N-30B-2 1 c66740nv30bv2.txt N-30B-2 2011 Annual Report RiverSource Retirement Advisor Variable Annuity(R) - Band 3 (RIVERSOURCE ANNUITIES LOGO) (CHOOSE PAPERLESS LOGO) S-6477 T (4/12) Issued by: RiverSource Life Insurance Company ANNUAL FINANCIAL INFORMATION REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE BOARD OF DIRECTORS OF RIVERSOURCE LIFE INSURANCE COMPANY In our opinion, the accompanying statement of assets and liabilities and the related statements of operations and of changes in net assets present fairly, in all material respects, the financial position of each of the divisions of RiverSource Variable Account 10 that is offered through RiverSource Retirement Advisor Variable Annuity(R) - Band 3 sponsored by RiverSource Life Insurance Company, referred to in Note 1, at December 31, 2011, the results of their operations for the period then ended, and the changes in their net assets for the period then ended, in conformity with accounting principles generally accepted in the United States of America. 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 audit. We conducted our audit of these financial statements 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. An audit 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 audit, which included confirmation of securities at December 31, 2011 by correspondence with the affiliated and unaffiliated mutual fund managers, provides a reasonable basis for our opinion. The financial statements of the divisions of the Account as of December 31, 2010 and for the periods disclosed in those financial statements were audited by other auditors whose report dated April 22, 2011 expressed an unqualified opinion on those statements. PricewaterhouseCoopers LLP April 20, 2012 -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 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, 2011 CL B CL B CL B CL I CL II ASSETS Investments, at fair value(1),(2) $10,182,901 $107,039,432 $236,221,328 $15,549,834 $38,863,019 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 2,865 1,550 433,218 714 12,383 Receivable for share redemptions 14,613 162,963 170,791 25,600 86,633 ------------------------------------------------------------------------------------------------------------------------ Total assets 10,200,379 107,203,945 236,825,337 15,576,148 38,962,035 ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 7,696 75,990 170,792 10,938 29,530 Contract terminations 6,916 86,972 -- 14,662 57,103 Payable for investments purchased 2,865 1,550 433,218 714 12,383 ------------------------------------------------------------------------------------------------------------------------ Total liabilities 17,477 164,512 604,010 26,314 99,016 ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 10,156,167 106,941,472 235,802,291 15,509,554 38,795,446 Net assets applicable to contracts in payment period 26,735 97,961 419,036 40,280 67,573 Net assets applicable to seed money -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------ Total net assets $10,182,902 $107,039,433 $236,221,327 $15,549,834 $38,863,019 ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 702,269 5,993,249 20,721,169 2,092,844 2,878,742 (2) Investments, at cost $11,140,005 $123,399,006 $335,081,317 $18,201,225 $36,637,450 ------------------------------------------------------------------------------------------------------------------------ AC VP AC VP CALVERT VP COL VP COL VP ULTRA, VAL, SRI BAL, CASH MGMT, DEC. 31, 2011 (CONTINUED) CL II CL I BAL CL 3 CL 3 ASSETS Investments, at fair value(1),(2) $25,617,504 $47,555,924 $ 23,915,286 $211,520,569 $388,547,563 Dividends receivable -- -- -- -- 213 Accounts receivable from RiverSource Life for contract purchase payments 28,531 22,328 1,028 2,850 132,933 Receivable for share redemptions 42,139 48,433 16,946 -- -- ------------------------------------------------------------------------------------------------------------------------ Total assets 25,688,174 47,626,685 23,933,260 211,523,419 388,680,709 ------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 18,590 33,106 16,644 173,961 301,848 Contract terminations 23,549 15,328 301 61,634 404,625 Payable for investments purchased 28,531 22,328 1,028 -- -- ------------------------------------------------------------------------------------------------------------------------ Total liabilities 70,670 70,762 17,973 235,595 706,473 ------------------------------------------------------------------------------------------------------------------------ Net assets applicable to contracts in accumulation period 25,606,458 47,197,041 23,842,604 207,898,333 387,471,324 Net assets applicable to contracts in payment period 11,046 358,882 72,683 3,389,414 502,912 Net assets applicable to seed money -- -- -- 77 -- ------------------------------------------------------------------------------------------------------------------------ Total net assets $25,617,504 $47,555,923 $23,915,287 $211,287,824 $387,974,236 ------------------------------------------------------------------------------------------------------------------------ (1) Investment shares 2,736,913 8,199,297 13,673,692 14,937,893 388,547,563 (2) Investments, at cost $25,166,115 $54,392,262 $24,180,097 $210,251,337 $388,441,851 ------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 2 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES
COL VP COL VP COL VP COL VP COL VP DIV BOND, DIV EQ INC, DYN EQ, EMER MKTS OPP, GLOBAL BOND, DEC. 31, 2011 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 ASSETS Investments, at fair value(1),(2) $1,018,566,867 $771,249,353 $384,802,908 $272,345,125 $357,918,793 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 158,180 120,512 6,358 148,260 73,297 Receivable for share redemptions -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- Total assets 1,018,725,047 771,369,865 384,809,266 272,493,385 357,992,090 --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 767,178 579,526 307,494 213,540 271,069 Contract terminations 159,123 227,297 383,018 60,626 8,853 Payable for investments purchased -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- Total liabilities 926,301 806,823 690,512 274,166 279,922 --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 1,013,438,322 767,045,667 379,917,303 271,600,783 357,120,164 Net assets applicable to contracts in payment period 4,360,424 3,517,375 4,201,451 618,436 592,004 Net assets applicable to seed money -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- Total net assets $1,017,798,746 $770,563,042 $384,118,754 $272,219,219 $357,712,168 --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 90,943,470 61,650,628 18,927,836 19,720,863 30,204,118 (2) Investments, at cost $ 954,601,430 $746,109,508 $425,762,841 $254,750,367 $332,805,682 --------------------------------------------------------------------------------------------------------------------------- COL VP GLOBAL INFLATION COL VP COL VP COL VP COL VP PROT SEC, HI YIELD BOND, INC OPP, INTL OPP, LG CAP GRO, DEC. 31, 2011 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 ASSETS Investments, at fair value(1),(2) $268,528,966 $440,068,939 $200,639,436 $106,144,658 $120,574,871 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 116,268 30,297 352,159 4,095 24,798 Receivable for share redemptions -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- Total assets 268,645,234 440,099,236 200,991,595 106,148,753 120,599,669 --------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 197,331 334,146 147,279 89,760 84,713 Contract terminations 6,442 155,726 5,564 38,281 35,851 Payable for investments purchased -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- Total liabilities 203,773 489,872 152,843 128,041 120,564 --------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 268,384,456 437,292,489 200,574,350 105,085,243 120,098,765 Net assets applicable to contracts in payment period 57,005 2,316,875 264,402 935,469 380,340 Net assets applicable to seed money -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- Total net assets $268,441,461 $439,609,364 $200,838,752 $106,020,712 $120,479,105 --------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 28,000,935 65,389,144 19,984,008 10,167,113 18,268,920 (2) Investments, at cost $266,872,417 $430,147,000 $196,053,999 $110,048,204 $136,395,621 ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 3 STATEMENTS OF ASSETS AND LIABILITIES
COL VP COL VP COL VP COL VP MID CAP MID CAP COL VP MARSICO GRO, MARSICO INTL OPP, GRO OPP, VAL OPP, S&P 500, DEC. 31, 2011 (CONTINUED) CL 1 CL 2 CL 3 CL 3 CL 3 ASSETS Investments, at fair value(1),(2) $185,915,457 $49,157,528 $98,270,646 $86,005,774 $129,805,427 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 40,788 10,958 6,835 41,208 271 Receivable for share redemptions -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total assets 185,956,245 49,168,486 98,277,481 86,046,982 129,805,698 ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 137,069 36,923 78,692 63,470 93,424 Contract terminations 132,759 607 41,103 35,629 90,643 Payable for investments purchased -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 269,828 37,530 119,795 99,099 184,067 ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 185,328,041 48,955,604 97,493,435 85,882,201 129,025,870 Net assets applicable to contracts in payment period 358,376 175,222 664,251 65,682 595,694 Net assets applicable to seed money -- 130 -- -- 67 ---------------------------------------------------------------------------------------------------------------------------- Total net assets $185,686,417 $49,130,956 $98,157,686 $85,947,883 $129,621,631 ---------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 9,333,105 3,698,836 7,963,586 8,583,411 14,834,906 (2) Investments, at cost $160,429,615 $71,798,014 $90,296,668 $97,424,160 $114,471,257 ---------------------------------------------------------------------------------------------------------------------------- COL VP COL VP SELECT LG SELECT SM COL VP CS EV VT CAP VAL, CAP VAL, SHORT DURATION, COMMODITY FLOATING-RATE DEC. 31, 2011 (CONTINUED) CL 3 CL 3 CL 3 RETURN INC ASSETS Investments, at fair value(1),(2) $24,791,931 $50,916,922 $261,925,226 $ 88,474,347 $252,208,110 Dividends receivable -- -- -- -- 914,620 Accounts receivable from RiverSource Life for contract purchase payments 50 2,217 253,211 62,979 44,914 Receivable for share redemptions -- -- -- 85,658 209,160 ---------------------------------------------------------------------------------------------------------------------------- Total assets 24,791,981 50,919,139 262,178,437 88,622,984 253,376,804 ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 17,735 36,011 192,363 65,957 191,383 Contract terminations 108,356 12,438 59,277 19,701 17,778 Payable for investments purchased -- -- -- 62,979 959,534 ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 126,091 48,449 251,640 148,637 1,168,695 ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 24,656,223 50,754,917 261,303,114 88,267,293 251,873,017 Net assets applicable to contracts in payment period 9,667 115,773 623,683 207,054 335,092 Net assets applicable to seed money -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total net assets $24,665,890 $50,870,690 $261,926,797 $ 88,474,347 $252,208,109 ---------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 2,516,947 4,835,415 25,136,778 12,356,752 27,119,152 (2) Investments, at cost $24,197,303 $55,563,270 $258,471,920 $116,779,372 $249,698,399 ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 4 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES
FID VIP FID VIP FID VIP FID VIP FTVIPT FRANK CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, GLOBAL REAL EST, DEC. 31, 2011 (CONTINUED) SERV CL 2 SERV CL SERV CL SERV CL CL 2 ASSETS Investments, at fair value(1),(2) $431,773,289 $55,469,217 $124,443,416 $20,771,845 $141,421,974 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 34,504 -- 32,260 26,223 13,320 Receivable for share redemptions 461,547 59,882 345,308 14,548 175,712 ---------------------------------------------------------------------------------------------------------------------------- Total assets 432,269,340 55,529,099 124,820,984 20,812,616 141,611,006 ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 320,301 38,617 87,172 14,548 101,044 Contract terminations 141,247 21,265 258,135 -- 74,669 Payable for investments purchased 34,504 -- 32,260 26,223 13,320 ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 496,052 59,882 377,567 40,771 189,033 ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 430,741,835 55,286,771 123,500,471 20,574,620 141,129,296 Net assets applicable to contracts in payment period 1,031,239 182,446 942,946 197,225 292,677 Net assets applicable to seed money 214 -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total net assets $431,773,288 $55,469,217 $124,443,417 $20,771,845 $141,421,973 ---------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 19,071,258 4,433,990 4,301,535 1,529,591 12,626,962 (2) Investments, at cost $493,409,471 $62,227,970 $ 99,166,580 $27,675,696 $242,253,972 ---------------------------------------------------------------------------------------------------------------------------- GS VIT FTVIPT FRANK GS VIT STRUCTD GS VIT INVESCO VI SM CAP VAL, MID CAP VAL, SM CAP EQ, STRUCTD U.S. EQ, CAP APPR, DEC. 31, 2011 (CONTINUED) CL 2 INST INST INST SER I ASSETS Investments, at fair value(1),(2) $153,562,279 $248,013,797 $7,833,506 $140,631,287 $14,987,753 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments -- 6,338 6,068 6,894 1,434 Receivable for share redemptions 320,065 206,524 6,370 195,626 10,344 ---------------------------------------------------------------------------------------------------------------------------- Total assets 153,882,344 248,226,659 7,845,944 140,833,807 14,999,531 ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 111,485 174,839 5,447 99,371 10,344 Contract terminations 208,580 31,686 923 96,256 -- Payable for investments purchased -- 6,338 6,068 6,894 1,434 ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 320,065 212,863 12,438 202,521 11,778 ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 153,357,029 247,246,243 7,800,032 140,213,625 14,886,384 Net assets applicable to contracts in payment period 205,080 767,553 33,474 417,661 101,369 Net assets applicable to seed money 170 -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total net assets $153,562,279 $248,013,796 $7,833,506 $140,631,286 $14,987,753 ---------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 9,888,106 18,946,814 687,150 13,021,415 699,708 (2) Investments, at cost $136,598,406 $267,070,916 $7,663,459 $155,342,084 $21,168,177 ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 5 STATEMENTS OF ASSETS AND LIABILITIES
INVESCO VI INVESCO VI INVESCO VI INVESCO VANK VI JANUS ASPEN CAP DEV, GLOBAL HLTH, INTL GRO, COMSTOCK, ENTERPRISE, DEC. 31, 2011 (CONTINUED) SER I SER II SER II SER II SERV ASSETS Investments, at fair value(1),(2) $17,085,652 $23,253,130 $96,505,294 $213,630,049 $14,127,072 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 9,616 7,264 30,647 3,458 1,828 Receivable for share redemptions 19,193 26,916 85,768 258,880 9,870 ---------------------------------------------------------------------------------------------------------------------- Total assets 17,114,461 23,287,310 96,621,709 213,892,387 14,138,770 ---------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 11,967 17,141 70,762 154,569 9,536 Contract terminations 7,226 9,776 15,006 104,312 334 Payable for investments purchased 9,616 7,264 30,647 3,458 1,828 ---------------------------------------------------------------------------------------------------------------------- Total liabilities 28,809 34,181 116,415 262,339 11,698 ---------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 17,027,458 23,251,887 96,425,299 213,462,327 14,127,072 Net assets applicable to contracts in payment period 58,194 1,242 79,995 167,721 -- Net assets applicable to seed money -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------- Total net assets $17,085,652 $23,253,129 $96,505,294 $213,630,048 $14,127,072 ---------------------------------------------------------------------------------------------------------------------- (1) Investment shares 1,372,342 1,368,636 3,700,356 18,938,834 382,744 (2) Investments, at cost $17,946,908 $23,204,205 $96,903,644 $232,941,256 $13,543,578 ---------------------------------------------------------------------------------------------------------------------- JANUS ASPEN JANUS ASPEN JANUS ASPEN MFS MFS GLOBAL TECH, JANUS, OVERSEAS, INV GRO STOCK, NEW DIS, DEC. 31, 2011 (CONTINUED) SERV SERV SERV SERV CL SERV CL ASSETS Investments, at fair value(1),(2) $17,444,986 $58,201,899 $85,783,467 $70,257,235 $55,683,182 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 116 2,860 16,873 -- -- Receivable for share redemptions 35,863 70,630 61,524 104,959 77,029 ---------------------------------------------------------------------------------------------------------------------- Total assets 17,480,965 58,275,389 85,861,864 70,362,194 55,760,211 ---------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 12,042 43,432 60,464 50,239 39,334 Contract terminations 23,821 27,198 1,060 54,721 37,694 Payable for investments purchased 116 2,860 16,873 -- -- ---------------------------------------------------------------------------------------------------------------------- Total liabilities 35,979 73,490 78,397 104,960 77,028 ---------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 17,321,113 58,182,764 85,496,729 70,146,205 55,595,994 Net assets applicable to contracts in payment period 123,873 18,626 286,738 111,029 87,189 Net assets applicable to seed money -- 509 -- -- -- ---------------------------------------------------------------------------------------------------------------------- Total net assets $17,444,986 $58,201,899 $85,783,467 $70,257,234 $55,683,183 ---------------------------------------------------------------------------------------------------------------------- (1) Investment shares 3,374,272 2,575,305 2,292,450 6,523,420 4,052,633 (2) Investments, at cost $17,342,841 $55,789,022 $83,321,707 $63,076,878 $58,155,504 ----------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 6 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES
MFS MS UIF MS UIF NB AMT OPPEN UTILITIES, GLOBAL REAL EST, MID CAP GRO, INTL, GLOBAL SEC VA, DEC. 31, 2011 (CONTINUED) SERV CL CL II CL II CL S SERV ASSETS Investments, at fair value(1),(2) $241,228,783 $57,824,306 $58,188,778 $18,305,505 $89,944,702 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 102,300 7,603 94,067 6,427 49,797 Receivable for share redemptions 177,768 111,341 79,901 21,111 159,596 ------------------------------------------------------------------------------------------------------------------------------- Total assets 241,508,851 57,943,250 58,362,746 18,333,043 90,154,095 ------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 174,710 43,705 43,180 13,598 66,884 Contract terminations 3,060 67,637 36,722 7,513 92,713 Payable for investments purchased 102,300 7,603 94,067 6,427 49,797 ------------------------------------------------------------------------------------------------------------------------------- Total liabilities 280,070 118,945 173,969 27,538 209,394 ------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 240,826,343 57,651,524 58,098,879 18,296,639 89,703,362 Net assets applicable to contracts in payment period 402,204 172,781 89,585 8,866 241,033 Net assets applicable to seed money 234 -- 313 -- 306 ------------------------------------------------------------------------------------------------------------------------------- Total net assets $241,228,781 $57,824,305 $58,188,777 $18,305,505 $89,944,701 ------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 9,375,390 7,899,495 5,232,804 2,166,332 3,305,575 (2) Investments, at cost $228,483,045 $66,945,192 $58,135,228 $22,411,342 $98,019,450 ------------------------------------------------------------------------------------------------------------------------------- OPPEN OPPEN GLOBAL STRATEGIC MAIN ST SM PIMCO VIT PUT VT ROYCE INC VA, MID CAP VA, ALL ASSET, MULTI-CAP GRO, MICRO-CAP, DEC. 31, 2011 (CONTINUED) SRV SERV ADVISOR CL CL IB INVEST CL ASSETS Investments, at fair value(1),(2) $836,908,170 $61,074,608 $245,928,558 $25,683,972 $39,840,831 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 233,837 55,913 144,149 -- 4,103 Receivable for share redemptions 692,021 82,084 219,079 20,943 34,466 ------------------------------------------------------------------------------------------------------------------------------- Total assets 837,834,028 61,212,605 246,291,786 25,704,915 39,879,400 ------------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 626,528 45,699 185,760 17,755 27,903 Contract terminations 65,493 36,385 33,320 3,188 6,563 Payable for investments purchased 233,837 55,913 144,149 -- 4,103 ------------------------------------------------------------------------------------------------------------------------------- Total liabilities 925,858 137,997 363,229 20,943 38,569 ------------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 834,895,950 61,009,636 244,676,945 25,624,027 39,629,712 Net assets applicable to contracts in payment period 2,012,220 64,477 1,251,454 59,945 211,119 Net assets applicable to seed money -- 495 158 -- -- ------------------------------------------------------------------------------------------------------------------------------- Total net assets $836,908,170 $61,074,608 $245,928,557 $25,683,972 $39,840,831 ------------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 152,442,290 3,588,402 23,444,095 1,332,848 3,827,169 (2) Investments, at cost $805,481,490 $58,965,790 $259,112,727 $23,973,079 $34,122,009 -------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 7 STATEMENTS OF ASSETS AND LIABILITIES
VP VP VP VP THIRD AGGR, AGGR, CONSERV, CONSERV, DEC. 31, 2011 (CONTINUED) AVE VAL CL 2 CL 4 CL 2 CL 4 ASSETS Investments, at fair value(1),(2) $29,751,694 $660,069,367 $1,597,961,571 $634,828,789 $1,617,235,335 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 8,292 323,703 175,730 1,080,241 240,814 Receivable for share redemptions 88,315 -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total assets 29,848,301 660,393,070 1,598,137,301 635,909,030 1,617,476,149 ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 20,972 509,113 1,194,210 517,120 1,273,757 Contract terminations 67,342 70,674 381,920 1,072,936 139,916 Payable for investments purchased 8,292 -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 96,606 579,787 1,576,130 1,590,056 1,413,673 ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 29,577,584 659,608,259 1,596,561,171 634,174,532 1,616,062,476 Net assets applicable to contracts in payment period 174,111 205,013 -- 144,442 -- Net assets applicable to seed money -- 11 -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total net assets $29,751,695 $659,813,283 $1,596,561,171 $634,318,974 $1,616,062,476 ---------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 2,605,227 60,335,408 145,799,413 58,455,690 148,916,697 (2) Investments, at cost $42,896,201 $671,301,972 $1,428,139,699 $621,286,387 $1,513,975,238 ---------------------------------------------------------------------------------------------------------------------------- VP DAVIS VP GS VP VP VP NY VENTURE, MID CAP VAL, MOD, MOD, MOD AGGR, DEC. 31, 2011 (CONTINUED) CL 3 CL 3 CL 2 CL 4 CL 2 ASSETS Investments, at fair value(1),(2) $47,030,441 $13,025,687 $4,421,330,062 $10,580,932,462 $2,652,493,930 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 1,600 1,198 6,323,318 209,993 4,091,624 Receivable for share redemptions -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total assets 47,032,041 13,026,885 4,427,653,380 10,581,142,455 2,656,585,554 ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 34,621 9,396 3,511,462 8,160,114 2,070,544 Contract terminations 29,730 4,422 249,374 3,118,160 213,279 Payable for investments purchased -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 64,351 13,818 3,760,836 11,278,274 2,283,823 ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 46,904,691 13,008,170 4,423,394,111 10,569,864,181 2,652,293,404 Net assets applicable to contracts in payment period 62,999 4,897 498,422 -- 2,008,327 Net assets applicable to seed money -- -- 11 -- -- ---------------------------------------------------------------------------------------------------------------------------- Total net assets $46,967,690 $13,013,067 $4,423,892,544 $10,569,864,181 $2,654,301,731 ---------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 4,878,676 1,245,286 400,482,795 957,550,449 240,479,957 (2) Investments, at cost $42,222,703 $13,145,219 $4,354,587,565 $ 9,473,226,087 $2,649,569,972 ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 8 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF ASSETS AND LIABILITIES
VP VP VP VP PTNRS MOD AGGR, MOD CONSERV, MOD CONSERV, SM CAP VAL, WANGER DEC. 31, 2011 (CONTINUED) CL 4 CL 2 CL 4 CL 3 INTL ASSETS Investments, at fair value(1),(2) $6,319,310,914 $1,349,823,558 $3,331,573,198 $151,517,348 $323,983,647 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 7,774 557,319 2,008,827 6,131 209,840 Receivable for share redemptions -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total assets 6,319,318,688 1,350,380,877 3,333,582,025 151,523,479 324,193,487 ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 4,765,109 1,075,438 2,609,036 107,794 234,538 Contract terminations 1,527,083 802,695 692,416 67,863 1,156 Payable for investments purchased -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total liabilities 6,292,192 1,878,133 3,301,452 175,657 235,694 ---------------------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 6,313,026,496 1,348,115,886 3,330,280,573 151,024,879 323,469,987 Net assets applicable to contracts in payment period -- 386,847 -- 322,943 487,806 Net assets applicable to seed money -- 11 -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Total net assets $6,313,026,496 $1,348,502,744 $3,330,280,573 $151,347,822 $323,957,793 ---------------------------------------------------------------------------------------------------------------------------- (1) Investment shares 571,883,341 123,046,815 303,145,878 10,392,136 11,253,340 (2) Investments, at cost $5,648,730,634 $1,318,397,545 $3,038,664,921 $133,313,781 $291,752,651 ----------------------------------------------------------------------------------------------------------------------------
WF ADV VT INDEX WF ADV WF ADV WANGER ASSET ALLOC, VT INTL EQ, VT SM CAP GRO, DEC. 31, 2011 (CONTINUED) USA CL 2 CL 2 CL 2 ASSETS Investments, at fair value(1),(2) $349,838,407 $30,454,363 $53,181,287 $71,998,102 Dividends receivable -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 249,174 65,063 16,749 12,565 Receivable for share redemptions -- 22,080 40,216 85,408 ----------------------------------------------------------------------------------------------------------------- Total assets 350,087,581 30,541,506 53,238,252 72,096,075 ----------------------------------------------------------------------------------------------------------------- LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 251,614 21,366 39,306 53,295 Contract terminations 151,485 714 910 32,113 Payable for investments purchased -- 65,063 16,749 12,565 ----------------------------------------------------------------------------------------------------------------- Total liabilities 403,099 87,143 56,965 97,973 ----------------------------------------------------------------------------------------------------------------- Net assets applicable to contracts in accumulation period 349,184,691 30,241,332 53,038,869 71,935,641 Net assets applicable to contracts in payment period 499,791 213,031 142,418 62,295 Net assets applicable to seed money -- -- -- 166 ----------------------------------------------------------------------------------------------------------------- Total net assets $349,684,482 $30,454,363 $53,181,287 $71,998,102 ----------------------------------------------------------------------------------------------------------------- (1) Investment shares 11,739,544 2,518,971 11,125,792 9,374,753 (2) Investments, at cost $324,103,620 $30,829,106 $51,504,295 $67,936,681 -----------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 9 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, 2011 CL B CL B CL B CL I CL II INVESTMENT INCOME Dividend income $ 53,582 $1,219,088 $ 11,421,585 $ 301,966 $ 497,224 Variable account expenses 133,359 969,993 2,728,708 173,412 389,912 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (79,777) 249,095 8,692,877 128,554 107,312 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 6,869,625 22,036,181 79,163,008 6,534,801 11,657,562 Cost of investments sold 6,171,510 25,765,233 92,443,731 6,777,257 10,878,190 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 698,115 (3,729,052) (13,280,723) (242,456) 779,372 Distributions from capital gains -- -- -- -- 1,161,772 Net change in unrealized appreciation or depreciation of investments (4,147,422) 9,536,260 (58,263,957) (2,250,598) (2,918,483) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (3,449,307) 5,807,208 (71,544,680) (2,493,054) (977,339) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(3,529,084) $6,056,303 $ (62,851,803) $(2,364,500) $ (870,027) --------------------------------------------------------------------------------------------------------------------------- AC VP AC VP CALVERT VP COL VP COL VP ULTRA, VAL, SRI BAL, CASH MGMT, YEAR ENDED DEC. 31, 2011 (CONTINUED) CL II CL I BAL CL 3 CL 3 INVESTMENT INCOME Dividend income $ -- $ 1,091,382 $ 316,120 $ -- $ 38,501 Variable account expenses 240,986 459,704 216,880 2,281,869 3,506,223 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (240,986) 631,678 99,240 (2,281,869) (3,467,722) --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 6,950,509 15,888,005 5,134,704 44,143,841 218,203,330 Cost of investments sold 6,626,743 18,121,124 5,210,369 43,286,022 218,128,576 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 323,766 (2,233,119) (75,665) 857,819 74,754 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 42,971 1,693,051 914,829 4,921,407 (74,756) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 366,737 (540,068) 839,164 5,779,226 (2) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 125,751 $ 91,610 $ 938,404 $ 3,497,357 $ (3,467,724) --------------------------------------------------------------------------------------------------------------------------- COL VP COL VP COL VP COL VP COL VP DIV BOND, DIV EQ INC, DYN EQ, EMER MKTS OPP, GLOBAL BOND, YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 INVESTMENT INCOME Dividend income $ 47,452,651 $ -- $ -- $ 4,024,350 $10,965,007 Variable account expenses 9,695,872 8,232,608 4,048,062 3,364,512 3,535,859 --------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 37,756,779 (8,232,608) (4,048,062) 659,838 7,429,148 --------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 250,526,235 200,316,102 77,183,491 83,020,550 84,893,297 Cost of investments sold 236,850,747 186,516,070 86,315,356 65,841,696 78,371,335 --------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 13,675,488 13,800,032 (9,131,865) 17,178,854 6,521,962 Distributions from capital gains -- -- -- 5,337,046 1,890,127 Net change in unrealized appreciation or depreciation of investments 7,084,217 (56,233,013) 31,222,628 (105,474,270) (998,771) --------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 20,759,705 (42,432,981) 22,090,763 (82,958,370) 7,413,318 --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 58,516,484 $ (50,665,589) $18,042,701 $ (82,298,532) $14,842,466 ---------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 10 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF OPERATIONS
COL VP GLOBAL INFLATION COL VP COL VP COL VP COL VP PROT SEC, HI YIELD BOND, INC OPP, INTL OPP, LG CAP GRO, YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 INVESTMENT INCOME Dividend income $19,348,035 $ 39,094,376 $ 19,296,828 $ 1,783,190 $ -- Variable account expenses 2,395,328 4,374,707 1,880,633 1,373,944 1,189,996 ------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 16,952,707 34,719,669 17,416,195 409,246 (1,189,996) ------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 60,414,161 100,598,274 43,400,499 31,024,186 30,005,281 Cost of investments sold 60,729,182 96,813,476 41,393,308 28,972,595 32,230,766 ------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (315,021) 3,784,798 2,007,191 2,051,591 (2,225,485) Distributions from capital gains 3,347,936 -- 5,791,385 -- -- Net change in unrealized appreciation or depreciation of investments 2,921,865 (16,698,462) (14,394,751) (19,930,127) (1,515,229) ------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 5,954,780 (12,913,664) (6,596,175) (17,878,536) (3,740,714) ------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $22,907,487 $ 21,806,005 $ 10,820,020 $(17,469,290) $(4,930,710) ------------------------------------------------------------------------------------------------------------------------------- COL VP COL VP COL VP COL VP MID CAP MID CAP COL VP MARSICO GRO, MARSICO INTL OPP, GRO OPP, VAL OPP, S&P 500, YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 1 CL 2 CL 3 CL 3 CL 3 INVESTMENT INCOME Dividend income $ 636,457 $ 496,716 $ -- $ -- $ -- Variable account expenses 1,929,384 568,783 1,208,041 940,379 1,226,644 ------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (1,292,927) (72,067) (1,208,041) (940,379) (1,226,644) ------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 50,345,705 17,260,690 28,838,314 28,593,214 30,614,563 Cost of investments sold 46,776,937 20,393,444 23,440,397 30,278,227 26,851,245 ------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 3,568,768 (3,132,754) 5,397,917 (1,685,013) 3,763,318 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (9,443,234) (7,837,202) (24,183,586) (6,685,342) (1,115,552) ------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (5,874,466) (10,969,956) (18,785,669) (8,370,355) 2,647,766 ------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ (7,167,393) $(11,042,023) $(19,993,710) $ (9,310,734) $ 1,421,122 ------------------------------------------------------------------------------------------------------------------------------- COL VP COL VP SELECT LG SELECT SM COL VP CS EV VT CAP VAL, CAP VAL, SHORT DURATION, COMMODITY FLOATING-RATE YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 3 CL 3 CL 3 RETURN INC INVESTMENT INCOME Dividend income $ -- $ -- $ 2,516,087 $ 2,527,630 $11,468,711 Variable account expenses 247,383 520,846 2,496,378 924,893 2,490,882 ------------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (247,383) (520,846) 19,709 1,602,737 8,977,829 ------------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 8,895,890 13,676,713 99,604,592 17,280,403 51,191,037 Cost of investments sold 8,831,974 14,156,197 98,434,209 20,244,153 50,795,664 ------------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 63,916 (479,484) 1,170,383 (2,963,750) 395,373 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (1,286,569) (4,730,321) 133,477 (12,984,704) (6,202,068) ------------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (1,222,653) (5,209,805) 1,303,860 (15,948,454) (5,806,695) ------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(1,470,036) $ (5,730,651) $ 1,323,569 $(14,345,717) $ 3,171,134 -------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 11 STATEMENTS OF OPERATIONS
FID VIP FID VIP FID VIP FID VIP FTVIPT FRANK CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, GLOBAL REAL EST, YEAR ENDED DEC. 31, 2011 (CONTINUED) SERV CL 2 SERV CL SERV CL SERV CL CL 2 INVESTMENT INCOME Dividend income $ 3,615,852 $ 966,030 $ 208,596 $ 322,347 $ 12,653,876 Variable account expenses 4,378,484 542,455 1,364,353 249,770 1,415,519 ------------------------------------------------------------------------------------------------------------------------------ Investment income (loss) -- net (762,632) 423,575 (1,155,757) 72,577 11,238,357 ------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 81,690,612 19,929,237 50,931,452 10,746,060 27,409,629 Cost of investments sold 90,909,257 22,086,018 37,023,428 12,081,987 43,486,757 ------------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments (9,218,645) (2,156,781) 13,908,024 (1,335,927) (16,077,128) Distributions from capital gains -- -- 239,016 63,092 -- Net change in unrealized appreciation or depreciation of investments (7,113,432) 2,333,200 (30,659,723) (3,662,601) (5,103,085) ------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments (16,332,077) 176,419 (16,512,683) (4,935,436) (21,180,213) ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $(17,094,709) $ 599,994 $(17,668,440) $(4,862,859) $ (9,941,856) ------------------------------------------------------------------------------------------------------------------------------ GS VIT FTVIPT FRANK GS VIT STRUCTD GS VIT INVESCO VI SM CAP VAL, MID CAP VAL, SM CAP EQ, STRUCTD U.S. EQ, CAP APPR, YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 2 INST INST INST SER I INVESTMENT INCOME Dividend income $ 1,223,723 $ 2,064,152 $ 66,378 $ 2,505,185 $ 26,695 Variable account expenses 1,530,933 2,523,260 81,241 1,341,724 156,032 ------------------------------------------------------------------------------------------------------------------------------ Investment income (loss) -- net (307,210) (459,108) (14,863) 1,163,461 (129,337) ------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 37,846,175 64,238,072 3,593,565 35,827,548 5,716,548 Cost of investments sold 33,107,139 65,123,963 3,422,487 39,060,374 7,480,343 ------------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments 4,739,036 (885,891) 171,078 (3,232,826) (1,763,795) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (13,122,936) (18,837,323) (103,854) 7,411,743 465,439 ------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments (8,383,900) (19,723,214) 67,224 4,178,917 (1,298,356) ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $ (8,691,110) $(20,182,322) $ 52,361 $ 5,342,378 $(1,427,693) ------------------------------------------------------------------------------------------------------------------------------ INVESCO VI INVESCO VI INVESCO VI INVESCO VANK VI JANUS ASPEN CAP DEV, GLOBAL HLTH, INTL GRO, COMSTOCK, ENTERPRISE, YEAR ENDED DEC. 31, 2011 (CONTINUED) SER I SER II SER II SER II SERV INVESTMENT INCOME Dividend income $ -- $ -- $ 1,329,580 $ 3,252,062 $ -- Variable account expenses 161,318 208,660 993,791 2,092,162 136,164 ------------------------------------------------------------------------------------------------------------------------------ Investment income (loss) -- net (161,318) (208,660) 335,789 1,159,900 (136,164) ------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 5,524,498 5,535,143 23,082,366 45,080,370 4,293,492 Cost of investments sold 5,282,401 5,381,916 21,599,742 47,798,934 4,075,402 ------------------------------------------------------------------------------------------------------------------------------ Net realized gain (loss) on sales of investments 242,097 153,227 1,482,624 (2,718,564) 218,090 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (2,312,308) 697,429 (10,148,003) (5,040,416) (427,497) ------------------------------------------------------------------------------------------------------------------------------ Net gain (loss) on investments (2,070,211) 850,656 (8,665,379) (7,758,980) (209,407) ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations $ (2,231,529) $ 641,996 $ (8,329,590) $ (6,599,080) $ (345,571) ------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 12 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF OPERATIONS
JANUS ASPEN JANUS ASPEN JANUS ASPEN MFS MFS GLOBAL TECH, JANUS, OVERSEAS, INV GRO STOCK, NEW DIS, YEAR ENDED DEC. 31, 2011 (CONTINUED) SERV SERV SERV SERV CL SERV CL INVESTMENT INCOME Dividend income $ -- $ 308,513 $ 517,455 $ 196,219 $ -- Variable account expenses 183,494 644,943 1,131,243 669,085 555,885 ----------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (183,494) (336,430) (613,788) (472,866) (555,885) ----------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 6,651,320 23,765,013 41,932,934 17,359,974 8,874,832 Cost of investments sold 6,180,171 21,856,227 32,362,462 15,238,552 8,001,913 ----------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 471,149 1,908,786 9,570,472 2,121,422 872,919 Distributions from capital gains -- -- 1,361,065 -- 8,256,051 Net change in unrealized appreciation or depreciation of investments (2,302,883) (6,032,184) (59,965,825) (1,774,771) (16,395,393) ----------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (1,831,734) (4,123,398) (49,034,288) 346,651 (7,266,423) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(2,015,228) $(4,459,828) $(49,648,076) $ (126,215) $ (7,822,308) ----------------------------------------------------------------------------------------------------------------------------- MFS MS UIF MS UIF NB AMT OPPEN UTILITIES, GLOBAL REAL EST, MID CAP GRO, INTL, GLOBAL SEC VA, YEAR ENDED DEC. 31, 2011 (CONTINUED) SERV CL CL II CL II CL S SERV INVESTMENT INCOME Dividend income $ 7,085,605 $ 2,287,003 $ 152,060 $ 1,342,848 $ 1,101,748 Variable account expenses 2,101,889 627,777 568,452 196,750 938,446 ----------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 4,983,716 1,659,226 (416,392) 1,146,098 163,302 ----------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 26,293,442 14,150,574 11,307,144 5,749,976 17,725,771 Cost of investments sold 24,518,221 15,064,515 10,127,162 6,124,682 17,878,953 ----------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 1,775,221 (913,941) 1,179,982 (374,706) (153,182) Distributions from capital gains -- -- 25,621 -- -- Net change in unrealized appreciation or depreciation of investments 6,180,189 (8,308,301) (6,049,699) (3,725,955) (9,678,483) ----------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments 7,955,410 (9,222,242) (4,844,096) (4,100,661) (9,831,665) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $12,939,126 $(7,563,016) $(5,260,488) $(2,954,563) $(9,668,363) ----------------------------------------------------------------------------------------------------------------------------- OPPEN OPPEN GLOBAL STRATEGIC MAIN ST SM PIMCO VIT PUT VT ROYCE INC VA, MID CAP VA, ALL ASSET, MULTI-CAP GRO, MICRO-CAP, YEAR ENDED DEC. 31, 2011 (CONTINUED) SRV SERV ADVISOR CL CL IB INVEST CL INVESTMENT INCOME Dividend income $ 26,882,099 $ 288,012 $18,734,244 $ 79,628 $ 1,078,280 Variable account expenses 8,382,802 633,916 2,272,592 253,279 440,977 ----------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 18,499,297 (345,904) 16,461,652 (173,651) 637,303 ----------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 173,717,908 16,737,789 35,261,101 6,531,444 16,494,481 Cost of investments sold 163,539,689 15,675,845 35,288,898 5,756,037 12,331,406 ----------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 10,178,219 1,061,944 (27,797) 775,407 4,163,075 Distributions from capital gains 11,696,484 -- -- -- -- Net change in unrealized appreciation or depreciation of investments (40,369,088) (2,786,302) (13,922,833) (2,204,844) (11,145,299) ----------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (18,494,385) (1,724,358) (13,950,630) (1,429,437) (6,982,224) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $ 4,912 $(2,070,262) $ 2,511,022 $ (1,603,088) $ (6,344,921) -----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 13 STATEMENTS OF OPERATIONS
VP VP VP VP THIRD AGGR, AGGR, CONSERV, CONSERV, YEAR ENDED DEC. 31, 2011 (CONTINUED) AVE VAL CL 2 CL 4 CL 2 CL 4 INVESTMENT INCOME Dividend income $ 708,138 $ -- $ -- $ -- $ -- Variable account expenses 361,721 4,488,953 16,139,816 3,761,505 13,513,950 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net 346,417 (4,488,953) (16,139,816) (3,761,505) (13,513,950) ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 14,735,338 34,204,827 267,775,635 63,485,575 332,064,654 Cost of investments sold 17,691,109 34,275,927 230,983,010 61,982,585 309,676,297 ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments (2,955,771) (71,100) 36,792,625 1,502,990 22,388,357 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (6,801,055) (27,216,458) (85,403,261) 8,542,996 22,529,730 ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (9,756,826) (27,287,558) (48,610,636) 10,045,986 44,918,087 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(9,410,409) $(31,776,511) $ (64,750,452) $ 6,284,481 $ 31,404,137 ---------------------------------------------------------------------------------------------------------------------------- VP DAVIS VP GS VP VP VP NY VENTURE, MID CAP VAL, MOD, MOD, MOD AGGR, YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 3 CL 3 CL 2 CL 4 CL 2 INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ -- $ -- Variable account expenses 487,057 126,315 30,692,100 105,753,467 18,853,259 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (487,057) (126,315) (30,692,100) (105,753,467) (18,853,259) ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 17,323,861 3,356,506 95,506,581 1,184,111,221 90,284,718 Cost of investments sold 15,093,910 3,166,782 92,785,305 1,050,626,656 89,057,660 ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 2,229,951 189,724 2,721,276 133,484,565 1,227,058 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (4,084,293) (1,130,547) (28,156,897) (85,113,845) (65,055,187) ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (1,854,342) (940,823) (25,435,621) 48,370,720 (63,828,129) ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(2,341,399) $(1,067,138) $ (56,127,721) $ (57,382,747) $ (82,681,388) ---------------------------------------------------------------------------------------------------------------------------- VP VP VP VP PTNRS MOD AGGR, MOD CONSERV, MOD CONSERV, SM CAP VAL, WANGER YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 4 CL 2 CL 4 CL 3 INTL INVESTMENT INCOME Dividend income $ -- $ -- $ -- $ -- $ 19,399,497 Variable account expenses 64,412,082 8,868,256 31,026,461 1,494,022 3,564,982 ---------------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (64,412,082) (8,868,256) (31,026,461) (1,494,022) 15,834,515 ---------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 956,263,457 60,354,652 426,816,818 42,566,717 84,416,863 Cost of investments sold 845,896,143 58,294,163 386,195,092 36,464,175 96,806,074 ---------------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 110,367,314 2,060,489 40,621,726 6,102,542 (12,389,211) Distributions from capital gains -- -- -- -- 9,992,764 Net change in unrealized appreciation or depreciation of investments (205,202,717) 9,434,660 27,264,700 (13,816,553) (75,765,979) ---------------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (94,835,403) 11,495,149 67,886,426 (7,714,011) (78,162,426) ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(159,247,485) $ 2,626,893 $ 36,859,965 $ (9,208,033) $ (62,327,911) ----------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- 14 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF OPERATIONS
WF ADV VT INDEX WF ADV WF ADV WANGER ASSET ALLOC, VT INTL EQ, VT SM CAP GRO, YEAR ENDED DEC. 31, 2011 (CONTINUED) USA CL 2 CL 2 CL 2 INVESTMENT INCOME Dividend income $ -- $ 979,207 $ 68,749 $ -- Variable account expenses 3,579,648 283,912 587,269 775,985 ------------------------------------------------------------------------------------------------------------------- Investment income (loss) -- net (3,579,648) 695,295 (518,520) (775,985) ------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 86,090,720 8,617,333 16,054,841 28,597,140 Cost of investments sold 78,668,280 8,840,167 13,657,921 26,494,217 ------------------------------------------------------------------------------------------------------------------- Net realized gain (loss) on sales of investments 7,422,440 (222,834) 2,396,920 2,102,923 Distributions from capital gains 37,345,076 -- 2,903,463 -- Net change in unrealized appreciation or depreciation of investments (55,601,899) 1,306,560 (13,726,538) (6,401,488) ------------------------------------------------------------------------------------------------------------------- Net gain (loss) on investments (10,834,383) 1,083,726 (8,426,155) (4,298,565) ------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations $(14,414,031) $1,779,021 $ (8,944,675) $ (5,074,550) -------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 15 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, 2011 CL B CL B CL B CL I CL II OPERATIONS Investment income (loss) -- net $ (79,777) $ 249,095 $ 8,692,877 $ 128,554 $ 107,312 Net realized gain (loss) on sales of investments 698,115 (3,729,052) (13,280,723) (242,456) 779,372 Distributions from capital gains -- -- -- -- 1,161,772 Net change in unrealized appreciation or depreciation of investments (4,147,422) 9,536,260 (58,263,957) (2,250,598) (2,918,483) ----------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (3,529,084) 6,056,303 (62,851,803) (2,364,500) (870,027) ----------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 349,234 1,684,682 5,214,226 212,641 780,134 Net transfers(1) (3,137,471) (7,268,602) (46,052,745) (2,153,202) (1,424,795) Transfers for policy loans (328) 19,906 85,152 8,957 7,446 Adjustments to net assets allocated to contracts in payment period (1,589) (36,592) (35,026) (3,172) (8,123) Contract charges (13,923) (89,672) (382,522) (8,761) (49,599) Contract terminations: Surrender benefits (1,173,748) (9,200,421) (27,099,478) (3,955,017) (3,467,940) Death benefits (30,133) (723,272) (2,358,900) (141,584) (248,744) ----------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (4,007,958) (15,613,971) (70,629,293) (6,040,138) (4,411,621) ----------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 17,719,944 116,597,101 369,702,423 23,954,472 44,144,667 ----------------------------------------------------------------------------------------------------------------------- Net assets at end of year $10,182,902 $107,039,433 $236,221,327 $15,549,834 $38,863,019 ----------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 14,008,038 110,774,810 253,175,514 19,455,369 39,382,920 Contract purchase payments 301,872 1,546,562 4,386,226 175,701 658,593 Net transfers(1) (2,655,307) (6,374,889) (33,107,626) (1,791,104) (1,500,825) Transfers for policy loans 120 17,160 68,703 7,629 7,404 Contract charges (12,040) (82,353) (272,827) (7,269) (43,959) Contract terminations: Surrender benefits (1,018,642) (8,345,693) (19,108,502) (3,254,750) (3,215,098) Death benefits (25,997) (652,326) (1,726,403) (116,690) (225,890) ----------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 10,598,044 96,883,271 203,415,085 14,468,886 35,063,145 -----------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. -------------------------------------------------------------------------------- 16 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
AC VP AC VP CALVERT VP COL VP COL VP ULTRA, VAL, SRI BAL, CASH MGMT, YEAR ENDED DEC. 31, 2011 (CONTINUED) CL II CL I BAL CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (240,986) $ 631,678 $ 99,240 $ (2,281,869) $ (3,467,722) Net realized gain (loss) on sales of investments 323,766 (2,233,119) (75,665) 857,819 74,754 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 42,971 1,693,051 914,829 4,921,407 (74,756) ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 125,751 91,610 938,404 3,497,357 (3,467,724) ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 488,179 569,075 549,750 4,351,615 23,063,387 Net transfers(1) (694,061) (2,955,141) (1,768,531) (10,855,107) 64,679,456 Transfers for policy loans 188 20,200 (26,956) 84,551 468,742 Adjustments to net assets allocated to contracts in payment period 1,099 (25,964) (8,592) (451,659) (1,172,715) Contract charges (25,589) (21,142) (23,513) (189,643) (311,347) Contract terminations: Surrender benefits (2,473,243) (11,336,352) (2,405,913) (23,250,050) (106,848,408) Death benefits (91,397) (542,246) (190,551) (3,833,234) (5,899,680) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (2,794,824) (14,291,570) (3,874,306) (34,143,527) (26,020,565) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 28,286,577 61,755,883 26,851,189 241,933,994 417,462,525 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $25,617,504 $ 47,555,923 $23,915,287 $211,287,824 $ 387,974,236 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 26,549,812 36,229,066 24,838,317 182,003,855 361,513,048 Contract purchase payments 443,621 334,426 488,101 3,352,654 20,939,641 Net transfers(1) (560,049) (1,740,253) (1,626,442) (9,129,092) 50,289,552 Transfers for policy loans 78 12,485 (24,256) 44,108 405,751 Contract charges (23,421) (12,485) (21,085) (139,908) (270,211) Contract terminations: Surrender benefits (2,276,662) (6,687,749) (2,169,513) (16,443,126) (92,144,290) Death benefits (83,597) (325,514) (176,353) (2,789,743) (5,170,792) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 24,049,782 27,809,976 21,308,769 156,898,748 335,562,699 -------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 17 STATEMENTS OF CHANGES IN NET ASSETS
COL VP COL VP COL VP COL VP COL VP DIV BOND, DIV EQ INC, DYN EQ, EMER MKTS OPP, GLOBAL BOND, YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ 37,756,779 $ (8,232,608) $ (4,048,062) $ 659,838 $ 7,429,148 Net realized gain (loss) on sales of investments 13,675,488 13,800,032 (9,131,865) 17,178,854 6,521,962 Distributions from capital gains -- -- -- 5,337,046 1,890,127 Net change in unrealized appreciation or depreciation of investments 7,084,217 (56,233,013) 31,222,628 (105,474,270) (998,771) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 58,516,484 (50,665,589) 18,042,701 (82,298,532) 14,842,466 --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 11,104,060 13,083,990 6,445,647 5,651,513 4,134,257 Net transfers(1) (79,636,224) (97,952,644) (25,404,171) (34,105,456) (24,577,754) Transfers for policy loans 258,150 299,570 614,881 45,943 18,875 Adjustments to net assets allocated to contracts in payment period (900,085) (807,254) (607,713) (91,050) (148,609) Contract charges (1,190,305) (815,267) (871,932) (382,490) (408,015) Contract terminations: Surrender benefits (118,212,074) (87,606,474) (45,721,134) (36,168,231) (41,765,064) Death benefits (13,901,893) (8,921,072) (4,581,224) (2,432,016) (4,853,245) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (202,478,371) (182,719,151) (70,125,646) (67,481,787) (67,599,555) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,161,760,633 1,003,947,782 436,201,699 421,999,538 410,469,257 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $1,017,798,746 $ 770,563,042 $384,118,754 $ 272,219,219 $357,712,168 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 773,782,511 652,140,493 471,052,959 179,451,951 247,731,021 Contract purchase payments 7,685,651 9,169,060 6,583,867 2,816,379 2,653,614 Net transfers(1) (53,506,063) (65,120,514) (28,490,179) (15,950,634) (14,585,197) Transfers for policy loans 154,596 182,243 593,997 28,166 10,013 Contract charges (790,509) (568,769) (951,944) (175,896) (245,464) Contract terminations: Surrender benefits (75,474,599) (56,221,619) (45,809,230) (16,746,058) (23,855,555) Death benefits (9,086,580) (5,916,389) (4,821,160) (1,170,127) (2,906,986) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 642,765,007 533,664,505 398,158,310 148,253,781 208,801,446 ---------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
COL VP GLOBAL INFLATION COL VP COL VP COL VP COL VP PROT SEC, HI YIELD BOND, INC OPP, INTL OPP, LG CAP GRO, YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ 16,952,707 $ 34,719,669 $ 17,416,195 $ 409,246 $ (1,189,996) Net realized gain (loss) on sales of investments (315,021) 3,784,798 2,007,191 2,051,591 (2,225,485) Distributions from capital gains 3,347,936 -- 5,791,385 -- -- Net change in unrealized appreciation or depreciation of investments 2,921,865 (16,698,462) (14,394,751) (19,930,127) (1,515,229) ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 22,907,487 21,806,005 10,820,020 (17,469,290) (4,930,710) ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 2,705,160 5,384,619 2,212,144 2,041,240 2,410,949 Net transfers(1) (7,953,950) (28,056,746) (5,637,089) (10,211,612) (12,087,578) Transfers for policy loans 2,212 12,272 (11,092) 92,286 46,985 Adjustments to net assets allocated to contracts in payment period (94,178) (407,197) (32,765) (40,158) (59,145) Contract charges (536,757) (288,148) (299,404) (107,604) (151,694) Contract terminations: Surrender benefits (24,927,707) (54,514,417) (19,173,946) (15,883,928) (13,694,349) Death benefits (3,061,850) (5,808,635) (2,676,203) (1,505,197) (1,121,618) ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (33,867,070) (83,678,252) (25,618,355) (25,614,973) (24,656,450) ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 279,401,044 501,481,611 215,637,087 149,104,975 150,066,265 ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $268,441,461 $ 439,609,364 $200,838,752 $106,020,712 $120,479,105 ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 230,071,826 288,798,686 148,511,955 124,227,630 218,834,713 Contract purchase payments 2,154,754 3,132,405 1,514,493 1,741,446 3,306,348 Net transfers(1) (6,880,723) (16,184,608) (3,883,278) (9,561,484) (17,685,759) Transfers for policy loans 1,501 6,514 (7,368) 68,137 71,520 Contract charges (423,897) (163,223) (201,887) (92,562) (218,460) Contract terminations: Surrender benefits (19,725,088) (30,056,406) (12,757,617) (13,224,454) (19,524,845) Death benefits (2,453,502) (3,274,558) (1,801,711) (1,317,031) (1,549,520) ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 202,744,871 242,258,810 131,374,587 101,841,682 183,233,997 ----------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 19 STATEMENTS OF CHANGES IN NET ASSETS
COL VP COL VP COL VP COL VP MID CAP MID CAP COL VP MARSICO GRO, MARSICO INTL OPP, GRO OPP, VAL OPP, S&P 500, YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 1 CL 2 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (1,292,927) $ (72,067) $ (1,208,041) $ (940,379) $ (1,226,644) Net realized gain (loss) on sales of investments 3,568,768 (3,132,754) 5,397,917 (1,685,013) 3,763,318 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (9,443,234) (7,837,202) (24,183,586) (6,685,342) (1,115,552) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (7,167,393) (11,042,023) (19,993,710) (9,310,734) 1,421,122 --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 3,542,166 1,827,761 2,194,491 1,756,106 3,684,735 Net transfers(1) (22,898,266) (9,417,816) (9,465,355) (17,101,477) (7,821,985) Transfers for policy loans 30,846 19,042 128,416 (5,608) 60,165 Adjustments to net assets allocated to contracts in payment period (43,213) (64,266) (91,035) (12,687) (190,383) Contract charges (269,518) (45,853) (116,334) (87,898) (110,295) Contract terminations: Surrender benefits (19,312,298) (5,497,868) (13,435,097) (8,533,956) (14,559,679) Death benefits (1,834,224) (412,057) (1,228,604) (931,619) (1,555,514) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (40,784,507) (13,591,057) (22,013,518) (24,917,139) (20,492,956) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 233,638,317 73,764,036 140,164,914 120,175,756 148,693,465 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $185,686,417 $ 49,130,956 $ 98,157,686 $ 85,947,883 $129,621,631 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 211,659,373 70,989,115 100,047,912 94,586,316 156,454,136 Contract purchase payments 3,154,816 1,852,806 1,663,481 1,478,962 3,635,294 Net transfers(1) (21,220,656) (9,928,083) (6,786,868) (13,649,026) (8,159,128) Transfers for policy loans 28,372 20,752 101,763 (4,013) 65,977 Contract charges (241,987) (46,878) (88,427) (71,388) (114,862) Contract terminations: Surrender benefits (17,649,427) (5,674,348) (10,358,224) (6,746,249) (15,256,251) Death benefits (1,663,542) (406,608) (934,975) (774,870) (1,671,125) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 174,066,949 56,806,756 83,644,662 74,819,732 134,954,041 ---------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
COL VP COL VP SELECT LG SELECT SM COL VP CS EV VT CAP VAL, CAP VAL, SHORT DURATION, COMMODITY FLOATING-RATE YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 3 CL 3 CL 3 RETURN INC OPERATIONS Investment income (loss) -- net $ (247,383) $ (520,846) $ 19,709 $ 1,602,737 $ 8,977,829 Net realized gain (loss) on sales of investments 63,916 (479,484) 1,170,383 (2,963,750) 395,373 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (1,286,569) (4,730,321) 133,477 (12,984,704) (6,202,068) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (1,470,036) (5,730,651) 1,323,569 (14,345,717) 3,171,134 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 410,496 940,529 4,424,691 2,319,797 3,833,310 Net transfers(1) 3,001,667 (3,914,194) (26,048,491) 9,121,944 29,074,541 Transfers for policy loans (23,393) 15,554 (14,609) (13,280) (97,960) Adjustments to net assets allocated to contracts in payment period (12,430) (99,501) (391,780) 1,980 (26,384) Contract charges (20,090) (48,508) (179,610) (64,413) (242,121) Contract terminations: Surrender benefits (2,273,228) (6,351,593) (35,263,403) (9,160,866) (28,520,870) Death benefits (294,503) (405,639) (3,219,731) (568,588) (2,922,315) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 788,519 (9,863,352) (60,692,933) 1,636,574 1,098,201 -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 25,347,407 66,464,693 321,296,161 101,183,490 247,938,774 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $24,665,890 $50,870,690 $261,926,797 $ 88,474,347 $252,208,109 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 21,861,680 39,283,530 251,534,231 98,349,809 214,175,050 Contract purchase payments 361,518 627,143 3,667,132 2,269,480 3,282,765 Net transfers(1) 1,848,628 (2,332,609) (21,183,315) 8,479,116 24,123,521 Transfers for policy loans (20,587) 8,025 (9,483) (10,341) (82,831) Contract charges (17,301) (30,086) (140,177) (64,031) (206,871) Contract terminations: Surrender benefits (1,918,520) (3,781,066) (27,217,539) (9,166,266) (24,367,574) Death benefits (246,154) (274,221) (2,520,951) (575,142) (2,517,542) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 21,869,264 33,500,716 204,129,898 99,282,625 214,406,518 --------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 21 STATEMENTS OF CHANGES IN NET ASSETS
FID VIP FID VIP FID VIP FID VIP FTVIPT FRANK CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, GLOBAL REAL EST, YEAR ENDED DEC. 31, 2011 (CONTINUED) SERV CL 2 SERV CL SERV CL SERV CL CL 2 OPERATIONS Investment income (loss) -- net $ (762,632) $ 423,575 $ (1,155,757) $ 72,577 $ 11,238,357 Net realized gain (loss) on sales of investments (9,218,645) (2,156,781) 13,908,024 (1,335,927) (16,077,128) Distributions from capital gains -- -- 239,016 63,092 -- Net change in unrealized appreciation or depreciation of investments (7,113,432) 2,333,200 (30,659,723) (3,662,601) (5,103,085) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (17,094,709) 599,994 (17,668,440) (4,862,859) (9,941,856) --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 13,617,283 680,281 1,564,503 337,238 2,912,900 Net transfers(1) (31,652,180) (5,984,374) (18,513,456) (3,600,603) (7,527,190) Transfers for policy loans (36,515) (7,398) (8,036) 12,622 40,404 Adjustments to net assets allocated to contracts in payment period (12,470) (13,916) (15,687) (15,981) (49,114) Contract charges (350,136) (31,872) (67,932) (11,699) (132,455) Contract terminations: Surrender benefits (41,450,187) (12,948,282) (31,283,725) (6,674,055) (15,370,902) Death benefits (3,430,483) (587,027) (1,139,986) (437,864) (1,118,698) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (63,314,688) (18,892,588) (49,464,319) (10,390,342) (21,245,055) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 512,182,685 73,761,811 191,576,176 36,025,046 172,608,884 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $431,773,288 $ 55,469,217 $124,443,417 $ 20,771,845 $141,421,973 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 474,193,233 69,939,704 49,947,106 29,437,972 103,134,885 Contract purchase payments 12,367,647 640,208 419,277 286,579 2,053,337 Net transfers(1) (30,176,100) (5,635,188) (5,079,029) (3,076,616) (3,375,804) Transfers for policy loans (36,219) (4,019) (2,709) 12,605 17,208 Contract charges (323,363) (30,165) (18,367) (10,047) (79,200) Contract terminations: Surrender benefits (38,537,769) (12,194,766) (8,392,804) (5,661,676) (8,956,951) Death benefits (3,209,855) (547,075) (307,128) (370,823) (672,778) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 414,277,574 52,168,699 36,566,346 20,617,994 92,120,697 ---------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
FTVIPT FRANK GS VIT GS VIT STRUCTD GS VIT INVESCO VI SM CAP VAL, MID CAP VAL, SM CAP EQ, STRUCTD U.S. EQ, CAP APPR, YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 2 INST INST INST SER I OPERATIONS Investment income (loss) -- net $ (307,210) $ (459,108) $ (14,863) $ 1,163,461 $ (129,337) Net realized gain (loss) on sales of investments 4,739,036 (885,891) 171,078 (3,232,826) (1,763,795) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (13,122,936) (18,837,323) (103,854) 7,411,743 465,439 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (8,691,110) (20,182,322) 52,361 5,342,378 (1,427,693) -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 4,226,546 3,231,712 129,812 1,857,530 298,224 Net transfers(1) (18,864,587) (31,713,750) (954,238) (17,242,232) (1,855,376) Transfers for policy loans 38,057 57,644 11,837 23,260 25,062 Adjustments to net assets allocated to contracts in payment period (16,281) 268,584 (3,298) 258,557 (6,360) Contract charges (115,029) (308,323) (4,868) (361,060) (12,877) Contract terminations: Surrender benefits (15,173,862) (29,344,229) (2,141,560) (15,415,169) (3,456,514) Death benefits (1,203,416) (2,199,731) (188,137) (1,345,689) (263,500) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (31,108,572) (60,008,093) (3,150,452) (32,224,803) (5,271,341) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 193,361,961 328,204,211 10,931,597 167,513,711 21,686,787 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $153,562,279 $248,013,796 $ 7,833,506 $140,631,286 $14,987,753 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 91,828,282 122,523,113 6,309,038 174,646,997 24,186,478 Contract purchase payments 2,707,593 1,267,769 73,765 1,853,965 337,989 Net transfers(1) (8,747,173) (12,100,741) (545,319) (17,352,156) (2,105,232) Transfers for policy loans 21,210 23,505 6,597 23,453 28,339 Contract charges (57,666) (117,631) (2,787) (362,896) (14,594) Contract terminations: Surrender benefits (7,030,501) (11,247,063) (1,217,410) (15,470,116) (3,863,605) Death benefits (578,191) (845,539) (104,240) (1,344,836) (299,845) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 78,143,554 99,503,413 4,519,644 141,994,411 18,269,530 --------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 23 STATEMENTS OF CHANGES IN NET ASSETS
INVESCO VI INVESCO VI INVESCO VI INVESCO VANK VI JANUS ASPEN CAP DEV, GLOBAL HLTH, INTL GRO, COMSTOCK, ENTERPRISE, YEAR ENDED DEC. 31, 2011 (CONTINUED) SER I SER II SER II SER II SERV OPERATIONS Investment income (loss) -- net $ (161,318) $ (208,660) $ 335,789 $ 1,159,900 $ (136,164) Net realized gain (loss) on sales of investments 242,097 153,227 1,482,624 (2,718,564) 218,090 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (2,312,308) 697,429 (10,148,003) (5,040,416) (427,497) ------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations (2,231,529) 641,996 (8,329,590) (6,599,080) (345,571) ------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 263,942 375,062 1,664,851 2,726,753 255,438 Net transfers(1) 4,648,001 2,157,506 (6,665,349) (19,503,052) (1,615,817) Transfers for policy loans 999 (6,326) 13,656 34,518 13,055 Adjustments to net assets allocated to contracts in payment period 18,723 (80) (7,411) 12,657 -- Contract charges (11,760) (18,711) (132,596) (616,234) (12,457) Contract terminations: Surrender benefits (3,063,512) (1,990,968) (10,559,862) (17,510,778) (2,521,938) Death benefits (158,945) (155,950) (649,851) (1,924,303) (70,470) ------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions 1,697,448 360,533 (16,336,562) (36,780,439) (3,952,189) ------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 17,619,733 22,250,600 121,171,446 257,009,567 18,424,832 ------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $17,085,652 $23,253,129 $ 96,505,294 $213,630,048 $14,127,072 ------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 9,736,767 20,785,101 90,302,409 214,858,132 25,641,936 Contract purchase payments 150,027 329,079 1,273,306 2,335,170 353,532 Net transfers(1) 2,312,818 1,932,580 (4,970,206) (16,282,695) (2,293,339) Transfers for policy loans 190 (5,268) 11,682 29,109 19,033 Contract charges (6,806) (16,500) (102,427) (509,668) (17,512) Contract terminations: Surrender benefits (1,689,838) (1,786,235) (7,809,045) (14,574,162) (3,466,681) Death benefits (87,645) (138,373) (493,107) (1,631,137) (97,526) ------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 10,415,513 21,100,384 78,212,612 184,224,749 20,139,443 ------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
JANUS ASPEN JANUS ASPEN JANUS ASPEN MFS MFS GLOBAL TECH, JANUS, OVERSEAS, INV GRO STOCK, NEW DIS, YEAR ENDED DEC. 31, 2011 (CONTINUED) SERV SERV SERV SERV CL SERV CL OPERATIONS Investment income (loss) -- net $ (183,494) $ (336,430) $ (613,788) $ (472,866) $ (555,885) Net realized gain (loss) on sales of investments 471,149 1,908,786 9,570,472 2,121,422 872,919 Distributions from capital gains -- -- 1,361,065 -- 8,256,051 Net change in unrealized appreciation or depreciation of investments (2,302,883) (6,032,184) (59,965,825) (1,774,771) (16,395,393) ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (2,015,228) (4,459,828) (49,648,076) (126,215) (7,822,308) ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 307,902 1,488,356 1,322,704 1,187,096 709,120 Net transfers(1) (2,088,680) (14,118,981) (21,921,723) (6,009,280) 6,805,395 Transfers for policy loans (4,079) (19,950) 15,877 3,566 6,434 Adjustments to net assets allocated to contracts in payment period (3,804) (1,680) 49,143 (10,699) (7,606) Contract charges (13,760) (160,361) (69,376) (54,851) (47,340) Contract terminations: Surrender benefits (3,324,659) (6,080,876) (18,420,092) (7,365,026) (6,307,647) Death benefits (172,959) (677,964) (620,533) (327,232) (350,453) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (5,300,039) (19,571,456) (39,644,000) (12,576,426) 807,903 ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 24,760,253 82,233,183 175,075,543 82,959,875 62,697,588 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $17,444,986 $ 58,201,899 $ 85,783,467 $ 70,257,234 $ 55,683,183 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 43,886,351 85,312,666 97,399,090 105,423,462 47,234,660 Contract purchase payments 556,565 1,550,251 834,808 1,336,278 525,047 Net transfers(1) (3,990,972) (15,119,360) (15,209,227) (7,909,417) 4,582,702 Transfers for policy loans (7,778) (19,322) 8,884 5,766 7,668 Contract charges (25,054) (168,909) (44,793) (67,761) (35,834) Contract terminations: Surrender benefits (5,986,587) (6,346,495) (11,642,276) (9,292,959) (4,733,507) Death benefits (314,154) (712,954) (396,430) (409,582) (268,794) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 34,118,371 64,495,877 70,950,056 89,085,787 47,311,942 -------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 25 STATEMENTS OF CHANGES IN NET ASSETS
MFS MS UIF MS UIF NB AMT OPPEN UTILITIES, GLOBAL REAL EST, MID CAP GRO, INTL, GLOBAL SEC VA, YEAR ENDED DEC. 31, 2011 (CONTINUED) SERV CL CL II CL II CL S SERV OPERATIONS Investment income (loss) -- net $ 4,983,716 $ 1,659,226 $ (416,392) $ 1,146,098 $ 163,302 Net realized gain (loss) on sales of investments 1,775,221 (913,941) 1,179,982 (374,706) (153,182) Distributions from capital gains -- -- 25,621 -- -- Net change in unrealized appreciation or depreciation of investments 6,180,189 (8,308,301) (6,049,699) (3,725,955) (9,678,483) -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 12,939,126 (7,563,016) (5,260,488) (2,954,563) (9,668,363) -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 6,782,722 1,240,236 2,409,481 390,112 4,053,570 Net transfers(1) 12,747,115 (2,235,158) 5,841,127 (11,449) (3,592,432) Transfers for policy loans (13,275) 13,699 (2,654) 6,666 (4,622) Adjustments to net assets allocated to contracts in payment period (12,141) 12,945 (11,172) (2,775) (13,365) Contract charges (167,934) (66,997) (43,059) (44,177) (70,342) Contract terminations: Surrender benefits (18,917,674) (6,235,511) (5,343,334) (1,686,559) (7,640,071) Death benefits (2,124,328) (458,365) (368,481) (196,113) (797,290) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,705,515) (7,729,151) 2,481,908 (1,544,295) (8,064,552) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 229,995,170 73,116,472 60,967,357 22,804,363 107,677,616 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $241,228,781 $57,824,305 $58,188,777 $18,305,505 $ 89,944,701 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 121,459,411 69,096,688 45,796,859 23,891,737 76,283,213 Contract purchase payments 3,867,628 1,185,054 1,735,530 404,310 3,096,065 Net transfers(1) 6,749,597 (2,445,854) 4,172,715 (140,317) (2,644,988) Transfers for policy loans (5,847) 14,239 (2,745) 7,842 (6,752) Contract charges (86,244) (64,560) (31,560) (46,525) (50,420) Contract terminations: Surrender benefits (9,203,371) (6,042,193) (3,931,939) (1,842,217) (5,351,755) Death benefits (1,101,347) (447,391) (275,574) (212,138) (623,259) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 121,679,827 61,295,983 47,463,286 22,062,692 70,702,104 --------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
OPPEN OPPEN GLOBAL STRATEGIC MAIN ST SM PIMCO VIT PUT VT ROYCE INC VA, MID CAP VA, ALL ASSET, MULTI-CAP GRO, MICRO-CAP, YEAR ENDED DEC. 31, 2011 (CONTINUED) SRV SERV ADVISOR CL CL IB INVEST CL OPERATIONS Investment income (loss) -- net $ 18,499,297 $ (345,904) $ 16,461,652 $ (173,651) $ 637,303 Net realized gain (loss) on sales of investments 10,178,219 1,061,944 (27,797) 775,407 4,163,075 Distributions from capital gains 11,696,484 -- -- -- -- Net change in unrealized appreciation or depreciation of investments (40,369,088) (2,786,302) (13,922,833) (2,204,844) (11,145,299) --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 4,912 (2,070,262) 2,511,022 (1,603,088) (6,344,921) --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 11,148,025 1,743,482 8,160,214 498,588 477,872 Net transfers(1) (58,457,272) (8,700,356) 18,044,185 (2,481,877) (5,028,125) Transfers for policy loans (22,226) 16,970 (49,031) 35,422 6,834 Adjustments to net assets allocated to contracts in payment period (177,406) (9,951) (31,322) (3,197) (17,128) Contract charges (856,703) (49,780) (256,664) (28,296) (18,584) Contract terminations: Surrender benefits (90,129,639) (5,898,842) (24,200,990) (3,839,580) (10,695,979) Death benefits (9,949,275) (516,928) (2,279,735) (239,807) (599,593) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (148,444,496) (13,415,405) (613,343) (6,058,747) (15,874,703) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 985,347,754 76,560,275 244,030,878 33,345,807 62,060,455 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 836,908,170 $ 61,074,608 $245,928,557 $25,683,972 $ 39,840,831 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 706,223,975 58,249,701 192,370,650 29,434,323 15,792,239 Contract purchase payments 7,987,509 1,390,505 6,422,214 442,707 125,794 Net transfers(1) (41,369,104) (6,464,866) 14,126,001 (2,196,616) (1,356,475) Transfers for policy loans (16,904) 12,923 (39,056) 33,510 2,318 Contract charges (605,106) (37,971) (198,282) (25,249) (4,924) Contract terminations: Surrender benefits (63,244,312) (4,416,295) (18,866,635) (3,396,714) (2,789,036) Death benefits (7,100,088) (415,524) (1,782,774) (215,183) (153,977) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 601,875,970 48,318,473 192,032,118 24,076,778 11,615,939 ---------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 27 STATEMENTS OF CHANGES IN NET ASSETS
VP VP VP VP THIRD AGGR, AGGR, CONSERV, CONSERV, YEAR ENDED DEC. 31, 2011 (CONTINUED) AVE VAL CL 2 CL 4 CL 2 CL 4 OPERATIONS Investment income (loss) -- net $ 346,417 $ (4,488,953) $ (16,139,816) $ (3,761,505) $ (13,513,950) Net realized gain (loss) on sales of investments (2,955,771) (71,100) 36,792,625 1,502,990 22,388,357 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (6,801,055) (27,216,458) (85,403,261) 8,542,996 22,529,730 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (9,410,409) (31,776,511) (64,750,452) 6,284,481 31,404,137 ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 419,138 390,801,189 30,615,117 183,173,769 14,301,225 Net transfers(1) (5,654,222) 101,125,629 (89,002,429) 287,199,532 320,774,032 Transfers for policy loans 23,463 (145,600) 11,123 (130,889) (43,473) Adjustments to net assets allocated to contracts in payment period (26,983) 219,494 (99,897) (62,635) (3,469,457) Contract charges (17,757) (1,788,309) (9,981,618) (1,768,474) (7,492,545) Contract terminations: Surrender benefits (8,593,852) (5,319,789) (81,782,353) (19,069,845) (126,135,297) Death benefits (345,253) (2,005,122) (9,566,639) (5,400,800) (23,221,782) ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (14,195,466) 482,887,492 (159,806,696) 443,940,658 174,712,703 ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 53,357,570 208,702,302 1,821,118,319 184,093,835 1,409,945,636 ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 29,751,695 $659,813,283 $1,596,561,171 $634,318,974 $1,616,062,476 ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 18,734,516 186,003,988 1,623,317,828 176,204,428 1,349,528,344 Contract purchase payments 158,674 347,255,380 27,149,757 172,926,089 13,487,690 Net transfers(1) (2,170,015) 87,663,870 (81,339,985) 269,630,807 297,658,127 Transfers for policy loans 9,482 (134,470) 14,446 (122,697) (41,505) Contract charges (6,718) (1,667,685) (8,934,063) (1,672,281) (7,072,221) Contract terminations: Surrender benefits (3,226,168) (4,848,468) (72,558,968) (17,998,049) (118,980,129) Death benefits (127,316) (1,823,883) (8,385,369) (5,070,923) (21,943,200) ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 13,372,455 612,448,732 1,479,263,646 593,897,374 1,512,637,106 ----------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
VP DAVIS VP GS VP VP VP NY VENTURE, MID CAP VAL, MOD, MOD, MOD AGGR, YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 3 CL 3 CL 2 CL 4 CL 2 OPERATIONS Investment income (loss) -- net $ (487,057) $ (126,315) $ (30,692,100) $ (105,753,467) $ (18,853,259) Net realized gain (loss) on sales of investments 2,229,951 189,724 2,721,276 133,484,565 1,227,058 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (4,084,293) (1,130,547) (28,156,897) (85,113,845) (65,055,187) ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (2,341,399) (1,067,138) (56,127,721) (57,382,747) (82,681,388) ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 647,526 368,746 2,265,560,632 118,303,025 1,548,819,538 Net transfers(1) (8,673,104) 556,095 574,158,723 (214,839,503) 236,668,553 Transfers for policy loans 13,029 (2,521) (188,465) 182,489 (126,863) Adjustments to net assets allocated to contracts in payment period (22,045) (20,260) (514,658) (8,199,808) 2,036,054 Contract charges (161,438) (13,374) (14,448,350) (62,555,188) (8,670,726) Contract terminations: Surrender benefits (4,455,225) (932,191) (61,028,426) (679,542,651) (28,268,292) Death benefits (613,612) (191,329) (16,512,317) (83,940,910) (5,003,145) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (13,264,869) (234,834) 2,747,027,139 (930,592,546) 1,745,455,119 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 62,573,958 14,315,039 1,732,993,126 11,557,839,474 991,528,000 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 46,967,690 $13,013,067 $4,423,892,544 $10,569,864,181 $2,654,301,731 ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 63,233,786 10,675,740 1,584,363,240 10,566,948,821 891,746,819 Contract purchase payments 654,734 292,993 2,058,155,344 107,009,564 1,386,314,947 Net transfers(1) (8,981,632) 432,431 514,546,341 (206,483,405) 203,354,695 Transfers for policy loans 13,413 (2,467) (171,610) 168,292 (117,006) Contract charges (164,835) (10,127) (13,387,930) (56,793,587) (8,002,769) Contract terminations: Surrender benefits (4,565,399) (707,055) (55,464,722) (615,745,361) (25,407,554) Death benefits (625,121) (137,383) (15,112,928) (76,237,353) (4,495,349) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 49,564,946 10,544,132 4,072,927,735 9,718,866,971 2,443,393,783 -----------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 29 STATEMENTS OF CHANGES IN NET ASSETS
VP VP VP VP PTNRS MOD AGGR, MOD CONSERV, MOD CONSERV, SM CAP VAL, WANGER YEAR ENDED DEC. 31, 2011 (CONTINUED) CL 4 CL 2 CL 4 CL 3 INTL OPERATIONS Investment income (loss) -- net $ (64,412,082) $ (8,868,256) $ (31,026,461) $ (1,494,022) $ 15,834,515 Net realized gain (loss) on sales of investments 110,367,314 2,060,489 40,621,726 6,102,542 (12,389,211) Distributions from capital gains -- -- -- -- 9,992,764 Net change in unrealized appreciation or depreciation of investments (205,202,717) 9,434,660 27,264,700 (13,816,553) (75,765,979) ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (159,247,485) 2,626,893 36,859,965 (9,208,033) (62,327,911) ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 98,046,130 514,770,554 30,280,076 1,995,557 5,682,272 Net transfers(1) (385,470,691) 351,219,659 195,891,612 (23,106,147) (37,794,420) Transfers for policy loans (38,416) (45,837) 68,615 21,943 (6,633) Adjustments to net assets allocated to contracts in payment period (3,418,139) (650,782) (5,584,876) (53,135) (102,555) Contract charges (39,108,384) (3,956,617) (16,132,105) (376,134) (438,215) Contract terminations: Surrender benefits (328,142,496) (28,111,434) (202,011,291) (13,532,325) (36,708,123) Death benefits (26,333,360) (7,446,037) (41,111,215) (1,659,575) (2,835,207) ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (684,465,356) 825,779,506 (38,599,184) (36,709,816) (72,202,881) ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 7,156,739,337 520,096,345 3,332,019,792 197,265,671 458,488,585 ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $6,313,026,496 $1,348,502,744 $3,330,280,573 $151,347,822 $323,957,793 ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 6,431,039,211 486,156,330 3,111,864,848 106,424,676 199,413,566 Contract purchase payments 87,557,150 476,807,391 27,951,906 1,201,319 2,902,557 Net transfers(1) (364,663,629) 322,877,872 179,316,331 (12,788,388) (17,107,732) Transfers for policy loans (36,804) (42,594) 64,569 9,006 6,588 Contract charges (35,020,652) (3,694,252) (14,900,292) (215,038) (201,279) Contract terminations: Surrender benefits (292,883,789) (25,710,045) (186,498,298) (7,300,732) (15,806,567) Death benefits (23,718,436) (6,869,239) (37,917,013) (952,953) (1,307,910) ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 5,802,273,051 1,249,525,463 3,079,882,051 86,377,890 167,899,223 ----------------------------------------------------------------------------------------------------------------------------
(1)Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life's fixed account. See accompanying notes to financial statements. -------------------------------------------------------------------------------- 30 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
WF ADV VT INDEX WF ADV WF ADV WANGER ASSET ALLOC, VT INTL EQ, VT SM CAP GRO, YEAR ENDED DEC. 31, 2011 (CONTINUED) USA CL 2 CL 2 CL 2 OPERATIONS Investment income (loss) -- net $ (3,579,648) $ 695,295 $ (518,520) $ (775,985) Net realized gain (loss) on sales of investments 7,422,440 (222,834) 2,396,920 2,102,923 Distributions from capital gains 37,345,076 -- 2,903,463 -- Net change in unrealized appreciation or depreciation of investments (55,601,899) 1,306,560 (13,726,538) (6,401,488) ------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations (14,414,031) 1,779,021 (8,944,675) (5,074,550) ------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 5,692,849 440,095 1,008,594 2,904,320 Net transfers(1) (43,140,767) (3,368,680) (6,196,601) (18,022,798) Transfers for policy loans 34,694 27,112 2,014 1,868 Adjustments to net assets allocated to contracts in payment period (145,445) (11,512) (15,734) (7,979) Contract charges (405,171) (28,323) (96,109) (54,390) Contract terminations: Surrender benefits (36,961,636) (3,959,568) (6,457,878) (7,298,040) Death benefits (2,884,094) (516,580) (644,687) (531,721) ------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (77,809,570) (7,417,456) (12,400,401) (23,008,740) ------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 441,908,083 36,092,798 74,526,363 100,081,392 ------------------------------------------------------------------------------------------------------------------ Net assets at end of year $349,684,482 $30,454,363 $ 53,181,287 $ 71,998,102 ------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 240,629,120 29,126,578 57,744,964 68,151,085 Contract purchase payments 3,378,713 350,920 866,755 2,012,323 Net transfers(1) (22,333,408) (2,678,683) (4,859,345) (12,804,108) Transfers for policy loans 16,615 21,410 1,826 2,336 Contract charges (220,324) (22,452) (84,498) (38,196) Contract terminations: Surrender benefits (19,348,224) (3,143,031) (4,999,219) (5,068,671) Death benefits (1,628,943) (409,118) (542,421) (365,741) ------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 200,493,549 23,245,624 48,128,062 51,889,028 ------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 31 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 I CL II OPERATIONS Investment income (loss) -- net $ 197,994 $ (1,008,823) $ 6,867,987 $ 406,211 $ 420,930 Net realized gain (loss) on sales of investments 252,172 (9,434,165) (87,659,183) (1,220,712) 797,337 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 2,119,815 23,189,233 60,930,817 3,447,010 9,495,889 ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 2,569,981 12,746,245 (19,860,379) 2,632,509 10,714,156 ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 508,421 2,352,036 16,573,408 303,075 8,617,116 Net transfers(1) (2,006,155) (16,661,733) (238,195,599) (3,663,090) (172,589,015) Transfers for policy loans (3,778) 42,940 101,488 16,637 (4,652) Adjustments to net assets allocated to contracts in payment period (30,468) (21,568) (129,298) 3,471 (11,589) Contract charges (14,707) (98,797) (853,810) (10,706) (406,743) Contract terminations: Surrender benefits (1,223,076) (8,576,912) (31,446,228) (3,952,876) (5,036,214) Death benefits (51,893) (1,169,596) (4,156,360) (201,791) (598,446) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (2,821,656) (24,133,630) (258,106,399) (7,505,280) (170,029,543) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 17,971,619 127,984,486 647,669,201 28,827,243 203,460,054 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $17,719,944 $116,597,101 $ 369,702,423 $23,954,472 $ 44,144,667 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 16,688,585 135,762,252 524,099,669 26,333,451 204,863,181 Contract purchase payments 469,865 2,517,443 17,953,978 273,205 7,822,976 Net transfers(1) (1,980,965) (17,393,422) (262,054,685) (3,427,267) (167,208,843) Transfers for policy loans (3,661) 42,531 82,595 14,236 (4,472) Contract charges (13,616) (103,245) (767,825) (9,799) (390,525) Contract terminations: Surrender benefits (1,106,037) (8,807,747) (22,918,389) (3,544,300) (5,123,603) Death benefits (46,133) (1,243,002) (3,219,829) (184,157) (575,794) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 14,008,038 110,774,810 253,175,514 19,455,369 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. -------------------------------------------------------------------------------- 32 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
AC VP AC VP CALVERT VP COL VP COL VP ULTRA, VAL, SRI BAL, CASH MGMT, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL II CL I BAL CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (137,111) $ 839,153 $ 139,692 $ (2,441,168) $ (4,722,075) Net realized gain (loss) on sales of investments (716,752) (4,435,736) (531,081) (5,085,805) 138,562 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 4,628,198 10,778,322 3,203,682 33,411,227 (138,562) ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 3,774,335 7,181,739 2,812,293 25,884,254 (4,722,075) ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 535,190 835,121 614,397 3,877,166 52,824,512 Net transfers(1) (16,783) (6,800,508) (1,958,419) (21,786,691) (140,400,885) Transfers for policy loans 3,280 28,673 2,141 196,450 513,820 Adjustments to net assets allocated to contracts in payment period (368) 67,084 (8,149) (495,113) (921,627) Contract charges (27,835) (26,116) (25,154) (216,641) (397,777) Contract terminations: Surrender benefits (2,045,865) (10,129,522) (1,968,783) (25,479,905) (122,905,777) Death benefits (305,282) (721,302) (188,683) (4,086,392) (11,265,911) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,857,663) (16,746,570) (3,532,650) (47,991,126) (222,553,645) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 26,369,905 71,320,714 27,571,546 264,040,866 644,738,245 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $28,286,577 $ 61,755,883 $26,851,189 $241,933,994 $ 417,462,525 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 28,447,676 47,183,790 28,365,851 221,592,312 554,428,142 Contract purchase payments 560,370 539,716 603,184 3,266,575 48,538,439 Net transfers(1) 50,844 (4,475,816) (1,979,578) (19,860,531) (126,357,609) Transfers for policy loans 3,648 18,354 1,881 141,111 437,927 Contract charges (29,574) (16,969) (25,001) (175,871) (342,914) Contract terminations: Surrender benefits (2,161,667) (6,549,902) (1,938,614) (19,591,011) (105,324,156) Death benefits (321,485) (470,107) (189,406) (3,368,730) (9,866,781) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 26,549,812 36,229,066 24,838,317 182,003,855 361,513,048 -------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 33 STATEMENTS OF CHANGES IN NET ASSETS
COL VP COL VP COL VP COL VP COL VP DIV BOND, DIV EQ INC, DYN EQ, EMER MKTS OPP, GLOBAL BOND, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ 47,104,232 $ (15,073,879) $ (4,121,591) $ 2,714,828 $ 20,075,004 Net realized gain (loss) on sales of investments 247,666,173 (216,916,716) (27,580,475) 17,864,905 20,651,073 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (90,148,394) 334,606,719 95,299,948 24,788,289 (39,422,100) ------------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 204,622,011 102,616,124 63,597,882 45,368,022 1,303,977 ------------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 155,781,344 92,051,221 7,650,561 22,035,548 52,315,891 Net transfers(1) (3,152,563,948) (1,782,832,501) (34,320,107) (259,458,371) (1,002,429,736) Transfers for policy loans 72,638 257,791 670,981 140,676 (14,861) Adjustments to net assets allocated to contracts in payment period (2,147,284) (1,127,449) (826,577) (202,785) (696,838) Contract charges (7,273,101) (4,317,914) (937,445) (996,325) (2,448,961) Contract terminations: Surrender benefits (164,376,776) (112,200,136) (46,301,770) (38,825,134) (57,012,085) Death benefits (30,654,459) (16,749,166) (5,558,620) (3,222,646) (9,541,612) ------------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (3,201,161,586) (1,824,918,154) (79,622,977) (280,529,037) (1,019,828,202) ------------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 4,158,300,208 2,726,249,812 452,226,794 657,160,553 1,428,993,482 ------------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 1,161,760,633 $ 1,003,947,782 $436,201,699 $ 421,999,538 $ 410,469,257 ------------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 3,271,423,264 2,438,725,671 566,618,462 361,472,294 1,026,842,051 Contract purchase payments 130,465,162 94,250,284 9,072,675 13,947,795 41,899,625 Net transfers(1) (2,485,027,798) (1,779,312,553) (44,893,588) (174,793,940) (776,324,762) Transfers for policy loans 36,456 176,252 731,110 70,205 (12,432) Contract charges (5,732,639) (4,016,750) (1,190,210) (559,285) (1,814,226) Contract terminations: Surrender benefits (115,164,209) (84,193,146) (52,619,751) (18,974,167) (36,368,687) Death benefits (22,217,725) (13,489,265) (6,665,739) (1,710,951) (6,490,548) ------------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 773,782,511 652,140,493 471,052,959 179,451,951 247,731,021 -------------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
COL VP GLOBAL INFLATION COL VP COL VP COL VP COL VP PROT SEC, HI YIELD BOND, INC OPP, INTL OPP, LG CAP GRO, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (1,260,467) $ 41,700,948 $ 17,728,359 $ 621,265 $ (1,243,298) Net realized gain (loss) on sales of investments 21,180,011 3,220,107 164,666,843 (365,512) (7,605,381) Distributions from capital gains 572,150 -- -- -- -- Net change in unrealized appreciation or depreciation of investments 21,301,758 17,102,759 (130,417,313) 16,307,746 30,500,363 ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 41,793,452 62,023,814 51,977,889 16,563,499 21,651,684 ------------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 72,931,971 7,579,345 64,048,267 2,767,047 3,470,611 Net transfers(1) (1,558,037,035) (44,462,963) (1,415,397,331) (13,348,632) (15,018,400) Transfers for policy loans (5,675) 52,162 (18,210) 125,931 44,965 Adjustments to net assets allocated to contracts in payment period (728,876) (961,810) (426,450) (181,188) (208,833) Contract charges (3,596,140) (318,445) (3,019,074) (122,711) (167,249) Contract terminations: Surrender benefits (48,581,431) (53,474,152) (38,089,233) (18,232,397) (13,261,510) Death benefits (9,844,519) (6,647,730) (7,801,131) (1,844,725) (1,612,657) ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (1,547,861,705) (98,233,593) (1,400,703,162) (30,836,675) (26,753,073) ------------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 1,785,469,297 537,691,390 1,564,362,360 163,378,151 155,167,654 ------------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $ 279,401,044 $501,481,611 $ 215,637,087 $149,104,975 $150,066,265 ------------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,530,203,463 348,000,332 1,240,487,789 153,422,637 263,512,068 Contract purchase payments 62,545,772 5,207,480 50,732,854 2,590,403 5,277,961 Net transfers(1) (1,310,531,100) (27,822,516) (1,105,849,134) (13,698,528) (25,515,035) Transfers for policy loans (5,232) 31,704 (14,235) 107,202 70,292 Contract charges (3,054,873) (197,691) (2,344,188) (114,360) (274,323) Contract terminations: Surrender benefits (40,801,552) (32,355,483) (28,571,686) (16,241,672) (21,449,120) Death benefits (8,284,652) (4,065,140) (5,929,445) (1,838,052) (2,787,130) ------------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 230,071,826 288,798,686 148,511,955 124,227,630 218,834,713 ------------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 35 STATEMENTS OF CHANGES IN NET ASSETS
COL VP COL VP COL VP COL VP MID CAP MID CAP COL VP MARSICO GRO, MARSICO INTL OPP, GRO OPP, VAL OPP, S&P 500, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 1 CL 2 CL 3 CL 3 CL 3 OPERATIONS Investment income (loss) -- net $ (6,132,764) $ (162,849) $ (1,246,267) $ (1,393,644) $ (1,245,774) Net realized gain (loss) on sales of investments (33,947,676) (6,870,243) 2,471,307 (28,787,399) 242,110 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 67,774,916 15,115,506 27,934,463 52,666,036 19,357,208 ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets resulting from operations 27,694,476 8,082,414 29,159,503 22,484,993 18,353,544 ------------------------------------------------------------------------------------------------------------------------------ CONTRACT TRANSACTIONS Contract purchase payments 70,777,376 2,376,436 3,024,310 6,822,315 3,729,306 Net transfers(1) (1,529,787,605) (10,268,939) (5,478,948) (119,178,844) (11,167,535) Transfers for policy loans 9,951 (13,597) 84,608 29,279 (56,673) Adjustments to net assets allocated to contracts in payment period (25,824) (22,280) (91,426) (36,853) (92,396) Contract charges (3,316,519) (53,387) (127,522) (314,702) (114,853) Contract terminations: Surrender benefits (38,494,935) (4,793,446) (13,718,488) (8,658,180) (12,042,263) Death benefits (6,948,335) (424,717) (1,406,035) (1,307,954) (1,671,815) ------------------------------------------------------------------------------------------------------------------------------ Increase (decrease) from contract transactions (1,507,785,891) (13,199,930) (17,713,501) (122,644,939) (21,416,229) ------------------------------------------------------------------------------------------------------------------------------ Net assets at beginning of year 1,713,729,732 78,881,552 128,718,912 220,335,702 151,756,150 ------------------------------------------------------------------------------------------------------------------------------ Net assets at end of year $ 233,638,317 $ 73,764,036 $140,164,914 $ 120,175,756 $148,693,465 ------------------------------------------------------------------------------------------------------------------------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,831,326,765 85,819,490 114,747,012 218,176,420 181,918,465 Contract purchase payments 72,584,708 2,517,797 2,609,402 6,969,598 4,144,430 Net transfers(1) (1,641,121,539) (11,548,280) (4,210,880) (121,260,712) (13,346,913) Transfers for policy loans 11,219 (15,476) 84,594 26,121 (63,295) Contract charges (3,439,390) (58,971) (108,541) (304,658) (134,390) Contract terminations: Surrender benefits (40,419,852) (5,270,866) (11,874,336) (7,799,622) (14,115,420) Death benefits (7,282,538) (454,579) (1,199,339) (1,220,831) (1,948,741) ------------------------------------------------------------------------------------------------------------------------------ Units outstanding at end of year 211,659,373 70,989,115 100,047,912 94,586,316 156,454,136 ------------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
COL VP COL VP SELECT LG SELECT SM COL VP CS EV VT CAP VAL, CAP VAL, SHORT DURATION, COMMODITY FLOATING-RATE YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 3 RETURN INC OPERATIONS Investment income (loss) -- net $ (162,472) $ (511,051) $ 369,677 $ 5,190,875 $ 15,778,431 Net realized gain (loss) on sales of investments (111,053) (1,998,889) 695,882 (4,888,974) 25,932,186 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 3,920,379 16,499,613 6,112,773 13,066,888 3,879,008 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 3,646,854 13,989,673 7,178,332 13,368,789 45,589,625 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 371,139 1,305,083 13,997,344 2,991,874 40,083,802 Net transfers(1) 9,895,575 (1,843,250) (6,117,815) 3,322,111 (683,380,830) Transfers for policy loans 6,244 25,359 29,793 11,271 (9,221) Adjustments to net assets allocated to contracts in payment period (5,030) (4,089) (495,712) 144,276 38,154 Contract charges (15,333) (51,082) (220,581) (56,544) (1,647,281) Contract terminations: Surrender benefits (1,506,946) (5,487,859) (34,272,456) (7,271,496) (31,381,643) Death benefits (103,255) (512,029) (4,701,380) (574,007) (5,812,826) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 8,642,394 (6,567,867) (31,780,807) (1,432,515) (682,109,845) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 13,058,159 59,042,887 345,898,636 89,247,216 884,458,994 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $25,347,407 $66,464,693 $321,296,161 $101,183,490 $ 247,938,774 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 13,446,905 43,222,203 275,348,728 100,552,858 828,277,758 Contract purchase payments 369,419 1,079,416 12,373,935 3,437,900 36,533,672 Net transfers(1) 9,581,519 (951,431) (5,646,708) 3,426,536 (615,667,345) Transfers for policy loans 5,858 17,629 15,179 13,656 (8,234) Contract charges (14,846) (35,368) (173,646) (65,503) (1,495,862) Contract terminations: Surrender benefits (1,424,318) (3,682,279) (26,703,859) (8,363,848) (28,220,639) Death benefits (102,857) (366,640) (3,679,398) (651,790) (5,244,300) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 21,861,680 39,283,530 251,534,231 98,349,809 214,175,050 --------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 37 STATEMENTS OF CHANGES IN NET ASSETS
FID VIP FID VIP FID VIP FID VIP FTVIPT FRANK CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, GLOBAL REAL EST, YEAR ENDED DEC. 31, 2010 (CONTINUED) SERV CL 2 SERV CL SERV CL SERV CL CL 2 OPERATIONS Investment income (loss) -- net $ (441,838) $ (209,762) $ (1,171,604) $ 127,174 $ 3,328,499 Net realized gain (loss) on sales of investments (93,194,365) (5,506,404) 10,546,288 (2,661,804) (24,906,552) Distributions from capital gains 216,856 -- 629,511 64,578 -- Net change in unrealized appreciation or depreciation of investments 159,742,494 14,965,116 36,375,225 6,193,586 51,790,396 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 66,323,147 9,248,950 46,379,420 3,723,534 30,212,343 ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 29,567,663 920,982 2,118,764 463,476 3,954,790 Net transfers(1) (333,429,101) (8,538,021) (32,028,484) (5,085,943) (17,455,595) Transfers for policy loans (14,129) (3,848) (29,423) 142 124,322 Adjustments to net assets allocated to contracts in payment period (19,633) (39,582) (18,649) (74,275) (11,125) Contract charges (1,012,050) (38,448) (87,413) (14,976) (143,021) Contract terminations: Surrender benefits (36,310,544) (11,829,576) (28,923,023) (5,847,957) (13,260,482) Death benefits (4,104,173) (1,000,283) (1,456,374) (324,042) (1,659,199) ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (345,321,967) (20,528,776) (60,424,602) (10,883,575) (28,450,310) ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 791,181,505 85,041,637 205,621,358 43,185,087 170,846,851 ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 512,182,685 $ 73,761,811 $191,576,176 $ 36,025,046 $172,608,884 ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 841,695,744 91,709,778 68,537,181 39,540,944 119,954,441 Contract purchase payments 30,079,981 973,381 645,377 431,686 3,418,411 Net transfers(1) (354,317,423) (9,119,904) (10,077,450) (4,811,948) (10,749,661) Transfers for policy loans (12,830) (7,246) (9,301) 394 78,396 Contract charges (1,042,059) (40,612) (26,775) (13,985) (94,998) Contract terminations: Surrender benefits (37,938,267) (12,513,988) (8,668,944) (5,403,153) (8,380,953) Death benefits (4,271,913) (1,061,705) (452,982) (305,966) (1,090,751) ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 474,193,233 69,939,704 49,947,106 29,437,972 103,134,885 ----------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
GS VIT FTVIPT FRANK GS VIT STRUCTD GS VIT INVESCO VI SM CAP VAL, MID CAP VAL, SM CAP EQ, STRUCTD U.S. EQ, CAP APPR, YEAR ENDED DEC. 31, 2010 (CONTINUED) CL 2 INST INST INST SER I OPERATIONS Investment income (loss) -- net $ (200,932) $ (633,518) $ (33,559) $ 923,998 $ (24,844) Net realized gain (loss) on sales of investments 153,545 (11,010,245) (400,942) (8,488,974) (3,230,846) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 43,612,692 79,373,700 3,055,459 26,062,459 6,104,889 ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 43,565,305 67,729,937 2,620,958 18,497,483 2,849,199 ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 4,349,364 3,694,490 140,386 2,839,441 362,360 Net transfers(1) (23,029,258) (39,657,748) (821,301) (18,635,572) (3,032,300) Transfers for policy loans 32,148 65,092 9,662 20,892 29,659 Adjustments to net assets allocated to contracts in payment period (31,296) 9,794 (2,875) (31,141) (6,218) Contract charges (122,104) (338,804) (5,703) (380,456) (15,537) Contract terminations: Surrender benefits (13,008,767) (27,601,482) (1,316,366) (13,282,281) (3,299,688) Death benefits (1,657,282) (2,433,341) (99,284) (1,721,817) (248,596) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (33,467,195) (66,261,999) (2,095,481) (31,190,934) (6,210,320) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 183,263,851 326,736,273 10,406,120 180,207,162 25,047,908 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $193,361,961 $328,204,211 $10,931,597 $167,513,711 $21,686,787 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 108,898,566 151,389,396 7,753,527 210,014,586 32,040,575 Contract purchase payments 3,308,232 1,660,158 95,536 3,231,517 455,937 Net transfers(1) (12,513,172) (17,210,223) (586,077) (21,172,134) (3,884,948) Transfers for policy loans 20,951 23,777 6,876 24,225 37,332 Contract charges (68,837) (148,648) (3,878) (435,235) (19,570) Contract terminations: Surrender benefits (6,939,862) (12,139,586) (888,257) (15,044,626) (4,127,252) Death benefits (877,596) (1,051,761) (68,689) (1,971,336) (315,596) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 91,828,282 122,523,113 6,309,038 174,646,997 24,186,478 -------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 39 STATEMENTS OF CHANGES IN NET ASSETS
INVESCO VI INVESCO VI INVESCO VI INVESCO VANK VI JANUS ASPEN CAP DEV, GLOBAL HLTH, INTL GRO, COMSTOCK, ENTERPRISE, YEAR ENDED DEC. 31, 2010 (CONTINUED) SER I SER II SER II SER II SERV OPERATIONS Investment income (loss) -- net $ (152,084) $ (205,084) $ (1,225,904) $ (2,832,395) $ (145,304) Net realized gain (loss) on sales of investments (250,160) (544,058) (70,577,501) (85,503,348) (477,502) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 3,246,608 1,545,624 29,377,162 116,005,067 4,480,673 ------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 2,844,364 796,482 (42,426,243) 27,669,324 3,857,867 ------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 223,038 752,634 31,005,338 23,164,023 296,199 Net transfers(1) (2,564,823) (805,391) (611,558,665) (446,652,905) (1,862,932) Transfers for policy loans 5,328 (3,802) (9,488) (12,914) 8,144 Adjustments to net assets allocated to contracts in payment period (3,695) (75) (2,537) (14,673) -- Contract charges (9,682) (19,353) (1,428,749) (1,536,958) (14,097) Contract terminations: Surrender benefits (2,551,154) (1,718,802) (19,238,892) (22,739,501) (2,147,512) Death benefits (217,364) (131,638) (3,140,248) (4,167,609) (24,446) ------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (5,118,352) (1,926,427) (604,373,241) (451,960,537) (3,744,644) ------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 19,893,721 23,380,545 767,970,930 681,300,780 18,311,609 ------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $17,619,733 $22,250,600 $ 121,171,446 $ 257,009,567 $18,424,832 ------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 12,958,770 22,760,403 668,343,819 700,428,383 31,733,951 Contract purchase payments 140,906 724,823 28,158,107 24,777,403 486,209 Net transfers(1) (1,639,478) (856,629) (586,037,604) (483,154,923) (3,077,980) Transfers for policy loans 2,797 (3,725) (9,513) (12,662) 13,471 Contract charges (6,112) (18,994) (1,261,809) (1,527,838) (23,157) Contract terminations: Surrender benefits (1,582,205) (1,692,350) (16,146,914) (21,594,106) (3,449,359) Death benefits (137,911) (128,427) (2,743,677) (4,058,125) (41,199) ------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 9,736,767 20,785,101 90,302,409 214,858,132 25,641,936 -------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
JANUS ASPEN JANUS ASPEN JANUS ASPEN MFS MFS GLOBAL TECH, JANUS, OVERSEAS, INV GRO STOCK, NEW DIS, YEAR ENDED DEC. 31, 2010 (CONTINUED) SERV SERV SERV SERV CL SERV CL OPERATIONS Investment income (loss) -- net $ (186,761) $ (5,472,589) $ (498,609) $ (466,580) $ (458,049) Net realized gain (loss) on sales of investments (332,660) (26,600,945) 7,125,258 169,457 365,755 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 5,316,370 20,048,186 28,762,482 8,672,651 16,692,409 -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 4,796,949 (12,025,348) 35,389,131 8,375,528 16,600,115 -------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 302,473 61,911,503 1,674,072 1,922,434 639,466 Net transfers(1) 198,841 (1,388,790,842) (5,134,845) (7,594,137) (2,421,528) Transfers for policy loans 19,476 11,008 (22,913) 24,218 23,657 Adjustments to net assets allocated to contracts in payment period (37,863) (1,637) 603 (12,207) 26,732 Contract charges (14,958) (2,969,576) (87,867) (61,672) (43,043) Contract terminations: Surrender benefits (2,232,387) (25,410,276) (16,064,368) (7,087,953) (4,263,646) Death benefits (96,542) (5,219,810) (1,139,295) (718,403) (228,874) -------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,860,960) (1,360,469,630) (20,774,613) (13,527,720) (6,267,236) -------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 21,824,264 1,454,728,161 160,461,025 88,112,067 52,364,709 -------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $24,760,253 $ 82,233,183 $175,075,543 $ 82,959,875 $62,697,588 -------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 47,873,432 1,711,480,734 110,780,865 125,304,930 53,216,621 Contract purchase payments 629,453 72,359,526 1,048,717 2,301,712 583,167 Net transfers(1) 191,937 (1,659,453,317) (3,538,549) (11,127,909) (2,450,449) Transfers for policy loans 40,579 11,498 (16,529) 38,228 20,494 Contract charges (30,987) (3,458,352) (55,310) (86,184) (39,939) Contract terminations: Surrender benefits (4,608,801) (29,496,429) (10,091,999) (9,969,037) (3,883,914) Death benefits (209,262) (6,130,994) (728,105) (1,038,278) (211,320) -------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 43,886,351 85,312,666 97,399,090 105,423,462 47,234,660 --------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 41 STATEMENTS OF CHANGES IN NET ASSETS
MFS MS UIF MS UIF NB AMT OPPEN UTILITIES, GLOBAL REAL EST, MID CAP GRO, INTL, GLOBAL SEC VA, YEAR ENDED DEC. 31, 2010 (CONTINUED) SERV CL CL II CL II CL S SERV OPERATIONS Investment income (loss) -- net $ 4,959,273 $ 12,214,607 $ (454,566) $ 1,211,678 $ 348,819 Net realized gain (loss) on sales of investments (3,411,212) (31,468,683) (809,663) (49,798,795) (1,970,323) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 24,053,603 26,653,423 15,501,356 36,056,941 15,393,418 --------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 25,601,664 7,399,347 14,237,127 (12,530,176) 13,771,914 --------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 5,997,976 10,666,204 1,561,535 13,566,701 3,983,774 Net transfers(1) (21,099,655) (199,733,158) 2,032,626 (280,651,447) (3,621,008) Transfers for policy loans 56,631 18,079 1,610 3,092 37,112 Adjustments to net assets allocated to contracts in payment period (16,704) 98,952 39,676 (2,558) (12,217) Contract charges (166,908) (486,089) (35,397) (635,254) (75,173) Contract terminations: Surrender benefits (15,206,551) (8,063,239) (3,602,225) (5,413,995) (7,194,480) Death benefits (2,114,685) (1,305,538) (384,676) (1,037,108) (1,027,974) --------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (32,549,896) (198,804,789) (386,851) (274,170,569) (7,909,966) --------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 236,943,402 264,521,914 47,117,081 309,505,108 101,815,668 --------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $229,995,170 $ 73,116,472 $60,967,357 $ 22,804,363 $107,677,616 --------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 139,628,365 299,590,214 46,533,070 379,110,356 82,308,513 Contract purchase payments 4,063,093 11,749,389 1,354,752 16,083,679 3,407,485 Net transfers(1) (12,442,535) (231,509,919) 1,472,668 (362,495,084) (3,023,729) Transfers for policy loans 32,653 19,644 1,544 3,639 27,707 Contract charges (99,444) (538,424) (31,615) (774,923) (59,804) Contract terminations: Surrender benefits (8,485,637) (8,784,942) (3,199,275) (6,758,462) (5,554,341) Death benefits (1,237,084) (1,429,274) (334,285) (1,277,468) (822,618) --------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 121,459,411 69,096,688 45,796,859 23,891,737 76,283,213 ---------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
OPPEN OPPEN GLOBAL STRATEGIC MAIN ST SM PIMCO VIT PUT VT ROYCE INC VA, MID CAP VA, ALL ASSET, MULTI-CAP GRO, MICRO-CAP, PERIOD ENDED DEC. 31, 2010 (CONTINUED) SRV SERV ADVISOR CL CL IB(2) INVEST CL OPERATIONS Investment income (loss) -- net $ 206,857,947 $ (338,531) $ 25,179,456 $ (73,165) $ 526,891 Net realized gain (loss) on sales of investments (28,398,829) (1,146,683) (25,464,357) 131,971 2,259,898 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 8,315,814 15,920,201 63,240,462 3,915,737 12,149,134 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 186,774,932 14,434,987 62,955,561 3,974,543 14,935,923 ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 93,709,200 2,154,231 54,499,432 145,887 550,125 Net transfers(1) (1,769,293,079) (8,020,654) (1,032,754,941) 30,465,480 (5,866,785) Transfers for policy loans 84,050 15,233 (56,196) 4,656 23,815 Adjustments to net assets allocated to contracts in payment period (122,240) (9,119) 463,073 58,881 9,047 Contract charges (4,247,709) (53,834) (2,329,161) (8,809) (21,644) Contract terminations: Surrender benefits (109,667,300) (4,934,990) (32,567,132) (1,203,267) (8,394,116) Death benefits (18,038,642) (548,819) (5,955,807) (91,564) (463,598) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,807,575,720) (11,397,952) (1,018,700,732) 29,371,264 (14,163,156) ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 2,606,148,542 73,523,240 1,199,776,049 -- 61,287,688 ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 985,347,754 $ 76,560,275 $ 244,030,878 $33,345,807 $ 62,060,455 ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 2,168,384,445 67,776,886 1,054,508,354 -- 20,125,077 Contract purchase payments 77,506,665 1,997,782 46,444,068 136,202 169,750 Net transfers(1) (1,437,995,631) (6,867,818) (874,047,668) 30,510,722 (1,820,764) Transfers for policy loans 65,136 13,429 (47,702) 4,544 7,393 Contract charges (3,437,237) (46,943) (1,991,500) (8,263) (6,721) Contract terminations: Surrender benefits (84,239,515) (4,136,684) (27,482,458) (1,123,934) (2,538,792) Death benefits (14,059,888) (486,951) (5,012,444) (84,948) (143,704) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 706,223,975 58,249,701 192,370,650 29,434,323 15,792,239 -----------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 43 STATEMENTS OF CHANGES IN NET ASSETS
VP VP VP VP THIRD AGGR, AGGR, CONSERV, CONSERV, PERIOD ENDED DEC. 31, 2010 (CONTINUED) AVE VAL CL 2(2) CL 4(2) CL 2(2) CL 4(2) OPERATIONS Investment income (loss) -- net $ 1,622,032 $ (473,599) $ (9,360,352) $ (575,375) $ (8,631,376) Net realized gain (loss) on sales of investments (3,828,773) 109,783 6,107,532 237,806 6,895,691 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 8,458,141 15,983,853 255,225,133 4,999,406 80,730,367 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 6,251,400 15,620,037 251,972,313 4,661,837 78,994,682 ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 757,635 148,930,242 24,073,001 118,278,678 14,899,237 Net transfers(1) (8,577,676) 44,667,837 1,593,345,660 65,621,819 1,402,459,508 Transfers for policy loans 31,449 12,878 (8,242) 4,471 (42,351) Adjustments to net assets allocated to contracts in payment period (29,711) 2,374 (59,262) (24,789) (2,778,537) Contract charges (22,731) (15,614) (5,992,587) (34,305) (4,410,305) Contract terminations: Surrender benefits (7,197,384) (515,452) (39,922,340) (4,114,301) (70,538,238) Death benefits (475,148) -- (2,290,224) (299,575) (8,638,360) ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (15,513,566) 193,082,265 1,569,146,006 179,431,998 1,330,950,954 ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 62,619,736 -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 53,357,570 $208,702,302 $1,821,118,319 $184,093,835 $1,409,945,636 ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 24,897,028 -- -- -- -- Contract purchase payments 299,142 142,913,365 23,688,625 115,700,626 14,732,602 Net transfers(1) (3,451,004) 43,583,589 1,646,541,101 64,827,897 1,416,847,020 Transfers for policy loans 12,489 12,507 (13,497) 4,158 (41,145) Contract charges (9,088) (15,059) (5,859,979) (33,551) (4,330,874) Contract terminations: Surrender benefits (2,825,952) (490,414) (38,848,199) (4,004,712) (69,244,963) Death benefits (188,099) -- (2,190,223) (289,990) (8,434,296) ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 18,734,516 186,003,988 1,623,317,828 176,204,428 1,349,528,344 ----------------------------------------------------------------------------------------------------------------------------
(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. -------------------------------------------------------------------------------- 44 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
VP DAVIS VP GS VP VP VP NY VENTURE, MID CAP VAL, MOD, MOD, MOD AGGR, PERIOD ENDED DEC. 31, 2010 (CONTINUED) CL 3 CL 3 CL 2(2) CL 4(2) CL 2(2) OPERATIONS Investment income (loss) -- net $ (5,959,595) $ (111,860) $ (4,458,274) $ (63,571,414) $ (2,438,058) Net realized gain (loss) on sales of investments 33,452,476 (215,119) 447,967 23,317,661 275,747 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (65,360,617) 2,831,843 94,899,394 1,192,820,220 67,979,145 ----------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations (37,867,736) 2,504,864 90,889,087 1,152,566,467 65,816,834 ----------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 65,308,756 383,210 1,282,267,148 118,832,595 733,351,874 Net transfers(1) (1,449,781,491) (378,263) 371,556,132 10,729,013,689 196,176,339 Transfers for policy loans (15,725) (13,681) (219,438) 154,048 (151,804) Adjustments to net assets allocated to contracts in payment period (348,902) (1,693) (97,702) (4,289,698) 4,752 Contract charges (3,178,387) (12,802) (101,570) (38,048,690) (71,529) Contract terminations: Surrender benefits (25,254,664) (918,006) (10,986,861) (361,840,863) (3,169,495) Death benefits (5,206,547) (127,645) (313,670) (38,548,074) (428,971) ----------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (1,418,476,960) (1,068,880) 1,642,104,039 10,405,273,007 925,711,166 ----------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 1,518,918,654 12,879,055 -- -- -- ----------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 62,573,958 $14,315,039 $1,732,993,126 $11,557,839,474 $991,528,000 ----------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 1,684,962,624 11,505,750 -- -- -- Contract purchase payments 70,650,068 345,791 1,234,514,922 116,856,585 704,966,304 Net transfers(1) (1,655,433,687) (268,000) 360,920,021 10,872,230,136 190,348,839 Transfers for policy loans (17,980) (11,870) (212,076) 144,671 (142,515) Contract charges (3,453,674) (10,781) (96,982) (36,962,238) (68,616) Contract terminations: Surrender benefits (27,691,465) (773,677) (10,470,444) (348,263,929) (2,954,110) Death benefits (5,782,100) (111,473) (292,201) (37,056,404) (403,083) ----------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 63,233,786 10,675,740 1,584,363,240 10,566,948,821 891,746,819 -----------------------------------------------------------------------------------------------------------------------------
(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 VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 45 STATEMENTS OF CHANGES IN NET ASSETS
VP VP VP VP PTNRS MOD AGGR, MOD CONSERV, MOD CONSERV, SM CAP VAL, WANGER PERIOD ENDED DEC. 31, 2010 (CONTINUED) CL 4(2) CL 2(2) CL 4(2) CL 3 INTL OPERATIONS Investment income (loss) -- net $ (37,723,573) $ (1,462,630) $ (19,186,173) $ (5,113,382) $ 4,962,327 Net realized gain (loss) on sales of investments 16,278,452 204,404 10,273,872 35,574,881 6,742,337 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 875,782,997 21,991,353 265,643,577 61,980,852 62,797,496 ---------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 854,337,876 20,733,127 256,731,276 92,442,351 74,502,160 ---------------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 81,614,864 354,928,997 32,202,254 42,615,230 30,244,877 Net transfers(1) 6,427,712,067 149,190,866 3,185,976,031 (993,833,890) (493,576,175) Transfers for policy loans (164,046) (109,950) 96,251 17,475 63,410 Adjustments to net assets allocated to contracts in payment period (882,708) 4,757 (2,303,716) (337,851) 3,990 Contract charges (22,839,258) (53,694) (9,885,283) (2,353,330) (1,435,102) Contract terminations: Surrender benefits (170,650,827) (3,864,637) (111,030,052) (26,803,661) (39,928,258) Death benefits (12,388,631) (733,121) (19,766,969) (4,586,346) (4,487,853) ---------------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions 6,302,401,461 499,363,218 3,075,288,516 (985,282,373) (509,115,111) ---------------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year -- -- -- 1,090,105,693 893,101,536 ---------------------------------------------------------------------------------------------------------------------------- Net assets at end of year $7,156,739,337 $520,096,345 $3,332,019,792 $ 197,265,671 $ 458,488,585 ---------------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- -- -- 942,972,799 578,943,891 Contract purchase payments 80,058,980 344,622,516 31,719,434 40,000,053 23,853,121 Net transfers(1) 6,549,756,193 146,114,386 3,216,347,420 (852,575,011) (379,740,094) Transfers for policy loans (165,576) (106,446) 94,526 6,274 28,197 Contract charges (22,200,340) (51,755) (9,630,074) (1,917,581) (964,524) Contract terminations: Surrender benefits (164,561,495) (3,721,973) (107,648,550) (18,560,550) (20,123,920) Death benefits (11,848,551) (700,398) (19,017,908) (3,501,308) (2,583,105) ---------------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 6,431,039,211 486,156,330 3,111,864,848 106,424,676 199,413,566 ----------------------------------------------------------------------------------------------------------------------------
(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. -------------------------------------------------------------------------------- 46 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT STATEMENTS OF CHANGES IN NET ASSETS
WF ADV VT INDEX WF ADV WF ADV WANGER ASSET ALLOC, VT INTL EQ, VT SM CAP GRO, YEAR ENDED DEC. 31, 2010 (CONTINUED) USA CL 2 CL 2 CL 2 OPERATIONS Investment income (loss) -- net $ (4,767,576) $ 338,440 $ 2,600,409 $ (783,167) Net realized gain (loss) on sales of investments (3,736,335) (1,446,348) 40,045,958 (1,038,727) Distributions from capital gains -- -- 10,310,660 -- Net change in unrealized appreciation or depreciation of investments 99,405,079 5,321,932 (93,468,141) 22,371,647 ------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets resulting from operations 90,901,168 4,214,024 (40,511,114) 20,549,753 ------------------------------------------------------------------------------------------------------------------- CONTRACT TRANSACTIONS Contract purchase payments 22,095,766 475,588 32,648,150 3,397,304 Net transfers(1) (373,510,401) (5,140,771) (648,685,388) (1,098,100) Transfers for policy loans 25,307 25,586 22,893 13,701 Adjustments to net assets allocated to contracts in payment period (27,352) (10,662) 2,057 (318) Contract charges (1,095,318) (32,000) (1,480,749) (56,205) Contract terminations: Surrender benefits (37,815,524) (4,257,095) (16,601,414) (6,837,390) Death benefits (4,261,197) (505,848) (3,169,607) (527,357) ------------------------------------------------------------------------------------------------------------------- Increase (decrease) from contract transactions (394,588,719) (9,445,202) (637,264,058) (5,108,365) ------------------------------------------------------------------------------------------------------------------- Net assets at beginning of year 745,595,634 41,323,976 752,301,535 84,640,004 ------------------------------------------------------------------------------------------------------------------- Net assets at end of year $ 441,908,083 $36,092,798 $ 74,526,363 $100,081,392 ------------------------------------------------------------------------------------------------------------------- ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 573,989,599 37,522,349 775,672,419 72,340,593 Contract purchase payments 20,039,493 417,558 36,277,981 2,718,923 Net transfers(1) (325,388,207) (4,615,908) (734,009,329) (1,097,670) Transfers for policy loans 13,570 22,493 16,133 11,343 Contract charges (870,006) (28,383) (1,538,114) (44,723) Contract terminations: Surrender benefits (24,215,563) (3,742,283) (15,463,537) (5,360,936) Death benefits (2,939,766) (449,248) (3,210,589) (416,445) ------------------------------------------------------------------------------------------------------------------- Units outstanding at end of year 240,629,120 29,126,578 57,744,964 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. -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 47 NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION RiverSource Variable Account 10 (the Account) was established under Minnesota law as a segregated asset account of RiverSource Life Insurance Company (RiverSource Life). The Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended (the 1940 Act) and exists in accordance with the rules and regulations of the Insurance Division, Department of Commerce of the State of Minnesota. The Account is used as a funding vehicle for RiverSource Retirement Advisor Variable Annuity(R) - Band 3 (RAVA 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 RAVA Band 3 contracts and the corresponding division name are provided below. There are various other divisions offered in the Account that are not available under RAVA Band 3 contracts. Each division is comprised of subaccounts. Individual variable annuity accounts invest in subaccounts. These financial statements are of the Divisions of the Account offered through RAVA Band 3.
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 I American Century VP International, Class I 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 I American Century VP Value, Class I Calvert VP SRI Bal Calvert VP SRI Balanced Portfolio Col VP Bal, Cl 3 Columbia Variable Portfolio - Balanced Fund (Class 3) Col VP Cash Mgmt, Cl 3 Columbia Variable Portfolio - Cash Management Fund (Class 3) Col VP Div Bond, Cl 3 Columbia Variable Portfolio - Diversified Bond Fund (Class 3) Col VP Div Eq Inc, Cl 3 Columbia Variable Portfolio - Diversified Equity Income Fund (Class 3) Col VP Dyn Eq, Cl 3 Columbia Variable Portfolio - Dynamic Equity Fund (Class 3) Col VP Emer Mkts Opp, Cl 3 Columbia Variable Portfolio - Emerging Markets Opportunity Fund (Class 3) Col VP Global Bond, Cl 3 Columbia 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) Col VP Hi Yield Bond, Cl 3 Columbia Variable Portfolio - High Yield Bond Fund (Class 3) Col VP Inc Opp, Cl 3 Columbia Variable Portfolio - Income Opportunities Fund (Class 3) Col VP Intl Opp, Cl 3 Columbia Variable Portfolio - International Opportunity Fund (Class 3) Col VP Lg Cap Gro, Cl 3 Columbia Variable Portfolio - Large Cap Growth Fund (Class 3) Col VP Marsico Gro, Cl 1 Columbia Variable Portfolio - Marsico Growth Fund (Class 1) Col VP Marsico Intl Opp, Cl 2 Columbia Variable Portfolio - Marsico International Opportunities Fund (Class 2) Col VP Mid Cap Gro Opp, Cl 3 Columbia Variable Portfolio - Mid Cap Growth Opportunity Fund (Class 3) Col VP Mid Cap Val Opp, Cl 3 Columbia Variable Portfolio - Mid Cap Value Opportunity Fund (Class 3) Col VP S&P 500, Cl 3 Columbia Variable Portfolio - S&P 500 Index Fund (Class 3) Col VP Select Lg Cap Val, Cl 3 Columbia Variable Portfolio - Select Large-Cap Value Fund (Class 3) Col VP Select Sm Cap Val, Cl 3 Columbia Variable Portfolio - Select Smaller-Cap Value Fund (Class 3) Col VP Short Duration, Cl 3 Columbia Variable Portfolio - Short Duration U.S. Government Fund (Class 3) 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 Fidelity(R) VIP Growth & Income Portfolio Service Class Fid VIP Mid Cap, Serv Cl Fidelity(R) VIP Mid Cap Portfolio Service Class Fid VIP Overseas, Serv Cl Fidelity(R) VIP Overseas Portfolio Service Class 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 GS VIT Mid Cap Val, Inst Goldman Sachs VIT Mid Cap Value Fund - Institutional Shares GS VIT Structd Sm Cap Eq, Inst Goldman Sachs VIT Structured Small Cap Equity 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 I Invesco V.I. Capital Appreciation Fund, Series I Shares(1) Invesco VI Cap Dev, Ser I Invesco V.I. Capital Development 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 VanK VI Comstock, Ser II Invesco Van Kampen V.I. Comstock Fund, Series II Shares Janus Aspen Enterprise, Serv Janus Aspen Series Enterprise Portfolio: Service 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
-------------------------------------------------------------------------------- 48 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
DIVISION FUND ------------------------------------------------------------------------------------------------- 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 MS UIF Mid Cap Gro, Cl II Morgan Stanley 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 PIMCO VIT All Asset, Advisor Cl PIMCO VIT All Asset Portfolio, Advisor Share Class Put VT Multi-Cap Gro, Cl IB Putnam VT Multi-Cap Growth Fund - Class IB Shares(3) Royce Micro-Cap, Invest Cl Royce Capital Fund - Micro-Cap Portfolio, Investment Class Third Ave Val Third Avenue Value Portfolio 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 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 Sm Cap Gro, Cl 2 Wells Fargo Advantage VT Small Cap Growth Fund - Class 2 -------------------------------------------------------------------------------------------------
(1)Invesco V.I. Capital Appreciation Fund, Series I Shares is scheduled to be merged into Invesco Van Kampen V.I. Capital Growth Fund, Series I Shares on April 27, 2012. In addition, Invesco Van Kampen V.I. Capital Growth Fund, Series I Shares changed its name to Invesco Van Kampen V.I. American Franchise Fund, Series I Shares. (2)Invesco V.I. Capital Development Fund, Series I Shares is scheduled to be merged into Invesco Van Kampen V.I. Mid Cap Growth Fund, Series I Shares on April 27, 2012. (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 merged into Variable Portfolio - Aggressive Portfolio (Class 2) on April 29, 2011. (5)Disciplined Asset Allocation Portfolios - Conservative merged into Variable Portfolio - Conservative Portfolio (Class 2) on April 29, 2011. (6)Disciplined Asset Allocation Portfolios - Moderate merged into Variable Portfolio - Moderate Portfolio (Class 2) on April 29, 2011. (7)Disciplined Asset Allocation Portfolios - Moderately Aggressive merged into Variable Portfolio - Moderately Aggressive Portfolio (Class 2) on April 29, 2011. (8)Disciplined Asset Allocation Portfolios - Moderately Conservative 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 -------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 49 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 in the periods ended Dec. 31, 2011. 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 April 20, 2012. There were no events or transactions that occurred during the period that materially impacted the amounts or disclosures in the Account's financial statements. USE OF ESTIMATES The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. 3. VARIABLE ACCOUNT EXPENSES For RAVA Band 3 contracts, 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. The financial statements include other subaccounts that are not offered through RAVA Band 3 contracts. 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 this product and if selected, the related fees are deducted annually from the contract value on the contract anniversary. Additional information can be found in the product 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 -------------------------------------------------------------------------------- 50 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 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 Columbia Management Investment Advisers, LLC --------------------------------------------------------------------------------------------------------------------- Transfer Agency and Servicing Agreement Columbia Management Investment Services Corp. --------------------------------------------------------------------------------------------------------------------- Plan and Agreement of Distribution Pursuant to Rule 12b-1 Columbia Management Investment 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. 7. INVESTMENT TRANSACTIONS The divisions' purchases of Funds' shares, including reinvestment of dividend distributions, for the year ended Dec. 31, 2011 were as follows: ----
DIVISION PURCHASES ---------------------------------------------------------- AB VPS Global Thematic Gro, Cl B $ 2,781,889 AB VPS Gro & Inc, Cl B 6,671,304 AB VPS Intl Val, Cl B 17,226,593 AC VP Intl, Cl I 623,217 AC VP Mid Cap Val, Cl II 8,515,025 AC VP Ultra, Cl II 3,914,700 AC VP Val, Cl I 2,228,114 Calvert VP SRI Bal 1,359,638 Col VP Bal, Cl 3 7,738,867 Col VP Cash Mgmt, Cl 3 188,782,801 Col VP Div Bond, Cl 3 85,667,292 Col VP Div Eq Inc, Cl 3 8,496,644 Col VP Dyn Eq, Cl 3 3,098,351 Col VP Emer Mkts Opp, Cl 3 21,331,686 Col VP Global Bond, Cl 3 26,706,467 Col VP Global Inflation Prot Sec, Cl 3 46,685,221 Col VP Hi Yield Bond, Cl 3 51,747,173 Col VP Inc Opp, Cl 3 40,689,865 Col VP Intl Opp, Cl 3 5,817,545 Col VP Lg Cap Gro, Cl 3 3,991,694 Col VP Marsico Gro, Cl 1 8,497,311 Col VP Marsico Intl Opp, Cl 2 3,624,137 Col VP Mid Cap Gro Opp, Cl 3 5,553,537 Col VP Mid Cap Val Opp, Cl 3 2,641,273 Col VP S&P 500, Cl 3 8,954,543 Col VP Select Lg Cap Val, Cl 3 9,547,225 Col VP Select Sm Cap Val, Cl 3 3,243,177 Col VP Short Duration, Cl 3 38,571,645 CS Commodity Return 20,519,714 EV VT Floating-Rate Inc 61,267,068 Fid VIP Contrafund, Serv Cl 2 17,613,293 Fid VIP Gro & Inc, Serv Cl 1,460,224 Fid VIP Mid Cap, Serv Cl 550,391 Fid VIP Overseas, Serv Cl 491,387 FTVIPT Frank Global Real Est, Cl 2 17,402,931 FTVIPT Frank Sm Cap Val, Cl 2 6,430,393 GS VIT Mid Cap Val, Inst 3,770,871 GS VIT Structd Sm Cap Eq, Inst 428,250 GS VIT Structd U.S. Eq, Inst 4,766,207 Invesco VI Cap Appr, Ser I 315,870 Invesco VI Cap Dev, Ser I 7,060,627 Invesco VI Global Hlth, Ser II 5,687,016 Invesco VI Intl Gro, Ser II 7,081,593 Invesco VanK VI Comstock, Ser II 9,459,832 Janus Aspen Enterprise, Serv 205,139 Janus Aspen Global Tech, Serv 1,167,787 Janus Aspen Janus, Serv 3,857,127 Janus Aspen Overseas, Serv 3,036,211 MFS Inv Gro Stock, Serv Cl 4,310,683 MFS New Dis, Serv Cl 17,382,901 MFS Utilities, Serv Cl 29,571,644 MS UIF Global Real Est, Cl II 8,080,649 MS UIF Mid Cap Gro, Cl II 13,398,282 NB AMT Intl, Cl S 5,351,779 Oppen Global Sec VA, Serv 9,824,521 Oppen Global Strategic Inc VA, Srv 55,469,193 Oppen Main St Sm Mid Cap VA, Serv 2,976,480 PIMCO VIT All Asset, Advisor Cl 51,109,410 Put VT Multi-Cap Gro, Cl IB 299,046 Royce Micro-Cap, Invest Cl 1,257,081 Third Ave Val 886,288 VP Aggr, Cl 2 513,523,407 VP Aggr, Cl 4 93,085,697 VP Conserv, Cl 2 504,933,364 VP Conserv, Cl 4 491,857,668 VP Davis NY Venture, Cl 3 3,499,304 VP GS Mid Cap Val, Cl 3 3,010,593 VP Mod, Cl 2 2,813,881,169 VP Mod, Cl 4 147,500,035 VP Mod Aggr, Cl 2 1,820,285,669 VP Mod Aggr, Cl 4 207,829,325 VP Mod Conserv, Cl 2 879,524,185 VP Mod Conserv, Cl 4 356,169,277 VP Ptnrs Sm Cap Val, Cl 3 4,211,877 Wanger Intl 38,067,115 Wanger USA 42,200,504 WF Adv VT Index Asset Alloc, Cl 2 1,895,172 WF Adv VT Intl Eq, Cl 2 6,039,383 WF Adv VT Sm Cap Gro, Cl 2 4,812,415 ==========================================================
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 51 8. ACCUMULATION UNIT VALUES, UNITS OUTSTANDING AND NET ASSETS The following is a summary of accumulation unit values at Dec. 31, 2011:
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 I CL II -------------------------------------------------------------------- 0.55% $0.97 $1.14 $1.38 $1.11 $1.02 0.75% 0.96 1.12 1.35 1.08 1.01 0.85% 0.97 1.01 0.66 -- 1.25 0.95% 0.95 1.10 1.32 1.06 1.00 1.00% 0.95 1.19 1.37 -- 1.00 1.05% 0.96 1.00 0.66 -- 1.24 1.10% 0.96 0.99 0.65 -- 1.24 1.20% 0.93 1.17 1.35 -- 0.99 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 0.95 0.99 0.65 -- 1.23 1.30% 0.95 0.98 0.65 -- 1.22 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 0.94 0.97 0.64 -- 1.21 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------
AC VP AC VP CALVERT VP COL VP COL VP ULTRA, VAL, SRI BAL, CASH MGMT, SUBACCOUNT CL II CL I BAL CL 3 CL 3 -------------------------------------------------------------------- 0.55% $1.07 $1.76 $1.14 $1.24 $1.23 0.75% 1.06 1.72 1.12 1.21 1.20 0.85% 1.10 -- -- 1.10 1.05 0.95% 1.05 1.67 1.09 1.18 1.17 1.00% 1.04 -- 1.24 1.31 1.07 1.05% 1.09 -- -- 1.09 1.04 1.10% 1.09 -- -- 1.09 1.03 1.20% 1.03 -- 1.21 1.29 1.04 1.25% -- -- -- -- -- 1.25% -- -- -- 1.08 1.03 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- 1.79 1.28 1.25% 1.08 -- -- -- -- 1.30% 1.08 -- -- 1.08 1.02 1.35% -- -- -- 1.15 -- 1.40% -- -- -- 1.15 -- 1.45% 1.07 -- -- 1.07 1.02 1.55% -- -- -- 1.15 -- 1.60% -- -- -- 1.15 -- 1.65% -- -- -- 1.15 -- 1.70% -- -- -- 1.15 -- 1.75% -- -- -- 1.15 -- 1.80% -- -- -- 1.14 -- --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 52 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
COL VP COL VP COL VP COL VP EMER MKTS COL VP DIV BOND, DIV EQ INC, DYN EQ, OPP, GLOBAL BOND, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% $1.73 $1.62 $0.86 $2.16 $1.90 0.75% 1.69 1.59 0.84 2.08 1.85 0.85% 1.31 0.98 1.01 1.36 1.35 0.95% 1.64 1.55 0.82 2.03 1.81 1.00% 1.44 1.57 1.04 2.71 1.75 1.05% 1.30 0.97 1.00 1.34 1.33 1.10% 1.29 0.97 1.00 1.34 1.33 1.20% 1.41 1.53 1.11 2.65 1.72 1.25% -- 1.49 -- 1.67 -- 1.25% 1.28 0.96 0.99 1.33 1.32 1.25% -- -- -- -- -- 1.25% -- -- -- -- 1.93 1.25% 1.78 -- 1.31 -- -- 1.25% -- -- -- -- -- 1.30% 1.28 0.96 0.98 1.32 1.31 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 1.27 0.95 0.98 1.31 1.30 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------
COL VP GLOBAL COL VP INFLATION HI YIELD COL VP COL VP COL VP PROT SEC, BOND, INC OPP, INTL OPP, LG CAP GRO, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% $1.36 $1.91 $1.59 $0.95 $0.64 0.75% 1.34 1.87 1.57 0.92 0.63 0.85% 1.31 1.46 1.46 0.96 0.97 0.95% 1.32 1.82 1.55 0.90 0.61 1.00% 1.32 1.94 1.54 1.42 0.99 1.05% 1.30 1.44 1.44 0.95 0.96 1.10% 1.29 1.44 1.44 0.95 0.96 1.20% 1.30 1.90 1.52 1.39 0.97 1.25% -- -- -- -- -- 1.25% -- 1.43 -- 0.94 -- 1.25% -- -- -- -- -- 1.25% -- 2.02 -- -- -- 1.25% -- -- -- 1.21 -- 1.25% 1.28 -- 1.43 -- 0.95 1.30% 1.28 1.42 1.42 0.94 0.95 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 1.27 1.41 1.41 0.93 0.94 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 53
COL VP COL VP COL VP COL VP MARSICO INTL MID CAP MID CAP COL VP MARSICO GRO, OPP, GRO OPP, VAL OPP, S&P 500, SUBACCOUNT CL 1 CL 2 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% $1.06 $0.84 $1.34 $1.28 $0.95 0.75% 1.05 0.83 1.29 1.26 0.93 0.85% 1.12 0.94 1.11 1.00 1.06 0.95% 1.04 0.82 1.26 1.24 0.91 1.00% 1.04 0.82 1.30 1.23 1.20 1.05% 1.11 0.93 1.10 0.99 1.05 1.10% 1.10 0.92 1.09 0.99 1.05 1.20% 1.02 0.81 1.27 1.22 1.18 1.25% -- -- -- -- -- 1.25% -- -- 1.08 -- -- 1.25% -- -- 0.99 -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.09 0.91 -- 0.98 1.04 1.30% 1.09 0.91 1.08 0.98 1.04 1.35% -- 1.01 -- -- 1.18 1.40% -- 1.01 -- -- 1.18 1.45% 1.08 0.90 1.07 0.97 1.03 1.55% -- 1.00 -- -- 1.18 1.60% -- 1.00 -- -- 1.17 1.65% -- 1.00 -- -- 1.17 1.70% -- 1.00 -- -- 1.17 1.75% -- 1.00 -- -- 1.17 1.80% -- 1.00 -- -- 1.17 -----------------------------------------------------------------------------------------------------------
COL VP COL VP COL VP EV VT SELECT LG SELECT SM SHORT CS FLOATING- CAP VAL, CAP VAL, DURATION, COMMODITY RATE SUBACCOUNT CL 3 CL 3 CL 3 RETURN INC -------------------------------------------------------------------- 0.55% $1.18 $1.66 $1.41 $0.90 $1.20 0.75% 1.17 1.63 1.37 0.89 1.19 0.85% 1.00 1.00 1.12 0.92 1.18 0.95% 1.15 1.59 1.33 0.88 1.17 1.00% 1.14 1.52 1.16 0.87 1.17 1.05% 0.99 0.99 1.10 0.91 1.16 1.10% 0.99 0.99 1.10 0.91 1.16 1.20% 1.12 1.49 1.14 0.86 1.16 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 0.98 0.98 1.09 0.90 1.15 1.30% 0.98 0.98 1.09 0.90 1.15 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 0.97 0.97 1.08 0.89 1.14 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 54 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
FTVIPT FRANK FID VIP FID VIP FID VIP FID VIP GLOBAL REAL CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, EST, SUBACCOUNT SERV CL 2 SERV CL SERV CL SERV CL CL 2 -------------------------------------------------------------------- 0.55% $1.04 $1.10 $3.50 $1.03 $1.97 0.75% 1.03 1.07 3.41 1.01 1.93 0.85% 1.09 -- -- -- 0.72 0.95% 1.02 1.05 3.33 0.98 1.88 1.00% 1.02 -- -- -- 1.40 1.05% 1.08 -- -- -- 0.71 1.10% 1.07 -- -- -- 0.71 1.20% 1.00 -- -- -- 1.37 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.07 -- -- -- 0.70 1.30% 1.06 -- -- -- 0.70 1.35% 1.15 -- -- -- -- 1.40% 1.15 -- -- -- -- 1.45% 1.05 -- -- -- 0.69 1.55% 1.15 -- -- -- -- 1.60% 1.15 -- -- -- -- 1.65% 1.15 -- -- -- -- 1.70% 1.15 -- -- -- -- 1.75% 1.15 -- -- -- -- 1.80% 1.15 -- -- -- -- ------------------------------------------------------------------------------------------------------------------
GS VIT GS VIT FTVIPT FRANK GS VIT STRUCTD STRUCTD U.S. INVESCO VI SM CAP VAL, MID CAP VAL, SM CAP EQ, EQ, CAP APPR, SUBACCOUNT CL 2 INST INST INST SER I -------------------------------------------------------------------- 0.55% $2.52 $2.67 $1.79 $1.01 $0.84 0.75% 2.46 2.60 1.74 0.99 0.82 0.85% 1.09 -- -- 0.95 -- 0.95% 2.40 2.54 1.70 0.96 0.80 1.00% 1.82 1.87 -- 1.16 -- 1.05% 1.08 -- -- 0.94 -- 1.10% 1.08 -- -- 0.94 -- 1.20% 1.78 1.83 -- 1.14 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.07 -- -- 0.93 -- 1.30% 1.06 -- -- 0.93 -- 1.35% 1.24 -- -- -- -- 1.40% 1.24 -- -- -- -- 1.45% 1.06 -- -- 0.92 -- 1.55% 1.23 -- -- -- -- 1.60% 1.23 -- -- -- -- 1.65% 1.23 -- -- -- -- 1.70% 1.23 -- -- -- -- 1.75% 1.23 -- -- -- -- 1.80% 1.23 -- -- -- -- ------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 55
INVESCO VANK INVESCO VI INVESCO VI INVESCO VI VI JANUS ASPEN CAP DEV, GLOBAL HLTH, INTL GRO, COMSTOCK, ENTERPRISE, SUBACCOUNT SER I SER II SER II SER II SERV -------------------------------------------------------------------- 0.55% $1.72 $1.10 $1.30 $1.22 $0.72 0.75% 1.68 1.09 1.28 1.20 0.71 0.85% -- 1.15 1.14 0.99 -- 0.95% 1.64 1.07 1.27 1.18 0.69 1.00% 0.82 1.07 1.26 1.18 -- 1.05% -- 1.13 1.13 0.98 -- 1.10% -- 1.13 1.12 0.98 -- 1.20% 0.82 1.06 1.25 1.16 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- 1.12 1.11 0.97 -- 1.30% -- 1.12 1.11 0.97 -- 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% -- 1.11 1.10 0.96 -- 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------
MFS JANUS ASPEN JANUS ASPEN JANUS ASPEN INV GRO MFS GLOBAL TECH, JANUS, OVERSEAS, STOCK, NEW DIS, SUBACCOUNT SERV SERV SERV SERV CL SERV CL -------------------------------------------------------------------- 0.55% $0.51 $0.92 $1.23 $0.76 $1.20 0.75% 0.50 0.91 1.20 0.74 1.17 0.85% -- 0.90 -- 1.15 -- 0.95% 0.49 0.90 1.17 0.72 1.15 1.00% 1.25 0.90 2.06 1.14 1.36 1.05% -- 0.90 -- 1.14 -- 1.10% -- 0.89 -- 1.14 -- 1.20% 1.23 0.89 2.02 1.11 1.34 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- 0.89 -- 1.13 -- 1.30% -- 0.89 -- 1.13 -- 1.35% -- 1.09 -- -- -- 1.40% -- 1.09 -- -- -- 1.45% -- 0.88 -- 1.12 -- 1.55% -- 1.09 -- -- -- 1.60% -- 1.09 -- -- -- 1.65% -- 1.09 -- -- -- 1.70% -- 1.08 -- -- -- 1.75% -- 1.08 -- -- -- 1.80% -- 1.08 -- -- -- --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 56 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
MS UIF OPPEN MFS GLOBAL REAL MS UIF NB AMT GLOBAL SEC UTILITIES, EST, MID CAP GRO, INTL, VA, SUBACCOUNT SERV CL CL II CL II CL S SERV -------------------------------------------------------------------- 0.55% $2.23 $0.94 $1.21 $0.81 $1.39 0.75% 2.18 0.93 1.20 0.80 1.37 0.85% 1.52 0.98 1.31 0.90 1.04 0.95% 2.14 0.92 1.19 0.79 1.35 1.00% 2.67 0.92 1.18 0.79 1.34 1.05% 1.50 0.96 1.29 0.89 1.03 1.10% 1.49 0.96 1.29 0.88 1.03 1.20% 2.61 0.91 1.17 0.78 1.32 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.48 0.95 1.28 0.88 1.02 1.30% 1.48 0.95 1.27 0.87 1.02 1.35% 1.23 -- 1.15 -- 1.07 1.40% 1.23 -- 1.15 -- 1.07 1.45% 1.47 0.94 1.26 0.87 1.01 1.55% 1.23 -- 1.15 -- 1.07 1.60% 1.23 -- 1.15 -- 1.07 1.65% 1.23 -- 1.15 -- 1.07 1.70% 1.22 -- 1.15 -- 1.06 1.75% 1.22 -- 1.15 -- 1.06 1.80% 1.22 -- 1.15 -- 1.06 --------------------------------------------------------------------------------------------------------------------
OPPEN GLOBAL OPPEN PUT VT STRATEGIC MAIN ST SM PIMCO VIT MULTI-CAP ROYCE INC VA, MID CAP VA, ALL ASSET, GRO, MICRO-CAP, SUBACCOUNT SRV SERV ADVISOR CL CL IB INVEST CL -------------------------------------------------------------------- 0.55% $1.45 $1.41 $1.29 $1.07 $3.54 0.75% 1.43 1.38 1.28 1.07 3.45 0.85% 1.33 1.06 1.30 -- -- 0.95% 1.40 1.36 1.26 1.06 3.37 1.00% 1.40 1.36 1.26 1.06 -- 1.05% 1.31 1.05 1.29 -- -- 1.10% 1.31 1.05 1.29 -- -- 1.20% 1.38 1.33 1.25 1.06 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.30 1.04 1.28 -- -- 1.30% 1.29 1.04 1.27 -- -- 1.35% -- 1.18 1.07 -- -- 1.40% -- 1.18 1.07 -- -- 1.45% 1.28 1.03 1.26 -- -- 1.55% -- 1.18 1.06 -- -- 1.60% -- 1.17 1.06 -- -- 1.65% -- 1.17 1.06 -- -- 1.70% -- 1.17 1.06 -- -- 1.75% -- 1.17 1.06 -- -- 1.80% -- 1.17 1.06 -- -- --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 57
VP VP VP VP THIRD AGGR, AGGR, CONSERV, CONSERV, SUBACCOUNT AVE VAL CL 2 CL 4 CL 2 CL 4 -------------------------------------------------------------------- 0.55% $2.29 $1.08 $1.09 $1.08 $1.08 0.75% 2.24 1.08 1.08 1.07 1.07 0.85% -- 1.08 1.08 1.07 1.07 0.95% 2.18 1.08 1.08 1.07 1.07 1.00% -- 1.08 1.08 1.07 1.07 1.05% -- 1.07 1.08 1.07 1.07 1.10% -- 1.07 1.08 1.07 1.07 1.20% -- 1.07 1.07 1.06 1.06 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- 1.07 1.07 1.06 1.06 1.30% -- 1.07 1.07 1.06 1.06 1.35% -- 1.11 -- 1.07 -- 1.40% -- 1.11 -- 1.07 -- 1.45% -- 1.07 1.07 1.06 1.06 1.55% -- 1.11 -- 1.06 -- 1.60% -- 1.11 -- 1.06 -- 1.65% -- 1.11 -- 1.06 -- 1.70% -- 1.11 -- 1.06 -- 1.75% -- 1.11 -- 1.06 -- 1.80% -- 1.11 -- 1.06 -- --------------------------------------------------------------------------------------------------------------------
VP DAVIS VP GS VP VP VP NY VENTURE, MID CAP VAL, MOD, MOD, MOD AGGR, SUBACCOUNT CL 3 CL 3 CL 2 CL 4 CL 2 -------------------------------------------------------------------- 0.55% $0.96 $1.32 $1.09 $1.09 $1.09 0.75% 0.94 1.30 1.09 1.09 1.09 0.85% 0.97 1.11 1.09 1.09 1.09 0.95% 0.93 1.28 1.09 1.09 1.09 1.00% 0.93 1.27 1.09 1.09 1.08 1.05% 0.95 1.09 1.08 1.09 1.08 1.10% 0.95 1.09 1.08 1.08 1.08 1.20% 0.92 1.25 1.08 1.08 1.08 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 0.94 1.08 1.08 1.08 1.08 1.30% 0.94 1.08 1.08 1.08 1.08 1.35% -- -- 1.09 -- 1.10 1.40% -- -- 1.09 -- 1.10 1.45% 0.93 1.07 1.08 1.08 1.08 1.55% -- -- 1.09 -- 1.10 1.60% -- -- 1.09 -- 1.10 1.65% -- -- 1.09 -- 1.10 1.70% -- -- 1.09 -- 1.10 1.75% -- -- 1.09 -- 1.10 1.80% -- -- 1.09 -- 1.10 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 58 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
VP VP VP VP PTNRS MOD AGGR, MOD CONSERV, MOD CONSERV, SM CAP VAL, WANGER SUBACCOUNT CL 4 CL 2 CL 4 CL 3 INTL -------------------------------------------------------------------- 0.55% $1.09 $1.09 $1.09 $1.98 $2.27 0.75% 1.09 1.08 1.08 1.94 2.21 0.85% 1.09 1.08 1.08 1.14 1.20 0.95% 1.09 1.08 1.08 1.90 2.16 1.00% 1.09 1.08 1.08 1.79 2.60 1.05% 1.09 1.08 1.08 1.13 1.19 1.10% 1.08 1.08 1.08 1.12 1.19 1.20% 1.08 1.07 1.08 1.76 2.55 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.08 1.07 1.08 1.11 1.18 1.30% 1.08 1.07 1.07 1.11 1.17 1.35% -- 1.08 -- -- -- 1.40% -- 1.08 -- -- -- 1.45% 1.08 1.07 1.07 1.10 1.16 1.55% -- 1.08 -- -- -- 1.60% -- 1.08 -- -- -- 1.65% -- 1.08 -- -- -- 1.70% -- 1.08 -- -- -- 1.75% -- 1.07 -- -- -- 1.80% -- 1.07 -- -- -- -----------------------------------------------------------------------------------------------------------
WF ADV WF ADV VT INDEX WF ADV VT SM CAP WANGER ASSET ALLOC, VT INTL EQ, GRO, SUBACCOUNT USA CL 2 CL 2 CL 2 ------------------------------------------------------ 0.55% $2.01 $1.34 $1.23 $1.43 0.75% 1.96 1.31 1.21 1.40 0.85% 1.11 -- 0.88 1.35 0.95% 1.91 1.28 1.20 1.37 1.00% 1.70 1.35 1.19 1.58 1.05% 1.10 -- 0.87 1.34 1.10% 1.10 -- 0.87 1.33 1.20% 1.67 1.32 1.17 1.55 1.25% -- -- -- -- 1.25% -- -- -- -- 1.25% -- -- -- -- 1.25% -- -- -- -- 1.25% -- -- -- -- 1.25% 1.09 -- 0.86 1.32 1.30% 1.09 -- 0.86 1.32 1.35% -- -- -- 1.20 1.40% -- -- -- 1.20 1.45% 1.08 -- 0.85 1.31 1.55% -- -- -- 1.20 1.60% -- -- -- 1.20 1.65% -- -- -- 1.20 1.70% -- -- -- 1.20 1.75% -- -- -- 1.20 1.80% -- -- -- 1.19 ------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 59 The following is a summary of units outstanding at Dec. 31, 2011:
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 I CL II -------------------------------------------------------------------- 0.55% 60,469 314,196 981,728 4,187 100,610 0.75% 3,347,576 48,468,388 83,009,279 7,586,573 11,207,567 0.85% 2,364,912 5,813,811 25,453,060 -- 6,598,923 0.95% 1,641,743 28,839,526 49,798,868 6,878,126 7,354,701 1.00% 377,718 4,844,115 9,932,359 -- 1,093,148 1.05% 1,027,686 3,473,793 12,397,576 -- 3,927,079 1.10% 922,168 1,716,564 10,020,385 -- 2,223,538 1.20% 415,005 2,547,892 4,866,066 -- 582,030 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 47,875 277,346 1,157,838 -- 326,767 1.30% 292,775 430,904 4,688,315 -- 1,278,473 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 100,117 156,736 1,109,611 -- 370,309 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 10,598,044 96,883,271 203,415,085 14,468,886 35,063,145 --------------------------------------------------------------------------------------------------------------------
AC VP AC VP CALVERT VP COL VP COL VP ULTRA, VAL, SRI BAL, CASH MGMT, SUBACCOUNT CL II CL I BAL CL 3 CL 3 -------------------------------------------------------------------- 0.55% 98,172 249,213 6,158 580,146 514,479 0.75% 10,121,502 14,861,541 12,718,775 53,355,113 124,252,423 0.85% 3,488,373 -- -- 7,341,951 32,019,220 0.95% 5,321,912 12,699,222 6,505,002 39,535,203 82,184,876 1.00% 1,441,546 -- 1,429,964 5,114,833 10,406,872 1.05% 1,484,229 -- -- 5,062,550 22,516,243 1.10% 590,905 -- -- 2,997,591 10,905,854 1.20% 992,330 -- 648,870 3,744,475 5,730,304 1.25% -- -- -- -- -- 1.25% -- -- -- 953,048 4,600,793 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- 35,491,542 33,542,751 1.25% 95,914 -- -- -- -- 1.30% 336,551 -- -- 2,106,857 4,782,738 1.35% -- -- -- 68,656 -- 1.40% -- -- -- -- -- 1.45% 78,348 -- -- 546,783 4,106,146 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 24,049,782 27,809,976 21,308,769 156,898,748 335,562,699 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 60 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
COL VP COL VP COL VP COL VP EMER MKTS COL VP DIV BOND, DIV EQ INC, DYN EQ, OPP, GLOBAL BOND, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% 2,923,351 1,770,325 463,706 842,881 1,121,749 0.75% 232,228,840 206,687,690 186,290,718 46,641,149 73,158,065 0.85% 58,891,536 58,110,433 1,866,612 17,567,368 19,771,752 0.95% 174,737,528 126,112,961 100,737,244 27,454,676 56,664,189 1.00% 26,267,665 22,186,394 10,273,733 4,201,602 8,321,924 1.05% 41,410,268 27,856,139 1,581,636 9,013,322 15,816,919 1.10% 19,814,130 15,637,483 416,545 5,521,902 6,279,374 1.20% 20,158,706 11,111,206 3,979,772 1,939,736 5,792,107 1.25% -- 51,705,628 -- 31,272,578 -- 1.25% 3,034,472 2,479,859 208,916 685,530 1,327,154 1.25% -- -- -- -- -- 1.25% -- -- -- -- 13,207,307 1.25% 43,796,578 -- 91,926,648 -- -- 1.25% -- -- -- -- -- 1.30% 12,963,700 7,828,794 339,612 2,464,503 5,320,382 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 6,538,233 2,177,593 73,168 648,534 2,020,524 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 642,765,007 533,664,505 398,158,310 148,253,781 208,801,446 --------------------------------------------------------------------------------------------------------------------
COL VP GLOBAL COL VP INFLATION HI YIELD COL VP COL VP COL VP PROT SEC, BOND, INC OPP, INTL OPP, LG CAP GRO, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% 1,131,847 695,430 1,305,722 363,233 1,357,846 0.75% 82,434,522 91,966,846 49,398,193 32,942,422 104,493,597 0.85% 18,864,890 16,330,011 14,835,853 3,977,267 3,900,535 0.95% 54,821,414 73,575,856 34,819,342 21,875,278 60,543,913 1.00% 9,441,816 7,401,482 5,360,121 2,246,275 5,957,158 1.05% 12,794,995 11,121,145 10,394,186 2,967,624 2,469,678 1.10% 5,537,419 5,134,636 4,946,695 1,620,209 1,062,090 1.20% 7,559,874 6,355,223 4,517,879 1,090,023 2,708,603 1.25% -- -- -- -- -- 1.25% -- 821,966 -- 272,800 -- 1.25% -- -- -- -- -- 1.25% -- 23,616,496 -- -- -- 1.25% -- -- -- 33,208,042 -- 1.25% 1,099,280 -- 713,474 -- 249,906 1.30% 6,489,263 3,685,378 3,834,190 1,049,696 332,031 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 2,569,551 1,554,341 1,248,932 228,813 158,640 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 202,744,871 242,258,810 131,374,587 101,841,682 183,233,997 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 61
COL VP COL VP COL VP COL VP MARSICO INTL MID CAP MID CAP COL VP MARSICO GRO, OPP, GRO OPP, VAL OPP, S&P 500, SUBACCOUNT CL 1 CL 2 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% 767,044 509,018 124,296 466,964 127,303 0.75% 70,115,596 20,933,379 28,726,151 25,902,856 65,653,431 0.85% 26,127,157 8,040,580 3,410,765 14,876,257 6,656,924 0.95% 39,805,368 12,276,810 16,900,617 14,817,082 46,052,562 1.00% 7,118,785 2,621,645 1,366,414 2,718,530 5,018,383 1.05% 12,678,943 4,678,050 2,308,529 8,067,345 3,791,880 1.10% 7,920,332 3,378,908 1,539,590 3,743,522 2,395,525 1.20% 2,999,521 1,687,934 876,730 1,324,720 3,038,066 1.25% -- -- -- -- -- 1.25% -- -- 118,495 -- -- 1.25% -- -- 27,721,055 -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1,215,443 468,686 -- 403,154 437,937 1.30% 4,129,746 1,680,198 468,805 2,073,143 1,085,088 1.35% -- 36,767 -- -- 240,304 1.40% -- 55,868 -- -- 834 1.45% 1,189,014 399,457 83,215 426,159 396,989 1.55% -- 31,407 -- -- 55,113 1.60% -- 2,481 -- -- 3,702 1.65% -- 3,393 -- -- -- 1.70% -- 2,175 -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- ----------------------------------------------------------------------------------------------------------- Total 174,066,949 56,806,756 83,644,662 74,819,732 134,954,041 -----------------------------------------------------------------------------------------------------------
COL VP COL VP COL VP EV VT SELECT LG SELECT SM SHORT CS FLOATING- CAP VAL, CAP VAL, DURATION, COMMODITY RATE SUBACCOUNT CL 3 CL 3 CL 3 RETURN INC -------------------------------------------------------------------- 0.55% 198,459 152,369 1,843,234 617,030 1,730,011 0.75% 9,950,253 16,466,033 78,480,446 38,080,752 74,598,949 0.85% 2,007,315 2,236,462 18,934,067 10,196,411 23,747,788 0.95% 6,465,225 10,076,472 61,501,044 25,966,449 55,758,922 1.00% 698,631 1,185,375 8,323,544 5,776,911 9,352,713 1.05% 1,119,534 1,468,410 10,315,189 7,026,524 18,777,159 1.10% 462,827 676,333 5,279,006 5,100,434 9,887,945 1.20% 476,904 705,008 7,651,015 2,408,078 6,419,407 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 80,774 59,229 1,822,675 583,240 2,004,602 1.30% 337,264 403,600 5,601,611 2,577,071 8,341,131 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 72,078 71,425 4,378,067 949,725 3,787,891 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- ----------------------------------------------------------------------------------------------------------- Total 21,869,264 33,500,716 204,129,898 99,282,625 214,406,518 -----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 62 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
FTVIPT FRANK FID VIP FID VIP FID VIP FID VIP GLOBAL REAL CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, EST, SUBACCOUNT SERV CL 2 SERV CL SERV CL SERV CL CL 2 -------------------------------------------------------------------- 0.55% 2,496,181 86,988 161,611 20,089 163,303 0.75% 162,922,111 28,379,322 20,066,111 11,309,553 36,714,101 0.85% 50,040,223 -- -- -- 12,543,630 0.95% 102,175,035 23,702,389 16,338,624 9,288,352 21,820,145 1.00% 19,991,263 -- -- -- 5,047,864 1.05% 29,394,212 -- -- -- 5,753,493 1.10% 19,195,815 -- -- -- 3,951,823 1.20% 11,122,347 -- -- -- 2,638,665 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 2,966,197 -- -- -- 567,837 1.30% 10,541,640 -- -- -- 2,525,227 1.35% 336,988 -- -- -- -- 1.40% 164,396 -- -- -- -- 1.45% 2,700,538 -- -- -- 394,609 1.55% 90,335 -- -- -- -- 1.60% 37,909 -- -- -- -- 1.65% 61,773 -- -- -- -- 1.70% 40,611 -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- ----------------------------------------------------------------------------------------------------------- Total 414,277,574 52,168,699 36,566,346 20,617,994 92,120,697 -----------------------------------------------------------------------------------------------------------
GS VIT GS VIT FTVIPT FRANK GS VIT STRUCTD STRUCTD U.S. INVESCO VI SM CAP VAL, MID CAP VAL, SM CAP EQ, EQ, CAP APPR, SUBACCOUNT CL 2 INST INST INST SER I -------------------------------------------------------------------- 0.55% 211,935 610,855 1,539 592,020 256,615 0.75% 28,383,756 52,628,014 2,476,493 73,864,067 10,318,236 0.85% 12,613,986 -- -- 6,321,721 -- 0.95% 18,246,261 33,367,954 2,041,612 45,869,175 7,694,679 1.00% 4,671,444 8,179,983 -- 6,562,642 -- 1.05% 5,056,511 -- -- 3,538,770 -- 1.10% 3,786,098 -- -- 1,023,390 -- 1.20% 2,495,618 4,716,607 -- 3,289,441 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 294,699 -- -- 303,969 -- 1.30% 1,730,443 -- -- 486,558 -- 1.35% 77,605 -- -- -- -- 1.40% 17,547 -- -- -- -- 1.45% 462,207 -- -- 142,658 -- 1.55% 67,314 -- -- -- -- 1.60% 7,922 -- -- -- -- 1.65% 6,575 -- -- -- -- 1.70% 11,240 -- -- -- -- 1.75% -- -- -- -- -- 1.80% 2,393 -- -- -- -- ----------------------------------------------------------------------------------------------------------- Total 78,143,554 99,503,413 4,519,644 141,994,411 18,269,530 -----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 63
INVESCO VI INVESCO VI INVESCO VI INVESCO VANK JANUS ASPEN CAP DEV, GLOBAL HLTH, INTL GRO, VI COMSTOCK, ENTERPRISE, SUBACCOUNT SER I SER II SER II SER II SERV -------------------------------------------------------------------- 0.55% 62,766 103,009 294,423 788,301 34,291 0.75% 5,665,200 7,312,461 30,303,503 86,060,882 13,344,813 0.85% -- 3,626,150 10,764,835 14,752,660 -- 0.95% 4,342,733 4,633,040 20,479,842 43,939,344 6,760,339 1.00% 169,536 789,090 2,862,709 15,565,870 -- 1.05% -- 2,394,208 6,515,095 7,165,895 -- 1.10% -- 1,130,090 3,450,177 4,634,622 -- 1.20% 175,278 383,232 1,232,528 7,423,496 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- 97,181 318,944 702,505 -- 1.30% -- 508,364 1,631,958 2,454,509 -- 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% -- 123,559 358,598 736,665 -- 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 10,415,513 21,100,384 78,212,612 184,224,749 20,139,443 --------------------------------------------------------------------------------------------------------------------
MFS JANUS ASPEN JANUS ASPEN JANUS ASPEN INV GRO MFS GLOBAL TECH, JANUS, OVERSEAS, STOCK, NEW DIS, SUBACCOUNT SERV SERV SERV SERV CL SERV CL -------------------------------------------------------------------- 0.55% 111,459 461,472 262,057 185,782 130,760 0.75% 21,200,583 22,461,733 40,311,131 47,280,634 25,582,736 0.85% -- 13,257,501 -- 2,987,186 -- 0.95% 12,352,386 13,639,108 28,873,050 29,974,035 18,475,596 1.00% 331,757 2,217,734 969,578 2,867,151 1,874,959 1.05% -- 5,118,080 -- 2,127,373 -- 1.10% -- 3,225,933 -- 1,252,144 -- 1.20% 122,186 1,400,087 534,240 1,322,357 1,247,891 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- 359,325 -- 320,376 -- 1.30% -- 1,712,503 -- 500,097 -- 1.35% -- 35,911 -- -- -- 1.40% -- 9,361 -- -- -- 1.45% -- 590,539 -- 268,652 -- 1.55% -- -- -- -- -- 1.60% -- 6,590 -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 34,118,371 64,495,877 70,950,056 89,085,787 47,311,942 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 64 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
MS UIF OPPEN MFS GLOBAL REAL MS UIF NB AMT GLOBAL SEC UTILITIES, EST, MID CAP GRO, INTL, VA, SUBACCOUNT SERV CL CL II CL II CL S SERV -------------------------------------------------------------------- 0.55% 543,192 466,506 299,537 154,355 429,221 0.75% 46,187,451 22,050,801 18,213,971 8,477,899 26,339,180 0.85% 17,961,839 8,255,745 6,755,937 3,960,996 8,568,736 0.95% 28,482,858 13,857,215 11,090,966 4,653,776 16,697,117 1.00% 4,149,960 3,763,642 1,692,503 638,329 4,885,822 1.05% 10,346,007 4,699,105 3,625,939 1,876,132 4,735,134 1.10% 5,414,337 3,474,452 2,237,495 1,289,484 2,786,458 1.20% 2,927,805 1,853,536 1,686,214 286,869 2,762,663 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 531,422 356,472 204,760 90,611 847,390 1.30% 3,758,331 2,093,219 1,363,587 537,953 1,548,435 1.35% 137,297 -- 40,784 -- 226,598 1.40% 69,331 -- 31,975 -- 46,068 1.45% 953,198 425,290 203,357 96,288 587,887 1.55% 84,381 -- -- -- 199,573 1.60% 8,713 -- 9,430 -- -- 1.65% 63,265 -- -- -- 31,015 1.70% 60,440 -- 6,831 -- 1,141 1.75% -- -- -- -- -- 1.80% -- -- -- -- 9,666 -------------------------------------------------------------------------------------------------------------------- Total 121,679,827 61,295,983 47,463,286 22,062,692 70,702,104 --------------------------------------------------------------------------------------------------------------------
OPPEN GLOBAL OPPEN PUT VT STRATEGIC MAIN ST SM PIMCO VIT MULTI-CAP ROYCE INC VA, MID CAP VA, ALL ASSET, GRO, MICRO-CAP, SUBACCOUNT SRV SERV ADVISOR CL CL IB INVEST CL -------------------------------------------------------------------- 0.55% 3,125,262 394,237 699,639 123,091 33,946 0.75% 225,203,739 16,342,330 69,382,048 14,126,339 6,206,007 0.85% 60,623,727 6,884,008 20,989,925 -- -- 0.95% 159,925,476 9,936,668 49,461,545 9,244,585 5,375,986 1.00% 29,093,609 3,482,436 8,122,025 446,404 -- 1.05% 48,110,295 4,136,666 14,599,286 -- -- 1.10% 23,257,737 3,159,547 8,354,645 -- -- 1.20% 20,764,821 1,678,907 8,325,453 136,359 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 4,013,300 351,619 2,095,935 -- -- 1.30% 20,543,079 1,536,305 6,150,179 -- -- 1.35% -- 80,847 481,640 -- -- 1.40% -- 836 56,631 -- -- 1.45% 7,214,925 301,946 2,837,931 -- -- 1.55% -- 28,658 158,771 -- -- 1.60% -- 2,342 21,426 -- -- 1.65% -- -- 158,654 -- -- 1.70% -- 1,121 136,385 -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total 601,875,970 48,318,473 192,032,118 24,076,778 11,615,939 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 65
VP VP VP VP THIRD AGGR, AGGR, CONSERV, CONSERV, SUBACCOUNT AVE VAL CL 2 CL 4 CL 2 CL 4 -------------------------------------------------------------------------- 0.55% 32,929 1,257,472 18,860,128 1,442,810 4,174,865 0.75% 7,100,989 57,559,161 258,557,591 81,729,719 212,474,247 0.85% -- 249,263,816 673,876,234 124,664,119 517,244,044 0.95% 6,238,537 153,074,081 109,520,544 152,206,531 137,636,012 1.00% -- 5,318,374 27,552,542 8,652,323 19,636,139 1.05% -- 9,262,301 194,646,182 19,166,076 278,438,969 1.10% -- 27,378,634 142,958,945 25,355,523 172,996,822 1.20% -- 88,244,622 7,381,842 106,319,880 19,707,715 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- 1,375,203 4,637,748 3,691,695 19,589,023 1.30% -- 7,923,538 39,654,304 23,539,824 98,218,109 1.35% -- 1,021,812 -- 11,499,065 -- 1.40% -- 1,905,765 -- 4,423,623 -- 1.45% -- 5,014,063 1,617,586 12,111,087 32,521,161 1.55% -- 1,235,115 -- 7,523,577 -- 1.60% -- 312,858 -- 1,746,157 -- 1.65% -- 2,115,448 -- 4,760,598 -- 1.70% -- 177,758 -- 4,416,647 -- 1.75% -- -- -- 153,880 -- 1.80% -- 8,711 -- 494,240 -- -------------------------------------------------------------------------------------------------------------------------- Total 13,372,455 612,448,732 1,479,263,646 593,897,374 1,512,637,106 --------------------------------------------------------------------------------------------------------------------------
VP DAVIS VP GS VP VP VP NY VENTURE, MID CAP VAL, MOD, MOD, MOD AGGR, SUBACCOUNT CL 3 CL 3 CL 2 CL 4 CL 2 -------------------------------------------------------------------------- 0.55% 263,923 127,137 4,193,895 21,448,094 1,063,791 0.75% 18,110,722 4,275,860 318,882,638 1,448,513,444 181,156,734 0.85% 11,366,949 1,609,503 1,372,850,168 3,866,446,739 1,004,345,791 0.95% 9,393,888 2,435,552 1,036,628,589 839,440,736 586,675,328 1.00% 1,360,272 388,938 27,953,539 165,094,562 14,158,328 1.05% 4,460,268 831,742 87,050,689 1,602,860,653 51,157,230 1.10% 2,093,721 322,132 158,255,297 1,147,869,401 110,904,150 1.20% 742,062 281,763 803,652,719 76,904,723 380,431,717 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 217,706 73,730 14,803,653 45,363,572 7,528,050 1.30% 1,275,718 179,827 89,952,554 467,312,014 42,475,410 1.35% -- -- 28,107,038 -- 9,271,555 1.40% -- -- 22,125,973 -- 11,745,954 1.45% 279,717 17,948 58,637,036 37,613,033 29,585,239 1.55% -- -- 13,127,042 -- 2,986,304 1.60% -- -- 7,906,701 -- 1,816,283 1.65% -- -- 23,508,473 -- 7,579,611 1.70% -- -- 4,861,731 -- 300,641 1.75% -- -- -- -- 34,589 1.80% -- -- 430,000 -- 177,078 -------------------------------------------------------------------------------------------------------------------------- Total 49,564,946 10,544,132 4,072,927,735 9,718,866,971 2,443,393,783 --------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 66 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
VP VP VP VP PTNRS MOD AGGR, MOD CONSERV, MOD CONSERV, SM CAP VAL, WANGER SUBACCOUNT CL 4 CL 2 CL 4 CL 3 INTL -------------------------------------------------------------------- 0.55% 26,294,315 1,471,086 9,102,713 542,249 992,255 0.75% 998,828,265 149,512,257 439,107,766 39,423,521 66,511,152 2,609,306,- 1,071,873,- 0.85% 825 310,372,825 032 9,513,401 24,124,658 0.95% 451,744,043 335,256,998 323,133,286 21,323,954 41,065,884 1.00% 92,739,875 15,647,177 52,813,091 4,644,695 7,022,262 1.05% 850,052,676 38,846,581 501,599,231 4,661,011 12,954,545 1.10% 553,317,789 48,500,218 376,142,161 2,309,392 6,758,271 1.20% 28,509,615 235,331,701 33,843,730 2,181,025 3,403,231 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 22,031,895 6,256,830 24,569,802 321,629 781,961 1.30% 158,718,939 40,844,234 209,263,075 1,083,221 3,546,157 1.35% -- 14,555,646 -- -- -- 1.40% -- 9,783,661 -- -- -- 1.45% 10,728,814 21,111,682 38,434,164 373,792 738,847 1.55% -- 9,437,341 -- -- -- 1.60% -- 3,191,310 -- -- -- 1.65% -- 5,697,831 -- -- -- 1.70% -- 2,962,782 -- -- -- 1.75% -- -- -- -- -- 1.80% -- 745,303 -- -- -- -------------------------------------------------------------------------------------------------------------------- 5,802,273,- 1,249,525,- 3,079,882,- Total 051 463 051 86,377,890 167,899,223 --------------------------------------------------------------------------------------------------------------------
WF ADV WF ADV VT INDEX WF ADV VT SM CAP WANGER ASSET ALLOC, VT INTL EQ, GRO, SUBACCOUNT USA CL 2 CL 2 CL 2 ------------------------------------------------------ 0.55% 894,842 1,814 311,229 159,765 0.75% 84,308,640 12,267,691 16,786,288 20,501,527 0.85% 21,342,440 -- 7,767,935 7,143,252 0.95% 54,608,347 8,818,589 12,050,115 12,890,115 1.00% 12,712,248 1,554,051 2,535,006 2,076,870 1.05% 10,675,298 -- 3,408,676 4,336,727 1.10% 5,909,956 -- 1,957,905 1,867,685 1.20% 5,534,700 603,479 1,411,413 1,105,930 1.25% -- -- -- -- 1.25% -- -- -- -- 1.25% -- -- -- -- 1.25% -- -- -- -- 1.25% -- -- -- -- 1.25% 928,235 -- 219,213 313,220 1.30% 2,942,671 -- 1,409,388 1,008,322 1.35% -- -- -- 56,395 1.40% -- -- -- 10,756 1.45% 636,172 -- 270,894 343,882 1.55% -- -- -- 15,150 1.60% -- -- -- 4,502 1.65% -- -- -- 6,749 1.70% -- -- -- 47,336 1.75% -- -- -- -- 1.80% -- -- -- 845 ------------------------------------------------------------------------------------------------------------- Total 200,493,549 23,245,624 48,128,062 51,889,028 -------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 67 The following is a summary of net assets at Dec. 31, 2011:
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 I CL II -------------------------------------------------------------------- 0.55% $ 58,763 $ 359,512 $ 1,405,699 $ 4,651 $ 102,853 0.75% 3,244,677 54,339,897 112,356,489 8,262,891 11,355,136 0.85% 2,292,001 5,871,772 16,875,248 -- 8,267,868 0.95% 1,558,908 31,684,267 66,144,399 7,282,292 7,422,700 1.00% 357,643 5,765,289 13,645,739 -- 1,093,831 1.05% 985,092 3,491,425 8,179,314 -- 4,884,323 1.10% 881,784 1,705,199 6,551,321 -- 2,747,395 1.20% 388,086 2,972,734 6,566,025 -- 577,536 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 45,381 273,156 750,412 -- 400,350 1.30% 276,713 423,429 3,031,933 -- 1,562,284 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 93,854 152,753 714,748 -- 448,743 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total $10,182,902 $107,039,433 $236,221,327 $15,549,834 $38,863,019 --------------------------------------------------------------------------------------------------------------------
AC VP AC VP CALVERT VP COL VP COL VP ULTRA, VAL, SRI BAL, CASH MGMT, SUBACCOUNT CL II CL I BAL CL 3 CL 3 -------------------------------------------------------------------- 0.55% $ 105,382 $ 438,251 $ 7,030 $ 973,680 $ 631,213 0.75% 10,740,737 25,652,415 14,225,537 64,961,917 148,819,225 0.85% 3,854,569 -- -- 8,104,015 33,600,949 0.95% 5,573,035 21,465,257 7,125,330 47,235,189 96,117,132 1.00% 1,504,760 -- 1,769,952 6,782,835 11,095,966 1.05% 1,621,747 -- -- 5,607,874 23,369,398 1.10% 643,982 -- -- 3,263,210 11,286,597 1.20% 1,023,203 -- 787,438 4,817,446 5,987,552 1.25% -- -- -- -- -- 1.25% -- -- -- 1,029,046 4,722,769 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- 65,581,100 43,279,909 1.25% 103,512 -- -- -- -- 1.30% 362,651 -- -- 2,268,320 4,894,887 1.35% -- -- -- 79,115 -- 1.40% -- -- -- 11 -- 1.45% 83,926 -- -- 584,000 4,168,639 1.55% -- -- -- 11 -- 1.60% -- -- -- 11 -- 1.65% -- -- -- 11 -- 1.70% -- -- -- 11 -- 1.75% -- -- -- 11 -- 1.80% -- -- -- 11 -- -------------------------------------------------------------------------------------------------------------------- Total $25,617,504 $47,555,923 $23,915,287 $211,287,824 $387,974,236 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 68 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
COL VP COL VP COL VP COL VP EMER MKTS COL VP DIV BOND, DIV EQ INC, DYN EQ, OPP, GLOBAL BOND, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 ----------------------------------------------------------------------- 0.55% $ 5,048,420 $ 2,996,626 $ 399,224 $ 1,870,129 $ 2,125,950 0.75% 392,699,649 329,318,781 157,100,517 97,053,190 135,436,139 0.85% 77,307,966 57,193,441 1,882,917 23,823,057 26,654,130 0.95% 288,336,180 196,355,678 83,332,605 55,892,324 102,418,504 1.00% 37,825,412 34,875,137 10,705,947 11,389,576 14,599,472 1.05% 53,815,502 27,146,460 1,578,182 12,139,852 21,092,193 1.10% 25,666,241 15,183,416 414,443 7,384,498 8,335,802 1.20% 28,504,205 17,037,156 4,423,358 5,148,788 9,969,696 1.25% -- 78,485,226 -- 52,498,449 -- 1.25% 3,920,111 2,386,189 206,171 908,932 1,747,436 1.25% -- -- -- -- -- 1.25% -- -- -- -- 25,716,757 1.25% 79,769,240 -- 123,669,900 -- -- 1.25% -- -- -- -- -- 1.30% 16,594,317 7,512,576 334,218 3,259,661 6,985,212 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 8,311,503 2,072,356 71,272 850,763 2,630,877 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------- Total $1,017,798,746 $770,563,042 $384,118,754 $272,219,219 $357,712,168 -----------------------------------------------------------------------------------------------------------------------
COL VP GLOBAL COL VP INFLATION HI YIELD COL VP COL VP COL VP PROT SEC, BOND, INC OPP, INTL OPP, LG CAP GRO, SUBACCOUNT CL 3 CL 3 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% $ 1,538,568 $ 1,331,268 $ 2,078,286 $ 344,237 $ 864,880 0.75% 110,702,350 172,359,240 77,573,290 30,574,371 65,960,118 0.85% 24,717,114 23,825,285 21,669,661 3,833,045 3,785,355 0.95% 72,531,778 134,619,376 53,906,034 19,879,346 37,231,354 1.00% 12,447,850 14,375,667 8,257,451 3,178,262 5,901,933 1.05% 16,574,045 16,045,186 15,031,975 2,827,930 2,370,286 1.10% 7,153,465 7,399,948 7,126,182 1,539,349 1,027,082 1.20% 9,821,403 12,313,537 6,863,360 1,511,931 2,637,866 1.25% -- -- -- -- -- 1.25% -- 1,172,894 -- 257,061 -- 1.25% -- -- -- -- -- 1.25% -- 48,729,250 -- -- -- 1.25% -- -- -- 40,875,454 -- 1.25% 1,408,476 -- 1,019,180 -- 236,964 1.30% 8,290,361 5,243,978 5,462,850 986,507 314,329 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 3,256,051 2,193,735 1,850,483 213,219 148,938 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total $268,441,461 $439,609,364 $200,838,752 $106,020,712 $120,479,105 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 69
COL VP COL VP COL VP COL VP MARSICO INTL MID CAP MID CAP COL VP MARSICO GRO, OPP, GRO OPP, VAL OPP, S&P 500, SUBACCOUNT CL 1 CL 2 CL 3 CL 3 CL 3 -------------------------------------------------------------------- 0.55% $ 935,876 $ 429,352 $ 166,153 $ 596,108 $ 120,948 0.75% 73,651,225 17,476,375 37,139,054 32,527,967 61,711,963 0.85% 29,256,811 7,551,445 3,782,082 14,919,403 7,077,211 0.95% 41,500,870 10,240,756 21,414,117 18,368,912 42,245,574 1.00% 7,370,085 2,155,640 1,775,454 3,368,477 6,020,105 1.05% 14,037,479 4,327,719 2,531,662 8,014,557 4,018,277 1.10% 8,739,811 3,117,239 1,693,794 3,701,934 2,511,990 1.20% 3,070,295 1,376,034 1,130,356 1,613,883 3,573,112 1.25% -- -- -- -- -- 1.25% -- -- 128,264 -- -- 1.25% -- -- 27,800,514 -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1,330,310 428,782 -- 395,361 455,466 1.30% 4,506,952 1,533,089 506,961 2,027,969 1,125,256 1.35% -- 37,056 -- -- 283,232 1.40% -- 56,267 -- -- 994 1.45% 1,286,703 361,428 89,275 413,312 408,325 1.55% -- 31,564 -- -- 64,775 1.60% -- 2,492 -- -- 4,359 1.65% -- 3,406 -- -- 11 1.70% -- 2,182 -- -- 11 1.75% -- 65 -- -- 11 1.80% -- 65 -- -- 11 ----------------------------------------------------------------------------------------------------------- Total $185,686,417 $49,130,956 $98,157,686 $85,947,883 $129,621,631 -----------------------------------------------------------------------------------------------------------
COL VP COL VP COL VP EV VT SELECT LG SELECT SM SHORT CS FLOATING- CAP VAL, CAP VAL, DURATION, COMMODITY RATE SUBACCOUNT CL 3 CL 3 CL 3 RETURN INC -------------------------------------------------------------------- 0.55% $ 235,091 $ 252,593 $ 2,591,150 $ 628,169 $ 2,076,685 0.75% 11,600,072 26,847,541 107,518,334 33,742,813 88,650,081 0.85% 2,016,754 2,245,165 21,155,820 9,411,828 27,956,501 0.95% 7,426,534 16,014,915 82,149,557 22,752,855 65,593,609 1.00% 798,501 1,806,570 9,666,808 5,041,633 10,952,352 1.05% 1,113,886 1,458,019 11,448,012 6,481,179 21,871,769 1.10% 458,579 669,720 5,817,429 4,642,975 11,479,369 1.20% 536,453 1,053,326 8,719,293 2,077,883 7,429,956 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 79,419 58,165 1,991,958 526,663 2,307,686 1.30% 330,545 395,353 6,104,821 2,320,084 9,576,992 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% 70,056 69,323 4,763,615 848,265 4,313,109 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- ----------------------------------------------------------------------------------------------------------- Total $24,665,890 $50,870,690 $261,926,797 $88,474,347 $252,208,109 -----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 70 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
FTVIPT FRANK FID VIP FID VIP FID VIP FID VIP GLOBAL REAL CONTRAFUND, GRO & INC, MID CAP, OVERSEAS, EST, SUBACCOUNT SERV CL 2 SERV CL SERV CL SERV CL CL 2 -------------------------------------------------------------------- 0.55% $ 2,600,156 $ 95,541 $ 579,522 $ 20,786 $ 326,353 0.75% 168,260,295 30,515,581 68,874,571 11,492,651 70,808,409 0.85% 54,577,083 -- -- -- 9,060,158 0.95% 104,446,329 24,858,095 54,989,324 9,258,408 41,159,501 1.00% 20,315,682 -- -- -- 7,065,229 1.05% 31,712,802 -- -- -- 4,111,875 1.10% 20,624,659 -- -- -- 2,814,988 1.20% 11,171,405 -- -- -- 3,625,853 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 3,174,869 -- -- -- 397,327 1.30% 11,201,456 -- -- -- 1,779,059 1.35% 388,432 -- -- -- -- 1.40% 189,345 -- -- -- -- 1.45% 2,845,709 -- -- -- 273,221 1.55% 103,817 -- -- -- -- 1.60% 43,575 -- -- -- -- 1.65% 70,889 -- -- -- -- 1.70% 46,571 -- -- -- -- 1.75% 109 -- -- -- -- 1.80% 105 -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total $431,773,288 $55,469,217 $124,443,417 $20,771,845 $141,421,973 --------------------------------------------------------------------------------------------------------------------
GS VIT GS VIT FTVIPT FRANK GS VIT STRUCTD STRUCTD U.S. INVESCO VI SM CAP VAL, MID CAP VAL, SM CAP EQ, EQ, CAP APPR, SUBACCOUNT CL 2 INST INST INST SER I -------------------------------------------------------------------- 0.55% $ 534,639 $ 1,629,414 $ 2,749 $ 614,065 $ 216,436 0.75% 69,978,563 137,502,593 4,324,765 73,290,454 8,553,240 0.85% 13,767,162 -- -- 6,029,934 -- 0.95% 43,906,679 84,941,118 3,505,992 44,168,661 6,218,077 1.00% 8,505,048 15,294,594 -- 7,602,383 -- 1.05% 5,457,952 -- -- 3,359,139 -- 1.10% 4,075,546 -- -- 962,636 -- 1.20% 4,454,804 8,646,077 -- 3,736,085 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 315,213 -- -- 283,555 -- 1.30% 1,842,197 -- -- 452,720 -- 1.35% 95,992 -- -- -- -- 1.40% 21,683 -- -- -- -- 1.45% 489,003 -- -- 131,654 -- 1.55% 83,001 -- -- -- -- 1.60% 9,761 -- -- -- -- 1.65% 8,096 -- -- -- -- 1.70% 13,830 -- -- -- -- 1.75% 85 -- -- -- -- 1.80% 3,025 -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total $153,562,279 $248,013,796 $7,833,506 $140,631,286 $14,987,753 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 71
INVESCO VANK INVESCO VI INVESCO VI INVESCO VI VI JANUS ASPEN CAP DEV, GLOBAL HLTH, INTL GRO, COMSTOCK, ENTERPRISE, SUBACCOUNT SER I SER II SER II SER II SERV -------------------------------------------------------------------- 0.55% $ 108,072 $ 113,148 $ 382,568 $ 963,742 $ 24,810 0.75% 9,560,120 7,948,396 38,935,949 103,583,060 9,433,614 0.85% -- 4,156,039 12,265,704 14,642,381 -- 0.95% 7,135,571 4,979,419 25,979,056 52,131,477 4,668,648 1.00% 138,662 845,812 3,617,162 18,359,668 -- 1.05% -- 2,713,074 7,342,072 7,026,990 -- 1.10% -- 1,277,087 3,876,905 4,532,261 -- 1.20% 143,227 406,212 1,537,900 8,628,887 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- 108,851 355,522 680,976 -- 1.30% -- 568,105 1,813,826 2,374,305 -- 1.35% -- -- -- -- -- 1.40% -- -- -- -- -- 1.45% -- 136,986 398,630 706,301 -- 1.55% -- -- -- -- -- 1.60% -- -- -- -- -- 1.65% -- -- -- -- -- 1.70% -- -- -- -- -- 1.75% -- -- -- -- -- 1.80% -- -- -- -- -- -------------------------------------------------------------------------------------------------------------------- Total $17,085,652 $23,253,129 $96,505,294 $213,630,048 $14,127,072 --------------------------------------------------------------------------------------------------------------------
MFS JANUS ASPEN JANUS ASPEN JANUS ASPEN INV GRO MFS GLOBAL TECH, JANUS, OVERSEAS, STOCK, NEW DIS, SUBACCOUNT SERV SERV SERV SERV CL SERV CL -------------------------------------------------------------------- 0.55% $ 57,270 $ 422,846 $ 321,426 $ 140,976 $ 157,118 0.75% 10,641,631 20,407,675 48,345,034 35,085,071 30,057,312 0.85% -- 11,982,772 -- 3,446,552 -- 0.95% 6,181,353 12,278,171 34,037,953 21,781,271 21,249,640 1.00% 414,923 1,990,492 1,998,855 3,255,596 2,553,118 1.05% -- 4,582,856 -- 2,427,408 -- 1.10% -- 2,882,004 -- 1,424,761 -- 1.20% 149,809 1,244,940 1,080,199 1,471,945 1,665,995 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- 318,848 -- 361,069 -- 1.30% -- 1,515,458 -- 562,773 -- 1.35% -- 39,141 -- -- -- 1.40% -- 10,198 -- -- -- 1.45% -- 518,830 -- 299,812 -- 1.55% -- 105 -- -- -- 1.60% -- 7,158 -- -- -- 1.65% -- 105 -- -- -- 1.70% -- 92 -- -- -- 1.75% -- 104 -- -- -- 1.80% -- 104 -- -- -- -------------------------------------------------------------------------------------------------------------------- Total $17,444,986 $58,201,899 $85,783,467 $70,257,234 $55,683,183 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 72 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
MS UIF OPPEN MFS GLOBAL REAL MS UIF NB AMT GLOBAL SEC UTILITIES, EST, MID CAP GRO, INTL, VA, SUBACCOUNT SERV CL CL II CL II CL S SERV -------------------------------------------------------------------- 0.55% $ 1,211,170 $ 440,774 $ 363,583 $ 124,853 $ 597,588 0.75% 101,158,658 20,614,804 21,892,768 6,782,592 36,159,591 0.85% 27,226,291 8,076,125 8,820,390 3,549,198 8,950,403 0.95% 61,053,080 12,896,130 13,162,401 3,688,077 22,600,276 1.00% 11,060,764 3,466,781 2,002,567 503,370 6,562,254 1.05% 15,510,295 4,568,262 4,681,659 1,661,384 4,924,423 1.10% 8,094,391 3,341,269 2,881,111 1,139,312 2,868,426 1.20% 7,650,521 1,688,181 1,972,924 223,732 3,652,158 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 787,964 339,751 275,474 79,589 865,169 1.30% 5,557,019 1,990,954 1,736,732 470,020 1,576,563 1.35% 169,003 -- 47,024 -- 242,462 1.40% 85,568 -- 36,842 -- 49,258 1.45% 1,398,132 401,274 296,293 83,378 638,364 1.55% 103,528 -- 67 -- 212,928 1.60% 10,685 -- 10,859 -- 102 1.65% 77,468 -- 82 -- 33,042 1.70% 74,010 -- 7,837 -- 1,317 1.75% 117 -- 82 -- 102 1.80% 117 -- 82 -- 10,275 -------------------------------------------------------------------------------------------------------------------- Total $241,228,781 $57,824,305 $58,188,777 $18,305,505 $89,944,701 --------------------------------------------------------------------------------------------------------------------
OPPEN GLOBAL OPPEN PUT VT STRATEGIC MAIN ST SM PIMCO VIT MULTI-CAP ROYCE INC VA, MID CAP VA, ALL ASSET, GRO, MICRO-CAP, SUBACCOUNT SRV SERV ADVISOR CL CL IB INVEST CL -------------------------------------------------------------------- 0.55% $ 4,927,083 $ 554,127 $ 992,875 $ 131,472 $ 120,045 0.75% 321,743,503 22,611,921 88,858,840 15,080,628 21,414,140 0.85% 80,579,246 7,307,295 27,465,250 -- -- 0.95% 225,306,626 13,587,811 63,124,941 9,853,333 18,306,646 1.00% 40,751,963 4,722,343 10,229,258 474,090 -- 1.05% 63,366,796 4,342,561 18,908,635 -- -- 1.10% 30,443,840 3,307,767 10,742,876 -- -- 1.20% 28,596,747 2,240,703 10,375,480 144,449 -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 5,228,221 365,124 2,687,130 -- -- 1.30% 26,590,169 1,590,606 7,820,461 -- -- 1.35% -- 95,317 513,681 -- -- 1.40% -- 1,069 60,359 -- -- 1.45% 9,373,976 309,803 3,643,690 -- -- 1.55% -- 33,683 168,951 -- -- 1.60% -- 2,833 22,768 -- -- 1.65% -- 83 168,478 -- -- 1.70% -- 1,398 144,726 -- -- 1.75% -- 82 79 -- -- 1.80% -- 82 79 -- -- -------------------------------------------------------------------------------------------------------------------- Total $836,908,170 $61,074,608 $245,928,557 $25,683,972 $39,840,831 --------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 73
VP VP VP VP THIRD AGGR, AGGR, CONSERV, CONSERV, SUBACCOUNT AVE VAL CL 2 CL 4 CL 2 CL 4 ------------------------------------------------------------------------------ 0.55% $ 86,120 $ 1,368,699 $ 20,478,619 $ 1,552,327 $ 4,491,824 0.75% 16,014,208 62,169,111 279,758,488 87,627,184 227,799,133 0.85% -- 268,865,810 728,039,189 133,457,443 553,716,186 0.95% 13,651,367 164,901,280 118,113,751 162,737,752 147,082,977 1.00% -- 5,720,542 29,691,262 9,238,770 20,967,901 1.05% -- 9,972,227 209,550,711 20,501,980 297,019,661 1.10% -- 29,399,323 153,787,679 27,027,540 184,405,962 1.20% -- 94,588,690 7,927,304 113,131,845 20,970,309 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- 1,472,835 4,976,288 3,925,069 20,828,288 1.30% -- 8,478,252 42,508,128 25,003,222 104,324,261 1.35% -- 1,137,150 -- 12,270,445 -- 1.40% -- 2,119,540 -- 4,717,200 -- 1.45% -- 5,351,781 1,729,752 12,831,621 34,455,974 1.55% -- 1,370,622 -- 8,005,704 -- 1.60% -- 346,906 -- 1,856,543 -- 1.65% -- 2,344,061 -- 5,058,167 -- 1.70% -- 196,812 -- 4,688,915 -- 1.75% -- 11 -- 163,256 -- 1.80% -- 9,631 -- 523,991 -- ------------------------------------------------------------------------------------------------------------------------------ Total $29,751,695 $659,813,283 $1,596,561,171 $634,318,974 $1,616,062,476 ------------------------------------------------------------------------------------------------------------------------------
VP DAVIS VP GS VP VP VP NY VENTURE, MID CAP VAL, MOD, MOD, MOD AGGR, SUBACCOUNT CL 3 CL 3 CL 2 CL 4 CL 2 --------------------------------------------------------------------------------- 0.55% $ 253,377 $ 167,598 $ 4,587,049 $ 23,480,206 $ 1,932,806 0.75% 17,061,778 5,548,143 347,643,807 1,580,167,254 197,318,902 0.85% 10,973,752 1,780,377 1,494,025,373 4,211,429,034 1,092,031,167 0.95% 8,813,611 3,115,280 1,126,234,896 912,729,979 637,126,007 1.00% 1,263,334 494,664 30,343,392 179,374,450 15,354,694 1.05% 4,258,594 909,992 94,580,121 1,739,778,201 56,125,889 1.10% 1,993,569 351,417 171,507,528 1,244,964,595 120,067,925 1.20% 681,509 352,689 869,308,928 83,262,722 411,145,216 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 205,584 79,723 16,000,651 49,076,605 8,129,587 1.30% 1,201,313 193,966 97,131,651 505,052,140 45,823,280 1.35% -- -- 30,767,124 -- 10,233,276 1.40% -- -- 24,204,332 -- 12,955,397 1.45% 261,269 19,218 63,219,062 40,548,995 31,882,013 1.55% -- -- 14,329,467 -- 3,286,625 1.60% -- -- 8,623,686 -- 1,997,358 1.65% -- -- 25,623,100 -- 8,329,322 1.70% -- -- 5,294,709 -- 330,130 1.75% -- -- 11 -- 37,956 1.80% -- -- 467,657 -- 194,181 --------------------------------------------------------------------------------------------------------------------------------- Total $46,967,690 $13,013,067 $4,423,892,544 $10,569,864,181 $2,654,301,731 ---------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 74 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
VP VP VP VP PTNRS MOD AGGR, MOD CONSERV, MOD CONSERV, SM CAP VAL, WANGER SUBACCOUNT CL 4 CL 2 CL 4 CL 3 INTL ------------------------------------------------------------------------------ 0.55% $ 28,785,021 $ 1,598,814 $ 9,910,927 $ 1,072,088 $ 2,251,108 0.75% 1,089,609,085 161,928,290 476,413,409 76,716,823 147,398,680 0.85% 2,842,077,105 335,620,425 1,161,196,081 10,829,676 29,040,711 0.95% 491,194,394 362,147,891 349,441,434 40,721,315 88,946,734 1.00% 100,761,384 16,877,355 57,070,065 8,332,941 18,270,177 1.05% 922,668,793 41,892,528 541,485,740 5,256,599 15,402,631 1.10% 600,122,491 52,221,485 405,739,682 2,593,231 8,013,424 1.20% 30,867,342 252,942,599 36,442,618 3,852,492 8,688,735 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- -- 1.25% 23,835,106 6,719,739 26,436,437 358,256 927,921 1.30% 171,539,516 43,823,796 224,934,841 1,202,774 4,158,370 1.35% -- 15,736,885 -- -- -- 1.40% -- 10,570,932 -- -- -- 1.45% 11,566,259 22,688,932 41,209,339 411,627 859,302 1.55% -- 10,174,077 -- -- -- 1.60% -- 3,437,752 -- -- -- 1.65% -- 6,133,703 -- -- -- 1.70% -- 3,186,952 -- -- -- 1.75% -- 11 -- -- -- 1.80% -- 800,578 -- -- -- ------------------------------------------------------------------------------------------------------------------------------ Total $6,313,026,496 $1,348,502,744 $3,330,280,573 $151,347,822 $323,957,793 ------------------------------------------------------------------------------------------------------------------------------
WF ADV VT INDEX WF ADV WF ADV WANGER ASSET ALLOC, VT INTL EQ, VT SM CAP GRO, SUBACCOUNT USA CL 2 CL 2 CL 2 -------------------------------------------------------------- 0.55% $ 1,797,107 $ 2,424 $ 384,195 $ 228,945 0.75% 165,379,678 16,169,116 20,473,781 28,729,394 0.85% 23,787,569 -- 6,876,714 9,649,788 0.95% 104,669,135 11,390,847 14,454,739 17,736,945 1.00% 21,628,245 2,094,589 3,019,094 3,288,293 1.05% 11,791,485 -- 2,977,742 5,793,727 1.10% 6,496,730 -- 1,705,673 2,488,256 1.20% 9,237,367 797,387 1,654,158 1,716,752 1.25% -- -- -- -- 1.25% -- -- -- -- 1.25% -- -- -- -- 1.25% -- -- -- -- 1.25% -- -- -- -- 1.25% 1,011,927 -- 189,402 413,875 1.30% 3,199,381 -- 1,214,305 1,328,604 1.35% -- -- -- 67,789 1.40% -- -- -- 12,920 1.45% 685,858 -- 231,484 453,403 1.55% -- -- -- 18,157 1.60% -- -- -- 5,391 1.65% -- -- -- 8,078 1.70% -- -- -- 56,609 1.75% -- -- -- 83 1.80% -- -- -- 1,093 --------------------------------------------------------------------------------------------------------------------- Total $349,684,482 $30,454,363 $53,181,287 $71,998,102 ---------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 75 9. FINANCIAL HIGHLIGHTS The following is a summary for each period in the five year period ended Dec. 31, 2011 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 2011 10,598 $0.97 to $0.94 $10,183 0.37% 0.55% to 1.45% (23.83%) to (24.51%) 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% ---------------------------------------------------------------------------------------------------------------------------- AB VPS GRO & INC, CL B 2011 96,883 $1.14 to $0.97 $107,039 1.10% 0.55% to 1.45% 5.49% to 4.55% 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% ---------------------------------------------------------------------------------------------------------------------------- AB VPS INTL VAL, CL B 2011 203,415 $1.38 to $0.64 $236,221 3.69% 0.55% to 1.45% (19.88%) to (20.60%) 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% ---------------------------------------------------------------------------------------------------------------------------- AC VP INTL, CL I 2011 14,469 $1.11 to $1.06 $15,550 1.49% 0.55% to 0.95% (12.52%) to (12.87%) 2010 19,455 $1.27 to $1.21 $23,954 2.46% 0.55% to 0.95% 12.67% to 12.22% 2009 26,333 $1.13 to $1.08 $28,827 2.17% 0.55% to 0.95% 33.03% to 32.50% 2008 34,033 $0.85 to $0.82 $28,083 0.87% 0.55% to 0.95% (45.13%) to (45.35%) 2007 45,040 $1.54 to $1.49 $67,915 0.69% 0.55% to 0.95% 17.41% to 16.93% ---------------------------------------------------------------------------------------------------------------------------- AC VP MID CAP VAL, CL II 2011 35,063 $1.02 to $1.21 $38,863 1.19% 0.55% to 1.45% (1.39%) to (2.27%) 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%)(4)to (3.84%) ---------------------------------------------------------------------------------------------------------------------------- AC VP ULTRA, CL II 2011 24,050 $1.07 to $1.07 $25,618 -- 0.55% to 1.45% 0.31% to (0.59%) 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% ---------------------------------------------------------------------------------------------------------------------------- AC VP VAL, CL I 2011 27,810 $1.76 to $1.67 $47,556 2.02% 0.55% to 0.95% 0.46% to 0.06% 2010 36,229 $1.75 to $1.67 $61,756 2.14% 0.55% to 0.95% 12.80% to 12.35% 2009 47,184 $1.55 to $1.49 $71,321 5.85% 0.55% to 0.95% 19.21% to 18.73% 2008 116,786 $1.30 to $1.87 $185,351 2.70% 0.55% to 1.25% (27.18%) to (27.69%) 2007 177,323 $1.79 to $2.58 $390,597 1.76% 0.55% to 1.25% (5.66%) to (6.32%) ---------------------------------------------------------------------------------------------------------------------------- CALVERT VP SRI BAL 2011 21,309 $1.14 to $1.21 $23,915 1.24% 0.55% to 1.20% 3.99% to 3.32% 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP BAL, CL 3 2011 156,899 $1.24 to $1.14 $211,288 -- 0.55% to 1.80% 1.83% to 0.57% 2010 182,004 $1.22 to $1.14 $241,934 -- 0.55% to 1.80% 11.91% to 13.84%(6) 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% ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 76 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 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 CASH MGMT, CL 3 2011 335,563 $1.23 to $1.02 $387,974 0.01% 0.55% to 1.45% (0.53%) to (1.42%) 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP DIV BOND, CL 3 2011 642,765 $1.73 to $1.27 $1,017,799 4.49% 0.55% to 1.45% 6.10% to 5.14% 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP DIV EQ INC, CL 3 2011 533,665 $1.62 to $0.95 $770,563 -- 0.55% to 1.45% (5.53%) to (6.38%) 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP DYN EQ, CL 3 2011 398,158 $0.86 to $0.98 $384,119 -- 0.55% to 1.45% 4.65% to 3.71% 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP EMER MKTS OPP, CL 3 2011 148,254 $2.16 to $1.31 $272,219 1.14% 0.55% to 1.45% (21.45%) to (22.16%) 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP GLOBAL BOND, CL 3 2011 208,801 $1.90 to $1.30 $357,712 2.85% 0.55% to 1.45% 4.21% to 3.28% 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP GLOBAL INFLATION PROT SEC, CL 3 2011 202,745 $1.36 to $1.27 $268,441 7.27% 0.55% to 1.45% 9.43% to 8.45% 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP HI YIELD BOND, CL 3 2011 242,259 $1.91 to $1.41 $439,609 8.25% 0.55% to 1.45% 5.10% to 4.15% 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP INC OPP, CL 3 2011 131,375 $1.59 to $1.41 $200,839 9.24% 0.55% to 1.45% 5.68% to 4.73% 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP INTL OPP, CL 3 2011 101,842 $0.95 to $0.93 $106,021 1.34% 0.55% to 1.45% (12.90%) to (13.68%) 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% ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 77
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 LG CAP GRO, CL 3 2011 183,234 $0.64 to $0.94 $120,479 -- 0.55% to 1.45% (3.76%) to (4.62%) 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP MARSICO GRO, CL 1 2011 174,067 $1.06 to $1.08 $185,686 0.29% 0.55% to 1.45% (3.17%) to (4.04%) 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP MARSICO INTL OPP, CL 2 2011 56,807 $0.84 to $1.00 $49,131 0.80% 0.55% to 1.80% (16.64%) to (17.68%) 2010 70,989 $1.01 to $1.22 $73,764 0.67% 0.55% to 1.80% 13.11% to 21.28%(6) 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP MID CAP GRO OPP, CL 3 2011 83,645 $1.34 to $1.07 $98,158 -- 0.55% to 1.45% (15.54%) to (16.29%) 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP MID CAP VAL OPP, CL 3 2011 74,820 $1.28 to $0.97 $85,948 -- 0.55% to 1.45% (8.99%) to (9.81%) 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP S&P 500, CL 3 2011 134,954 $0.95 to $1.17 $129,622 -- 0.55% to 1.80% 1.07% to (0.18%) 2010 156,454 $0.94 to $1.17 $148,693 -- 0.55% to 1.80% 14.08% to 17.32%(6) 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% ---------------------------------------------------------------------------------------------------------------------------- COL VP SELECT LG CAP VAL, CL 3 2011 21,869 $1.18 to $0.97 $24,666 -- 0.55% to 1.45% (2.23%) to (3.11%) 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%) ---------------------------------------------------------------------------------------------------------------------------- COL VP SELECT SM CAP VAL, CL 3 2011 33,501 $1.66 to $0.97 $50,871 -- 0.55% to 1.45% (9.01%) to (9.83%) 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%) ---------------------------------------------------------------------------------------------------------------------------- COL VP SHORT DURATION, CL 3 2011 204,130 $1.41 to $1.08 $261,927 0.90% 0.55% to 1.45% 0.83% to (0.08%) 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% ---------------------------------------------------------------------------------------------------------------------------- CS COMMODITY RETURN 2011 99,283 $0.90 to $0.89 $88,474 2.48% 0.55% to 1.45% (13.13%) to (13.91%) 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% ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 78 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 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) ----------------------------------------------------------------------------------------------------------------------- EV VT FLOATING-RATE INC 2011 214,407 $1.20 to $1.14 $252,208 4.23% 0.55% to 1.45% 1.99% to 1.07% 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% ---------------------------------------------------------------------------------------------------------------------------- FID VIP CONTRAFUND, SERV CL 2 2011 414,278 $1.04 to $1.15 $431,773 0.75% 0.55% to 1.80% (3.32%) to (4.51%) 2010 474,193 $1.08 to $1.20 $512,183 0.82% 0.55% to 1.80% 16.29% to 19.27%(6) 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% ---------------------------------------------------------------------------------------------------------------------------- FID VIP GRO & INC, SERV CL 2011 52,169 $1.10 to $1.05 $55,469 1.52% 0.55% to 0.95% 1.02% to 0.62% 2010 69,940 $1.09 to $1.04 $73,762 0.56% 0.55% to 0.95% 14.03% to 13.58% 2009 91,710 $0.95 to $0.91 $85,042 0.95% 0.55% to 0.95% 26.46% to 25.96% 2008 114,759 $0.75 to $0.73 $84,337 0.96% 0.55% to 0.95% (42.09%) to (42.33%) 2007 154,280 $1.30 to $1.26 $196,235 1.66% 0.55% to 0.95% 11.38% to 10.94% ---------------------------------------------------------------------------------------------------------------------------- FID VIP MID CAP, SERV CL 2011 36,566 $3.50 to $3.33 $124,443 0.13% 0.55% to 0.95% (11.21%) to (11.56%) 2010 49,947 $3.94 to $3.77 $191,576 0.24% 0.55% to 0.95% 28.00% to 27.49% 2009 68,537 $3.08 to $2.95 $205,621 0.57% 0.55% to 0.95% 39.25% to 38.69% 2008 85,755 $2.21 to $2.13 $185,298 0.35% 0.55% to 0.95% (39.84%) to (40.08%) 2007 109,849 $3.68 to $3.56 $395,275 0.72% 0.55% to 0.95% 14.85% to 14.39% ---------------------------------------------------------------------------------------------------------------------------- FID VIP OVERSEAS, SERV CL 2011 20,618 $1.03 to $0.98 $20,772 1.10% 0.55% to 0.95% (17.68%) to (18.01%) 2010 29,438 $1.26 to $1.20 $36,025 1.18% 0.55% to 0.95% 12.37% to 11.93% 2009 39,541 $1.12 to $1.07 $43,185 1.97% 0.55% to 0.95% 25.74% to 25.24% 2008 50,013 $0.89 to $0.86 $43,461 2.20% 0.55% to 0.95% (44.17%) to (44.40%) 2007 66,055 $1.59 to $1.54 $103,079 3.12% 0.55% to 0.95% 16.56% to 16.09% ---------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK GLOBAL REAL EST, CL 2 2011 92,121 $1.97 to $0.69 $141,422 7.84% 0.55% to 1.45% (6.17%) to (7.01%) 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%) ---------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANK SM CAP VAL, CL 2 2011 78,144 $2.52 to $1.23 $153,562 0.71% 0.55% to 1.80% (4.29%) to (5.47%) 2010 91,828 $2.64 to $1.30 $193,362 0.75% 0.55% to 1.80% 27.52% to 29.36%(6) 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%) ---------------------------------------------------------------------------------------------------------------------------- GS VIT MID CAP VAL, INST 2011 99,503 $2.67 to $1.83 $248,014 0.70% 0.55% to 1.20% (6.89%) to (7.49%) 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% ---------------------------------------------------------------------------------------------------------------------------- GS VIT STRUCTD SM CAP EQ, INST 2011 4,520 $1.79 to $1.70 $7,834 0.70% 0.55% to 0.95% 0.12% to (0.27%) 2010 6,309 $1.79 to $1.71 $10,932 0.52% 0.55% to 0.95% 29.40% to 28.89% 2009 7,754 $1.38 to $1.32 $10,406 1.14% 0.55% to 0.95% 26.97% to 26.47% 2008 9,648 $1.09 to $1.05 $10,223 0.58% 0.55% to 0.95% (34.38%) to (34.65%) 2007 13,830 $1.66 to $1.60 $22,383 0.31% 0.55% to 0.95% (16.94%) to (17.28%) ---------------------------------------------------------------------------------------------------------------------------- GS VIT STRUCTD U.S. EQ, INST 2011 141,994 $1.01 to $0.92 $140,631 1.62% 0.55% to 1.45% 3.48% to 2.55% 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%) ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 79
AT DEC. 31 ------------------------------------------------------ FOR THE YEAR ENDED DEC. 31 ACCUMULATION ---------------------------------------------------------------- UNIT VALUE INVESTMENT EXPENSE RATIO UNITS LOWEST TO NET ASSETS INCOME LOWEST TO TOTAL RETURN (000S) HIGHEST (000S) RATIO(1) HIGHEST(2) LOWEST TO HIGHEST(3) ----------------------------------------------------------------------------------------------------------------------- INVESCO VI CAP APPR, SER I 2011 18,270 $0.84 to $0.80 $14,988 0.14% 0.55% to 0.95% (8.42%) to (8.78%) 2010 24,186 $0.92 to $0.88 $21,687 0.72% 0.55% to 0.95% 14.86% to 14.40% 2009 32,041 $0.80 to $0.77 $25,048 0.60% 0.55% to 0.95% 20.41% to 19.93% 2008 41,116 $0.67 to $0.64 $26,745 0.00% 0.55% to 0.95% (42.81%) to (43.04%) 2007 57,018 $1.16 to $1.13 $64,980 0.00% 0.55% to 0.95% 11.40% to 10.95% ---------------------------------------------------------------------------------------------------------------------------- INVESCO VI CAP DEV, SER I 2011 10,416 $1.72 to $0.82 $17,086 -- 0.55% to 1.20% (7.67%) to (18.32%)(8) 2010 9,737 $1.87 to $1.78 $17,620 -- 0.55% to 0.95% 18.13% to 17.66% 2009 12,959 $1.58 to $1.52 $19,894 -- 0.55% to 0.95% 41.59% to 41.02% 2008 16,730 $1.12 to $1.07 $18,148 -- 0.55% to 0.95% (47.32%) to (47.53%) 2007 23,478 $2.12 to $2.05 $48,483 -- 0.55% to 0.95% 10.23% to 9.79% ---------------------------------------------------------------------------------------------------------------------------- INVESCO VI GLOBAL HLTH, SER II 2011 21,100 $1.10 to $1.11 $23,253 -- 0.55% to 1.45% 3.16% to 2.23% 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% ---------------------------------------------------------------------------------------------------------------------------- INVESCO VI INTL GRO, SER II 2011 78,213 $1.30 to $1.10 $96,505 1.20% 0.55% to 1.45% (7.50%) to (8.33%) 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% ---------------------------------------------------------------------------------------------------------------------------- INVESCO VANK VI COMSTOCK, SER II 2011 184,225 $1.22 to $0.96 $213,630 1.37% 0.55% to 1.45% (2.64%) to (3.51%) 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%) ---------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN ENTERPRISE, SERV 2011 20,139 $0.72 to $0.69 $14,127 -- 0.55% to 0.95% (2.19%) to (2.58%) 2010 25,642 $0.74 to $0.71 $18,425 -- 0.55% to 0.95% 24.83% to 24.34% 2009 31,734 $0.59 to $0.57 $18,312 -- 0.55% to 0.95% 43.65% to 43.08% 2008 38,478 $0.41 to $0.40 $15,504 0.06% 0.55% to 0.95% (44.17%) to (44.39%) 2007 45,767 $0.74 to $0.72 $33,179 0.07% 0.55% to 0.95% 21.07% to 20.59% ---------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN GLOBAL TECH, SERV 2011 34,118 $0.51 to $1.23 $17,445 -- 0.55% to 1.20% (9.16%) to (9.75%) 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% ---------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN JANUS, SERV 2011 64,496 $0.92 to $1.08 $58,202 0.43% 0.55% to 1.80% (6.06%) to (7.23%) 2010 85,313 $0.98 to $1.17 $82,233 0.05% 0.55% to 1.80% 13.63% to 16.30%(6) 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%(4) to 5.64%(4) ---------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN OVERSEAS, SERV 2011 70,950 $1.23 to $2.02 $85,783 0.38% 0.55% to 1.20% (32.71%) to (33.14%) 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% ---------------------------------------------------------------------------------------------------------------------------- MFS INV GRO STOCK, SERV CL 2011 89,086 $0.76 to $1.12 $70,257 0.26% 0.55% to 1.45% (0.18%) to (1.07%) 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% ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 80 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 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) ----------------------------------------------------------------------------------------------------------------------- MFS NEW DIS, SERV CL 2011 47,312 $1.20 to $1.34 $55,683 -- 0.55% to 1.20% (10.98%) to (11.56%) 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% ---------------------------------------------------------------------------------------------------------------------------- MFS UTILITIES, SERV CL 2011 121,680 $2.23 to $1.22 $241,229 3.03% 0.55% to 1.80% 5.92% to 4.61% 2010 121,459 $2.11 to $1.17 $229,995 3.10% 0.55% to 1.80% 12.89% to 15.70%(6) 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% ---------------------------------------------------------------------------------------------------------------------------- MS UIF GLOBAL REAL EST, CL II 2011 61,296 $0.94 to $0.94 $57,824 3.34% 0.55% to 1.45% (10.64%) to (11.44%) 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%) ---------------------------------------------------------------------------------------------------------------------------- MS UIF MID CAP GRO, CL II 2011 47,463 $1.21 to $1.15 $58,189 0.24% 0.55% to 1.80% (7.68%) to (8.83%) 2010 45,797 $1.31 to $1.26 $60,967 -- 0.55% to 1.80% 31.54% to 25.27%(6) 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% ---------------------------------------------------------------------------------------------------------------------------- NB AMT INTL, CL S 2011 22,063 $0.81 to $0.87 $18,306 6.16% 0.55% to 1.45% (12.81%) to (13.59%) 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% ---------------------------------------------------------------------------------------------------------------------------- OPPEN GLOBAL SEC VA, SERV 2011 70,702 $1.39 to $1.06 $89,945 1.07% 0.55% to 1.80% (9.03%) to (10.15%) 2010 76,283 $1.53 to $1.18 $107,678 1.23% 0.55% to 1.80% 15.07% to 17.77%(6) 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% ---------------------------------------------------------------------------------------------------------------------------- OPPEN GLOBAL STRATEGIC INC VA, SRV 2011 601,876 $1.45 to $1.28 $836,908 2.91% 0.55% to 1.45% 0.10% to (0.80%) 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% ---------------------------------------------------------------------------------------------------------------------------- OPPEN MAIN ST SM MID CAP VA, SERV 2011 48,318 $1.41 to $1.17 $61,075 0.42% 0.55% to 1.80% (2.92%) to (4.12%) 2010 58,250 $1.45 to $1.22 $76,560 0.43% 0.55% to 1.80% 22.38% to 21.39%(6) 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%) ---------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET, ADVISOR CL 2011 192,032 $1.29 to $1.06 $245,929 7.56% 0.55% to 1.80% 1.37% to 0.11% 2010 192,371 $1.27 to $1.06 $244,031 4.92% 0.55% to 1.80% 12.39% to 6.05%(6) 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% ---------------------------------------------------------------------------------------------------------------------------- PUT VT MULTI-CAP GRO, CL IB 2011 24,077 $1.07 to $1.06 $25,684 0.27% 0.55% to 1.20% (5.60%) to (6.21%) 2010 29,434 $1.13 to $1.13 $33,346 -- 0.55% to 1.20% 13.15%(7) to 12.95%(7) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 81
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) ----------------------------------------------------------------------------------------------------------------------- ROYCE MICRO-CAP, INVEST CL 2011 11,616 $3.54 to $3.37 $39,841 2.08% 0.55% to 0.95% (12.58%) to (12.93%) 2010 15,792 $4.05 to $3.87 $62,060 1.74% 0.55% to 0.95% 29.25% to 28.73% 2009 20,125 $3.13 to $3.00 $61,288 -- 0.55% to 0.95% 57.18% to 56.55% 2008 24,388 $1.99 to $1.92 $47,373 2.28% 0.55% to 0.95% (43.58%) to (43.81%) 2007 33,734 $3.53 to $3.41 $116,412 1.33% 0.55% to 0.95% 3.41% to 2.99% ---------------------------------------------------------------------------------------------------------------------------- THIRD AVE VAL 2011 13,372 $2.29 to $2.18 $29,752 1.66% 0.55% to 0.95% (21.74%) to (22.05%) 2010 18,735 $2.93 to $2.80 $53,358 3.79% 0.55% to 0.95% 13.44% to 12.99% 2009 24,897 $2.58 to $2.48 $62,620 -- 0.55% to 0.95% 44.55% to 43.98% 2008 31,931 $1.79 to $1.72 $55,710 0.79% 0.55% to 0.95% (43.97%) to (44.19%) 2007 47,482 $3.19 to $3.08 $148,093 2.12% 0.55% to 0.95% (5.33%) to (5.71%) ---------------------------------------------------------------------------------------------------------------------------- VP AGGR, CL 2 2011 612,449 $1.08 to $1.11 $659,813 -- 0.55% to 1.80% (3.63%) to (4.82%) 2010 186,004 $1.12 to $1.16 $208,702 -- 0.55% to 1.80% 13.63%(5) to 16.17%(6) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- VP AGGR, CL 4 2011 1,479,264 $1.09 to $1.07 $1,596,561 -- 0.55% to 1.45% (3.45%) to (4.32%) 2010 1,623,318 $1.12 to $1.12 $1,821,118 -- 0.55% to 1.45% 13.63%(5) to 12.96%(5) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- VP CONSERV, CL 2 2011 593,897 $1.08 to $1.06 $634,319 -- 0.55% to 1.80% 2.67% to 1.40% 2010 176,204 $1.05 to $1.05 $184,094 -- 0.55% to 1.80% 5.56%(5) to 4.56%(6) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- VP CONSERV, CL 4 2011 1,512,637 $1.08 to $1.06 $1,616,062 -- 0.55% to 1.45% 2.67% to 1.75% 2010 1,349,528 $1.05 to $1.04 $1,409,946 -- 0.55% to 1.45% 5.56%(5) to 4.94%(5) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- VP DAVIS NY VENTURE, CL 3 2011 49,565 $0.96 to $0.93 $46,968 -- 0.55% to 1.45% (4.03%) to (4.89%) 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% ---------------------------------------------------------------------------------------------------------------------------- VP GS MID CAP VAL, CL 3 2011 10,544 $1.32 to $1.07 $13,013 -- 0.55% to 1.45% (6.95%) to (7.79%) 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% ---------------------------------------------------------------------------------------------------------------------------- VP MOD, CL 2 2011 4,072,928 $1.09 to $1.09 $4,423,893 -- 0.55% to 1.80% (0.28%) to (1.51%) 2010 1,584,363 $1.10 to $1.10 $1,732,993 -- 0.55% to 1.80% 9.82%(5) to 10.43%(6) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- VP MOD, CL 4 2011 9,718,867 $1.09 to $1.08 $10,569,864 -- 0.55% to 1.45% (0.19%) to (1.08%) 2010 10,566,949 $1.10 to $1.09 $11,557,839 -- 0.55% to 1.45% 9.82%(5) to 9.17%(5) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 82 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 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 AGGR, CL 2 2011 2,443,394 $1.09 to $1.10 $2,654,302 -- 0.55% to 1.80% (1.97%) to (3.18%) 2010 891,747 $1.11 to $1.13 $991,528 -- 0.55% to 1.80% 11.61%(5) to 13.26%(6) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- VP MOD AGGR, CL 4 2011 5,802,273 $1.09 to $1.08 $6,313,026 -- 0.55% to 1.45% (1.88%) to (2.76%) 2010 6,431,039 $1.12 to $1.11 $7,156,739 -- 0.55% to 1.45% 11.71%(5) to 11.05%(5) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- VP MOD CONSERV, CL 2 2011 1,249,525 $1.09 to $1.07 $1,348,503 -- 0.55% to 1.80% 1.30% to 0.05% 2010 486,156 $1.07 to $1.07 $520,096 -- 0.55% to 1.80% 7.42%(5) to 7.37%(6) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- VP MOD CONSERV, CL 4 2011 3,079,882 $1.09 to $1.07 $3,330,281 -- 0.55% to 1.45% 1.39% to 0.48% 2010 3,111,865 $1.07 to $1.07 $3,332,020 -- 0.55% to 1.45% 7.52%(5) to 6.89%(5) 2009 -- -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- -- 2007 -- -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------- VP PTNRS SM CAP VAL, CL 3 2011 86,378 $1.98 to $1.10 $151,348 -- 0.55% to 1.45% (4.98%) to (5.83%) 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%) ---------------------------------------------------------------------------------------------------------------------------- WANGER INTL 2011 167,899 $2.27 to $1.16 $323,958 4.78% 0.55% to 1.45% (15.09%) to (15.85%) 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% ---------------------------------------------------------------------------------------------------------------------------- WANGER USA 2011 200,494 $2.01 to $1.08 $349,684 -- 0.55% to 1.45% (4.02%) to (4.88%) 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% ---------------------------------------------------------------------------------------------------------------------------- WF ADV VT INDEX ASSET ALLOC, CL 2 2011 23,246 $1.34 to $1.32 $30,454 2.98% 0.55% to 1.20% 5.90% to 5.22% 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% ---------------------------------------------------------------------------------------------------------------------------- WF ADV VT INTL EQ, CL 2 2011 48,128 $1.23 to $0.85 $53,181 0.11% 0.55% to 1.45% (13.39%) to (14.16%) 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% ---------------------------------------------------------------------------------------------------------------------------- WF ADV VT SM CAP GRO, CL 2 2011 51,889 $1.43 to $1.19 $71,998 -- 0.55% to 1.80% (5.12%) to (6.29%) 2010 68,151 $1.51 to $1.27 $100,081 -- 0.55% to 1.80% 26.08% to 26.74%(6) 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% ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 83 (1)These amounts represent the dividends, excluding distributions of capital gains, received by the division from the underlying fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude variable account expenses that result in direct reductions in the unit values. The recognition of investment income by the division is affected by the timing of the declaration of dividends by the underlying fund in which the division invests. These ratios are annualized for periods less than one year. (2)These ratios represent the annualized contract expenses of the separate account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund are excluded. (3)These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. Although the total return is presented as a range of minimum to maximum values, based on the subaccounts representing the minimum and maximum expense ratio amounts, some individual subaccount total returns are not within the ranges presented due to the introduction of new subaccounts during the year and other market factors. (4)New subaccount operations commenced on May 1, 2007. (5)New subaccount operations commenced on May 7, 2010. (6)New subaccount operations commenced on July 19, 2010. (7)New subaccount operations commenced on Sept. 24, 2010. (8)New subaccount operations commenced on April 29, 2011. -------------------------------------------------------------------------------- 84 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 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 the parentheses.
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 --------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO (CLASS B) (11/1/2005) Accumulation unit value at beginning of period $1.28 $1.08 $0.71 $1.36 $1.14 $1.06 $1.00 -- -- -- Accumulation unit value at end of period $0.97 $1.28 $1.08 $0.71 $1.36 $1.14 $1.06 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 60 76 69 49 61 653 144 -- -- -- --------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (8/13/2001) Accumulation unit value at beginning of period $1.08 $0.97 $0.81 $1.37 $1.31 $1.13 $1.09 $0.98 $0.75 $0.97 Accumulation unit value at end of period $1.14 $1.08 $0.97 $0.81 $1.37 $1.31 $1.13 $1.09 $0.98 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 314 321 388 452 1,081 1,374 1,186 726 969 310 --------------------------------------------------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (8/13/2001) Accumulation unit value at beginning of period $1.72 $1.66 $1.24 $2.68 $2.55 $1.90 $1.64 $1.32 $0.92 $0.98 Accumulation unit value at end of period $1.38 $1.72 $1.66 $1.24 $2.68 $2.55 $1.90 $1.64 $1.32 $0.92 Number of accumulation units outstanding at end of period (000 omitted) 982 1,076 1,925 3,352 3,600 3,592 2,607 984 472 606 --------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP INTERNATIONAL, CLASS I (9/15/1999) Accumulation unit value at beginning of period $1.27 $1.13 $0.85 $1.54 $1.32 $1.06 $0.94 $0.82 $0.66 $0.84 Accumulation unit value at end of period $1.11 $1.27 $1.13 $0.85 $1.54 $1.32 $1.06 $0.94 $0.82 $0.66 Number of accumulation units outstanding at end of period (000 omitted) 4 10 10 20 155 352 594 675 517 634 --------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (5/1/2007) Accumulation unit value at beginning of period $1.04 $0.88 $0.68 $0.90 $1.00 -- -- -- -- -- Accumulation unit value at end of period $1.02 $1.04 $0.88 $0.68 $0.90 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 101 153 1,289 1,327 1,710 -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (11/1/2005) Accumulation unit value at beginning of period $1.07 $0.93 $0.69 $1.20 $1.00 $1.04 $1.00 -- -- -- Accumulation unit value at end of period $1.07 $1.07 $0.93 $0.69 $1.20 $1.00 $1.04 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 98 73 91 72 187 2,939 618 -- -- -- --------------------------------------------------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS I (9/15/1999) Accumulation unit value at beginning of period $1.75 $1.55 $1.30 $1.79 $1.89 $1.61 $1.54 $1.35 $1.06 $1.21 Accumulation unit value at end of period $1.76 $1.75 $1.55 $1.30 $1.79 $1.89 $1.61 $1.54 $1.35 $1.06 Number of accumulation units outstanding at end of period (000 omitted) 249 232 259 524 578 747 1,037 1,067 904 766 --------------------------------------------------------------------------------------------------------------------------- CALVERT VP SRI BALANCED PORTFOLIO (5/1/2000) Accumulation unit value at beginning of period $1.10 $0.99 $0.79 $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 $0.89 Accumulation unit value at end of period $1.14 $1.10 $0.99 $0.79 $1.16 $1.13 $1.05 $1.00 $0.93 $0.78 Number of accumulation units outstanding at end of period (000 omitted) 6 6 10 24 21 18 5 54 8 8 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - BALANCED FUND (CLASS 3) (9/15/1999) Accumulation unit value at beginning of period $1.22 $1.09 $0.88 $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 $0.94 Accumulation unit value at end of period $1.24 $1.22 $1.09 $0.88 $1.26 $1.25 $1.10 $1.06 $0.97 $0.81 Number of accumulation units outstanding at end of period (000 omitted) 580 634 733 602 372 459 623 257 221 120 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - CASH MANAGEMENT FUND (CLASS 3) (9/15/1999) Accumulation unit value at beginning of period $1.23 $1.24 $1.25 $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 $1.10 Accumulation unit value at end of period $1.23 $1.23 $1.24 $1.25 $1.22 $1.17 $1.13 $1.11 $1.11 $1.11 Number of accumulation units outstanding at end of period (000 omitted) 514 613 2,492 10,988 11,779 8,286 4,504 2,098 447 3,911 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (CLASS 3) (9/15/1999) Accumulation unit value at beginning of period $1.63 $1.51 $1.33 $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 $1.14 Accumulation unit value at end of period $1.73 $1.63 $1.51 $1.33 $1.43 $1.36 $1.31 $1.29 $1.24 $1.20 Number of accumulation units outstanding at end of period (000 omitted) 2,923 3,828 10,140 8,140 9,540 7,272 3,619 2,145 1,691 762 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (CLASS 3) (9/15/1999) Accumulation unit value at beginning of period $1.71 $1.47 $1.16 $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 $1.02 Accumulation unit value at end of period $1.62 $1.71 $1.47 $1.16 $1.96 $1.83 $1.53 $1.36 $1.16 $0.82 Number of accumulation units outstanding at end of period (000 omitted) 1,770 2,153 7,610 8,565 9,289 9,434 5,165 3,041 1,239 1,262 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - DYNAMIC EQUITY FUND (CLASS 3) (9/15/1999) Accumulation unit value at beginning of period $0.82 $0.70 $0.57 $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 $0.76 Accumulation unit value at end of period $0.86 $0.82 $0.70 $0.57 $0.99 $0.97 $0.85 $0.80 $0.76 $0.59 Number of accumulation units outstanding at end of period (000 omitted) 464 565 877 1,397 1,682 2,453 3,121 1,484 172 202 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - EMERGING MARKETS OPPORTUNITY FUND (CLASS 3) (5/1/2000) Accumulation unit value at beginning of period $2.75 $2.31 $1.33 $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 $0.73 Accumulation unit value at end of period $2.16 $2.75 $2.31 $1.33 $2.90 $2.11 $1.58 $1.19 $0.96 $0.69 Number of accumulation units outstanding at end of period (000 omitted) 843 1,028 1,522 2,437 1,993 2,144 1,491 475 115 277 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - GLOBAL BOND FUND (CLASS 3) (9/15/1999) Accumulation unit value at beginning of period $1.82 $1.72 $1.55 $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 $1.04 Accumulation unit value at end of period $1.90 $1.82 $1.72 $1.55 $1.56 $1.46 $1.38 $1.46 $1.33 $1.18 Number of accumulation units outstanding at end of period (000 omitted) 1,122 1,599 3,215 2,861 3,115 2,645 1,377 741 714 251 ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 85
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (CLASS 3) (9/13/2004) Accumulation unit value at beginning of period $1.24 $1.20 $1.13 $1.13 $1.06 $1.05 $1.03 $1.00 -- -- Accumulation unit value at end of period $1.36 $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) 1,132 1,988 5,705 2,307 2,713 2,959 1,455 5,004 -- -- --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (CLASS 3) (9/15/1999) Accumulation unit value at beginning of period $1.82 $1.61 $1.05 $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 $0.95 Accumulation unit value at end of period $1.91 $1.82 $1.61 $1.05 $1.41 $1.39 $1.26 $1.22 $1.10 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 695 706 639 713 1,605 1,925 2,397 2,886 4,230 1,480 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (CLASS 3) (9/13/2004) Accumulation unit value at beginning of period $1.51 $1.34 $0.95 $1.17 $1.15 $1.07 $1.04 $1.00 -- -- Accumulation unit value at end of period $1.59 $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) 1,306 1,132 5,111 2,233 2,599 2,358 493 -- -- -- --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (CLASS 3) (9/15/1999) Accumulation unit value at beginning of period $1.09 $0.96 $0.76 $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 $0.67 Accumulation unit value at end of period $0.95 $1.09 $0.96 $0.76 $1.28 $1.14 $0.92 $0.82 $0.70 $0.55 Number of accumulation units outstanding at end of period (000 omitted) 363 399 910 1,080 1,307 1,343 1,252 848 143 488 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - LARGE CAP GROWTH FUND (CLASS 3) (9/15/1999) Accumulation unit value at beginning of period $0.66 $0.57 $0.42 $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 $0.64 Accumulation unit value at end of period $0.64 $0.66 $0.57 $0.42 $0.75 $0.73 $0.67 $0.62 $0.57 $0.47 Number of accumulation units outstanding at end of period (000 omitted) 1,358 1,192 2,260 2,601 3,768 6,049 6,193 2,153 1,664 1,064 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - MARSICO GROWTH FUND (CLASS 1) (5/1/2006) Accumulation unit value at beginning of period $1.10 $0.91 $0.72 $1.20 $1.02 $1.00 -- -- -- -- Accumulation unit value at end of period $1.06 $1.10 $0.91 $0.72 $1.20 $1.02 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 767 699 7,497 6,506 5,466 2,834 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - MARSICO INTERNATIONAL OPPORTUNITIES FUND (CLASS 2) (5/1/2006) Accumulation unit value at beginning of period $1.01 $0.89 $0.65 $1.27 $1.07 $1.00 -- -- -- -- Accumulation unit value at end of period $0.84 $1.01 $0.89 $0.65 $1.27 $1.07 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 509 459 810 730 772 2,194 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - MID CAP GROWTH OPPORTUNITY FUND (CLASS 3) (5/1/2001) Accumulation unit value at beginning of period $1.58 $1.26 $0.78 $1.41 $1.25 $1.26 $1.15 $1.06 $0.87 $1.01 Accumulation unit value at end of period $1.34 $1.58 $1.26 $0.78 $1.41 $1.25 $1.26 $1.15 $1.06 $0.87 Number of accumulation units outstanding at end of period (000 omitted) 124 238 363 242 268 450 655 523 578 328 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - MID CAP VALUE OPPORTUNITY FUND (CLASS 3) (5/2/2005) Accumulation unit value at beginning of period $1.40 $1.15 $0.82 $1.50 $1.37 $1.20 $1.00 -- -- -- Accumulation unit value at end of period $1.28 $1.40 $1.15 $0.82 $1.50 $1.37 $1.20 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 467 338 1,292 1,658 1,406 2,575 115 -- -- -- --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - S&P 500 INDEX FUND (CLASS 3) (5/1/2000) Accumulation unit value at beginning of period $0.94 $0.83 $0.66 $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 $0.79 Accumulation unit value at end of period $0.95 $0.94 $0.83 $0.66 $1.05 $1.01 $0.88 $0.85 $0.77 $0.61 Number of accumulation units outstanding at end of period (000 omitted) 127 314 741 1,447 1,022 1,170 2,054 1,958 1,381 973 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - SELECT LARGE-CAP VALUE FUND (CLASS 3) (2/4/2004) Accumulation unit value at beginning of period $1.21 $1.01 $0.81 $1.34 $1.35 $1.14 $1.10 $1.00 -- -- Accumulation unit value at end of period $1.18 $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) 198 120 195 67 67 184 92 65 -- -- --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - SELECT SMALLER-CAP VALUE FUND (CLASS 3) (9/15/1999) Accumulation unit value at beginning of period $1.82 $1.44 $1.04 $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 $1.08 Accumulation unit value at end of period $1.66 $1.82 $1.44 $1.04 $1.70 $1.79 $1.61 $1.54 $1.31 $0.89 Number of accumulation units outstanding at end of period (000 omitted) 152 71 57 113 214 333 514 779 660 393 --------------------------------------------------------------------------------------------------------------------------- COLUMBIA VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (CLASS 3) (9/15/1999) Accumulation unit value at beginning of period $1.39 $1.36 $1.30 $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 $1.15 Accumulation unit value at end of period $1.41 $1.39 $1.36 $1.30 $1.34 $1.28 $1.24 $1.23 $1.22 $1.21 Number of accumulation units outstanding at end of period (000 omitted) 1,843 1,670 825 1,394 817 493 688 870 1,097 1,275 --------------------------------------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (5/1/2006) Accumulation unit value at beginning of period $1.03 $0.89 $0.75 $1.13 $0.97 $1.00 -- -- -- -- Accumulation unit value at end of period $0.90 $1.03 $0.89 $0.75 $1.13 $0.97 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 617 533 605 506 677 1,600 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (5/1/2006) Accumulation unit value at beginning of period $1.18 $1.08 $0.76 $1.04 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.20 $1.18 $1.08 $0.76 $1.04 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,730 1,433 2,787 2,025 2,116 2,567 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (5/1/2006) Accumulation unit value at beginning of period $1.08 $0.93 $0.69 $1.21 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.04 $1.08 $0.93 $0.69 $1.21 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 2,496 2,532 4,368 8,518 7,443 6,582 -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 86 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 --------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP GROWTH & INCOME PORTFOLIO SERVICE CLASS (9/15/1999) Accumulation unit value at beginning of period $1.09 $0.95 $0.75 $1.30 $1.17 $1.04 $0.97 $0.92 $0.75 $0.91 Accumulation unit value at end of period $1.10 $1.09 $0.95 $0.75 $1.30 $1.17 $1.04 $0.97 $0.92 $0.75 Number of accumulation units outstanding at end of period (000 omitted) 87 92 148 226 676 754 1,103 1,370 1,249 1,172 --------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS (9/15/1999) Accumulation unit value at beginning of period $3.94 $3.08 $2.21 $3.68 $3.20 $2.86 $2.43 $1.96 $1.42 $1.59 Accumulation unit value at end of period $3.50 $3.94 $3.08 $2.21 $3.68 $3.20 $2.86 $2.43 $1.96 $1.42 Number of accumulation units outstanding at end of period (000 omitted) 162 195 298 492 591 664 915 1,023 984 862 --------------------------------------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS (9/15/1999) Accumulation unit value at beginning of period $1.26 $1.12 $0.89 $1.59 $1.37 $1.16 $0.98 $0.87 $0.61 $0.77 Accumulation unit value at end of period $1.03 $1.26 $1.12 $0.89 $1.59 $1.37 $1.16 $0.98 $0.87 $0.61 Number of accumulation units outstanding at end of period (000 omitted) 20 20 28 48 92 298 605 429 144 82 --------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (9/15/1999) Accumulation unit value at beginning of period $2.10 $1.75 $1.48 $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 $1.35 Accumulation unit value at end of period $1.97 $2.10 $1.75 $1.48 $2.58 $3.27 $2.73 $2.42 $1.85 $1.37 Number of accumulation units outstanding at end of period (000 omitted) 163 203 232 262 688 836 667 487 349 205 --------------------------------------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (9/15/1999) Accumulation unit value at beginning of period $2.64 $2.07 $1.61 $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 $1.35 Accumulation unit value at end of period $2.52 $2.64 $2.07 $1.61 $2.42 $2.49 $2.14 $1.98 $1.61 $1.22 Number of accumulation units outstanding at end of period (000 omitted) 212 215 352 465 576 738 593 414 242 282 --------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT MID CAP VALUE FUND - INSTITUTIONAL SHARES (9/15/1999) Accumulation unit value at beginning of period $2.86 $2.30 $1.74 $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 $1.38 Accumulation unit value at end of period $2.67 $2.86 $2.30 $1.74 $2.78 $2.71 $2.34 $2.09 $1.67 $1.31 Number of accumulation units outstanding at end of period (000 omitted) 611 738 922 1,060 2,008 2,339 1,930 834 639 450 --------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED SMALL CAP EQUITY FUND - INSTITUTIONAL SHARES (9/15/1999) Accumulation unit value at beginning of period $1.79 $1.38 $1.09 $1.66 $2.00 $1.79 $1.69 $1.46 $1.01 $1.19 Accumulation unit value at end of period $1.79 $1.79 $1.38 $1.09 $1.66 $2.00 $1.79 $1.69 $1.46 $1.01 Number of accumulation units outstanding at end of period (000 omitted) 2 4 9 11 12 114 119 150 104 87 --------------------------------------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (9/15/1999) Accumulation unit value at beginning of period $0.98 $0.87 $0.72 $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 $0.87 Accumulation unit value at end of period $1.01 $0.98 $0.87 $0.72 $1.15 $1.18 $1.05 $0.99 $0.87 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 592 745 826 1,128 1,678 2,499 3,019 1,522 735 694 --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL APPRECIATION FUND, SERIES I SHARES (9/15/1999) Accumulation unit value at beginning of period $0.92 $0.80 $0.67 $1.16 $1.05 $0.99 $0.91 $0.86 $0.67 $0.89 Accumulation unit value at end of period $0.84 $0.92 $0.80 $0.67 $1.16 $1.05 $0.99 $0.91 $0.86 $0.67 Number of accumulation units outstanding at end of period (000 omitted) 257 279 280 335 310 380 910 866 867 1,024 --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. CAPITAL DEVELOPMENT FUND, SERIES I SHARES (9/15/1999) Accumulation unit value at beginning of period $1.87 $1.58 $1.12 $2.12 $1.92 $1.66 $1.52 $1.32 $0.98 $1.26 Accumulation unit value at end of period $1.72 $1.87 $1.58 $1.12 $2.12 $1.92 $1.66 $1.52 $1.32 $0.98 Number of accumulation units outstanding at end of period (000 omitted) 63 61 74 118 134 212 283 298 274 302 --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (5/1/2006) Accumulation unit value at beginning of period $1.07 $1.02 $0.81 $1.14 $1.03 $1.00 -- -- -- -- Accumulation unit value at end of period $1.10 $1.07 $1.02 $0.81 $1.14 $1.03 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 103 132 403 73 115 1,114 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- INVESCO V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (11/1/2005) Accumulation unit value at beginning of period $1.40 $1.25 $0.93 $1.58 $1.39 $1.09 $1.00 -- -- -- Accumulation unit value at end of period $1.30 $1.40 $1.25 $0.93 $1.58 $1.39 $1.09 -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 294 380 2,658 2,794 1,479 105 5 -- -- -- --------------------------------------------------------------------------------------------------------------------------- INVESCO VAN KAMPEN V.I. COMSTOCK FUND, SERIES II SHARES (2/4/2004) Accumulation unit value at beginning of period $1.26 $1.09 $0.85 $1.34 $1.38 $1.19 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.22 $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) 788 719 2,639 3,700 3,639 4,892 3,642 641 -- -- --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES ENTERPRISE PORTFOLIO: SERVICE SHARES (5/1/2000) Accumulation unit value at beginning of period $0.74 $0.59 $0.41 $0.74 $0.61 $0.54 $0.49 $0.41 $0.30 $0.42 Accumulation unit value at end of period $0.72 $0.74 $0.59 $0.41 $0.74 $0.61 $0.54 $0.49 $0.41 $0.30 Number of accumulation units outstanding at end of period (000 omitted) 34 34 30 30 51 125 125 144 215 246 --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES (5/1/2000) Accumulation unit value at beginning of period $0.57 $0.46 $0.29 $0.53 $0.43 $0.41 $0.37 $0.37 $0.25 $0.43 Accumulation unit value at end of period $0.51 $0.57 $0.46 $0.29 $0.53 $0.43 $0.41 $0.37 $0.37 $0.25 Number of accumulation units outstanding at end of period (000 omitted) 111 100 41 22 37 180 200 333 426 343 --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES JANUS PORTFOLIO: SERVICE SHARES (5/1/2007) Accumulation unit value at beginning of period $0.98 $0.86 $0.63 $1.06 $1.00 -- -- -- -- -- Accumulation unit value at end of period $0.92 $0.98 $0.86 $0.63 $1.06 -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 461 568 6,880 6,240 5,448 -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 87
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 --------------------------------------------------------------------------------------------------------------------------- JANUS ASPEN SERIES OVERSEAS PORTFOLIO: SERVICE SHARES (5/1/2000) Accumulation unit value at beginning of period $1.82 $1.47 $0.82 $1.73 $1.36 $0.93 $0.71 $0.60 $0.45 $0.61 Accumulation unit value at end of period $1.23 $1.82 $1.47 $0.82 $1.73 $1.36 $0.93 $0.71 $0.60 $0.45 Number of accumulation units outstanding at end of period (000 omitted) 262 226 395 275 272 231 250 132 295 875 --------------------------------------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (5/1/2000) Accumulation unit value at beginning of period $0.76 $0.68 $0.49 $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 $0.68 Accumulation unit value at end of period $0.76 $0.76 $0.68 $0.49 $0.79 $0.71 $0.67 $0.64 $0.59 $0.49 Number of accumulation units outstanding at end of period (000 omitted) 186 178 406 260 317 481 640 522 874 785 --------------------------------------------------------------------------------------------------------------------------- MFS(R) NEW DISCOVERY SERIES - SERVICE CLASS (5/1/2000) Accumulation unit value at beginning of period $1.35 $1.00 $0.62 $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 $0.90 Accumulation unit value at end of period $1.20 $1.35 $1.00 $0.62 $1.02 $1.01 $0.90 $0.86 $0.81 $0.61 Number of accumulation units outstanding at end of period (000 omitted) 131 102 190 92 130 243 558 576 622 485 --------------------------------------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (8/13/2001) Accumulation unit value at beginning of period $2.11 $1.86 $1.41 $2.28 $1.80 $1.38 $1.19 $0.92 $0.68 $0.89 Accumulation unit value at end of period $2.23 $2.11 $1.86 $1.41 $2.28 $1.80 $1.38 $1.19 $0.92 $0.68 Number of accumulation units outstanding at end of period (000 omitted) 543 500 562 821 765 1,065 588 211 139 139 --------------------------------------------------------------------------------------------------------------------------- MORGAN STANLEY UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (5/1/2006) Accumulation unit value at beginning of period $1.06 $0.87 $0.62 $1.12 $1.23 $1.00 -- -- -- -- Accumulation unit value at end of period $0.94 $1.06 $0.87 $0.62 $1.12 $1.23 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 467 451 1,794 1,961 1,463 1,473 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- MORGAN STANLEY UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (5/1/2006) Accumulation unit value at beginning of period $1.31 $1.00 $0.64 $1.21 $0.99 $1.00 -- -- -- -- Accumulation unit value at end of period $1.21 $1.31 $1.00 $0.64 $1.21 $0.99 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 300 317 356 270 140 1,068 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (5/1/2006) Accumulation unit value at beginning of period $0.93 $0.76 $0.57 $1.07 $1.05 $1.00 -- -- -- -- Accumulation unit value at end of period $0.81 $0.93 $0.76 $0.57 $1.07 $1.05 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 154 142 1,718 1,971 2,116 1,957 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (2/4/2004) Accumulation unit value at beginning of period $1.53 $1.33 $0.96 $1.62 $1.53 $1.31 $1.16 $1.00 -- -- Accumulation unit value at end of period $1.39 $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) 429 524 604 777 1,099 1,309 756 158 -- -- --------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL STRATEGIC INCOME FUND/VA, SERVICE SHARES (2/4/2004) Accumulation unit value at beginning of period $1.45 $1.27 $1.08 $1.27 $1.16 $1.09 $1.07 $1.00 -- -- Accumulation unit value at end of period $1.45 $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) 3,125 3,938 8,634 8,498 9,223 6,331 3,173 403 -- -- --------------------------------------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL- & MID-CAP FUND(R)/VA, SERVICE SHARES (2/4/2004) Accumulation unit value at beginning of period $1.45 $1.18 $0.87 $1.41 $1.44 $1.26 $1.16 $1.00 -- -- Accumulation unit value at end of period $1.41 $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) 394 368 717 646 676 773 643 432 -- -- --------------------------------------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (5/1/2006) Accumulation unit value at beginning of period $1.27 $1.13 $0.94 $1.12 $1.04 $1.00 -- -- -- -- Accumulation unit value at end of period $1.29 $1.27 $1.13 $0.94 $1.12 $1.04 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 700 590 3,431 4,628 4,555 4,105 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- PUTNAM VT MULTI-CAP GROWTH FUND - CLASS IB SHARES (9/24/2010) Accumulation unit value at beginning of period $1.13 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.07 $1.13 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 123 139 -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- ROYCE CAPITAL FUND - MICRO-CAP PORTFOLIO, INVESTMENT CLASS (9/15/1999) Accumulation unit value at beginning of period $4.05 $3.13 $1.99 $3.53 $3.41 $2.83 $2.55 $2.26 $1.52 $1.75 Accumulation unit value at end of period $3.54 $4.05 $3.13 $1.99 $3.53 $3.41 $2.83 $2.55 $2.26 $1.52 Number of accumulation units outstanding at end of period (000 omitted) 34 39 66 81 358 405 539 591 516 453 --------------------------------------------------------------------------------------------------------------------------- THIRD AVENUE VALUE PORTFOLIO (9/21/1999) Accumulation unit value at beginning of period $2.93 $2.58 $1.79 $3.19 $3.37 $2.92 $2.57 $2.15 $1.52 $1.71 Accumulation unit value at end of period $2.29 $2.93 $2.58 $1.79 $3.19 $3.37 $2.92 $2.57 $2.15 $1.52 Number of accumulation units outstanding at end of period (000 omitted) 33 38 62 123 175 287 371 347 311 279 --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - AGGRESSIVE PORTFOLIO (CLASS 2) (5/7/2010) Accumulation unit value at beginning of period $1.12 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.08 $1.12 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,257 395 -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - AGGRESSIVE PORTFOLIO (CLASS 4) (5/7/2010) Accumulation unit value at beginning of period $1.12 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.09 $1.12 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 18,860 26,354 -- -- -- -- -- -- -- -- ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- 88 RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT
VARIABLE ACCOUNT CHARGES OF 0.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - CONSERVATIVE PORTFOLIO (CLASS 2) (5/7/2010) Accumulation unit value at beginning of period $1.05 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.08 $1.05 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,443 1,174 -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - CONSERVATIVE PORTFOLIO (CLASS 4) (5/7/2010) Accumulation unit value at beginning of period $1.05 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.08 $1.05 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,175 8,371 -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - DAVIS NEW YORK VENTURE FUND (CLASS 3) (5/1/2006) Accumulation unit value at beginning of period $1.00 $0.90 $0.69 $1.13 $1.09 $1.00 -- -- -- -- Accumulation unit value at end of period $0.96 $1.00 $0.90 $0.69 $1.13 $1.09 -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 264 276 7,045 4,641 3,570 3,666 -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - GOLDMAN SACHS MID CAP VALUE FUND (CLASS 3) (2/4/2004) Accumulation unit value at beginning of period $1.42 $1.17 $0.86 $1.37 $1.30 $1.13 $1.13 $1.00 -- -- Accumulation unit value at end of period $1.32 $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) 127 115 176 74 115 77 235 182 -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - MODERATE PORTFOLIO (CLASS 2) (5/7/2010) Accumulation unit value at beginning of period $1.10 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.09 $1.10 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 4,194 507 -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - MODERATE PORTFOLIO (CLASS 4) (5/7/2010) Accumulation unit value at beginning of period $1.10 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.09 $1.10 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 21,448 21,627 -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - MODERATELY AGGRESSIVE PORTFOLIO (CLASS 2) (5/7/2010) Accumulation unit value at beginning of period $1.11 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.09 $1.11 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,064 2,007 -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - MODERATELY AGGRESSIVE PORTFOLIO (CLASS 4) (5/7/2010) Accumulation unit value at beginning of period $1.12 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.09 $1.12 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 26,294 23,294 -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - MODERATELY CONSERVATIVE PORTFOLIO (CLASS 2) (5/7/2010) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.09 $1.07 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 1,471 -- -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - MODERATELY CONSERVATIVE PORTFOLIO (CLASS 4) (5/7/2010) Accumulation unit value at beginning of period $1.07 $1.00 -- -- -- -- -- -- -- -- Accumulation unit value at end of period $1.09 $1.07 -- -- -- -- -- -- -- -- Number of accumulation units outstanding at end of period (000 omitted) 9,103 5,162 -- -- -- -- -- -- -- -- --------------------------------------------------------------------------------------------------------------------------- VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND (CLASS 3) (8/14/2001) Accumulation unit value at beginning of period $2.08 $1.68 $1.24 $1.82 $1.92 $1.61 $1.53 $1.28 $0.93 $1.07 Accumulation unit value at end of period $1.98 $2.08 $1.68 $1.24 $1.82 $1.92 $1.61 $1.53 $1.28 $0.93 Number of accumulation units outstanding at end of period (000 omitted) 542 707 3,210 3,353 3,487 2,495 2,068 860 982 627 --------------------------------------------------------------------------------------------------------------------------- WANGER INTERNATIONAL (9/15/1999) Accumulation unit value at beginning of period $2.67 $2.15 $1.44 $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 $0.85 Accumulation unit value at end of period $2.27 $2.67 $2.15 $1.44 $2.67 $2.31 $1.69 $1.40 $1.08 $0.73 Number of accumulation units outstanding at end of period (000 omitted) 992 1,120 2,334 2,433 2,932 3,471 2,814 1,701 1,136 1,484 --------------------------------------------------------------------------------------------------------------------------- WANGER USA (9/15/1999) Accumulation unit value at beginning of period $2.09 $1.71 $1.21 $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 $1.17 Accumulation unit value at end of period $2.01 $2.09 $1.71 $1.21 $2.01 $1.92 $1.79 $1.62 $1.37 $0.96 Number of accumulation units outstanding at end of period (000 omitted) 895 1,057 2,350 3,272 3,659 3,852 2,709 1,415 1,250 847 --------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INDEX ASSET ALLOCATION FUND - CLASS 2 (5/1/2001) Accumulation unit value at beginning of period $1.26 $1.12 $0.98 $1.38 $1.29 $1.16 $1.11 $1.02 $0.84 $0.97 Accumulation unit value at end of period $1.34 $1.26 $1.12 $0.98 $1.38 $1.29 $1.16 $1.11 $1.02 $0.84 Number of accumulation units outstanding at end of period (000 omitted) 2 2 4 4 7 31 355 91 66 29 --------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT INTERNATIONAL EQUITY FUND - CLASS 2 (2/4/2004) Accumulation unit value at beginning of period $1.43 $1.23 $1.07 $1.84 $1.62 $1.32 $1.15 $1.00 -- -- Accumulation unit value at end of period $1.23 $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) 311 337 2,398 408 500 669 661 76 -- -- --------------------------------------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND - CLASS 2 (5/1/2001) Accumulation unit value at beginning of period $1.51 $1.20 $0.79 $1.35 $1.20 $0.98 $0.93 $0.82 $0.58 $0.94 Accumulation unit value at end of period $1.43 $1.51 $1.20 $0.79 $1.35 $1.20 $0.98 $0.93 $0.82 $0.58 Number of accumulation units outstanding at end of period (000 omitted) 160 198 225 258 231 84 35 10 10 6 ---------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------- RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY - BAND 3 - 2011 ANNUAL REPORT 89 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE BOARD OF DIRECTORS AND SHAREHOLDER OF RIVERSOURCE LIFE INSURANCE COMPANY: We have audited the accompanying consolidated balance sheet of RiverSource Life Insurance Company and its subsidiaries (the "Company") as of December 31, 2011 and the related consolidated statements of income, shareholder's equity, and cash flows for the year ended December 31, 2011. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit 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. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of RiverSource Life Insurance Company at December 31, 2011, and the results of its operations and its cash flows for the year ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America. /s/ PricewaterhouseCoopers LLP Minneapolis, Minnesota February 24, 2012 F-1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS RIVERSOURCE LIFE INSURANCE COMPANY We have audited the accompanying consolidated balance sheet of RiverSource Life Insurance Company, (a wholly owned subsidiary of Ameriprise Financial, Inc.) (the Company) as of December 31, 2010, and the related consolidated statements of income, shareholder's equity, and cash flows for each of the two years in the period ended December 31, 2010. These financial statements are the responsibility of the 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 audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. 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 the consolidated results of its operations and its cash flows for each of the two 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. /s/ Ernst & Young LLP Minneapolis, Minnesota February 23, 2011 F-2 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS (IN MILLIONS, EXCEPT SHARE AMOUNTS)
DECEMBER 31, 2011 2010 ASSETS Investments: Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2011, $24,398; 2010, $24,818) $ 26,577 $ 26,442 Common stocks, at fair value (cost: 2011, $1; 2010, $1) 2 2 Commercial mortgage loans, at cost (less allowance for loan losses: 2011, $32; 2010, $36) 2,473 2,470 Policy loans 739 729 Other investments 730 496 ------------------------------------------------------------------------------------------------- Total investments 30,521 30,139 Cash and cash equivalents 828 76 Restricted cash 26 66 Reinsurance recoverables 1,953 1,829 Other receivables 162 166 Accrued investment income 307 309 Deferred acquisition costs 4,367 4,578 Deferred sales inducement costs 464 545 Other assets 3,578 1,123 Separate account assets 63,174 63,795 ------------------------------------------------------------------------------------------------- Total assets $105,380 $102,626 ================================================================================================= LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities: Future policy benefits $ 31,182 $ 29,680 Policy claims and other policyholders' funds 121 134 Deferred income taxes, net 620 514 Borrowings under repurchase agreements 504 397 Line of credit with Ameriprise Financial, Inc. 300 3 Other liabilities 3,607 1,555 Separate account liabilities 63,174 63,795 ------------------------------------------------------------------------------------------------- Total liabilities 99,508 96,078 ------------------------------------------------------------------------------------------------- Shareholder's equity: Common stock, $30 par value; 100,000 shares authorized, issued and outstanding 3 3 Additional paid-in capital 2,461 2,460 Retained earnings 2,589 3,410 Accumulated other comprehensive income, net of tax 819 675 ------------------------------------------------------------------------------------------------- Total shareholder's equity 5,872 6,548 ------------------------------------------------------------------------------------------------- Total liabilities and shareholder's equity $105,380 $102,626 =================================================================================================
See Notes to Consolidated Financial Statements. F-3 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF INCOME (IN MILLIONS)
YEARS ENDED DECEMBER 31, 2011 2010 2009 REVENUES Premiums $ 493 $ 489 $ 450 Net investment income 1,593 1,629 1,526 Policy and contract charges 1,540 1,389 1,156 Other revenues 303 272 233 Net realized investment gains 5 16 59 ------------------------------------------------------------------------------------------------------- Total revenues 3,934 3,795 3,424 ------------------------------------------------------------------------------------------------------- BENEFITS AND EXPENSES Benefits, claims, losses and settlement expenses 950 1,203 841 Interest credited to fixed accounts 853 909 903 Amortization of deferred acquisition costs 539 53 145 Other insurance and operating expenses 645 582 550 ------------------------------------------------------------------------------------------------------- Total benefits and expenses 2,987 2,747 2,439 ------------------------------------------------------------------------------------------------------- Pretax income 947 1,048 985 Income tax provision 168 252 245 ------------------------------------------------------------------------------------------------------- Net income $ 779 $ 796 $ 740 ======================================================================================================= Supplemental Disclosures: Net realized investment gains: Net realized investment gains before impairment losses on securities $ 29 $ 44 $ 121 ------------------------------------------------------------------------------------------------------- Total other-than-temporary impairment losses on securities (47) (22) (53) Portion of gain (loss) recognized in other comprehensive income 23 (6) (9) ------------------------------------------------------------------------------------------------------- Net impairment losses recognized in net realized investment gains (24) (28) (62) ------------------------------------------------------------------------------------------------------- Net realized investment gains $ 5 $ 16 $ 59 =======================================================================================================
See Notes to Consolidated Financial Statements. F-4 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (IN MILLIONS)
YEARS ENDED DECEMBER 31, 2011 2010 2009 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 779 $ 796 $ 740 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation, amortization and accretion, net (73) (79) (68) Deferred income tax expense (benefit) 28 416 (81) Contractholder and policyholder charges, non-cash (264) (259) (259) Net realized investment gains (26) (46) (135) Other-than-temporary impairments and provision for loan losses recognized in net realized investment gains 21 29 76 Change in operating assets and liabilities: Deferred acquisition costs 120 (406) (412) Deferred sales inducement costs 72 (38) (73) Equity method investments 33 29 136 Future policy benefits for traditional life, disability income and long term care insurance 253 302 282 Policy claims and other policyholders' funds (13) 11 (49) Reinsurance recoverables (127) (143) (96) Other receivables 25 (53) (5) Accrued investment income 2 (6) (64) Derivatives collateral, net 649 55 (1,928) Other assets and liabilities, net 189 271 684 ------------------------------------------------------------------------------------------------------- Net cash provided by (used in) operating activities 1,668 879 (1,252) ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Available-for-Sale securities: Proceeds from sales 664 1,268 5,215 Maturities, sinking fund payments and calls 3,200 3,719 3,486 Purchases (4,084) (4,970) (13,696) Proceeds from sales, maturities and repayments of commercial mortgage loans 202 207 279 Funding of commercial mortgage loans (207) (154) (104) Proceeds from sales of other investments 114 95 43 Purchase of other investments (296) (86) (11) Purchase of land, buildings, equipment and software (6) (15) (14) Change in policy loans, net (10) (14) 7 ------------------------------------------------------------------------------------------------------- Net cash provided by (used in) investing activities (423) 50 (4,795) ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Policyholder and contractholder account values: Considerations received 1,378 1,593 4,863 Net transfers from (to) separate accounts 39 (1,337) 195 Surrenders and other benefits (1,311) (1,338) (1,923) Change in borrowings under repurchase agreements, net 107 397 -- Proceeds from line of credit with Ameriprise Financial, Inc. 415 13 500 Payments on line of credit with Ameriprise Financial, Inc. (118) (310) -- Deferred premium options, net (254) (182) (82) Tax adjustment on share-based incentive compensation plan 1 -- (2) Cash dividend to Ameriprise Financial, Inc. (750) (500) -- ------------------------------------------------------------------------------------------------------- Net cash provided by (used in) financing activities (493) (1,664) 3,551 ------------------------------------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 752 (735) (2,496) Cash and cash equivalents at beginning of period 76 811 3,307 ------------------------------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 828 $ 76 $ 811 ======================================================================================================= Supplemental Disclosures: Income taxes paid, net $ 176 $ 112 $ 72 Interest paid on borrowings 5 3 1 Non-cash investing activity: Capital contributions from Ameriprise Financial, Inc. $ -- $ 14 $ 331 Dividend to Ameriprise Financial, Inc. 850 -- -- Affordable housing partnership commitments not yet remitted 137 171 --
See Notes to Consolidated Financial Statements. F-5 RiverSource Life Insurance Company -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY THREE YEARS ENDED DECEMBER 31, 2011 (IN MILLIONS)
ACCUMULATED ADDITIONAL OTHER COMMON PAID-IN RETAINED COMPREHENSIVE SHARES CAPITAL EARNINGS INCOME (LOSS) TOTAL ------------------------------------------------------------------------------------------------------------------- BALANCES AT JANUARY 1, 2009 $ 3 $2,116 $2,336 $ (716) $3,739 Change in accounting principles, net of tax -- -- 38 (38) -- Comprehensive income: Net income -- -- 740 -- 740 Other comprehensive income, net of tax: Change in net unrealized securities losses -- -- -- 1,109 1,109 Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities -- -- -- 23 23 Change in net unrealized derivative losses -- -- -- 4 4 ------------ Total comprehensive income 1,876 Tax adjustment on share-based incentive compensation plan -- (2) -- -- (2) Non-cash capital contribution from Ameriprise Financial, Inc. -- 331 -- -- 331 ------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2009 3 2,445 3,114 382 5,944 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 derivative 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 Comprehensive income: Net income -- -- 779 -- 779 Other comprehensive income, net of tax: Change in net unrealized securities gains -- -- -- 146 146 Change in noncredit related impairments on securities and net unrealized securities losses on previously impaired securities -- -- -- (6) (6) Change in net unrealized derivative losses -- -- -- 4 4 ------------ Total comprehensive income 923 Tax adjustment on share-based incentive compensation plan -- 1 -- -- 1 Cash dividends to Ameriprise Financial, Inc. -- -- (750) -- (750) Non-cash dividend to Ameriprise Financial, Inc. -- -- (850) -- (850) ------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2011 $ 3 $2,461 $2,589 $ 819 $5,872 ===================================================================================================================
See Notes to Consolidated Financial Statements. F-6 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. 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 intercompany transactions and balances have been eliminated in consolidation. 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. In 2011, RiverSource Life began offering indexed universal life ("IUL") insurance. IUL is similar to universal life insurance in that it provides life insurance coverage and cash value that increases as a result of credited interest. Also, like universal life insurance, there is a minimum guaranteed credited rate of interest. Unlike universal life insurance, the rate of credited interest above the minimum guarantee is linked to the S&P 500 Index (subject to a cap). 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 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. F-7 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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 the 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, deferred acquisition costs ("DAC") and the corresponding recognition of DAC amortization, derivative instruments and hedging activities, claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. 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, deferred sales inducement costs ("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. 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 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 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 F-8 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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. Other Investments Other investments primarily consist of interests in affordable housing partnerships, syndicated loans and trading securities. Affordable housing partnerships are accounted for under the equity method. Trading securities are carried at fair value with changes in value recognized within net investment income. 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 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. 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 F-9 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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, restructured 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 other investments. Syndicated loans are placed on nonaccrual status when management determines it will not collect all contractual principal and interest on the loan. 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 may 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 for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, 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 restructuring 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. 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, 2011 and 2010 was $26 million and $66 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. Reinsurance premiums for traditional life, long term care ("LTC") and DI ceded on a coinsurance basis, 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 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 F-10 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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, 2011 and 2010, land, buildings, equipment and software were $182 million and $191 million, respectively, net of accumulated depreciation of $75 million and $59 million, respectively. Depreciation and amortization expense for the years ended December 31, 2011, 2010 and 2009 was $16 million, $14 million and $8 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 accounting 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 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. F-11 RiverSource Life Insurance Company -------------------------------------------------------------------------------- See Note 13 for information regarding the Company's fair value measurement of derivative instruments and Note 16 for the impact of derivatives on the Consolidated Statements of Income. The equity component of EIA and IUL 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 these embedded derivatives associated with annuities and IUL is included in future policy benefits. The change in the fair value of the EIA and IUL 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 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 its annuity and insurance businesses during the DAC amortization period. The client asset value growth rates are the rates at which variable annuity and variable universal life ("VUL") insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. 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. 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. F-12 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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 or 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 with 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 liability. Significant assumptions made in projecting future benefits and fees relate to persistency and benefit utilization. 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 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. F-13 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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 indexed accounts of IUL products, 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. Liabilities for indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. 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 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 premiums, net investment income and policy and contract charges. Premiums Premiums 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-14 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 fixed 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 presented net of acquisition cost deferrals. INCOME TAXES The Company's taxable income is 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 taxes is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes as well as 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. In the opinion of management, it is currently more likely than not that the Company will not realize the full benefit of certain state net operating losses ("NOL") and therefore a valuation allowance of $4 million has been established at December 31, 2011. 3. RECENT ACCOUNTING PRONOUNCEMENTS ADOPTION OF NEW ACCOUNTING STANDARDS Receivables In April 2011, the Financial Accounting Standards Board ("FASB") updated the accounting standards for troubled debt restructurings. The new standard includes indicators that a lender should consider in determining whether a borrower is experiencing financial difficulties and provides clarification for determining whether the lender has granted a concession to the F-15 RiverSource Life Insurance Company -------------------------------------------------------------------------------- borrower. The standard sets the effective dates for troubled debt restructuring disclosures required by recent guidance on credit quality disclosures. The standard is effective for interim and annual periods beginning on or after June 15, 2011, and is to be applied retrospectively to modifications occurring on or after the beginning of the annual period of adoption. For purposes of measuring impairments of receivables that are considered impaired as a result of applying the new guidance, the standard should be applied prospectively for the interim or annual period beginning on or after June 15, 2011. The Company adopted the standard in the third quarter of 2011. The adoption did not have any effect on the Company's consolidated financial condition and results of operations. See Note 6 for the required disclosures. 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 adopted in the first quarter of 2011. The adoption did not impact the Company's consolidated financial condition and results of operations. See Note 13 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. 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 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 Balance Sheet In December 2011, the FASB updated the accounting standards to require new disclosures about offsetting assets and liabilities. The standard requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The standard is effective for interim and annual periods beginning on or after January 1, 2013 on a retrospective basis. The Company is currently evaluating the impact of the standard on its consolidated financial condition and results of operations. F-16 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Comprehensive Income In June 2011, the FASB updated the accounting standards related to the presentation of comprehensive income. The standard requires entities to present all nonowner changes in stockholders' equity either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The standard is effective for interim and annual periods beginning after December 15, 2011. The standard is to be applied retrospectively. The adoption of the standard will not impact the Company's consolidated financial condition and results of operations. Fair Value In May 2011, the FASB updated the accounting standards related to fair value measurement and disclosure requirements. The standard requires entities, for assets and liabilities measured at fair value in the statement of financial position which are Level 3 fair value measurements, to disclose quantitative information about unobservable inputs and assumptions used in the measurements, a description of the valuation processes in place, and a qualitative discussion about the sensitivity of the measurements to changes in unobservable inputs and interrelationships between those inputs if a change in those inputs would result in a significantly different fair value measurement. In addition, the standard requires disclosure of fair value by level within the fair value hierarchy for each class of assets and liabilities not measured at fair value in the statement of financial position but for which the fair value is disclosed. The standard is effective for interim and annual periods beginning on or after December 15, 2011. The adoption of the standard is not expected to have a material impact on the Company's consolidated financial condition and results of operations. Transfers and Servicing: Reconsideration of Effective Control for Repurchase Agreements In April 2011, the FASB updated the accounting standards related to accounting for repurchase agreements and other similar agreements. The standard modifies the criteria for determining when these transactions would be accounted for as secured borrowings as opposed to sales. The standard is effective prospectively for new transfers and existing transactions that are modified in the first interim or annual period beginning on or after December 15, 2011. The adoption of the standard is not expected to have a material impact on the Company's consolidated financial condition and results of operations. 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 Company retrospectively adopted the standard on January 1, 2012. The cumulative effect of the adoption reduced retained earnings by $1.4 billion after-tax at January 1, 2012. 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 investments in the affordable housing partnerships is limited to the carrying values of these investments. The carrying values are reflected in other investments and were $384 million and $244 million as of December 31, 2011 and 2010, respectively. RTA has no obligation to provide financial or other support to the affordable housing partnerships in addition to liabilities already recorded for future funding commitments nor has it provided any additional support to the affordable housing partnerships. The Company had liabilities of $267 million and $188 million recorded in other liabilities as of December 31, 2011 and 2010, respectively, related to the future funding commitments for affordable housing partnerships. F-17 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 5. INVESTMENTS Available-for-Sale securities distributed by type were as follows:
DECEMBER 31, 2011 -------------------------------------------------------------------- GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR NONCREDIT DESCRIPTION OF SECURITIES (IN MILLIONS) COST GAINS LOSSES VALUE OTTI(1) -------------------------------------------------------------------------------------------------------------------- Fixed maturities: Corporate debt securities $14,770 $1,726 $ (78) $16,418 $ -- Residential mortgage backed securities 4,193 242 (126) 4,309 (41) Commercial mortgage backed securities 3,355 276 -- 3,631 -- State and municipal obligations 1,012 131 (47) 1,096 -- Asset backed securities 883 43 (18) 908 -- Foreign government bonds and obligations 126 19 (1) 144 -- U.S. government and agencies obligations 49 8 -- 57 -- Other structured investments 10 4 -- 14 4 -------------------------------------------------------------------------------------------------------------------- Total fixed maturities 24,398 2,449 (270) 26,577 (37) Common stocks 1 1 -- 2 -- -------------------------------------------------------------------------------------------------------------------- Total $24,399 $2,450 $(270) $26,579 $(37) ====================================================================================================================
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) ====================================================================================================================
(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 December 31, 2011 and 2010, fixed maturity securities comprised approximately 87% and 88%, respectively, 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 both December 31, 2011 and 2010, approximately $1.2 billion of securities were internally rated by Columbia Management Investment Advisers, LLC using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows:
DECEMBER 31, 2011 DECEMBER 31, 2010 ---------------------------------------- ---------------------------------------- PERCENT OF PERCENT OF RATINGS (IN MILLIONS, EXCEPT AMORTIZED FAIR TOTAL FAIR AMORTIZED FAIR TOTAL FAIR PERCENTAGES) COST VALUE VALUE COST VALUE VALUE -------------------------------------------------------------------------------------------------------------------------- AAA $ 7,276 $ 7,811 30% $ 8,067 $ 8,647 33% AA 1,161 1,291 5 1,360 1,426 5 A 4,148 4,578 17 4,025 4,259 16 BBB 10,211 11,446 43 9,831 10,721 41 Below investment grade 1,602 1,451 5 1,535 1,389 5 -------------------------------------------------------------------------------------------------------------------------- Total fixed maturities $24,398 $26,577 100% $24,818 $26,442 100% ==========================================================================================================================
At December 31, 2011 and 2010, approximately 33% and 29%, 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. F-18 RiverSource Life Insurance Company -------------------------------------------------------------------------------- The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position:
DECEMBER 31, 2011 (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 70 $1,004 $(37) 9 $257 $ (41) 79 Residential mortgage backed securities 30 338 (8) 48 283 (118) 78 Asset backed securities 12 145 (3) 18 96 (15) 30 State and municipal obligations -- -- -- 2 87 (47) 2 Foreign government bonds and obligations 5 23 (1) -- -- -- 5 ------------------------------------------------------------------------------------------------------------------------ Total 117 $1,510 $(49) 77 $723 $(221) 194 ======================================================================================================================== DECEMBER 31, 2011 (IN MILLIONS, EXCEPT -------------------------- NUMBER OF SECURITIES) TOTAL -------------------------------------------------- DESCRIPTION OF FAIR UNREALIZED SECURITIES VALUE LOSSES -------------------------------------------------- Corporate debt securities $1,261 $ (78) Residential mortgage backed securities 621 (126) Asset backed securities 241 (18) State and municipal obligations 87 (47) Foreign government bonds and obligations 23 (1) -------------------------------------------------- Total $2,233 $(270) ==================================================
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 ------------------------------------------------------------------------------------------------------------------------ Total 218 $2,775 $(70) 75 $591 $(204) 293 ======================================================================================================================== 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) -------------------------------------------------- Total $3,366 $(274) ==================================================
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 are attributable to movement in credit spreads. 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) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Beginning balance $108 $ 82 $102 Credit losses for which an other-than-temporary impairment was not previously recognized 13 14 7 Credit losses for which an other-than-temporary impairment was previously recognized 11 12 31 Reductions for securities sold during the period (realized) (26) -- (58) ------------------------------------------------------------------------------------------------------- Ending balance $106 $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 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. F-19 RiverSource Life Insurance Company -------------------------------------------------------------------------------- The following table presents a rollforward of the net unrealized securities gains (losses) on Available-for-Sale securities included in accumulated other comprehensive income:
ACCUMULATED OTHER COMPREHENSI- VE INCOME RELATED TO NET NET UNREALIZED UNREALIZED SECURITIES SECURITIES GAINS DEFERRED GAINS (IN MILLIONS) (LOSSES) INCOME TAX (LOSSES) ---------------------------------------------------------------------------------------------------- Balance at January 1, 2009 $(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) Net unrealized securities gains arising during the period(3) 560 (196) 364 Reclassification of gains included in net income (5) 2 (3) Impact on DAC, DSIC, benefit reserves and reinsurance recoverables (340) 119 (221) ---------------------------------------------------------------------------------------------------- Balance at December 31, 2011 $ 1,299 $(454) $ 845(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) Includes $(18) million, $(12) million and $(16) million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at December 31, 2011, 2010 and 2009, respectively. (3) Includes 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) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Gross realized investment gains $ 48 $ 51 $185 Gross realized investment losses (20) (4) (50) Other-than-temporary impairments (24) (28) (62)
Other-than-temporary impairments for the year ended December 31, 2011 primarily related to credit losses on non-agency residential mortgage backed securities. 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. 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. Available-for-Sale securities by contractual maturity at December 31, 2011 were as follows:
AMORTIZED (IN MILLIONS) COST FAIR VALUE ------------------------------------------------------------------------------------------------- Due within one year $ 911 $ 927 Due after one year through five years 4,976 5,204 Due after five years through 10 years 6,377 7,093 Due after 10 years 3,693 4,491 ------------------------------------------------------------------------------------------------- 15,957 17,715 ------------------------------------------------------------------------------------------------- Residential mortgage backed securities 4,193 4,309 Commercial mortgage backed securities 3,355 3,631 Asset backed securities 883 908 Other structured investments 10 14 Common stocks 1 2 ------------------------------------------------------------------------------------------------- Total $24,399 $26,579 =================================================================================================
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 stocks, were not included in the maturities distribution. At both December 31, 2011 and 2010, bonds carried at $7 million were on deposit with various states as required by law. F-20 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Sources of Investment Income and Net Realized Investment Gains (Losses) Net investment income is summarized as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Income on fixed maturities $1,469 $1,482 $1,371 Income on commercial mortgage loans 149 152 160 Other investments 18 40 35 ------------------------------------------------------------------------------------------------------- 1,636 1,674 1,566 Less: investment expenses 43 45 40 ------------------------------------------------------------------------------------------------------- Total $1,593 $1,629 $1,526 =======================================================================================================
Net realized investment gains (losses) are summarized as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Fixed maturities $ 4 $19 $ 73 Commercial mortgage loans 2 (6) (13) Other investments (1) 3 (1) ------------------------------------------------------------------------------------------------------- Total $ 5 $16 $ 59 =======================================================================================================
6. FINANCING RECEIVABLES The Company's financing receivables include commercial mortgage loans, syndicated loans and policy loans. Syndicated loans are reflected in other investments. Policy loans do not exceed the cash value of the policy at origination. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses for policy loans. ALLOWANCE FOR LOAN LOSSES The following table presents a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method and type of loan:
DECEMBER 31, 2011 DECEMBER 31, 2010 ---------------------------------------------------------------------------------- COMMERCIAL COMMERCIAL MORTGAGE SYNDICATED MORTGAGE SYNDICATED (IN MILLIONS) LOANS LOANS TOTAL LOANS LOANS TOTAL -------------------------------------------------------------------------------------------------------------------------- Beginning balance $36 $ 5 $41 $30 $12 $42 Charge-offs (3) -- (3) (1) (2) (3) Provisions (1) -- (1) 7 (5) 2 -------------------------------------------------------------------------------------------------------------------------- Ending balance $32 $ 5 $37 $36 $ 5 $41 ========================================================================================================================== Individually evaluated for impairment $ 9 $-- $ 9 $ 8 $-- $ 8 Collectively evaluated for impairment 23 5 28 28 5 33
The recorded investment in financing receivables by impairment method and type of loan was as follows:
DECEMBER 31, 2011 DECEMBER 31, 2010 ---------------------------------------------------------------------------------- COMMERCIAL COMMERCIAL MORTGAGE SYNDICATED MORTGAGE SYNDICATED (IN MILLIONS) LOANS LOANS TOTAL LOANS LOANS TOTAL -------------------------------------------------------------------------------------------------------------------------- Individually evaluated for impairment $ 64 $ 1 $ 65 $ 75 $ 3 $ 78 Collectively evaluated for impairment 2,441 301 2,742 2,431 202 2,633 -------------------------------------------------------------------------------------------------------------------------- Total $2,505 $302 $2,807 $2,506 $205 $2,711 ==========================================================================================================================
As of December 31, 2011 and 2010, the Company's recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $4 million and $20 million, respectively. During the year ended December 31, 2011, the Company purchased $194 million and sold $2 million of syndicated loans. During the year ended December 31, 2010, the Company purchased $59 million and sold $2 million of syndicated loans. The Company has not acquired any loans with deteriorated credit quality as of the acquisition date. CREDIT QUALITY INFORMATION Nonperforming loans, which are generally loans 90 days or more past due, were $12 million and $8 million as of December 31, 2011 and 2010, respectively. All other loans were considered to be performing. F-21 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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 total commercial mortgage loans at both December 31, 2011 and 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 within 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 were as follows:
DECEMBER 31, 2011 DECEMBER 31, 2010 ---------------------------------------------------------------------------------- PERCENT OF FUNDING PERCENT OF FUNDING (IN MILLIONS, EXCEPT PERCENTAGES) LOANS LOANS COMMITMENTS LOANS LOANS COMMITMENTS ------------------------------------------------------------------------------------------------------------------------ South Atlantic $ 618 25% $-- $ 590 24% $ 4 Pacific 556 22 1 530 21 15 Mountain 275 11 11 286 11 -- East North Central 247 10 -- 240 10 -- West North Central 224 9 1 251 10 -- Middle Atlantic 217 9 -- 212 8 -- West South Central 173 7 2 183 7 -- New England 130 5 -- 148 6 2 East South Central 65 2 -- 66 3 -- ---------------------------------------------------------------------------------- 2,505 100% $15 2,506 100% $21 ------------ ------------ ------------ ------------ Less: allowance for loan losses 32 36 ------------ ------------ Total $2,473 $2,470 ========================================================================================================================
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
DECEMBER 31, 2011 DECEMBER 31, 2010 ---------------------------------------------------------------------------------- PERCENT OF FUNDING PERCENT OF FUNDING (IN MILLIONS, EXCEPT PERCENTAGES) LOANS LOANS COMMITMENTS LOANS LOANS COMMITMENTS ------------------------------------------------------------------------------------------------------------------------ Retail $ 825 33% $ 2 $ 820 33% $10 Office 669 27 2 717 29 -- Industrial 455 18 1 456 18 6 Apartments 358 14 -- 326 13 -- Hotel 51 2 -- 57 2 -- Mixed Use 42 2 -- 43 2 -- Other 105 4 10 87 3 5 ---------------------------------------------------------------------------------- 2,505 100% $15 2,506 100% $21 ------------ ------------ ------------ ------------ Less: allowance for loan losses 32 36 ------------ ------------ Total $2,473 $2,470 ========================================================================================================================
Syndicated Loans The Company's syndicated loan portfolio is diversified across industries and issuers. 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 at both December 31, 2011 and 2010 were $1 million. TROUBLED DEBT RESTRUCTURINGS During the year ended December 31, 2011, the Company restructured 10 loans with a recorded investment of $49 million as of December 31, 2011. The recorded investment in restructured loans primarily consists of commercial mortgage loans. The troubled debt restructurings did not have a material impact to the Company's allowance for loan losses or income recognized for the year ended December 31, 2011. There are no material commitments to lend additional funds to borrowers whose loans have been restructured. 7. DEFERRED ACQUISITION COSTS AND DEFERRED SALES INDUCEMENT COSTS During the third quarter of 2011, 2010 and 2009, 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 VUL contracts. F-22 RiverSource Life Insurance Company -------------------------------------------------------------------------------- The balances of and changes in DAC were as follows:
(IN MILLIONS) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Balance at January 1 $4,578 $4,285 $4,324 Capitalization of acquisition costs 419 459 558 Amortization, excluding the impact of valuation assumptions review (488) (376) (264) Amortization, impact of valuation assumptions review (51) 323 119 Impact of change in net unrealized securities gains (91) (113) (452) ------------------------------------------------------------------------------------------------------- Balance at December 31 $4,367 $4,578 $4,285 =======================================================================================================
The balances of and changes in DSIC were as follows:
(IN MILLIONS) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Balance at January 1 $545 $524 $518 Capitalization of sales inducement costs 9 35 82 Amortization, excluding the impact of valuation assumptions review (70) (49) (19) Amortization, impact of valuation assumptions review (11) 52 9 Impact of change in net unrealized securities gains (9) (17) (66) ------------------------------------------------------------------------------------------------------- Balance at December 31 $464 $545 $524 =======================================================================================================
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. 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. 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. The Company also has life insurance and fixed annuity risk previously assumed under reinsurance arrangements with unaffiliated insurance companies. 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. At December 31, 2011 and 2010, traditional life and universal life insurance in force aggregated $191.2 billion and $192.0 billion, respectively, of which $136.2 billion and $134.0 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) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Direct premiums $ 707 $ 681 $ 659 Reinsurance ceded (214) (192) (209) ------------------------------------------------------------------------------------------------------- Net premiums $ 493 $ 489 $ 450 =======================================================================================================
Policy and contract charges are presented on the Consolidated Statements of Income net of $71 million, $67 million and $62 million of reinsurance ceded for the years ended December 31, 2011, 2010 and 2009, respectively. F-23 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Reinsurance recovered from reinsurers was $189 million, $166 million and $167 million for the years ended December 31, 2011, 2010 and 2009, respectively. Reinsurance contracts do not relieve the Company from its primary obligation to policyholders. Reinsurance recoverables include approximately $1.5 billion and $1.4 billion related to LTC risk ceded to Genworth as of December 31, 2011 and 2010, respectively. Included in future policy benefits is $629 million and $657 million related to assumed reinsurance arrangements as of December 31, 2011 and 2010, 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) 2011 2010 ------------------------------------------------------------------------------------------------- Fixed annuities $16,401 $16,520 EIA accumulated host values 58 100 EIA embedded derivatives 2 3 Variable annuity fixed sub-accounts 4,852 4,868 Variable annuity GMWB 1,377 337 Variable annuity GMAB 237 104 Other variable annuity guarantees 14 13 ------------------------------------------------------------------------------------------------- Total annuities 22,941 21,945 VUL/UL insurance 2,662 2,588 IUL accumulated host values 4 -- IUL embedded derivatives 3 -- VUL/UL insurance additional liabilities 220 143 Other life, DI and LTC insurance 5,352 5,004 ------------------------------------------------------------------------------------------------- Total future policy benefits 31,182 29,680 Policy claims and other policyholders' funds 121 134 ------------------------------------------------------------------------------------------------- Total future policy benefits and policy claims and other policyholders' funds $31,303 $29,814 =================================================================================================
Separate account liabilities consisted of the following:
DECEMBER 31, -------------------------- (IN MILLIONS) 2011 2010 ------------------------------------------------------------------------------------------------- Variable annuity variable sub-accounts $57,556 $57,862 VUL insurance variable sub-accounts 5,575 5,887 Other insurance variable sub-accounts 43 46 ------------------------------------------------------------------------------------------------- Total $63,174 $63,795 =================================================================================================
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, 2011 and 2010, 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 F-24 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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 or a separate 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. In 2011, the Company began offering IUL insurance. 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. 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. F-25 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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, 2011 DECEMBER 31, 2010 --------------------------------------------------------------------------------------- CONTRACT WEIGHTED CONTRACT VARIABLE ANNUITY GUARANTEES BY TOTAL VALUE IN NET AVERAGE TOTAL VALUE IN BENEFIT TYPE(1) CONTRACT SEPARATE AMOUNT ATTAINED CONTRACT SEPARATE (IN MILLIONS, EXCEPT AGE) VALUE ACCOUNTS AT RISK(2) AGE VALUE ACCOUNTS --------------------------------------------------------------------------------------------------------------------------- GMDB: Return of premium $40,011 $38,275 $ 382 63 $37,714 $36,028 Five/six-year reset 11,631 9,118 350 63 13,689 11,153 One-year ratchet 7,233 6,777 479 64 7,741 7,242 Five-year ratchet 1,472 1,418 25 61 1,466 1,414 Other 759 732 93 68 680 649 --------------------------------------------------------------------------------------------------------------------------- Total -- GMDB $61,106 $56,320 $1,329 63 $61,290 $56,486 =========================================================================================================================== GGU DEATH BENEFIT $ 920 $ 868 $ 78 63 $ 970 $ 912 GMIB $ 463 $ 433 $ 106 65 $ 597 $ 561 GMWB: GMWB $ 3,887 $ 3,868 $ 236 65 $ 4,341 $ 4,317 GMWB for life 23,756 23,625 863 64 20,374 20,259 --------------------------------------------------------------------------------------------------------------------------- Total -- GMWB $27,643 $27,493 $1,099 64 $24,715 $24,576 =========================================================================================================================== GMAB $ 3,516 $ 3,509 $ 63 56 $ 3,540 $ 3,523 DECEMBER 31, 2010 --------------------------- WEIGHTED VARIABLE ANNUITY GUARANTEES BY NET AVERAGE BENEFIT TYPE(1) AMOUNT ATTAINED (IN MILLIONS, EXCEPT AGE) AT RISK(2) AGE --------------------------------------------------------------- GMDB: Return of premium $173 62 Five/six-year reset 312 62 One-year ratchet 287 63 Five-year ratchet 8 60 Other 61 67 --------------------------------------------------------------- Total -- GMDB $841 62 =============================================================== GGU DEATH BENEFIT $ 79 64 GMIB $ 76 64 GMWB: GMWB $106 64 GMWB for life 129 63 --------------------------------------------------------------- Total -- GMWB $235 63 =============================================================== GMAB $ 22 56
(1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. (2) Represents the current guaranteed benefit amount in excess of the current contract value. GMIB, GMWB and GMAB benefits are subject to waiting periods and payment periods specified in the contract. Changes in additional liabilities for variable annuity and insurance guarantees were as follows:
(IN MILLIONS) GMDB & GGU GMIB GMWB GMAB UL -------------------------------------------------------------------------------------------------------------------- Balance at January 1, 2009 $ 55 $12 $ 1,471 $ 367 $ 7 Incurred claims 12 (5) (1,267) (267) 8 Paid claims (61) (1) -- -- -- -------------------------------------------------------------------------------------------------------------------- Balance at December 31, 2009 6 6 204 100 15 Incurred claims 17 3 133 4 59 Paid claims (18) (1) -- -- (6) -------------------------------------------------------------------------------------------------------------------- Balance at December 31, 2010 5 8 337 104 68 Incurred claims 10 2 1,040 133 53 Paid claims (10) (1) -- -- (10) -------------------------------------------------------------------------------------------------------------------- Balance at December 31, 2011 $ 5 $ 9 $ 1,377 $ 237 $111 ====================================================================================================================
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) 2011 2010 ------------------------------------------------------------------------------------------------- Mutual funds: Equity $30,738 $32,310 Bond 23,862 22,319 Other 1,969 2,208 ------------------------------------------------------------------------------------------------- Total mutual funds $56,569 $56,837 =================================================================================================
No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2011, 2010 and 2009. F-26 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 11. LINES OF CREDIT RiverSource Life Insurance Company, as the borrower, had an outstanding balance of $300 million and $3 million as of December 31, 2011 and 2010, 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. As of December 31, 2011, the interest rate for any borrowing under the agreement was established by reference to LIBOR plus 115 basis points. In January 2012, an amendment to this agreement decreased the interest rate to LIBOR plus 90 basis points, subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. Amounts borrowed may be repaid at any time with no prepayment penalty. The Company has a revolving credit agreement with Ameriprise Financial as the lender 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, 2011 and 2010. In December 2009, 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. As of December 31, 2011, the interest rate for any borrowing was established by reference to LIBOR plus 115 basis points. In January 2012, an amendment to this agreement decreased the interest rate to LIBOR plus 90 basis points, subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. 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, 2011 and 2010. 12. BORROWINGS UNDER REPURCHASE AGREEMENTS The Company enters 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 and commercial mortgage backed securities to collateralize its obligation under the repurchase agreements. The fair value of the securities pledged is recorded in investments and was $521 million and $412 million at December 31, 2011 and 2010, respectively. The amount of the Company's liability including accrued interest as of December 31, 2011 and 2010 was $504 million and $397 million, respectively. The weighted average annualized interest rate on the repurchase agreements held as of both December 31, 2011 and 2010 was 0.3%. 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. F-27 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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 third-party pricing services, non-binding broker quotes, or other model-based valuation techniques. Level 1 securities include U.S. Treasuries. Level 2 securities include municipal and corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, asset backed securities and U.S. agency and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third-party pricing services. Observable inputs used to value these securities can include, but are not limited to reported trades, benchmark yields, issuer spreads and non-binding broker quotes. Level 3 securities primarily include corporate bonds, certain non-agency residential mortgage backed securities and asset backed securities. The fair value of corporate bonds and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The fair value of certain asset backed securities and non-agency residential mortgage backed securities is obtained from third-party pricing services who use significant unobservable inputs to estimate the fair value. Prices received from third-party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third-party pricing services. The Company's due diligence procedures include assessing the vendor's valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise. 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 exchange-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 measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The counterparties' nonperformance risk associated with uncollateralized derivative assets was immaterial at December 31, 2011 and 2010. See Note 16 for further information on the credit risk of derivative instruments and related collateral. 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 EIA and IUL products. 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. F-28 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Other Liabilities Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-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 measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The Company's nonperformance risk associated with uncollateralized derivative liabilities was immaterial at December 31, 2011 and 2010. See Note 16 for further information on the credit risk of derivative instruments and related collateral. The following tables present the balances of assets and liabilities measured at fair value on a recurring basis:
DECEMBER 31, 2011 ------------------------------------------------------ (IN MILLIONS) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL ------------------------------------------------------------------------------------------------------------- Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ -- $15,076 $1,342 $16,418 Residential mortgage backed securities -- 4,255 54 4,309 Commercial mortgage backed securities -- 3,615 16 3,631 State and municipal obligations -- 1,096 -- 1,096 Asset backed securities -- 771 137 908 Foreign government bonds and obligations -- 144 -- 144 U.S. government and agencies obligations 10 47 -- 57 Other structured investments -- -- 14 14 ------------------------------------------------------------------------------------------------------------- Total Available-for-Sale securities: Fixed maturities 10 25,004 1,563 26,577 Common stocks 1 1 -- 2 Trading securities -- 25 -- 25 Cash equivalents -- 809 -- 809 Other assets: Interest rate derivative contracts -- 1,801 -- 1,801 Equity derivative contracts 274 1,041 -- 1,315 Credit derivative contracts -- 1 -- 1 Foreign currency derivative contracts -- 7 -- 7 ------------------------------------------------------------------------------------------------------------- Total other assets 274 2,850 -- 3,124 Separate account assets -- 63,174 -- 63,174 ------------------------------------------------------------------------------------------------------------- Total assets at fair value $285 $91,863 $1,563 $93,711 ============================================================================================================= Liabilities Future policy benefits: EIA embedded derivatives $ -- $ 2 $ -- $ 2 IUL embedded derivatives -- 3 -- 3 GMWB and GMAB embedded derivatives -- -- 1,585 1,585 ------------------------------------------------------------------------------------------------------------- Total future policy benefits -- 5 1,585 1,590(1) Other liabilities: Interest rate derivative contracts -- 1,198 -- 1,198 Equity derivative contracts 297 734 -- 1,031 Foreign currency derivative contracts -- 10 -- 10 ------------------------------------------------------------------------------------------------------------- Total other liabilities 297 1,942 -- 2,239 ------------------------------------------------------------------------------------------------------------- Total liabilities at fair value $297 $ 1,947 $1,585 $ 3,829 =============================================================================================================
(1) The Company's adjustment for nonperformance risk resulted in a $506 million cumulative decrease to the embedded derivative liability. F-29 RiverSource Life Insurance Company --------------------------------------------------------------------------------
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 derivative contracts -- 366 -- 366 Equity derivative contracts 32 323 -- 355 Credit derivative contracts -- 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(1) Other liabilities: Interest rate derivative contracts -- 379 -- 379 Equity derivative contracts 18 647 -- 665 Credit derivative contracts -- 1 -- 1 ------------------------------------------------------------------------------------------------------------- Total other liabilities 18 1,027 -- 1,045 ------------------------------------------------------------------------------------------------------------- Total liabilities at fair value $18 $ 1,030 $ 421 $ 1,469 =============================================================================================================
(1) The Company's adjustment for nonperformance risk resulted in a $197 million cumulative decrease to the embedded derivative liability. F-30 RiverSource Life Insurance Company -------------------------------------------------------------------------------- The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis:
FUTURE AVAILABLE-FOR-SALE SECURITIES: FIXED MATURITIES POLICY ---------------------------------------------------------------------------------- BENEFITS: RESIDENTIAL COMMERCIAL GMWB AND CORPORATE MORTGAGE MORTGAGE ASSET OTHER GMAB DEBT BACKED BACKED BACKED STRUCTURED EMBEDDED (IN MILLIONS) SECURITIES SECURITIES SECURITIES SECURITIES INVESTMENTS TOTAL DERIVATIVES -------------------------------------------------------------------------------------------------------------------------------- Balance, January 1, 2011 $1,317 $ 2,618 $ 30 $227 $13 $ 4,205 $ (421) Total gains (losses) included in: Net income 7 48 -- 3 1 59(1) (1,007)(2) Other comprehensive income 12 (73) -- (8) (2) (71) -- Purchases 178 26 71 -- 3 278 -- Sales (50) (3) -- -- -- (53) -- Issues -- -- -- -- -- -- (149) Settlements (117) (456) -- (18) (1) (592) (8) Transfers into Level 3 7 -- 1 -- -- 8 -- Transfers out of Level 3 (12) (2,106) (86) (67) -- (2,271) -- -------------------------------------------------------------------------------------------------------------------------------- Balance, December 31, 2011 $1,342 $ 54 $ 16 $137 $14 $ 1,563 $(1,585) ================================================================================================================================ Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2011 included in: Net investment income $ -- $ -- $ -- $ 1 $-- $ 1 $ -- Net realized investment gains (losses) -- (23) -- -- 1 (22) -- Benefits, claims, losses and settlement expenses -- -- -- -- -- -- (1,035)
(1) Represents a $26 million loss included in net realized investment gains 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.
FUTURE AVAILABLE-FOR-SALE SECURITIES: FIXED MATURITIES POLICY ---------------------------------------------------------------------------------- BENEFITS: RESIDENTIAL COMMERCIAL GMWB AND CORPORATE MORTGAGE MORTGAGE ASSET OTHER GMAB DEBT BACKED BACKED BACKED STRUCTURED EMBEDDED (IN MILLIONS) SECURITIES SECURITIES SECURITIES SECURITIES INVESTMENTS TOTAL DERIVATIVES -------------------------------------------------------------------------------------------------------------------------------- Balance, January 1, 2010 $1,239 $2,772 $ 72 $215 $11 $4,309 $(299) Total gains (losses) included in: Net income 1 54 1 6 2 64(1) 4(2) Other comprehensive income 30 190 10 22 -- 252 -- Purchases, sales, issues and settlements, net 22 (398) 91 (3) -- (288) (126) Transfers into Level 3 25 -- -- -- -- 25 -- Transfers out of Level 3 -- -- (144) (13) -- (157) -- -------------------------------------------------------------------------------------------------------------------------------- Balance, December 31, 2010 $1,317 $2,618 $ 30 $227 $13 $4,205 $(421) ================================================================================================================================ Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2010 included in: Net investment income $ -- $ 78 $ -- $ 5 $-- $ 83 $ -- Net realized investment gains (losses) -- (26) -- -- -- (26) -- Benefits, claims, losses and settlement expenses -- -- -- -- -- -- (15)
(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. The impact to pretax income of the Company's adjustment for nonperformance risk on the fair value of its GMWB and GMAB embedded derivatives was an increase of $168 million and $28 million, net of DAC and DSIC amortization, for the years ended December 31, 2011 and 2010, respectively. During the year ended December 31, 2011, transfers out of Level 3 to Level 2 included certain non-agency residential mortgage backed securities and sub-prime non-agency residential mortgage backed securities classified as asset backed securities with a fair value of $2.2 billion. The transfers reflect improved pricing transparency of these securities, a continuing trend of increased activity in the non-agency residential mortgage backed security market and increased observability of F-31 RiverSource Life Insurance Company -------------------------------------------------------------------------------- significant inputs to the valuation methodology. All other securities transferred from Level 3 to Level 2 represent securities with fair values that are now obtained from a third-party pricing service with observable inputs. Securities transferred from Level 2 to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. 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, ------------------------------------------------------ 2011 2010 ------------------------------------------------------------------------------------------------------------- CARRYING FAIR CARRYING FAIR (IN MILLIONS) VALUE VALUE VALUE VALUE ------------------------------------------------------------------------------------------------------------- FINANCIAL ASSETS Commercial mortgage loans, net $ 2,473 $ 2,650 $ 2,470 $ 2,558 Policy loans 739 713 729 805 Other investments 308 311 210 224 Restricted cash 26 26 66 66 FINANCIAL LIABILITIES Future policy benefits $15,064 $16,116 $15,328 $15,768 Separate account liabilities 345 345 395 395 Line of credit with Ameriprise Financial 300 300 3 3 Borrowings under repurchase agreements 504 502 397 397 Other liabilities 267 263 188 182
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 third-party 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 does 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. F-32 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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. Borrowings under Repurchase Agreements The fair value of borrowings under agreements to repurchase is obtained from a third-party pricing service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk. Other Liabilities Other liabilities consisted of future funding commitments to affordable housing partnerships. The fair value of the future funding commitments is determined by discounting cash flows. 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, 2011, 2010 and 2009, the Company received $222 million, $136 million and $87 million, respectively, from Columbia Management Investment Advisers, LLC for these services. Charges by Ameriprise Financial and affiliated companies to the Company for use of joint facilities, technology support, marketing services and other services aggregated $530 million, $527 million and $580 million for 2011, 2010 and 2009, 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 and received by RiverSource Life Insurance Company were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Cash dividends paid to Ameriprise Financial $750 $500 $-- Non-cash dividends paid to Ameriprise Financial 850 -- -- Cash dividends received from RiverSource Life of NY 79 28 -- Cash dividends received from RTA 53 63 22 Cash dividends received from RiverSource REO 1, LLC 3 -- --
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 2011, RiverSource Life Insurance Company made cash contributions to RTA of $111 million for ongoing funding commitments related to affordable housing partnership investments. 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. Beginning in 2010, the Company's taxable income was included in the consolidated federal income tax return of Ameriprise Financial. Amounts due from Ameriprise Financial for federal income taxes were $86 million and $31 million at December 31, 2011 and 2010, respectively. 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 $(296) million and $810 million as of December 31, 2011 and 2010, respectively. F-33 RiverSource Life Insurance Company -------------------------------------------------------------------------------- In addition, dividends or distributions, whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceed the greater of the previous year's statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as "extraordinary dividends." Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Statutory net gain from operations and net income for the years ended December 31 and capital and surplus as of December 31 are summarized as follows:
(IN MILLIONS) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- (unaudited) Statutory net gain (loss) from operations(1) $ (475) $1,200 $1,793 Statutory net income (loss)(1) (599) 1,112 1,887 Statutory capital and surplus 2,681 3,735 3,371
(1) Statutory net gain (loss) from operations and statutory net income (loss) are significantly impacted by changes in reserves for variable annuity guaranteed benefits, however these impacts are substantially offset by unrealized gains (losses) on derivatives which are not included in statutory income but are recorded directly to surplus. 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 currently 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 2011 2010 LOCATION 2011 2010 ----------------------------------------------------------------------------------------------------------------- (IN MILLIONS) (IN MILLIONS) GMWB AND GMAB Interest rate Other contracts Other assets $1,801 $366 liabilities $1,198 $ 379 Other Equity contracts Other assets 1,314 354 liabilities 1,031 665 Other Credit contracts Other assets 1 4 liabilities -- 1 Foreign currency Other contracts Other assets 7 -- liabilities 10 -- Future Embedded Not policy derivatives(1) applicable -- -- benefits 1,585 421 --------------------------- --------------------------- Total GMWB and GMAB 3,123 724 3,824 1,466 --------------------------- --------------------------- OTHER DERIVATIVES: EQUITY Other EIA Other assets -- 1 liabilities -- -- Future EIA embedded Not policy derivatives applicable -- -- benefits 2 3 Other IUL Other assets 1 -- liabilities -- -- Future IUL embedded Not policy derivatives applicable -- -- benefits 3 -- --------------------------- --------------------------- Total other 1 1 5 3 --------------------------- --------------------------- Total derivatives $3,124 $725 $3,829 $1,469 =========================== ===========================
(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 -------------------------------------------------------------------------------- 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) ON AMOUNT OF GAIN (LOSS) ON DERIVATIVES DERIVATIVES RECOGNIZED IN INCOME DERIVATIVES NOT DESIGNATED RECOGNIZED -------------------------------------------------- AS HEDGING INSTRUMENTS IN INCOME 2011 2010 2009 ---------------------------------------------------------------------------------------------------- (IN MILLIONS) GMWB AND GMAB Benefits, claims, losses and settlement Interest rate contracts expenses $ 709 $ 95 $ (435) Benefits, claims, losses and settlement Equity contracts expenses 326 (370) (1,245) Benefits, claims, losses and settlement Credit contracts expenses (12) (44) (65) Benefits, claims, losses and settlement Foreign currency contracts expenses (2) -- -- Benefits, claims, losses and settlement Embedded derivatives(1) expenses (1,165) (121) 1,533 ---------------------------------------------------------------------------------------------------- Total GMWB and GMAB (144) (440) (212) ---------------------------------------------------------------------------------------------------- OTHER DERIVATIVES: EQUITY Benefits, claims, losses and settlement GMDB expenses -- (4) (10) Interest credited to fixed EIA accounts (1) 2 4 Interest credited to fixed EIA embedded derivatives accounts 1 7 7 Interest credited to fixed IUL accounts 1 -- -- Interest credited to fixed IUL embedded derivatives accounts (3) -- -- ---------------------------------------------------------------------------------------------------- Total other (2) 5 1 ---------------------------------------------------------------------------------------------------- Total derivatives $ (146) $(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 primarily using various futures, options, interest rate swaptions, interest rate swaps, variance swaps and credit default swaps. At December 31, 2011 and 2010, the gross notional amount of derivative contracts for the Company's GMWB and GMAB provisions was $104.7 billion and $55.5 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 both December 31, 2011 and 2010, the Company did not have any outstanding hedges on its GMDB provisions. The deferred premium associated with some of 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 ------------------------------------------------------------------------------------------------- 2012 $372 $41 2013 349 26 2014 324 24 2015 296 22 2016 265 15 2017-2026 925 34
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. EIA and IUL products 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 and IUL 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 futures contracts. The gross notional amount of EIA derivative contracts was $25 million and $89 million at December 31, 2011 and 2010, respectively. The gross notional amount of IUL derivative contracts was $12 million at December 31, 2011. 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 and IUL product obligations are also considered embedded derivatives. 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 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, 2011 and 2010, the Company held no derivatives that were designated as cash flow hedges. At December 31, 2011, the Company expects to reclassify $6 million of deferred loss on derivative instruments from accumulated other comprehensive income 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, 2011 and 2010, 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, 2011, 2010 and 2009, amounts recognized in earnings on derivative transactions that were ineffective were not material. The following is a summary of unrealized derivative losses included in accumulated other comprehensive income related to cash flow hedges:
(IN MILLIONS) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Net unrealized derivative losses at January 1 $(30) $(34) $(38) Reclassification of realized losses(1) 6 6 6 Income tax benefit (2) (2) (2) ------------------------------------------------------------------------------------------------------- Net unrealized derivative losses at December 31 $(26) $(30) $(34) =======================================================================================================
(1) Loss reclassified from accumulated other comprehensive income to net investment income on the 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 seven 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, 2011 and 2010, the Company held $635 million and $25 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, 2011 and 2010, the Company had accepted additional collateral consisting of various securities with a fair value of $186 million and $23 million, respectively, which are not reflected on the Consolidated Balance Sheets. As of December 31, 2011 and 2010, the Company's maximum credit exposure related to derivative assets after considering netting arrangements with counterparties and collateral arrangements was approximately $61 million and $25 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, 2011 and 2010, the aggregate fair value of all derivative instruments in a net liability position containing such credit risk features was $106 million and $412 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2011 and 2010 was $98 million and $406 million, respectively. If the credit risk features of derivative contracts that were in a net liability position at December 31, 2011 and 2010 were triggered, the additional fair value of assets needed to settle these derivative liabilities would have been $8 million and $6 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. 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. The components of income tax provision were as follows:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Current income tax: Federal $137 $(167) $325 State 3 3 1 ------------------------------------------------------------------------------------------------------- Total current income tax 140 (164) 326 Deferred income tax: Federal 29 417 (80) State (1) (1) (1) ------------------------------------------------------------------------------------------------------- Total deferred income tax 28 416 (81) ------------------------------------------------------------------------------------------------------- Total income tax provision $168 $ 252 $245 =======================================================================================================
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, ---------------------------------------- 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Tax at U.S. statutory rate 35.0% 35.0% 35.0% Changes in taxes resulting from: Tax-exempt interest and dividend income (13.5) (6.6) (7.2) State taxes, net of federal benefit 0.1 0.1 -- Low income housing credit (1.6) (1.4) (2.0) Foreign tax credit, net of addback (1.6) (1.1) (1.0) Taxes applicable to prior years -- (1.9) 0.1 Other, net (0.6) -- -- ------------------------------------------------------------------------------------------------------- Income tax provision 17.8% 24.1% 24.9% =======================================================================================================
The Company's effective tax rate was 17.8%, 24.1% and 24.9% for the years ended December 31, 2011, 2010 and 2009, respectively. The decrease in the effective tax rate compared to the prior year primarily reflects a favorable audit settlement related to the dividends received deduction as well as lower pretax income relative to tax advantaged items. 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) 2011 2010 ------------------------------------------------------------------------------------------------- Deferred income tax assets: Liabilities for future policy benefits $1,589 $1,306 Investment related -- 159 Capital loss and tax credit carryforwards 30 31 ------------------------------------------------------------------------------------------------- Gross deferred income tax assets 1,619 1,496 ------------------------------------------------------------------------------------------------- Deferred income tax liabilities: DAC 1,379 1,429 Net unrealized gains on Available-for-Sale securities 441 364 Investment related 190 -- DSIC 180 191 Other 49 26 ------------------------------------------------------------------------------------------------- Gross deferred income tax liabilities 2,239 2,010 ------------------------------------------------------------------------------------------------- Net deferred income tax liabilities $ (620) $ (514) =================================================================================================
The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Included in deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes as well as future deductible capital F-37 RiverSource Life Insurance Company -------------------------------------------------------------------------------- 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 not allow the Company to realize all of certain state NOLs and therefore a valuation allowance of $4 million was established as of December 31, 2011. The Company has tax benefits related to capital loss carryforwards of $30 million which expire beginning December 31, 2015. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
(IN MILLIONS) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Balance at January 1 $ 83 $ (77) $(89) Additions (reductions) based on tax positions related to the current year (1) -- 1 Additions for tax positions of prior years 79 322 18 Reductions for tax positions of prior years (7) (196) (7) Settlements (20) 34 -- ------------------------------------------------------------------------------------------------------- Balance at December 31 $134 $ 83 $(77) =======================================================================================================
If recognized, approximately $12 million, $39 million and $49 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2011, 2010 and 2009, 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 increase of $57 million and reductions of $8 million and $1 million in interest and penalties for the years ended December 31, 2011, 2010 and 2009, respectively. At December 31, 2011 and 2010, the Company had a payable of $33 million and a receivable of $24 million, respectively, related to accrued interest and penalties. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. Based on the current audit position of the Company, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $133 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. The Internal Revenue Service ("IRS") had completed its field examination of the 1997 through 2007 tax returns in recent years. However, for federal income tax purposes, these years except for 2007, continue to remain open as a consequence of certain issues under appeal. The IRS is currently auditing 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 1999 through 2009. The Company's federal and state income tax returns remain open for years after 2009. It is possible there will be corporate tax reform in the next few years. While impossible to predict, corporate tax reform is likely to include a reduction in the corporate tax rate coupled with reductions in tax preferred items. Any changes could have a material impact on the Company's income tax expense and deferred tax balances. The items comprising other comprehensive income (loss) are presented net of the following income tax provision amounts:
YEARS ENDED DECEMBER 31, ---------------------------------------- (IN MILLIONS) 2011 2010 2009 ------------------------------------------------------------------------------------------------------- Net unrealized securities gains $75 $157 $587 Net unrealized derivative losses (2) (2) (2) ------------------------------------------------------------------------------------------------------- Net income tax provision $73 $155 $585 =======================================================================================================
18. COMMITMENTS AND CONTINGENCIES At December 31, 2011 and 2010, 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, 2011, 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. F-38 RiverSource Life Insurance Company -------------------------------------------------------------------------------- Insurance companies have been the subject of increasing regulatory, legislative and judicial scrutiny. Numerous state and federal regulatory agencies have commenced examinations and other inquiries of insurance companies regarding sales and marketing practices (including sales to older consumers and disclosure practices), claims handling, and unclaimed property and escheatment practices and procedures. With regard to an industry-wide investigation of unclaimed property and escheatment practices and procedures, the Company is responding to regulatory audits, market conduct examinations and other inquires (including inquiries from the States of Minnesota and New York). The Company has cooperated and will continue to cooperate with the applicable regulators regarding their inquiries. 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 investigation or proceeding that is likely to have a material adverse effect on its consolidated financial condition, results of operations or liquidity. Notwithstanding the foregoing, it is possible that the outcome of any current or future legal, arbitration or regulatory proceeding could have a material impact on results of operations in any particular reporting period as the proceedings are resolved. The Company is required by law to be a member of the guaranty fund association in every state where they are licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations. The financial crisis of 2008 and 2009 and subsequent uncertainty and volatility in the U.S. economy and financial markets have weakened the financial condition of numerous insurers, including insurers currently in receiverships, increasing the risk of triggering guaranty fund assessments. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the insurance industry generally. F-39 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-6477 T (4/12) (C) 2008-2012 RiverSource Life Insurance Company. All rights reserved.