,201) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 176,204,428 1,349,528,344 63,233,786 10,675,740 1,584,363,240 -----------------------------------------------------------------------------------------------------------------------------
(1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. (2) For the period May 7, 2010 (commencement of operations) to Dec. 31, 2010. See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 31 STATEMENTS OF CHANGES IN NET ASSETS
VP MOD VP MOD VP MOD VP MOD VP MOD, AGGR, AGGR, CONSERV, CONSERV, PERIOD ENDED DEC. 31, 2010 (CONTINUED) CL 4(2) CL 2(2) CL 4(2) CL 2(2) CL 4(2) OPERATIONS Investment income (loss) -- net $ (63,571,414) $ (2,438,058) $ (37,723,573) $ (1,462,630) $ (19,186,173) Net realized gain (loss) on sales of investments 23,317,661 275,747 16,278,452 204,404 10,273,872 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 1,192,820,220 67,979,145 875,782,997 21,991,353 265,643,577 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 1,152,566,467 65,816,834 854,337,876 20,733,127 256,731,276 ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 118,832,595 733,351,874 81,614,864 354,928,997 32,202,254 Net transfers(1) 10,729,013,689 196,176,339 6,427,712,067 149,190,866 3,185,976,031 Transfers for policy loans 154,048 (151,804) (164,046) (109,950) 96,251 Adjustments to net assets allocated to contracts in payment period (4,289,698) 4,752 (882,708) 4,757 (2,303,716) Contract charges (38,048,690) (71,529) (22,839,258) (53,694) (9,885,283) Contract terminations: Surrender benefits (361,840,863) (3,169,495) (170,650,827) (3,864,637) (111,030,052) Death benefits (38,548,074) (428,971) (12,388,631) (733,121) (19,766,969) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 10,405,273,007 925,711,166 6,302,401,461 499,363,218 3,075,288,516 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $11,557,839,474 $991,528,000 $7,156,739,337 $520,096,345 $3,332,019,792 ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- -- -- -- -- Contract purchase payments 116,856,585 704,966,304 80,058,980 344,622,516 31,719,434 Net transfers(1) 10,872,230,136 190,348,839 6,549,756,193 146,114,386 3,216,347,420 Transfers for policy loans 144,671 (142,515) (165,576) (106,446) 94,526 Contract charges (36,962,238) (68,616) (22,200,340) (51,755) (9,630,074) Contract terminations: Surrender benefits (348,263,929) (2,954,110) (164,561,495) (3,721,973) (107,648,550) Death benefits (37,056,404) (403,083) (11,848,551) (700,398) (19,017,908) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 10,566,948,821 891,746,819 6,431,039,211 486,156,330 3,111,864,848 -----------------------------------------------------------------------------------------------------------------------------
(1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. (2) For the period May 7, 2010 (commencement of operations) to Dec. 31, 2010. See accompanying notes to financial statements. -------------------------------------------------------------------------------- 32 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
WF ADV VP PTNRS WF ADV VT VT INDEX SM CAP VAL, WANGER WANGER CORE EQ, ASSET ALLOC, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 3 INTL USA CL 2 CL 2 OPERATIONS Investment income (loss) -- net $ (5,113,382) $ 4,962,327 $ (4,767,576) $ (179,649) $ 338,440 Net realized gain (loss) on sales of investments 35,574,881 6,742,337 (3,736,335) 536,406 (1,446,348) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 61,980,852 62,797,496 99,405,079 5,247,443 5,321,932 --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 92,442,351 74,502,160 90,901,168 5,604,200 4,214,024 --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 42,615,230 30,244,877 22,095,766 2,169,290 475,588 Net transfers(1) (993,833,890) (493,576,175) (373,510,401) 849,936 (5,140,771) Transfers for policy loans 17,475 63,410 25,307 3,119 25,586 Adjustments to net assets allocated to contracts in payment period (337,851) 3,990 (27,352) 2,381 (10,662) Contract charges (2,353,330) (1,435,102) (1,095,318) (26,590) (32,000) Contract terminations: Surrender benefits (26,803,661) (39,928,258) (37,815,524) (2,382,140) (4,257,095) Death benefits (4,586,346) (4,487,853) (4,261,197) (150,789) (505,848) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (985,282,373) (509,115,111) (394,588,719) 465,207 (9,445,202) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,090,105,693 893,101,536 745,595,634 36,686,464 41,323,976 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 197,265,671 $ 458,488,585 $ 441,908,083 $42,755,871 $36,092,798 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 942,972,799 578,943,891 573,989,599 34,062,363 37,522,349 Contract purchase payments 40,000,053 23,853,121 20,039,493 1,979,702 417,558 Net transfers(1) (852,575,011) (379,740,094) (325,388,207) 737,146 (4,615,908) Transfers for policy loans 6,274 28,197 13,570 2,678 22,493 Contract charges (1,917,581) (964,524) (870,006) (24,396) (28,383) Contract terminations: Surrender benefits (18,560,550) (20,123,920) (24,215,563) (2,142,004) (3,742,283) Death benefits (3,501,308) (2,583,105) (2,939,766) (132,452) (449,248) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 106,424,676 199,413,566 240,629,120 34,483,037 29,126,578 ---------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 33 STATEMENTS OF CHANGES IN NET ASSETS
WF ADV VT WF ADV WF ADV VT INTL EQ, VT OPP, SM CAP GRO, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 2 CL 2 CL 2 OPERATIONS Investment income (loss) -- net $ 2,600,409 $ (47,908) $ (783,167) Net realized gain (loss) on sales of investments 40,045,958 (1,092,237) (1,038,727) Distributions from capital gains 10,310,660 -- -- Net change in unrealized appreciation or depreciation of investments (93,468,141) 11,072,855 22,371,647 ---------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (40,511,114) 9,932,710 20,549,753 ---------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 32,648,150 1,087,682 3,397,304 Net transfers(1) (648,685,388) (3,354,743) (1,098,100) Transfers for policy loans 22,893 16,852 13,701 Adjustments to net assets allocated to contracts in payment period 2,057 (11,265) (318) Contract charges (1,480,749) (38,574) (56,205) Contract terminations: Surrender benefits (16,601,414) (3,220,589) (6,837,390) Death benefits (3,169,607) (415,508) (527,357) ---------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (637,264,058) (5,936,145) (5,108,365) ---------------------------------------------------------------------------------------------------------- Net assets at beginning of year 752,301,535 47,588,712 84,640,004 ---------------------------------------------------------------------------------------------------------- Net assets at end of year $ 74,526,363 $51,585,277 $100,081,392 ---------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 775,672,419 38,815,701 72,340,593 Contract purchase payments 36,277,981 895,567 2,718,923 Net transfers(1) (734,009,329) (2,578,641) (1,097,670) Transfers for policy loans 16,133 12,518 11,343 Contract charges (1,538,114) (29,667) (44,723) Contract terminations: Surrender benefits (15,463,537) (2,400,195) (5,360,936) Death benefits (3,210,589) (322,559) (416,445) ---------------------------------------------------------------------------------------------------------- Units outstanding at end of year 57,744,964 34,392,724 68,151,085 ----------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
AB VPS GLOBAL AB VPS AB VPS AC VP AC VP THEMATIC GRO, GRO & INC, INTL VAL, INTL, MID CAP VAL, YEAR ENDED DEC. 31, 2009 CL B CL B CL B CL II CL II OPERATIONS Investment income (loss) -- net $ (111,610) $ 3,258,962 $ (330,619) $ 631,870 $ 5,615,722 Net realized gain (loss) on sales of investments (606,972) (17,421,654) (242,699,107) (2,459,077) (22,441,773) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 5,777,996 35,443,487 444,152,316 16,870,540 63,020,683 ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 5,059,414 21,280,795 201,122,590 15,043,333 46,194,632 ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 985,340 2,972,730 68,004,011 1,015,452 31,224,291 Net transfers(1) 4,746,354 (19,956,545) (386,003,689) (9,026,555) (54,126,313) Transfers for policy loans 46 59,124 77,934 223 (20,398) Adjustments to net assets allocated to contracts in payment period 53,096 (23,047) (32,717) 15,941 7,249 Contract charges (11,822) (113,546) (2,199,705) (48,269) (866,564) Contract terminations: Surrender benefits (526,484) (6,940,999) (30,517,203) (3,190,905) (5,334,037) Death benefits (92,649) (963,351) (5,876,984) (341,344) (1,155,107) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 5,153,881 (24,965,634) (356,548,353) (11,575,457) (30,270,879) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 7,758,324 131,669,325 803,094,964 56,141,876 187,536,301 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $17,971,619 $127,984,486 $ 647,669,201 $ 59,609,752 $203,460,054 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 10,969,877 166,185,303 949,299,324 60,220,944 242,954,980 Contract purchase payments 1,093,975 3,744,311 106,732,637 990,239 36,658,694 Net transfers(1) 5,340,956 (24,569,997) (494,939,271) (9,448,096) (65,255,435) Transfers for policy loans 394 69,876 49,277 2,266 (23,959) Contract charges (13,469) (139,235) (2,841,346) (48,360) (1,064,132) Contract terminations: Surrender benefits (603,842) (8,377,676) (28,054,317) (3,087,308) (6,929,861) Death benefits (99,306) (1,150,330) (6,146,635) (338,800) (1,477,106) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 16,688,585 135,762,252 524,099,669 48,290,885 204,863,181 -------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 35 STATEMENTS OF CHANGES IN NET ASSETS
AC VP AC VP CALVERT COL VP COL VP ULTRA, VAL, VP SRI MARSICO GRO, MARSICO INTL OPP, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL II CL II BAL CL 1 CL 2 OPERATIONS Investment income (loss) -- net $ (163,269) $ 8,631,448 $ 320,555 $ (636,856) $ 677,244 Net realized gain (loss) on sales of investments (2,848,783) (19,470,877) (1,818,282) (15,767,371) (14,807,858) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 9,632,641 43,667,336 7,185,010 356,601,733 35,247,373 --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 6,620,589 32,827,907 5,687,283 340,197,506 21,116,759 --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 720,607 6,117,891 744,727 218,405,347 3,000,510 Net transfers(1) (1,271,973) (14,473,405) (3,426,846) 242,957,334 (10,886,155) Transfers for policy loans (8,173) 54,011 23,552 (76,420) (838) Adjustments to net assets allocated to contracts in payment period 7,763 (143,926) (7,233) (29,425) (49,831) Contract charges (25,200) (172,480) (27,893) (5,946,947) (55,336) Contract terminations: Surrender benefits (1,143,669) (11,559,375) (1,442,336) (37,839,442) (3,064,098) Death benefits (158,628) (2,032,581) (278,791) (7,891,422) (584,529) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,879,273) (22,209,865) (4,414,820) 409,579,025 (11,640,277) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 21,628,589 195,490,501 26,299,083 963,953,201 69,405,070 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $26,369,905 $206,108,543 $27,571,546 $1,713,729,732 $ 78,881,552 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 31,148,264 188,664,402 33,641,067 1,298,130,787 103,623,136 Contract purchase payments 931,345 6,707,931 879,962 268,218,501 3,692,483 Net transfers(1) (1,860,766) (12,927,452) (4,124,819) 330,178,071 (16,624,986) Transfers for policy loans (11,286) 45,904 29,932 (86,524) 425 Contract charges (33,904) (166,706) (33,160) (7,374,951) (73,320) Contract terminations: Surrender benefits (1,516,388) (11,000,983) (1,701,743) (47,732,937) (4,015,015) Death benefits (209,589) (1,944,911) (325,388) (10,006,182) (783,233) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 28,447,676 169,378,185 28,365,851 1,831,326,765 85,819,490 ---------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
CS EV VT FID VIP FID VIP FID VIP COMMODITY FLOATING-RATE CONTRAFUND, GRO & INC, MID CAP, YEAR ENDED DEC. 31, 2009 (CONTINUED) RETURN INC SERV CL 2 SERV CL 2 SERV CL 2 OPERATIONS Investment income (loss) -- net $ 8,116,983 $ 26,328,373 $ 236,884 $ (47,009) $ (4,553,859) Net realized gain (loss) on sales of investments (3,401,625) (7,220,656) (352,979,373) (14,714,291) (108,250,721) Distributions from capital gains -- -- 193,105 -- 4,714,168 Net change in unrealized appreciation or depreciation of investments 8,523,612 198,712,069 584,421,899 51,670,655 419,401,944 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 13,238,970 217,819,786 231,872,515 36,909,355 311,311,532 ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 3,617,445 111,928,449 106,140,699 3,086,539 92,913,877 Net transfers(1) 18,475,133 153,556,412 (531,127,441) (27,411,536) (283,420,845) Transfers for policy loans (8,107) (61,086) (22,265) 71,271 37,346 Adjustments to net assets allocated to contracts in payment period 8,002 (63,434) 39,918 (132,768) (71,901) Contract charges (50,436) (2,851,337) (2,997,515) (158,180) (2,785,054) Contract terminations: Surrender benefits (4,222,306) (24,776,426) (30,319,995) (9,394,187) (40,005,053) Death benefits (502,449) (5,532,118) (6,294,341) (1,564,712) (7,287,776) ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 17,317,282 232,200,460 (464,580,940) (35,503,573) (240,619,406) ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 58,690,964 434,438,748 1,023,889,930 169,597,317 965,638,466 ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 89,247,216 $884,458,994 $ 791,181,505 $171,003,099 $1,036,330,592 ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 78,359,789 581,542,099 1,455,856,516 209,939,118 913,299,589 Contract purchase payments 4,532,105 118,075,823 142,228,951 3,653,759 106,280,016 Net transfers(1) 23,778,039 163,400,576 (703,614,876) (32,533,342) (275,614,062) Transfers for policy loans (9,305) (60,880) (18,849) 85,379 6,153 Contract charges (64,750) (2,988,034) (4,057,295) (185,973) (2,724,953) Contract terminations: Surrender benefits (5,385,713) (25,876,119) (40,363,388) (10,926,787) (29,655,641) Death benefits (657,307) (5,815,707) (8,335,315) (1,850,907) (5,908,768) ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 100,552,858 828,277,758 841,695,744 168,181,247 705,682,334 ----------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 37 STATEMENTS OF CHANGES IN NET ASSETS
FTVIPT FID VIP FTVIPT FRANK FTVIPT FRANK MUTUAL SHARES GS VIT OVERSEAS, GLOBAL REAL EST, SM CAP VAL, SEC, MID CAP VAL, YEAR ENDED DEC. 31, 2009 (CONTINUED) SERV CL 2 CL 2 CL 2 CL 2 INST OPERATIONS Investment income (loss) -- net $ 1,170,655 $ 18,314,781 $ 1,318,826 $ 1,651,716 $ 2,614,480 Net realized gain (loss) on sales of investments (11,144,998) (47,085,443) (11,532,809) (13,995,751) (39,538,799) Distributions from capital gains 384,952 -- 7,642,928 -- -- Net change in unrealized appreciation or depreciation of investments 35,438,317 52,846,215 43,213,432 48,608,825 119,134,008 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 25,848,926 24,075,553 40,642,377 36,264,790 82,209,689 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 3,935,209 5,006,870 5,078,813 5,516,800 4,633,242 Net transfers(1) (18,146,050) (24,975,597) (24,785,989) (21,570,462) (51,657,316) Transfers for policy loans 25,682 122,912 26,890 42,154 82,328 Adjustments to net assets allocated to contracts in payment period 8,343 (58,588) (44,461) (33,530) (5,951) Contract charges (101,749) (146,779) (128,526) (136,511) (345,677) Contract terminations: Surrender benefits (6,379,976) (9,067,317) (9,307,303) (8,734,631) (17,933,706) Death benefits (890,311) (1,526,290) (1,413,171) (1,616,085) (2,429,890) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (21,548,852) (30,644,789) (30,573,747) (26,532,265) (67,656,970) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 125,025,951 177,416,087 173,195,221 169,266,747 312,183,554 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $129,326,025 $170,846,851 $183,263,851 $178,999,272 $326,736,273 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 123,288,887 143,021,012 128,040,351 186,091,220 191,346,086 Contract purchase payments 4,432,989 5,868,465 5,251,877 6,293,726 2,796,870 Net transfers(1) (17,658,085) (19,832,923) (16,940,874) (23,123,861) (30,390,275) Transfers for policy loans 27,857 90,497 14,954 40,737 49,585 Contract charges (99,502) (128,401) (93,668) (143,417) (199,849) Contract terminations: Surrender benefits (5,940,658) (7,778,014) (6,419,428) (8,793,218) (10,798,973) Death benefits (871,284) (1,286,195) (954,646) (1,652,196) (1,414,048) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 103,180,204 119,954,441 108,898,566 158,712,991 151,389,396 --------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
GS VIT INVESCO INVESCO INVESCO INVESCO STRUCTD U.S. EQ, VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, YEAR ENDED DEC. 31, 2009 (CONTINUED) INST SER II SER II SER I SER I OPERATIONS Investment income (loss) -- net $ 1,910,596 $ (552,616) $ (264,934) $ (47,684) $ 316,988 Net realized gain (loss) on sales of investments (18,971,584) (5,572,143) (3,935,081) (89,725) (4,321,938) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 47,711,018 23,330,361 14,524,850 2,086,156 7,376,218 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 30,650,030 17,205,602 10,324,835 1,948,747 3,371,268 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 3,936,669 1,712,109 873,334 131,490 358,052 Net transfers(1) (25,762,079) (8,453,732) (5,093,513) (870,546) 1,343,659 Transfers for policy loans 45,777 10,470 9,686 3,761 10,083 Adjustments to net assets allocated to contracts in payment period (78,646) (8,848) (3,089) (1,197) (372) Contract charges (376,083) (365,768) (25,274) (6,293) (12,573) Contract terminations: Surrender benefits (9,043,125) (4,414,512) (1,522,090) (359,479) (977,788) Death benefits (1,625,734) (696,294) (323,407) (70,748) (110,561) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (32,903,221) (12,216,575) (6,084,353) (1,173,012) 610,500 -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 182,460,353 99,171,829 29,143,340 5,631,512 10,755,490 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $180,207,162 $104,160,856 $33,383,822 $ 6,407,247 $14,737,258 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 255,181,535 139,781,286 36,124,153 7,742,275 25,118,996 Contract purchase payments 5,485,438 2,400,730 1,064,035 161,210 854,920 Net transfers(1) (35,773,647) (12,050,025) (5,583,200) (1,138,661) 3,687,670 Transfers for policy loans 64,695 15,707 10,865 4,496 24,351 Contract charges (506,769) (495,405) (28,009) (7,504) (28,606) Contract terminations: Surrender benefits (12,140,042) (5,995,182) (1,600,041) (439,046) (2,176,049) Death benefits (2,296,624) (950,939) (343,847) (87,189) (276,718) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 210,014,586 122,706,172 29,643,956 6,235,581 27,204,564 --------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 39 STATEMENTS OF CHANGES IN NET ASSETS
INVESCO INVESCO INVESCO INVESCO VANK VI JANUS ASPEN VI GLOBAL HLTH, VI INTL GRO, VI TECH, COMSTOCK, GLOBAL TECH, YEAR ENDED DEC. 31, 2009 (CONTINUED) SER II SER II SER I SER II SERV OPERATIONS Investment income (loss) -- net $ (152,640) $ 3,645,453 $ (174,465) $ 24,217,366 $ (134,539) Net realized gain (loss) on sales of investments (1,489,256) (14,955,850) (540,381) (129,968,322) (1,114,032) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 6,527,759 196,856,943 9,879,261 257,412,229 8,155,612 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 4,885,863 185,546,546 9,164,415 151,661,273 6,907,041 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 927,327 98,838,649 353,513 88,400,293 343,279 Net transfers(1) 1,216,565 45,595,755 4,666,749 (208,655,125) 3,623,220 Transfers for policy loans (7,670) 19,914 7,114 (4,914) 16,649 Adjustments to net assets allocated to contracts in payment period 794 34,271 710 21,376 57,795 Contract charges (17,440) (2,762,858) (60,057) (2,959,949) (14,219) Contract terminations: Surrender benefits (1,032,948) (17,344,547) (1,047,745) (23,461,825) (970,444) Death benefits (155,924) (3,466,091) (221,433) (4,807,594) (136,989) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 930,704 120,915,093 3,698,851 (151,467,738) 2,919,291 -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 17,563,978 461,509,291 15,360,075 681,107,245 11,997,932 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $23,380,545 $767,970,930 $28,223,341 $ 681,300,780 $21,824,264 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 21,603,800 537,766,644 32,200,674 890,311,612 41,021,714 Contract purchase payments 1,038,017 107,607,053 610,358 123,646,333 951,058 Net transfers(1) 1,491,463 46,928,415 7,373,502 (275,116,164) 8,902,632 Transfers for policy loans (7,789) 20,855 11,641 (4,329) 50,689 Contract charges (19,933) (2,920,526) (101,111) (3,850,993) (38,006) Contract terminations: Surrender benefits (1,178,284) (17,432,382) (1,730,886) (28,447,872) (2,655,545) Death benefits (166,871) (3,626,240) (390,772) (6,110,204) (359,110) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 22,760,403 668,343,819 37,973,406 700,428,383 47,873,432 --------------------------------------------------------------------------------------------------------------------------
(1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. -------------------------------------------------------------------------------- 40 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
JANUS ASPEN JANUS ASPEN MFS MFS MFS JANUS, OVERSEAS, INV GRO STOCK, NEW DIS, UTILITIES, YEAR ENDED DEC. 31, 2009 (CONTINUED) SERV SERV SERV CL SERV CL SERV CL OPERATIONS Investment income (loss) -- net $ (5,935,019) $ (582,777) $ (313,065) $ (361,694) $ 8,193,950 Net realized gain (loss) on sales of investments (14,824,138) (2,863,226) (2,237,799) (3,539,235) (14,271,228) Distributions from capital gains -- 3,684,756 -- -- -- Net change in unrealized appreciation or depreciation of investments 366,845,252 71,467,925 25,721,007 24,075,207 64,272,529 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 346,086,095 71,706,678 23,170,143 20,174,278 58,195,251 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 196,595,671 1,967,193 2,505,556 776,346 6,064,675 Net transfers(1) 178,714,104 (7,896,575) 7,068,142 (1,899,757) (26,424,009) Transfers for policy loans (60,390) 32,502 31,583 21,604 (39,871) Adjustments to net assets allocated to contracts in payment period 5,014 (88,708) 30,059 (4,362) (68,956) Contract charges (5,401,166) (84,656) (59,315) (39,955) (173,996) Contract terminations: Surrender benefits (28,551,067) (7,580,842) (4,214,452) (2,600,108) (11,266,280) Death benefits (6,105,534) (825,531) (597,352) (366,061) (2,067,554) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 335,196,632 (14,476,617) 4,764,221 (4,112,293) (33,975,991) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 773,445,434 103,230,964 60,177,703 36,302,724 212,724,142 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,454,728,161 $160,461,025 $ 88,112,067 $52,364,709 $236,943,402 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,226,178,470 126,354,829 119,102,705 59,530,900 163,176,639 Contract purchase payments 277,372,407 1,774,307 3,564,389 1,054,385 4,948,632 Net transfers(1) 263,736,061 (10,087,576) 10,523,749 (3,489,206) (19,250,030) Transfers for policy loans (80,070) 37,772 59,164 36,789 (26,166) Contract charges (7,581,864) (74,989) (101,564) (53,549) (125,895) Contract terminations: Surrender benefits (39,550,723) (6,507,426) (6,827,256) (3,389,355) (7,594,238) Death benefits (8,593,547) (716,052) (1,016,257) (473,343) (1,500,577) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 1,711,480,734 110,780,865 125,304,930 53,216,621 139,628,365 --------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 41 STATEMENTS OF CHANGES IN NET ASSETS
MS UIF MS UIF NB AMT OPPEN GLOBAL OPPEN GLOBAL GLOBAL REAL EST, MID CAP GRO, INTL, SEC VA, STRATEGIC INC VA, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL II CL II CL S SERV SRV OPERATIONS Investment income (loss) -- net $ (2,226,572) $ (326,427) $ 7,091,774 $ 939,588 $ (15,844,599) Net realized gain (loss) on sales of investments (48,786,084) (5,478,921) (15,014,693) (8,128,859) (25,142,736) Distributions from capital gains -- -- -- 1,911,246 1,678,820 Net change in unrealized appreciation or depreciation of investments 135,827,610 21,516,169 84,857,173 33,275,208 409,458,541 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 84,814,954 15,710,821 76,934,254 27,997,183 370,150,026 ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 38,133,834 1,518,824 45,215,574 3,464,049 279,415,438 Net transfers(1) (89,502,242) 2,784,545 (21,702,697) (8,361,153) 4,385,281 Transfers for policy loans 3,311 (13,460) (12,969) (23,149) (87,100) Adjustments to net assets allocated to contracts in payment period (26,215) 29,480 (2,147) 41,166 (352,780) Contract charges (1,088,617) (28,565) (1,286,407) (74,641) (7,485,305) Contract terminations: Surrender benefits (7,394,245) (1,700,521) (6,575,925) (4,512,683) (98,091,702) Death benefits (1,422,698) (303,570) (1,486,159) (941,929) (17,745,503) ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (61,296,872) 2,286,733 14,149,270 (10,408,340) 160,038,329 ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 241,003,832 29,119,527 218,421,584 84,226,825 2,075,960,187 ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 264,521,914 $47,117,081 $309,505,108 $101,815,668 $2,606,148,542 ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 382,715,240 44,919,664 358,115,808 93,205,980 2,013,494,974 Contract purchase payments 56,982,252 1,793,414 64,594,356 3,724,004 263,869,090 Net transfers(1) (125,439,763) 2,386,886 (29,705,511) (9,114,970) 3,026,213 Transfers for policy loans 9,984 (13,941) (15,745) (15,877) (81,761) Contract charges (1,618,018) (35,706) (1,879,693) (75,988) (6,940,735) Contract terminations: Surrender benefits (10,885,602) (2,121,818) (9,790,393) (4,437,523) (88,670,241) Death benefits (2,173,879) (395,429) (2,208,466) (977,113) (16,313,095) ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 299,590,214 46,533,070 379,110,356 82,308,513 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. -------------------------------------------------------------------------------- 42 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
OPPEN MAIN ST PIMCO PUT VT PUT VT DISC SM MID CAP VA, VIT ALL ASSET, GLOBAL HLTH CARE, INTL EQ, ASSET ALLOC, YEAR ENDED DEC. 31, 2009 (CONTINUED) SERV ADVISOR CL CL IB CL IB AGGR OPERATIONS Investment income (loss) -- net $ (161,775) $ 64,770,819 $ 2,676,827 $ (291,880) $ (118,653) Net realized gain (loss) on sales of investments (6,300,307) (48,899,357) (478,407) (4,372,849) 9,181 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 26,119,350 186,231,108 3,326,109 11,638,232 3,541,173 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 19,657,268 202,102,570 5,524,529 6,973,503 3,431,701 ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 2,480,270 182,656,126 447,886 593,132 1,277,682 Net transfers(1) (6,749,153) (172,168,472) (3,236,550) (6,346,826) 7,374,049 Transfers for policy loans 22,394 (122,776) 15,006 17,397 5,531 Adjustments to net assets allocated to contracts in payment period (15,440) 102,936 (6,585) (2,592) 97,566 Contract charges (53,276) (4,992,541) (26,145) (29,376) (11,832) Contract terminations: Surrender benefits (3,102,442) (32,295,549) (1,551,571) (2,034,844) (451,051) Death benefits (484,434) (7,588,359) (167,492) (288,030) -- ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (7,902,081) (34,408,635) (4,525,451) (8,091,139) 8,291,945 ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 61,768,053 1,032,082,114 25,091,627 37,136,955 8,340,805 ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $73,523,240 $1,199,776,049 $26,090,705 $36,019,319 $20,064,451 ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 76,585,330 1,091,785,066 27,807,296 37,946,874 11,766,349 Contract purchase payments 3,143,605 179,579,273 465,345 594,496 1,694,750 Net transfers(1) (7,958,487) (172,489,339) (3,346,971) (6,418,134) 10,041,638 Transfers for policy loans 31,188 (114,380) 15,540 17,846 7,195 Contract charges (61,081) (4,917,370) (27,213) (29,308) (15,427) Contract terminations: Surrender benefits (3,406,621) (31,789,893) (1,586,653) (2,021,287) (580,614) Death benefits (557,048) (7,545,003) (174,490) (292,843) -- ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 67,776,886 1,054,508,354 23,152,854 29,797,644 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. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 43 STATEMENTS OF CHANGES IN NET ASSETS
DISC DISC DISC DISC COL VP ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, BAL, 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) $ (2,476,443) Net realized gain (loss) on sales of investments 280,321 (891,754) (353,096) (74,984) (22,286,944) 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 80,267,710 ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 4,878,484 11,268,465 8,569,585 6,577,163 55,504,323 ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 3,648,730 6,280,973 3,003,388 3,060,903 4,425,409 Net transfers(1) 14,149,239 33,850,556 14,897,998 23,043,759 38,598,572 Transfers for policy loans 1,887 (72,056) 24,155 (6,326) 161,614 Adjustments to net assets allocated to contracts in payment period 97,460 (26,476) 329,293 (818) (678,459) Contract charges (21,462) (46,451) (30,608) (22,762) (245,710) Contract terminations: Surrender benefits (3,305,645) (3,742,953) (1,623,616) (1,760,464) (23,786,790) Death benefits (280,018) (579,914) (1,146) (82,003) (4,283,391) ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions 14,290,191 35,663,679 16,599,464 24,232,289 14,191,245 ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 21,357,801 37,774,059 24,460,533 20,077,570 194,345,298 ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $40,526,476 $84,706,203 $49,629,582 $50,887,022 $264,040,866 ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 25,426,346 49,366,147 33,063,290 25,257,929 189,680,215 Contract purchase payments 4,022,471 7,745,946 3,847,358 3,597,553 4,384,134 Net transfers(1) 16,118,249 41,233,188 20,119,570 27,698,214 52,019,449 Transfers for policy loans 2,525 (88,205) 30,461 (7,908) 122,053 Contract charges (23,987) (57,143) (39,247) (26,753) (234,261) Contract terminations: Surrender benefits (3,758,213) (4,565,238) (2,022,705) (2,081,766) (20,280,031) Death benefits (300,984) (739,687) (1,323) (97,496) (4,099,247) ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 41,486,407 92,895,008 54,997,404 54,339,773 221,592,312 ------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
COL VP COL VP COL VP COL VP COL VP CASH MGMT, DIV BOND, DIV EQ INC, DYN EQ, GLOBAL BOND, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (8,203,776) $ 122,524,341 $ (20,498,525) $ (4,081,507) $ 11,319,841 Net realized gain (loss) on sales of investments 160,083 (9,698,518) (76,257,543) (64,947,390) (2,317,714) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 863,327 347,434,702 689,203,430 153,856,250 115,381,226 ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations (7,180,366) 460,260,525 592,447,362 84,827,353 124,383,353 ------------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 111,309,005 534,815,810 268,448,843 10,366,692 176,249,965 Net transfers(1) (585,789,438) 91,396,565 105,137,049 (44,031,005) (17,016,350) Transfers for policy loans 126,432 (19,836) 341,739 1,064,518 (14,902) Adjustments to net assets allocated to contracts in payment period (381,892) (939,678) (17,368) (926,944) (396,021) Contract charges (685,096) (14,239,960) (7,595,119) (974,361) (4,804,027) Contract terminations: Surrender benefits (171,471,117) (172,084,203) (100,624,477) (41,286,507) (57,605,911) Death benefits (16,337,378) (36,430,179) (16,696,537) (4,793,771) (11,474,401) ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (663,229,484) 402,498,519 248,994,130 (80,581,378) 84,938,353 ------------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 1,315,148,095 3,295,541,164 1,884,808,320 447,980,819 1,219,671,776 ------------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $ 644,738,245 $4,158,300,208 $2,726,249,812 $452,226,794 $1,428,993,482 ------------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,121,064,760 2,911,692,108 2,062,785,467 685,480,996 950,254,996 Contract purchase payments 102,188,492 488,736,740 351,804,290 15,592,874 151,307,717 Net transfers(1) (508,068,806) 47,459,400 144,288,091 (72,271,312) (22,522,635) Transfers for policy loans 73,217 (40,839) 287,067 1,534,351 (18,817) Contract charges (585,059) (12,341,133) (8,971,881) (1,502,258) (3,847,201) Contract terminations: Surrender benefits (146,217,563) (134,265,003) (94,456,321) (55,051,454) (39,832,521) Death benefits (14,026,899) (29,818,009) (17,011,042) (7,164,735) (8,499,488) ------------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 554,428,142 3,271,423,264 2,438,725,671 566,618,462 1,026,842,051 ------------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 45 STATEMENTS OF CHANGES IN NET ASSETS
COL VP COL VP COL VP GLOBAL INFLATION COL VP COL VP MID CAP MID CAP PROT SEC, HI YIELD BOND, INC OPP, GRO OPP, VAL OPP, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ 92,468,706 $ 44,414,766 $ 38,081,740 $ (1,003,663) $ (1,960,228) Net realized gain (loss) on sales of investments (507,521) (10,591,362) (4,874,738) (5,036,427) (64,133,732) Distributions from capital gains 51,598 -- -- -- -- Net change in unrealized appreciation or depreciation of investments (19,359,768) 163,884,654 289,109,296 52,849,944 133,998,190 ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 72,653,015 197,708,058 322,316,298 46,809,854 67,904,230 ------------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 193,823,411 11,581,660 180,961,005 3,489,270 24,105,329 Net transfers(1) 847,698,096 (6,607,633) 529,372,071 11,368,054 (89,329,966) Transfers for policy loans (36,371) 69,739 (65,936) 143,783 3,025 Adjustments to net assets allocated to contracts in payment period (178,250) (336,873) (64,478) (71,305) (14,037) Contract charges (5,122,580) (323,535) (4,758,862) (122,117) (709,168) Contract terminations: Surrender benefits (42,222,133) (39,757,216) (32,310,069) (10,412,358) (7,355,476) Death benefits (8,569,293) (7,041,964) (7,025,166) (1,141,397) (1,549,854) ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions 985,392,880 (42,415,822) 666,108,565 3,253,930 (74,850,147) ------------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 727,423,402 382,399,154 575,937,497 78,655,128 227,281,619 ------------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $1,785,469,297 $537,691,390 $1,564,362,360 $128,718,912 $ 220,335,702 ------------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 658,300,417 373,276,720 643,014,466 114,373,202 315,807,987 Contract purchase payments 171,729,059 9,922,731 165,997,714 3,907,246 34,543,046 Net transfers(1) 749,263,374 294,262 470,367,351 10,219,597 (120,351,036) Transfers for policy loans (31,663) 53,153 (55,406) 177,587 4,123 Contract charges (4,505,352) (253,972) (4,285,341) (141,800) (954,714) Contract terminations: Surrender benefits (37,000,549) (29,900,721) (28,252,815) (12,535,428) (8,952,766) Death benefits (7,551,823) (5,391,841) (6,298,180) (1,253,392) (1,920,220) ------------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 1,530,203,463 348,000,332 1,240,487,789 114,747,012 218,176,420 ------------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
COL VP COL VP COL VP COL VP SELECT COL VP SELECT S&P 500, SHORT DURATION, LG CAP GRO, LG CAP VAL, SM CAP VAL, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (1,173,407) $ 7,939,939 $ (1,198,578) $ (89,110) $ (437,572) Net realized gain (loss) on sales of investments (6,551,127) (1,740,945) (21,611,834) (1,257,218) (8,275,155) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 38,794,603 9,874,729 65,311,646 3,727,958 25,589,634 --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 31,070,069 16,073,723 42,501,234 2,381,630 16,876,907 --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 4,596,308 19,730,459 3,564,331 507,432 1,423,261 Net transfers(1) (7,822,475) (28,023,624) (22,322,492) 2,067,361 (6,625,317) Transfers for policy loans 60,596 83,520 152,928 3,215 30,831 Adjustments to net assets allocated to contracts in payment period (76,014) (78,935) (46,491) (1,401) (44,034) Contract charges (115,835) (246,445) (177,091) (9,772) (50,336) Contract terminations: Surrender benefits (8,336,902) (26,975,888) (8,258,876) (634,568) (3,600,435) Death benefits (1,300,040) (6,603,441) (1,347,845) (187,841) (409,376) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (12,994,362) (42,114,354) (28,435,536) 1,744,426 (9,275,406) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 133,680,443 371,939,267 141,101,956 8,932,103 51,441,386 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $151,756,150 $345,898,636 $155,167,654 $13,058,159 $59,042,887 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 200,311,464 306,947,929 326,510,210 11,453,724 51,553,089 Contract purchase payments 6,313,633 18,063,103 7,045,275 635,452 1,502,844 Net transfers(1) (11,215,349) (22,360,068) (50,732,792) 2,351,549 (6,212,974) Transfers for policy loans 89,059 63,422 344,761 3,862 30,943 Contract charges (166,958) (199,480) (361,596) (11,992) (46,973) Contract terminations: Surrender benefits (11,534,448) (21,858,805) (16,484,485) (753,533) (3,238,713) Death benefits (1,878,936) (5,307,373) (2,809,305) (232,157) (366,013) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 181,918,465 275,348,728 263,512,068 13,446,905 43,222,203 ---------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 47 STATEMENTS OF CHANGES IN NET ASSETS
COL VP COL VP VP DAVIS VP GS VP PTNRS EMER MKTS OPP, INTL OPP, NY VENTURE, MID CAP VAL, SM CAP VAL, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (3,359,555) $ 778,289 $ (9,602,379) $ (98,184) $ (8,045,658) Net realized gain (loss) on sales of investments (81,651,677) (10,172,733) (14,830,928) (1,584,932) (21,445,555) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 405,264,252 43,374,939 365,129,530 5,098,851 315,695,353 --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 320,253,020 33,980,495 340,696,223 3,415,735 286,204,140 --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 65,761,712 3,874,703 193,811,413 413,786 141,097,176 Net transfers(1) (210,383,860) (10,566,665) 387,884,579 (1,378,025) (52,221,515) Transfers for policy loans 139,408 162,858 (57,059) 4,915 9,993 Adjustments to net assets allocated to contracts in payment period 258,893 106,358 (167,583) (1,367) (140,262) Contract charges (2,052,532) (141,633) (5,252,706) (12,841) (4,130,032) Contract terminations: Surrender benefits (31,908,000) (18,858,255) (27,276,922) (614,869) (26,888,122) Death benefits (3,536,131) (1,764,975) (5,579,903) (109,630) (5,409,223) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (181,720,510) (27,187,609) 543,361,819 (1,698,031) 52,318,015 --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 518,628,043 156,585,265 634,860,612 11,161,351 751,583,538 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 657,160,553 $163,378,151 $1,518,918,654 $12,879,055 $1,090,105,693 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 506,028,130 184,146,213 917,373,476 13,412,863 856,113,697 Contract purchase payments 61,956,469 4,452,625 254,298,809 463,931 178,338,447 Net transfers(1) (180,497,217) (13,821,962) 563,251,468 (1,546,125) (56,014,627) Transfers for policy loans 101,166 177,541 (69,745) 5,412 (588) Contract charges (1,725,283) (158,431) (6,876,184) (14,372) (4,624,791) Contract terminations: Surrender benefits (21,711,111) (19,338,655) (35,608,041) (690,992) (25,260,483) Death benefits (2,679,860) (2,034,694) (7,407,159) (124,967) (5,578,856) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 361,472,294 153,422,637 1,684,962,624 11,505,750 942,972,799 ---------------------------------------------------------------------------------------------------------------------------
(1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. -------------------------------------------------------------------------------- 48 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
WF ADV WF ADV VT VT INDEX WF ADV VT WANGER WANGER CORE EQ, ASSET ALLOC, INTL EQ, YEAR ENDED DEC. 31, 2009 (CONTINUED) INTL USA CL 2 CL2 CL 2 OPERATIONS Investment income (loss) -- net $ 19,144,839 $ (5,504,013) $ 72,952 $ 473,361 $ (1,795,392) Net realized gain (loss) on sales of investments (21,025,205) (26,896,105) (784,664) (4,682,373) 4,093,136 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 276,679,585 255,617,339 8,956,333 9,125,744 127,731,038 ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 274,799,219 223,217,221 8,244,621 4,916,732 130,028,782 ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 72,372,025 56,565,889 2,293,434 626,419 67,703,389 Net transfers(1) 34,461,137 (51,552,364) 6,506,963 (8,523,514) 533,788,776 Transfers for policy loans 23,027 54,005 (1,987) 7,346 488 Adjustments to net assets allocated to contracts in payment period 10,030 (156,771) 71,606 (8,813) 109,568 Contract charges (2,116,439) (1,695,123) (19,657) (36,115) (1,658,931) Contract terminations: Surrender benefits (28,516,988) (27,017,021) (1,045,949) (2,990,837) (12,051,111) Death benefits (4,014,030) (4,095,804) (390,400) (609,771) (1,949,339) ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions 72,218,762 (27,897,189) 7,414,010 (11,535,285) 585,942,840 ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 546,083,555 550,275,602 21,027,833 47,942,529 36,329,913 ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $893,101,536 $745,595,634 $36,686,464 $ 41,323,976 $752,301,535 ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 486,121,150 572,582,227 26,240,985 49,869,060 36,965,891 Contract purchase payments 74,568,276 71,497,300 2,491,225 656,607 81,505,259 Net transfers(1) 42,293,517 (40,870,469) 6,937,462 (9,224,322) 673,475,027 Transfers for policy loans 12,421 45,414 (1,694) 6,475 (3,462) Contract charges (1,885,022) (1,871,502) (21,937) (38,318) (1,874,171) Contract terminations: Surrender benefits (19,082,502) (23,544,045) (1,147,721) (3,076,115) (12,314,599) Death benefits (3,083,949) (3,849,326) (435,957) (671,038) (2,081,526) ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 578,943,891 573,989,599 34,062,363 37,522,349 775,672,419 ------------------------------------------------------------------------------------------------------------------------
(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 - 2010 ANNUAL REPORT 49 STATEMENTS OF CHANGES IN NET ASSETS
WF ADV VT WF ADV VT OPP, SM CAP GRO, YEAR ENDED DEC. 31, 2009 (CONTINUED) CL 2 CL 2 OPERATIONS Investment income (loss) -- net $ (360,099) $ (571,333) Net realized gain (loss) on sales of investments (5,275,363) (5,412,622) Distributions from capital gains -- -- Net change in unrealized appreciation or depreciation of investments 21,395,093 32,780,362 ------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 15,759,631 26,796,407 ------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 1,471,978 3,182,460 Net transfers(1) (5,285,110) 7,750,193 Transfers for policy loans 15,174 (2,583) Adjustments to net assets allocated to contracts in payment period (1,723) 34,230 Contract charges (38,689) (45,747) Contract terminations: Surrender benefits (2,264,374) (3,115,446) Death benefits (347,323) (627,875) ------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (6,450,067) 7,175,232 ------------------------------------------------------------------------------------------------- Net assets at beginning of year 38,279,148 50,668,365 ------------------------------------------------------------------------------------------------- Net assets at end of year $47,588,712 $84,640,004 ------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 45,513,898 65,402,599 Contract purchase payments 1,601,807 3,408,574 Net transfers(1) (5,659,705) 7,559,651 Transfers for policy loans 15,613 (3,746) Contract charges (39,188) (49,793) Contract terminations: Surrender benefits (2,259,191) (3,323,571) Death benefits (357,533) (653,121) ------------------------------------------------------------------------------------------------- Units outstanding at end of year 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. -------------------------------------------------------------------------------- 50 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 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 ------------------------------------------------------------------------------------------------- AB VPS Global Thematic Gro, Cl B AllianceBernstein VPS Global Thematic Growth 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) 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 VP SRI Bal Calvert Variable Series, Inc. VP SRI Balanced Portfolio (previously Calvert Variable Series, Inc. VP SRI Social Balanced Portfolio) Col VP Marsico Gro, Cl 1 Columbia Variable Portfolio - Marsico Growth Fund, Class 1 (previously Columbia Marsico Growth Fund, Variable Series, Class A) Col VP Marsico Intl Opp, Cl 2 Columbia Variable Portfolio - Marsico International Opportunities Fund, Class 2 (previously 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 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 Invesco VI Cap Appr, Ser II Invesco V.I. Capital Appreciation Fund, Series II Shares Invesco VI Cap Dev, Ser II Invesco V.I. Capital Development Fund, Series II Shares Invesco VI Dyn, Ser I Invesco V.I. Dynamics Fund, Series I Shares(1) Invesco VI Fin Serv, Ser I Invesco V.I. Financial Services Fund, Series I Shares(2) Invesco VI Global Hlth, Ser II Invesco V.I. Global Health Care Fund, Series II Shares Invesco VI Intl Gro, Ser II Invesco V.I. International Growth Fund, Series II Shares Invesco VI Tech, Ser I Invesco V.I. Technology Fund, Series I Shares Invesco VanK VI Comstock, Ser Invesco Van Kampen V.I. Comstock Fund, Series II Shares II (previously Van Kampen Life Investment Trust Comstock Portfolio, Class II 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 MS UIF Global Real Est, Cl II Morgan Stanley UIF Global Real Estate Portfolio, Class II Shares (previously Van Kampen's UIF Global Real Estate Portfolio, Class II Shares) MS UIF Mid Cap Gro, Cl II Morgan Stanley UIF Mid Cap Growth Portfolio, Class II Shares (previously Van Kampen's UIF Mid Cap Growth Portfolio, Class II Shares) 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 Global Strategic Inc VA, Srv Oppenheimer Global Strategic Income Fund/VA, Service Shares Oppen Main St Sm Mid Cap VA, Oppenheimer Main Street Small- & Mid-Cap Fund(R)/VA, Service Serv Shares (previously Oppenheimer Main Street Small Cap Fund/VA, Service Shares) PIMCO VIT All Asset, Advisor Cl PIMCO VIT All Asset Portfolio, Advisor Share Class
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 51
DIVISION FUND ------------------------------------------------------------------------------------------------- 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 Multi-Cap Gro, Cl IB Putnam VT Multi-Cap Growth Fund - Class IB Shares(3) Disc Asset Alloc, Aggr Disciplined Asset Allocation Portfolios - Aggressive(4) Disc Asset Alloc, Conserv Disciplined Asset Allocation Portfolios - Conservative(5) Disc Asset Alloc, Mod Disciplined Asset Allocation Portfolios - Moderate(6) Disc Asset Alloc, Mod Aggr Disciplined Asset Allocation Portfolios - Moderately Aggressive(7) Disc Asset Alloc, Mod Conserv Disciplined Asset Allocation Portfolios - Moderately Conservative(8) Col VP Bal, Cl 3 Columbia Variable Portfolio - Balanced Fund (Class 3) (previously RVST RiverSource Variable Portfolio - Balanced Fund (Class 3)) Col VP Cash Mgmt, Cl 3 Columbia Variable Portfolio - Cash Management Fund (Class 3) (previously RVST RiverSource Variable Portfolio - Cash Management Fund (Class 3)) Col VP Div Bond, Cl 3 Columbia Variable Portfolio - Diversified Bond Fund (Class 3) (previously RVST RiverSource Variable Portfolio - Diversified Bond Fund (Class 3)) Col VP Div Eq Inc, Cl 3 Columbia Variable Portfolio - Diversified Equity Income Fund (Class 3) (previously RVST RiverSource Variable Portfolio - Diversified Equity Income Fund (Class 3)) Col VP Dyn Eq, Cl 3 Columbia Variable Portfolio - Dynamic Equity Fund (Class 3) (previously RVST RiverSource Variable Portfolio - Dynamic Equity Fund (Class 3)) Col VP Global Bond, Cl 3 Columbia Variable Portfolio - Global Bond Fund (Class 3) (previously RVST RiverSource Variable Portfolio - Global Bond Fund (Class 3)) Col VP Global Inflation Prot Columbia Variable Portfolio - Global Inflation Protected Sec, Cl 3 Securities Fund (Class 3) (previously RVST RiverSource Variable Portfolio - Global Inflation Protected Securities Fund (Class 3)) Col VP Hi Yield Bond, Cl 3 Columbia Variable Portfolio - High Yield Bond Fund (Class 3) (previously RVST RiverSource Variable Portfolio - High Yield Bond Fund (Class 3)) Col VP Inc Opp, Cl 3 Columbia Variable Portfolio - Income Opportunities Fund (Class 3) (previously RVST RiverSource Variable Portfolio - Income Opportunities Fund (Class 3)) Col VP Mid Cap Gro Opp, Cl 3 Columbia Variable Portfolio - Mid Cap Growth Opportunity Fund (Class 3) (previously RVST RiverSource Variable Portfolio - Mid Cap Growth Fund (Class 3)) Col VP Mid Cap Val Opp, Cl 3 Columbia Variable Portfolio - Mid Cap Value Opportunity Fund (Class 3) (previously RVST RiverSource Variable Portfolio - Mid Cap Value Fund (Class 3)) Col VP S&P 500, Cl 3 Columbia Variable Portfolio - S&P 500 Index Fund (Class 3) (previously RVST RiverSource Variable Portfolio - S&P 500 Index Fund (Class 3)) Col VP Short Duration, Cl 3 Columbia Variable Portfolio - Short Duration U.S. Government Fund (Class 3) (previously RVST RiverSource Variable Portfolio - Short Duration U.S. Government Fund (Class 3)) Col VP Lg Cap Gro, Cl 3 Columbia Variable Portfolio - Large Cap Growth Fund (Class 3) (previously RVST Seligman Variable Portfolio - Growth Fund (Class 3)) Col VP Select Lg Cap Val, Cl 3 Columbia Variable Portfolio - Select Large-Cap Value Fund (Class 3) (previously RVST Seligman Variable Portfolio - Larger-Cap Value Fund (Class 3)) Col VP Select Sm Cap Val, Cl 3 Columbia Variable Portfolio - Select Smaller-Cap Value Fund (Class 3) (previously RVST Seligman Variable Portfolio - Smaller-Cap Value Fund (Class 3)) Col VP Emer Mkts Opp, Cl 3 Columbia Variable Portfolio - Emerging Markets Opportunity Fund (Class 3) (previously RVST Threadneedle Variable Portfolio - Emerging Markets Fund (Class 3)) Col VP Intl Opp, Cl 3 Columbia Variable Portfolio - International Opportunity Fund (Class 3) (previously RVST Threadneedle Variable Portfolio - International Opportunity Fund (Class 3)) VP Aggr, Cl 2 Variable Portfolio - Aggressive Portfolio (Class 2)(4) VP Aggr, Cl 4 Variable Portfolio - Aggressive Portfolio (Class 4) VP Conserv, Cl 2 Variable Portfolio - Conservative Portfolio (Class 2)(5) VP Conserv, Cl 4 Variable Portfolio - Conservative Portfolio (Class 4) VP Davis NY Venture, Cl 3 Variable Portfolio - Davis New York Venture Fund (Class 3) VP GS Mid Cap Val, Cl 3 Variable Portfolio - Goldman Sachs Mid Cap Value Fund (Class 3) VP Mod, Cl 2 Variable Portfolio - Moderate Portfolio (Class 2)(6) VP Mod, Cl 4 Variable Portfolio - Moderate Portfolio (Class 4) VP Mod Aggr, Cl 2 Variable Portfolio - Moderately Aggressive Portfolio (Class 2)(7) VP Mod Aggr, Cl 4 Variable Portfolio - Moderately Aggressive Portfolio (Class 4) VP Mod Conserv, Cl 2 Variable Portfolio - Moderately Conservative Portfolio (Class 2)(8) VP Mod Conserv, Cl 4 Variable Portfolio - Moderately Conservative Portfolio (Class 4) VP Ptnrs Sm Cap Val, Cl 3 Variable Portfolio - Partners Small Cap Value Fund (Class 3) Wanger Intl Wanger International Wanger USA Wanger USA WF Adv VT Core Eq, Cl 2 Wells Fargo Advantage VT Core Equity Fund - Class 2 (previously Evergreen VA Fundamental Large Cap Fund - Class 2) WF Adv VT Index Asset Alloc, Cl 2 Wells Fargo Advantage VT Index Asset Allocation Fund - Class 2 WF Adv VT Intl Eq, Cl 2 Wells Fargo Advantage VT International Equity Fund - Class 2(9) WF Adv VT Opp, Cl 2 Wells Fargo Advantage VT Opportunity Fund - Class 2 WF Adv VT Sm Cap Gro, Cl 2 Wells Fargo Advantage VT Small Cap Growth Fund - Class 2 -------------------------------------------------------------------------------------------------
(1) Invesco V.I. Dynamics Fund, Series I Shares is scheduled to be merged into Invesco V.I. Capital Development Fund, Series I Shares on April 29, 2011. -------------------------------------------------------------------------------- 52 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT (2) Invesco V.I. Financial Services Fund, Series I Shares is scheduled to be merged into Invesco V.I. Dividend Growth Fund, Series I Shares on April 29, 2011. (3) Putnam VT Vista Fund - Class IB Shares merged into Putnam VT Multi-Cap Growth Fund - Class IB Shares on Sept. 24, 2010. (4) Disciplined Asset Allocation Portfolios - Aggressive is scheduled to be merged into Variable Portfolio - Aggressive Portfolio (Class 2) on April 29, 2011. (5) Disciplined Asset Allocation Portfolios - Conservative is scheduled to be merged into Variable Portfolio - Conservative Portfolio (Class 2) on April 29, 2011. (6) Disciplined Asset Allocation Portfolios - Moderate is scheduled to be merged into Variable Portfolio - Moderate Portfolio (Class 2) on April 29, 2011. (7) Disciplined Asset Allocation Portfolios - Moderately Aggressive is scheduled to be merged into Variable Portfolio - Moderately Aggressive Portfolio (Class 2) on April 29, 2011. (8) Disciplined Asset Allocation Portfolios - Moderately Conservative is scheduled to be merged into Variable Portfolio - Moderately Conservative Portfolio (Class 2) on April 29, 2011. (9) Evergreen VA International Equity Fund - Class 2 merged into Wells Fargo Advantage VT International Core Fund on July 16, 2010. In addition, Wells Fargo Advantage VT International Core Fund changed its name to Wells Fargo Advantage VT International Equity Fund - Class 2. The historical financial information for Evergreen VA International Equity Fund - Class 2 was retained from the inception date to the date of the merger. 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. 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. There were no transfers between levels as of Dec. 31, 2010. 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 -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 53 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 you contract during the accumulation phase. 6. RELATED PARTY TRANSACTIONS RiverSource Life is a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). On May 1, 2010, Ameriprise Financial announced the closing of its acquisition of the long-term asset management business of Columbia Management Group, LLC and certain of its affiliated companies from Bank of America (the Columbia Transaction). In connection with the Columbia Transaction, effective May 1, 2010, certain Fund's investment manager, RiverSource Investments, LLC, a wholly owned subsidiary of Ameriprise Financial, changed its name to Columbia Management Investment Advisers, LLC. Certain divisions invest in Funds managed by Columbia Management Investment Advisers, LLC and Columbia Wanger Asset Management, LLC, both affiliates of Ameriprise Financial. The following table reflects fees paid by certain funds to Ameriprise Financial and its affiliates. Additional details about these asset based charges can be found in the respective Fund's Annual Report.
FEE AGREEMENT: FEES PAID TO: --------------------------------------------------------------------------------------------------------------------- Investment Management Services Agreement Columbia Management Investment Advisers, LLC --------------------------------------------------------------------------------------------------------------------- Administrative Services Agreement Ameriprise Financial --------------------------------------------------------------------------------------------------------------------- Transfer Agency and Servicing Agreement Columbia Management Investment Services Corp. (previously RiverSource Service Corporation) --------------------------------------------------------------------------------------------------------------------- Plan and Agreement of Distribution Pursuant to Rule 12b-1 Columbia Management Investment Distributors, Inc. (previously RiverSource Distributors, Inc.) ---------------------------------------------------------------------------------------------------------------------
During the second quarter of 2010, assets of policyholders participating in the Portfolio Navigator program were reallocated to affiliated fund of funds investment options that corresponded to their model portfolio, pursuant to their consent. This reallocation in part resulted in a movement of assets from non- affiliated funds and RiverSource Life's general account to affiliated funds. -------------------------------------------------------------------------------- 54 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 7. INVESTMENT TRANSACTIONS The divisions' purchases of Funds' shares, including reinvestment of dividend distributions, for the year ended Dec. 31, 2010 were as follows: ----
DIVISION PURCHASES ----------------------------------------------------------- AB VPS Global Thematic Gro, Cl B $ 3,531,373 AB VPS Gro & Inc, Cl B 1,700,345 AB VPS Intl Val, Cl B 25,484,770 AC VP Intl, Cl II 3,134,555 AC VP Mid Cap Val, Cl II 14,368,798 AC VP Ultra, Cl II 4,163,874 AC VP Val, Cl II 13,897,637 Calvert VP SRI Bal 1,349,910 Col VP Marsico Gro, Cl 1 61,842,966 Col VP Marsico Intl Opp, Cl 2 4,606,709 CS Commodity Return 18,905,314 EV VT Floating-Rate Inc 111,799,978 Fid VIP Contrafund, Serv Cl 2 29,810,321 Fid VIP Gro & Inc, Serv Cl 2 1,717,955 Fid VIP Mid Cap, Serv Cl 2 24,354,785 Fid VIP Overseas, Serv Cl 2 5,503,148 FTVIPT Frank Global Real Est, Cl 2 7,735,837 FTVIPT Frank Sm Cap Val, Cl 2 5,432,986 FTVIPT Mutual Shares Sec, Cl 2 9,503,137 GS VIT Mid Cap Val, Inst 2,847,566 GS VIT Structd U.S. Eq, Inst 5,886,853 Invesco VI Cap Appr, Ser II 3,885,183 Invesco VI Cap Dev, Ser II 921,367 Invesco VI Dyn, Ser I 203,749 Invesco VI Fin Serv, Ser I 2,648,548 Invesco VI Global Hlth, Ser II 4,452,359 Invesco VI Intl Gro, Ser II 33,097,195 Invesco VI Tech, Ser I 4,557,464 Invesco VanK VI Comstock, Ser II 20,675,937 Janus Aspen Global Tech, Serv 2,952,043 Janus Aspen Janus, Serv 60,265,142 Janus Aspen Overseas, Serv 6,266,913 MFS Inv Gro Stock, Serv Cl 5,420,477 MFS New Dis, Serv Cl 3,334,241 MFS Utilities, Serv Cl 14,312,610 MS UIF Global Real Est, Cl II 28,572,148 MS UIF Mid Cap Gro, Cl II 8,845,932 NB AMT Intl, Cl S 17,268,494 Oppen Global Sec VA, Serv 9,471,864 Oppen Global Strategic Inc VA, Srv 309,400,315 Oppen Main St Sm Mid Cap VA, Serv 3,448,021 PIMCO VIT All Asset, Advisor Cl 118,963,545 Put VT Global Hlth Care, Cl IB 1,076,725 Put VT Intl Eq, Cl IB 1,552,214 Put VT Multi-Cap Gro, Cl IB 31,361,017 Disc Asset Alloc, Aggr 24,589,792 Disc Asset Alloc, Conserv 71,398,291 Disc Asset Alloc, Mod 124,826,686 Disc Asset Alloc, Mod Aggr 65,260,513 Disc Asset Alloc, Mod Conserv 70,876,099 Col VP Bal, Cl 3 289,185,646 Col VP Cash Mgmt, Cl 3 635,687,828 Col VP Div Bond, Cl 3 4,369,600,000 Col VP Div Eq Inc, Cl 3 3,002,714,224 Col VP Dyn Eq, Cl 3 588,694,219 Col VP Global Bond, Cl 3 1,550,629,099 Col VP Global Inflation Prot Sec, Cl 3 2,007,392,159 Col VP Hi Yield Bond, Cl 3 560,077,781 Col VP Inc Opp, Cl 3 1,523,758,331 Col VP Mid Cap Gro Opp, Cl 3 128,298,466 Col VP Mid Cap Val Opp, Cl 3 275,156,801 Col VP S&P 500, Cl 3 158,089,722 Col VP Short Duration, Cl 3 390,970,517 Col VP Lg Cap Gro, Cl 3 194,482,817 Col VP Select Lg Cap Val, Cl 3 28,221,736 Col VP Select Sm Cap Val, Cl 3 76,464,925 Col VP Emer Mkts Opp, Cl 3 613,245,961 Col VP Intl Opp, Cl 3 162,789,244 VP Aggr, Cl 2 194,750,080 VP Aggr, Cl 4 1,686,554,486 VP Conserv, Cl 2 188,692,967 VP Conserv, Cl 4 1,501,209,748 VP Davis NY Venture, Cl 3 1,547,898,485 VP GS Mid Cap Val, Cl 3 16,089,523 VP Mod, Cl 2 1,647,114,299 VP Mod, Cl 4 10,818,836,290 VP Mod Aggr, Cl 2 925,940,674 VP Mod Aggr, Cl 4 6,649,629,229 VP Mod Conserv, Cl 2 504,047,009 VP Mod Conserv, Cl 4 3,262,009,893 VP Ptnrs Sm Cap Val, Cl 3 1,161,429,467 Wanger Intl 34,576,262 Wanger USA 13,516,548 WF Adv VT Core Eq, Cl 2 8,337,637 WF Adv VT Index Asset Alloc, Cl 2 1,367,270 WF Adv VT Intl Eq, Cl 2 54,915,985 WF Adv VT Opp, Cl 2 3,087,193 WF Adv VT Sm Cap Gro, Cl 2 12,132,499 ===========================================================
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 55 8. ACCUMULATION UNIT VALUES, UNITS OUTSTANDING AND NET ASSETS The following is a summary of accumulation unit values at Dec. 31, 2010:
AB VPS GLOBAL THEMATIC AB VPS AB VPS AC VP AC VP GRO, GRO & INC, INTL VAL, INTL, MID CAP VAL, SUBACCOUNT CL B CL B CL B CL II CL II -------------------------------------------------------------------- 0.55% $1.28 $1.08 $1.72 $1.39 $1.04 0.75% 1.26 1.06 1.69 1.37 1.03 0.85% 1.28 0.96 0.83 -- 1.27 0.95% 1.25 1.04 1.66 1.34 1.02 1.00% 1.25 1.13 1.72 1.55 1.02 1.05% 1.26 0.95 0.82 -- 1.26 1.10% 1.26 0.95 0.82 -- 1.26 1.20% 1.24 1.11 1.69 1.52 1.01 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.25 0.94 0.81 -- 1.25 1.30% 1.25 0.94 0.81 -- 1.25 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 1.24 0.93 0.81 -- 1.24 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------
COL VP AC VP AC VP CALVERT COL VP MARSICO INTL ULTRA, VAL, VP SRI MARSICO OPP, SUBACCOUNT CL II CL II BAL GRO, CL 1 CL 2 -------------------------------------------------------------------- 0.55% $1.07 $1.47 $1.10 $1.10 $1.01 0.75% 1.06 1.45 1.07 1.09 1.00 0.85% 1.10 1.05 -- 1.16 1.13 0.95% 1.05 1.42 1.05 1.08 0.99 1.00% 1.05 1.41 1.20 1.07 0.99 1.05% 1.09 1.05 -- 1.15 1.12 1.10% 1.09 1.04 -- 1.15 1.11 1.20% 1.03 1.38 1.17 1.06 0.98 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.09 1.04 -- 1.14 1.11 1.30% 1.08 1.03 -- 1.14 1.10 1.35% -- 1.16 -- -- 1.22 1.40% -- 1.16 -- -- 1.22 1.45% 1.08 1.03 -- 1.13 1.10 1.55% -- 1.16 -- -- 1.22 1.60% -- 1.16 -- -- 1.22 1.65% -- 1.16 -- -- 1.22 1.70% -- 1.16 -- -- 1.22 1.75% -- 1.16 -- -- 1.22 1.80% -- 1.16 -- -- 1.22 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 56 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
EV VT CS FLOATING- FID VIP FID VIP FID VIP COMMODITY RATE CONTRAFUND, GRO & INC, MID CAP, SUBACCOUNT RETURN INC SERV CL 2 SERV CL 2 SERV CL 2 -------------------------------------------------------------------- 0.55% $1.03 $1.18 $1.08 $1.18 $2.55 0.75% 1.02 1.17 1.07 1.16 2.50 0.85% 1.07 1.16 1.13 -- 1.32 0.95% 1.01 1.15 1.06 1.14 2.46 1.00% 1.01 1.15 1.05 1.18 2.37 1.05% 1.06 1.15 1.12 -- 1.31 1.10% 1.05 1.14 1.12 -- 1.31 1.20% 1.00 1.14 1.05 1.16 2.33 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.05 1.14 1.11 -- 1.30 1.30% 1.04 1.13 1.11 -- 1.29 1.35% -- -- 1.20 -- 1.24 1.40% -- -- 1.20 -- 1.24 1.45% 1.04 1.13 1.10 -- 1.29 1.55% -- -- 1.20 -- 1.24 1.60% -- -- 1.20 -- 1.24 1.65% -- -- 1.20 -- 1.24 1.70% -- -- 1.20 -- 1.24 1.75% -- -- 1.20 -- 1.24 1.80% -- -- 1.20 -- 1.24 --------------------------------------------------------------------------------------------------------------------
FTVIPT FTVIPT FRANK MUTUAL FID VIP GLOBAL REAL FTVIPT FRANK SHARES GS VIT OVERSEAS, EST, SM CAP VAL, SEC, MID CAP VAL, SUBACCOUNT SERV CL 2 CL 2 CL 2 CL 2 INST -------------------------------------------------------------------- 0.55% $1.52 $2.10 $2.64 $1.36 $2.86 0.75% 1.49 2.06 2.58 1.34 2.80 0.85% 1.05 0.77 1.14 1.01 -- 0.95% 1.46 2.01 2.52 1.31 2.74 1.00% 1.62 1.50 1.91 1.38 2.02 1.05% 1.04 0.77 1.13 1.00 -- 1.10% 1.04 0.76 1.13 0.99 -- 1.20% 1.59 1.47 1.88 1.36 1.98 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.03 0.75 1.13 1.00 -- 1.30% 1.03 0.76 1.12 0.99 -- 1.35% -- -- 1.30 1.12 -- 1.40% -- -- 1.30 1.12 -- 1.45% 1.02 0.74 1.12 0.99 -- 1.55% -- -- 1.30 1.12 -- 1.60% -- -- 1.30 1.12 -- 1.65% -- -- 1.30 1.12 -- 1.70% -- -- 1.30 1.12 -- 1.75% -- -- 1.30 1.12 -- 1.80% -- -- 1.30 1.12 -- --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 57
GS VIT STRUCTD U.S. INVESCO INVESCO INVESCO INVESCO EQ, VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, SUBACCOUNT INST SER II SER II SER I SER I -------------------------------------------------------------------- 0.55% $0.98 $0.99 $1.43 $1.29 $0.60 0.75% 0.96 0.97 1.40 1.26 0.59 0.85% 0.92 0.94 1.05 -- -- 0.95% 0.93 0.95 1.37 1.24 0.58 1.00% 1.12 1.01 1.44 1.36 0.62 1.05% 0.92 0.93 1.04 -- -- 1.10% 0.91 0.93 1.04 -- -- 1.20% 1.10 1.00 1.42 1.33 0.61 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 0.91 0.92 1.03 -- -- 1.30% 0.91 0.92 1.03 -- -- 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 0.90 0.91 1.02 -- -- 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------
INVESCO VI INVESCO VI INVESCO INVESCO VANK JANUS ASPEN GLOBAL HLTH, INTL GRO, VI TECH, VI COMSTOCK, GLOBAL TECH, SUBACCOUNT SER II SER II SER I SER II SERV -------------------------------------------------------------------- 0.55% $1.07 $1.40 $0.90 $1.26 $0.57 0.75% 1.06 1.39 0.88 1.24 0.55 0.85% 1.11 1.24 -- 1.02 -- 0.95% 1.05 1.38 0.87 1.22 0.54 1.00% 1.04 1.37 1.01 1.22 1.38 1.05% 1.10 1.22 -- 1.01 -- 1.10% 1.10 1.22 -- 1.01 -- 1.20% 1.03 1.36 1.00 1.20 1.36 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.09 1.21 -- 1.00 -- 1.30% 1.09 1.21 -- 1.00 -- 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 1.08 1.20 -- 0.99 -- 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 58 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
JANUS ASPEN JANUS ASPEN MFS INV MFS MFS JANUS, OVERSEAS, GRO STOCK, NEW DIS, UTILITIES, SUBACCOUNT SERV SERV SERV CL SERV CL SERV CL -------------------------------------------------------------------- 0.55% $0.98 $1.82 $0.76 $1.35 $2.11 0.75% 0.97 1.78 0.74 1.32 2.07 0.85% 0.97 -- 1.16 -- 1.44 0.95% 0.96 1.75 0.73 1.29 2.03 1.00% 0.96 3.08 1.14 1.54 2.53 1.05% 0.96 -- 1.15 -- 1.42 1.10% 0.96 -- 1.15 -- 1.42 1.20% 0.95 3.02 1.12 1.51 2.48 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 0.95 -- 1.14 -- 1.41 1.30% 0.95 -- 1.14 -- 1.41 1.35% 1.17 -- -- -- 1.17 1.40% 1.17 -- -- -- 1.17 1.45% 0.94 -- 1.13 -- 1.40 1.55% 1.17 -- -- -- 1.17 1.60% 1.17 -- -- -- 1.17 1.65% 1.17 -- -- -- 1.17 1.70% 1.17 -- -- -- 1.17 1.75% 1.17 -- -- -- 1.17 1.80% 1.17 -- -- -- 1.17 --------------------------------------------------------------------------------------------------------------------
OPPEN GLOBAL MS UIF OPPEN STRATEGIC GLOBAL REAL MS UIF NB AMT GLOBAL SEC INC EST, MID CAP GRO, INTL, VA, VA, SUBACCOUNT CL II CL II CL S SERV SRV -------------------------------------------------------------------- 0.55% $1.06 $1.31 $0.93 $1.53 $1.45 0.75% 1.05 1.30 0.92 1.51 1.43 0.85% 1.09 1.42 1.03 1.15 1.33 0.95% 1.04 1.29 0.91 1.49 1.41 1.00% 1.04 1.29 0.91 1.48 1.40 1.05% 1.08 1.41 1.02 1.14 1.32 1.10% 1.08 1.40 1.02 1.14 1.31 1.20% 1.03 1.28 0.90 1.46 1.38 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.07 1.39 1.01 1.13 1.31 1.30% 1.07 1.39 1.01 1.13 1.30 1.35% -- 1.26 -- 1.19 -- 1.40% -- 1.26 -- 1.19 -- 1.45% 1.07 1.38 1.00 1.12 1.29 1.55% -- 1.26 -- 1.18 -- 1.60% -- 1.26 -- 1.18 -- 1.65% -- 1.26 -- 1.18 -- 1.70% -- 1.26 -- 1.18 -- 1.75% -- 1.26 -- 1.18 -- 1.80% -- 1.26 -- 1.18 -- --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 59
OPPEN MAIN ST PIMCO PUT VT PUT VT SM MID CAP VIT ALL GLOBAL HLTH PUT VT MULTI-CAP VA, ASSET, CARE, INTL EQ, GRO, SUBACCOUNT SERV ADVISOR CL CL IB CL IB CL IB -------------------------------------------------------------------- 0.55% $1.45 $1.27 $1.17 $1.34 $1.13 0.75% 1.43 1.26 1.15 1.32 1.13 0.85% 1.10 1.29 -- -- -- 0.95% 1.41 1.25 1.13 1.29 1.13 1.00% 1.40 1.25 1.17 1.41 1.13 1.05% 1.09 1.28 -- -- -- 1.10% 1.08 1.28 -- -- -- 1.20% 1.38 1.24 1.15 1.39 1.13 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.08 1.27 -- -- -- 1.30% 1.07 1.26 -- -- -- 1.35% 1.22 1.06 -- -- -- 1.40% 1.22 1.06 -- -- -- 1.45% 1.07 1.26 -- -- -- 1.55% 1.22 1.06 -- -- -- 1.60% 1.22 1.06 -- -- -- 1.65% 1.22 1.06 -- -- -- 1.70% 1.22 1.06 -- -- -- 1.75% 1.22 1.06 -- -- -- 1.80% 1.22 1.06 -- -- -- --------------------------------------------------------------------------------------------------------------------
DISC DISC DISC DISC DISC ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, SUBACCOUNT AGGR CONSERV MOD MOD AGGR MOD CONSERV -------------------------------------------------------------------- 0.55% $0.97 $1.06 $1.00 $0.98 $1.02 0.75% 0.97 1.05 1.00 0.99 1.02 0.85% 0.97 1.05 0.99 0.98 1.02 0.95% 0.97 1.05 0.99 0.98 1.02 1.00% 0.97 1.05 0.99 0.98 1.01 1.05% 0.97 1.04 0.99 0.98 1.01 1.10% 0.96 1.04 0.99 0.98 1.01 1.20% 0.96 1.04 0.98 0.97 1.01 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 0.96 1.04 0.98 0.97 1.01 1.30% 0.96 1.04 0.98 0.97 1.01 1.35% 1.16 1.07 1.11 1.13 1.09 1.40% 1.16 1.07 1.11 1.13 1.09 1.45% 0.96 1.03 0.98 0.97 1.00 1.55% 1.15 1.07 1.11 1.13 1.09 1.60% 1.15 1.07 1.11 1.13 1.09 1.65% 1.15 1.07 1.11 1.13 1.09 1.70% 1.15 1.06 1.11 1.13 1.09 1.75% 1.15 1.06 1.11 1.13 1.09 1.80% 1.15 1.06 1.11 1.13 1.09 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 60 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
COL VP COL VP COL VP COL VP COL VP BAL, CASH MGMT, DIV BOND, DIV EQ INC, DYN EQ, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% $1.22 $1.23 $1.63 $1.71 $0.82 0.75% 1.19 1.21 1.59 1.68 0.80 0.85% 1.09 1.06 1.24 1.04 0.97 0.95% 1.16 1.18 1.56 1.65 0.79 1.00% 1.29 1.08 1.36 1.67 1.00 1.05% 1.08 1.05 1.23 1.04 0.96 1.10% 1.07 1.05 1.23 1.03 0.96 1.20% 1.27 1.06 1.34 1.63 1.07 1.25% -- -- -- 1.59 -- 1.25% 1.07 1.04 1.22 1.03 0.95 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.77 1.30 1.69 -- 1.27 1.25% -- -- -- -- -- 1.30% 1.07 1.04 1.22 1.02 0.95 1.35% 1.14 -- -- -- -- 1.40% 1.14 -- -- -- -- 1.45% 1.06 1.03 1.21 1.02 0.94 1.55% 1.14 -- -- -- -- 1.60% 1.14 -- -- -- -- 1.65% 1.14 -- -- -- -- 1.70% 1.14 -- -- -- -- 1.75% 1.14 -- -- -- -- 1.80% 1.14 -- -- -- -- --------------------------------------------------------------------------------------------------------------------
COL VP GLOBAL COL VP COL VP COL VP INFLATION HI YIELD COL VP MID CAP GRO GLOBAL BOND, PROT SEC, BOND, INC OPP, OPP, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% $1.82 $1.24 $1.82 $1.51 $1.58 0.75% 1.78 1.23 1.78 1.49 1.53 0.85% 1.30 1.20 1.39 1.39 1.32 0.95% 1.74 1.21 1.74 1.47 1.50 1.00% 1.69 1.21 1.85 1.46 1.55 1.05% 1.28 1.19 1.38 1.37 1.30 1.10% 1.28 1.19 1.38 1.37 1.30 1.20% 1.66 1.19 1.82 1.45 1.52 1.25% -- -- -- -- -- 1.25% 1.27 -- 1.37 -- 1.29 1.25% -- -- -- -- 1.18 1.25% 1.86 -- 1.94 -- -- 1.25% -- -- -- -- -- 1.25% -- 1.18 -- 1.36 -- 1.30% 1.27 1.18 1.36 1.36 1.29 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 1.26 1.17 1.35 1.35 1.28 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 61
COL VP COL VP COL VP COL VP SELECT LG MID CAP VAL COL VP SHORT LG CAP CAP OPP, S&P 500, DURATION, GRO, VAL, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% $1.40 $0.94 $1.39 $0.66 $1.21 0.75% 1.38 0.93 1.36 0.65 1.19 0.85% 1.11 1.06 1.11 1.01 1.03 0.95% 1.37 0.91 1.33 0.64 1.18 1.00% 1.36 1.19 1.16 1.03 1.17 1.05% 1.10 1.05 1.10 1.00 1.02 1.10% 1.09 1.04 1.10 1.00 1.02 1.20% 1.35 1.17 1.14 1.02 1.16 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.09 1.04 1.09 0.99 1.01 1.30% 1.08 1.03 1.09 0.99 1.01 1.35% -- 1.18 -- -- -- 1.40% -- 1.18 -- -- -- 1.45% 1.08 1.03 1.08 0.98 1.00 1.55% -- 1.17 -- -- -- 1.60% -- 1.17 -- -- -- 1.65% -- 1.17 -- -- -- 1.70% -- 1.17 -- -- -- 1.75% -- 1.17 -- -- -- 1.80% -- 1.17 -- -- -- --------------------------------------------------------------------------------------------------------------------
COL VP COL VP SELECT EMER MKTS COL VP VP VP SM CAP VAL, OPP, INTL OPP, AGGR, AGGR, SUBACCOUNT CL 3 CL 3 CL 3 CL 2 CL 4 -------------------------------------------------------------------- 0.55% $1.82 $2.75 $1.09 $1.12 $1.12 0.75% 1.79 2.65 1.06 1.12 1.12 0.85% 1.11 1.73 1.11 1.12 1.12 0.95% 1.75 2.60 1.04 1.12 1.12 1.00% 1.68 3.46 1.63 1.12 1.12 1.05% 1.10 1.72 1.10 1.12 1.12 1.10% 1.09 1.71 1.10 1.12 1.12 1.20% 1.65 3.40 1.60 1.12 1.12 1.25% -- 2.14 -- -- -- 1.25% -- 1.70 1.09 -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- 1.40 -- -- 1.25% 1.09 -- -- 1.12 1.12 1.30% 1.08 1.70 1.09 1.12 1.12 1.35% -- -- -- 1.16 -- 1.40% -- -- -- 1.16 -- 1.45% 1.08 1.69 1.08 1.12 1.12 1.55% -- -- -- 1.16 -- 1.60% -- -- -- 1.16 -- 1.65% -- -- -- 1.16 -- 1.70% -- -- -- 1.16 -- 1.75% -- -- -- 1.16 -- 1.80% -- -- -- 1.16 -- --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 62 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
VP VP VP DAVIS VP GS VP CONSERV, CONSERV, NY VENTURE, MID CAP VAL, MOD, SUBACCOUNT CL 2 CL 4 CL 3 CL 3 CL 2 -------------------------------------------------------------------- 0.55% $1.05 $1.05 $1.00 $1.42 $1.10 0.75% 1.05 1.05 0.98 1.40 1.10 0.85% 1.05 1.05 1.01 1.19 1.09 0.95% 1.05 1.05 0.97 1.38 1.09 1.00% 1.04 1.04 0.97 1.37 1.09 1.05% 1.04 1.04 1.00 1.18 1.09 1.10% 1.04 1.04 1.00 1.18 1.09 1.20% 1.04 1.04 0.96 1.35 1.09 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.04 1.04 0.99 1.17 1.09 1.30% 1.04 1.04 0.99 1.17 1.09 1.35% 1.05 -- -- -- 1.11 1.40% 1.05 -- -- -- 1.11 1.45% 1.04 1.04 0.98 1.16 1.09 1.55% 1.05 -- -- -- 1.11 1.60% 1.05 -- -- -- 1.11 1.65% 1.05 -- -- -- 1.10 1.70% 1.05 -- -- -- 1.10 1.75% 1.05 -- -- -- 1.10 1.80% 1.05 -- -- -- 1.10 --------------------------------------------------------------------------------------------------------------------
VP VP VP VP VP MOD, MOD AGGR, MOD AGGR, MOD CONSERV, MOD CONSERV, SUBACCOUNT CL 4 CL 2 CL 4 CL 2 CL 4 -------------------------------------------------------------------- 0.55% $1.10 $1.11 $1.12 $1.07 $1.07 0.75% 1.10 1.11 1.11 1.07 1.07 0.85% 1.09 1.11 1.11 1.07 1.07 0.95% 1.09 1.11 1.11 1.07 1.07 1.00% 1.09 1.11 1.11 1.07 1.07 1.05% 1.09 1.11 1.11 1.07 1.07 1.10% 1.09 1.11 1.11 1.07 1.07 1.20% 1.09 1.11 1.11 1.07 1.07 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.09 1.11 1.11 1.07 1.07 1.30% 1.09 1.11 1.11 1.07 1.07 1.35% -- 1.13 -- 1.08 -- 1.40% -- 1.13 -- 1.08 -- 1.45% 1.09 1.11 1.11 1.07 1.07 1.55% -- 1.13 -- 1.07 -- 1.60% -- 1.13 -- 1.07 -- 1.65% -- 1.13 -- 1.07 -- 1.70% -- 1.13 -- 1.07 -- 1.75% -- 1.13 -- 1.07 -- 1.80% -- 1.13 -- 1.07 -- --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 63
WF ADV VT VP PTNRS WF ADV INDEX ASSET SM CAP VAL, WANGER WANGER VT CORE EQ, ALLOC, SUBACCOUNT CL 3 INTL USA CL 2 CL 2 -------------------------------------------------------------------- 0.55% $2.08 $2.67 $2.09 $1.26 $1.26 0.75% 2.05 2.61 2.05 1.24 1.24 0.85% 1.20 1.42 1.16 1.24 -- 0.95% 2.01 2.55 2.00 1.22 1.21 1.00% 1.90 3.08 1.78 1.35 1.28 1.05% 1.19 1.41 1.15 1.23 -- 1.10% 1.19 1.40 1.15 1.22 -- 1.20% 1.86 3.02 1.75 1.33 1.26 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.18 1.39 1.14 1.21 -- 1.30% 1.18 1.39 1.14 1.21 -- 1.35% -- -- -- 1.23 -- 1.40% -- -- -- 1.23 -- 1.45% 1.17 1.38 1.13 1.20 -- 1.55% -- -- -- 1.23 -- 1.60% -- -- -- 1.23 -- 1.65% -- -- -- 1.22 -- 1.70% -- -- -- 1.22 -- 1.75% -- -- -- 1.22 -- 1.80% -- -- -- 1.22 -- --------------------------------------------------------------------------------------------------------------------
WF ADV WF ADV WF ADV VT VT INTL EQ, VT OPP, SM CAP GRO, SUBACCOUNT CL 2 CL 2 CL 2 ---------------------------------------- 0.55% $1.43 $1.57 $1.51 0.75% 1.41 1.54 1.48 0.85% 1.02 1.26 1.43 0.95% 1.39 1.51 1.45 1.00% 1.38 1.58 1.68 1.05% 1.01 1.25 1.42 1.10% 1.01 1.24 1.41 1.20% 1.36 1.55 1.65 1.25% -- -- -- 1.25% -- -- -- 1.25% -- -- -- 1.25% -- -- -- 1.25% -- -- -- 1.25% 1.00 1.24 1.40 1.30% 1.00 1.23 1.40 1.35% -- 1.23 1.28 1.40% -- 1.23 1.28 1.45% 1.00 1.23 1.39 1.55% -- 1.23 1.28 1.60% -- 1.23 1.28 1.65% -- 1.23 1.28 1.70% -- 1.23 1.27 1.75% -- 1.23 1.27 1.80% -- 1.23 1.27 -------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 64 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT The following is a summary of units outstanding at Dec. 31, 2010:
AB VPS GLOBAL THEMATIC AB VPS AB VPS AC VP AC VP GRO, GRO & INC, INTL VAL, INTL, MID CAP VAL, SUBACCOUNT CL B CL B CL B CL II CL II -------------------------------------------------------------------- 0.55% 75,542 321,006 1,076,253 65,056 152,821 0.75% 4,452,052 55,670,616 102,937,102 22,872,488 12,924,480 0.85% 2,970,936 5,889,478 30,080,999 -- 6,745,742 0.95% 2,571,473 33,655,667 63,534,270 12,836,882 8,797,840 1.00% 499,787 5,814,978 12,904,146 3,275,802 1,356,229 1.05% 1,335,063 3,473,022 15,575,839 -- 4,220,707 1.10% 1,049,248 1,849,884 11,867,011 -- 2,308,645 1.20% 437,343 3,288,230 6,457,708 1,679,021 774,524 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 56,413 181,168 1,366,221 -- 359,455 1.30% 443,296 492,488 5,887,126 -- 1,384,317 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 116,885 138,273 1,488,839 -- 358,160 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 14,008,038 110,774,810 253,175,514 40,729,249 39,382,920 --------------------------------------------------------------------------------------------------------------------
COL VP AC VP AC VP CALVERT COL VP MARSICO INTL ULTRA, VAL, VP MARSICO GRO, OPP, SUBACCOUNT CL II CL II SRI BAL CL 1 CL 2 -------------------------------------------------------------------- 0.55% 72,737 524,697 5,908 699,101 458,543 0.75% 11,062,911 64,095,535 14,304,079 86,634,693 26,527,428 0.85% 3,551,852 12,846,091 -- 29,158,975 9,468,620 0.95% 5,909,102 41,940,320 8,238,297 50,453,035 16,306,900 1.00% 1,610,063 9,687,180 1,552,965 8,953,920 3,409,408 1.05% 1,806,604 8,359,238 -- 14,396,836 5,747,758 1.10% 852,576 4,362,591 -- 9,404,247 4,074,057 1.20% 992,142 5,469,092 737,068 3,790,312 1,765,563 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 90,153 983,864 -- 1,359,130 557,401 1.30% 420,898 2,972,322 -- 5,333,259 2,130,337 1.35% -- 126,719 -- -- 5,490 1.40% -- -- -- -- 34,231 1.45% 180,774 1,000,674 -- 1,475,865 495,625 1.55% -- 11,018 -- -- 7,754 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 26,549,812 152,379,341 24,838,317 211,659,373 70,989,115 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 65
EV VT CS FLOATING- FID VIP FID VIP FID VIP COMMODITY RATE CONTRAFUND, GRO & INC, MID CAP, SUBACCOUNT RETURN INC SERV CL 2 SERV CL 2 SERV CL 2 -------------------------------------------------------------------- 0.55% 533,202 1,432,746 2,531,667 472,631 1,378,599 0.75% 37,446,053 74,514,019 192,769,489 77,300,521 132,015,435 0.85% 8,792,859 23,793,888 52,513,014 -- 44,383,983 0.95% 26,304,711 56,861,917 120,335,697 47,072,322 76,312,927 1.00% 6,002,669 8,825,723 23,331,325 9,202,195 19,376,262 1.05% 6,597,127 17,996,758 31,769,046 -- 21,471,546 1.10% 5,474,156 9,427,243 20,265,931 -- 13,368,532 1.20% 2,562,926 6,500,435 12,302,327 5,090,744 9,513,614 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 662,925 1,589,323 3,080,735 -- 2,025,251 1.30% 2,791,485 8,780,106 11,950,955 -- 6,949,215 1.35% -- -- 51,336 -- 58,453 1.40% -- -- 79,554 -- 15,462 1.45% 1,181,696 4,452,892 3,122,911 -- 1,724,238 1.55% -- -- 20,352 -- 28,953 1.60% -- -- 13,159 -- 7,163 1.65% -- -- 992 -- -- 1.70% -- -- 46,644 -- 32,021 1.75% -- -- -- -- -- 1.80% -- -- 8,099 -- 3,585 -------------------------------------------------------------------------------------------------------------------- Total 98,349,809 214,175,050 474,193,233 139,138,413 328,665,239 --------------------------------------------------------------------------------------------------------------------
FTVIPT FTVIPT FRANK MUTUAL FID VIP GLOBAL REAL FTVIPT FRANK SHARES GS VIT OVERSEAS, EST, SM CAP VAL, SEC, MID CAP VAL, SUBACCOUNT SERV CL 2 CL 2 CL 2 CL 2 INST -------------------------------------------------------------------- 0.55% 548,145 202,577 215,025 353,838 737,760 0.75% 36,565,864 42,371,607 34,971,098 50,331,107 64,120,730 0.85% 9,732,606 12,512,035 12,529,271 16,807,310 -- 0.95% 24,715,460 25,510,028 22,798,702 33,994,375 41,458,919 1.00% 4,194,417 5,793,144 5,667,235 8,592,813 10,068,628 1.05% 5,048,963 5,597,243 5,827,610 11,978,931 -- 1.10% 1,883,527 3,862,132 3,986,224 7,190,019 -- 1.20% 2,440,831 3,274,429 2,910,812 4,726,974 6,137,076 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 389,540 693,849 341,293 1,026,475 -- 1.30% 1,364,612 2,730,191 1,828,512 4,865,934 -- 1.35% -- -- 20,156 15,165 -- 1.40% -- -- 9,285 -- -- 1.45% 655,122 587,650 699,601 1,148,420 -- 1.55% -- -- 4,810 -- -- 1.60% -- -- -- 357 -- 1.65% -- -- -- -- -- 1.70% -- -- 18,648 -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 87,539,087 103,134,885 91,828,282 141,031,718 122,523,113 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 66 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
GS VIT STRUCTD U.S. INVESCO INVESCO INVESCO INVESCO EQ, VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, SUBACCOUNT INST SER II SER II SER I SER I -------------------------------------------------------------------- 0.55% 744,562 299,619 19,129 3,052 186,971 0.75% 90,486,419 59,536,992 10,525,456 3,090,645 13,352,378 0.85% 6,258,971 2,756,642 2,013,472 -- -- 0.95% 57,775,201 28,942,084 5,881,605 1,657,729 7,377,626 1.00% 8,681,454 8,736,405 1,141,590 137,791 1,814,153 1.05% 3,819,870 1,496,787 1,259,069 -- -- 1.10% 1,237,859 317,946 1,016,883 -- -- 1.20% 4,364,019 3,562,925 784,188 132,018 911,331 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 347,715 111,154 99,269 -- -- 1.30% 574,696 333,231 593,887 -- -- 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 356,231 117,341 79,684 -- -- 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 174,646,997 106,211,126 23,414,232 5,021,235 23,642,459 --------------------------------------------------------------------------------------------------------------------
INVESCO JANUS ASPEN VI GLOBAL INVESCO INVESCO INVESCO VANK GLOBAL HLTH, VI INTL GRO, VI TECH, VI COMSTOCK, TECH, SUBACCOUNT SER II SER II SER I SER II SERV -------------------------------------------------------------------- 0.55% 132,218 379,912 618,302 719,399 99,983 0.75% 7,455,858 36,189,153 21,965,538 100,324,478 27,036,462 0.85% 3,184,348 11,341,898 -- 16,417,503 -- 0.95% 4,675,106 24,477,330 10,745,136 51,081,378 16,131,389 1.00% 911,959 3,165,882 2,504,166 19,641,560 449,611 1.05% 2,319,452 7,071,547 -- 8,232,313 -- 1.10% 988,346 3,301,255 -- 4,680,676 -- 1.20% 387,366 1,535,808 1,577,846 9,202,936 168,906 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 39,416 368,166 -- 826,166 -- 1.30% 570,748 2,081,450 -- 2,823,013 -- 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 120,284 390,008 -- 908,710 -- 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 20,785,101 90,302,409 37,410,988 214,858,132 43,886,351 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 67
MFS JANUS JANUS ASPEN INV GRO MFS MFS ASPEN JANUS, OVERSEAS, STOCK, NEW DIS, UTILITIES, SUBACCOUNT SERV SERV SERV CL SERV CL SERV CL -------------------------------------------------------------------- 0.55% 568,458 226,059 178,134 102,435 500,439 0.75% 31,752,363 55,564,611 57,389,486 25,933,635 47,356,898 0.85% 15,294,971 -- 2,800,623 -- 16,579,065 0.95% 18,753,044 39,710,118 35,505,462 17,905,631 30,234,539 1.00% 3,202,524 1,173,326 3,412,398 1,975,011 4,252,502 1.05% 6,484,191 -- 2,062,250 -- 9,995,899 1.10% 3,982,010 -- 1,320,461 -- 4,597,245 1.20% 1,827,163 724,976 1,440,287 1,317,948 2,747,693 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 476,976 -- 307,693 -- 519,217 1.30% 2,336,085 -- 776,962 -- 3,728,867 1.35% 11,266 -- -- -- 21,343 1.40% 9,366 -- -- -- 2,188 1.45% 592,825 -- 229,706 -- 900,647 1.55% -- -- -- -- -- 1.60% 1,918 -- -- -- 342 1.65% -- -- -- -- -- 1.70% 19,506 -- -- -- 22,527 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 85,312,666 97,399,090 105,423,462 47,234,660 121,459,411 --------------------------------------------------------------------------------------------------------------------
OPPEN GLOBAL MS UIF MS UIF OPPEN STRATEGIC GLOBAL REAL MID CAP NB AMT GLOBAL SEC INC EST, GRO, INTL, VA, VA, SUBACCOUNT CL II CL II CL S SERV SRV -------------------------------------------------------------------- 0.55% 450,712 317,236 141,975 524,076 3,938,139 0.75% 25,144,263 17,946,724 9,073,242 29,183,441 265,862,672 0.85% 8,650,148 6,157,507 4,163,065 8,020,876 65,085,215 0.95% 16,072,783 11,306,166 5,093,081 18,638,471 193,871,602 1.00% 4,421,871 1,749,353 833,330 5,713,042 36,400,999 1.05% 5,172,882 3,564,065 2,094,783 4,932,557 52,024,699 1.10% 3,752,634 1,801,999 1,411,080 2,748,746 25,716,599 1.20% 2,303,876 1,283,900 320,337 2,966,203 25,920,241 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 435,905 188,172 109,234 807,405 4,614,790 1.30% 2,262,252 1,265,011 552,032 1,897,793 24,561,266 1.35% -- 5,064 -- 166,209 -- 1.40% -- 10,339 -- 1,448 -- 1.45% 429,362 158,717 99,578 661,530 8,227,753 1.55% -- 9,869 -- 21,416 -- 1.60% -- 317 -- -- -- 1.65% -- -- -- -- -- 1.70% -- 32,420 -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 69,096,688 45,796,859 23,891,737 76,283,213 706,223,975 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 68 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
OPPEN MAIN ST SM MID PIMCO PUT VT PUT VT CAP VIT ALL GLOBAL HLTH PUT VT MULTI-CAP VA, ASSET, CARE, INTL EQ, GRO, SUBACCOUNT SERV ADVISOR CL CL IB CL IB CL IB -------------------------------------------------------------------- 0.55% 367,635 590,394 40,487 31,645 139,237 0.75% 19,999,475 75,522,353 10,510,563 13,460,160 17,029,756 0.85% 7,402,539 18,464,755 -- -- -- 0.95% 12,889,437 49,920,821 5,824,179 8,589,513 11,502,868 1.00% 4,518,177 7,695,023 1,675,693 1,420,086 573,893 1.05% 4,832,960 13,842,661 -- -- -- 1.10% 3,510,040 8,208,445 -- -- -- 1.20% 2,099,083 7,491,785 683,420 801,050 188,569 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 430,462 1,584,883 -- -- -- 1.30% 1,852,647 6,043,453 -- -- -- 1.35% 17,664 193,869 -- -- -- 1.40% -- -- -- -- -- 1.45% 320,070 2,684,757 -- -- -- 1.55% 7,637 41,317 -- -- -- 1.60% 1,875 4,378 -- -- -- 1.65% -- 46,992 -- -- -- 1.70% -- 34,764 -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 58,249,701 192,370,650 18,734,342 24,302,454 29,434,323 --------------------------------------------------------------------------------------------------------------------
DISC DISC DISC DISC DISC ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, SUBACCOUNT AGGR CONSERV MOD MOD AGGR MOD CONSERV -------------------------------------------------------------------- 0.55% 580,916 32,996 111,156 85,022 265 0.75% 11,289,355 17,928,098 51,467,093 25,182,099 25,280,478 0.85% 2,214,895 3,297,096 9,356,017 4,418,367 4,278,929 0.95% 5,789,486 16,204,160 30,491,154 15,428,747 15,804,073 1.00% 998,541 2,338,353 3,425,559 2,607,156 2,353,357 1.05% 952,410 3,341,193 6,002,776 2,302,937 3,119,149 1.10% 659,794 5,297,024 3,838,094 2,395,949 3,087,321 1.20% 63,879 2,836,119 2,345,316 957,519 2,348,846 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 121,980 851,079 1,476,619 259,347 884,850 1.30% 423,722 2,959,232 1,957,644 428,972 1,567,387 1.35% -- 464,610 73,759 59,759 -- 1.40% 269,327 -- 4,749 -- -- 1.45% 30,652 707,288 755,101 127,758 1,068,014 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- 32,616 1.70% -- 44,464 -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 23,394,957 56,301,712 111,305,037 54,253,632 59,825,285 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 69
COL VP DIV COL VP COL VP CASH COL VP DIV EQ COL VP DYN BAL, MGMT, BOND, INC, EQ, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% 633,777 613,131 3,827,672 2,152,844 564,566 0.75% 61,920,603 134,039,674 282,705,078 256,448,954 218,715,426 0.85% 8,117,649 38,057,169 63,231,050 66,039,065 1,257,580 0.95% 45,790,840 92,405,322 214,494,196 156,961,838 120,426,756 1.00% 6,232,362 13,197,954 33,909,558 27,619,177 13,426,153 1.05% 5,955,158 27,422,155 46,357,895 32,440,744 1,062,262 1.10% 3,327,916 12,070,347 22,788,842 18,438,616 368,415 1.20% 4,325,339 7,757,915 26,395,747 13,939,476 5,012,736 1.25% -- -- -- 62,741,037 -- 1.25% 983,401 4,655,311 3,814,452 2,760,512 161,742 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 41,583,681 17,657,080 52,790,865 -- 109,733,021 1.25% -- -- -- -- -- 1.30% 2,323,924 8,311,972 15,942,508 9,753,576 255,850 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 809,205 5,325,018 7,524,648 2,844,654 68,452 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 182,003,855 361,513,048 773,782,511 652,140,493 471,052,959 --------------------------------------------------------------------------------------------------------------------
COL VP GLOBAL INFLATION COL VP COL VP COL VP PROT HI YIELD COL VP MID CAP GRO GLOBAL BOND, SEC, BOND, INC OPP, OPP, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% 1,598,878 1,987,592 706,346 1,131,703 238,351 0.75% 88,622,565 92,837,031 111,083,190 56,451,598 34,994,857 0.85% 21,157,886 19,071,418 17,925,110 15,925,208 3,870,858 0.95% 68,524,207 63,669,056 89,489,425 39,448,416 21,606,040 1.00% 10,118,930 12,533,412 8,986,049 6,861,412 1,677,407 1.05% 16,567,972 12,680,699 12,241,112 11,028,706 2,694,959 1.10% 7,960,812 6,273,992 6,185,070 5,172,261 1,298,705 1.20% 7,370,574 9,303,734 7,801,579 5,416,438 1,154,951 1.25% -- -- -- -- -- 1.25% 1,440,539 -- 740,708 -- 127,286 1.25% -- -- -- -- 31,577,909 1.25% 15,394,988 -- 27,790,916 -- -- 1.25% -- -- -- -- -- 1.25% -- 1,299,014 -- 895,322 -- 1.30% 6,375,858 7,440,593 4,147,117 4,656,375 650,847 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 2,597,812 2,975,285 1,702,064 1,524,516 155,742 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 247,731,021 230,071,826 288,798,686 148,511,955 100,047,912 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 70 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
COL VP COL VP COL VP SELECT LG MID CAP VAL COL VP SHORT COL VP CAP OPP, S&P 500, DURATION, LG CAP GRO, VAL, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% 338,391 314,101 1,669,656 1,191,990 119,774 0.75% 33,722,864 77,987,140 95,906,487 124,302,303 10,640,100 0.85% 17,891,644 6,003,471 22,089,857 4,320,410 1,679,537 0.95% 19,330,533 55,090,300 78,227,502 72,817,145 6,063,439 1.00% 3,567,514 5,760,270 9,875,723 7,578,955 657,117 1.05% 9,642,880 3,813,850 13,991,622 3,011,931 1,237,883 1.10% 4,691,154 2,080,090 6,531,143 1,116,824 376,466 1.20% 1,680,150 3,421,012 9,727,048 3,547,051 560,883 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 460,076 440,644 2,648,201 310,635 89,204 1.30% 2,723,458 1,006,174 6,484,529 441,770 384,108 1.35% -- 66,322 -- -- -- 1.40% -- -- -- -- -- 1.45% 537,652 469,881 4,382,463 195,699 53,169 1.55% -- 881 -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 94,586,316 156,454,136 251,534,231 218,834,713 21,861,680 --------------------------------------------------------------------------------------------------------------------
COL VP COL VP SELECT SM EMER MKTS COL VP VP VP CAP VAL, OPP, INTL OPP, AGGR, AGGR, SUBACCOUNT CL 3 CL 3 CL 3 CL 2 CL 4 ---------------------------------------------------------------------- 0.55% 71,135 1,027,765 398,738 395,121 26,353,808 0.75% 19,549,345 56,730,326 39,494,406 22,643,049 287,015,045 0.85% 1,954,058 19,362,954 4,181,744 79,955,097 709,794,054 0.95% 12,743,621 33,566,562 27,644,665 45,018,497 123,203,184 1.00% 1,363,754 4,807,162 2,671,389 2,096,172 34,055,793 1.05% 1,586,253 10,790,428 3,474,951 4,608,037 212,702,460 1.10% 617,084 6,267,388 1,824,388 9,088,358 168,024,481 1.20% 879,668 2,468,124 1,443,418 18,110,773 11,130,147 1.25% -- 39,510,692 -- -- -- 1.25% -- 846,803 312,896 -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- 41,244,805 -- -- 1.25% 82,183 -- -- 202,919 4,913,675 1.30% 366,160 3,314,028 1,317,294 2,154,890 44,197,505 1.35% -- -- -- 301,586 -- 1.40% -- -- -- 387,305 -- 1.45% 70,269 759,719 218,936 476,032 1,927,676 1.55% -- -- -- 331,669 -- 1.60% -- -- -- -- -- 1.65% -- -- -- 234,483 -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- Total 39,283,530 179,451,951 124,227,630 186,003,988 1,623,317,828 ----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 71
VP VP VP DAVIS VP GS VP CONSERV, CONSERV, NY VENTURE, MID CAP VAL, MOD, SUBACCOUNT CL 2 CL 4 CL 3 CL 3 CL 2 ------------------------------------------------------------------------ 0.55% 1,173,616 8,371,226 276,341 115,233 506,871 0.75% 19,113,524 171,494,960 24,427,746 4,535,379 150,411,569 0.85% 37,861,648 407,564,414 12,854,354 921,953 543,149,939 0.95% 39,107,393 129,582,642 12,489,928 2,759,868 372,330,885 1.00% 2,294,618 20,656,208 2,193,224 440,518 12,697,201 1.05% 9,779,429 245,306,404 5,127,532 889,396 57,789,592 1.10% 11,373,549 169,771,104 2,609,057 235,355 77,580,626 1.20% 31,375,013 20,762,358 1,020,293 346,994 267,638,414 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1,761,895 23,878,852 345,288 60,617 7,563,589 1.30% 9,822,489 111,906,711 1,523,358 164,815 39,306,553 1.35% 3,208,734 -- -- -- 8,014,559 1.40% 672,855 -- -- -- 6,259,238 1.45% 3,774,904 40,233,465 366,665 205,612 23,093,571 1.55% 2,008,991 -- -- -- 4,360,820 1.60% 950,192 -- -- -- 2,802,333 1.65% 306,247 -- -- -- 10,037,563 1.70% 1,365,263 -- -- -- 657,041 1.75% 138,546 -- -- -- -- 1.80% 115,522 -- -- -- 162,876 ------------------------------------------------------------------------------------------------------------------------ Total 176,204,428 1,349,528,344 63,233,786 10,675,740 1,584,363,240 ------------------------------------------------------------------------------------------------------------------------
VP MOD VP MOD VP MOD VP MOD VP MOD, AGGR, AGGR, CONSERV, CONSERV, SUBACCOUNT CL 4 CL 2 CL 4 CL 2 CL 4 --------------------------------------------------------------------------- 0.55% 21,627,001 2,006,505 23,294,250 98 5,161,693 0.75% 1,625,657,909 85,099,109 1,122,489,733 53,053,640 454,691,745 0.85% 4,048,659,943 382,805,921 2,821,857,654 130,485,767 1,012,023,021 0.95% 951,447,638 199,755,686 514,222,391 125,196,315 335,423,851 1.00% 199,337,579 6,429,504 118,439,580 5,249,941 58,787,786 1.05% 1,685,220,657 33,804,473 918,448,070 21,323,061 497,805,933 1.10% 1,296,869,863 43,655,323 640,890,409 25,835,127 404,992,419 1.20% 94,999,789 98,232,987 43,525,010 82,794,802 38,587,876 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 50,298,625 3,726,756 24,538,610 1,853,046 26,919,047 1.30% 551,506,898 20,188,168 191,047,769 16,388,217 234,736,138 1.35% -- 1,890,880 -- 4,108,596 -- 1.40% -- 3,622,397 -- 2,469,769 -- 1.45% 41,322,919 7,131,783 12,285,735 8,769,471 42,735,339 1.55% -- 389,343 -- 4,657,625 -- 1.60% -- 910,297 -- 999,445 -- 1.65% -- 1,963,385 -- 1,757,272 -- 1.70% -- -- -- 1,016,382 -- 1.75% -- 32,141 -- -- -- 1.80% -- 102,161 -- 197,756 -- --------------------------------------------------------------------------------------------------------------------------- Total 10,566,948,821 891,746,819 6,431,039,211 486,156,330 3,111,864,848 ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 72 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
WF ADV VT VP PTNRS WF ADV VT INDEX ASSET SM CAP VAL, WANGER WANGER CORE EQ, ALLOC, SUBACCOUNT CL 3 INTL USA CL 2 CL 2 -------------------------------------------------------------------- 0.55% 706,960 1,119,782 1,056,800 71,069 1,865 0.75% 48,892,927 80,435,439 102,577,682 12,644,436 15,175,592 0.85% 11,214,270 26,504,477 22,942,813 4,190,527 -- 0.95% 26,229,497 50,297,974 67,604,156 8,292,422 11,303,123 1.00% 6,021,522 8,553,666 15,506,658 847,464 1,870,487 1.05% 5,660,456 14,810,935 11,753,394 3,660,434 -- 1.10% 2,879,971 7,421,399 6,751,537 2,123,920 -- 1.20% 2,661,269 4,187,933 7,116,232 707,417 775,511 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 441,741 886,131 987,416 203,886 -- 1.30% 1,347,621 4,285,665 3,588,738 1,334,737 -- 1.35% -- -- -- 1,873 -- 1.40% -- -- -- -- -- 1.45% 368,442 910,165 743,694 368,679 -- 1.55% -- -- -- 10,382 -- 1.60% -- -- -- 326 -- 1.65% -- -- -- -- -- 1.70% -- -- -- 25,465 -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 106,424,676 199,413,566 240,629,120 34,483,037 29,126,578 --------------------------------------------------------------------------------------------------------------------
WF ADV WF ADV VT INTL WF ADV VT SM CAP EQ, VT OPP, GRO, SUBACCOUNT CL 2 CL 2 CL 2 ---------------------------------------- 0.55% 336,561 120,528 198,379 0.75% 20,616,498 16,903,588 28,351,385 0.85% 8,294,455 2,066,371 8,077,043 0.95% 15,532,026 9,801,633 18,266,480 1.00% 3,118,202 2,173,024 2,620,946 1.05% 3,738,986 1,134,630 5,101,737 1.10% 2,182,238 711,040 2,173,524 1.20% 1,780,240 940,548 1,330,519 1.25% -- -- -- 1.25% -- -- -- 1.25% -- -- -- 1.25% -- -- -- 1.25% -- -- -- 1.25% 250,395 82,975 351,340 1.30% 1,554,560 354,263 1,247,877 1.35% -- 1,688 6,290 1.40% -- -- -- 1.45% 340,803 69,779 387,844 1.55% -- -- 4,812 1.60% -- 327 1,018 1.65% -- -- -- 1.70% -- 32,330 31,891 1.75% -- -- -- 1.80% -- -- -- ------------------------------------------------------------------------------------------------------- Total 57,744,964 34,392,724 68,151,085 -------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 73 The following is a summary of net assets at Dec. 31, 2010:
AB VPS GLOBAL THEMATIC AB VPS AB VPS AC VP AC VP SUBACCOUNT GRO, GRO & INC, INTL VAL, INTL, MID CAP VAL, ---------- CL B CL B CL B CL II CL II -------------------------------------------------------------------- 0.55% $ 96,406 $ 348,189 $ 1,921,062 $ 90,868 $ 158,423 0.75% 5,666,594 59,286,719 174,231,802 31,342,245 13,304,839 0.85% 3,791,406 5,656,569 24,966,319 -- 8,596,267 0.95% 3,218,392 35,204,151 105,695,860 17,349,332 9,035,627 1.00% 623,930 6,590,075 22,221,670 5,078,900 1,382,615 1.05% 1,688,487 3,337,858 12,879,313 -- 5,351,933 1.10% 1,324,234 1,751,623 9,736,563 -- 2,908,555 1.20% 540,407 3,660,525 10,943,237 2,561,821 784,296 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 70,698 170,284 1,112,996 -- 449,727 1.30% 554,236 462,209 4,786,877 -- 1,728,295 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 145,154 128,899 1,206,724 -- 444,090 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total $17,719,944 $116,597,101 $369,702,423 $56,423,166 $44,144,667 --------------------------------------------------------------------------------------------------------------------
COL VP AC VP AC VP CALVERT COL VP MARSICO INTL ULTRA, VAL, VP MARSICO GRO, OPP, SUBACCOUNT CL II CL II SRI BAL CL 1 CL 2 -------------------------------------------------------------------- 0.55% $ 77,841 $ 772,928 $ 6,487 $ 899,150 $ 463,934 0.75% 11,724,577 92,745,006 15,412,897 94,170,650 26,617,414 0.85% 3,924,331 13,550,709 -- 33,822,737 10,701,788 0.95% 6,193,461 59,709,780 8,709,329 54,508,789 16,354,470 1.00% 1,683,009 13,617,003 1,856,749 9,616,748 3,378,016 1.05% 1,977,758 8,738,275 -- 16,544,057 6,410,654 1.10% 931,363 4,549,951 -- 10,775,949 4,533,193 1.20% 1,026,476 7,551,743 865,727 4,032,825 1,737,641 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 97,663 1,019,154 -- 1,547,027 616,042 1.30% 455,550 3,071,727 -- 6,056,065 2,349,516 1.35% -- 146,751 -- -- 6,779 1.40% -- 84 -- -- 41,798 1.45% 194,548 1,027,551 -- 1,664,320 542,821 1.55% -- 12,833 -- -- 9,530 1.60% -- 84 -- -- 88 1.65% -- 84 -- -- 88 1.70% -- 84 -- -- 88 1.75% -- 84 -- -- 88 1.80% -- 84 -- -- 88 -------------------------------------------------------------------------------------------------------------------- Total $28,286,577 $206,513,915 $26,851,189 $233,638,317 $73,764,036 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 74 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
EV VT CS FLOATING- FID VIP FID VIP FID VIP COMMODITY RATE CONTRAFUND, GRO & INC, MID CAP, SUBACCOUNT RETURN INC SERV CL 2 SERV CL 2 SERV CL 2 -------------------------------------------------------------------- 0.55% $ 641,033 $ 1,686,330 $ 2,727,572 $ 558,101 $ 3,514,713 0.75% 38,274,395 86,994,724 206,275,482 89,749,986 330,692,039 0.85% 9,371,364 27,547,587 59,396,039 -- 58,619,042 0.95% 26,619,227 65,869,967 127,629,497 53,667,890 187,975,794 1.00% 6,057,626 10,182,266 24,634,472 10,843,674 45,996,637 1.05% 7,055,966 20,660,347 35,642,580 -- 28,141,473 1.10% 5,767,679 10,790,353 22,645,258 -- 17,453,656 1.20% 2,562,189 7,425,474 12,863,813 5,892,427 22,193,461 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 693,890 1,806,526 3,435,479 -- 2,626,019 1.30% 2,914,588 9,958,832 13,233,458 -- 8,991,144 1.35% -- -- 61,712 -- 72,449 1.40% -- -- 95,577 -- 19,158 1.45% 1,225,533 5,016,368 3,434,422 -- 2,221,269 1.55% -- -- 24,435 -- 35,849 1.60% -- -- 15,795 -- 8,868 1.65% -- -- 1,305 -- 90 1.70% -- -- 55,962 -- 39,621 1.75% -- -- 114 -- 90 1.80% -- -- 9,713 -- 4,523 -------------------------------------------------------------------------------------------------------------------- Total $101,183,490 $247,938,774 $512,182,685 $160,712,078 $708,605,895 --------------------------------------------------------------------------------------------------------------------
FTVIPT FTVIPT FTVIPT MUTUAL GS VIT FID VIP FRANK GLOBAL FRANK SM CAP SHARES MID CAP OVERSEAS, REAL EST, VAL, SEC, VAL, SUBACCOUNT SERV CL 2 CL 2 CL 2 CL 2 INST -------------------------------------------------------------------- 0.55% $ 830,898 $ 430,767 $ 566,733 $ 482,804 $ 2,113,557 0.75% 54,579,425 87,267,082 90,244,107 67,502,386 179,852,999 0.85% 10,226,984 9,660,642 14,330,501 16,908,357 -- 0.95% 36,231,072 51,487,204 57,532,875 44,736,951 113,765,738 1.00% 6,789,386 8,680,400 10,828,671 11,898,886 20,310,489 1.05% 5,251,728 4,285,158 6,604,904 11,942,611 -- 1.10% 1,952,995 2,947,961 4,507,747 7,151,727 -- 1.20% 3,881,362 4,825,753 5,463,705 6,448,705 12,161,428 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 401,565 521,102 384,093 1,021,511 -- 1.30% 1,402,192 2,065,332 2,049,073 4,796,139 -- 1.35% -- -- 26,250 16,944 -- 1.40% -- -- 12,090 82 -- 1.45% 668,568 437,483 780,346 1,132,464 -- 1.55% -- -- 6,258 82 -- 1.60% -- -- 90 480 -- 1.65% -- -- 90 82 -- 1.70% -- -- 24,248 82 -- 1.75% -- -- 90 82 -- 1.80% -- -- 90 82 -- -------------------------------------------------------------------------------------------------------------------- Total $122,216,175 $172,608,884 $193,361,961 $174,040,457 $328,204,211 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 75
GS VIT STRUCTD U.S. INVESCO INVESCO INVESCO INVESCO EQ, VI CAP APPR, VI CAP DEV, VI DYN, VI FIN SERV, SUBACCOUNT INST SER II SER II SER I SER I -------------------------------------------------------------------- 0.55% $ 743,637 $ 296,622 $ 27,303 $ 3,915 $ 113,105 0.75% 86,563,113 57,846,272 14,727,936 3,906,731 7,923,198 0.85% 5,786,837 2,583,762 2,114,666 -- -- 0.95% 54,019,018 27,608,901 8,088,693 2,058,603 4,297,526 1.00% 9,762,913 8,861,473 1,647,261 186,818 1,119,453 1.05% 3,528,596 1,390,032 1,307,136 -- -- 1.10% 1,131,481 294,580 1,053,720 -- -- 1.20% 4,821,245 3,549,925 1,111,548 175,855 552,451 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 315,671 102,288 102,175 -- -- 1.30% 520,645 305,971 609,694 -- -- 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 320,555 106,923 81,286 -- -- 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total $167,513,711 $102,946,749 $30,871,418 $6,331,922 $14,005,733 --------------------------------------------------------------------------------------------------------------------
INVESCO JANUS ASPEN VI GLOBAL INVESCO INVESCO INVESCO VANK GLOBAL HLTH, VI INTL GRO, VI TECH, VI COMSTOCK, TECH, SUBACCOUNT SER II SER II SER I SER II SERV -------------------------------------------------------------------- 0.55% $ 140,818 $ 533,661 $ 557,186 $ 903,390 $ 56,552 0.75% 7,871,981 50,365,436 19,426,461 124,273,766 14,968,981 0.85% 3,548,815 14,013,357 -- 16,787,040 -- 0.95% 4,890,767 33,697,379 9,326,852 62,466,726 8,883,470 1.00% 951,851 4,344,109 2,540,661 23,903,016 621,798 1.05% 2,560,688 8,658,953 -- 8,333,429 -- 1.10% 1,088,606 4,032,530 -- 4,727,487 -- 1.20% 400,616 2,085,336 1,572,348 11,057,288 229,452 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 43,061 446,782 -- 828,424 -- 1.30% 622,955 2,519,856 -- 2,825,940 -- 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 130,442 474,047 -- 903,061 -- 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total $22,250,600 $121,171,446 $33,423,508 $257,009,567 $24,760,253 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 76 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
MFS JANUS JANUS ASPEN INV GRO MFS MFS ASPEN JANUS, OVERSEAS, STOCK, NEW DIS, UTILITIES, SUBACCOUNT SERV SERV SERV CL SERV CL SERV CL -------------------------------------------------------------------- 0.55% $ 554,495 $ 412,044 $ 135,418 $ 138,271 $ 1,053,432 0.75% 30,766,217 99,211,433 42,745,861 34,301,659 98,124,414 0.85% 14,759,869 -- 3,246,818 -- 23,796,329 0.95% 18,039,690 69,649,001 25,941,949 23,233,224 61,417,968 1.00% 3,073,134 3,610,932 3,899,171 3,034,915 10,748,440 1.05% 6,211,378 -- 2,369,145 -- 14,218,225 1.10% 3,807,667 -- 1,513,524 -- 6,523,756 1.20% 1,740,698 2,192,133 1,616,556 1,989,519 6,822,808 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 453,661 -- 349,815 -- 731,913 1.30% 2,217,228 -- 882,488 -- 5,244,250 1.35% 13,179 -- -- -- 25,111 1.40% 10,954 -- -- -- 2,674 1.45% 559,427 -- 259,130 -- 1,258,434 1.55% 113 -- -- -- 112 1.60% 2,354 -- -- -- 513 1.65% 113 -- -- -- 112 1.70% 22,782 -- -- -- 26,455 1.75% 112 -- -- -- 112 1.80% 112 -- -- -- 112 -------------------------------------------------------------------------------------------------------------------- Total $82,233,183 $175,075,543 $82,959,875 $62,697,588 $229,995,170 --------------------------------------------------------------------------------------------------------------------
OPPEN GLOBAL MS UIF MS UIF OPPEN STRATEGIC GLOBAL REAL MID CAP NB AMT GLOBAL SEC INC EST, GRO, INTL, VA, VA, SUBACCOUNT CL II CL II CL S SERV SRV -------------------------------------------------------------------- 0.55% $ 476,586 $ 417,116 $ 131,710 $ 805,196 $ 6,119,262 0.75% 26,360,966 23,416,487 8,342,117 44,126,374 380,202,169 0.85% 9,471,623 8,734,370 4,291,253 9,230,805 86,664,251 0.95% 16,797,312 14,593,389 4,649,771 27,834,205 273,946,541 1.00% 4,578,964 2,252,201 757,103 8,472,765 51,164,268 1.05% 5,654,544 5,009,665 2,138,292 5,669,062 68,824,035 1.10% 4,060,957 2,527,291 1,437,797 3,127,513 33,814,388 1.20% 2,363,568 1,637,736 288,411 4,338,111 35,893,693 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 468,304 278,955 110,766 912,504 6,047,106 1.30% 2,426,175 1,758,403 557,350 2,139,989 31,998,370 1.35% -- 6,376 -- 197,062 -- 1.40% -- 13,015 -- 1,831 -- 1.45% 457,473 268,428 99,793 796,262 10,673,671 1.55% -- 12,415 -- 25,369 -- 1.60% -- 488 -- 114 -- 1.65% -- 90 -- 114 -- 1.70% -- 40,752 -- 114 -- 1.75% -- 90 -- 113 -- 1.80% -- 90 -- 113 -- -------------------------------------------------------------------------------------------------------------------- Total $73,116,472 $60,967,357 $22,804,363 $107,677,616 $985,347,754 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 77
OPPEN MAIN ST SM MID PIMCO PUT VT PUT VT CAP VIT ALL GLOBAL HLTH PUT VT MULTI-CAP VA, ASSET, CARE, INTL EQ, GRO, SUBACCOUNT SERV ADVISOR CL CL IB CL IB CL IB -------------------------------------------------------------------- 0.55% $ 532,262 $ 845,046 $ 47,333 $ 42,480 $ 157,546 0.75% 28,559,681 95,757,353 12,089,736 17,744,350 19,290,334 0.85% 8,117,993 23,855,436 -- -- -- 0.95% 18,219,207 62,988,206 6,577,339 11,131,697 13,036,368 1.00% 6,339,331 9,603,810 1,956,728 2,009,535 648,568 1.05% 5,252,133 17,794,231 -- -- -- 1.10% 3,805,938 10,469,824 -- -- -- 1.20% 2,904,175 9,272,904 783,948 1,113,424 212,991 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 463,630 2,023,480 -- -- -- 1.30% 1,990,634 7,638,080 -- -- -- 1.35% 21,706 205,611 -- -- -- 1.40% 86 79 -- -- -- 1.45% 341,351 3,441,580 -- -- -- 1.55% 9,425 43,779 -- -- -- 1.60% 2,379 4,717 -- -- -- 1.65% 86 49,772 -- -- -- 1.70% 86 36,812 -- -- -- 1.75% 86 79 -- -- -- 1.80% 86 79 -- -- -- -------------------------------------------------------------------------------------------------------------------- Total $76,560,275 $244,030,878 $21,455,084 $32,041,486 $33,345,807 --------------------------------------------------------------------------------------------------------------------
DISC DISC DISC DISC DISC ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, ASSET ALLOC, SUBACCOUNT AGGR CONSERV MOD MOD AGGR MOD CONSERV -------------------------------------------------------------------- 0.55% $ 568,766 $ 34,824 $ 110,736 $ 902,919 $ 272 0.75% 10,987,402 18,873,851 51,388,448 24,884,982 25,821,251 0.85% 2,156,901 3,462,170 9,323,548 4,383,523 4,359,035 0.95% 5,733,450 17,069,970 30,236,535 15,541,314 16,299,522 1.00% 965,403 2,445,488 3,392,060 2,553,498 2,387,811 1.05% 919,527 3,553,612 6,106,952 3,061,066 3,196,912 1.10% 636,230 5,524,736 3,815,570 2,340,416 3,124,291 1.20% 61,453 2,950,238 2,310,056 932,812 2,370,611 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 117,158 884,175 1,452,491 252,333 891,836 1.30% 406,386 3,069,896 1,922,957 416,843 1,577,661 1.35% 11 495,561 82,079 67,658 11 1.40% 311,238 10 5,284 11 11 1.45% 29,411 730,842 738,756 186,617 1,070,704 1.55% 11 10 11 11 11 1.60% 11 10 11 11 11 1.65% 11 10 11 11 35,451 1.70% 11 47,351 11 11 11 1.75% 11 10 11 11 11 1.80% 11 10 11 11 11 -------------------------------------------------------------------------------------------------------------------- Total $22,893,402 $59,142,774 $110,885,538 $55,524,058 $61,135,434 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 78 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
COL VP COL VP CASH COL VP DIV COL VP DIV EQ COL VP BAL, MGMT, BOND, INC, DYN EQ, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 ------------------------------------------------------------------------ 0.55% $ 1,035,836 $ 756,321 $ 6,230,337 $ 3,835,462 $ 464,452 0.75% 74,164,815 161,731,480 451,349,589 432,884,864 176,578,938 0.85% 8,825,372 40,267,926 78,466,670 69,005,226 1,215,708 0.95% 53,911,674 109,044,722 334,851,546 259,532,862 95,467,376 1.00% 8,140,206 14,211,555 46,228,827 46,161,572 13,428,569 1.05% 6,506,568 28,753,835 57,067,858 33,634,084 1,017,893 1.10% 3,577,410 12,628,240 27,975,488 19,055,180 352,183 1.20% 5,500,490 8,204,392 35,398,503 22,770,086 5,356,179 1.25% -- -- -- 101,363,484 -- 1.25% 1,050,083 4,837,643 4,673,036 2,831,486 153,589 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 75,889,506 22,924,838 91,042,089 -- 141,860,131 1.25% -- -- -- -- -- 1.30% 2,475,587 8,617,287 19,380,339 9,981,939 242,401 1.35% 11 -- -- -- -- 1.40% 11 -- -- -- -- 1.45% 856,359 5,484,286 9,096,351 2,891,537 64,280 1.55% 11 -- -- -- -- 1.60% 11 -- -- -- -- 1.65% 11 -- -- -- -- 1.70% 11 -- -- -- -- 1.75% 11 -- -- -- -- 1.80% 11 -- -- -- -- ------------------------------------------------------------------------------------------------------------------------ Total $241,933,994 $417,462,525 $1,161,760,633 $1,003,947,782 $436,201,699 ------------------------------------------------------------------------------------------------------------------------
COL VP GLOBAL INFLATION COL VP COL VP COL VP PROT HI YIELD COL VP INC MID CAP GRO GLOBAL BOND, SEC, BOND, OPP, OPP, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% $ 2,907,747 $ 2,469,028 $ 1,286,579 $ 1,704,450 $ 377,233 0.75% 157,753,045 114,163,060 198,443,662 84,052,100 53,649,046 0.85% 27,447,051 22,902,598 24,957,281 22,075,027 5,096,462 0.95% 119,348,218 77,287,981 156,375,160 58,006,316 32,523,850 1.00% 17,110,157 15,166,914 16,680,607 10,046,266 2,592,116 1.05% 21,314,408 15,086,298 16,889,285 15,170,091 3,516,580 1.10% 10,196,567 7,447,410 8,527,288 7,089,287 1,704,438 1.20% 12,253,962 11,117,314 14,447,414 7,836,591 1,771,055 1.25% -- -- -- -- -- 1.25% 1,832,808 -- 1,012,716 -- 164,291 1.25% -- -- -- -- 37,730,656 1.25% 28,937,307 -- 54,897,701 -- -- 1.25% -- -- -- -- -- 1.25% -- 1,531,631 -- 1,218,710 -- 1.30% 8,092,893 8,752,436 5,657,628 6,324,657 839,594 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 3,275,094 3,476,374 2,306,290 2,113,592 199,593 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total $410,469,257 $279,401,044 $501,481,611 $215,637,087 $140,164,914 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 79
COL VP COL VP COL VP SELECT LG MID CAP VAL COL VP SHORT COL VP CAP OPP, S&P 500, DURATION, LG CAP GRO, VAL, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% $ 474,628 $ 295,550 $ 2,327,966 $ 788,858 $ 145,118 0.75% 46,622,805 72,642,490 130,553,630 81,669,512 12,713,660 0.85% 19,774,884 6,333,834 24,553,585 4,369,494 1,731,176 0.95% 26,435,403 50,294,900 104,030,745 46,704,161 7,154,885 1.00% 4,875,402 6,867,696 11,425,243 7,836,821 771,675 1.05% 10,576,601 4,023,922 15,468,255 3,018,532 1,266,119 1.10% 5,125,658 2,169,991 7,177,742 1,129,249 383,626 1.20% 2,263,707 4,006,775 11,065,112 3,610,973 649,530 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 499,256 456,605 2,890,714 308,254 90,338 1.30% 2,949,251 1,040,131 7,062,455 437,790 387,945 1.35% -- 77,974 -- -- -- 1.40% -- 11 -- -- -- 1.45% 578,161 482,485 4,740,714 192,621 53,335 1.55% -- 1,046 -- -- -- 1.60% -- 11 -- -- -- 1.65% -- 11 -- -- -- 1.70% -- 11 -- -- -- 1.75% -- 11 -- -- -- 1.80% -- 11 -- -- -- -------------------------------------------------------------------------------------------------------------------- Total $120,175,756 $148,693,465 $321,296,161 $150,066,265 $25,347,407 --------------------------------------------------------------------------------------------------------------------
COL VP SELECT SM COL VP CAP EMER MKTS COL VP VAL, OPP, INTL OPP, VP AGGR, VP AGGR, SUBACCOUNT CL 3 CL 3 CL 3 CL 2 CL 4 ---------------------------------------------------------------------- 0.55% $ 129,603 $ 2,892,549 $ 433,834 $ 444,374 $ 29,639,087 0.75% 35,098,518 150,581,285 42,051,512 25,431,627 322,324,529 0.85% 2,162,467 33,529,909 4,640,656 89,736,049 796,622,502 0.95% 22,348,366 87,310,878 28,930,636 50,488,806 138,173,678 1.00% 2,294,652 16,662,019 4,358,930 2,350,121 38,181,573 1.05% 1,739,738 18,590,877 3,820,555 5,163,731 238,372,958 1.10% 675,289 10,729,447 2,000,965 10,182,191 188,246,045 1.20% 1,453,914 8,394,990 2,313,490 20,275,389 12,460,600 1.25% -- 84,965,426 -- -- -- 1.25% -- 1,439,543 340,876 -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- 58,545,255 -- -- 1.25% 89,326 -- -- 227,011 5,499,249 1.30% 397,186 5,622,354 1,431,936 2,410,713 49,443,777 1.35% -- -- -- 351,060 -- 1.40% -- -- -- 450,746 -- 1.45% 75,634 1,280,261 236,330 532,125 2,154,321 1.55% -- -- -- 385,734 -- 1.60% -- -- -- 11 -- 1.65% -- -- -- 272,581 -- 1.70% -- -- -- 11 -- 1.75% -- -- -- 11 -- 1.80% -- -- -- 11 -- ---------------------------------------------------------------------------------------------------------------------- Total $66,464,693 $421,999,538 $149,104,975 $208,702,302 $1,821,118,319 ----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 80 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
VP DAVIS VP GS VP CONSERV, VP CONSERV, NY VENTURE, MID CAP VAL, VP MOD, SUBACCOUNT CL 2 CL 4 CL 3 CL 3 CL 2 ------------------------------------------------------------------------ 0.55% $ 1,229,897 $ 8,772,641 $ 276,440 $ 163,252 $ 555,919 0.75% 20,003,411 179,455,614 24,028,672 6,337,176 164,737,474 0.85% 39,595,162 426,223,284 12,969,185 1,099,292 594,474,996 0.95% 40,867,745 135,416,126 12,246,772 3,810,187 407,212,904 1.00% 2,397,124 21,579,544 2,132,245 604,847 13,882,814 1.05% 10,212,153 256,160,065 5,126,835 1,050,990 63,157,808 1.10% 11,873,165 177,229,312 2,602,859 277,440 84,761,415 1.20% 32,729,746 21,659,015 982,745 469,834 292,196,021 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1,837,327 24,902,312 342,139 70,924 8,255,178 1.30% 10,239,400 116,651,635 1,505,992 192,485 42,881,947 1.35% 3,361,753 -- -- -- 8,868,387 1.40% 704,800 -- -- -- 6,924,299 1.45% 3,930,607 41,896,088 360,074 238,612 25,168,171 1.55% 2,102,963 -- -- -- 4,821,021 1.60% 994,381 -- -- -- 3,097,679 1.65% 320,424 -- -- -- 11,091,394 1.70% 1,428,097 -- -- -- 725,833 1.75% 144,892 -- -- -- 11 1.80% 120,788 -- -- -- 179,855 ------------------------------------------------------------------------------------------------------------------------ Total $184,093,835 $1,409,945,636 $62,573,958 $14,315,039 $1,732,993,126 ------------------------------------------------------------------------------------------------------------------------
VP MOD VP MOD VP MOD VP MOD VP MOD, AGGR, AGGR, CONSERV, CONSERV, SUBACCOUNT CL 4 CL 2 CL 4 CL 2 CL 4 --------------------------------------------------------------------------- 0.55% $ 23,719,592 $ 2,236,654 $ 25,989,104 $ 105 $ 5,542,892 0.75% 1,780,360,421 94,726,955 1,250,528,371 56,841,628 487,562,046 0.85% 4,431,214,490 425,823,785 3,141,754,850 139,703,675 1,084,530,687 0.95% 1,040,602,220 222,043,422 572,105,651 133,942,584 359,189,310 1.00% 217,947,127 7,144,875 131,731,443 5,615,171 62,933,858 1.05% 1,841,768,964 37,549,034 1,021,099,544 22,795,873 532,676,818 1.10% 1,416,912,769 48,476,177 712,302,899 27,610,867 433,232,735 1.20% 103,716,577 109,001,050 48,339,121 88,420,393 41,247,778 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 54,897,370 4,134,229 27,244,291 1,978,330 28,766,168 1.30% 601,664,939 22,384,827 212,023,309 17,489,045 250,736,122 1.35% -- 2,145,959 -- 4,420,328 -- 1.40% -- 4,110,467 -- 2,656,971 -- 1.45% 45,035,005 7,899,631 13,620,754 9,348,976 45,601,378 1.55% -- 441,476 -- 5,006,369 -- 1.60% -- 1,031,923 -- 1,074,003 -- 1.65% -- 2,225,407 -- 1,887,986 -- 1.70% -- 11 -- 1,091,707 -- 1.75% -- 36,410 -- 11 -- 1.80% -- 115,708 -- 212,323 -- --------------------------------------------------------------------------------------------------------------------------- Total $11,557,839,474 $991,528,000 $7,156,739,337 $520,096,345 $3,332,019,792 ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 81
WF ADV VT VP PTNRS WF ADV VT INDEX ASSET SM CAP VAL, WANGER WANGER CORE EQ, ALLOC, SUBACCOUNT CL 3 INTL USA CL 2 CL 2 -------------------------------------------------------------------- 0.55% $ 1,470,997 $ 2,991,791 $ 2,211,207 $ 89,873 $ 2,354 0.75% 100,307,870 210,339,274 210,043,362 15,695,673 18,905,145 0.85% 13,475,063 37,648,474 26,722,626 5,202,467 -- 0.95% 52,903,771 128,778,132 135,431,869 10,147,678 13,820,058 1.00% 11,419,444 26,326,682 27,608,423 1,144,118 2,391,294 1.05% 6,751,509 20,842,642 13,593,903 4,486,831 -- 1.10% 3,422,000 10,420,304 7,774,920 2,597,505 -- 1.20% 4,976,186 12,673,812 12,453,048 954,902 973,947 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 521,407 1,246,655 1,129,530 247,667 -- 1.30% 1,586,579 5,963,187 4,096,138 1,617,657 -- 1.35% -- -- -- 2,385 -- 1.40% -- -- -- 88 -- 1.45% 430,845 1,257,632 843,057 524,282 -- 1.55% -- -- -- 12,810 -- 1.60% -- -- -- 487 -- 1.65% -- -- -- 88 -- 1.70% -- -- -- 31,184 -- 1.75% -- -- -- 88 -- 1.80% -- -- -- 88 -- -------------------------------------------------------------------------------------------------------------------- Total $197,265,671 $458,488,585 $441,908,083 $42,755,871 $36,092,798 --------------------------------------------------------------------------------------------------------------------
WF ADV WF ADV WF ADV VT SM CAP VT INTL EQ, VT OPP, GRO, SUBACCOUNT CL 2 CL 2 CL 2 ---------------------------------------- 0.55% $ 479,688 $ 189,550 $ 299,318 0.75% 29,075,075 26,097,325 41,956,275 0.85% 8,503,134 2,601,625 11,534,314 0.95% 21,591,020 14,846,473 26,578,996 1.00% 4,306,852 3,425,276 4,393,267 1.05% 3,790,079 1,415,667 7,219,452 1.10% 2,207,057 885,160 3,068,859 1.20% 2,424,606 1,456,343 2,190,756 1.25% -- -- -- 1.25% -- -- -- 1.25% -- -- -- 1.25% -- -- -- 1.25% -- -- -- 1.25% 251,533 102,598 492,721 1.30% 1,558,043 437,042 1,745,992 1.35% -- 2,159 8,032 1.40% -- 87 89 1.45% 339,276 85,505 544,865 1.55% -- 87 6,140 1.60% -- 489 1,388 1.65% -- 87 89 1.70% -- 39,630 40,661 1.75% -- 87 89 1.80% -- 87 89 ------------------------------------------------------------------------------------------------------- Total $74,526,363 $51,585,277 $100,081,392 -------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 82 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 9. FINANCIAL HIGHLIGHTS The following is a summary for each period in the five year period ended Dec. 31, 2010 of units, net assets and investment income ratios. The accumulation unit values and total returns are based on the variable annuity contracts with the lowest and highest expense ratios.
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 GLOBAL THEMATIC GRO, CL B 2010 14,008 $1.28 to $1.24 $17,720 2.09% 0.55% to 1.45% 17.93% to 16.88% 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%(5) ---------------------------------------------------------------------------------------------------------------------- AB VPS GRO & INC, CL B 2010 110,775 $1.08 to $0.93 $116,597 -- 0.55% to 1.45% 12.18% to 11.18% 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%(5) ---------------------------------------------------------------------------------------------------------------------- AB VPS INTL VAL, CL B 2010 253,176 $1.72 to $0.81 $369,702 2.33% 0.55% to 1.45% 3.73% to 2.80% 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%(5) ---------------------------------------------------------------------------------------------------------------------- AC VP INTL, CL II 2010 40,729 $1.39 to $1.52 $56,423 2.22% 0.55% to 1.20% 12.52% to 11.79% 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% ---------------------------------------------------------------------------------------------------------------------- AC VP MID CAP VAL, CL II 2010 39,383 $1.04 to $1.24 $44,145 1.31% 0.55% to 1.45% 18.33% to 17.26% 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%)(6)to (3.84%) 2006 2,743 $1.16 to $1.16 $3,176 2.31% 0.85% to 1.45% 15.32%(5) to 14.97%(5) ---------------------------------------------------------------------------------------------------------------------- AC VP ULTRA, CL II 2010 26,550 $1.07 to $1.08 $28,287 0.36% 0.55% to 1.45% 15.19% to 14.15% 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%(5) ---------------------------------------------------------------------------------------------------------------------- AC VP VAL, CL II 2010 152,379 $1.47 to $1.16 $206,514 2.04% 0.55% to 1.80% 12.42% to 15.14%(9) 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%(5) ---------------------------------------------------------------------------------------------------------------------- CALVERT VP SRI BAL 2010 24,838 $1.10 to $1.17 $26,851 1.37% 0.55% to 1.20% 11.48% to 10.76% 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% ---------------------------------------------------------------------------------------------------------------------- COL VP MARSICO GRO, CL 1 2010 211,659 $1.10 to $1.13 $233,638 0.16% 0.55% to 1.45% 20.88% to 19.80% 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%(4) to 8.65%(5) ----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 83
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) ----------------------------------------------------------------------------------------------------------------- COL VP MARSICO INTL OPP, CL 2 2010 70,989 $1.01 to $1.22 $73,764 0.67% 0.55% to 1.80% 13.11% to 21.28%(9) 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%(4) to 19.72%(5) ---------------------------------------------------------------------------------------------------------------------- CS COMMODITY RETURN 2010 98,350 $1.03 to $1.04 $101,183 6.87% 0.55% to 1.45% 16.02% to 14.98% 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%)(4)to 0.65%(5) ---------------------------------------------------------------------------------------------------------------------- EV VT FLOATING-RATE INC 2010 214,175 $1.18 to $1.13 $247,939 4.04% 0.55% to 1.45% 8.52% to 7.55% 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%(4) to 2.50%(5) ---------------------------------------------------------------------------------------------------------------------- FID VIP CONTRAFUND, SERV CL 2 2010 474,193 $1.08 to $1.20 $512,183 0.82% 0.55% to 1.80% 16.29% to 19.27%(9) 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%(4) to 8.94%(5) ---------------------------------------------------------------------------------------------------------------------- FID VIP GRO & INC, SERV CL 2 2010 139,138 $1.18 to $1.16 $160,712 0.45% 0.55% to 1.20% 13.92% to 13.18% 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% ---------------------------------------------------------------------------------------------------------------------- FID VIP MID CAP, SERV CL 2 2010 328,665 $2.55 to $1.24 $708,606 0.09% 0.55% to 1.80% 27.86% to 23.03%(9) 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%(5) ---------------------------------------------------------------------------------------------------------------------- FID VIP OVERSEAS, SERV CL 2 2010 87,539 $1.52 to $1.02 $122,216 1.12% 0.55% to 1.45% 12.21% to 11.21% 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%(5) ---------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK GLOBAL REAL EST, CL 2 2010 103,135 $2.10 to $0.74 $172,609 2.86% 0.55% to 1.45% 20.31% to 19.23% 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%(5) ---------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK SM CAP VAL, CL 2 2010 91,828 $2.64 to $1.30 $193,362 0.75% 0.55% to 1.80% 27.52% to 29.36%(9) 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%(5) ---------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SEC, CL 2 2010 141,032 $1.36 to $1.12 $174,040 1.55% 0.55% to 1.80% 10.58% to 11.29%(9) 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%(5) ----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 84 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 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 MID CAP VAL, INST 2010 122,523 $2.86 to $1.98 $328,204 0.65% 0.55% to 1.20% 24.32% to 23.51% 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% ---------------------------------------------------------------------------------------------------------------------- GS VIT STRUCTD U.S. EQ, INST 2010 174,647 $0.98 to $0.90 $167,514 1.40% 0.55% to 1.45% 12.22% to 11.22% 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%(5) ---------------------------------------------------------------------------------------------------------------------- INVESCO VI CAP APPR, SER II 2010 106,211 $0.99 to $0.91 $102,947 0.52% 0.55% to 1.45% 14.57% to 13.55% 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%(5) ---------------------------------------------------------------------------------------------------------------------- INVESCO VI CAP DEV, SER II 2010 23,414 $1.43 to $1.02 $30,871 -- 0.55% to 1.45% 17.82% to 16.77% 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%(5) ---------------------------------------------------------------------------------------------------------------------- INVESCO VI DYN, SER I 2010 5,021 $1.29 to $1.33 $6,332 -- 0.55% to 1.20% 23.15% to 22.35% 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% ---------------------------------------------------------------------------------------------------------------------- INVESCO VI FIN SERV, SER I 2010 23,642 $0.60 to $0.61 $14,006 0.10% 0.55% to 1.20% 9.71% to 9.00% 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% ---------------------------------------------------------------------------------------------------------------------- INVESCO VI GLOBAL HLTH, SER II 2010 20,785 $1.07 to $1.08 $22,251 -- 0.55% to 1.45% 4.43% to 3.49% 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%(4) to 8.12%(5) ---------------------------------------------------------------------------------------------------------------------- INVESCO VI INTL GRO, SER II 2010 90,302 $1.40 to $1.20 $121,171 0.57% 0.55% to 1.45% 11.99% to 10.99% 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%(5) ---------------------------------------------------------------------------------------------------------------------- INVESCO VI TECH, SER I 2010 37,411 $0.90 to $1.00 $33,424 -- 0.55% to 1.20% 20.64% to 19.86% 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% ---------------------------------------------------------------------------------------------------------------------- INVESCO VANK VI COMSTOCK, SER II 2010 214,858 $1.26 to $0.99 $257,010 0.22% 0.55% to 1.45% 15.06% to 14.03% 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%(5) ----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 85
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) ----------------------------------------------------------------------------------------------------------------- JANUS ASPEN GLOBAL TECH, SERV 2010 43,886 $0.57 to $1.36 $24,760 -- 0.55% to 1.20% 23.71% to 22.91% 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% ---------------------------------------------------------------------------------------------------------------------- JANUS ASPEN JANUS, SERV 2010 85,313 $0.98 to $1.17 $82,233 0.05% 0.55% to 1.80% 13.63% to 16.30%(9) 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%(6) to 5.64%(6) 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- JANUS ASPEN OVERSEAS, SERV 2010 97,399 $1.82 to $3.02 $175,076 0.53% 0.55% to 1.20% 24.33% to 23.53% 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% ---------------------------------------------------------------------------------------------------------------------- MFS INV GRO STOCK, SERV CL 2010 105,423 $0.76 to $1.13 $82,960 0.29% 0.55% to 1.45% 11.54% to 10.54% 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%(5) ---------------------------------------------------------------------------------------------------------------------- MFS NEW DIS, SERV CL 2010 47,235 $1.35 to $1.51 $62,698 -- 0.55% to 1.20% 35.20% to 34.32% 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% ---------------------------------------------------------------------------------------------------------------------- MFS UTILITIES, SERV CL 2010 121,459 $2.11 to $1.17 $229,995 3.10% 0.55% to 1.80% 12.89% to 15.70%(9) 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%(5) ---------------------------------------------------------------------------------------------------------------------- MS UIF GLOBAL REAL EST, CL II 2010 69,097 $1.06 to $1.07 $73,116 9.13% 0.55% to 1.45% 21.65% to 20.56% 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%(4) to 26.94%(5) ---------------------------------------------------------------------------------------------------------------------- MS UIF MID CAP GRO, CL II 2010 45,797 $1.31 to $1.26 $60,967 -- 0.55% to 1.80% 31.54% to 25.27%(9) 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%)(4)to 7.27%(5) ---------------------------------------------------------------------------------------------------------------------- NB AMT INTL, CL S 2010 23,892 $0.93 to $1.00 $22,804 1.80% 0.55% to 1.45% 21.35% to 20.26% 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%(4) to 16.75%(5) ---------------------------------------------------------------------------------------------------------------------- OPPEN GLOBAL SEC VA, SERV 2010 76,283 $1.53 to $1.18 $107,678 1.23% 0.55% to 1.80% 15.07% to 17.77%(9) 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%(5) ----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 86 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 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) ----------------------------------------------------------------------------------------------------------------- OPPEN GLOBAL STRATEGIC INC VA, SRV 2010 706,224 $1.45 to $1.29 $985,348 13.38% 0.55% to 1.45% 14.14% to 13.12% 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%(5) ---------------------------------------------------------------------------------------------------------------------- OPPEN MAIN ST SM MID CAP VA, SERV 2010 58,250 $1.45 to $1.22 $76,560 0.43% 0.55% to 1.80% 22.38% to 21.39%(9) 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%(5) ---------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET, ADVISOR CL 2010 192,371 $1.27 to $1.06 $244,031 4.92% 0.55% to 1.80% 12.39% to 6.05%(9) 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%(4) to 6.59%(5) ---------------------------------------------------------------------------------------------------------------------- PUT VT GLOBAL HLTH CARE, CL IB 2010 18,734 $1.17 to $1.15 $21,455 1.99% 0.55% to 1.20% 1.91% to 1.25% 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% ---------------------------------------------------------------------------------------------------------------------- PUT VT INTL EQ, CL IB 2010 24,302 $1.34 to $1.39 $32,041 3.67% 0.55% to 1.20% 9.42% to 8.71% 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% ---------------------------------------------------------------------------------------------------------------------- PUT VT MULTI-CAP GRO, CL IB 2010 29,434 $1.13 to $1.13 $33,346 -- 0.55% to 1.20% 13.15%(10)to 12.95%(10) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, AGGR 2010 23,395 $0.97 to $1.15 $22,893 -- 0.55% to 1.80% 11.91% to 15.35%(9) 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%)(7)to (30.12%)(7) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, CONSERV 2010 56,302 $1.06 to $1.06 $59,143 -- 0.55% to 1.80% 8.17% to 6.45%(9) 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%)(7)to (16.74%)(7) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, MOD 2010 111,305 $1.00 to $1.11 $110,886 -- 0.55% to 1.80% 9.77% to 11.06%(9) 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%)(7)to (25.03%)(7) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, MOD AGGR 2010 54,254 $0.98 to $1.13 $55,524 -- 0.55% to 1.80% 10.77% to 12.99%(9) 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%)(7)to (27.47%)(7) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 87
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) ----------------------------------------------------------------------------------------------------------------- DISC ASSET ALLOC, MOD CONSERV 2010 59,825 $1.02 to $1.09 $61,135 -- 0.55% to 1.80% 9.06% to 8.62%(9) 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%)(7)to (21.43%)(7) 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- COL VP BAL, CL 3 2010 182,004 $1.22 to $1.14 $241,934 -- 0.55% to 1.80% 11.91% to 13.84%(9) 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP CASH MGMT, CL 3 2010 361,513 $1.23 to $1.03 $417,463 0.01% 0.55% to 1.45% (0.55%) to (1.42%) 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP DIV BOND, CL 3 2010 773,783 $1.63 to $1.21 $1,161,761 2.87% 0.55% to 1.45% 7.73% to 6.76% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP DIV EQ INC, CL 3 2010 652,140 $1.71 to $1.02 $1,003,948 -- 0.55% to 1.45% 16.19% to 15.15% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP DYN EQ, CL 3 2010 471,053 $0.82 to $0.94 $436,202 -- 0.55% to 1.45% 16.69% to 15.64% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP GLOBAL BOND, CL 3 2010 247,731 $1.82 to $1.26 $410,469 3.34% 0.55% to 1.45% 6.00% to 5.05% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP GLOBAL INFLATION PROT SEC, CL 3 2010 230,072 $1.24 to $1.17 $279,401 0.79% 0.55% to 1.45% 3.56% to 2.63% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP HI YIELD BOND, CL 3 2010 288,799 $1.82 to $1.35 $501,482 9.04% 0.55% to 1.45% 13.34% to 12.32% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP INC OPP, CL 3 2010 148,512 $1.51 to $1.35 $215,637 3.28% 0.55% to 1.45% 12.43% to 11.42% 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%(5) ----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 88 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 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) ----------------------------------------------------------------------------------------------------------------- COL VP MID CAP GRO OPP, CL 3 2010 100,048 $1.58 to $1.28 $140,165 -- 0.55% to 1.45% 25.59% to 24.46% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP MID CAP VAL OPP, CL 3 2010 94,586 $1.40 to $1.08 $120,176 -- 0.55% to 1.45% 21.84% to 20.75% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP S&P 500, CL 3 2010 156,454 $0.94 to $1.17 $148,693 -- 0.55% to 1.80% 14.08% to 17.32%(9) 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP SHORT DURATION, CL 3 2010 251,534 $1.39 to $1.08 $321,296 1.01% 0.55% to 1.45% 2.44% to 1.52% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP LG CAP GRO, CL 3 2010 218,835 $0.66 to $0.98 $150,066 -- 0.55% to 1.45% 16.52% to 15.47% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP SELECT LG CAP VAL, CL 3 2010 21,862 $1.21 to $1.00 $25,347 -- 0.55% to 1.45% 19.86% to 18.78% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP SELECT SM CAP VAL, CL 3 2010 39,284 $1.82 to $1.08 $66,465 -- 0.55% to 1.45% 26.10% to 24.97% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP EMER MKTS OPP, CL 3 2010 179,452 $2.75 to $1.69 $422,000 1.50% 0.55% to 1.45% 19.10% to 18.03% 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%(5) ---------------------------------------------------------------------------------------------------------------------- COL VP INTL OPP, CL 3 2010 124,228 $1.09 to $1.08 $149,105 1.44% 0.55% to 1.45% 13.27% to 12.25% 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%(5) ---------------------------------------------------------------------------------------------------------------------- VP AGGR, CL 2 2010 186,004 $1.12 to $1.16 $208,702 -- 0.55% to 1.80% 13.63%(8) to 16.17%(9) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 89
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 AGGR, CL 4 2010 1,623,318 $1.12 to $1.12 $1,821,118 -- 0.55% to 1.45% 13.63%(8) to 12.96%(8) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- VP CONSERV, CL 2 2010 176,204 $1.05 to $1.05 $184,094 -- 0.55% to 1.80% 5.56%(8) to 4.56%(9) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- VP CONSERV, CL 4 2010 1,349,528 $1.05 to $1.04 $1,409,946 -- 0.55% to 1.45% 5.56%(8) to 4.94%(8) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- VP DAVIS NY VENTURE, CL 3 2010 63,234 $1.00 to $0.98 $62,574 -- 0.55% to 1.45% 10.91% to 9.92% 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%(4) to 10.70%(5) ---------------------------------------------------------------------------------------------------------------------- VP GS MID CAP VAL, CL 3 2010 10,676 $1.42 to $1.16 $14,315 -- 0.55% to 1.45% 21.20% to 20.11% 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%(5) ---------------------------------------------------------------------------------------------------------------------- VP MOD, CL 2 2010 1,584,363 $1.10 to $1.10 $1,732,993 -- 0.55% to 1.80% 9.82%(8) to 10.43%(9) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- VP MOD, CL 4 2010 10,566,949 $1.10 to $1.09 $11,557,839 -- 0.55% to 1.45% 9.82%(8) to 9.17%(8) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- VP MOD AGGR, CL 2 2010 891,747 $1.11 to $1.13 $991,528 -- 0.55% to 1.80% 11.61%(8) to 13.26%(9) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- VP MOD AGGR, CL 4 2010 6,431,039 $1.12 to $1.11 $7,156,739 -- 0.55% to 1.45% 11.71%(8) to 11.05%(8) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- VP MOD CONSERV, CL 2 2010 486,156 $1.07 to $1.07 $520,096 -- 0.55% to 1.80% 7.42%(8) to 7.37%(9) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 90 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 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 MOD CONSERV, CL 4 2010 3,111,865 $1.07 to $1.07 $3,332,020 -- 0.55% to 1.45% 7.52%(8) to 6.89%(8) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- 2006 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- VP PTNRS SM CAP VAL, CL 3 2010 106,425 $2.08 to $1.17 $197,266 -- 0.55% to 1.45% 23.75% to 22.64% 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%(5) ---------------------------------------------------------------------------------------------------------------------- WANGER INTL 2010 199,414 $2.67 to $1.38 $458,489 1.70% 0.55% to 1.45% 24.23% to 23.12% 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%(5) ---------------------------------------------------------------------------------------------------------------------- WANGER USA 2010 240,629 $2.09 to $1.13 $441,908 -- 0.55% to 1.45% 22.68% to 21.58% 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%(5) ---------------------------------------------------------------------------------------------------------------------- WF ADV VT CORE EQ, CL 2 2010 34,483 $1.26 to $1.22 $42,756 0.45% 0.55% to 1.80% 15.54% to 21.78%(9) 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%(5) ---------------------------------------------------------------------------------------------------------------------- WF ADV VT INDEX ASSET ALLOC, CL 2 2010 29,127 $1.26 to $1.26 $36,093 1.75% 0.55% to 1.20% 12.67% to 11.94% 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% ---------------------------------------------------------------------------------------------------------------------- WF ADV VT INTL EQ, CL 2 2010 57,745 $1.43 to $1.00 $74,526 1.67% 0.55% to 1.45% 15.86% to 14.83% 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%(5) ---------------------------------------------------------------------------------------------------------------------- WF ADV VT OPP, CL 2 2010 34,393 $1.57 to $1.23 $51,585 0.76% 0.55% to 1.80% 23.08% to 22.05%(9) 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%(5) ---------------------------------------------------------------------------------------------------------------------- WF ADV VT SM CAP GRO, CL 2 2010 68,151 $1.51 to $1.27 $100,081 -- 0.55% to 1.80% 26.08% to 26.74%(9) 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%(5) ----------------------------------------------------------------------------------------------------------------------
(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. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 91 (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 1, 2006. (5) New subaccount operations commenced on June 26, 2006. (6) New subaccount operations commenced on May 1, 2007. (7) New subaccount operations commenced on May 1, 2008. (8) New subaccount operations commenced on May 7, 2010. (9) New subaccount operations commenced on July 19, 2010. (10) New subaccount operations commenced on Sept. 24, 2010. -------------------------------------------------------------------------------- 92 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 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, 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 --------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/01/2005) Accumulation unit value at beginning of period $1.08 $0.71 $1.36 $1.14 $1.06 $1.00 -- -- -- -- Accumulation unit value at end of period $1.28 $1.08 $0.71 $1.36 $1.14 $1.06 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 76 69 49 61 653 144 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (08/13/2001) Accumulation unit value at beginning of period $0.97 $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 $1.08 $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) 321 388 452 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 $1.66 $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 $1.72 $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) 1,076 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 $1.24 $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 $1.39 $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) 65 263 286 389 365 314 127 5 254 1 --------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (05/01/2007) Accumulation unit value at beginning of period $0.88 $0.68 $0.90 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $1.04 $0.88 $0.68 $0.90 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 153 1,289 1,327 1,710 -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/01/2005) Accumulation unit value at beginning of period $0.93 $0.69 $1.20 $1.00 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.07 $0.93 $0.69 $1.20 $1.00 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 73 91 72 187 2,939 618 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (08/13/2001) Accumulation unit value at beginning of period $1.31 $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 $1.47 $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) 525 469 483 848 1,060 1,104 1,064 673 483 146 --------------------------------------------------------------------------------------------------------------------------- CALVERT VARIABLE SERIES, INC. VP SRI BALANCED PORTFOLIO (05/01/2000) Accumulation unit value at beginning of period $0.99 $0.79 $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 $0.96 Accumulation unit value at end of period $1.10 $0.99 $0.79 $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 6 10 24 21 18 5 54 8 8 6 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - MARSICO GROWTH FUND, CLASS 1 (05/01/2006) Accumulation unit value at beginning of period $0.91 $0.72 $1.20 $1.02 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.10 $0.91 $0.72 $1.20 $1.02 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 699 7,497 6,506 5,466 2,834 -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - MARSICO INTERNATIONAL OPPORTUNITIES FUND, CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.89 $0.65 $1.27 $1.07 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.01 $0.89 $0.65 $1.27 $1.07 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 459 810 730 772 2,194 -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (05/01/2006) Accumulation unit value at beginning of period $0.89 $0.75 $1.13 $0.97 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.03 $0.89 $0.75 $1.13 $0.97 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 533 605 506 677 1,600 -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (05/01/2006) Accumulation unit value at beginning of period $1.08 $0.76 $1.04 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.18 $1.08 $0.76 $1.04 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,433 2,787 2,025 2,116 2,567 -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (05/01/2006) Accumulation unit value at beginning of period $0.93 $0.69 $1.21 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.08 $0.93 $0.69 $1.21 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,532 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 $1.04 $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 $1.18 $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) 473 805 963 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 $1.99 $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 $2.55 $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) 1,379 2,734 3,823 3,786 4,011 2,702 1,034 510 325 132 ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 93
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 --------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.35 $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 $1.52 $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) 548 558 771 890 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 $1.75 $1.48 $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 $1.26 Accumulation unit value at end of period $2.10 $1.75 $1.48 $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 Number of accumulation units outstanding at end of period (000 omitted) 203 232 262 688 836 667 487 349 205 211 --------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (09/15/1999) Accumulation unit value at beginning of period $2.07 $1.61 $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 $1.20 Accumulation unit value at end of period $2.64 $2.07 $1.61 $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 Number of accumulation units outstanding at end of period (000 omitted) 215 352 465 576 738 593 414 242 282 150 --------------------------------------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.23 $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 $1.36 $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) 354 525 670 761 865 716 533 667 130 -- --------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $2.30 $1.74 $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 $1.24 Accumulation unit value at end of period $2.86 $2.30 $1.74 $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 Number of accumulation units outstanding at end of period (000 omitted) 738 922 1,060 2,008 2,339 1,930 834 639 450 200 --------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (09/15/1999) Accumulation unit value at beginning of period $0.87 $0.72 $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 $0.99 Accumulation unit value at end of period $0.98 $0.87 $0.72 $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 745 826 1,128 1,678 2,499 3,019 1,522 735 694 943 --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $0.86 $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 $0.99 $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) 300 451 495 371 489 1,554 110 85 4 6 --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (08/13/2001) Accumulation unit value at beginning of period $1.21 $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 $1.43 $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) 19 54 71 208 183 141 107 284 180 3 --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. DYNAMICS FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $1.04 $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 $1.29 $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 3 8 12 11 19 18 249 149 1 --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. FINANCIAL SERVICES FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.55 $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 $0.60 $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) 187 606 149 54 158 140 132 66 3 -- --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.02 $0.81 $1.14 $1.03 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.02 $0.81 $1.14 $1.03 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 132 403 73 115 1,114 -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/01/2005) Accumulation unit value at beginning of period $1.25 $0.93 $1.58 $1.39 $1.09 $1.00 -- -- -- -- Accumulation unit value at end of period $1.40 $1.25 $0.93 $1.58 $1.39 $1.09 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 380 2,658 2,794 1,479 105 5 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. TECHNOLOGY FUND, SERIES I SHARES (08/13/2001) Accumulation unit value at beginning of period $0.75 $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 $0.90 $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) 618 411 351 275 418 532 249 96 3 -- --------------------------------------------------------------------------------------------------------------------------- INVESCO VAN KAMPEN V.I. COMSTOCK FUND, SERIES II SHARES (02/04/2004) Accumulation unit value at beginning of period $1.09 $0.85 $1.34 $1.38 $1.19 $1.15 $1.00 -- -- -- Accumulation unit value at end of period $1.26 $1.09 $0.85 $1.34 $1.38 $1.19 $1.15 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 719 2,639 3,700 3,639 4,892 3,642 641 -- -- -- --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $0.46 $0.29 $0.53 $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 $0.68 Accumulation unit value at end of period $0.57 $0.46 $0.29 $0.53 $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 Number of accumulation units outstanding at end of period (000 omitted) 100 41 22 37 180 200 333 426 343 202 --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (05/01/2007) Accumulation unit value at beginning of period $0.86 $0.63 $1.06 $1.00 -- -- -- -- -- -- Accumulation unit value at end of period $0.98 $0.86 $0.63 $1.06 -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 568 6,880 6,240 5,448 -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 94 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (05/01/2000) Accumulation unit value at beginning of period $1.47 $0.82 $1.73 $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 $0.80 Accumulation unit value at end of period $1.82 $1.47 $0.82 $1.73 $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 Number of accumulation units outstanding at end of period (000 omitted) 226 395 275 272 231 250 132 295 875 606 --------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $0.68 $0.49 $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 $0.91 Accumulation unit value at end of period $0.76 $0.68 $0.49 $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 Number of accumulation units outstanding at end of period (000 omitted) 178 406 260 317 481 640 522 874 785 913 --------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (05/01/2000) Accumulation unit value at beginning of period $1.00 $0.62 $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 $0.96 Accumulation unit value at end of period $1.35 $1.00 $0.62 $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 Number of accumulation units outstanding at end of period (000 omitted) 102 190 92 130 243 558 576 622 485 548 --------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (08/13/2001) Accumulation unit value at beginning of period $1.86 $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 $2.11 $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) 500 562 821 765 1,065 588 211 139 139 138 --------------------------------------------------------------------------------------------------------------------------- MORGAN STANLEY UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $0.87 $0.62 $1.12 $1.23 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.06 $0.87 $0.62 $1.12 $1.23 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 451 1,794 1,961 1,463 1,473 -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- MORGAN STANLEY UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (05/01/2006) Accumulation unit value at beginning of period $1.00 $0.64 $1.21 $0.99 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.31 $1.00 $0.64 $1.21 $0.99 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 317 356 270 140 1,068 -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (05/01/2006) Accumulation unit value at beginning of period $0.76 $0.57 $1.07 $1.05 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.93 $0.76 $0.57 $1.07 $1.05 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 142 1,718 1,971 2,116 1,957 -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.33 $0.96 $1.62 $1.53 $1.31 $1.16 $1.00 -- -- -- Accumulation unit value at end of period $1.53 $1.33 $0.96 $1.62 $1.53 $1.31 $1.16 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 524 604 777 1,099 1,309 756 158 -- -- -- --------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.27 $1.08 $1.27 $1.16 $1.09 $1.07 $1.00 -- -- -- Accumulation unit value at end of period $1.45 $1.27 $1.08 $1.27 $1.16 $1.09 $1.07 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 3,938 8,634 8,498 9,223 6,331 3,173 403 -- -- -- --------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND/VA, SERVICE SHARES (02/04/2004) Accumulation unit value at beginning of period $1.18 $0.87 $1.41 $1.44 $1.26 $1.16 $1.00 -- -- -- Accumulation unit value at end of period $1.45 $1.18 $0.87 $1.41 $1.44 $1.26 $1.16 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 368 717 646 676 773 643 432 -- -- -- --------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (05/01/2006) Accumulation unit value at beginning of period $1.13 $0.94 $1.12 $1.04 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.27 $1.13 $0.94 $1.12 $1.04 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 590 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 $1.15 $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 $1.17 $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) 40 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 $1.23 $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 $1.34 $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) 32 57 91 69 164 145 194 207 881 418 --------------------------------------------------------------------------------------------------------------------------- PUTNAM VT MULTI-CAP GROWTH FUND - CLASS IB SHARES (09/24/2010) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.13 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 139 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- DISCIPLINED ASSET ALLOCATION PORTFOLIOS - AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.87 $0.70 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.97 $0.87 $0.70 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 581 914 547 -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- DISCIPLINED ASSET ALLOCATION PORTFOLIOS - CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.98 $0.84 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.06 $0.98 $0.84 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 33 50 -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 95
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 --------------------------------------------------------------------------------------------------------------------------- DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATE (05/01/2008) Accumulation unit value at beginning of period $0.91 $0.76 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.00 $0.91 $0.76 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 111 41 -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY AGGRESSIVE (05/01/2008) Accumulation unit value at beginning of period $0.89 $0.73 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $0.98 $0.89 $0.73 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 85 83 67 -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- DISCIPLINED ASSET ALLOCATION PORTFOLIOS - MODERATELY CONSERVATIVE (05/01/2008) Accumulation unit value at beginning of period $0.94 $0.79 $1.00 -- -- -- -- -- -- -- Accumulation unit value at end of period $1.02 $0.94 $0.79 -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) -- 3 -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.09 $0.88 $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 $1.06 Accumulation unit value at end of period $1.22 $1.09 $0.88 $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 Number of accumulation units outstanding at end of period (000 omitted) 634 733 602 372 459 623 257 221 120 296 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3)* (09/15/1999) Accumulation unit value at beginning of period $1.24 $1.25 $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 $1.07 Accumulation unit value at end of period $1.23 $1.24 $1.25 $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 Number of accumulation units outstanding at end of period (000 omitted) 613 2,492 10,988 11,779 8,286 4,504 2,098 447 3,911 5,658 *The 7-day simple and compound yields for Columbia Variable Portfolio - Cash Management Fund (Class 3) at Dec. 31, 2010 were (0.63%) and (0.63%), respectively. --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.51 $1.33 $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 $1.06 Accumulation unit value at end of period $1.63 $1.51 $1.33 $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 Number of accumulation units outstanding at end of period (000 omitted) 3,828 10,140 8,140 9,540 7,272 3,619 2,145 1,691 762 985 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.47 $1.16 $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 $1.01 Accumulation unit value at end of period $1.71 $1.47 $1.16 $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 Number of accumulation units outstanding at end of period (000 omitted) 2,153 7,610 8,565 9,289 9,434 5,165 3,041 1,239 1,262 281 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.70 $0.57 $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 $0.94 Accumulation unit value at end of period $0.82 $0.70 $0.57 $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 Number of accumulation units outstanding at end of period (000 omitted) 565 877 1,397 1,682 2,453 3,121 1,484 172 202 291 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.72 $1.55 $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 $1.03 Accumulation unit value at end of period $1.82 $1.72 $1.55 $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 Number of accumulation units outstanding at end of period (000 omitted) 1,599 3,215 2,861 3,115 2,645 1,377 741 714 251 249 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.20 $1.13 $1.13 $1.06 $1.05 $1.03 $1.00 -- -- -- Accumulation unit value at end of period $1.24 $1.20 $1.13 $1.13 $1.06 $1.05 $1.03 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,988 5,705 2,307 2,713 2,959 1,455 5,004 -- -- -- --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.61 $1.05 $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 $0.91 Accumulation unit value at end of period $1.82 $1.61 $1.05 $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 Number of accumulation units outstanding at end of period (000 omitted) 706 639 713 1,605 1,925 2,397 2,886 4,230 1,480 1,549 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (09/13/2004) Accumulation unit value at beginning of period $1.34 $0.95 $1.17 $1.15 $1.07 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $1.51 $1.34 $0.95 $1.17 $1.15 $1.07 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,132 5,111 2,233 2,599 2,358 493 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - MID CAP GROWTH OPPORTUNITY FUND (CLASS 3) (05/01/2001) Accumulation unit value at beginning of period $1.26 $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 $1.58 $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) 238 363 242 268 450 655 523 578 328 38 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - MID CAP VALUE OPPORTUNITY FUND (CLASS 3) (05/02/2005) Accumulation unit value at beginning of period $1.15 $0.82 $1.50 $1.37 $1.20 $1.00 -- -- -- -- Accumulation unit value at end of period $1.40 $1.15 $0.82 $1.50 $1.37 $1.20 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 338 1,292 1,658 1,406 2,575 115 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $0.83 $0.66 $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 $0.90 Accumulation unit value at end of period $0.94 $0.83 $0.66 $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 Number of accumulation units outstanding at end of period (000 omitted) 314 741 1,447 1,022 1,170 2,054 1,958 1,381 973 770 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.36 $1.30 $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 $1.09 Accumulation unit value at end of period $1.39 $1.36 $1.30 $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,670 825 1,394 817 493 688 870 1,097 1,275 592 ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 96 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - LARGE CAP GROWTH FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.57 $0.42 $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 $0.94 Accumulation unit value at end of period $0.66 $0.57 $0.42 $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 Number of accumulation units outstanding at end of period (000 omitted) 1,192 2,260 2,601 3,768 6,049 6,193 2,153 1,664 1,064 1,285 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - SELECT LARGE-CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $1.01 $0.81 $1.34 $1.35 $1.14 $1.10 $1.00 -- -- -- Accumulation unit value at end of period $1.21 $1.01 $0.81 $1.34 $1.35 $1.14 $1.10 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 120 195 67 67 184 92 65 -- -- -- --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - SELECT SMALLER-CAP VALUE FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $1.44 $1.04 $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 $1.16 Accumulation unit value at end of period $1.82 $1.44 $1.04 $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 Number of accumulation units outstanding at end of period (000 omitted) 71 57 113 214 333 514 779 660 393 378 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - EMERGING MARKETS OPPORTUNITY FUND (CLASS 3) (05/01/2000) Accumulation unit value at beginning of period $2.31 $1.33 $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 $0.75 Accumulation unit value at end of period $2.75 $2.31 $1.33 $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 1,028 1,522 2,437 1,993 2,144 1,491 475 115 277 3 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (09/15/1999) Accumulation unit value at beginning of period $0.96 $0.76 $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 $0.95 Accumulation unit value at end of period $1.09 $0.96 $0.76 $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 399 910 1,080 1,307 1,343 1,252 848 143 488 65 --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - AGGRESSIVE PORTFOLIO (CLASS 2) (05/07/2010) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 395 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - AGGRESSIVE PORTFOLIO (CLASS 4) (05/07/2010) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,354 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - CONSERVATIVE PORTFOLIO (CLASS 2) (05/07/2010) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.05 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,174 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - CONSERVATIVE PORTFOLIO (CLASS 4) (05/07/2010) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.05 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 8,371 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (05/01/2006) Accumulation unit value at beginning of period $0.90 $0.69 $1.13 $1.09 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.00 $0.90 $0.69 $1.13 $1.09 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 276 7,045 4,641 3,570 3,666 -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (02/04/2004) Accumulation unit value at beginning of period $1.17 $0.86 $1.37 $1.30 $1.13 $1.13 $1.00 -- -- -- Accumulation unit value at end of period $1.42 $1.17 $0.86 $1.37 $1.30 $1.13 $1.13 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 115 176 74 115 77 235 182 -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - MODERATE PORTFOLIO (CLASS 2) (05/07/2010) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.10 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 507 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - MODERATE PORTFOLIO (CLASS 4) (05/07/2010) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.10 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 21,627 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - MODERATELY AGGRESSIVE PORTFOLIO (CLASS 2) (05/07/2010) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.11 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,007 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - MODERATELY AGGRESSIVE PORTFOLIO (CLASS 4) (05/07/2010) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.12 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 23,294 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - MODERATELY CONSERVATIVE PORTFOLIO (CLASS 2) (05/07/2010) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.07 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) -- -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 97
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - MODERATELY CONSERVATIVE PORTFOLIO (CLASS 4) (05/07/2010) Accumulation unit value at beginning of period $1.00 -- -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.07 -- -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 5,162 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (08/14/2001) Accumulation unit value at beginning of period $1.68 $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 $2.08 $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) 707 3,210 3,353 3,487 2,495 2,068 860 982 627 411 --------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (09/15/1999) Accumulation unit value at beginning of period $2.15 $1.44 $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 $1.09 Accumulation unit value at end of period $2.67 $2.15 $1.44 $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 Number of accumulation units outstanding at end of period (000 omitted) 1,120 2,334 2,433 2,932 3,471 2,814 1,701 1,136 1,484 769 --------------------------------------------------------------------------------------------------------------------------- WANGER USA (09/15/1999) Accumulation unit value at beginning of period $1.71 $1.21 $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 $1.05 Accumulation unit value at end of period $2.09 $1.71 $1.21 $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,057 2,350 3,272 3,659 3,852 2,709 1,415 1,250 847 820 --------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT CORE EQUITY FUND - CLASS 2 (12/08/2003) Accumulation unit value at beginning of period $1.09 $0.81 $1.22 $1.13 $1.01 $0.94 $0.86 $0.83 -- -- Accumulation unit value at end of period $1.26 $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) 71 -- 47 47 56 56 49 90 -- -- --------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INDEX ASSET ALLOCATION FUND - CLASS 2 (05/01/2001) Accumulation unit value at beginning of period $1.12 $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 $1.26 $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) 2 4 4 7 31 355 91 66 29 8 --------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL EQUITY FUND - CLASS 2 (02/04/2004) Accumulation unit value at beginning of period $1.23 $1.07 $1.84 $1.62 $1.32 $1.15 $1.00 -- -- -- Accumulation unit value at end of period $1.43 $1.23 $1.07 $1.84 $1.62 $1.32 $1.15 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 337 2,398 408 500 669 661 76 -- -- -- --------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND - CLASS 2 (08/13/2001) Accumulation unit value at beginning of period $1.28 $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 $1.57 $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) 121 298 182 331 421 467 408 445 314 136 --------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND - CLASS 2 (05/01/2001) Accumulation unit value at beginning of period $1.20 $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 $1.51 $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) 198 225 258 231 84 35 10 10 6 2 ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 98 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE VARIABLE ANNUITY - BAND 3 - 2010 ANNUAL REPORT 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, 2010 and 2009, 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, 2010. 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, 2010 and 2009, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2010, 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, and in 2008 the Company adopted new accounting guidance related to the measurement of fair value. /s/ Ernst & Young LLP Minneapolis, Minnesota February 23, 2011 F-1 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS (IN MILLIONS, EXCEPT SHARE AMOUNTS)
DECEMBER 31, 2010 2009 ASSETS Investments: Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2010, $24,818; 2009, $25,142) $ 26,442 $25,999 Common and preferred stocks, at fair value (cost: 2010, $1; 2009, $30) 2 23 Commercial mortgage loans, at cost (less allowance for loan losses: 2010, $36; 2009, $30) 2,470 2,532 Policy loans 729 715 Trading securities and other investments 496 310 ------------------------------------------------------------------------------------------------- Total investments 30,139 29,579 Cash and cash equivalents 76 811 Restricted cash 66 184 Reinsurance recoverables 1,829 1,688 Deferred income taxes, net -- 63 Other receivables 166 332 Accrued investment income 309 303 Deferred acquisition costs 4,578 4,285 Deferred sales inducement costs 545 524 Other assets 1,123 936 Separate account assets 63,795 54,267 ------------------------------------------------------------------------------------------------- Total assets $102,626 $92,972 ================================================================================================= LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities: Future policy benefits $ 29,680 $30,383 Policy claims and other policyholders' funds 134 123 Deferred income taxes, net 514 -- Borrowings under repurchase agreements 397 -- Line of credit with Ameriprise Financial, Inc. 3 300 Other liabilities 1,555 1,955 Separate account liabilities 63,795 54,267 ------------------------------------------------------------------------------------------------- Total liabilities 96,078 87,028 ------------------------------------------------------------------------------------------------- Shareholder's equity: Common stock, $30 par value; 100,000 shares authorized, issued and outstanding 3 3 Additional paid-in capital 2,460 2,445 Retained earnings 3,410 3,114 Accumulated other comprehensive income, net of tax 675 382 ------------------------------------------------------------------------------------------------- Total shareholder's equity 6,548 5,944 ------------------------------------------------------------------------------------------------- Total liabilities and shareholder's equity $102,626 $92,972 =================================================================================================
See Notes to Consolidated Financial Statements. F-2 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF INCOME (IN MILLIONS)
YEARS ENDED DECEMBER 31, 2010 2009 2008 REVENUES Premiums $ 489 $ 450 $ 438 Net investment income 1,629 1,526 1,252 Policy and contract charges 1,389 1,156 1,352 Other revenues 272 233 255 Net realized investment gains (losses) 16 59 (442) ------------------------------------------------------------------------------------------------------- Total revenues 3,795 3,424 2,855 ------------------------------------------------------------------------------------------------------- BENEFITS AND EXPENSES Benefits, claims, losses and settlement expenses 1,203 841 673 Interest credited to fixed accounts 909 903 790 Amortization of deferred acquisition costs 53 145 861 Other insurance and operating expenses 582 550 649 ------------------------------------------------------------------------------------------------------- Total benefits and expenses 2,747 2,439 2,973 ------------------------------------------------------------------------------------------------------- Pretax income (loss) 1,048 985 (118) Income tax provision (benefit) 252 245 (189) ------------------------------------------------------------------------------------------------------- Net income $ 796 $ 740 $ 71 ======================================================================================================= Supplemental Disclosures: Net realized investment gains: Net realized investment gains before impairment losses on securities $ 44 $ 121 ------------------------------------------------------------------------------------------------------- Total other-than-temporary impairment losses on securities (22) (53) Portion of loss recognized in other comprehensive income (6) (9) ------------------------------------------------------------------------------------------------------- Net impairment losses recognized in net realized investment gains (28) (62) ------------------------------------------------------------------------------------------------------- Net realized investment gains $ 16 $ 59 =======================================================================================================
See Notes to Consolidated Financial Statements. F-3 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (IN MILLIONS)
YEARS ENDED DECEMBER 31, 2010 2009 2008 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 796 $ 740 $ 71 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Capitalization of deferred acquisition and sales inducement costs (494) (640) (674) Amortization of deferred acquisition and sales inducement costs 50 155 982 Depreciation, amortization and accretion, net (79) (68) 61 Deferred income tax expense (benefit) 416 (81) (234) Contractholder and policyholder charges, non-cash (259) (259) (248) Net realized investment gains (46) (135) (7) Other-than-temporary impairments and provision for loan losses recognized in net realized investment (gains) losses 29 76 449 Change in operating assets and liabilities: Trading securities and equity method investments, net 29 136 (110) Future policy benefits for traditional life, disability income and long term care insurance 302 282 308 Policy claims and other policyholders' funds 11 (49) 81 Reinsurance recoverables (141) (96) (302) Other receivables (53) (5) 20 Accrued investment income (6) (64) 14 Derivatives collateral, net 55 (1,928) 1,591 Other assets and liabilities, net 439 684 41 ------------------------------------------------------------------------------------------------------- Net cash provided by (used in) operating activities 1,049 (1,252) 2,043 ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Available-for-Sale securities: Proceeds from sales 1,268 5,215 246 Maturities, sinking fund payments and calls 3,719 3,486 2,510 Purchases (4,970) (13,696) (1,684) Proceeds from sales and maturities of commercial mortgage loans 207 279 263 Funding of commercial mortgage loans (154) (104) (110) Proceeds from sales of other investments 95 43 19 Purchase of other investments (256) (11) (140) Purchase of land, buildings, equipment and software (15) (14) (18) Change in policy loans, net (14) 7 (25) ------------------------------------------------------------------------------------------------------- Net cash (used in) provided by investing activities (120) (4,795) 1,061 ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Policyholder and contractholder account values: Considerations received 1,593 4,863 2,913 Net transfers (to) from separate accounts (1,337) 195 91 Surrenders and other benefits (1,338) (1,923) (2,931) Change in borrowings under repurchase agreements, net 397 -- -- Proceeds from line of credit with Ameriprise Financial, Inc. 13 500 -- Payments on line of credit with Ameriprise Financial, Inc. (310) -- -- Deferred premium options, net (182) (82) (77) Tax adjustment on share-based incentive compensation plan -- (2) 2 Cash dividend to Ameriprise Financial, Inc. (500) -- (775) ------------------------------------------------------------------------------------------------------- Net cash (used in) provided by financing activities (1,664) 3,551 (777) ------------------------------------------------------------------------------------------------------- Net (decrease) increase in cash and cash equivalents (735) (2,496) 2,327 Cash and cash equivalents at beginning of period 811 3,307 980 ------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 76 $ 811 $ 3,307 ======================================================================================================= Supplemental Disclosures: Income taxes paid, net $ 112 $ 72 $ 168 Interest paid on borrowings 3 1 -- Non-cash transactions: Capital contributions from Ameriprise Financial, Inc. $ 14 $ 331 $ 322
See Notes to Consolidated Financial Statements. F-4 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY THREE YEARS ENDED DECEMBER 31, 2010 (IN MILLIONS)
ACCUMULATED ADDITIONAL OTHER COMMON PAID-IN RETAINED COMPREHENSIVE SHARES CAPITAL EARNINGS INCOME (LOSS) TOTAL ------------------------------------------------------------------------------------------------------------------- BALANCES AT JANUARY 1, 2008 $ 3 $2,031 $3,188 $ (156) $5,066 Change in accounting principles, net of tax -- -- (30) -- (30) Comprehensive loss: Net income -- -- 71 -- 71 Other comprehensive income (loss), net of tax: Change in net unrealized securities losses -- -- -- (562) (562) Change in net unrealized derivatives 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 derivatives 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 Comprehensive income: Net income -- -- 796 -- 796 Other comprehensive income, net of tax: Change in net unrealized securities gains -- -- -- 285 285 Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities -- -- -- 4 4 Change in net unrealized derivatives losses -- -- -- 4 4 ------------ Total comprehensive income 1,089 Tax adjustment on share-based incentive compensation plan -- 1 -- -- 1 Cash dividends to Ameriprise Financial, Inc. -- -- (500) (500) Non-cash capital contribution from Ameriprise Financial, Inc. -- 14 -- -- 14 ------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2010 $ 3 $2,460 $3,410 $ 675 $6,548 ===================================================================================================================
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 RiverSource Life Insurance Company is a stock life insurance company with one wholly owned stock life insurance company 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 domiciled and holds a Certificate of Authority in New York. Effective in March and September 2010, RiverSource Life of NY withdrew its Certificates of Authority from North Dakota and Delaware, respectively, as it does not conduct business in these states. RiverSource Life of NY issues insurance and annuity products. RiverSource Life Insurance Company also wholly owns RiverSource Tax Advantaged Investments, Inc. ("RTA"). RTA is a stock company domiciled in Delaware and is a limited partner in affordable housing partnership investments. The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and companies in which it directly or indirectly has a controlling financial interest (collectively, the "Company"). All material intercompany transactions and balances have been eliminated in consolidation. In the third quarter of 2010, the Company made adjustments for revisions to the valuations of reserves, deferred acquisition costs ("DAC") and deferred sales inducement costs ("DSIC") related to insurance and living benefit guarantees which resulted in a $32 million pretax charge ($21 million after-tax). In the second quarter of 2010, the Company made an adjustment for revisions to certain calculations in its valuation of DAC and DSIC which resulted in a $33 million pretax benefit ($21 million after-tax). 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 regulatory authorities as described in Note 15. Certain reclassifications of prior period amounts have been made to conform to the current presentation. The Company'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. The Company's fixed deferred annuities guarantee a relatively low annual interest rate during the accumulation period (the time before annuity payments begin). However, the Company has the option of paying a higher rate set at its discretion. In addition, persons owning an equity indexed annuity ("EIA") may have their interest calculated based on an increase in a broad-based stock market index. The Company 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. The Company issues only non-participating life insurance policies which do not pay dividends to policyholders from realized policy margins. Under the Company's variable life insurance and variable annuity products described above, the purchaser may choose a fixed account option that is part of the Company's "general account", as well as investment options from a variety of portfolios that include common stocks, bonds, managed assets and/or short-term securities. The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The Company consolidates 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. Entities in which the Company exercises significant influence or holds a greater than 20% but less than 50% voting interest are accounted for under the equity method. All other investments F-6 RiverSource Life Insurance Company -------------------------------------------------------------------------------- that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method where the Company owns less than a 20% voting interest and does not exercise significant influence. A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity's losses, or the rights to receive the entity's returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. A VIE is required to be assessed for consolidation under two models: - If the VIE is a money market fund or is an investment company, or has the financial characteristics of an investment company, and the following is true: (i) the entity does not have an explicit or implicit obligation to fund the investment company's losses; and (ii) the investment company is not a securitization entity, asset backed financing entity, or an entity formally considered a qualifying special purpose entity, then, the VIE will be consolidated by the entity that determines it stands to absorb a majority of the VIE's expected losses or to receive a majority of the VIE's expected residual returns. Examples of entities that are likely to be assessed for consolidation under this framework include hedge funds, property funds, private equity funds and venture capital funds. - If the VIE does not meet the criteria above, the VIE will be consolidated by the entity that determines it has both: (i) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance; and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. When determining whether the Company stands to absorb the majority of a VIE's expected losses or receive a majority of a VIE's expected returns, it analyzes the design of the VIE to identify the variable interests it holds. Then the Company quantitatively determines whether its variable interests will absorb a majority of the VIE's variability. If the Company determines it has control over the activities that most significantly impact the economic performance of the VIE and it will absorb a majority of the VIE's expected variability, the Company consolidates the VIE. The calculation of variability is based on an analysis of projected probability-weighted cash flows based on the design of the particular VIE. When determining whether the Company has the power and the obligation to absorb losses or rights to receive benefits from the VIE that could potentially be significant, the Company qualitatively determines if its variable interests meet these criteria. If the Company consolidates a VIE under either scenario, it is referred to as the VIE's primary beneficiary. 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, 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. INVESTMENTS 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 impacts to DAC, DSIC, certain benefit reserves and income taxes. Gains and losses are recognized in the Consolidated Statements of Income upon disposition of the securities. Effective January 1, 2009, the Company early adopted an accounting standard that significantly changed the Company's accounting policy regarding the timing and amount of other-than-temporary impairments for Available-for-Sale securities as follows. When the fair value of an investment is less than its amortized cost, the Company 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 that the Company 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 the Company 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 the Company does not expect to recover a security's amortized cost basis, the security is also considered other-than-temporarily impaired. For these securities, the Company 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, DSIC, certain benefit reserves and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, if through F-7 RiverSource Life Insurance Company -------------------------------------------------------------------------------- subsequent evaluation there is a sustained 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). The Company'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. The Company 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, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company 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 the Company 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 the Company'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), the Company 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. 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. Trading Securities and Other Investments Trading securities and other investments include separate account and mutual fund seed money, equity method investments, trading bonds, interests in affordable housing partnerships and syndicated 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. FINANCING RECEIVABLES Commercial Mortgage Loans and Syndicated Loans Commercial mortgage loans are reflected at amortized cost less the allowance for loan losses. Syndicated loans represent the Company's investment in below investment grade loan syndications. Syndicated loans are reflected in trading securities and other investments at amortized cost less the allowance for loan losses. Interest income is accrued on the unpaid principal balances of the loans as earned. Policy Loans Policy loans include life insurance policy and annuity loans and are reported at the unpaid principal balance, plus accrued interest. When originated, the loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses for policy loans. F-8 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Nonaccrual Loans Generally, loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal or in accordance with the loan agreement unless the remaining principal balance has been determined to be fully collectible. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less selling costs. Foreclosed property is recorded as real estate owned in trading securities and other investments. Syndicated loans are charged off when management determines that the loans are uncollectible. Allowance for Loan Losses Management determines the adequacy of the allowance for loan losses by portfolio based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value ratios and occupancy rates, along with economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. The Company determines the amount of the allowance required for certain sectors based on management's assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions. While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net realized investment gains (losses) and reduced/increased by net charge-offs/recoveries. Impaired Loans The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. The impairment recognized is measured as the excess of the loan's recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan's effective interest rate, (ii) the fair value of collateral or (iii) the loan's observable market price. Restructured Loans A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms. Loans restructured at an interest rate equal to or greater than interest rates for new loans with comparable risk at the time the contract is modified are excluded from restructured loans. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to the borrower, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructure or after a performance period. If the borrower's ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. There are no material commitments to lend additional funds to borrowers whose loans have been restructured. 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, 2010 and 2009 was $66 million and $184 million, respectively, consisting of cash that has been pledged to counterparties. REINSURANCE The Company 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 premiums, net of the change in any prepaid reinsurance asset, are reported as a reduction of premiums. Fixed and variable universal life reinsurance premiums are reported as a reduction of policy and contract charges. In addition, for fixed and variable universal life insurance policies, the net cost of reinsurance ceded, which represents the discounted F-9 RiverSource Life Insurance Company -------------------------------------------------------------------------------- amount of the expected cash flows between the reinsurer and the Company, is recognized as an asset and amortized over the term of the reinsurance contract, in proportion to the estimated gross profits and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC asset valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component 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. The Company 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 8 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. The Company generally uses the straight-line method of depreciation and amortization over periods ranging from three to 30 years. During 2009, the Company received a non-cash capital contribution of $131 million comprised of two buildings and the related land from Ameriprise Financial. At December 31, 2010 and 2009, land, buildings, equipment and software were $191 million and $190 million, respectively, net of accumulated depreciation of $59 million and $52 million, respectively. Depreciation and amortization expense for the years ended December 31, 2010, 2009 and 2008 was $14 million, $8 million and $5 million, respectively. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company'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. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company 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"). Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company 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. The Company 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, the Company will discontinue the application of hedge accounting. 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 fair value of 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 changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. 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 portion of the gain or loss on the derivative instruments is 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 in current period 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 reclassified to earnings over F-10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- the period that the hedged item impacts earnings. For 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 16 for information regarding the Company's fair value measurement of derivative instruments and the impact of derivatives on the Consolidated Statements of Income. The equity component of EIA 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 EIA embedded derivatives is reflected in interest credited to fixed accounts. The changes in the fair value of the GMAB and GMWB embedded derivatives are reflected in benefits, claims, losses and settlement expenses. DEFERRED ACQUISITION COSTS DAC represent the costs 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 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 are amortized over time. For annuity and universal life ("UL") contracts, DAC are amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC are 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 are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Company's Consolidated Statements of Income. For annuity, life, DI and LTC insurance products, key assumptions underlying those 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 the Company's 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. The Company typically uses a five-year mean reversion process as a guideline in setting near-term equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management's assessment of anticipated equity market performance. 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. F-11 RiverSource Life Insurance Company -------------------------------------------------------------------------------- The Company 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 the Company'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 the Company's management identifies a significant deviation over the course of the 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. 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, who assume the related investment risk. Income and losses on separate account assets accrue directly to the contractholder and policyholder and are not reported in the Company's Consolidated Statements of Income. Separate account assets are recorded at fair value. Changes in the fair value of separate account assets are offset by changes in the related separate account liabilities. The Company 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, EIAs 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 the Company 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. The Company 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, the Company offers contracts containing GMWB and GMAB provisions, and until May 2007, the Company offered contracts containing guaranteed minimum income benefit ("GMIB") provisions. In determining the liabilities for GMDB, GMIB and the life contingent benefits associated with GMWB, the Company 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 13 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 F-12 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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 EIAs 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. 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. A portion of the Company's fixed and variable universal life contracts have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. 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. In determining the liability for contracts with profits followed by losses, the Company projects benefits and contract assessments using actuarial models. 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 liability for these future losses is determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 9 to for information regarding the liability for contracts with secondary guarantees. 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 the Company's experience. 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 the Company's experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. 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 The Company'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. F-13 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Net Investment Income Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, commercial mortgage loans, 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 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 other charges assessed on annuities and fixed and variable universal life insurance, which consist of cost of insurance charges, net of reinsurance premiums and cost of reinsurance 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 the Company'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 include expenses allocated to the Company from its parent, Ameriprise Financial, for the Company'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. Also included are commissions, sales and marketing expenses and other operating expenses. These expenses are net of DAC. INCOME TAXES Beginning in 2010, the Company's taxable income will be included in the consolidated federal income tax return of Ameriprise Financial. The Company provides for income taxes on a separate return basis, except that, under an agreement between Ameriprise Financial and the Company, tax benefits are recognized for losses to the extent they can be used in the consolidated return. It is the policy of Ameriprise Financial that it will reimburse its subsidiaries for any tax benefits recorded. 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 the Company's deferred tax assets are a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes and future deductible capital losses realized 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. The Company 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. Management may need to identify and implement appropriate planning strategies to ensure the Company's ability to realize its deferred tax assets and avoid the establishment of a valuation allowance with respect to such assets. 3. RECENT ACCOUNTING PRONOUNCEMENTS ADOPTION OF NEW ACCOUNTING STANDARDS Receivables In July 2010, the Financial Accounting Standards Board ("FASB") updated the accounting standards for disclosures on the credit quality of financing receivables and the allowance for credit losses. The standard requires additional disclosure related to the credit quality of financing receivables, troubled debt restructurings and significant purchases or sales of financing receivables during the period. The standard requires that these disclosures and existing disclosures be presented on a disaggregated basis, similar to the manner that the entity uses to evaluate its credit losses. Disclosures of information as of the end of a reporting period are effective for interim and annual periods ending after December 15, 2010 and disclosures of F-14 RiverSource Life Insurance Company -------------------------------------------------------------------------------- activity that occurred during a reporting period are effective for interim and annual periods beginning after December 15, 2010. In January 2011, the effective date of the disclosures related to troubled debt restructurings was deferred until the FASB clarifies guidance for determining what constitutes a troubled debt restructuring. The adoption of the standard did not impact the Company's consolidated financial condition and results of operations. See Note 2 and Note 6 for the required disclosures. Consolidation of Variable Interest Entities In June 2009, the FASB updated the accounting standards related to the consolidation of VIEs. The standard amends the guidance on the determination of the primary beneficiary of a VIE from a quantitative model to a qualitative model and requires additional disclosures about an enterprise's involvement in VIEs. Under the new qualitative model, the primary beneficiary must have both the power to direct the activities of the VIE and the obligation to absorb losses or the right to receive gains that could be potentially significant to the VIE. In February 2010, the FASB amended this guidance to defer application of the consolidation requirements for certain investment funds. The standards are effective for interim and annual reporting periods beginning after November 15, 2009. The Company adopted the standard effective January 1, 2010 which did not impact its consolidated financial condition and results of operations. Subsequent Events In February 2010, the FASB amended the accounting standards related to the recognition and disclosure of subsequent events. The amendments remove the requirement to disclose the date through which subsequent events are evaluated for Securities and Exchange Commission ("SEC") filers. The standard is effective upon issuance and shall be applied prospectively. The Company adopted the standard in the first quarter of 2010. The adoption did not have any effect on the Company's consolidated financial condition and results of operations. Fair Value In January 2010, the FASB updated the accounting standards related to disclosures on 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 presents 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 on 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. The Company adopted the standard in the first quarter of 2010, except for the additional disclosures related to the Level 3 rollforward, which the Company will adopt in the first quarter of 2011. The adoption did not have any effect on the Company'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. The Company 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 the Company uses to hedge its exposure to market risk related to certain variable annuity riders. Prior to January 1, 2008, the Company 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 the Company 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 the Company's embedded derivative liabilities associated with certain variable annuity riders. Since there is no market for these liabilities, the Company considered the assumptions participants in a hypothetical market would make to determine an exit price. As a result, the Company 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 the Company'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 the Company not fulfilling these liabilities. As the Company's estimate of this credit spread widens or tightens, the liability will decrease or increase. Recognition and Presentation of Other-Than-Temporary Impairments ("OTTI") 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 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 F-15 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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. The Company 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 5 for the Company's required disclosures. FUTURE ADOPTION OF NEW ACCOUNTING STANDARDS Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts In October 2010, the FASB updated the accounting standards for DAC. Under this new standard, only the following costs incurred in the acquisition of new and renewal insurance contracts would be capitalizable as DAC: (i) incremental direct costs of a successful contract acquisition, (ii) portions of employees' salaries and benefits directly related to time spent performing specified acquisition activities (that is, underwriting, policy issuance and processing, medical and inspection, and sales force contract selling) for a contract that has actually been acquired, (iii) other costs related to the specified acquisition activities that would not have been incurred had the acquisition contract not occurred, and (iv) advertising costs that meet the capitalization criteria in other GAAP guidance for certain direct-response marketing. All other costs are to be expensed as incurred. The standard is effective for interim and annual periods beginning after December 15, 2011, with earlier adoption permitted if it is at the beginning of an entity's annual reporting period. The standard is to be applied prospectively; however, retrospective application to all prior periods presented is permitted but not required. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. How Investments Held through Separate Accounts Affect an Insurer's Consolidation Analysis of Those Investments In April 2010, the FASB updated the accounting standards regarding accounting for investment funds determined to be VIEs. Under this standard an insurance enterprise would not be required to consolidate a voting-interest investment fund when it holds the majority of the voting interests of the fund through its separate accounts. In addition, the enterprise would not consider the interests held through separate accounts in evaluating its economic interests in a VIE, unless the separate account contract holder is a related party. The standard is effective for financial statements issued for fiscal years and interim periods beginning after December 15, 2010. The adoption of the standard is not expected to have a material impact on the Company's consolidated financial condition and results of operations. 4. 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 $244 million and $28 million as of December 31, 2010 and 2009, respectively. RTA has no obligation to provide financial or other support to the affordable housing partnerships in addition to liabilities already recorded nor has it provided any additional support to the affordable housing partnerships. The Company had liabilities of $188 million and $1 million recorded in other liabilities as of December 31, 2010 and 2009, respectively, related to the affordable housing partnerships. F-16 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 5. INVESTMENTS Available-for-Sale securities distributed by type were as follows:
DECEMBER 31, 2010 -------------------------------------------------------------------- GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR NONCREDIT DESCRIPTION OF SECURITIES (IN MILLIONS) COST GAINS LOSSES VALUE OTTI(1) -------------------------------------------------------------------------------------------------------------------- Fixed maturities: Corporate debt securities $14,792 $1,218 $ (56) $15,954 $ 1 Residential mortgage backed securities 4,364 308 (139) 4,533 (30) Commercial mortgage backed securities 3,817 282 (4) 4,095 -- Asset backed securities 883 43 (18) 908 -- State and municipal obligations 809 18 (57) 770 -- Foreign government bonds and obligations 91 16 -- 107 -- U.S. government and agencies obligations 55 7 -- 62 -- Other structured investments 7 6 -- 13 6 -------------------------------------------------------------------------------------------------------------------- Total fixed maturities 24,818 1,898 (274) 26,442 (23) Common stocks 1 1 -- 2 -- -------------------------------------------------------------------------------------------------------------------- Total $24,819 $1,899 $(274) $26,444 $(23) ====================================================================================================================
DECEMBER 31, 2009 -------------------------------------------------------------------- GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR NONCREDIT 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. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. At both December 31, 2010 and 2009, fixed maturity securities comprised approximately 88% of the Company's total investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations ("NRSROs"), including Moody's Investors Service ("Moody's"), Standard & Poor's Ratings Services ("S&P") and Fitch Ratings Ltd. ("Fitch"). The Company uses the median of available ratings from Moody's, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody's, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. At December 31, 2010 and 2009, approximately $1.2 billion and $1.1 billion, respectively, of securities were internally rated by Columbia Management Investment Advisers, LLC (formerly known as RiverSource Investments, LLC) using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows:
DECEMBER 31, 2010 DECEMBER 31, 2009 ---------------------------------------------------------------------------------- PERCENT OF PERCENT OF RATINGS (IN MILLIONS, EXCEPT AMORTIZED FAIR TOTAL FAIR AMORTIZED FAIR TOTAL FAIR PERCENTAGES) COST VALUE VALUE COST VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- AAA $ 8,067 $ 8,647 33% $ 9,194 $ 9,520 37% AA 1,360 1,426 5 1,081 1,084 4 A 4,025 4,259 16 4,182 4,326 17 BBB 9,831 10,721 41 9,276 9,826 38 Below investment grade 1,535 1,389 5 1,409 1,243 4 -------------------------------------------------------------------------------------------------------------------------- Total fixed maturities $24,818 $26,442 100% $25,142 $25,999 100% ==========================================================================================================================
F-17 RiverSource Life Insurance Company -------------------------------------------------------------------------------- At December 31, 2010 and 2009, approximately 29% and 33%, 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 total equity. 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, 2010 (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 107 $1,785 $(44) 13 $153 $ (12) 120 Residential mortgage backed securities 71 310 (7) 45 282 (132) 116 Commercial mortgage backed securities 10 238 (4) -- -- -- 10 Asset backed securities 10 186 (6) 15 69 (12) 25 State and municipal obligations 20 256 (9) 2 87 (48) 22 U.S. government and agencies obligations 1 15 -- -- -- -- 1 Common stocks 2 1 -- 1 -- -- 3 ------------------------------------------------------------------------------------------------------------------------ Total 221 $2,791 $(70) 76 $591 $(204) 297 ======================================================================================================================== DECEMBER 31, 2010 (IN MILLIONS, EXCEPT -------------------------- NUMBER OF SECURITIES) TOTAL -------------------------------------------------- DESCRIPTION OF FAIR UNREALIZED SECURITIES VALUE LOSSES -------------------------------------------------- Corporate debt securities $1,938 $ (56) Residential mortgage backed securities 592 (139) Commercial mortgage backed securities 238 (4) Asset backed securities 255 (18) State and municipal obligations 343 (57) U.S. government and agencies obligations 15 -- Common stocks 1 -- -------------------------------------------------- Total $3,382 $(274) ==================================================
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 92 $1,088 $(18) 85 $1,313 $ (88) 177 Residential mortgage backed securities 34 1,184 (34) 53 363 (204) 87 Commercial mortgage backed securities 24 353 (4) 18 297 (12) 42 Asset backed securities 6 70 (1) 16 87 (28) 22 State and municipal obligations 13 232 (9) 2 99 (37) 15 U.S. government and agencies obligations 2 89 (1) -- -- -- 2 Foreign government bonds and obligations -- -- -- 1 4 (1) 1 Common and preferred stocks -- -- -- 2 23 (7) 2 ------------------------------------------------------------------------------------------------------------------------ Total 171 $3,016 $(67) 177 $2,186 $(377) 348 ======================================================================================================================== 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) Common and preferred stocks 23 (7) -------------------------------------------------- Total $5,202 $(444) ==================================================
As part of the Company's ongoing monitoring process, management determined that a majority of the gross unrealized losses on its Available-for-Sale securities at December 31, 2010 are attributable to credit spreads. The primary driver of lower unrealized losses at December 31, 2010 was the decline of interest rates during the period. 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:
YEARS ENDED DECEMBER 31, -------------------------- (IN MILLIONS) 2010 2009 ------------------------------------------------------------------------------------------------- Beginning balance of credit losses on securities held for which a portion of other-than-temporary impairment was recognized in other comprehensive income $ 82 $102 Additional amount related to credit losses for which an other-than- temporary impairment was not previously recognized 14 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 12 31 ------------------------------------------------------------------------------------------------- Ending balance of credit losses on securities held as of December 31 for which a portion of other-than-temporary impairment was recognized in other comprehensive income $108 $ 82 =================================================================================================
The change in net unrealized securities gains (losses) in other comprehensive income 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 due to the reclassification of noncredit other-than-temporary impairment losses to credit F-18 RiverSource Life Insurance Company -------------------------------------------------------------------------------- losses 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. The following table presents a rollforward of the net unrealized securities (losses) gains on Available-for-Sale securities included in accumulated other comprehensive income (loss):
ACCUMULATED OTHER COMPREHEN- SIVE INCOME (LOSS) RELATED TO NET NET UNREALIZED UNREALIZED SECURITIES SECURITIES (LOSSES) DEFERRED (LOSSES) (IN MILLIONS) GAINS INCOME TAX GAINS ---------------------------------------------------------------------------------------------------- Balance at January 1, 2008 $ (179) $ 63 $ (116) Net unrealized securities 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) 20 (38)(1) Net unrealized securities gains arising during the period(3) 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) Net unrealized securities gains arising during the period(3) 794 (278) 516 Reclassification of gains included in net income (20) 7 (13) Impact on DAC, DSIC, benefit reserves and reinsurance recoverables (328) 114 (214) ---------------------------------------------------------------------------------------------------- Balance at December 31, 2010 $ 1,084 $(379) $ 705(2) ====================================================================================================
(1) Amount represents the cumulative effect of adopting a new accounting standard on January 1, 2009. See Note 3 for additional information on the adoption impact. (2) At December 31, 2010 and 2009, Accumulated Other Comprehensive Income Related to Net Unrealized Securities Gains included $(12) million and $(16) million, respectively, of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities. (3) In 2010 and 2009, net unrealized securities gains arising during the period include other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income during the period. 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) 2010 2009 2008 ------------------------------------------------------------------------------------------------------- Gross realized investment gains from sales $ 51 $185 $ 13 Gross realized investment losses from sales (4) (50) (6) Other-than-temporary impairments (28) (62) (440)
The other-than-temporary impairments for the year ended December 31, 2010 primarily related to credit losses on non-agency residential mortgage backed securities as well as corporate debt securities in the gaming industry. The other-than-temporary impairments for the year ended December 31, 2009 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 other-than-temporary impairments for the year ended December 31, 2008 related to losses on non-agency residential mortgage backed securities, corporate debt securities primarily in the financial services industry and asset backed and other securities. Available-for-Sale securities by contractual maturity at December 31, 2010 were as follows:
AMORTIZED (IN MILLIONS) COST FAIR VALUE ------------------------------------------------------------------------------------------------- Due within one year $ 1,047 $ 1,066 Due after one year through five years 5,359 5,671 Due after five years through 10 years 5,615 6,106 Due after 10 years 3,726 4,050 ------------------------------------------------------------------------------------------------- 15,747 16,893 ------------------------------------------------------------------------------------------------- Residential mortgage backed securities 4,364 4,533 Commercial mortgage backed securities 3,817 4,095 Asset backed securities 883 908 Other structured investments 7 13 Common stocks 1 2 ------------------------------------------------------------------------------------------------- Total $24,819 $26,444 =================================================================================================
F-19 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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 both December 31, 2010 and 2009, bonds carried at $7 million were on deposit with various states as required by law. Trading Securities Net recognized gains (losses) related to trading securities held at December 31, 2010, 2009 and 2008 were nil, nil and $9 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) 2010 2009 2008 ------------------------------------------------------------------------------------------------------- Income on fixed maturities $1,482 $1,371 $1,043 Income on commercial mortgage loans 152 160 173 Trading securities and other investments 40 35 55 ------------------------------------------------------------------------------------------------------- 1,674 1,566 1,271 Less: investment expenses (45) (40) (19) ------------------------------------------------------------------------------------------------------- Total $1,629 $1,526 $1,252 =======================================================================================================
Net realized investment gains (losses) are summarized as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2010 2009 2008 ------------------------------------------------------------------------------------------------------- Fixed maturities $19 $ 73 $(433) Commercial mortgage loans (6) (13) (1) Trading securities and other investments 3 (1) (8) ------------------------------------------------------------------------------------------------------- Total $16 $ 59 $(442) =======================================================================================================
6. FINANCING RECEIVABLES The Company's financing receivables include commercial mortgage loans, syndicated loans and policy loans. The Company does not hold any loans acquired with deteriorated credit quality. See Note 2 for information regarding the Company's accounting policies related to loans and the allowance for loan losses. ALLOWANCE FOR LOAN LOSSES The following table presents a rollforward of the allowance for loan losses for the year ended December 31, 2010 and the ending balance of the allowance for loan losses as of December 31, 2010 by impairment method and type of loan:
COMMERCIAL MORTGAGE SYNDICATED (IN MILLIONS) LOANS LOANS TOTAL ------------------------------------------------------------------------------------------------------- Beginning balance $30 $12 $42 Charge-offs (1) (2) (3) Provisions 7 (5) 2 ------------------------------------------------------------------------------------------------------- Ending balance $36 $ 5 $41 ======================================================================================================= Ending balance: Individually evaluated for impairment $ 8 $-- $ 8 Ending balance: Collectively evaluated for impairment 28 5 33
The recorded investment in financing receivables as of December 31, 2010 by impairment method and type of loan was as follows:
COMMERCIAL MORTGAGE SYNDICATED (IN MILLIONS) LOANS LOANS TOTAL ------------------------------------------------------------------------------------------------------- Ending balance: Individually evaluated for impairment $ 75 $ -- $ 75 Ending balance: Collectively evaluated for impairment 2,431 205 2,636 ------------------------------------------------------------------------------------------------------- Ending balance $2,506 $205 $2,711 =======================================================================================================
As of December 31, 2010, the Company's recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $19 million. During the year ended December 31, 2010, the Company purchased $59 million and sold $2 million of syndicated loans. F-20 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CREDIT QUALITY INFORMATION Nonperforming loans, which are generally loans 90 days or more past due, were $8 million as of December 31, 2010. All other loans were considered to be performing. Commercial Mortgage Loans The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were 3% of commercial mortgage loans as of December 31, 2010. Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure in the next six months. In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region as of December 31, 2010 were as follows:
PERCENT OF FUNDING (IN MILLIONS, EXCEPT PERCENTAGES) LOANS LOANS COMMITMENTS ------------------------------------------------------------------------------------------------------- South Atlantic $ 590 24% $ 4 Pacific 530 21 15 Mountain 286 11 -- West North Central 251 10 -- East North Central 240 10 -- Middle Atlantic 212 8 -- West South Central 183 7 -- New England 148 6 2 East South Central 66 3 -- ------------ ------------ ------------ 2,506 100% 21 ------------ Less: allowance for loan losses (36) -- ------------ ------------ Total $2,470 $21 =======================================================================================================
Concentrations of credit risk of commercial mortgage loans by property type as of December 31, 2010 were as follows:
PERCENT OF FUNDING (IN MILLIONS, EXCEPT PERCENTAGES) LOANS LOANS COMMITMENTS ------------------------------------------------------------------------------------------------------- Retail $ 820 33% $10 Office 717 29 -- Industrial 456 18 6 Apartments 326 13 -- Hotel 57 2 -- Mixed Use 43 2 -- Other 87 3 5 ------------ ------------ ------------ 2,506 100% 21 ------------ Less: allowance for loan losses (36) -- ------------ ------------ Total $2,470 $21 =======================================================================================================
Syndicated Loans The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans as of December 31, 2010 were $1 million. 7. DEFERRED ACQUISITION COSTS AND DEFERRED SALES INDUCEMENT COSTS During the third quarter of 2010, 2009 and 2008, management reviewed and updated the DAC and DSIC valuation assumptions for the Company's products. As part of its third quarter 2010 process, management extended the projection periods used for its annuity products and revised client asset value growth rates assumed for variable annuity and variable universal life contracts. During the third quarter of 2008, the Company converted to a new industry standard valuation system that provided enhanced modeling capabilities. F-21 RiverSource Life Insurance Company -------------------------------------------------------------------------------- The total pretax impacts on the Company's assets and liabilities attributable to the review of valuation assumptions during the third quarter of 2010, 2009 and 2008 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 -------------------------------------------------------------------------------------------------------------------------------- 2010 period $(21) $323 $52 $-- $(266) $-- $ 88 2009 period (65) 119 9 -- 71 -- 134 2008 period 92 (81) (6) 1 95 5 106
The total pretax impacts on the Company's revenues and expenses attributable to the review of the valuation assumptions for the years ended December 31, 2010, 2009 and 2008 and the valuation system conversion during the third quarter of 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 -------------------------------------------------------------------------------------------------------------------------- 2010 period $-- $(21) $(214) $323 $-- $ 88 2009 period -- (65) 80 119 -- 134 2008 period 2 95 89 (81) 1 106
The balances of and changes in DAC were as follows:
(IN MILLIONS) 2010 2009 2008 ------------------------------------------------------------------------------------------------------- Balance at January 1 $4,285 $4,324 $4,334 Cumulative effect of accounting change -- -- 36 Capitalization of acquisition costs 459 558 587 Amortization, excluding the impact of valuation assumptions review and valuation system conversion (376) (264) (780) Amortization, impact of valuation assumptions review and valuation system conversion 323 119 (81) Impact of change in net unrealized securities (gains) losses (113) (452) 228 ------------------------------------------------------------------------------------------------------- Balance at December 31 $4,578 $4,285 $4,324 =======================================================================================================
The balances of and changes in DSIC were as follows:
(IN MILLIONS) 2010 2009 2008 ------------------------------------------------------------------------------------------------------- Balance at January 1 $524 $518 $ 511 Cumulative effect of accounting change -- -- 9 Capitalization of sales inducement costs 35 82 87 Amortization, excluding the impact of valuation assumptions review and valuation system conversion (49) (19) (115) Amortization, impact of valuation assumptions review and valuation system conversion 52 9 (6) Impact of change in net unrealized securities (gains) losses (17) (66) 32 ------------------------------------------------------------------------------------------------------- Balance at December 31 $545 $524 $ 518 =======================================================================================================
As described in Note 3, the Company 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, the Company 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 the Company's adoption of fair value accounting standards. 8. REINSURANCE Generally, the Company currently reinsures 90% of the death benefit liability related to almost all individual fixed and variable universal life and term life insurance products. As a result, the Company 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. The Company 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 the Company is $1.5 million 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. F-22 RiverSource Life Insurance Company -------------------------------------------------------------------------------- For existing LTC policies, the Company retained 50% of the risk and ceded the remaining 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. ("Genworth"). For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only. Generally, the Company 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 (August 2010 for RiverSource Life of NY) and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. The Company retains all risk for new claims on DI contracts sold on other policy forms. The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions. The Company also has life insurance and fixed annuity risk previously assumed under reinsurance arrangements with unaffiliated insurance companies. At December 31, 2010 and 2009, traditional life and universal life insurance in force aggregated $192.0 billion and $192.8 billion, respectively, of which $134.0 billion and $131.2 billion were reinsured at the respective year ends. Life insurance in force is reported on a statutory basis. The effect of reinsurance on premiums was as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2010 2009 2008 ------------------------------------------------------------------------------------------------------- Direct premiums $ 681 $ 659 $ 641 Reinsurance ceded (192) (209) (203) ------------------------------------------------------------------------------------------------------- Net premiums $ 489 $ 450 $ 438 =======================================================================================================
Policy and contract charges are presented on the Consolidated Statements of Income net of $67 million, $62 million and $61 million of reinsurance ceded for the years ended December 31, 2010, 2009 and 2008, respectively. Reinsurance recovered from reinsurers was $166 million, $167 million and $142 million for the years ended December 31, 2010, 2009 and 2008, respectively. Reinsurance contracts do not relieve the Company from its primary obligation to policyholders. Reinsurance recoverables include approximately $1.4 billion and $1.3 billion related to LTC risk ceded to Genworth as of December 31, 2010 and 2009, respectively. Included in future policy benefits is $657 million and $667 million related to assumed reinsurance arrangements as of December 31, 2010 and 2009, respectively. 9. 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) 2010 2009 ------------------------------------------------------------------------------------------------- Fixed annuities $16,520 $16,558 Equity indexed annuities accumulated host values 100 159 Equity indexed annuities embedded derivatives 3 9 Variable annuity fixed sub-accounts 4,868 6,127 Variable annuity GMWB 337 204 Variable annuity GMAB 104 100 Other variable annuity guarantees 13 12 ------------------------------------------------------------------------------------------------- Total annuities 21,945 23,169 VUL/UL insurance 2,588 2,526 VUL/UL insurance additional liabilities 143 69 Other life, DI and LTC insurance 5,004 4,619 ------------------------------------------------------------------------------------------------- Total future policy benefits 29,680 30,383 Policy claims and other policyholders' funds 134 123 ------------------------------------------------------------------------------------------------- Total future policy benefits and policy claims and other policyholders' funds $29,814 $30,506 =================================================================================================
Separate account liabilities consisted of the following:
DECEMBER 31, -------------------------- (IN MILLIONS) 2010 2009 ------------------------------------------------------------------------------------------------- Variable annuity variable sub-accounts $57,862 $48,982 VUL insurance variable sub-accounts 5,887 5,239 Other insurance variable sub-accounts 46 46 ------------------------------------------------------------------------------------------------- Total $63,795 $54,267 =================================================================================================
F-23 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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. The Company generally invests the proceeds from the annuity payments in fixed rate securities. The Company may hedge the interest rate risks related to fixed annuities with derivative instruments. As of December 31, 2010 and 2009, there were no outstanding derivatives to hedge these risks. Equity Indexed Annuities The Index 500 Annuity, the Company's EIA 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. The Company generally invests the proceeds from the annuity deposits in fixed rate securities and hedges the equity risk with derivative instruments. See Note 16 for additional information regarding the Company's derivative instruments. In 2007, the Company discontinued new sales of EIAs. 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 the Company contain one or more guaranteed benefits, including GMWB, GMAB, GMDB and GGU provisions. The Company previously offered contracts with GMIB provisions. See Note 2 and Note 10 for additional information regarding the Company's variable annuity guarantees. The Company does not currently hedge its risk under the GMDB, GGU and GMIB provisions. See Note 16 for additional information regarding derivative instruments used to hedge risks related to GMWB and GMAB provisions. Insurance Liabilities VUL/UL is the largest group of insurance policies written by the Company. 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. The Company also offers term and whole life insurance as well as disability products. The Company 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. Portions of the Company's fixed and variable universal life contracts have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. 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. 10. VARIABLE ANNUITY AND INSURANCE GUARANTEES The majority of the variable annuity contracts offered by the Company contain GMDB provisions. The Company also offers variable annuities with GGU, GMWB and GMAB provisions. The Company previously offered contracts containing GMIB provisions. See Note 2 and Note 9 for additional information regarding the Company's 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 and less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company 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 fund 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. F-24 RiverSource Life Insurance Company -------------------------------------------------------------------------------- The Company has GMWB riders in force, which contain one or more of 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. - Withdrawals based on performance of the contract. - Withdrawals based on the age withdrawals begin. - Once withdrawals begin, the contractholder's funds are moved to one of the three least aggressive asset allocation models (of the five that are available prior to withdrawal). - Credits are applied annually for a specified number of 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 the Company 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. The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities:
DECEMBER 31, 2010 DECEMBER 31, 2009 --------------------------------------------------------------------------------------- CONTRACT CONTRACT VARIABLE ANNUITY GUARANTEES BY TOTAL VALUE IN WEIGHTED TOTAL VALUE IN BENEFIT TYPE(1) CONTRACT SEPARATE NET AMOUNT AVERAGE CONTRACT SEPARATE (IN MILLIONS, EXCEPT AGE) VALUE ACCOUNTS AT RISK(2) ATTAINED AGE VALUE ACCOUNTS --------------------------------------------------------------------------------------------------------------------------- GMDB: Return of premium $37,714 $36,028 $173 62 $30,938 $28,415 Five/six-year reset 13,689 11,153 312 62 13,919 11,223 One-year ratchet 7,741 7,242 287 63 7,081 6,400 Five-year ratchet 1,466 1,414 8 60 1,256 1,171 Other 680 649 61 67 549 516 --------------------------------------------------------------------------------------------------------------------------- Total -- GMDB $61,290 $56,486 $841 62 $53,743 $47,725 =========================================================================================================================== GGU DEATH BENEFIT $ 970 $ 912 $ 79 64 $ 853 $ 775 GMIB $ 597 $ 561 $ 76 64 $ 628 $ 582 GMWB: GMWB $ 4,341 $ 4,317 $106 64 $ 4,196 $ 4,067 GMWB for life 20,374 20,259 129 63 14,988 14,333 --------------------------------------------------------------------------------------------------------------------------- Total -- GMWB $24,715 $24,576 $235 63 $19,184 $18,400 =========================================================================================================================== GMAB $ 3,540 $ 3,523 $ 22 56 $ 2,926 $ 2,853 DECEMBER 31, 2009 --------------------------- WEIGHTED VARIABLE ANNUITY GUARANTEES BY NET AVERAGE BENEFIT TYPE(1) AMOUNT ATTAINED (IN MILLIONS, EXCEPT AGE) AT RISK(2) AGE --------------------------------------------------------------- GMDB: Return of premium $ 974 61 Five/six-year reset 929 61 One-year ratchet 873 63 Five-year ratchet 38 59 Other 95 67 --------------------------------------------------------------- Total -- GMDB $2,909 61 =============================================================== GGU DEATH BENEFIT $ 70 63 GMIB $ 126 63 GMWB: GMWB $ 454 64 GMWB for life 795 63 --------------------------------------------------------------- Total -- GMWB $1,249 63 =============================================================== GMAB $ 153 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. F-25 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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 Incurred claims 17 3 133 4 59 Paid claims (18) (1) -- -- (6) -------------------------------------------------------------------------------------------------------------------- Liability balance at December 31, 2010 $ 5 $ 8 $ 337 $ 104 $68 ====================================================================================================================
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) 2010 2009 ------------------------------------------------------------------------------------------------- Mutual funds: Equity $32,665 $29,379 Bond 22,755 16,537 Other 2,253 2,889 ------------------------------------------------------------------------------------------------- Total mutual funds $57,673 $48,805 =================================================================================================
No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2010, 2009 and 2008. 11. LINES OF CREDIT RiverSource Life Insurance Company, as the borrower, had an outstanding balance of $3 million and $300 million as of December 31, 2010 and 2009, respectively, under 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 agreement was established by reference to LIBOR plus 28 basis points. In January 2011, an amendment to this agreement increased the interest rate to LIBOR plus 115 basis points. Amounts borrowed may be repaid at any time with no prepayment penalty. The outstanding balance at December 31, 2010 was paid in full with a payment in January 2011. The outstanding balance at December 31, 2009 was paid in full during the first quarter of 2010. RiverSource Life Insurance Company borrowed $200 million in January 2011 and an additional $100 million in February 2011 under this line of credit. The Company has a revolving credit agreement 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, 2010 and 2009. In September 2008, RiverSource Life Insurance Company, 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 Insurance Company's statutory admitted assets as of the prior year end. The interest rate for any borrowing was established by reference to LIBOR plus 28 basis points. In January 2011, an amendment to this agreement increased the interest rate to LIBOR plus 115 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, 2010 and 2009. 12. BORROWINGS UNDER REPURCHASE AGREEMENTS During 2010, the Company entered into repurchase agreements in exchange for cash which it accounts for as secured borrowings. The Company has pledged Available- for-Sale securities consisting of agency residential mortgage backed securities to collateralize its obligation under the repurchase agreements. The fair value of the securities pledged is recorded in investments and was $412 million at December 31, 2010. The amount of the Company's liability as of December 31, 2010 was $397 million. The weighted average annualized interest rate on the repurchase agreements held as of December 31, 2010 was 0.3%. F-26 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 13. 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 The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company'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 The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company's market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company's income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company 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 net asset value ("NAV") and classified as Level 1. The Company'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. Level 1 securities include U.S. Treasuries. Level 2 securities include municipal and corporate bonds, agency mortgage backed securities, commercial mortgage backed securities, asset backed securities and U.S. and foreign government and agency securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from nationally- recognized pricing services. Observable inputs used to value these securities can include: reported trades, benchmark yields, issuer spreads and broker/dealer quotes. Level 3 securities primarily include corporate bonds, non-agency residential mortgage backed securities and asset backed securities. The fair value of these Level 3 securities is typically based on a single broker quote, except for the valuation of non-agency residential mortgage backed securities. Effective March 31, 2010, the Company returned to using prices from nationally- recognized pricing services to determine the fair value of non-agency residential mortgage backed securities because the difference between these prices and the results of the Company's discounted cash flows was not significant. The Company continues to classify its non-agency residential mortgage backed securities as Level 3 because it believes the market for these securities is still inactive and their valuation includes significant unobservable inputs. 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. Other Assets Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchanged-traded, are classified as Level 1 measurements. The fair value of derivatives that are traded in less active over-the-counter markets are generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These F-27 RiverSource Life Insurance Company -------------------------------------------------------------------------------- measurements are classified as Level 2 within the fair value hierarchy and include swaps and options. Derivatives that are valued using pricing models that have significant unobservable inputs are classified as Level 3 measurements. The Company settled these Level 3 derivatives in the second quarter of 2009 and has not entered into any additional derivative instruments that have significant unobservable inputs since then. LIABILITIES Future Policy Benefits The Company 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 (such as, market implied equity volatility and the LIBOR swap curve) and incorporate significant unobservable inputs related to contractholder behavior assumptions (such as withdrawals and lapse rates) and margins for risk, profit and expenses that the Company believes an exit market participant would expect. The fair value of these embedded derivatives also reflects a current estimate of the Company'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. The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its EIAs. The inputs to these calculations are primarily market observable and include interest rates, volatilities and equity index levels. As a result, these measurements are classified as Level 2. Other Liabilities The fair value of derivatives that are traded in less active 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 swaps and options. 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, 2010 ------------------------------------------------------ (IN MILLIONS) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------------------------- Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $-- $14,637 $1,317 $15,954 Residential mortgage backed securities -- 1,915 2,618 4,533 Commercial mortgage backed securities -- 4,065 30 4,095 Asset backed securities -- 681 227 908 State and municipal obligations -- 770 -- 770 U.S. government and agencies obligations 11 51 -- 62 Foreign government bonds and obligations -- 107 -- 107 Other structured investments -- -- 13 13 ------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 11 22,226 4,205 26,442 Common stocks 1 1 -- 2 Trading securities -- 26 -- 26 Cash equivalents -- 76 -- 76 Other assets: Interest rate derivatives -- 366 -- 366 Equity derivatives 32 323 -- 355 Credit derivatives -- 4 -- 4 ------------------------------------------------------------------------------------------------------------- Total other assets 32 693 -- 725 Separate account assets -- 63,795 -- 63,795 ------------------------------------------------------------------------------------------------------------- Total assets at fair value $44 $86,817 $4,205 $91,066 ============================================================================================================= Liabilities Future policy benefits: EIA embedded derivatives $-- $ 3 $ -- $ 3 GMWB and GMAB embedded derivatives -- -- 421 421 ------------------------------------------------------------------------------------------------------------- Total future policy benefits -- 3 421 424 Other liabilities: Interest rate derivatives -- 379 -- 379 Equity derivatives 18 647 -- 665 Credit derivatives -- 1 -- 1 ------------------------------------------------------------------------------------------------------------- Total other liabilities 18 1,027 -- 1,045 ------------------------------------------------------------------------------------------------------------- Total liabilities at fair value $18 $ 1,030 $ 421 $ 1,469 =============================================================================================================
F-29 RiverSource Life Insurance Company --------------------------------------------------------------------------------
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 =============================================================================================================
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, INCLUDED IN SALES, -------------------------- ISSUANCES BALANCE, OTHER AND TRANSFERS BALANCE, JANUARY 1, NET COMPREHENSI- SETTLEMENTS, IN/(OUT) OF DECEMBER 31, (IN MILLIONS) 2010 INCOME VE INCOME NET LEVEL 3 2010 -------------------------------------------------------------------------------------------------------------------------- Available-for-Sale securities: Fixed maturities: Corporate debt securities $1,239 $ 1 $ 30 $ 22 $ 25 $1,317 Residential mortgage backed securities 2,772 54 190 (398) -- 2,618 Commercial mortgage backed securities 72 1 10 91 (144) 30 Asset backed securities 215 6 22 (3) (13) 227 Other structured investments 11 2 -- -- -- 13 -------------------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 4,309 64(1) 252 (288) (132)(3) 4,205 Future policy benefits: GMWB and GMAB embedded derivatives (299) 4(2) -- (126) -- (421)
(1) Represents a $21 million loss included in net realized investment gains (losses) and an $85 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 $157 million that were transferred to Level 2 as the fair value of the securities is now obtained from a nationally-recognized pricing service and securities with a fair value of $25 million that were transferred to Level 3 as the fair value of the securities is now based on broker quotes. F-30 RiverSource Life Insurance Company --------------------------------------------------------------------------------
TOTAL GAINS PURCHASES, (LOSSES) INCLUDED IN SALES, -------------------------- ISSUANCES BALANCE, OTHER AND TRANSFERS BALANCE, JANUARY 1, NET COMPREHENSI- SETTLEMENTS, IN/(OUT) OF DECEMBER 31, (IN MILLIONS) 2009 INCOME VE 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: GMWB and GMAB embedded derivatives (1,832) 1,611(2) -- (78) -- (299)
(1) Represents a $7 million loss included in net realized investment gains (losses) and an $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 are now obtained from a nationally-recognized pricing service and 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. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. 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:
2010 2009 ---------------------------------------------------------------------------------- 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: Residential mortgage backed securities $78 $(26) $ -- $80 $(31) $ -- Asset backed securities 5 -- -- 1 -- -- -------------------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 83 (26) -- 81 (31) -- Future policy benefits -- -- (15) -- -- 1,582
During the reporting periods, 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, ------------------------------------------------------ 2010 2009 ------------------------------------------------------------------------------------------------------------- CARRYING FAIR CARRYING FAIR (IN MILLIONS) VALUE VALUE VALUE VALUE ------------------------------------------------------------------------------------------------------------- FINANCIAL ASSETS Commercial mortgage loans, net $ 2,470 $ 2,558 $ 2,532 $ 2,519 Policy loans 729 805 715 790 Other investments 210 224 226 245 Restricted cash 66 66 184 184 FINANCIAL LIABILITIES Future policy benefits $15,328 $15,768 $15,540 $15,657 Separate account liabilities 395 395 406 406 Line of credit with Ameriprise Financial 3 3 300 300 Borrowings under repurchase agreements 397 397 -- --
F-31 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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 the Company'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 and an investment in Federal Home Loan Bank of Des Moines ("FHLB"). The fair value of syndicated loans is obtained from a nationally-recognized pricing service. The carrying value of the investment in FHLB is considered a reasonable estimate of the fair value, as this represents the stated exit price for this investment. Restricted Cash Restricted cash is generally set aside for specific business transactions and restrictions are specific to the Company and do not transfer to third party market participants; therefore, the carrying 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 the Company's nonperformance risk specific to these liabilities. The fair value of other liabilities including non-life contingent fixed annuities in payout status, EIA host contracts 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 the Company. 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 the Company's nonperformance risk specific to this liability; however, due to the short-term nature of the line of credit, the carrying value is used as an approximation of the fair value. Borrowings under Repurchase Agreements The fair value of borrowings under agreements to repurchase is determined by discounting cash flows. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk. 14. RELATED PARTY TRANSACTIONS Columbia Management Investment Advisers, LLC is the investment manager for the proprietary mutual funds used as investment options by the Company's variable annuity contractholders and variable life insurance policyholders. The Company provides all fund management services, other than investment management, and is compensated for the administrative services it provides. For the years ended December 31, 2010, 2009 and 2008, the Company received $136 million, $87 million and $101 million, respectively, from Columbia Management Investment Advisers, LLC for these services. The Company participates in the Ameriprise Financial Retirement Plan which covers all permanent employees age 21 and over who have met certain employment requirements. Employer 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"). The Company's share of the total net periodic pension cost was $1 million in 2010, $2 million in 2009 and $1 million in 2008. The Company 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 $1 million in 2010 and $3 million in both 2009 and 2008. F-32 RiverSource Life Insurance Company -------------------------------------------------------------------------------- The Company also participates in the defined contribution pension plans of Ameriprise Financial which cover all employees who have met certain employment requirements. The Company 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 $1 million, $2 million and nil in 2010, 2009 and 2008, respectively. The Company 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 was nil in both 2010 and 2009 and $1 million in 2008. Charges by Ameriprise Financial and affiliated companies to the Company for use of joint facilities, technology support, marketing services and other services aggregated $527 million, $580 million and $673 million for 2010, 2009 and 2008, respectively. Certain of these costs are included in DAC. Expenses allocated to the Company may not be reflective of expenses that would have been incurred by the Company on a stand-alone basis. Dividends paid were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2010 2009 2008 ------------------------------------------------------------------------------------------------------- Cash dividends paid to Ameriprise Financial $500 $-- $775 Cash dividends paid to RiverSource Life Insurance Company from RiverSource Life of NY 28 -- 77 Cash dividend paid to RiverSource Life Insurance Company from RTA 63 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 15 for additional information. During 2010, the Company received a non-cash capital contribution of $14 million comprised of affordable housing partnership investments from Ameriprise Financial. 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 11 for more information on the Company's lines of credit. During 2008, the Company 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. There were no amounts included in other liabilities at December 31, 2010 and 2009 payable to Ameriprise Financial for federal income taxes. During 2009, the Company sold corporate bonds of $27 million to Ameriprise Financial and recognized a gain of $9 million. 15. 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 $810 million and $433 million as of December 31, 2010 and 2009, 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. F-33 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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) 2010 2009 2008 ------------------------------------------------------------------------------------------------------- (unaudited) Statutory net gain (loss) from operations(1) $1,200 $1,793 $(1,184) Statutory net income (loss)(1) 1,112 1,887 (1,407) Statutory capital and surplus 3,735 3,371 2,529
(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 and 2010. 16. DERIVATIVES AND HEDGING ACTIVITIES Derivative instruments enable the Company 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. The Company primarily enters into derivative agreements for risk management purposes related to the Company's products and operations. The Company uses derivatives as economic hedges and accounting hedges. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives:
ASSET LIABILITY DERIVATIVES NOT BALANCE --------------------------- BALANCE --------------------------- DESIGNATED SHEET DECEMBER 31, DECEMBER 31, SHEET DECEMBER 31, DECEMBER 31, AS HEDGING INSTRUMENTS LOCATION 2010 2009 LOCATION 2010 2009 ----------------------------------------------------------------------------------------------------------------- (IN MILLIONS) (IN MILLIONS) GMWB AND GMAB Interest rate Other contracts Other assets $366 $176 liabilities $ 379 $ 280 Other Equity contracts Other assets 354 425 liabilities 665 474 Other Credit contracts Other assets 4 12 liabilities 1 -- Future Embedded policy derivatives(1) N/A -- -- benefits 421 299 --------------------------- --------------------------- Total GMWB and GMAB 724 613 1,466 1,053 --------------------------- --------------------------- OTHER DERIVATIVES: EQUITY Other GMDB Other assets -- -- liabilities -- 2 Other EIA Other assets 1 2 liabilities -- -- Future EIA embedded policy derivatives N/A -- -- benefits 3 9 --------------------------- --------------------------- Total other 1 2 3 11 --------------------------- --------------------------- Total derivatives $725 $615 $1,469 $1,064 =========================== ===========================
N/A Not applicable (1) The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. See Note 13 for additional information regarding the Company's fair value measurement of derivative instruments. F-34 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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 years ended December 31:
LOCATION OF GAIN (LOSS) AMOUNT OF GAIN (LOSS) ON ON DERIVATIVES DERIVATIVES RECOGNIZED IN INCOME DERIVATIVES NOT DESIGNATED RECOGNIZED ------------------------------- AS HEDGING INSTRUMENTS IN INCOME 2010 2009 ------------------------------------------------------------------------------------- (IN MILLIONS) GMWB AND GMAB Benefits, claims, losses and settlement Interest rate contracts expenses $ 95 $ (435) Benefits, claims, losses and settlement Equity contracts expenses (370) (1,245) Benefits, claims, losses and settlement Credit contracts expenses (44) (65) Benefits, claims, losses and settlement Embedded derivatives(1) expenses (121) 1,533 ------------------------------------------------------------------------------------- Total GMWB and GMAB (440) (212) ------------------------------------------------------------------------------------- OTHER DERIVATIVES: EQUITY Benefits, claims, losses and settlement GMDB expenses (4) (10) Interest credited to fixed EIA accounts 2 4 Interest credited to fixed EIA embedded derivatives accounts 7 7 ------------------------------------------------------------------------------------- Total other 5 1 ------------------------------------------------------------------------------------- Total derivatives $(435) $ (211) =====================================================================================
(1) The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. The Company 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, interest rate and credit risk related to various products and transactions of the Company. The majority of the Company'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 consideration received at the beginning of the contract period, after a specified holding period, respectively. The Company 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, interest rate swaps, variance swaps and credit default swaps. At December 31, 2010 and 2009, the gross notional amount of derivative contracts for the Company's GMWB and GMAB provisions was $55.5 billion and $38.7 billion, respectively. The Company had previously entered into a limited number of derivative contracts to economically hedge equity exposure related to GMDB provisions on variable annuity contracts written in 2009. As of December 31, 2010, the Company did not have any outstanding hedges on its GMDB provisions. At December 31, 2009, the gross notional amount of derivative contracts for the Company's GMDB provisions was $77 million. The deferred premium associated with the above options is paid or received semi-annually over the life of the option contract. The following is a summary of the payments the Company is scheduled to make and receive for these options:
PREMIUMS PREMIUMS (IN MILLIONS) PAYABLE RECEIVABLE ------------------------------------------------------------------------------------------------- 2011 $266 $10 2012 245 9 2013 223 8 2014 197 7 2015 174 6 2016-2025 546 7
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. EIAs have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to EIA 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, the Company enters into index options and occasionally enters into futures contracts. The gross notional amount of these derivative contracts was $89 million and $129 million at December 31, 2010 and 2009, respectively. F-35 RiverSource Life Insurance Company -------------------------------------------------------------------------------- EMBEDDED DERIVATIVES Certain annuities contain GMAB and non-life contingent GMWB provisions, which are considered embedded derivatives. In addition, the equity component of the EIA product obligations is also considered an embedded derivative. These 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 discussed above, the Company uses derivatives to mitigate the financial statement impact of these embedded derivatives. CASH FLOW HEDGES The Company 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. The Company reclassifies these amounts into income as the forecasted transactions impact earnings. During the years ended December 31, 2010 and 2009, the Company held no derivatives that were designated as cash flow hedges. At December 31, 2010, the Company 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. During the years ended December 31, 2010 and 2009, no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the years ended December 31, 2010, 2009 and 2008, amounts recognized in earnings on derivative transactions that were ineffective were not material. The following is a summary of unrealized derivatives losses included in accumulated other comprehensive income (loss) related to cash flow hedges:
(IN MILLIONS) 2010 2009 2008 ------------------------------------------------------------------------------------------------------- Net unrealized derivatives losses at January 1 $(34) $(38) $(40) Unrealized derivative losses arising during the period -- -- (1) Reclassification of realized losses(1) 6 6 5 Income tax benefit (2) (2) (2) ------------------------------------------------------------------------------------------------------- Net unrealized derivatives losses at December 31 $(30) $(34) $(38) =======================================================================================================
(1) Loss reclassified from Accumulated Other Comprehensive Income (Loss) to Net Investment Income on Consolidated Statements of Income. Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is 8 years and relates to interest credited on forecasted fixed premium product sales. CREDIT RISK Credit risk associated with the Company'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, the Company 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 netting arrangements and collateral arrangements whenever practical. As of December 31, 2010 and 2009, the Company held $25 million and $88 million, respectively, in cash and cash equivalents and recorded a corresponding liability in other liabilities for collateral the Company is obligated to return to counterparties. As of December 31, 2010 and 2009, the Company had accepted additional collateral consisting of various securities with a fair value of $23 million and $22 million, respectively, which are not reflected on the Consolidated Balance Sheets. As of December 31, 2010 and 2009, the Company's maximum credit exposure related to derivative assets after considering netting arrangements with counterparties and collateral arrangements was approximately $25 million and $53 million, respectively. Certain of the Company's derivative instruments contain provisions that adjust the level of collateral the Company is required to post based on the Company's financial strength rating (or based on the debt rating of the Company's parent, Ameriprise Financial). Additionally, certain of the Company's derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company 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, the Company's counterparty could require immediate settlement of any net liability position. At December 31, 2010 and 2009, the aggregate fair value of all derivative instruments in a net liability position containing such credit risk features was $412 million and $296 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2010 and 2009 was $406 million and $269 million, respectively. If the credit risk features of derivative contracts that were in a net liability position at December 31, 2010 and 2009 were triggered, the additional fair value of assets needed to settle these derivative liabilities would have been $6 million and $27 million, respectively. F-36 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 17. INCOME TAXES The Company qualifies as a life insurance company for federal income tax purposes. As such, the Company is subject to the Internal Revenue Code provisions applicable to life insurance companies. Beginning in 2010, the Company's taxable income will be included in the consolidated federal income tax return of Ameriprise Financial. The Company provides for income taxes on a separate return basis, except that, under an agreement between Ameriprise Financial and the Company, tax benefits are recognized for losses to the extent they can be used in the consolidated return. It is the policy of Ameriprise Financial that is will reimburse its subsidiaries for any tax benefits recorded. The components of income tax provision (benefit) were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2010 2009 2008 ------------------------------------------------------------------------------------------------------- Current income tax: Federal $(167) $325 $ 42 State 3 1 3 ------------------------------------------------------------------------------------------------------- Total current income tax (164) 326 45 Deferred income tax Federal 417 (80) (236) State (1) (1) 2 ------------------------------------------------------------------------------------------------------- Total deferred income tax 416 (81) (234) ------------------------------------------------------------------------------------------------------- Total income tax provision (benefit) $ 252 $245 $(189) =======================================================================================================
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, ---------------------------------------- 2010 2009 2008 ------------------------------------------------------------------------------------------------------- Tax at U.S. statutory rate 35.0% 35.0% 35.0% Changes in taxes resulting from: Tax-exempt interest and dividend income (6.6) (7.2) 56.6 State taxes, net of federal benefit 0.1 -- (3.7) Low income housing credit (1.4) (2.0) 27.9 Foreign tax credit, net of addback (1.1) (1.0) 15.3 Taxes applicable to prior years (1.9) 0.1 29.2 Other, net -- (0.2) ------------------------------------------------------------------------------------------------------- Income tax provision 24.1% 24.9% 160.1% =======================================================================================================
The Company's effective tax rate was 24.1% and 24.9% for the years ended December 31, 2010 and 2009, respectively. The decrease in the effective tax rate primarily reflects benefits from tax planning and completion of certain audits which offset the impact of an increase in pretax income relative to tax advantaged items for 2010. 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 the Company's deferred income tax assets and liabilities are reflected in the following table:
DECEMBER 31, -------------------------- (IN MILLIONS) 2010 2009 ------------------------------------------------------------------------------------------------- Deferred income tax assets: Liabilities for future policy benefits $1,306 $1,390 Investment related 159 163 Net operating loss and tax credit carryforwards 31 185 ------------------------------------------------------------------------------------------------- Gross deferred income tax assets 1,496 1,738 ------------------------------------------------------------------------------------------------- Deferred income tax liabilities: DAC 1,429 1,264 Net unrealized gains on Available-for-Sale securities 364 203 DSIC 191 193 Other 26 15 ------------------------------------------------------------------------------------------------- Gross deferred income tax liabilities 2,010 1,675 ------------------------------------------------------------------------------------------------- Net deferred income tax assets (liabilities) $ (514) $ 63 =================================================================================================
The Company 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 deferred income tax assets are a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes and future deductible F-37 RiverSource Life Insurance Company -------------------------------------------------------------------------------- capital losses realized 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 the Company'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 the Company to utilize all of its deferred tax assets. Accordingly, no valuation allowance for deferred tax assets has been established as of December 31, 2010 and 2009. The Company has tax benefits related to capital loss carryforwards of $29 million which expire beginning December 31, 2015 as well as tax credit carryforwards of $2 million which expire beginning December 31, 2019. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
(IN MILLIONS) 2010 2009 2008 ------------------------------------------------------------------------------------------------------- Balance at January 1 $ (77) $(89) $ 97 Additions (reductions) based on tax positions related to the current year -- 1 (165) Additions for tax positions of prior years 322 18 38 Reductions for tax positions of prior years (196) (7) (59) Settlements 34 -- -- ------------------------------------------------------------------------------------------------------- Balance at December 31 $ 83 $(77) $ (89) =======================================================================================================
If recognized, approximately $39 million, $49 million and $30 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2010, 2009 and 2008, respectively, would affect the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net reduction of $8 million, $1 million and $14 million in interest and penalties for the year ended December 31, 2010, 2009 and 2008, respectively. At December 31, 2010 and 2009, the Company had a receivable of $24 million and $16 million, respectively, related to the accrual of interest and penalties. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. Based on the current audit position of the Company, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $25 million to $35 million in the next 12 months. The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal or state and local income tax examinations by tax authorities for years before 1997. The Internal Revenue Service ("IRS") completed its field examination of the Company's income tax returns for 2005 through 2007 during the third and fourth quarters of 2010. The IRS had completed its field examination of the 1997 through 2004 tax returns in recent years. 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 2010, the IRS commenced an examination of the Company's income tax returns for 2008 and 2009. The Company or certain of its subsidiaries' state income tax returns are currently under examination by various jurisdictions for years ranging from 1998 through 2009. 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. 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 the Company receives. The items comprising other comprehensive income (loss) are presented net of the following income tax provision (benefit) amounts:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2010 2009 2008 ------------------------------------------------------------------------------------------------------- Net unrealized securities gains (losses) $157 $587 $(302) Net unrealized derivative gains 2 2 2 ------------------------------------------------------------------------------------------------------- Net income tax provision (benefit) $159 $589 $(300) =======================================================================================================
F-38 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 18. COMMITMENTS AND CONTINGENCIES At December 31, 2010 and 2009, the Company had no material commitments to purchase investments other than mortgage loan fundings. See Note 6 for additional information. The Company's annuity and life products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2010, these guarantees range up to 5.0%. To the extent the yield on the Company's invested assets portfolio declines below its target spread plus the minimum guarantee, the Company's profitability would be negatively affected. Insurance companies have been the subject of increasing regulatory, legislative and judicial scrutiny. The SEC, the Financial Industry Regulatory Authority, commonly referred to as FINRA, and several state authorities have commenced examinations and other inquiries of insurance companies regarding sales and marketing practices (including sales to older consumers and disclosure practices), compensation arrangements and anticompetitive activities. The Company 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. The Company 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-39 (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 M (4/11) (C) 2008-2011 RiverSource Life Insurance Company. All rights reserved.