485BPOS 1 c16303e485bpos.txt POST-EFFECTIVE AMENDMENT TO REGISTRATION STATEMENT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Pre-Effective Amendment No. _____________ [ ] Post-Effective Amendment No. 44 (File No. 333-79311) [X] and/or REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 45 (File No. 811-07355) [X] (Check appropriate box or boxes) RIVERSOURCE VARIABLE ACCOUNT 10 (previously IDS LIFE VARIABLE ACCOUNT 10) (Exact Name of Registrant) RiverSource Life Insurance Company (previously IDS Life Insurance Company) (Name of Depositor) 70100 Ameriprise Financial Center, Minneapolis, MN 55474 (Address of Depositor's Principal Executive Offices) (Zip Code) Depositor's Telephone Number, including Area Code (612) 671-2237 Rodney J. Vessels 50605 Ameriprise Financial Center, Minneapolis, MN 55474 (Name and Address of Agent for Service) It is proposed that this filing will become effective (check appropriate box) [ ] immediately upon filing pursuant to paragraph (b) of Rule 485 [X] on July 16, 2007 pursuant to paragraph (b) of Rule 485 [ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485 [ ] as soon as practicable pursuant to paragraph (a)(1) of Rule 485 If appropriate, check the following box: [ ] this post-effective amendment designates a new effective date for a previously filed post-effective amendment. The prospectus and Statement of Additional Information filed electronically herewith are not intended to supersede prospectuses and Statement of Additional Information filed with Post-Effective Amendment No. 42 to Registration Statement No. 333-79311, filed on or about April 24, 2007. PROSPECTUS JULY 16, 2007 RIVERSOURCE RETIREMENT ADVISOR 4 ADVANTAGE(SM) VARIABLE ANNUITY RETIREMENT ADVISOR 4 SELECT(SM) VARIABLE ANNUITY RETIREMENT ADVISOR 4 ACCESS(SM) VARIABLE ANNUITY INDIVIDUAL FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITIES ISSUED BY: RIVERSOURCE LIFE INSURANCE COMPANY (RIVERSOURCE LIFE) 70100 Ameriprise Financial Center Minneapolis, MN 55474 Telephone: (800) 862-7919 ameriprise.com/variableannuities RIVERSOURCE VARIABLE ACCOUNT 10/RIVERSOURCE ACCOUNT MGA This prospectus contains information that you should know before investing in the RiverSource Retirement Advisor 4 Advantage Variable Annuity (RAVA 4 Advantage), the RiverSource Retirement Advisor 4 Select Variable Annuity (RAVA 4 Select), or the RiverSource Retirement Advisor 4 Access Variable Annuity (RAVA 4 Access). The information in this prospectus applies to all contracts unless stated otherwise. Prospectuses are also available for: - AIM Variable Insurance Funds - AllianceBernstein Variable Products Series Fund, Inc. - American Century Variable Portfolios, Inc - Columbia Funds Variable Insurance Trust - Credit Suisse Trust - Dreyfus Variable Investment Fund - Eaton Vance Variable Trust - Evergreen Variable Annuity Trust - Fidelity(R) Variable Insurance Products - Service Class 2 - Franklin(R) Templeton(R) Variable Insurance Products Trust (FTVIPT) - Class 2 - Goldman Sachs Variable Insurance Trust (VIT) - Janus Aspen Series: Service Shares - Legg Mason Variable Portfolios I, Inc. - MFS(R) Variable Insurance Trust(SM) - Neuberger Berman Advisers Management Trust - Oppenheimer Variable Account Funds - Service Shares - PIMCO Variable Investment Trust (VIT) - RiverSource(R) Variable Portfolio Funds - The Universal Institutional Funds, Inc. Van Kampen Life Investment Trust - Wanger Advisors Trust - Wells Fargo Variable Trust Please read the prospectuses carefully and keep them for future reference. The contracts provide for purchase payment credits which we may reverse under certain circumstances. Expenses may be higher and surrender charges may be higher and longer for contracts with purchase payment credits than for contracts without such credits. The amount of the credit may be more than offset by additional charges associated with the credit. THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN THIS CONTRACT IS NOT A DEPOSIT OF A BANK OR FINANCIAL INSTITUTION AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS CONTRACT INVOLVES INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. A Statement of Additional Information (SAI), dated the same date as this prospectus, is incorporated by reference into this prospectus. It is filed with the SEC and is available without charge by contacting RiverSource Life at the telephone number and address listed above. The table of contents of the SAI is on the last page of this prospectus. The SEC maintains an Internet site. This prospectus, the SAI and other information about the product are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). Variable annuities are insurance products that are complex investment vehicles. Before you invest, be sure to ask your financial advisor about the contract features, benefits, risks and fees, and whether the contract is appropriate for you, based upon your financial situation and objectives. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 1 The contracts and/or certain optional benefits described in this prospectus may not be available in all jurisdictions. This prospectus constitutes an offering or solicitation only in those jurisdictions where such offering or solicitation may lawfully be made. State variations are covered in a special contract form used in that state. This prospectus provides a general description of the contracts. Your actual contract and any riders or endorsements are the controlling documents. RiverSource Life has not authorized any person to give any information or to make any representations regarding the contracts other than those contained in this prospectus or the fund prospectuses. RiverSource Life offers several different annuities which your financial advisor may or may not be authorized to offer to you. Each annuity has different features and benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the annuity. The different features and benefits may include the investment and fund manager options, variations in interest rate amount and guarantees, credits, surrender charge schedules and access to your annuity account values. The fees and charges you will pay when buying, owning and surrendering money from the contracts we describe in this prospectus may be more or less than the fees and charges of other variable annuities we and our affiliates issue. You should ask your financial advisor about his or her ability to offer you other variable annuities we issue (which might have lower fees and charges than the contracts described in this prospectus). TABLE OF CONTENTS KEY TERMS................................................... 3 THE CONTRACT IN BRIEF....................................... 6 EXPENSE SUMMARY............................................. 8 CONDENSED FINANCIAL INFORMATION............................. 14 FINANCIAL STATEMENTS........................................ 14 THE VARIABLE ACCOUNT AND THE FUNDS.......................... 15 GUARANTEE PERIOD ACCOUNTS (GPAS)............................ 18 THE FIXED ACCOUNT........................................... 20 BUYING YOUR CONTRACT........................................ 21 CHARGES..................................................... 25 VALUING YOUR INVESTMENT..................................... 32 MAKING THE MOST OF YOUR CONTRACT............................ 34 SURRENDERS.................................................. 44 TSA -- SPECIAL PROVISIONS................................... 45 CHANGING OWNERSHIP.......................................... 45 BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT......... 47 OPTIONAL BENEFITS........................................... 48 THE ANNUITY PAYOUT PERIOD................................... 79 TAXES....................................................... 81 VOTING RIGHTS............................................... 84 SUBSTITUTION OF INVESTMENTS................................. 84 ABOUT THE SERVICE PROVIDERS................................. 85 ADDITIONAL INFORMATION...................................... 87 APPENDIX A: THE FUNDS....................................... 88 APPENDIX B: EXAMPLE -- MARKET VALUE ADJUSTMENT (MVA)........ 99 APPENDIX C: EXAMPLE -- SURRENDER CHARGES.................... 101 APPENDIX D: EXAMPLE -- OPTIONAL DEATH BENEFITS.............. 105 APPENDIX E: EXAMPLE -- OPTIONAL LIVING BENEFITS............. 109 APPENDIX F: ADDITIONAL RMD DISCLOSURE....................... 116 APPENDIX G: CONDENSED FINANCIAL INFORMATION (UNAUDITED)..... 118 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION............................................... 148
CORPORATE CONSOLIDATION On Dec. 31, 2006, American Enterprise Life Insurance Company and American Partners Life Insurance Company merged into their parent company, IDS Life Insurance Company (IDS Life). At that time, IDS Life changed its name to RiverSource Life Insurance Company. This merger helped simplify the overall corporate structure because the three life insurance companies were consolidated into one. This consolidation and renaming did not have any adverse effect on the features or benefits of any contract. 2 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS KEY TERMS These terms can help you understand details about your contract. ACCUMULATION UNIT: A measure of the value of each subaccount before annuity payouts begin. ANNUITANT: The person on whose life or life expectancy the annuity payouts are based. ANNUITY PAYOUTS: An amount paid at regular intervals under one of several plans. ASSUMED INVESTMENT RATE: The rate of return we assume your investments will earn when we calculate your initial annuity payout amount using the annuity table in your contract. The standard assumed investment rate we use is 5% but you may request we substitute an assumed investment rate of 3.5%. BAND 3 ANNUITIES: RAVA 4 Advantage and RAVA 4 Select contracts that are available for: - current or retired employees of Ameriprise Financial, Inc. or its subsidiaries and their spouses or domestic partners (employees), - current or retired Ameriprise financial advisors and their spouses or domestic partners (advisors), or - individuals investing an initial purchase payment of $1 million or more, with our approval (other individuals). BENEFICIARY: The person you designate to receive benefits in case of your death while the contract is in force. CLOSE OF BUSINESS: The time the New York Stock Exchange (NYSE) closes (4 p.m. Eastern time unless the NYSE closes earlier). CODE: The Internal Revenue Code of 1986, as amended. CONTRACT: A deferred annuity contract that permits you to accumulate money for retirement by making one or more purchase payments. It provides for lifetime or other forms of payouts beginning at a specified time in the future. CONTRACT VALUE: The total value of your contract before we deduct any applicable charges. CONTRACT YEAR: A period of 12 months, starting on the effective date of your contract and on each anniversary of the effective date. ENHANCED EARNINGS DEATH BENEFIT (EEB) AND ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. You can elect to purchase either the EEB or the EEP, subject to certain restrictions. FIXED ACCOUNT: Our general account which includes the Regular Fixed account and the Special DCA fixed account. Amounts you allocate to this account earn interest at rates that we declare periodically. FUNDS: Investment options under your contract. Unless an asset allocation program is in effect, you may allocate your purchase payments into subaccounts investing in shares of any or all of these funds. GUARANTEE PERIOD: The number of successive 12-month periods that a guaranteed interest rate is credited. GUARANTEE PERIOD ACCOUNTS (GPAS): A nonunitized separate account to which you may allocate purchase payments and purchase payment credits or transfer contract value of at least $1,000. These accounts have guaranteed interest rates for guarantee periods we declare when you allocate purchase payments and purchase payment credits or transfer contract value to a GPA. These guaranteed rates and periods of time may vary by state. Unless an exception applies, transfers or surrenders from a GPA done more than 30 days before the end of the guarantee period will receive a Market Value Adjustment, which may result in a gain or loss of principal. GUARANTEED MINIMUM ACCUMULATION BENEFIT RIDER (ACCUMULATION BENEFIT): This is an optional benefit that you can add to your contract for an additional charge. It is intended to provide you with a guaranteed contract value at the end of a specified waiting period regardless of the volatility inherent in the investments in the subaccounts. This rider requires participation in the Portfolio Navigator Asset Allocation Program. This rider is not available for RAVA 4 Access. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 3 GUARANTOR WITHDRAWAL BENEFIT FOR LIFE(SM) RIDER (GWB FOR LIFE(SM)): This is an optional benefit you can add to your contract for an additional charge. It is intended to provide a guaranteed withdrawal up to a certain amount each year from the contract, regardless of the investment performance of your contract before the annuity payments begin, until you have recovered at a minimum, all of your purchase payments plus any purchase payment credits. Under certain limited circumstances, it gives you the right to take limited withdrawals in each contract year until death. This rider requires participation in the Portfolio Navigator Asset Allocation Program. This rider is not available for RAVA 4 Access. MARKET VALUE ADJUSTMENT (MVA): A positive or negative adjustment assessed if any portion of a Guarantee Period Account is surrendered or transferred more than 30 days before the end of its guarantee period. MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) AND MAXIMUM FIVE-YEAR ANNIVERSARY VALUE DEATH BENEFIT (5-YEAR MAV): These are optional benefits you can add to your contract for an additional charge. Each is intended to provide additional death benefit protection in the event of fluctuating fund values. You can elect to purchase either the MAV or the 5-Year MAV, subject to certain restrictions. OWNER (YOU, YOUR): A natural person or persons who control the contract (decides on investment allocations, transfers, payout options, etc.). Usually, but not always, the owner is also the annuitant. The owner is responsible for taxes, regardless of whether he or she receives the contract's benefits. If the contract has a nonnatural person as the owner, "you, your" means the annuitant. PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM): This is an asset allocation program in which you are required to participate if you select the optional Accumulation Benefit rider, the optional GWB for Life rider or the optional SecureSource(SM) rider. If you do not select the Accumulation Benefit rider, the GWB for Life rider or the optional SecureSource(SM) rider, you may elect to participate in the PN program at no additional charge. PURCHASE PAYMENT CREDITS: An addition we make to your contract value. We base the amount of the credit on the surrender charge schedule you elect and/or total purchase payments. Purchase payment credits are not available under RAVA 4 Access contracts. QUALIFIED ANNUITY: A contract that you purchase to fund one of the following tax-deferred retirement plans that is subject to applicable federal law and any rules of the plan itself: - Individual Retirement Annuities (IRAs) under Section 408(b) of the Code - Roth IRAs under Section 408A of the Code - SIMPLE IRAs under Section 408(p) of the Code - Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code - Custodial and investment only plans under Section 401(a) of the Code - Tax-Sheltered Annuities (TSAs) under Section 403(b) of the Code A qualified annuity will not provide any necessary or additional tax deferral if it is used to fund a retirement plan that is already tax-deferred. All other contracts are considered NONQUALIFIED ANNUITIES. RETURN OF PURCHASE PAYMENTS DEATH BENEFIT (ROPP): This is an optional benefit that you can add to your contract for an additional charge if you are age 76 or older at contract issue that is intended to provide additional death benefit protection in the event of fluctuating fund values. ROPP is included in the standard death benefit for contract owners age 75 and under on the contract effective date at no additional cost. RIDER: You receive a rider to your contract when you purchase the EEB, EEP, MAV, 5-Year MAV, ROPP, Accumulation Benefit, GWB for Life and/or SecureSource(SM) rider. The rider adds the terms of the optional benefit to your contract. RIDER EFFECTIVE DATE: The date you add a rider to your contract. RIVERSOURCE LIFE: In this prospectus, "we," "us," "our" and "RiverSource Life" refer to RiverSource Life Insurance Company. 4 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS SECURESOURCE(SM) RIDERS: This is an optional benefit that you can add to your contract for an additional charge. SecureSource -- Single Life covers one person. SecureSource -- Joint Life covers two spouses jointly. The benefit is intended to provide guaranteed withdrawals up to a certain amount each year from the contract, regardless of the investment performance of your contract before the annuity payments begin until you have recovered, at a minimum, all of your purchase payments plus any purchase payment credits. Under certain limited circumstances, it gives you the right to take limited withdrawals in each contract year until death. These riders require participation in the Portfolio Navigator Asset Allocation program. These riders are not available for RAVA 4 Access. SETTLEMENT DATE: The date when annuity payouts are scheduled to begin. SPECIAL DOLLAR-COST AVERAGING (SPECIAL DCA) FIXED ACCOUNT: An account to which you may allocate new purchase payments of at least $10,000. Amounts you allocate to this account earn interest at rates that we declare periodically and will transfer into your specified subaccount allocations in six monthly transfers. SURRENDER VALUE: The amount you are entitled to receive if you make a full surrender from your contract. It is the contract value minus any applicable charges. VALUATION DATE: Any normal business day, Monday through Friday, on which the NYSE is open, up to the close of business. At the close of business, the next valuation date begins. We calculate the accumulation unit value of each subaccount on each valuation date. If we receive your purchase payment or any transaction request (such as a transfer or surrender request) at our home office before the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the valuation date we received your payment or transaction request. On the other hand, if we receive your purchase payment or transaction request at our home office at or after the close of business, we will process your payment or transaction using the accumulation unit value we calculate on the next valuation date. If you make a transaction request by telephone (including by fax), you must have completed your transaction by the close of business in order for us to process it using the accumulation unit value we calculate on that valuation date. If you were not able to complete your transaction before the close of business for any reason, including telephone service interruptions or delays due to high call volume, we will process your transaction using the accumulation unit value we calculate on the next valuation date. VARIABLE ACCOUNT: Separate subaccounts to which you may allocate purchase payments; each invests in shares of one fund. The value of your investment in each subaccount changes with the performance of the particular fund. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 5 THE CONTRACT IN BRIEF This prospectus describes three contracts. Each contract has different expenses. RAVA 4 Access does not have surrender charges, but it has the highest mortality and expense risk fees of the three contracts. RAVA 4 Select has a three-year surrender charge schedule and has lower mortality and expense risk fees than RAVA 4 Access. RAVA 4 Advantage offers a choice of a seven-year or a ten-year surrender charge schedule, and has the lowest mortality and expense risk fees of the three contracts. Your financial advisor can help you determine which contract is best suited to your needs based on factors such as your investment goals and how long you intend to keep your contract. The information in this prospectus applies to all contracts unless stated otherwise. PURPOSE: The purpose of each contract is to allow you to accumulate money for retirement or a similar long-term goal. You do this by making one or more purchase payments. You may allocate your purchase payments to the GPAs, regular fixed account, subaccounts and/or Special DCA fixed account under the contract; however, you risk losing amounts you invest in the subaccounts of the variable account. These accounts, in turn, may earn returns that increase the value of the contract. You may be able to purchase an optional benefit to reduce the investment risk you assume under your contract. Beginning at a specified time in the future called the settlement date, the contract provides lifetime or other forms of payouts of your contract value (less any applicable premium tax). BUYING A CONTRACT: There are many factors to consider carefully before you buy a variable annuity and any optional benefit rider. Variable annuities -- with or without optional benefit riders -- are not right for everyone. MAKE SURE YOU HAVE ALL THE FACTS YOU NEED BEFORE YOU PURCHASE A VARIABLE ANNUITY OR CHOOSE AN OPTIONAL BENEFIT RIDER. Some of the factors you may wish to consider include: - "Tax Free" Exchanges: It may not be advantageous for you to purchase this contract in exchange for, or in addition to, an existing annuity or life insurance policy. Generally, you can exchange one annuity for another in a "tax-free" exchange under Section 1035 of the Code. You also generally can exchange a life insurance policy for an annuity. However, before making an exchange, you should compare both contracts carefully because the features and benefits may be different. Fees and charges may be higher or lower on your old contract than on this contract. You may have to pay a surrender charge when you exchange out of your old contract and a new surrender charge period will begin when you exchange into this contract. If the exchange does not qualify for Section 1035 treatment, you also may have to pay federal income tax on the exchange. You should not exchange your old contract for this contract, or buy this contract in addition to your old contract, unless you determine it is in your best interest. - Tax-deferred retirement plans: Most annuities have a tax-deferred feature. So do many retirement plans under the Code. As a result, when you use a qualified annuity to fund a retirement plan that is tax-deferred, your contract will not provide any necessary or additional tax deferral for that retirement plan. A qualified annuity has features other than tax deferral that may help you reach your retirement goals. In addition, the Code subjects retirement plans to required withdrawals triggered at a certain age. These mandatory withdrawals are called required minimum distributions ("RMDs"). RMDs may reduce the value of certain death benefits and optional riders (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). You should consult your tax advisor before you purchase the contract as a qualified annuity for an explanation of the tax implications to you. - Taxes: Generally, income earned on your contract value grows tax-deferred until you make withdrawals or begin to receive payouts. (Under certain circumstances, IRS penalty taxes may apply.) The tax treatment of qualified and nonqualified annuities differs. Even if you direct payouts to someone else, you will be taxed on the income if you are the owner. (p. 81) - Your age: If you are an older person, you may not necessarily have a need for tax deferral, retirement income or a death benefit. Older persons who are considering buying a contract including any optional benefits may find it helpful to consult with or include a family member, friend or other trusted advisor in the decision making process before buying a contract. - How long you plan to keep your contract: variable annuities are not short-term liquid investments. RAVA 4 Advantage and RAVA 4 Select contracts have surrender charges. RAVA 4 Access contract does not have a surrender charge schedule, but it has a higher mortality and expense risk fees than RAVA 4 Advantage and RAVA 4 Select. All contracts offer an annuity payout plan called Annuity Payout Plan E, which imposes a surrender charge only if you elect to surrender remaining variable payouts available under Annuity Payout Plan E. (p. 27) Does the contract meet your current and anticipated future needs for liquidity? - If you can afford the contract: are your annual income and assets adequate to buy the contract and any optional benefit riders you may choose? - The fees and expenses you will pay when buying, owning and withdrawing money from this contract. (p. 25) 6 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - How and when you plan to take money from the contract: under current tax law, withdrawals, including withdrawals made under optional benefit riders, are taxed differently than annuity payouts. In addition, certain withdrawals may be subject to a federal income tax penalty. (p. 65) - Your investment objectives, how much experience you have in managing investments and how much risk you are you willing to accept. - Short-term trading: if you plan to manage your investment in the contract by frequent or short-term trading, this contract is not suitable for you and you should not buy it. (p. 39) Your financial advisor will help you complete and submit an application. We are required by law to obtain certain personal information from you which will be used by us to verify your identity. If you do not provide us the information, we may not be able to issue your contract. If we are unable to verify your identity, we reserve the right to reject your application or take such other steps as we deem reasonable. Applications are subject to acceptance at our home office. You may buy a nonqualified annuity or a qualified annuity. After your initial purchase payment, you have the option of making additional purchase payments in the future. (p. 22) FREE LOOK PERIOD: You may return your contract to your financial advisor or to our administrative office within the time stated on the first page of your contract and receive a full refund of the contract value. We will not deduct any contract charges or fees. However, you bear the investment risk from the time of purchase until you return the contract; the refund amount may be more or less than the payment you made. (EXCEPTION: If the law requires, we will refund all of your purchase payments.) ACCOUNTS: Generally, you may allocate your purchase payments among the: - the subaccounts of the variable account, each of which invests in a fund with a particular investment objective. The value of each subaccount varies with the performance of the particular fund in which it invests. We cannot guarantee that the value at the settlement date will equal or exceed the total purchase payments you allocate to the subaccounts. (p. 15) - the GPAs which earn interest at rates declared when you make an allocation to that account. Some states restrict the amount you can allocate to these accounts. The required minimum investment in each GPA is $1,000. These accounts may not be available in all states. (p. 18) - the regular fixed account, which earns interest at rates that we adjust periodically. Purchase payment allocations to the regular fixed account may be subject to special restrictions. For RAVA 4 Access contracts, you cannot select the regular fixed account unless it is included in the PN program model portfolio (model portfolio) you selected. (p. 20) - the Special DCA fixed account, when available. (p. 20) TRANSFERS: Subject to certain restrictions, you currently may redistribute your contract value among the subaccounts until annuity payouts begin, and once per contract year after annuity payouts begin. Transfers out of the GPAs done more than 30 days before the end of the Guarantee Period will be subject to an MVA, unless an exception applies. You may establish automated transfers among the accounts. You may not transfer existing amounts to the Special DCA fixed account. GPAs and regular fixed account transfers are subject to special restrictions. (p. 39) SURRENDERS: You may surrender all or part of your contract value at any time before the settlement date. You also may establish automated partial surrenders. Surrenders may be subject to charges and income taxes (including an IRS penalty if you surrender prior to your reaching age 59 1/2) and may have other tax consequences; also, certain restrictions apply. (p. 44) BENEFITS IN CASE OF DEATH: If you die before annuity payouts begin, we will pay the beneficiary an amount at least equal to the contract value, except in the case of a purchase payment credit reversal. (p. 47) OPTIONAL BENEFITS: These contracts offer optional features that are available for additional charges if you meet certain criteria. Optional benefits may require the use of a PN model portfolio which may limit transfers and allocations; may limit the timing, amount and allocation of purchase payments; and may limit the amount of partial surrenders that can be taken under the optional benefit during a contract year. (p. 48) ANNUITY PAYOUTS: You can apply your contract value to an annuity payout plan that begins on the settlement date. You may choose from a variety of plans to make sure that payouts continue as long as you like. If you purchased a qualified annuity, the payout schedule must meet IRS requirements. We can make payouts on a fixed or variable basis, or both. Total monthly payouts may include amounts from each subaccount and the regular fixed account. During the annuity payout period, you cannot be invested in more than five subaccounts at any one time unless we agree otherwise. (p. 79) RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 7 EXPENSE SUMMARY THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY WHEN BUYING, OWNING AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT YOU BUY THE CONTRACT OR SURRENDER THE CONTRACT. STATE PREMIUM TAXES ALSO MAY BE DEDUCTED. CONTRACT OWNER TRANSACTION EXPENSES SURRENDER CHARGE FOR RAVA 4 ADVANTAGE: (Contingent deferred sales load as a percentage of purchase payment surrendered) You select either a seven-year or ten-year surrender charge schedule at the time of application.*
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED NUMBER OF COMPLETED YEARS FROM DATE OF EACH SURRENDER CHARGE YEARS FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE PURCHASE PAYMENT PERCENTAGE 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7+ 0 7 4 8 3 9 2 10+ 0
* In Alaska, Arizona, Connecticut, Georgia, Hawaii, Illinois, Iowa, Minnesota, Mississippi, Montana, North Carolina, Oregon, Utah and Washington, the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama and Massachusetts, surrender charges are waived after the tenth contract anniversary. SURRENDER CHARGE FOR RAVA 4 SELECT (EXCEPT TEXAS): (Contingent deferred sales load as a percentage of purchase payment surrendered)
YEARS FROM SURRENDER CHARGE CONTRACT DATE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE FOR RAVA 4 SELECT IN TEXAS: (Contingent deferred sales load as a percentage of purchase payment surrendered)
NUMBER OF COMPLETED YEARS FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE 0 8% 1 7 2 6 Thereafter 0
There are no surrender charges after the third contract anniversary. 8 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS SURRENDER CHARGE FOR RAVA 4 ACCESS: 0% SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will be 5.17% if the assumed investment rate is 3.5% and 6.67% if the assumed investment rate is 5%. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. (See "Charges -- Surrender Charge" and "The Annuity Payout Period -- Annuity Payout Plans.") THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING FUND FEES AND EXPENSES. ANNUAL CONTRACT ADMINISTRATIVE CHARGE Maximum: $50* Current: $30
(We will waive this $30 charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary, except at full surrender.) * In certain states and for certain contracts we have waived our right to increase the contract administrative charge. ANNUAL VARIABLE ACCOUNT EXPENSES (Total annual variable account expenses as a percentage of average daily subaccount value)
MORTALITY AND EXPENSE RISK FEE: RAVA 4 ADVANTAGE RAVA 4 SELECT RAVA 4 ACCESS FOR NONQUALIFIED ANNUITIES 1.05% 1.30% 1.45% FOR QUALIFIED ANNUITIES .85% 1.10% 1.25%
OPTIONAL RIDER FEES OPTIONAL DEATH BENEFITS (As a percentage of contract value charged annually at the contract anniversary. The fee applies only if you elect the optional rider.) ROPP RIDER FEE Maximum: 0.30% Current: 0.20% MAV RIDER FEE Maximum: 0.35% Current: 0.25% 5-YEAR MAV RIDER FEE Maximum: 0.20% Current: 0.10% EEB RIDER FEE Maximum: 0.40% Current: 0.30% EEP RIDER FEE Maximum: 0.50% Current: 0.40%
OPTIONAL LIVING BENEFITS ACCUMULATION BENEFIT RIDER FEE Maximum: 2.50% Current: 0.60%
(Charged annually as a percentage of contract value or the minimum contract accumulation value, whichever is greater. The fee applies only if you elect the optional rider.) GWB FOR LIFE RIDER FEE Maximum: 1.50% Current: 0.65%
(Charged annually at the contract anniversary as a percentage of contract value or the total Remaining Benefit Amount, whichever is greater. The fee applies only if you elect the optional rider.) SECURESOURCE(SM) - SINGLE LIFE RIDER FEE Maximum: 1.50% Current: 0.65% SECURESOURCE(SM) - JOINT LIFE RIDER FEE Maximum: 1.75% Current: 0.85%
(Charged annually at the contract anniversary as a percentage of contract value or the total Remaining Benefit Amount, whichever is greater. The fee applies only if you elect the optional rider.) RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 9 ANNUAL OPERATING EXPENSES OF THE FUNDS THE NEXT TWO TABLES DESCRIBE THE OPERATING EXPENSES OF THE FUNDS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. THESE OPERATING EXPENSES ARE FOR THE FISCAL YEAR ENDED DEC. 31, 2006, UNLESS OTHERWISE NOTED. THE FIRST TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS. THE SECOND TABLE SHOWS THE FEES AND EXPENSES CHARGED BY EACH FUND. MORE DETAIL CONCERNING EACH FUND'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUS. MINIMUM AND MAXIMUM TOTAL ANNUAL OPERATING EXPENSES FOR THE FUNDS(A) (Including management fee, distribution and/or service (12b-1) fees and other expenses)
MINIMUM MAXIMUM Total expenses before fee waivers and/or expense reimbursements 0.51% 2.89%
(a) Each fund deducts management fees and other expenses from fund assets. Fund assets include amounts you allocate to a particular fund. Funds may also charge 12b-1 fees that are used to finance any activity that is primarily intended to result in the sale of fund shares. Because 12b-1 fees are paid out of fund assets on an on-going basis, you may pay more if you select subaccounts investing in funds that have adopted 12b-1 plans than if you select subaccounts investing in funds that have not adopted 12b-1 plans. The fund or the fund's affiliates may pay us or our affiliates for promoting and supporting the offer, sale and servicing of fund shares. In addition, the fund's distributor and/or investment adviser, transfer agent or their affiliates may pay us or our affiliates for various services we or our affiliates provide. The amount of these payments will vary by fund and may be significant. See "The Variable Accounts and the Funds" for additional information, including potential conflicts of interest these payments may create. For a more complete description of each fund's fees and expenses and important disclosure regarding payments the fund and/or its affiliates make, please review the fund's prospectus and SAI. TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA 4 ADVANTAGE, RAVA 4 SELECT AND RAVA 4 ACCESS* (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND FEES GROSS TOTAL MANAGEMENT 12B-1 OTHER AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES AIM V.I. Capital 0.61% 0.25% 0.30% --% 1.16%(1) Appreciation Fund, Series II Shares AIM V.I. Capital 0.75 0.25 0.34 0.01 1.35(1),(2) Development Fund, Series II Shares AIM V.I. Financial 0.75 0.25 0.37 0.01 1.38(1) Services Fund, Series II Shares AIM V.I. Global Health 0.75 0.25 0.35 0.01 1.36(1) Care Fund, Series II Shares AIM V.I. International 0.72 0.25 0.38 0.01 1.36(1) Growth Fund, Series II Shares AllianceBernstein VPS 0.75 0.25 0.18 -- 1.18 Global Technology Portfolio (Class B) AllianceBernstein VPS 0.55 0.25 0.06 -- 0.86 Growth and Income Portfolio (Class B) AllianceBernstein VPS 0.75 0.25 0.10 -- 1.10 International Value Portfolio (Class B) AllianceBernstein VPS 0.75 0.25 0.08 -- 1.08 Large Cap Growth Portfolio (Class B) American Century VP Mid 0.90 0.25 -- -- 1.15 Cap Value, Class II American Century VP 0.90 0.25 -- -- 1.15 Ultra(R), Class II American Century VP Value, 0.83 0.25 -- -- 1.08 Class II Columbia High Yield Fund, 0.55 0.25 0.32 -- 1.12(3) Variable Series, Class B Columbia Marsico Growth 0.74 -- 0.27 -- 1.01(3) Fund, Variable Series, Class A Columbia Marsico 0.80 0.25 0.32 -- 1.37(3) International Opportunities Fund, Variable Series, Class B Credit Suisse 0.50 0.25 0.51 -- 1.26(4) Trust - Commodity Return Strategy Portfolio Dreyfus Variable 0.75 0.25 0.28 -- 1.28 Investment Fund International Equity Portfolio, Service Shares Dreyfus Variable 1.00 0.25 0.19 -- 1.44(5) Investment Fund International Value Portfolio, Service Shares Eaton Vance VT 0.57 0.25 0.37 -- 1.19 Floating-Rate Income Fund Evergreen VA Fundamental 0.57 0.25 0.17 0.01 1.00 Large Cap Fund - Class 2 Evergreen VA International 0.40 0.25 0.28 -- 0.93 Equity Fund - Class 2 Fidelity(R) VIP 0.57 0.25 0.09 -- 0.91 Contrafund(R) Portfolio Service Class 2 Fidelity(R) VIP Mid Cap 0.57 0.25 0.11 -- 0.93 Portfolio Service Class 2 Fidelity(R) VIP Overseas 0.72 0.25 0.16 -- 1.13 Portfolio Service Class 2 FTVIPT Franklin Global 0.47 0.25 0.03 -- 0.75(6) Real Estate Securities Fund - Class 2 FTVIPT Franklin Small Cap 0.51 0.25 0.17 0.03 0.96(7) Value Securities Fund - Class 2 FTVIPT Mutual Shares 0.60 0.25 0.21 -- 1.06 Securities Fund - Class 2
10 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND UNDERLYING RAVA 4 ADVANTAGE, RAVA 4 SELECT AND RAVA 4 ACCESS* (CONTINUED) (Before fee waivers and/or expense reimbursements, if applicable, as a percentage of average daily net assets)
ACQUIRED FUND FEES GROSS TOTAL MANAGEMENT 12B-1 OTHER AND ANNUAL FEES FEES EXPENSES EXPENSES** EXPENSES Goldman Sachs VIT 0.65% --% 0.07% --% 0.72%(8) Structured U.S. Equity Fund - Institutional Shares Janus Aspen Series Large 0.64 0.25 0.05 -- 0.94 Cap Growth Portfolio: Service Shares Legg Mason Partners 0.75 -- 0.21 -- 0.96 Variable Small Cap Growth Portfolio, Class I MFS(R) Investors Growth 0.75 0.25 0.12 -- 1.12 Stock Series - Service Class MFS(R) Total Return 0.75 0.25 0.10 -- 1.10(9) Series - Service Class MFS(R) Utilities 0.75 0.25 0.11 -- 1.11 Series - Service Class Neuberger Berman Advisers 1.15 0.25 0.27 -- 1.67(10) Management Trust International Portfolio (Class S) Neuberger Berman Advisers 0.85 0.25 0.09 -- 1.19(11) Management Trust Socially Responsive Portfolio (Class S) Oppenheimer Global 0.62 0.25 0.04 -- 0.91(12) Securities Fund/VA, Service Shares Oppenheimer Main Street 0.72 0.25 0.03 -- 1.00(12) Small Cap Fund/VA, Service Shares Oppenheimer Strategic Bond 0.62 0.25 0.02 -- 0.89(12) Fund/VA, Service Shares Oppenheimer Value Fund/VA, 0.75 0.24 1.90 -- 2.89(12) Service Shares PIMCO VIT All Asset 0.18 0.25 0.25 0.61 1.29 Portfolio, Advisor Share Class RiverSource(R) Variable 0.56 0.13 0.15 -- 0.84(13),(14) Portfolio - Balanced Fund RiverSource(R) Variable 0.33 0.13 0.14 -- 0.60(13) Portfolio - Cash Management Fund RiverSource(R) Variable 0.48 0.13 0.32 -- 0.93(13),(15) Portfolio - Core Bond Fund RiverSource(R) Variable 0.46 0.13 0.15 -- 0.74(13) Portfolio - Diversified Bond Fund RiverSource(R) Variable 0.64 0.13 0.14 -- 0.91(13),(14) Portfolio - Diversified Equity Income Fund RiverSource(R) Variable 1.13 0.13 0.25 -- 1.51(13),(14) Portfolio - Emerging Markets Fund RiverSource(R) Variable 0.72 0.13 0.17 -- 1.02(13),(14),(15) Portfolio - Fundamental Value Fund RiverSource(R) Variable 0.70 0.13 0.17 -- 1.00(13) Portfolio - Global Bond Fund RiverSource(R) Variable 0.44 0.13 0.15 -- 0.72(13),(15) Portfolio - Global Inflation Protected Securities Fund RiverSource(R) Variable 0.71 0.13 0.17 -- 1.01(13),(14) Portfolio - Growth Fund RiverSource(R) Variable 0.59 0.13 0.16 -- 0.88(13) Portfolio - High Yield Bond Fund RiverSource(R) Variable 0.61 0.13 0.16 -- 0.90(13),(15) Portfolio - Income Opportunities Fund RiverSource(R) Variable 0.76 0.13 0.19 -- 1.08(13),(14) Portfolio - International Opportunity Fund RiverSource(R) Variable 0.57 0.13 0.13 -- 0.83(13),(14) Portfolio - Large Cap Equity Fund RiverSource(R) Variable 0.60 0.13 0.50 -- 1.23(13),(15) Portfolio - Large Cap Value Fund RiverSource(R) Variable 0.60 0.13 0.15 -- 0.88(13),(14),(15) Portfolio - Mid Cap Growth Fund RiverSource(R) Variable 0.72 0.13 0.22 -- 1.07(13),(14),(15) Portfolio - Mid Cap Value Fund RiverSource(R) Variable 0.22 0.13 0.16 -- 0.51(13),(15) Portfolio - S&P 500 Index Fund RiverSource(R) Variable 0.72 0.13 0.37 -- 1.22(13),(14),(15) Portfolio - Select Value Fund RiverSource(R) Variable 0.48 0.13 0.16 -- 0.77(13) Portfolio - Short Duration U.S. Government Fund RiverSource(R) Variable 0.72 0.13 0.23 -- 1.08(13),(14) Portfolio - Small Cap Advantage Fund RiverSource(R) Variable 1.00 0.13 0.19 -- 1.32(13),(14),(15) Portfolio - Small Cap Value Fund Van Kampen Life Investment 0.56 0.25 0.03 -- 0.84 Trust Comstock Portfolio, Class II Shares Van Kampen UIF Global Real 0.85 0.35 0.66 -- 1.86(16) Estate Portfolio, Class II Shares Van Kampen UIF Mid Cap 0.75 0.35 0.31 -- 1.41(16) Growth Portfolio, Class II Shares Wanger International Small 0.91 -- 0.10 -- 1.01 Cap Wanger U.S. Smaller 0.90 -- 0.05 -- 0.95 Companies Wells Fargo Advantage VT 0.73 0.25 0.20 -- 1.18 Opportunity Fund Wells Fargo Advantage VT 0.75 0.25 0.23 -- 1.23 Small Cap Growth Fund
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 11 * The Funds provided the information on their expenses and we have not independently verified the information. ** Includes fees and expenses incurred indirectly by the Fund as a result of its investment in other investment companies (also referred to as acquired funds). (1) The Fund's advisor has contractually agreed to waive advisory fees and/or reimburse expenses of Series II shares to the extent necessary to limit total annual expenses (subject to certain exclusions) of Series II shares to 1.45% of average daily net assets. This expense limitation is in effect through at least April 30, 2008. (2) Through April 30, 2008, the Fund's advisor has contractually agreed to waive a portion of its advisory fees. After fee waivers and expense reimbursements net expenses would be 1.34% for AIM V.I. Capital Development Fund, Series II Shares. (3) The figures contained in the table are based on amounts incurred during the Fund's most recent fiscal year and have been adjusted, as necessary, to reflect current service provider fees. The Fund's Investment Adviser and Distributor have contractually agreed to waive advisory fees and reimburse the Fund for certain expenses (subject to certain exclusions) through April 30, 2008. After fee waivers and expense reimbursements net expenses would be 0.66% for Columbia High Yield Fund, Variable Series, Class B. There is no guarantee that these waivers and/or limitations will continue after April 30, 2008. (4) Credit Suisse fee waivers are voluntary and may be discontinued at any time. After fee waivers and expense reimbursements net expenses would be 0.95% for Credit Suisse Trust - Commodity Return Strategy Portfolio. (5) The Dreyfus Corporation has agreed, until Dec. 31, 2007, to waive receipt of its fees and/or assume the expenses of the portfolio so that the net expenses (subject to certain exclusions) do not exceed 1.40% for Dreyfus Variable Investment Fund International Value Portfolio, Service Shares. (6) The Fund's fees and expenses have been restated as if the Fund's new investment management and fund administration agreements had been in place for the fiscal year ended Dec. 31, 2006. The manager and administrator, however, have contractually agreed in advance to waive or limit their respective fees so that the increase in investment management and fund administration fees paid by the Fund are phased in over a five year period, with there being no increase in the rate of such fees for the first year ending April 30, 2008. For each of the four years thereafter through April 30, 2012, the manager and administrator will receive one-fifth of the increase in the rate of fees. Beginning May 1, 2012, the full new investment management and administration fees will then be in effect. (7) The manager has agreed in advance to reduce its fee from assets invested by the Fund in a Franklin Templeton money market fund (the acquired fund) to the extent that the Fund's fees and expenses are due to those of the acquired fund. This reduction is required by the Trust's board of trustees and an exemptive order of the Securities and Exchange Commission (SEC). After fee reductions net expenses would be 0.93% for FTVIPT Franklin Small Cap Value Securities Fund - Class 2. (8) "Other expenses" include transfer agency fees and expenses equal on an annualized basis to 0.04% of the average daily net assets of the Fund plus all other ordinary expenses not detailed in the table above. The Investment Adviser has voluntarily agreed to limit "Other expenses" (subject to certain exclusions) to the extent that such expenses exceed, on an annual basis, 0.044% of the Fund's average daily net assets for Goldman Sachs VIT Structured U.S. Equity Fund - Institutional Shares. The Investment Adviser may cease or modify the expense limitations at its discretion at anytime. If this occurs, other expenses and total annual operating expenses may increase without shareholder approval. (9) The Fund's management fee as set forth in its Investment Advisory Agreement is 0.75% of average daily net assets annually. MFS has agreed in writing to reduce its management fee to 0.65% of average daily net assets in excess of $3 billion. For the Fund's most recent fiscal year, the effective management fee was 0.73% of average daily net assets. This written agreement will remain in effect until modified by the Fund's Board of Trustees. (10) Class S shares of the International Portfolio have a redemption fee of 1.00% for exchanges or redemptions on shares held less than 60 days. The redemption fee is paid to the Portfolio. (11) Neuberger Berman Management Inc. ("NBMI") has undertaken through Dec. 31, 2010, to waive fees and/or reimburse certain operating expenses, including the compensation of NBMI and excluding taxes, interest, extraordinary expenses, brokerage commissions and transaction costs, that exceed, in the aggregate, 1.17% of the average daily net asset value. The expense limitation arrangement for the Portfolio is contractual and any excess expenses can be repaid to NBMI within three years of the year incurred, provided such recoupment would not cause the Portfolio to exceed its respective limitation. (12) The "Other expenses" in the table are based on, among other things, the fees the Fund would have paid if the transfer agent had not waived a portion of its fee under a voluntary undertaking to the Fund to limit these fees to 0.35% of average daily net assets per fiscal year for all classes. That undertaking may be amended or withdrawn at any time. For the Fund's fiscal year ended Dec. 31, 2006, the transfer agent fees did not exceed this expense limitation. The Manager will waive fees and/or reimburse Fund expenses in an amount equal to the indirect management fees incurred through the Fund's investment in Oppenheimer Institutional Money Market Fund. After fee waivers and expense reimbursements, the net expenses would have been 0.88% for Oppenheimer Strategic Bond Fund/VA, Service Shares. (13) The Fund's expense figures are based on actual expenses for the four month period ended Dec. 31, 2006, adjusted to an annual basis. (14) Management fees include the impact of a performance incentive adjustment fee that decreased the management fee by 0.01% for RiverSource(R) Variable Portfolio - Fundamental Value Fund, 0.10% for RiverSource(R) Variable Portfolio - Mid Cap Growth Fund, 0.06% for RiverSource(R) Variable Portfolio - Select Value Fund and 0.07% for RiverSource(R) Variable Portfolio - Small Cap Advantage Fund. Includes the impact of a performance incentive adjustment that increased the management fee by 0.04% for RiverSource(R) Variable Portfolio - Balanced Fund, 0.07% for RiverSource(R) Variable Portfolio - Diversified Equity Income Fund, 0.04% for RiverSource(R) Variable Portfolio - Emerging Markets Fund, 0.11% for RiverSource(R) Variable Portfolio - Growth Fund, 0.01% for RiverSource(R) Variable Portfolio - International Opportunity Fund, 0.01% for RiverSource(R) Variable Portfolio - Large Cap Equity Fund, 0.02% for RiverSource(R) Variable Portfolio - Mid Cap Value Fund and 0.05% for RiverSource(R) Variable Portfolio - Small Cap Value Fund. (15) RiverSource Investments, LLC and its affiliates have contractually agreed to waive certain fees and to absorb certain expenses until Dec. 31, 2007, unless sooner terminated at the discretion of the Fund's Board. Any amount waived will not be reimbursed by the Fund. Under this agreement, net expenses (excluding fees and expenses of acquired funds), before giving effect to any applicable performance incentive adjustment, will not exceed: 0.83% for RiverSource(R) Variable Portfolio - Core Bond Fund, 1.07% for RiverSource(R) Variable Portfolio - Fundamental Value Fund, 0.72% for RiverSource(R) Variable Portfolio - Global Inflation Protected Securities Fund, 0.99% for RiverSource(R) Variable Portfolio - Income Opportunities Fund, 1.05% for RiverSource(R) Variable Portfolio - Large Cap Value Fund, 1.00% for RiverSource(R) Variable Portfolio - Mid Cap Growth Fund, 1.08% for RiverSource(R) Variable Portfolio - Mid Cap Value Fund, 0.495% for RiverSource(R) Variable Portfolio - S&P 500 Index Fund, 1.00% for RiverSource(R) Variable Portfolio - Select Value Fund and 1.20% for RiverSource(R) Variable Portfolio - Small Cap Value Fund. (16) The fees disclosed reflect gross ratios prior to any voluntary waivers/reimbursements of expenses by the adviser. The adviser has voluntarily agreed to waive a portion of or all of its management fee and/or reimburse expenses to the extent necessary to limit total annual operating expenses (subject to certain exclusions). Additionally, the distributor has agreed to voluntarily waive a portion of the 12b-1 fee for Class II shares. After these fee waivers/reimbursements, net expenses would have been 1.40% for Van Kampen UIF Global Real Estate Portfolio, Class II Shares and 1.15% for Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares. 12 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THESE CONTRACTS WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE YOUR TRANSACTION EXPENSES, CONTRACT ADMINISTRATIVE CHARGES(1), VARIABLE ACCOUNT ANNUAL EXPENSES AND FUND FEES AND EXPENSES. THESE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THESE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR. MAXIMUM EXPENSES. These examples assume the most expensive combination of contract features and benefits and the maximum fees and expenses of any of the funds. They assume that you select the optional MAV, EEP and Accumulation Benefit(2), if available. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule (3) $1,538.82 $2,963.95 $4,221.82 $6,842.71 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 1,438.82 2,863.95 4,021.82 6,642.71 RAVA 4 SELECT 1,465.57 2,936.26 3,629.88 6,802.68 RAVA 4 SELECT - TEXAS 1,565.57 2,836.26 3,629.88 6,802.68 RAVA 4 ACCESS 525.11 1,571.37 2,612.39 5,192.14 IF YOU DO NOT SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule (3) $738.82 $2,163.95 $3,521.82 $6,642.71 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 738.82 2,163.95 3,521.82 6,642.71 RAVA 4 SELECT 765.57 2,236.26 3,629.88 6,802.68 RAVA 4 SELECT - TEXAS 765.57 2,236.26 3,629.88 6,802.68 RAVA 4 ACCESS 525.11 1,571.37 2,612.39 5,192.14
IF YOU SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule (3) $1,518.32 $2,908.26 $4,138.16 $6,717.05 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 1,418.32 2,808.26 3,938.16 6,517.05 RAVA 4 SELECT 1,445.07 2,880.89 3,547.19 6,680.50 RAVA 4 SELECT - TEXAS 1,545.07 2,780.89 3,547.19 6,680.50 RAVA 4 ACCESS 504.61 1,513.13 2,520.71 5,035.63 IF YOU DO NOT SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule (3) $718.32 $2,108.26 $3,438.16 $6,517.05 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 718.32 2,108.26 3,438.16 6,517.05 RAVA 4 SELECT 745.07 2,180.89 3,547.19 6,680.50 RAVA 4 SELECT - TEXAS 745.07 2,180.89 3,547.19 6,680.50 RAVA 4 ACCESS 504.61 1,513.13 2,520.71 5,035.63
MINIMUM EXPENSES. These examples assume the least expensive combination of contract features and benefits and the minimum fees and expenses of any of the funds. They assume that you do not select any optional benefits. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
IF YOU SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule (3) $961.75 $1,301.83 $1,565.32 $2,087.23 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 861.75 1,201.83 1,365.32 1,887.23 RAVA 4 SELECT 888.50 1,283.29 1,003.06 2,172.39 RAVA 4 SELECT - TEXAS 988.50 1,183.29 1,003.06 2,172.39 RAVA 4 ACCESS 204.28 631.15 1,083.64 2,337.26 IF YOU DO NOT SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: NONQUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule (3) $161.75 $501.83 $ 865.32 $1,887.23 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 161.75 501.83 865.32 1,887.23 RAVA 4 SELECT 188.50 583.29 1,003.06 2,172.39 RAVA 4 SELECT - TEXAS 188.50 583.29 1,003.06 2,172.39 RAVA 4 ACCESS 204.28 631.15 1,083.64 2,337.26
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 13
IF YOU SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule (3) $941.25 $1,239.12 $1,458.75 $1,863.72 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 841.25 1,139.12 1,258.75 1,663.72 RAVA 4 SELECT 868.00 1,220.91 897.65 1,954.53 RAVA 4 SELECT - TEXAS 968.00 1,120.91 897.65 1,954.53 RAVA 4 ACCESS 183.78 568.97 978.89 2,122.66 IF YOU DO NOT SURRENDER YOUR CONTRACT OR IF YOU SELECT AN ANNUITY PAYOUT PLAN AT THE END OF THE APPLICABLE TIME PERIOD: QUALIFIED ANNUITY 1 YEAR 3 YEARS 5 YEARS 10 YEARS RAVA 4 ADVANTAGE With a ten-year surrender charge schedule (3) $141.25 $439.12 $758.75 $1,663.72 RAVA 4 ADVANTAGE With a seven-year surrender charge schedule 141.25 439.12 758.75 1,663.72 RAVA 4 SELECT 168.00 520.91 897.65 1,954.53 RAVA 4 SELECT - TEXAS 168.00 520.91 897.65 1,954.53 RAVA 4 ACCESS 183.78 568.97 978.89 2,122.66
(1) In these examples, the contract administrative charge is approximated as a .018% charge for RAVA 4 Advantage, a .029% charge for RAVA 4 Select, a .029% for RAVA 4 Select - Texas, and .033% for RAVA 4 Access. These percentages were determined by dividing the total amount of the contract administrative charges collected during the year that are attributable to each contract by the total average net assets that are attributable to that contract. (2) Because these examples are intended to illustrate the most expensive combination of contract features, the maximum annual fee for each optional rider is reflected rather than the fee that is currently being charged. (3) In Alaska, Arizona, Connecticut, Georgia, Hawaii, Illinois, Iowa, Minnesota, Mississippi, Montana, North Carolina, Oregon, Utah and Washington, your expenses would be slightly lower due to the modified ten-year surrender charge schedule. CONDENSED FINANCIAL INFORMATION You can find unaudited condensed financial information for the subaccounts in Appendix G. We do not include any condensed financial information for subaccounts that are new and did not have any activity as of the financial statement date. FINANCIAL STATEMENTS You can find our audited financial statements and the audited financial statements of the subaccounts with history in the SAI. The SAI does not include audited financial statements for subaccounts that are new and have no activity as of the financial statement date. 14 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS THE VARIABLE ACCOUNT AND THE FUNDS THE VARIABLE ACCOUNT: The variable account was established under Minnesota law on Aug. 23, 1995, and the subaccounts are registered together as a single unit investment trust under the Investment Company Act of 1940 (the 1940 Act). This registration does not involve any supervision of our management or investment practices and policies by the SEC. All obligations arising under the contracts are general obligations of RiverSource Life. The variable account meets the definition of a separate account under federal securities laws. We credit or charge income, capital gains and capital losses of each subaccount only to that subaccount. State insurance law prohibits us from charging a subaccount with liabilities of any other subaccount or of our general business. The variable account includes other subaccounts that are available under contracts that are not described in this prospectus. Although the Internal Revenue Service (IRS) has issued some guidance on investor control, the U.S. Treasury and the IRS may continue to examine this aspect of variable contracts and provide additional guidance on investor control. Their concern involves how many investment choices (subaccounts) may be offered by an insurance company and how many exchanges among those subaccounts may be allowed before the contract owner would be currently taxed on income earned within the contract. At this time, we do not know what the additional guidance will be or when action will be taken. We reserve the right to modify the contract, as necessary, so that the owner will not be subject to current taxation as the owner of the subaccount assets. We intend to comply with all federal tax laws so that the contract continues to qualify as an annuity for federal income tax purposes. We reserve the right to modify the contract as necessary to comply with any new tax laws. THE FUNDS: The contracts currently offer subaccounts investing in shares of the funds. For a list of underlying funds with a summary of investment objectives and policies, investment advisers and subadvisers, please see Appendix A. - INVESTMENT OBJECTIVES: The investment managers and advisers cannot guarantee that the funds will meet their investment objectives. Please read the funds' prospectuses for facts you should know before investing. These prospectuses are available by contacting us at the address or telephone number on the first page of this prospectus. - FUND NAME AND MANAGEMENT: A fund underlying your contract in which a subaccount invests may have a name, portfolio manager, objectives, strategies and characteristics that are the same or substantially similar to those of a publicly-traded retail mutual fund. Despite these similarities, an underlying fund is not the same as any publicly-traded retail mutual fund. Each underlying fund will have its own unique portfolio holdings, fees, operating expenses and operating results. The results of each underlying fund may differ significantly from any publicly-traded retail mutual fund. - ELIGIBLE PURCHASERS: All funds are available to serve as the underlying investments for variable annuities and variable life insurance policies. The funds are not available to the public (see "Fund name and management" above). Some funds also are available to serve as investment options for tax-deferred retirement plans. It is possible that in the future for tax, regulatory or other reasons, it may be disadvantageous for variable annuity accounts and variable life insurance accounts and/or tax-deferred retirement plans to invest in the available funds simultaneously. Although we and the funds do not currently foresee any such disadvantages, the boards of directors or trustees of each fund will monitor events in order to identify any material conflicts between annuity owners, policy owners and tax-deferred retirement plans and to determine what action, if any, should be taken in response to a conflict. If a board were to conclude that it should establish separate funds for the variable annuity, variable life insurance and tax-deferred retirement plan accounts, you would not bear any expenses associated with establishing separate funds. Please refer to the funds' prospectuses for risk disclosure regarding simultaneous investments by variable annuity, variable life insurance and tax-deferred retirement plan accounts. Each fund intends to comply with the diversification requirements under Section 817(h) of the Code. - ASSET ALLOCATION PROGRAMS MAY IMPACT FUND PERFORMANCE: Asset allocation programs in general may negatively impact the performance of an underlying fund. Even if you do not participate in an asset allocation program, a fund in which your subaccount invests may be impacted if it is included in an asset allocation program. Rebalancing or reallocation under the terms of the asset allocation program may cause a fund to lose money if it must sell large amounts of securities to meet a redemption request. These losses can be greater if the fund holds securities that are not as liquid as others; for example, various types of bonds, shares of smaller companies and securities of foreign issuers. A fund may also experience higher expenses because it must sell or buy securities more frequently than it otherwise might in the absence of asset allocation program rebalancing or reallocations. Because asset allocation programs include periodic rebalancing and may also include reallocation, these effects may occur under the asset allocation program we offer (see "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program") or under asset allocation programs used in conjunction with the contracts and plans of other eligible purchasers of the funds. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 15 - FUNDS AVAILABLE UNDER THE CONTRACT: We seek to provide a broad array of underlying funds taking into account the fees and charges imposed by each fund and the contract charges we impose. We select the underlying funds in which the subaccounts initially invest and when there is substitution (see "Substitution of Investments"). We also make all decisions regarding which funds to retain in a contract, which funds to add to a contract and which funds will no longer be offered in a contract. In making these decisions, we may consider various objective and subjective factors. Objective factors include, but are not limited to fund performance, fund expenses, classes of fund shares available, size of the fund and investment objectives and investing style of the fund. Subjective factors include, but are not limited to, investment sub-styles and process, management skill and history at other funds and portfolio concentration and sector weightings. We also consider the levels and types of revenue, including but not limited to expense payments and non-cash compensation a fund, its distributor, investment adviser, subadviser, transfer agent or their affiliates pay us and our affiliates. This revenue includes, but is not limited to compensation for administrative services provided with respect to the fund and support of marketing and distribution expenses incurred with respect to the fund. - REVENUE WE RECEIVE FROM THE FUNDS MAY CREATE POTENTIAL CONFLICTS OF INTEREST: We or our affiliates receive from each of the funds, or the funds' affiliates, varying levels and types of revenue including but not limited to expense payments and non-cash compensation. The amount of this revenue and how it is computed varies by fund, may be significant and may create potential conflicts of interest. The greatest amount and percentage of revenue we and our affiliates receive comes from assets allocated to subaccounts investing in the RiverSource Variable Portfolio Funds (affiliated funds) that are managed by RiverSource Investments, LLC (RiverSource Investments), one of our affiliates. Employee compensation and operating goals at all levels are tied to the success of Ameriprise Financial, Inc. and its affiliates, including us. Certain employees may receive higher compensation and other benefits based, in part, on contract values that are invested in the RiverSource Variable Portfolio Funds. We or our affiliates receive revenue which ranges up to 0.60% of the average daily net assets invested in the non-RiverSource Variable Portfolio Funds (unaffiliated funds) through this and other contracts we and our affiliate issue. We or our affiliates may also receive revenue which ranges up to 0.04% of aggregate, net or anticipated sales of unaffiliated funds through this and other contracts we and our affiliate issue. Please see the SAI for a table that ranks the unaffiliated funds according to total dollar amounts they and their affiliates paid us or our affiliates in 2006. Expense payments, non-cash compensation and other forms of revenue may influence recommendations your investment professional makes regarding whether you should invest in the contract, and whether you should allocate purchase payments or contract value to a subaccount that invests in a particular fund (see "About the Service Providers"). The revenue we or our affiliates receive from a fund or its affiliates is in addition to revenue we receive from the charges you pay when buying, owning and surrendering the contract (see "Expense Summary"). However, the revenue we or our affiliates receive from a fund or its affiliates may come, at least in part, from the fund's fees and expenses you pay indirectly when you allocate contract value to the subaccount that invests in that fund. - WHY REVENUES ARE PAID TO US: In accordance with applicable laws, regulations and the terms of the agreements under which such revenue is paid, we or our affiliates may receive these revenues including but not limited to expense payments and non-cash compensation for various purposes: - Compensating, training and educating financial advisors who sell the contracts. - Granting access to our employees whose job it is to promote sales of the contracts by authorized selling firms and their financial advisors, and granting access to financial advisors of our affiliated selling firms. - Activities or services we or our affiliates provide that assist in the promotion and distribution of the contracts including promoting the funds available under the contracts to prospective and existing contract owners, authorized selling firms and financial advisors. - Providing sub-transfer agency and shareholder servicing to contract owners. - Promoting, including and/or retaining the fund's investment portfolios as underlying investment options in the contracts. - Advertising, printing and mailing sales literature, and printing and distributing prospectuses and reports. - Furnishing personal services to contract owners, including education of contract owners, answering routine inquiries regarding a fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the National Association of Securities Dealers, Inc. (NASD). - Subaccounting, transaction processing, recordkeeping and administration. 16 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - SOURCES OF REVENUE RECEIVED FROM AFFILIATED FUNDS: The affiliated funds are managed by RiverSource Investments. The sources of revenue we receive from these affiliated funds, or from affiliates of these funds, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser and transfer agent or an affiliate of these. The revenue resulting from these sources may be based either on a percentage of average daily net assets of the fund or on the actual cost of certain services we provide with respect to the fund. We may receive this revenue either in the form of a cash payment or it may be allocated to us. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. - SOURCES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS: The unaffiliated funds are not managed by an affiliate of ours. The sources of revenue we receive from these unaffiliated funds, or the funds' affiliates, may include, but are not necessarily limited to, the following: - Assets of the fund's adviser, subadviser, transfer agent or an affiliate of these and assets of the fund's distributor or an affiliate. The revenue resulting from these sources usually is based on a percentage of average daily net assets of the fund but there may be other types of payment arrangements. - Compensation paid out of 12b-1 fees that are deducted from fund assets and disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of the Funds" table. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 17 GUARANTEE PERIOD ACCOUNTS (GPAS) The GPAs may not be available for contracts in some states. GPAs are not available if the GWB for Life, SecureSource(SM), Accumulation Benefit, or PN program is selected. Currently, unless the PN program is in effect, you may allocate purchase payments and purchase payment credits to one or more of the GPAs with guarantee periods declared by us. These periods of time may vary by state. The required minimum investment in each GPA is $1,000. (Exception: if a model portfolio includes one or more GPAs, the required minimum does not apply.) These accounts are not offered after annuity payouts begin. Some states also restrict the amount you can allocate to these accounts. Each GPA pays an interest rate that is declared when you make an allocation to that account. That interest rate is then fixed for the guarantee period that you chose. We will periodically change the declared interest rate for any future allocations to these accounts, but we will not change the rate paid on money currently in a GPA. The GPA interests under the contracts are registered with the SEC. The SEC staff reviews the disclosures in this prospectus on the GPA interests. The interest rates that we will declare as guaranteed rates in the future are determined by us at our discretion (future rates). We will determine future rates based on various factors including, but not limited to, the interest rate environment, returns earned on investments in the nonunitized separate account we have established for the GPAs, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition and RiverSource Life's revenues and other expenses. Interest rates offered may vary by state, but will not be lower than state law allows. WE CANNOT PREDICT NOR CAN WE GUARANTEE WHAT FUTURE RATES WILL BE. We hold amounts you allocate to the GPAs in a "nonunitized" separate account we have established under the Minnesota Insurance Code. This separate account provides an additional measure of assurance that we will make full payment of amounts due under the GPAs. State insurance law prohibits us from charging this separate account with liabilities of any other separate account or of our general business. We own the assets of this separate account as well as any favorable investment performance of those assets. You do not participate in the performance of the assets held in this separate account. We guarantee all benefits relating to your value in the GPAs. This guarantee is based on the continued claims-paying ability of the company. We intend to construct and manage the investment portfolio relating to the separate account in such a way as to minimize the impact of fluctuations in interest rates. We achieve this by constructing a portfolio of assets with a price sensitivity to interest rate changes (i.e., price duration) that is similar to the price duration of the corresponding portfolio of liabilities. We must invest this portfolio of assets in accordance with requirements established by applicable state laws regarding the nature and quality of investments that life insurance companies may make and the percentage of their assets that they may commit to any particular type of investment. Our investment strategy will incorporate the use of a variety of debt instruments having price durations tending to match the applicable guarantee periods. These instruments include, but are not necessarily limited to, the following: - Securities issued by the U.S. government or its agencies or instrumentalities, which issues may or may not be guaranteed by the U.S. government; - Debt securities that have an investment grade, at the time of purchase, within the four highest grades assigned by any of three nationally recognized rating agencies -- Standard & Poor's, Moody's Investors Service or Fitch -- or are rated in the two highest grades by the National Association of Insurance Commissioners; - Debt instruments that are unrated, but which are deemed by RiverSource Life to have an investment quality within the four highest grades; - Other debt instruments which are unrated or rated below investment grade, limited to 15% of assets at the time of purchase; and - Real estate mortgages, limited to 30% of portfolio assets at the time of acquisition. In addition, options and futures contracts on fixed income securities will be used from time to time to achieve and maintain appropriate investment and liquidity characteristics on the overall asset portfolio. While this information generally describes our investment strategy, we are not obligated to follow any particular strategy except as may be required by federal law and Minnesota and other state insurance laws. 18 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS MARKET VALUE ADJUSTMENT (MVA) We will not apply an MVA to contract value you transfer or surrender out of the GPAs within 30 days before the end of the guarantee period. During this 30 day window you may choose to start a new guarantee period of the same length, transfer the contract value to a GPA of another length, transfer the contract value to any of the subaccounts or the regular fixed account, or surrender the contract value (subject to applicable surrender provisions). If we do not receive any instructions at the end of your guarantee period, our current practice is to automatically transfer the contract value to the one year GPA. Any new GPA, whether it is one you choose or an automatic transfer to a one year GPA, will be subject to an MVA as described below. We guarantee the contract value allocated to the GPAs, including interest credited, if you do not make any transfers or surrenders from the GPAs prior to 30 days before the end of the guarantee period (30-day rule). At all other times, and unless one of the exceptions to the 30-day rule described below applies, we will apply an MVA if you surrender or transfer contract value from a GPA including withdrawals under the GWB for Life rider, SecureSource(SM) rider or you elect an annuity payout plan while you have contract value invested in a GPA. We will refer to these transactions as "early surrenders." The application of an MVA may result in either a gain or loss of principal. The 30-day rule does not apply and no MVA will apply to: - amounts surrendered under contract provisions that waive surrender charges for Hospital or Nursing Home Confinement and Terminal Illness Disability Diagnosis; - amounts surrendered from the GPA within 30 days prior to the end of the Guarantee Period; - automatic rebalancing under any PN program model portfolio we offer which includes one or more GPAs. However, an MVA may apply if you transfer to a new PN program model portfolio; - amounts applied to an annuity payout plan while a PN program model portfolio including one or more GPAs is in effect; - reallocation of your contract value according to an updated PN program model portfolio; - amounts surrendered for fees and charges; and - amounts we pay as death claims. When you request an early surrender, we adjust the early surrender amount by an MVA formula. The early surrender amount reflects the relationship between the guaranteed interest rate you are earning in your current GPA and the interest rate we are crediting on new GPAs that end at the same time as your current GPA. The MVA is sensitive to changes in current interest rates. The magnitude of any applicable MVA will depend on our current schedule of guaranteed interest rates at the time of the surrender, the time remaining in your guarantee period and your guaranteed interest rate. The MVA is negative, zero or positive depending on how the guaranteed interest rate on your GPA compares to the interest rate of a new GPA for the same number of years as the guarantee period remaining on your GPA. This is summarized in the following table:
IF YOUR GPA RATE IS: THE MVA IS: Less than the new GPA rate + 0.10% Negative Equal to the new GPA rate + 0.10% Zero Greater than the new GPA rate + 0.10% Positive
For an example, see Appendix B. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 19 THE FIXED ACCOUNT The fixed account is our general account. Amounts allocated to the fixed account become part of our general account. The fixed account includes the regular fixed account and the Special DCA fixed account. We credit interest on amounts you allocate to the fixed account at rates we determine from time to time in our discretion. These rates will be based on various factors including, but not limited to, the interest rate environment, returns we earn on our general account investments, the rates currently in effect for new and existing RiverSource Life annuities, product design, competition, and RiverSource Life's revenues and expenses. The guaranteed minimum interest rate on amounts invested in the fixed account may vary by state but will not be lower than state law allows. We back the principal and interest guarantees relating to the fixed account. These guarantees are based on the continued claims-paying ability of RiverSource Life. The fixed account is not required to be registered with the SEC. The SEC staff does not review the disclosures in this prospectus on the fixed account, however, disclosures regarding the fixed account may be subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in prospectuses. THE REGULAR FIXED ACCOUNT For RAVA 4 Advantage and RAVA 4 Select, unless the PN program is in effect, you also may allocate purchase payments and purchase payment credits or transfer contract value to the regular fixed account. For RAVA 4 Access contracts, you cannot allocate purchase payments to the regular fixed account unless it is included in the PN program model portfolio you selected. The value of the regular fixed account increases as we credit interest to the account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment or transfer to the regular fixed account is guaranteed for one year. Thereafter, we will change the rates from time to time at our discretion. We reserve the right to limit purchase payment allocations to the regular fixed account if the interest rate we are then currently crediting to the regular fixed account is equal to the minimum interest rate stated in the contract. (See "Making the Most of Your Contract -- Transfer policies" for restrictions on transfers involving the regular fixed account.) THE SPECIAL DCA FIXED ACCOUNT You also may allocate purchase payments and purchase payment credits to the Special DCA fixed account, when available. The Special DCA fixed account is available for new purchase payments. The value of the Special DCA fixed account increases as we credit interest to the account. We credit and compound interest daily based on a 365-day year so as to produce the annual effective rate which we declare. We do not credit interest on leap days (Feb. 29). The interest rate we apply to each purchase payment is guaranteed for the period of time money remains in the Special DCA fixed account. (See "Making the Most of Your Contract -- Special Dollar Cost Averaging Program" for more information on the Special DCA fixed account.) 20 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS BUYING YOUR CONTRACT You can fill out an application and send it along with your initial purchase payment to our home office. You may buy RAVA 4 Advantage, RAVA 4 Select or RAVA 4 Access. Each contract has different mortality and expense risk fees. RAVA 4 Access does not have surrender charges, but it has the highest mortality and expense risk fees of the three contracts. RAVA 4 Select has a three-year surrender charge schedule and lower mortality and expense risk fees then RAVA 4 Access. RAVA 4 Advantage offers a choice of a seven-year or ten-year surrender charge schedule and the lowest mortality and expense risk fees of the three contracts. We are required by law to obtain personal information from you which we will use to verify your identity. If you do not provide this information we reserve the right to refuse to issue your contract or take other steps we deem reasonable. As the owner, you have all rights and may receive all benefits under the contract. You can own a nonqualified annuity in joint tenancy with rights of survivorship only in spousal situations. You cannot own a qualified annuity in joint tenancy. You can buy a contract if you are 90 or younger. When you apply, you may select among the following (if available in your state): - GPAs(1), the regular fixed account(2), subaccounts and/or the Special DCA fixed account in which you want to invest; - how you want to make purchase payments; - a beneficiary; - under RAVA 4 Advantage, the length of the surrender charge period (seven or ten years)(3); - the optional PN program; - one of the following optional death benefits: - ROPP Death Benefit(4); - MAV Death Benefit(4); - 5-Year MAV Death Benefit(4); - EEB Death Benefit(4); - EEP Death Benefit(4); and - under RAVA 4 Advantage and RAVA 4 Select, one of the following optional living benefits that require the use of the PN program: - Accumulation Benefit rider(5); - GWB for Life rider(5); or - SecureSource(SM) rider(5). (1) GPAs are not available if the GWB for Life, SecureSource(SM), or Accumulation Benefit riders are selected. (2) For RAVA 4 Access contracts, you cannot select the regular fixed account unless it is included in a PN program model portfolio you selected. (3) In Alaska, Arizona, Connecticut, Georgia, Hawaii, Illinois, Iowa, Minnesota, Mississippi, Montana, North Carolina, Oregon, Utah and Washington, the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama and Massachusetts, we waive surrender charges after the tenth contract anniversary. (4) You may select any one of the ROPP, MAV, 5-Year MAV, EEB or EEP riders or certain combinations thereof. You may select the MAV and either the EEB or the EEP. You may select the 5-Year MAV and either the EEB or the EEP. You cannot select both the EEB and EEP. You cannot select both the MAV and 5-Year MAV. The MAV, EEB, EEP and 5-Year MAV are only available if you are 75 or younger at the rider effective date. EEP is only available on contracts purchased through a transfer or exchange. ROPP is only available if you are 76 or older at the rider effective date. ROPP is included in the standard death benefit if you are 75 or younger. (5) You may select either the Accumulation Benefit or the GWB for Life or SecureSource(SM) rider. The Accumulation Benefit, GWB for Life, and SecureSource(SM) - Single Life riders are only available if you are 80 or younger at the rider effective date. SecureSource(SM) - Joint Life rider is available if both covered spouses are 80 or younger. The contracts provide for allocation of purchase payments and purchase payment credits to the subaccounts of the variable account, to the GPAs, to the regular fixed account and/or to the Special DCA fixed account (when available) in even 1% increments subject to the $1,000 required minimum investment for the GPAs. There may be certain restrictions on the amount you may allocate to the regular fixed account. For RAVA 4 Access contracts, purchase payment credits are not available and you cannot allocate purchase payments to the regular fixed account unless it is included in a PN program model portfolio you selected. (See "Purchase Payments.") If your application is complete, we will process it and apply your purchase payment and purchase payment credits to the GPAs, the regular fixed account, the Special DCA fixed account and/or subaccounts you selected within two business days after we receive it at our home office. If we accept your application, we will send you a contract. If your application is not complete, you must give us the information to complete it within five business days. If we cannot accept your application within five business days, we will decline it and return your payment unless you specifically ask us to keep the payment and apply it once your application is complete. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 21 We will credit additional purchase payments you make to your accounts on the valuation date we receive them. If we receive an additional purchase payment at our home office before the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the valuation date we received the payment. If we receive an additional purchase payment at our home office at or after the close of business, we will credit any portion of that payment allocated to the subaccounts using the accumulation unit value we calculate on the next valuation date after we received the payment. THE SETTLEMENT DATE Annuity payouts are scheduled to begin on the settlement date. When we process your application, we will establish the settlement date as the maximum age (or contract anniversary, if applicable) for nonqualified annuities and Roth IRAs and the date specified below for qualified annuities. You can also select a date within the maximum limits. Your selected date can align with your actual retirement from a job, or it can be a different date, depending on your needs and goals and on certain restrictions. You also can change the settlement date, provided you send us written instructions at least 30 days before annuity payouts begin. FOR NONQUALIFIED ANNUITIES AND ROTH IRAS, the settlement date must be: - no earlier than the 60th day after the contract's effective date; and - no later than your 90th birthday or the tenth contract anniversary, if purchased after age 80. FOR QUALIFIED ANNUITIES EXCEPT ROTH IRAS, to comply with IRS regulations, the settlement date generally must be: - for IRAs, by April 1 of the year following the calendar year when you reach age 70 1/2; or - for all other qualified annuities, by April 1 of the year following the calendar year when you reach age 70 1/2, or, if later, retire (except that 5% business owners may not select a settlement date that is later than April 1 of the year following the calendar year when they reach age 70 1/2). If you satisfy your RMDs in the form of partial surrenders from this contract, annuity payouts can start as late as your 90th birthday or the tenth contract anniversary, if later, or a date that has been otherwise agreed to by us. Contract owners of IRAs and TSAs may also be able to satisfy required minimum distributions using other IRAs or TSAs, and in that case, may delay the annuity payout start date for these contracts. BENEFICIARY If death benefits become payable before the settlement date while the contract is in force and before annuity payouts begin, we will pay your named beneficiary all or part of the contract value. If there is no named beneficiary, then your estate will be the beneficiary. (See "Benefits in Case of Death" for more about beneficiaries.) If you select the SecureSource(SM) - Joint Life rider, please consider carefully whether or not you wish to change the beneficiary of your annuity contract. The rider will terminate if the surviving covered spouse can not utilize the spousal continuation provision of the contract when the death benefit is payable. PURCHASE PAYMENTS(*) MINIMUM ALLOWABLE PURCHASE PAYMENTS(**) If paying by installments under a scheduled payment plan: $23.08 biweekly, or $50 per month
RAVA 4 ADVANTAGE RAVA 4 SELECT RAVA 4 ACCESS If paying by any other method: initial payment for qualified annuities $1,000 $2,000 $2,000 initial payment for nonqualified annuities 2,000 10,000 10,000 for any additional payments 50 50 50
* RAVA 4 ADVANTAGE AND RAVA 4 SELECT BAND 3 ANNUITIES SOLD TO INDIVIDUALS OTHER THAN ADVISORS AND EMPLOYEES: Require a minimum $1,000,000 initial purchase payment and home office approval. Contracts already approved may make payments in subsequent years up to $100,000 if your age on the effective date of the contract is age 85 or younger and $50,000 if your age on the effective date of the contract is age 86 to 90. ** Installments must total at least $600 in the first year. If you do not make any purchase payments for 24 months, and your previous payments total $600 or less, we have the right to give you 30 days' written notice and pay you the total value of your contract in a lump sum. This right does not apply to contracts in New Jersey. 22 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS MAXIMUM ALLOWABLE PURCHASE PAYMENTS(***) (without home office approval) based on your age on the effective date of the contract:
RAVA 4 ADVANTAGE RAVA 4 SELECT RAVA 4 ACCESS For the first year: through age 85 $999,999 $999,999 $999,999 for ages 86 to 90 100,000 100,000 100,000 For each subsequent year: through age 85 100,000 100,000 100,000 for ages 86 to 90 50,000 50,000 50,000
*** These limits apply in total to all RiverSource Life annuities you own. These limits do not apply to contracts in New Jersey. We reserve the right to increase maximum limits. For qualified annuities, the Code's limits on annual contributions also apply. We also reserve the right to restrict cumulative purchase payments for contracts with the GWB for Life or SecureSource(SM) rider, subject to state restrictions. Additional purchase payments are restricted during the waiting period after the first 180 days immediately following the effective date and each elective step up of the Accumulation Benefit rider. Purchase payment amounts and purchase payment timing may vary by state and may be limited under the terms of your contract. We reserve the right to not accept purchase payments allocated to the regular fixed account for twelve months following either: 1. a partial surrender from the regular fixed account; or 2. a lump sum transfer from the regular fixed account to a subaccount. HOW TO MAKE PURCHASE PAYMENTS 1 BY LETTER Send your check along with your name and contract number to: RIVERSOURCE LIFE INSURANCE COMPANY 70200 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 2 BY SCHEDULED PAYMENT PLAN We can help you set up: - an automatic payroll deduction, salary reduction or other group billing arrangement; or - a bank authorization. PURCHASE PAYMENT CREDITS PURCHASE PAYMENT CREDITS ARE NOT AVAILABLE FOR RAVA 4 ACCESS. FOR RAVA 4 ADVANTAGE: we add a credit to your contract in the amount of: - 1% of each purchase payment received: -- if you elect the ten-year surrender charge schedule for your contract* and the initial purchase payment is under $100,000; or -- if you elect the seven-year surrender charge schedule for your contract and your initial purchase payment to the contract is at least $100,000 but less than $1,000,000. - 2% of each purchase payment received if you elect the ten-year surrender charge schedule for your contract* and your initial purchase payment to the contract is at least $100,000 but less than $1,000,000. FOR RAVA 4 ADVANTAGE - BAND 3: we add a credit to your contract in the amount of: - 2% of each purchase payment received: -- if you elect the seven-year surrender charge schedule for your contract. - 3% of each purchase payment received -- if you elect the ten-year surrender charge schedule for your contract(*). RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 23 Surrender charges under RAVA 4 Advantage and RAVA 4 Advantage - Band 3 may be higher and longer than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, there could be circumstances where you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. All things being equal (such as fund performance and availability), this may occur if you select the ten-year surrender charge and you make a full surrender before year ten. We pay for the credits under RAVA 4 Advantage and RAVA 4 Advantage - Band 3 primarily through revenue from a higher and longer surrender charge schedule and through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. FOR RAVA 4 SELECT: we add a credit to your contract in the amount of 1% of each purchase payment received in the first contract year if your initial purchase payment to the contract is at least $250,000 but less than $1,000,000. FOR RAVA 4 SELECT - BAND 3: we add a credit to your contract in the amount of 2% of each purchase payment received in the first contract year. Expenses under RAVA 4 Select and RAVA 4 Select - Band 3 may be higher than those for contracts that do not have purchase payment credits. The amount of the credits may be more than offset by the additional charges associated with them. Because of higher charges, you may be worse off purchasing one of these contracts with the credits than purchasing other contracts. We pay for the credits under RAVA 4 Select and RAVA 4 Select - Band 3 primarily through lower costs associated with larger sized contracts, including lower compensation paid on the sales of these contracts. We fund all credits from our general account. We do not consider credits to be "investments" for income tax purposes. (See "Taxes.") We allocate each credit to your contract value when the applicable purchase payment is applied to your contract value. We allocate such credits to your contract value according to allocation instructions in effect for your purchase payments. We will reverse credits from the contract value for any purchase payment that is not honored. The amount returned to you under the free look provision also will not include any credits applied to your contract. (See "The Contract in Brief -- Free look period.") We will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits to the extent a death benefit, surrender payment, or your settlement under an annuity payout plan includes purchase payment credits applied within twelve months preceding: (1) the date of death that results in a death benefit payment under this contract; (2) a request for surrender charge waiver due to Hospital or Nursing Home Confinement or Terminal Illness Disability Diagnosis; or (3) your settlement of the contract under an annuity payout plan.* The amount we pay to you under these circumstances will always equal or exceed your surrender value. We reserve the right to increase the amount of the credit for certain groups of contract owners. The increase will not be greater than 8% of total net purchase payments. We would pay for increases in credit amounts primarily through reduced expenses expected from such groups. * For contracts purchased in Oregon, we will assess a charge, similar to a surrender charge, equal to the amount of the purchase payment credits to the extent a death benefit, includes purchase payment credits applied within twelve months preceding the date of death. LIMITATIONS ON USE OF CONTRACTS If mandated by applicable law, including but not limited to, federal anti-money laundering laws, we may be required to reject a purchase payment. We may also be required to block an owner's access to contract values and satisfy other statutory obligations. Under these circumstances, we may refuse to implement requests for transfers, surrenders or death benefits until instructions are received from the appropriate governmental authority or court of competent jurisdiction. 24 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS CHARGES CONTRACT ADMINISTRATIVE CHARGE We charge this fee for establishing and maintaining your records. Currently, we deduct $30 from your contract value on your contract anniversary at the end of each contract year. We prorate this charge among the subaccounts and the regular fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. The contract administrative charge is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. We reserve the right to increase this charge after the first contract anniversary to a maximum of $50.* We will waive this $30 charge when your contract value, or total purchase payments less any payments surrendered, is $50,000 or more on the current contract anniversary. If you surrender your contract, we will deduct the full charge at the time of surrender regardless of the contract value or purchase payments made. This charge does not apply after annuity payouts begin or when we pay death benefits. * In certain states and for certain contracts we have waived our right to increase the contract administrative charge. MORTALITY AND EXPENSE RISK FEE We charge this fee daily to the subaccounts. The unit values of your subaccounts reflect this fee, which is a percentage of their average daily net assets, on an annual basis as follows:
RAVA 4 ADVANTAGE RAVA 4 SELECT RAVA 4 ACCESS For nonqualified annuities 1.05% 1.30% 1.45% For qualified annuities .85% 1.10% 1.25%
This fee covers the mortality and expense risk that we assume. Approximately two-thirds of this amount is for our assumption of mortality risk, and one-third is for our assumption of expense risk. This fee does not apply to the GPAs, the regular fixed account or the Special DCA fixed account. Mortality risk arises because of our guarantee to pay a death benefit and our guarantee to make annuity payouts according to the terms of the contract, no matter how long a specific owner lives and no matter how long our entire group of owners live. If, as a group, owners outlive the life expectancy we assumed in our actuarial tables, we must take money from our general assets to meet our obligations. If, as a group, owners do not live as long as expected, we could profit from the mortality risk fee. Expense risk arises because we cannot increase the contract administrative charge more than $20.00 per contract and this charge may not cover our expenses. We would have to make up any deficit from our general assets. We could profit from the expense risk fee if future expenses are less than expected. The subaccounts pay us the mortality and expense risk fee they accrued as follows: - first, to the extent possible, the subaccounts pay this fee from any dividends distributed from the funds in which they invest; - then, if necessary, the funds redeem shares to cover any remaining fees payable. We may use any profits we realize from the subaccounts' payment to us of the mortality and expense risk fee for any proper corporate purpose, including, among others, payment of distribution (selling) expenses. We do not expect that the surrender charge for RAVA 4 Advantage or RAVA 4 Select, discussed in the following paragraphs, will cover sales and distribution expenses. SURRENDER CHARGE If you surrender all or part of your contract, you may be subject to a surrender charge. For RAVA 4 Advantage, a surrender charge applies if all or part of the surrender amount is from purchase payments we received within seven or ten years before surrender. You select the surrender charge period at the time of your application for the contract. For RAVA 4 Select, a surrender charge applies if you surrender all or part of your purchase payments in the first three contract years. There is no surrender charge for RAVA 4 Access. The surrender charge percentages that apply to you are shown in your contract. You may surrender an amount during any contract year without a surrender charge. We call this amount the Total Free Amount (TFA). The TFA varies depending on whether your contract includes the GWB for Life rider or SecureSource(SM) rider: CONTRACTS WITHOUT GWB FOR LIFE RIDER OR SECURESOURCE(SM) RIDER The TFA is the greater of: - 10% of the contract value on the prior contract anniversary*; or - current contract earnings. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 25 CONTRACTS WITH GWB FOR LIFE RIDER OR SECURESOURCE(SM) RIDER The TFA is the greatest of: - 10% of the contract value on the prior contract anniversary*; - current contract earnings; - the Remaining Benefit Payment; or - the Remaining Annual Lifetime Payment. * We consider all purchase payments received and any purchase payment credit applied prior to your surrender request to be the prior contract anniversary's contract value during the first contract year. NOTE: We determine current contract earnings by looking at the entire contract value, not the earnings of any particular subaccount, GPA, the regular fixed account or the Special DCA fixed account. Amounts surrendered in excess of the TFA may be subject to a surrender charge as described below. SURRENDER CHARGE UNDER RAVA 4 ADVANTAGE: For purposes of calculating any surrender charge under RAVA 4 Advantage, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next we surrender purchase payments received prior to the surrender charge period you selected and shown in your contract. We do not assess a surrender charge on these purchase payments. 3. Finally, if necessary, we surrender purchase payments received that are still within the surrender charge period you selected and shown in your contract. We surrender these payments on a first-in, first-out (FIFO) basis. We do assess a surrender charge on these payments. We determine your surrender charge by multiplying each of your payments surrendered by the applicable surrender charge percentage, and then adding the total surrender charges. The surrender charge percentage depends on the number of years since you made the payments that are surrendered, depending on the schedule you selected*:
SEVEN-YEAR SCHEDULE TEN-YEAR SCHEDULE* NUMBER OF COMPLETED NUMBER OF COMPLETED YEARS FROM DATE OF EACH SURRENDER CHARGE YEARS FROM DATE OF EACH SURRENDER CHARGE PURCHASE PAYMENT PERCENTAGE PURCHASE PAYMENT PERCENTAGE 0 7% 0 8% 1 7 1 8 2 7 2 8 3 6 3 7 4 5 4 7 5 4 5 6 6 2 6 5 7+ 0 7 4 8 3 9 2 10+ 0
* In Alaska, Arizona, Connecticut, Georgia, Hawaii, Illinois, Iowa, Minnesota, Mississippi, Montana, North Carolina, Oregon, Utah and Washington, the ten-year surrender charge schedule is 8% for years 0-2, 7% for year 3 and declining by 1% each year thereafter until it is 0% for years 10+. For contracts issued in Alabama and Massachusetts, we waive surrender charges after the tenth contract anniversary. Surrender charges may vary by state based on your age at contract issue. 26 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS SURRENDER CHARGE UNDER RAVA 4 SELECT (EXCEPT TEXAS): For purposes of calculating any surrender charge under RAVA 4 Select, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next, if necessary, we surrender purchase payments. We do assess a surrender charge on these payments during the first three contract years as follows:
CONTRACT YEAR SURRENDER CHARGE PERCENTAGE 1 7% 2 7 3 7 Thereafter 0
SURRENDER CHARGE UNDER RAVA 4 SELECT IN TEXAS: For purposes of calculating any surrender charge under RAVA 4 Select in Texas, we treat amounts surrendered from your contract value in the following order: 1. First, we surrender the TFA. We do not assess a surrender charge on the TFA. 2. Next, if necessary, we surrender purchase payments. We surrender amounts from the oldest purchase payments first. We do assess a surrender charge on these payments during the first three contract years as follows:
NUMBER OF COMPLETED YEARS FROM DATE OF EACH PURCHASE PAYMENT SURRENDER CHARGE PERCENTAGE 0 8% 1 7 2 6 Thereafter 0
3. There are no surrender charges after the third contract anniversary. SURRENDER CHARGE UNDER RAVA 4 ACCESS: There is no surrender charge if you surrender all or part of your contract. PARTIAL SURRENDERS: For a partial surrender that is subject to a surrender charge, the amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. For an example, see Appendix C. SURRENDER CHARGE UNDER ANNUITY PAYOUT PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: Under this annuity payout plan, you can choose to take a surrender. The amount that you can surrender is the present value of any remaining variable payouts. The discount rate we use in the calculation will be 5.17% if the assumed investment rate is 3.5% and 6.67% if the assumed investment rate is 5%. The surrender charge equals the present value of the remaining payouts using the assumed investment rate minus the present value of the remaining payouts using the discount rate. WAIVER OF SURRENDER CHARGES We do not assess surrender charges for: - surrenders of any contract earnings; - surrenders of amounts totaling up to 10% of the contract value on the prior contract anniversary to the extent it exceeds contract earnings; - if you elected the GWB for Life or SecureSource(SM) rider, the greater of your contract's Remaining Benefit Payment or Remaining Annual Lifetime Payment to the extent it exceeds the greater of contract earnings or 10% of the contract value on the prior contract anniversary; - amounts surrendered after the tenth contract anniversary in Alabama and Massachusetts; - required minimum distributions from a qualified annuity provided the amount is no greater than the RMD amount calculated under your specific contract, currently in force; - contracts settled using an annuity payout plan*, unless an Annuity Payout Plan E is later surrendered; - amounts we refund to you during the free look period*; - death benefits*; RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 27 - surrenders you make under your contract's "Waiver of Surrender Charges for Hospital or Nursing Home Confinement" provision*. To the extent permitted by state law, this provision applies when you are under age 76 on the date that we issue the contract. Under this provision, we will waive surrender charges that we normally assess upon full or partial surrender. You must provide proof satisfactory to us that, as of the date you request the surrender, you or your spouse are confined to a nursing home or hospital and have been for the prior 60 days and the confinement began after the contract date. (See your contract for additional conditions and restrictions on this waiver.); and - surrenders you make under your contract's "Waiver of Surrender Charges for Terminal Illness Disability Diagnosis" provision.* To the extent permitted by state law, this provision applies when you are under age 76 on the date we issue the contract. Under this provision, we will waive surrender charges that we normally assess for surrenders you make if you are diagnosed after the contract issue date as disabled with a medical condition that with reasonable medical certainty will result in death within 12 months or less from the date of a licensed physician's statement. You must provide us with a licensed physician's statement containing the terminal illness diagnosis and the date the terminal illness was initially diagnosed. (See your contract for additional conditions and restrictions on this waiver.) * However, we will reverse certain purchase payment credits. (See "Buying your contract -- Purchase payment credits.") OTHER INFORMATION ON CHARGES: Ameriprise Financial, Inc. makes certain custodial services available to some profit sharing, money purchase and target benefit plans funded by our annuities. Fees for these services start at $30 per calendar year per participant. Ameriprise Financial, Inc. will charge a termination fee for owners under age 59 1/2 (fee waived in case of death or disability). POSSIBLE GROUP REDUCTIONS: In some cases we may incur lower sales and administrative expenses due to the size of the group, the average contribution and the use of group enrollment procedures. In such cases, we may be able to reduce or eliminate certain charges such as the contract administrative and surrender charges. However, we expect this to occur infrequently. ACCUMULATION BENEFIT RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.60% of the greater of your contract value or the minimum contract accumulation value on your contract anniversary. We prorate this fee among the subaccounts and the regular fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the Special DCA fixed account. Such fee is only deducted from any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. The fee will only be deducted from the subaccounts in Washington. We will modify this prorated approach to comply with state regulations where necessary. Once you elect the Accumulation Benefit rider, you may not cancel it and the fee will continue to be deducted through the end of the waiting period or when annuity payouts begin. If the contract is terminated for any reason or when annuity payouts begin, we will deduct the fee, adjusted for the number of calendar days coverage was in place since we last deducted the fee. Currently, the Accumulation Benefit rider charge does not vary with the model portfolio selected; however, we reserve the right to increase this charge and/or charge a separate rider fee for each model portfolio. The Accumulation Benefit rider fee will not exceed a maximum charge of 2.50%. We will not change the Accumulation Benefit rider charge after the rider effective date unless: (a) you choose the annual Elective Step Up after we have exercised our rights to increase the rider charge; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you change your model portfolio after we have exercised our rights to increase the rider charge; (d) you change your model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. If you elect to change your model portfolio after we have exercised our right to increase the fee we charge for this rider, or after we have exercised our right to establish fees for this rider which vary by model portfolio, the increase in fees we charge for this rider will become effective on the contract anniversary following your change of model portfolio. Any model portfolio changes on the contract anniversary will have the new charge effective on that contract anniversary. Also, in the event you change your model portfolio twice in the same contract year (see "Portfolio Navigator Asset Allocation Program"), the fee we charge for this rider will be the greatest fee applicable to any model portfolio which you have selected during the contract year. If you choose the Elective Step Up or change your model portfolio after we have exercised our rights to increase the rider charge as described above, you will pay the charge that is in effect on the valuation date we receive your written request to step up or change your model portfolio. For Elective Step Ups, this change will be in effect for the entire contract year. The fee does not apply after annuity payouts begin. (1) Available if you are 80 or younger at the rider effective date. You must select a model portfolio with this rider (see "Portfolio Navigator Asset Allocation Program"). Not available with GWB for Life or SecureSource(SM) riders. 28 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS GWB FOR LIFE RIDER FEE We charge a fee for this optional feature only if you select it.(1) If selected, we deduct an annual fee of 0.65% of the greater of the contract anniversary value or the remaining benefit amount (RBA). We prorate this fee among the subaccounts and the regular fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the GPAs and in the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. The fee will only be deducted from the subaccounts in Washington. We will modify this prorated approach to comply with state regulations where necessary. (1) Available if you are 80 or younger at the rider effective date. You must select a model portfolio with this rider (see" Portfolio Navigator Asset Allocation Program"). Once you elect the GWB for Life rider, you may not cancel it and the fee will continue to be deducted until the contract is terminated, the contract value reduces to zero or annuity payouts begin. If the contract is terminated for any reason or when annuity payouts begin, we will deduct the fee, adjusted for the number of calendar days coverage was in place since we last deducted the fee. If the RBA goes to zero but the contract value has not been depleted, you will continue to be charged. Currently, the GWB for Life rider charge does not vary with the PN program model portfolio selected; however, we reserve the right to increase this charge and/or charge a separate rider charge for each model portfolio. The GWB for Life rider charge will not exceed a maximum charge of 1.50%. We will not change the GWB for Life rider charge after the rider effective date unless: (a) you choose the annual elective step up after we have exercised our rights to increase the rider charge; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you elect to change your PN program model portfolio after we have exercised our rights to increase the rider charge; (d) you elect to change your PN program model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. If you chose the elective spousal continuation step up or change your model portfolio after we have exercised our right to increase the fee we charge for this rider, or after we have exercised our right to establish fees for this rider which vary by model portfolio, the increase in fees we charge for this rider will become effective on the contract anniversary following your change. Any changes on the contract anniversary will have the new fee effective on that contract anniversary. Also, in the event you change your model portfolio more than once in the same contract year (see "Portfolio Navigator Asset Allocation Program"), the fee we charge for this rider will be the greatest fee applicable to any model portfolio which you have selected during the contract year. If you chose the elective step up, you will pay the fee in effect on the valuation date we receive your written request to step up. If you chose an elective step up on the first contract anniversary, any increase in fees we charge for this rider for the Step up will not become effective until the third contract year. In the event of more than one change in model portfolio and/or elective step up occurring in the same contract year, the fee we charge for this rider will be the highest fee applicable to any of these changes. The fee does not apply after annuity payouts begin. SECURESOURCE(SM) RIDER FEE We charge an annual fee based on the greater of the contract anniversary value or the total Remaining Benefit Amount (RBA) for this optional feature only if you select it(1) as follows: - SecureSource(SM) -- Single Life rider, 0.65%; - SecureSource(SM) -- Joint Life rider, 0.85%. We deduct the fee from your contract value on your contract anniversary. We prorate this fee among the subaccounts and the regular fixed account (if applicable) in the same proportion as your interest in each bears to your total contract value, less any amounts invested in the GPAs and in the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. We will modify this prorated approach to comply with state regulations where necessary. Once you elect the SecureSource(SM) rider, you may not cancel it and the fee will continue to be deducted until the contract or rider is terminated, or the contract value reduces to zero. If the contract or rider is terminated for any reason, we will deduct the fee, adjusted for the number of calendar days coverage was in place since we last deducted the fee. If the RBA reduces to zero but the contract value has not been depleted, you will continue to be charged. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 29 Currently the SecureSource(SM) rider charge does not vary with the Portfolio Navigator model portfolio selected; however, we reserve the right to increase this charge and/or charge a separate rider charge for each model portfolio. The SecureSource(SM) -- Single Life rider charge will not exceed a maximum charge of 1.50%. The SecureSource(SM) -- Joint Life rider charge will not exceed a maximum charge of 1.75%. We will not change the SecureSource(SM) rider charge after the rider effective date unless: (a) you choose the annual elective step up after we have exercised our rights to increase the rider charge. However, if you choose to exercise the annual elective step up before the end of the waiting period, the SecureSource(SM) rider charge will not change until the end of the waiting period. The charge will be based on the charge in effect on the valuation date we received your last written request to exercise the elective annual step up or to elect to change your Portfolio Navigator model portfolio; (b) you choose the elective spousal continuation step up after we have exercised our rights to increase the rider charge; (c) you elect to change your Portfolio Navigator model portfolio after we have exercised our rights to increase the rider charge; (d) you elect to change your Portfolio Navigator model portfolio after we have exercised our rights to charge a separate rider charge for each model portfolio. If you choose the elective step up, the elective spousal continuation step up, or change your Portfolio Navigator model portfolio as described above, you will pay the charge that is in effect on the valuation date we receive your written request to step up or change your Portfolio Navigator model portfolio. On the next contract anniversary, we will calculate an average rider charge, for the preceding contract year only, that reflects the various different charges that were in effect that year, adjusted for the number of calendar days each charge was in effect. The fee does not apply after annuity payouts begin. (1) For Single Life, available if you are 80 or younger at the rider effective date. For Joint Life, available if you and your spouse are 80 or younger at the rider effective date. You must select a model portfolio with this rider (see "Portfolio Navigator Asset Allocation Program"). ROPP RIDER FEE We charge a fee for this optional feature only if you select it.(2) If selected, we deduct an annual fee of 0.20% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and regular fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.30%. If the contract is terminated for any reason, we will deduct the charge at that time, adjusted for the number of calendar days coverage was in effect during the year. (2) Available if you are 76 or older at the rider effective date. ROPP is included in the standard death benefit if you are age 75 or younger on the contract effective date at no additional cost. May not be available in all states. MAV RIDER FEE We charge a fee for this optional feature only if you select it.(3) If selected, we deduct an annual fee of 0.25% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and regular fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.35%. If the contract is terminated for any reason, we will deduct the charge at that time, adjusted for the number of calendar days coverage was in effect during the year. (3) Available if you are 75 or younger at the rider effective date. Not available with the 5-Year MAV. May not be available in all states. 30 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 5-YEAR MAV RIDER FEE We charge a fee for this optional feature only if you select it.(4) If selected, we deduct an annual fee of 0.10% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and regular fixed account in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.20%. If the contract is terminated for any reason, we will deduct the charge at that time, adjusted for the number of calendar days coverage was in effect during the year. (4) Available if you are 75 or younger at the rider effective date. Not available with the MAV. May not be available in all states. EEB RIDER FEE We charge a fee for this optional feature only if you select it.(5) If selected, we deduct an annual fee of 0.30% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and regular fixed accounts in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.40%. If the contract is terminated for any reason, we will deduct the charge at that time, adjusted for the number of calendar days coverage was in effect during the year. (5) Available if you are 75 or younger at the rider effective date. Not available with EEP. May not be available in all states. EEP RIDER FEE We charge a fee for this optional feature only if you select it.(6) If selected, we deduct an annual fee of 0.40% of your contract value on your contract anniversary at the end of each contract year. We prorate this fee among the subaccounts and regular fixed accounts in the same proportion your interest in each account bears to your total contract value, less amounts invested in the GPAs and the Special DCA fixed account. Such fee is only deducted from GPAs and any Special DCA fixed account if insufficient amounts are available in the regular fixed account and the subaccounts. In this case, we prorate the fee among all accounts in the same proportion your interest in each account bears to your total contract value. We reserve the right to increase the fee for this rider after the tenth rider anniversary to a maximum of 0.50%. If the contract is terminated for any reason, we will deduct the charge at that time, adjusted for the number of calendar days coverage was in effect during the year. (6) Available if you are 75 or younger at the rider effective date. Not available with EEB. May not be available in all states. EEP is only available on contracts purchased through a direct transfer or exchange of another annuity or a life insurance policy. RIDER COMBINATION DISCOUNT A fee discount of 0.05% applies if you purchase the 5-Year MAV with either the EEB or EEP. A fee discount of 0.10% applies if you purchase the MAV with either the EEB or EEP. FUND FEES AND EXPENSES There are deductions from and expenses paid out of the assets of the funds that are described in the prospectuses for those funds. (See "Annual Operating Expenses of the Funds.") PREMIUM TAXES Certain state and local governments impose premium taxes on us (up to 3.5%). These taxes depend upon your state of residence or the state in which the contract was sold. Currently, we deduct any applicable premium tax when annuity payouts begin, but we reserve the right to deduct this tax at other times such as when you surrender your contract. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 31 VALUING YOUR INVESTMENT We value your accounts as follows: GPA We value the amounts you allocate to the GPA directly in dollars. The GPA value equals: - the sum of your purchase payments and purchase payment credits allocated to the GPA; - plus any amounts transferred to the GPA from the regular fixed account or subaccounts; - plus interest credited; - minus any amounts transferred from the GPA to the regular fixed account or any subaccount; - minus any amounts deducted for charges or surrenders; - plus or minus any applicable MVA; and/or - minus any remaining portion of fees where the values of the regular fixed account and the subaccounts are insufficient to cover those fees. REGULAR FIXED ACCOUNT We value the amounts you allocate to the regular fixed account directly in dollars. The regular fixed account value equals: - the sum of your purchase payments and purchase payment credits and transfer amounts allocated to the regular fixed account; - plus interest credited; - minus the sum of amounts surrendered (including any applicable surrender charges) and amounts transferred out; - minus any prorated portion of the contract administrative charge; - minus any prorated portion of the ROPP rider fee (if selected); - minus any prorated portion of the MAV rider fee (if selected); - minus any prorated portion of the 5-Year MAV rider fee (if selected); - minus any prorated portion of the EEB rider fee (if selected); - minus any prorated portion of the EEP rider fee (if selected); - minus any prorated portion of the Accumulation Benefit rider fee (if selected)*; - minus any prorated portion of the GWB for Life rider fee (if selected)*; and - minus any prorated portion of the SecureSource(SM) rider fee (if selected) * The fee can only be deducted from the subaccounts in Washington. SPECIAL DCA FIXED ACCOUNT We value the amounts you allocate to the Special DCA fixed account directly in dollars. The Special DCA fixed account value equals: - the sum of your purchase payments and purchase payment credits allocated to the Special DCA fixed account; - plus interest credited; - minus the sum of amounts surrendered (including any applicable surrender charges); - minus amounts transferred out; and - minus any remaining portion of fees where the values of the regular fixed account and the subaccounts are insufficient to cover those fees. SUBACCOUNTS We convert amounts you allocated to the subaccounts into accumulation units. Each time you make a purchase payment or transfer amounts into one of the subaccounts or we apply any purchase payment credits to a subaccount, we credit a certain number of accumulation units to your contract for that subaccount. Conversely, we subtract a certain number of accumulation units from your contract each time you take a partial surrender, transfer amounts out of a subaccount, or we assess a contract administrative charge, a surrender charge or fee for any optional riders with annual charges (if applicable). The accumulation units are the true measure of investment value in each subaccount during the accumulation period. They are related to, but not the same as, the net asset value of the fund in which the subaccount invests. The dollar value of each accumulation unit can rise or fall daily depending on the variable account expenses, performance of the fund and on certain fund expenses. Here is how we calculate accumulation unit values: NUMBER OF UNITS: to calculate the number of accumulation units for a particular subaccount we divide your investment by the current accumulation unit value. 32 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS ACCUMULATION UNIT VALUE: the current accumulation unit value for each subaccount equals the last value times the subaccount's current net investment factor. WE DETERMINE THE NET INVESTMENT FACTOR BY: - adding the fund's current net asset value per share, plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - dividing that sum by the previous adjusted net asset value per share; and - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the accumulation unit value may increase or decrease. You bear all the investment risk in a subaccount. FACTORS THAT AFFECT SUBACCOUNT ACCUMULATION UNITS: accumulation units may change in two ways -- in number and in value. The number of accumulation units you own may fluctuate due to: - additional purchase payments you allocate to the subaccounts; - any purchase payment credits allocated to the subaccounts; - transfers into or out of the subaccounts; - partial surrenders; - surrender charges; and a deduction of: - a prorated portion of the contract administrative charge; - a prorated portion of the ROPP rider fee (if selected); - a prorated portion of the MAV rider fee (if selected); - a prorated portion of the 5-Year MAV rider fee (if selected); - a prorated portion of the EEB rider fee (if selected); - a prorated portion of the EEP rider fee (if selected); - a prorated portion of the Accumulation Benefit rider fee (if selected); - a prorated portion of the GWB for Life rider fee (if selected); and/or - a prorated portion of the SecureSource(SM) rider fee (if selected). Accumulation unit values will fluctuate due to: - changes in fund net asset value; - fund dividends distributed to the subaccounts; - fund capital gains or losses; - fund operating expenses; and/or - mortality and expense risk fees. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 33 MAKING THE MOST OF YOUR CONTRACT AUTOMATED DOLLAR-COST AVERAGING Currently, you can use automated transfers to take advantage of dollar-cost averaging (investing a fixed amount at regular intervals). For example, you might transfer a set amount monthly from a relatively conservative subaccount to a more aggressive one, or to several others, or from the regular fixed account to one or more subaccounts. Automated transfers from the regular fixed account to the subaccounts under automated dollar-cost averaging may not exceed an amount that, if continued, would deplete the regular fixed account within 12 months. You may not set up an automated transfer to or from the GPAs. You may not set up an automated transfer to the regular fixed account or the Special DCA fixed account. You may not set up an automated transfer if the GWB for Life, SecureSource(SM), Accumulation Benefit, or PN program is selected. There is no charge for dollar-cost averaging. This systematic approach can help you benefit from fluctuations in accumulation unit values caused by fluctuations in the market values of the funds. Since you invest the same amount each period, you automatically acquire more units when the market value falls and fewer units when it rises. The potential effect is to lower your average cost per unit. HOW DOLLAR-COST AVERAGING WORKS
By investing an equal number NUMBER of dollars each month AMOUNT ACCUMULATION OF UNITS ... MONTH INVESTED UNIT VALUE PURCHASED Jan $100 $20 5.00 Feb 100 18 5.56 you automatically buy more units when the per unit market price is low... Mar 100 17 5.88 Apr 100 15 6.67 May 100 16 6.25 June 100 18 5.56 July 100 17 5.88 and fewer units when the per unit market price is high. Aug 100 19 5.26 Sept 100 21 4.76 Oct 100 20 5.00
You paid an average price of $17.91 per unit over the 10 months, while the average market price actually was $18.10. Dollar-cost averaging does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. For specific features contact your financial advisor. SPECIAL DOLLAR-COST AVERAGING (SPECIAL DCA) PROGRAM If your purchase payment is at least $10,000, you can choose to participate in the Special DCA program (if available). There is no charge for the Special DCA program. Under the Special DCA program, you can allocate a new purchase payment and any applicable purchase payment credit to a six-month Special DCA fixed account according to the following rules: - You may only allocate a new purchase payment of at least $10,000 to a Special DCA fixed account. - You cannot transfer existing contract values into a Special DCA fixed account. - Each Special DCA arrangement consists of six monthly transfers that begin seven days after we receive your purchase payment. - We make monthly transfers of your Special DCA fixed account value into the subaccounts or PN program model portfolio you select. - You may not use the regular fixed account or the Special DCA fixed account as a destination for the Special DCA monthly transfer. (Exception: if a PN program is in effect, and the model portfolio you have selected includes the regular fixed account, amounts will be transferred from the Special DCA fixed account to the regular fixed account according to the allocation percentage established for the model portfolio you have selected.) - We will change the interest rate on each Special DCA fixed account from time to time at our discretion based on factors that include the competition and the interest rate we are crediting to the regular fixed account at the time of the change. 34 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - We credit each Special DCA fixed account with the current guaranteed annual rate that is in effect on the date we receive your purchase payment. However, we credit this annual rate over the length of the Special DCA arrangement on the balance remaining in your Special DCA fixed account. Therefore, the net effective interest rate you receive is less than the stated annual rate. - We do not credit this interest after we transfer the value out of the Special DCA fixed account into the accounts you selected. - Once you establish a Special DCA fixed account, you cannot allocate additional purchase payments to it. However, you may establish another new Special DCA fixed account and allocate new purchase payments to it. - Fundings from multiple sources are treated as individual purchase payments and a new Special DCA fixed account is opened for each payment (if the Special DCA fixed accounts are available on the valuation date we receive your payment). - You may terminate your participation in the Special DCA program at any time. If you do, for RAVA 4 Advantage and RAVA 4 Select, we will transfer the remaining balance from your Special DCA fixed account to the regular fixed account, if no other specification is made. Interest will be credited according to the rates in effect on the regular fixed account and not the rate that was in effect on the Special DCA fixed account. For RAVA 4 Access, we will transfer the remaining balance from your Special DCA fixed account to variable subaccounts you specified in your termination request, or if no specification is made, according to your current purchase payment allocation. (Exception: if a PN program is in effect when you elect to end your participation in the Special DCA program, and the asset allocation program does not end at the same time, we will transfer the remaining balance to the model portfolio which is in effect). - We can modify the terms of the Special DCA program at any time. Any modifications will not affect any purchase payments that are already in a Special DCA fixed account. For more information on the Special DCA program, contact your financial advisor. The Special DCA program does not guarantee that any subaccount will gain in value nor will it protect against a decline in value if market prices fall. Because dollar-cost averaging involves continuous investing, your success will depend upon your willingness to continue to invest regularly through periods of low price levels. Dollar-cost averaging can be an effective way to help meet your long-term goals. ASSET REBALANCING You can ask us in writing to have the variable subaccount portion of your contract value allocated according to the percentages (in whole percentage amounts) that you choose. We automatically will rebalance the variable subaccount portion of your contract value either quarterly, semi-annually, or annually. The period you select will start to run on the date we record your request. On the first valuation date of each of these periods, we automatically will rebalance your contract value so that the value in each subaccount matches your current subaccount percentage allocations. These percentage allocations must be in whole numbers. Asset rebalancing does not apply to the GPAs, regular fixed account or the Special DCA fixed account. There is no charge for asset rebalancing. The contract value must be at least $2,000. You can change your percentage allocations or your rebalancing period at any time by contacting us in writing. We will restart the rebalancing period you selected as of the date we record your change. You also can ask us in writing or by any other method acceptable to us, to stop rebalancing your contract value. You must allow 30 days for us to change any instructions that currently are in place. For more information on asset rebalancing, contact your financial advisor. Different rules apply to asset rebalancing under the Portfolio Navigator program (see "Portfolio Navigator Asset Allocation Program" below). PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM (PN PROGRAM) The PN program is available for nonqualified annuities and for qualified annuities, except under 401(a) plans. The PN program allows you to allocate your contract value to a PN program model portfolio that consists of subaccounts, each of which invests in a fund with a particular investment objective (underlying fund), and may include certain GPAs and/or the regular fixed account (if available under the PN program) that represent various asset classes (allocation options). The PN program also allows you to periodically update your model portfolio or transfer to a new model portfolio. You are required to participate in the PN program if your contract includes an optional Accumulation Benefit rider, GWB for Life or SecureSource(SM) rider. If your contract does not include one of these riders, you also may elect to participate in the PN program at no additional charge. You should review any PN program information, including the terms of the PN program, carefully. Your financial advisor can provide you with additional information and can answer questions you may have on the PN program. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 35 SERVICE PROVIDERS TO THE PN PROGRAM. RiverSource Investments, an affiliate of ours, serves as non-discretionary investment adviser for the PN program solely in connection with the development of the model portfolios and periodic updates of the model portfolios. In this regard, RiverSource Investments enters into an investment advisory agreement with each contract owner participating in the PN program. In its role as investment adviser to the PN program, RiverSource Investments relies upon the recommendations of a third party service provider. In developing and updating the model portfolios, RiverSource Investments reviews the recommendations, and the third party's rationale for the recommendations, with the third party service provider. RiverSource Investments also conducts periodic due diligence and provides ongoing oversight with respect to the process utilized by the third party service provider. For more information on RiverSource Investment's role as investment adviser for the PN program, please see the Portfolio Navigator Asset Allocation Program Investment Adviser Disclosure Document, which is based on Part II of RiverSource Investment's Form ADV, the SEC investment adviser registration form. The Disclosure Document is delivered to contract owners at the time they enroll in the PN program. Currently, the PN program model portfolios are designed and periodically updated for RiverSource Investments by Morningstar Associates, LLC, a registered investment adviser and wholly-owned subsidiary of Morningstar, Inc. RiverSource Investments may replace Morningstar Associates and may hire additional firms to assist with the development and periodic updates of the model portfolios in the future. Also, RiverSource Investments may elect to develop and periodically update the model portfolios without the assistance of a third party service provider. The criteria used in developing and updating the model portfolios do not guarantee or predict future performance. Neither Morningstar Associates nor RiverSource Investments, in connection with their respective roles, provides any individualized investment advice to contract owners regarding the application of a particular model portfolio to his or her circumstances. Contract owners are solely responsible for determining whether any model portfolio is appropriate. We identify to Morningstar Associates the universe of allocation options that can be included in the model portfolios and, in limited circumstances, underlying funds of such allocation options (the universe of allocation options). The universe of allocation options may not include all allocation options available under your contract. We may modify from time to time such universe of allocation options. These modifications may reflect instructions from, or respond to actions taken by, any party making an allocation option available to us. For example, we may modify the universe of allocation options in response to the liquidation, merger or other closure of a fund. Once we identify this universe of allocation options to Morningstar Associates, neither RiverSource Investments, nor any of its affiliates, including us, dictates to Morningstar Associates the number of allocation options that should be included in a model portfolio, the percentage that any allocation option represents in a model portfolio, or whether a particular allocation option may be included in a model portfolio. POTENTIAL CONFLICT OF INTEREST. In identifying the universe of allocation options, we and our affiliates, including RiverSource Investments, are subject to competing interests that may influence the allocation options we propose. These competing interests involve compensation that RiverSource Investments or its affiliates may receive as the investment adviser to the RiverSource Variable Portfolio Funds and certain allocation options as well as compensation we or an affiliate of ours may receive for providing services in connection with the RiverSource Variable Portfolio Funds and such allocation options or their underlying funds. These competing interests also involve compensation we or an affiliate of ours may receive if certain funds that RiverSource Investments does not advise are included in model portfolios. The inclusion of funds that pay compensation to RiverSource Investments or an affiliate may have a positive or negative impact on performance. As an affiliate of RiverSource Investments, the investment adviser to the RiverSource Variable Portfolio Funds and certain allocation options, we may have an incentive to identify the RiverSource Variable Portfolio Funds and such allocation options for consideration as part of a model portfolio over unaffiliated funds. In addition, RiverSource Investments, in its capacity as investment adviser to the RiverSource Variable Portfolio Funds, monitors the performance of the RiverSource Variable Portfolio Funds. In this role RiverSource Investments may, from time to time, recommend certain changes to the board of directors of the RiverSource Variable Portfolio Funds. These changes may include but not be limited to a change in portfolio management or fund strategy or the closure or merger of a RiverSource Variable Portfolio Fund. RiverSource Investments also may believe that certain RiverSource Variable Portfolio Funds may benefit from additional assets or could be harmed by redemptions. All of these factors may impact RiverSource Investment's view regarding the composition and allocation of a model portfolio. RiverSource Investments' role as investment adviser to the PN program in connection with the development and updating of the model portfolios, and our identification of the universe of allocation options to Morningstar Associates for consideration, may influence the allocation of assets to or away from allocation options that are affiliated with, or managed or advised by RiverSource Investments or its affiliates. 36 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS RiverSource Investments, we or another affiliate of ours may receive higher compensation from certain unaffiliated funds that RiverSource Investments does not advise or manage. (See "Expense Summary -- Annual Operating Expenses of the Funds" and "The Variable Account and the Funds -- The Funds.") Therefore, we may have an incentive to identify these unaffiliated funds to Morningstar Associates for inclusion in the model portfolios. In addition, we or an affiliate of ours may receive higher compensation from certain GPAs or the regular fixed account than from other allocation options. We therefore may have an incentive to identify these allocation options to Morningstar Associates for inclusion in the model portfolios. Some officers and employees of RiverSource Investments are also officers or employees of us or our affiliates which may be involved in, and/or benefit from, your participation in the PN program. These officers and employees may have an incentive to make recommendations, or take actions, that benefit one or more of the entities they represent, rather than participants in the PN program. PARTICIPATING IN THE PN PROGRAM. If you choose or are required to participate in the PN program, you are responsible for determining which model portfolio is best for you. Your financial advisor can help you make this determination. In addition, your financial advisor may provide you with an investor questionnaire, a tool to help define your investing style which is based on factors such as your investment goals, your tolerance for risk and how long you intend to invest. Your responses to the investor questionnaire can help you determine which model portfolio most closely matches your investing style. While the scoring of the investor questionnaire is objective, there is no guarantee that your responses to the investor questionnaire accurately reflect your tolerance for risk. Similarly, there is no guarantee that the asset mix reflected in the model portfolio you select after completing the investor questionnaire is appropriate to your ability to withstand investment risk. Neither RiverSource Life nor RiverSource Investments is responsible for your decision to participate in the PN program, your selection of a specific model portfolio or your decision to change to an updated or different model portfolio. Currently, there are five PN model portfolios ranging from conservative to aggressive. You may not use more than one model portfolio at a time. Each model portfolio specifies allocation percentages to each of the subaccounts, any GPAs and/or the regular fixed account that make up that model portfolio. By participating in the PN program, you instruct us to invest your contract value in the subaccounts, the regular fixed account and/or any GPAs (if included) according to the allocation percentages stated for the specific model portfolio you have selected. By participating in the PN program, you also instruct us to automatically rebalance your contract value quarterly in order to maintain alignment with these allocation percentages. Special rules apply to the GPAs if they are included in a model portfolio. Under these rules: - no MVA will apply when rebalancing occurs within a specific model portfolio (but an MVA may apply if you elect to transfer to a new model portfolio); - no MVA will apply if you reallocate your contract value according to an updated model portfolio; and - no MVA will apply when you elect an annuity payout plan while your contract value is invested in a model portfolio. (See "Guarantee Period Accounts -- Market Value Adjustment.") If you initially allocate qualifying purchase payments and applicable purchase payment credits to the Special DCA fixed account, when available (see "The Special DCA Fixed Account"), and you are participating in the PN program, we will make monthly transfers in accordance with your instructions from the Special DCA fixed account (and subaccounts we may choose to allow for DCA arrangements which are not part of a model portfolio -- "excluded accounts") into the model portfolio you have chosen. Each model portfolio is evaluated periodically by Morningstar Associates, which may then provide updated recommendations to RiverSource Investments. Model portfolios also may be evaluated in connection with the liquidation, substitution or merger of an underlying fund, a change in the investment objective of an underlying fund or when an underlying fund stops selling its shares to the variable account. As a result, the model portfolios may be updated from time to time (typically annually) with new allocation options and allocation percentages. When these reassessments are completed and changes to the model portfolios occur, you will receive a reassessment letter. This reassessment letter will notify you that the model portfolio has been reassessed and that, unless you instruct us not to do so, your contract value, less amounts allocated to the Special DCA fixed account, is scheduled to be reallocated according to the updated model portfolio. The reassessment letter will specify the scheduled reallocation date and will be sent to you at least 30 days prior to this date. Based on the written authorization you provided when you enrolled in the PN program, if you do not notify us otherwise, you will be deemed to have instructed us to reallocate your contract value, less amounts allocated to the Special DCA fixed account, according to the updated model portfolio. If you do not want your contract value, less amounts allocated to the Special DCA fixed account, to be reallocated according to the updated model portfolio, you must provide written or other authorized notification as specified in the reassessment letter. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 37 In addition to this periodic reassessment and reallocation of the model portfolios, you may also request a change to your model portfolio up to twice per contract year by written request on an authorized form or by another method agreed to by us. Such changes include changing to a different model portfolio at any time or requesting to reallocate according to the updated version of your existing model portfolio other than according to the reassessment process described above. If your contract includes an optional Accumulation Benefit, GWB for Life rider or SecureSource(SM) rider and you make such a change (other than a scheduled periodic reallocation), we may charge you a higher fee for your rider. If your contract includes Secure Source(SM) rider, we reserve the right to limit the number of model portfolio changes if required to comply with the written instructions of a Fund (see "Market Timing"). If your contract includes the GWB for Life rider or SecureSource(SM) rider, we reserve the right to limit the number of model portfolios from which you can select, subject to state restrictions. We reserve the right to change the terms and conditions of the PN program upon written notice to you. This includes but is not limited to the right to: - limit your choice of models based on the amount of your initial purchase payment we accept or when you take a withdrawal; - cancel required participation in the program after 30 days written notice; - substitute a fund of funds for your current model portfolio if permitted under applicable securities law; and - discontinue the PN program. We will give you 30 days' written notice of any such change. In addition, RiverSource Investments has the right to terminate its investment advisory agreement with you upon 30 days' written notice. If RiverSource Investments terminates its investment advisory agreement with you and other participants in the PN program, we would either have to find a replacement investment adviser or terminate the PN program unless otherwise permitted by applicable law, regulations or positions of the SEC staff. RISKS. Asset allocation through the PN program does not guarantee that your contract will increase in value nor will it protect against a decline in value if market prices fall. By spreading your contract value among various allocation options under the PN program, you may be able to reduce the volatility in your contract value, but there is no guarantee that this will happen. Although each model portfolio is intended to optimize returns given various levels of risk tolerance, a model portfolio may not perform as intended. A model portfolio, the allocation options and market performance may differ in the future from historical performance and from the assumptions upon which the model portfolio is based, which could cause the model portfolio to be ineffective or less effective in reducing volatility. Investment performance of your contract value could be better or worse by participating in the PN program than if you had not participated. A model portfolio may perform better or worse than any single fund or allocation option or any other combination of funds or allocation options. The performance of a model portfolio depends on the performance of the component funds. In addition, the timing of your investment and automatic rebalancing may affect performance. Quarterly rebalancing and periodic updating of the model portfolios can cause their component funds to incur transactional expenses to raise cash for money flowing out of the funds or to buy securities with money flowing into the funds. Moreover, a large outflow of money from the funds may increase the expenses attributable to the assets remaining in the funds. These expenses can adversely affect the performance of the relevant funds and of the model portfolios. In addition, when a particular fund needs to buy or sell securities due to quarterly rebalancing or periodic updating of a model portfolio, it may hold a large cash position. A large cash position could detract from the achievement of the fund's investment objective in a period of rising market prices; conversely, a large cash position would reduce the fund's magnitude of loss in the event of falling market prices and provide the fund with liquidity to make additional investments or to meet redemptions. (See also the description of competing interests in the section titled "Service Providers to the PN Program" above.) For additional information regarding the risks of investing in a particular fund, see that fund's prospectus. PN PROGRAM UNDER THE ACCUMULATION BENEFIT RIDER, GWB FOR LIFE RIDER OR SECURESOURCE(SM) RIDER If you purchase the optional Accumulation Benefit rider, the optional GWB for Life rider or the optional SecureSource(SM) rider, you are required to participate in the PN program under the terms of each rider. - ACCUMULATION BENEFIT RIDER: You cannot terminate the Accumulation Benefit rider. As long as the Accumulation Benefit rider is in effect, your contract value must be invested in one of the model portfolios. The Accumulation Benefit rider automatically ends at the end of the waiting period and you then have the option to cancel your participation in the PN program. At all other times, if you do not want to participate in any of the model portfolios, you must terminate your contract by requesting a full surrender. Surrender charges and tax penalties may apply. THEREFORE, YOU SHOULD NOT SELECT THE ACCUMULATION BENEFIT RIDER IF YOU DO NOT INTEND TO CONTINUE PARTICIPATING IN THE PN PROGRAM (AS IT NOW EXISTS OR AS WE MAY MODIFY IT IN THE FUTURE) UNTIL THE END OF THE WAITING PERIOD. 38 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - GWB FOR LIFE OR SECURESOURCE(SM) RIDER: The GWB for Life or SecureSource(SM) rider requires that your contract value be invested in one of the model portfolios for the life of the contract. Subject to state restrictions, we reserve the right to limit the number of model portfolios from which you can select based on the dollar amount of purchase payments you make. Because you cannot terminate the GWB for Life or SecureSource(SM) rider once you have selected it, you must terminate your contract by requesting a full surrender if you do not want to participate in any of the model portfolios. Surrender charges and tax penalties may apply. THEREFORE, YOU SHOULD NOT SELECT THE GWB FOR LIFE OR SECURESOURCE(SM) RIDER IF YOU DO NOT INTEND TO CONTINUE PARTICIPATING IN THE PN PROGRAM (AS IT NOW EXISTS OR AS WE MAY MODIFY IT IN THE FUTURE) FOR THE LIFE OF THE CONTRACT. OPTIONAL PN PROGRAM If you do not select the optional Accumulation Benefit rider, the optional GWB for Life rider or an optional SecureSource(SM) rider with your contract, you may elect to participate in the PN program by adding the optional PN program to your contract at no additional charge. You can elect to participate in the PN program at any time. You may cancel your participation in the PN program at any time by giving us written notice. Upon cancellation, automated rebalancing associated with the PN program will end. You will also cancel the PN program if you initiate transfers other than transfers to one of the current model portfolios or transfers from a Special DCA fixed account (see "Special Dollar-Cost Averaging (Special DCA) Program") or an excluded account. Partial surrenders do not cancel the PN program. The PN program will terminate on the date you make a full surrender from your contract or on your settlement date. TRANSFERRING AMONG ACCOUNTS The transfer rights discussed in this section do not apply while a PN model portfolio is in effect. You may transfer contract value from any one subaccount, GPAs or the regular fixed account, to another subaccount before annuity payouts begin. For RAVA 4 Advantage and RAVA 4 Select contracts, certain restrictions apply to transfers involving the GPAs and the regular fixed account. For RAVA 4 Access contracts, you cannot transfer to the regular fixed account unless it is included in the PN program model portfolio that you selected. When your request to transfer will be processed depends on when we receive it: - If we receive your transfer request at our home office before the close of business, we will process your transfer using the accumulation unit value we calculate on the valuation date we received your transfer request. - If we receive your transfer request at our home office at or after the close of business, we will process your transfer using the accumulation unit value we calculate on the next valuation date after we received your transfer request. There is no charge for transfers. Before making a transfer, you should consider the risks involved in changing investments. Transfers out of the GPAs will be subject to an MVA if done more than 30 days before the end of the guarantee period. We may suspend or modify transfer privileges at any time. For information on transfers after annuity payouts begin, see "Transfer policies" below. TRANSFER POLICIES FOR RAVA 4 ADVANTAGE AND RAVA 4 SELECT - Before annuity payouts begin, you may transfer contract values between the subaccounts, or from the subaccounts to the GPAs and regular fixed account at any time. The amount transferred to any GPA must be at least $1,000. However, if you made a transfer from the regular fixed account to the subaccounts or the GPAs, you may not make a transfer from any subaccount or GPA back to the regular fixed account until the next contract anniversary. We reserve the right to limit transfers to the regular fixed account if the interest rate we are then currently crediting to the regular fixed account is equal to the minimum interest rate stated in the contract. - You may transfer contract values from the regular fixed account to the subaccounts or the GPAs once a year during a 31-day transfer period starting on each contract anniversary (except for automated transfers, which can be set up at any time for certain transfer periods subject to certain minimums). Transfers from the regular fixed account are not subject to an MVA. Currently, transfers out of the regular fixed account are limited to the greater of: a) 30% of the regular fixed account value at the beginning of the contract year, or b) the amount transferred out of the regular fixed account in the previous contract year, excluding any automated transfer amounts. If an automated dollar-cost averaging arrangement is established within 30 days of contract issue, the 30% limitation does not apply to transfers made from the regular fixed account to the subaccounts for the duration of this initial arrangement. - You may transfer contract values from any GPA to the subaccounts, regular fixed account or other GPA any time after 60 days of transfer or payment allocation into such GPA. Transfers made more than 30 days before the end of the guarantee period will receive an MVA, which may result in a gain or loss of contract value, unless an exception applies (see "The Guarantee Period Accounts (GPAs) -- Market Value Adjustment (MVA)"). RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 39 - If we receive your request within 30 days before the contract anniversary date, the transfer from the regular fixed account to the subaccounts will be effective on the anniversary. - If we receive your request on or within 30 days after the contract anniversary date, the transfer from the regular fixed account to the subaccounts or GPAs will be effective on the valuation date we receive it. - We will not accept requests for transfers from the regular fixed account at any other time. - You may not make a transfer to the Special DCA fixed account. - Once annuity payouts begin, you may not make transfers to or from the GPAs or the regular fixed account, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. When annuity payments begin, you must transfer all contract value out of any GPAs. FOR RAVA 4 ACCESS - Before annuity payouts begin, you may transfer contract values between the subaccounts, or from the subaccounts to the GPAs at any time. The amount transferred to any GPA must be at least $1,000. - You may not make a transfer to the regular fixed account unless it is part of a model portfolio in which you elect to participate. - You may transfer contract values from any GPA to the subaccounts, or other GPA any time after 60 days of transfer or payment allocation into such GPA. Transfers made more than 30 days before the end of the guarantee period will receive an MVA, which may result in a gain or loss of contract value, unless an exception applies (see "The Guarantee Period Accounts (GPAs) -- Market Value Adjustment (MVA)"). - You may not make a transfer to the Special DCA fixed account. - Once annuity payouts begin, you may not make transfers to or from the GPAs, but you may make transfers once per contract year among the subaccounts. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. When annuity payments begin, you must transfer all contract value out of any GPAs. MARKET TIMING Market timing can reduce the value of your investment in the contract. If market timing causes the returns of an underlying fund to suffer, contract value you have allocated to a subaccount that invests in that underlying fund will be lower, too. Market timing can cause you, any joint owner of the contract and your beneficiary(ies) under the contract a financial loss. WE SEEK TO PREVENT MARKET TIMING. MARKET TIMING IS FREQUENT OR SHORT-TERM TRADING ACTIVITY. WE DO NOT ACCOMMODATE SHORT-TERM TRADING ACTIVITIES. DO NOT BUY A CONTRACT IF YOU WISH TO USE SHORT-TERM TRADING STRATEGIES TO MANAGE YOUR INVESTMENT. THE MARKET TIMING POLICIES AND PROCEDURES DESCRIBED BELOW APPLY TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN THE CONTRACT. THE UNDERLYING FUNDS IN WHICH THE SUBACCOUNTS INVEST HAVE THEIR OWN MARKET TIMING POLICIES AND PROCEDURES. THE MARKET TIMING POLICIES OF THE UNDERLYING FUNDS MAY BE MORE RESTRICTIVE THAN THE MARKET TIMING POLICIES AND PROCEDURES WE APPLY TO TRANSFERS AMONG THE SUBACCOUNTS OF THE CONTRACT, AND MAY INCLUDE REDEMPTION FEES. WE RESERVE THE RIGHT TO MODIFY OUR MARKET TIMING POLICIES AND PROCEDURES AT ANY TIME WITHOUT PRIOR NOTICE TO YOU. Market timing may hurt the performance of an underlying fund in which a subaccount invests in several ways, including but not necessarily limited to: - diluting the value of an investment in an underlying fund in which a subaccount invests; - increasing the transaction costs and expenses of an underlying fund in which a subaccount invests; and - preventing the investment adviser(s) of an underlying fund in which a subaccount invests from fully investing the assets of the fund in accordance with the fund's investment objectives. Funds available as investment options under the contract that invest in securities that trade in overseas securities markets may be at greater risk of loss from market timing, as market timers may seek to take advantage of changes in the values of securities between the close of overseas markets and the close of U.S. markets. Also, the risks of market timing may be greater for underlying funds that invest in securities such as small cap stocks, high yield bonds, or municipal securities, that may be traded infrequently. 40 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS IN ORDER TO HELP PROTECT YOU AND THE UNDERLYING FUNDS FROM THE POTENTIALLY HARMFUL EFFECTS OF MARKET TIMING ACTIVITY, WE APPLY THE FOLLOWING MARKET TIMING POLICY TO DISCOURAGE FREQUENT TRANSFERS OF CONTRACT VALUE AMONG THE SUBACCOUNTS OF THE VARIABLE ACCOUNT: We try to distinguish market timing from transfers that we believe are not harmful, such as periodic rebalancing for purposes of an asset allocation, dollar-cost averaging and asset rebalancing program that may be described in this prospectus. There is no set number of transfers that constitutes market timing. Even one transfer in related accounts may be market timing. We seek to restrict the transfer privileges of a contract owner who makes more than three subaccount transfers in any 90 day period. We also reserve the right to refuse any transfer request, if, in our sole judgment, the dollar amount of the transfer request would adversely affect unit values. If we determine, in our sole judgment, that your transfer activity constitutes market timing, we may modify, restrict or suspend your transfer privileges to the extent permitted by applicable law, which may vary based on the state law that applies to your contract and the terms of your contract. These restrictions or modifications may include, but not be limited to: - requiring transfer requests to be submitted only by first-class U.S. mail; - not accepting hand-delivered transfer requests or requests made by overnight mail; - not accepting telephone or electronic transfer requests; - requiring a minimum time period between each transfer; - not accepting transfer requests of an agent acting under power of attorney; - limiting the dollar amount that you may transfer at any one time; or - suspending the transfer privilege. Subject to applicable state law and the terms of each contract, we will apply the policy described above to all contract owners uniformly in all cases. We will notify you in writing after we impose any modification, restriction or suspension of your transfer rights. We cannot guarantee that we will be able to identify and restrict all market timing activity. Because we exercise discretion in applying the restrictions described above, we cannot guarantee that we will be able to restrict all market timing activity. In addition, state law and the terms of some contracts may prevent us from stopping certain market timing activity. Market timing activity that we are unable to identify and/or restrict may impact the performance of the underlying funds and may result in lower contract values. IN ADDITION TO THE MARKET TIMING POLICY DESCRIBED ABOVE, WHICH APPLIES TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT, YOU SHOULD CAREFULLY REVIEW THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS. THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS MAY BE MATERIALLY DIFFERENT THAN THOSE WE IMPOSE ON TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CONTRACT AND MAY INCLUDE MANDATORY REDEMPTION FEES AS WELL AS OTHER MEASURES TO DISCOURAGE FREQUENT TRANSFERS. AS AN INTERMEDIARY FOR THE UNDERLYING FUNDS, WE ARE REQUIRED TO ASSIST THEM IN APPLYING THEIR MARKET TIMING POLICIES AND PROCEDURES TO TRANSACTIONS INVOLVING THE PURCHASE AND EXCHANGE OF FUND SHARES. THIS ASSISTANCE MAY INCLUDE BUT NOT BE LIMITED TO PROVIDING THE UNDERLYING FUND UPON REQUEST WITH YOUR SOCIAL SECURITY NUMBER, TAXPAYER IDENTIFICATION NUMBER OR OTHER UNITED STATES GOVERNMENT-ISSUED IDENTIFIER AND THE DETAILS OF YOUR CONTRACT TRANSACTIONS INVOLVING THE UNDERLYING FUND. AN UNDERLYING FUND, IN ITS SOLE DISCRETION, MAY INSTRUCT US AT ANY TIME TO PROHIBIT YOU FROM MAKING FURTHER TRANSFERS OF CONTRACT VALUE TO OR FROM THE UNDERLYING FUND, AND WE MUST FOLLOW THIS INSTRUCTION. WE RESERVE THE RIGHT TO ADMINISTER AND COLLECT ON BEHALF OF AN UNDERLYING FUND ANY REDEMPTION FEE IMPOSED BY AN UNDERLYING FUND. MARKET TIMING POLICIES AND PROCEDURES ADOPTED BY UNDERLYING FUNDS MAY AFFECT YOUR INVESTMENT IN THE CONTRACT IN SEVERAL WAYS, INCLUDING BUT NOT LIMITED TO: - Each fund may restrict or refuse trading activity that the fund determines, in its sole discretion, represents market timing. - Even if we determine that your transfer activity does not constitute market timing under the market timing policies described above which we apply to transfers you make under the contract, it is possible that the underlying fund's market timing policies and procedures, including instructions we receive from a fund, may require us to reject your transfer request. For example, while we disregard transfers permitted under any asset allocation, dollar-cost averaging and asset rebalancing programs that may be described in this prospectus, we cannot guarantee that an underlying fund's market timing policies and procedures will do so. Orders we place to purchase fund shares for the variable accounts are subject to acceptance by the fund. We reserve the right to reject without prior notice to you any transfer request if the fund does not accept our order. - Each underlying fund is responsible for its own market timing policies, and we cannot guarantee that we will be able to implement specific market timing policies and procedures that a fund has adopted. As a result, a fund's returns might be adversely affected, and a fund might terminate our right to offer its shares through the variable account. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 41 - Funds that are available as investment options under the contract may also be offered to other intermediaries who are eligible to purchase and hold shares of the fund, including without limitation, separate accounts of other insurance companies and certain retirement plans. Even if we are able to implement a fund's market timing policies, we cannot guarantee that other intermediaries purchasing that same fund's shares will do so, and the returns of that fund could be adversely affected as a result. FOR MORE INFORMATION ABOUT THE MARKET TIMING POLICIES AND PROCEDURES OF AN UNDERLYING FUND, THE RISKS THAT MARKET TIMING POSE TO THAT FUND, AND TO DETERMINE WHETHER AN UNDERLYING FUND HAS ADOPTED A REDEMPTION FEE, SEE THAT FUND'S PROSPECTUS. 42 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS HOW TO REQUEST A TRANSFER OR SURRENDER 1 BY LETTER Send your name, contract number, Social Security Number or Taxpayer Identification Number* and signed request for a transfer or surrender to: RIVERSOURCE LIFE INSURANCE COMPANY 70100 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS, MN 55474 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers or surrenders: Contract value or entire account balance * Failure to provide your Social Security Number or Taxpayer Identification Number may result in mandatory tax withholding on the taxable portion of the distribution. 2 BY AUTOMATED TRANSFERS AND AUTOMATED PARTIAL SURRENDERS Your financial advisor can help you set up automated transfers or partial surrenders among your subaccounts or regular fixed account (if available). You can start or stop this service by written request or other method acceptable to us. You must allow 30 days for us to change any instructions that are currently in place. - Automated transfers to the GPAs, the regular fixed account or the Special DCA fixed account are not allowed. - Automated transfers from the regular fixed account to the subaccounts under an automated dollar-cost averaging arrangement may not exceed an amount that, if continued, would deplete the regular fixed account within 12 months. - Automated surrenders may be restricted by applicable law under some contracts. - You may not make additional purchase payments if automated partial surrenders are in effect. - Automated partial surrenders may result in IRS taxes and penalties on all or part of the amount surrendered. - The balance in any account from which you make an automated transfer or automated partial surrender must be sufficient to satisfy your instructions. If not, we will suspend your entire automated arrangement until the balance is adequate. - If we must suspend your automated transfer or automated partial surrender arrangement for six months, we reserve the right to discontinue the arrangement in its entirety. - If a PN program is in effect, you are not allowed to set up automated transfers except in connection with a Special DCA fixed account. MINIMUM AMOUNT Transfers or surrenders: $50 MAXIMUM AMOUNT Transfers or surrenders: None (except for automated transfers from the regular fixed account) 3 BY TELEPHONE Call between 7 a.m. and 7 p.m. Central time: (800) 862-7919 TTY service for the hearing impaired: (800) 285-8846 MINIMUM AMOUNT Transfers or surrenders: $250 or entire account balance MAXIMUM AMOUNT Transfers: Contract value or entire account balance Surrenders: $100,000 We answer telephone requests promptly, but you may experience delays when the call volume is unusually high. If you are unable to get through, use the mail procedure as an alternative. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 43 We will honor any telephone transfer or surrender requests that we believe are authentic and we will use reasonable procedures to confirm that they are. This includes asking identifying questions and recording calls. We will not allow telephone surrender within 30 days of a phoned-in address change. As long as we follow the procedures, we (and our affiliates) will not be liable for any loss resulting from fraudulent requests. Telephone transfers or surrenders are automatically available. You may request that telephone transfers or surrenders not be authorized from your account by writing to us. SURRENDERS You may surrender all or part of your contract at any time before annuity payouts begin by sending us a written request or calling us. We will process your surrender request on the valuation date we receive it. If we receive your surrender request at our home office before the close of business, we will process your surrender using the accumulation unit value we calculate on the valuation date we received your surrender request. If we receive your surrender request at our home office at or after the close of business, we will process your surrender using the accumulation unit value we calculate on the next valuation date after we received your surrender request. We may ask you to return the contract. You may have to pay contract administrative charges, surrender charges, or any applicable optional rider charges (see "Charges") and IRS taxes and penalties (see "Taxes"). You cannot make surrenders after annuity payouts begin except under Plan E (see "The Annuity Payout Period -- Annuity Payout Plans"). Any partial surrenders you take under the contract will reduce your contract value. As a result, the value of your death benefit or any optional benefits you have elected also will be reduced. If you have elected the GWB for Life rider or SecureSource(SM) rider and your partial surrenders in any contract year exceed the permitted surrender amount under the terms of the GWB for Life rider or SecureSource(SM) rider, your benefits under the rider may be reduced (see "Optional Benefits"). In addition, surrenders you are required to take to satisfy the RMDs under the Code may reduce the value of certain death benefits and optional benefits (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). SURRENDER POLICIES If you have a balance in more than one account and you request a partial surrender, we will withdraw money from all your subaccounts and/or the regular fixed account, in the same proportion as your value in each account correlates to your total contract value, less any GPA or Special DCA fixed account, unless you request otherwise. We will not withdraw money for a partial surrender from any GPAs or Special DCA fixed account you may have, unless insufficient amounts are available from your subaccounts and/or regular fixed account. However, you may request specifically surrender from a GPA or Special DCA fixed account. The minimum contract value after partial surrender is zero. If you elected a SecureSource(SM) rider, the minimum contract value is zero and you do not have the option to request from which account to surrender. RECEIVING PAYMENT 1 BY REGULAR OR EXPRESS MAIL - payable to you; - mailed to address of record. NOTE: We will charge you a fee if you request express mail delivery. 2 BY WIRE - request that payment be wired to your bank; - bank account must be in the same ownership as your contract; and - pre-authorization required. NOTE: We will charge you a fee if you request that payment be wired to your bank. For instructions, please contact your financial advisor. 44 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS Normally, we will send the payment within seven days after receiving your request. However, we may postpone the payment if: -- the surrender amount includes a purchase payment check that has not cleared; -- the NYSE is closed, except for normal holiday and weekend closings; -- trading on the NYSE is restricted, according to SEC rules; -- an emergency, as defined by SEC rules, makes it impractical to sell securities or value the net assets of the accounts; or -- the SEC permits us to delay payment for the protection of security holders. TSA -- SPECIAL PROVISIONS PARTICIPANTS IN TAX-SHELTERED ANNUITIES The contract is not intended for use in connection with an employer sponsored 403(b) plan that is subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). In the event that the employer either by affirmative election or inadvertent action causes contributions under a plan that is subject to ERISA to be made to this contract, we will not be responsible for any obligations and requirements under ERISA and the regulations thereunder. You should consult with your employer to determine whether your 403(b) plan is subject to ERISA. The employer must comply with certain nondiscrimination requirements for certain types of contributions under a TSA contract to be excluded from taxable income. You should consult your employer to determine whether the nondiscrimination rules apply to you. The Code imposes certain restrictions on your right to receive early distributions from a TSA: - Distributions attributable to salary reduction contributions (plus earnings) made after Dec. 31, 1988, or to transfers or rollovers from other contracts, may be made from the TSA only if: -- you are at least age 59 1/2; -- you are disabled as defined in the Code; -- you severed employment with the employer who purchased the contract; or -- the distribution is because of your death. - If you encounter a financial hardship (as provided by the Code), you may be eligible to receive a distribution of all contract values attributable to salary reduction contributions made after Dec. 31, 1988, but not the earnings on them. - Even though a distribution may be permitted under the above rules, it may be subject to IRS taxes and penalties (see "Taxes"). - The above restrictions on distributions do not affect the availability of the amount credited to the contract as of Dec. 31, 1988. The restrictions also do not apply to transfers or exchanges of contract value within the contract, or to another registered variable annuity contract or investment vehicle available through the employer. - If the contract has a loan provision, the right to receive a loan is described in detail in your contract. Loans will not be available if you have selected the GWB for Life, SecureSource(SM) or Accumulation Benefit rider. CHANGING OWNERSHIP You may change ownership of your nonqualified annuity at any time by completing a change of ownership form we approve and sending it to our home office. If you are a natural person and you own a nonqualified annuity, you may change the annuitant or successor annuitant if the request is made before annuity payments begin and while the existing annuitant is living. The change will become binding on us when we receive and record it. We will honor any change of ownership request that we believe is authentic and we will use reasonable procedures to confirm authenticity. If we follow these procedures, we will not take any responsibility for the validity of the change. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 45 Please consider carefully whether or not you wish to change ownership of your nonqualified annuity if you have elected the ROPP, MAV, 5-Year MAV, EEB, EEP, Accumulation Benefit, GWB for Life or SecureSource(SM). If you change ownership of your contract, we will terminate the ROPP and EEP. This includes both the EEP Part I benefits and the EEP Part II benefits. (See the description of these terms in "Optional Benefits".) In addition, the terms of the EEB, the MAV and the 5-Year MAV will change due to a change of ownership. If the new owner is older than age 75, the EEB will terminate. Otherwise, the EEB will effectively "start over." We will treat the EEB as if it is issued on the day the change of ownership is made, using the attained age of the new owner as the "issue age" to determine the benefit levels. The account value on the date of the ownership change will be treated as a "purchase payment" in determining future values of "earnings at death" under the EEB. If the new owner is older than age 75, the MAV and the 5-Year MAV will terminate. If the MAV or the 5-Year MAV on the date of ownership change is greater than the account value on the date of the ownership change, we will set the MAV or the 5-Year MAV equal to the account value. Otherwise, the MAV or the 5-Year MAV value will not change due to a change in ownership. The Accumulation Benefit rider, the GWB for Life rider and SecureSource(SM) -- Single Life rider will continue upon change of ownership. The SecureSource(SM) -- Joint Life rider, if selected, only allows transfer of the ownership of the annuity contract between covered spouses or their revocable trust(s). If ownership is transferred from a covered spouse to their revocable trust(s), the annuitant must be one of the covered spouses. No other ownership changes are allowed while this rider is in force. Please see the descriptions of these riders in "Optional Benefits." The rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force) for any rider that continues after a change of ownership. We reserve the right to assess charges for the number of days the rider was in force for any rider that is terminated due to a change of ownership. If you have a nonqualified annuity, you may incur income tax liability by transferring, assigning or pledging any part of it. (See "Taxes.") If you have a qualified annuity, you may not sell, assign, transfer, discount or pledge your contract as collateral for a loan, or as security for the performance of an obligation or for any other purpose except as required or permitted by the Code. However, if the owner is a trust or custodian, or an employer acting in similar capacity, ownership of the contract may be transferred to the annuitant. 46 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS BENEFITS IN CASE OF DEATH -- STANDARD DEATH BENEFIT We will pay the death benefit to your beneficiary upon your death. If a contract has more than one person as the owner, we will pay benefits upon the first to die of any owner. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary as follows: If you are age 75 or younger on the date we issue the contract, the beneficiary receives the greater of: - contract value, less any purchase payment credits subject to reversal less a pro rata portion of rider fees; or - purchase payments minus adjusted partial surrenders. If you are age 76 or older on the date we issue the contract, the beneficiary receives the contract value, less any purchase payment credits subject to reversal, less a pro rata portion of rider fees. ADJUSTED PARTIAL SURRENDERS PS X DB CV PS = the partial surrender including any applicable surrender charge. DB = the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. EXAMPLE OF STANDARD DEATH BENEFIT CALCULATION WHEN YOU ARE AGE 75 OR YOUNGER ON THE CONTRACT EFFECTIVE DATE: - You purchase the contract with a payment of $20,000 - During the second contract year the contract value falls to $18,000, at which point you take a $1,500 partial surrender, leaving a contract value of $16,500. We calculate the death benefit as follows: The total purchase payments minus adjustments for partial surrenders: Total purchase payments $20,000 minus adjusted partial surrenders, calculated as: $1,500 X $20,000 ---------------- = $18,000 - 1,667 ------- for a death benefit of: $18,333
IF YOU DIE BEFORE YOUR SETTLEMENT DATE When paying the beneficiary, we will process the death claim on the valuation date that our death claim requirements are fulfilled. We will determine the contract's value using the accumulation unit value we calculate on that valuation date. The death benefit will never be less than the surrender value adjusted by the MVA formula. We pay interest, if any, at a rate no less than required by law. If requested, we will mail payment to the beneficiary within seven days after our death claim requirements are fulfilled. NONQUALIFIED ANNUITIES If your spouse is sole beneficiary and you die before the settlement date, your spouse may keep the contract as owner. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse elects to keep the contract as owner, the following describes the standard death benefit: - If your spouse was age 75 or younger as of the date we issued the contract, the beneficiary of your spouse's contract receives the greater of: - contract value, less any purchase payment credits subject to reversal less a pro rata portion of rider fees; or - purchase payments minus adjusted partial surrenders. If your spouse was age 76 or older as of the date we issued the contract, the beneficiary of your spouse's contract receives the contract value, less any purchase payment credits subject to reversal, less a pro rata portion of rider fees. If you elected any optional contract features or riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. The SecureSource(SM) -- Joint Life rider, if selected, will continue only if the spouse electing the spousal continuation provision of the contract is a covered spouse and continues the contract as the new owner. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 47 If your beneficiary is not your spouse, we will pay the beneficiary in a lump sum unless you give us other written instructions. Generally, we must fully distribute the death benefit within five years of your death. However, the beneficiary may receive payouts under any annuity payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year after your death, or other date as permitted by the IRS; and - the payout period does not extend beyond the beneficiary's life or life expectancy. Additionally, the optional SecureSource(SM) rider, if selected, will terminate. QUALIFIED ANNUITIES - SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if your spouse is the sole beneficiary, your spouse may either elect to treat the contract as his/her own or elect an annuity payout plan or another plan agreed to by us. If your spouse elects to treat the contract as his/her own, the following describes the standard death benefit: - If your spouse was age 75 or younger as of the date we issued the contract, the beneficiary of your spouse's contract receives the greater of: - contract value, less any purchase payment credits subject to reversal less a pro rata portion of rider fees; or - purchase payments minus adjusted partial surrenders. If your spouse was age 76 or older as of the date we issued the contract, the beneficiary of your spouse's contract receives the contract value, less any purchase payment credits subject to reversal, less a pro rata portion of rider fees. If your spouse elects a payout plan, the payouts must begin no later than the year in which you would have reached age 70 1/2. If you attained age 70 1/2 at the time of death, payouts must begin no later than Dec. 31 of the year following the year of your death. If you elected any optional contract features or riders, your spouse and the new annuitant (if applicable) will be subject to all limitations and/or restrictions of those features or riders. The SecureSource(SM) -- Joint Life rider, if selected, will continue only if the spouse electing the spousal continuation provision of the contract is a covered spouse and continues the contract as the new owner. - NON-SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if death occurs prior to the year you would have attained age 70 1/2, the beneficiary may elect to receive payouts from the contract over a five year period. If your beneficiary does not elect a five year payout, or if your death occurs after attaining age 70 1/2, we will pay the beneficiary in a lump sum unless the beneficiary elects to receive payouts under any payout plan available under this contract if: - the beneficiary asks us in writing within 60 days after our death claim requirements are fulfilled; and - payouts begin no later than one year following the year of your death; and - the payout period does not extend beyond the beneficiary's life or life expectancy. Additionally, the optional SecureSource(SM) rider, if selected, will terminate. - ANNUITY PAYOUT PLAN: If you elect an annuity payout plan, the payouts to your beneficiary will continue pursuant to the annuity payout plan you elect. DEATH BENEFIT PAYMENT IN A LUMP SUM: We may pay all or part of the death benefit to your beneficiary in a lump sum under either a nonqualified or qualified annuity. We will pay the death benefit by check unless your beneficiary has chosen to have the death benefit payment directly deposited into a checking account. OPTIONAL BENEFITS OPTIONAL DEATH BENEFITS RETURN OF PURCHASE PAYMENTS DEATH BENEFIT (ROPP) The ROPP is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greater of: - contract value, less any purchase payment credits subject to reversal less a pro rata portion of rider fees; or - purchase payments minus adjusted partial surrenders. 48 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS ADJUSTED PARTIAL SURRENDERS FOR THE ROPP DEATH BENEFIT PS X DB CV PS = the partial surrender including any applicable surrender charge. DB = the death benefit on the date of (but prior to) the partial surrender. CV = the contract value on the date of (but prior to) the partial surrender. The death benefit will never be less than the surrender value adjusted by the MVA formula. If this ROPP rider is available in your state and you are age 76 or older at contract issue, you may choose to add the ROPP to your contract. Generally, you must elect the ROPP at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the ROPP may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the ROPP for new contracts. When annuity payouts begin, or if you terminate the contract for any reason other than death, this rider will terminate. TERMINATING THE ROPP - You may terminate the ROPP rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the ROPP rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - The ROPP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. If you terminate the ROPP, the standard death benefit applies. For an example, see Appendix D. IF YOUR SPOUSE IS THE SOLE BENEFICIARY AND WAS AGE 76 OR OLDER AS OF THE DATE WE ISSUED THE CONTRACT, he or she may choose to continue the ROPP. In that case, the ROPP rider charges described in "Charges -- ROPP Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary. Your spouse also has the option of discontinuing the ROPP rider within 30 days of the date he or she elects to continue the contract. If your spouse is age 75 or younger as of the date we issued the contract, the ROPP will terminate. NOTE: For special tax considerations associated with the ROPP, see "Taxes." MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT (MAV) The MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The MAV does not provide any additional benefit before the first contract anniversary after the rider effective date. The MAV may be of less value if you are older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum anniversary value at age 81, the MAV rider fee continues to apply until the rider terminates. In addition, the MAV does not provide any additional benefit with respect to the GPAs, regular fixed account or Special DCA fixed account values during the time you have amounts allocated to these accounts. Be sure to discuss with your financial advisor whether or not the MAV is appropriate for your situation. If this MAV rider is available in your state and you are age 75 or younger at contract issue, you may choose to add the MAV to your contract. Generally, you must elect the MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the MAV may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the MAV for new contracts. On the first contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every contract anniversary after that, through age 80, we compare the previous anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value to the higher of these values. We stop resetting the maximum anniversary value at age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - contract value, less any purchase payment credits subject to reversal less a pro rata portion of rider fees; or - purchase payments minus adjusted partial surrenders; or RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 49 - the maximum anniversary value as calculated on the most recent contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. The death benefit will never be less than the surrender value adjusted by the MVA formula. TERMINATING THE MAV - You may terminate the MAV rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - The MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the MAV, the standard death benefit applies. For an example, see Appendix D. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the MAV. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the MAV rider, the contract value will be increased to the MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. MAXIMUM FIVE YEAR ANNIVERSARY VALUE DEATH BENEFIT (5-YEAR MAV) The 5-Year MAV is intended to provide additional death benefit protection in the event of fluctuating fund values. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The 5-Year MAV does not provide any additional benefit before the fifth contract anniversary after the rider effective date. The 5-Year MAV may be of less value if you are older since we stop resetting the maximum anniversary value at age 81. Although we stop resetting the maximum five year anniversary value at age 81, the 5-Year MAV rider fee continues to apply until the rider terminates. In addition, the 5-Year MAV does not provide any additional benefit with respect to the GPAs, regular fixed account or Special DCA fixed account values during the time you have amounts allocated to these accounts. Be sure to discuss with your financial advisor whether or not the 5-Year MAV is appropriate for your situation. If this 5-Year MAV rider is available in your state and you are age 75 or younger at contract issue, you may choose to add the 5-Year MAV to your contract. Generally, you must elect the 5-Year MAV at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the 5-Year MAV may be after we issue the contract according to terms determined by us and at our sole discretion. We reserve the right to discontinue offering the 5-Year MAV for new contracts. On the fifth contract anniversary after the rider effective date we set the maximum anniversary value equal to the highest of your (a) current contract value, or (b) total purchase payments minus adjusted partial surrenders. Every fifth contract anniversary after that, through age 80, we compare the previous 5-year anniversary's maximum anniversary value plus subsequent purchase payments less subsequent adjusted partial surrenders to the current contract value and we reset the maximum anniversary value to the higher of these values. We stop resetting the maximum anniversary value at age 81. However, we continue to add subsequent purchase payments and subtract adjusted partial surrenders from the maximum anniversary value. If you die before annuity payouts begin while this contract is in force, we will pay the beneficiary the greatest of: - contract value, less any purchase payment credits subject to reversal less a pro rata portion of rider fees; or - purchase payments minus adjusted partial surrenders; or - the maximum anniversary value as calculated on the most recent fifth contract anniversary plus subsequent purchase payments made to the contract minus adjustments for partial surrenders since that contract anniversary. The death benefit will never be less than the surrender value adjusted by the MVA formula. TERMINATING THE 5-YEAR MAV - You may terminate the 5-Year MAV rider within 30 days of the first contract anniversary after the rider effective date. 50 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - You may terminate the 5-Year MAV rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - The 5-Year MAV rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The 5-Year MAV rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. If you terminate the 5-Year MAV, the standard death benefit applies. For an example, see Appendix D. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, your spouse may choose to continue the contract as the contract owner. The contract value will be equal to the death benefit that would otherwise have been paid under the 5-Year MAV. To do this your spouse must, on the date our death claim requirements are fulfilled, give us written instructions to keep the contract in force. If your spouse has reached age 76 at the time he or she elects to continue the contract, the 5-Year MAV rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she may choose to continue the 5-Year MAV rider. In this case, the rider charges described in "Charges" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the 5-Year MAV rider. If, at the time he or she elects to continue the contract, your spouse has not yet reached age 76 and chooses not to continue the 5-Year MAV rider, the contract value will be increased to the 5-Year MAV death benefit amount if it is greater than the contract value on the death benefit valuation date. ENHANCED EARNINGS DEATH BENEFIT (EEB) The EEB is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEB provides for reduced benefits if you are age 70 or older at the rider effective date and it does not provide any additional benefit before the first contract anniversary. The EEB also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because the benefit paid by the EEB is determined by the amount of earnings at death. Be sure to discuss with your financial advisor and your tax advisor whether or not the EEB is appropriate for your situation. If this EEB rider is available in your state and you are age 75 or younger at the rider effective date, you may choose to add the EEB to your contract. Generally, you must elect the EEB at the time you purchase your contract and your rider effective date will be the contract issue date. In some instances the rider effective date for the EEB may be after we issue the contract according to terms determined by us and at our sole discretion. You may not select this rider if you select the EEP. We reserve the right to discontinue offering the EEB for new contracts. The EEB provides that if you die after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - the standard death benefit amount (see "Benefits in Case of Death -- Standard Benefit"), the MAV death benefit amount, if applicable, or the 5-Year MAV death benefit amount, if applicable, PLUS - 40% of your earnings at death if you were under age 70 on the rider effective date; or - 15% of your earnings at death if you were age 70 or older on the rider effective date. Additional death benefits payable under the EEB are not included in the adjusted partial surrender calculation. EARNINGS AT DEATH FOR THE EEB AND EEP: If the rider effective date for the EEB or EEP is the contract issue date, earnings at death is an amount equal to: - the standard death benefit amount, the MAV death benefit amount, or the 5-Year MAV death benefit amount if applicable (the "death benefit amount") - MINUS purchase payments not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% of the purchase payments not previously surrendered that are one or more years old. If the rider effective date for the EEB is AFTER the contract issue date, earnings at death is an amount equal to the death benefit amount RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 51 - MINUS the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered. The earnings at death may not be less than zero and may not be more than 250% multiplied by: - the greater of: - the contract value as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that contract value since that rider effective date; or - an amount equal to the death benefit amount as of the EEB rider effective date (determined before we apply any purchase payment or purchase payment credit), less any surrenders of that death benefit amount since that rider effective date - PLUS any purchase payments made on or after the EEB rider effective date not previously surrendered that are one or more years old. TERMINATING THE EEB - You may terminate the EEB rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the EEB rider within 30 days of any contract anniversary beginning with the seventh contract anniversary after the rider effective date. - The EEB rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The EEB rider will terminate in the case of spousal continuation or ownership change if the new owner is age 76 or older. For an example, see Appendix D. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEB. If your spouse is age 76 or older at the time he or she elects to continue the contract, then the EEB rider will terminate. If your spouse is less than age 76 at the time he or she elects to continue the contract, he or she may choose to continue the EEB. In this case, the following conditions will apply: - the EEB rider will continue, but we will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEB rider. NOTE: For special tax considerations associated with the EEB, see "Taxes." ENHANCED EARNINGS PLUS DEATH BENEFIT (EEP) The EEP is intended to provide an additional benefit to your beneficiary to help offset expenses after your death such as funeral expenses or federal and state taxes. This is an optional benefit that you may select for an additional annual charge (see "Charges"). The EEP provides for reduced benefits if you are age 70 or older at the rider effective date. It does not provide any additional benefit before the first contract anniversary and it does not provide any benefit beyond what is offered under the EEB during the second contract year. The EEP also may result in reduced benefits if you take RMDs (see "Taxes -- Qualified Annuities -- Required Minimum Distributions") from your qualified annuity or any partial surrenders during the life of your contract, both of which may reduce contract earnings. This is because part of the benefit paid by the EEP is determined by the amount of earnings at death. Be sure to discuss with your financial advisor and your tax advisor whether or not the EEP is appropriate for your situation. 52 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS If this EEP rider is available in your state and you are age 75 or younger at contract issue, you may choose to add the EEP to your contract. You must elect the EEP at the time you purchase your contract and your rider effective date will be the contract issue date. THIS RIDER IS ONLY AVAILABLE UNDER ANNUITIES PURCHASED THROUGH AN EXCHANGE OR DIRECT TRANSFER FROM ANOTHER ANNUITY OR A LIFE INSURANCE POLICY. You may not select this rider if you select the EEB. We reserve the right to discontinue offering the EEP for new contracts. The EEP provides that if you die after the first contract anniversary, but before annuity payouts begin, and while this contract is in force, we will pay the beneficiary: - EEP Part I benefits, which equal the benefits payable under the EEB described above; PLUS - EEP Part II benefits, which equal a percentage of exchange purchase payments identified at issue not previously surrendered as follows:
PERCENTAGE IF YOU ARE PERCENTAGE IF YOU ARE CONTRACT YEAR UNDER AGE 70 ON THE RIDER EFFECTIVE DATE 70 OR OLDER ON THE RIDER EFFECTIVE DATE One and Two 0% 0% Three and Four 10% 3.75% Five or more 20% 7.5%
Additional death benefits payable under the EEP are not included in the adjusted partial surrender calculation. If after 6 months, no exchange purchase payments have been received, we will contact you and you will have an additional 30 days to follow-up on exchange purchase payments identified at issue but not received by us. If after these 30 days we have not received any exchange purchase payments, we will convert the EEP rider into an EEB. Another way to describe the benefits payable under the EEP rider is as follows: - the standard death benefit amount (see "Benefits in Case of Death -- Standard Death Benefit"), the MAV death benefit amount, or 5-Year MAV death benefit amount, if applicable, PLUS
IF YOU ARE UNDER AGE 70 IF YOU ARE AGE 70 CONTRACT YEAR ON THE RIDER EFFECTIVE DATE, ADD ... OR OLDER ON THE RIDER EFFECTIVE DATE, ADD ... 1 Zero Zero 2 40% x earnings at death (see above) 15% x earnings at death 40% x (earnings at death + 25% of 15% x (earnings at death + 25% of exchange 3 & 4 exchange purchase payment*) purchase payment*) 40% x (earnings at death + 50% of 15% x (earnings at death + 50% of exchange 5+ exchange purchase payment*) purchase payment*)
* Exchange purchase payments are purchase payments exchanged from another annuity or policy that are identified at issue and not previously surrendered. We are not responsible for identifying exchange purchase payments if we did not receive proper notification from the company from which the purchase payments are exchanged. TERMINATING THE EEP - You may terminate the EEP rider within 30 days of the first contract anniversary after the rider effective date. - You may terminate the EEP rider within 30 days of any contract anniversary beginning with the seventh contract anniversary. - The EEP rider will terminate when you make a full surrender from the contract or when annuity payouts begin. - The EEP rider will terminate in the case of an ownership change. - The EEP rider will terminate in the case of the spousal continuation if the new owner is age 76 or older. For an example, see Appendix D. IN GENERAL, IF YOUR SPOUSE IS THE SOLE BENEFICIARY, and your spouse chooses to continue the contract as the contract owner, we will pay an amount into the contract so that the contract value equals the total death benefit payable under the EEP. If your spouse has reached age 76 at the time he or she elects to continue the contract, the EEP rider will terminate. If your spouse has not yet reached age 76 at the time he or she elects to continue the contract, he or she cannot continue the EEP. However, he or she may choose to convert the EEP rider into an EEB. In this case, the following conditions will apply: - the EEB rider will treat the new contract value on the date the ownership of the contract changes to your spouse (after the additional amount is paid into the contract) as if it is a purchase payment in calculating future values of "earnings at death." - the percentages of "earnings at death" payable will be based on your spouse's age at the time he or she elects to continue the contract. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 53 - the EEB rider charges described in "Charges -- EEB Rider Fee" will be assessed at the next contract anniversary (and all future anniversaries when the EEB rider is in force). These charges will be based on the total contract value on the anniversary, including the additional amounts paid into the contract under the EEP rider. If your spouse chooses not to convert the EEP rider into an EEB, the standard death benefit amount (or the MAV or 5-Year MAV death benefit amount, if applicable,) will apply. NOTE: For special tax considerations associated with the EEP, see "Taxes." OPTIONAL LIVING BENEFITS SECURESOURCE(SM) RIDERS THE SECURESOURCE(SM) RIDERS ARE NOT AVAILABLE FOR RAVA4 ACCESS. There are two optional SecureSource(SM) riders available under your contract: - SecureSource(SM) -- Single Life; or - SecureSource(SM) -- Joint Life. The information in this section applies to both SecureSource(SM) riders, unless otherwise noted. The SecureSource(SM) -- Single Life rider covers one person. The SecureSource(SM) -- Joint Life Rider covers two spouses jointly who are named at contract issue. You may elect only the SecureSource(SM) -- Single Life rider or the SecureSource(SM) -- Joint Life rider, not both, and you may not switch riders later. The SecureSource(SM) rider is an optional benefit that you may select for an additional annual charge if(1): - the rider is available in your state; and - SINGLE LIFE: you are 80 or younger on the contract issue date, or , if an owner is a nonnatural person, then the annuitant is age 80 or younger on the contract issue date ; or - JOINT LIFE: you and your spouse are 80 or younger on the contract issue date. (1) The SecureSource(SM) rider is not available under an inherited qualified annuity. You must elect the rider when you purchase your contract. The rider effective date will be the contract issue date. The SecureSource(SM) rider guarantees (unless the rider is terminated. See "Rider Termination" heading below.) that regardless of the investment performance of your contract you will be able to withdraw up to a certain amount each year from the contract before the annuity payouts begin until: - SINGLE LIFE: you have recovered at minimum all of your purchase payments plus any purchase payment credit or, if later, until death (see "At Death" heading below) -- even if the contract value is zero. - JOINT LIFE: you have recovered at minimum all of your purchase payments plus any purchase payment credit or, if later, until the death of the last surviving covered spouse (see "Joint Life only: Covered Spouses" and "At Death" headings below) -- even if the contract value is zero. Your contract provides for annuity payouts to begin on the settlement date (see "Buying Your Contract -- Settlement Date"). Before the settlement date, you have the right to surrender some or all of your contract value, less applicable administrative, surrender and rider charges imposed under the contract at the time of the surrender (see "Making the Most of Your Contract -- Surrenders"). Because your contract value will fluctuate depending on the performance of the underlying funds in which the subaccounts invest, the contract itself does not guarantee that you will be able to take a certain surrender amount each year before the annuity payouts begin, nor does it guarantee the length of time over which such surrenders can be made before the annuity payouts begin. For the purposes of this rider, the term "withdrawal" is equal to the term "surrender" in the contract or any other riders. Withdrawals will adjust contract values and benefits in the same manner as surrenders. The SecureSource(SM) rider may be appropriate for you if you intend to make periodic withdrawals from your annuity contract and wish to ensure that market performance will not adversely affect your ability to withdraw your principal over time. 54 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS Under the terms of the SecureSource(SM) rider, the calculation of the amount which can be withdrawn in each contract year varies depending on several factors, including but not limited to the waiting period (see "Waiting period" heading below) and whether or not the lifetime withdrawal benefit has become effective: (1) The basic withdrawal benefit gives you the right to take limited withdrawals in each contract year until the lifetime withdrawal benefit becomes effective and guarantees that over time the withdrawals will total an amount equal to, at minimum, your purchase payments plus any purchase payment credits (unless the rider is terminated. See "Rider Termination" heading below). Key terms associated with the basic withdrawal benefit are "Guaranteed Benefit Payment (GBP)", "Remaining Benefit Payment (RBP)", "Guaranteed Benefit Amount (GBA)" and "Remaining Benefit Amount (RBA)." See these headings below for more information. (2) The lifetime withdrawal benefit gives you the right, under certain limited circumstances defined in the rider, to take limited withdrawals until the later of: - SINGLE LIFE: death (see "At Death" heading below) or until the RBA (under the basic withdrawal benefit) is reduced to zero (unless the rider is terminated. See "Rider Termination" heading below); - JOINT LIFE: death of the last surviving covered spouse (see "At Death" heading below) or until the RBA (under the basic withdrawal benefit) is reduced to zero (unless the rider is terminated. See "Rider Termination" heading below). Key terms associated with the lifetime withdrawal benefit are "Annual Lifetime Payment (ALP)", "Remaining Annual Lifetime Payment (RALP)", "Single Life only: Covered Person", "Joint Life only: Covered Spouses" and "Annual Lifetime Payment Attained Age (ALPAA)." See these headings below for more information. Only the basic withdrawal benefit will be in effect prior to the date that the lifetime withdrawal benefit becomes effective. The lifetime withdrawal benefit becomes effective automatically on the rider anniversary date after the: - SINGLE LIFE: covered person reaches age 65, or the rider effective date if the covered person is age 65 or older on the rider effective date (see "Annual Lifetime Payment Attained Age (ALPAA)" heading below); - JOINT LIFE: younger covered spouse reaches age 65, or the rider effective date if the younger covered spouse is age 65 or older on the rider effective date (see "Annual Lifetime Payment Attained Age (ALPAA)" and "Annual Lifetime Payment (ALP)" headings below). Provided annuity payouts have not begun, the SecureSource(SM) rider guarantees that you may take the following withdrawal amounts each contract year: - Before the establishment of the ALP, the rider guarantees that each year you have the option to cumulatively withdraw an amount equal to the value of the RBP at the beginning of the contract year; - After the establishment of the ALP, the rider guarantees that each year you have the option to cumulatively withdraw an amount equal to the value of the RALP or the RBP at the beginning of the contract year, but the rider does not guarantee withdrawal of the sum of both the RALP and the RBP in a contract year. If you withdraw less than the allowed withdrawal amount in a contract year, the unused portion cannot be carried over to the next contract year. As long as your withdrawals in each contract year do not exceed the allowed annual withdrawal amount under the rider: - SINGLE LIFE: and there has not been a contract ownership change or spousal continuation of the contract, the guaranteed amounts available for withdrawal will not decrease; - JOINT LIFE: the guaranteed amounts available for withdrawal will not decrease. If you withdraw more than the allowed annual withdrawal amount in a contract year, we call this an "excess withdrawal" under the rider. Excess withdrawals trigger an adjustment of a benefit's guaranteed amount, which may cause it to be reduced (see "GBA Excess Withdrawal Processing," "RBA Excess Withdrawal Processing," and "ALP Excess Withdrawal Processing" headings below). Please note that basic withdrawal benefit and lifetime withdrawal benefit each has its own definition of the allowed annual withdrawal amount. Therefore a withdrawal may be considered an excess withdrawal for purposes of the lifetime withdrawal benefit only, the basic withdrawal benefit only, or both. If your withdrawals exceed the greater of the RBP or the RALP, surrender charges under the terms of the contract may apply (see "Charges -- Surrender Charges"). The amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. Market value adjustments, if applicable, will also be made (see "Guarantee Period Accounts (GPAs) -- Market Value Adjustment"). We pay you the amount you request. Any withdrawals you take under the contract will reduce the value of the death benefits (see "Benefits in Case of Death"). Upon full surrender of the contract, you will receive the remaining contract value less any applicable charges (see "Making the Most of Your Contract -- Surrenders"). RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 55 The rider's guaranteed amounts can be increased at the specified intervals if your contract value has increased. An annual step up feature is available at each contract anniversary, subject to certain conditions, and may be applied automatically to your contract or may require you to elect the step up (see "Annual Step Up" heading below). If you exercise the annual step up election, the spousal continuation step up election (see "Spousal Continuation Step Up" heading below) or change your Portfolio Navigator model portfolio, the rider charge may change (see "Charges"). If you take withdrawals during the waiting period, any prior steps ups applied will be reversed and step ups will not be available until the end of the waiting period. You may take withdrawals after the waiting period without reversal of prior step ups. You should consider whether a SecureSource(SM) rider is appropriate for you because: - LIFETIME WITHDRAWAL BENEFIT LIMITATIONS: The lifetime withdrawal benefit is subject to certain limitations, including but not limited to: (a) SINGLE LIFE: Once the contract value equals zero, payments are made for as long as the oldest owner or, if an owner is a nonnatural person, the oldest annuitant is living (see "If Contract Value Reduces to Zero" heading below). However, if the contract value is greater than zero, the lifetime withdrawal benefit terminates when a death benefit becomes payable (see "At Death" heading below). Therefore, if there are multiple contract owners, the rider may terminate or the lifetime withdrawal benefit may be reduced. This possibility may present itself when: (i) There are multiple contract owners -- when one of the contract owners dies the benefit terminates even though other contract owners are still living (except if the contract is continued under the spousal continuation provision of the contact); or (ii) The owner and the annuitant are not the same persons -- if the annuitant dies before the owner, the benefit terminates even though the owner is still living. This could happen, for example, when the owner is younger than the annuitant. This risk increases as the age difference between owner and annuitant increases. JOINT LIFE: Once the contract value equals zero, payments are made for as long as either covered spouse is living (see "If Contract Value Reduces to Zero" heading below). However, if the contract value is greater than zero, the lifetime withdrawal benefit terminates at the death of the last surviving covered spouse (see "At Death" heading below). (b) Excess withdrawals can reduce the ALP to zero even though the GBA, RBA, GBP and/or RBP values are greater than zero. If the both the ALP and the contract value are zero, the lifetime withdrawal benefit will terminate. (c) When the lifetime withdrawal benefit is first established, the initial ALP is based on (i) SINGLE LIFE: the basic withdrawal benefit's RBA at that time (see "Annual Lifetime Payment (ALP)" heading below), unless there has been a spousal continuation or ownership change; or (ii) JOINT LIFE: the basic withdrawal benefit's RBA at that time (see "Annual Lifetime Payment (ALP)" heading below). Any withdrawal you take before the ALP is established reduces the RBA and therefore may result in a lower amount of lifetime withdrawals you are allowed to take. (d) Withdrawals can reduce both the contract value and the RBA to zero prior to the establishment of the ALP. If this happens, the contract and the rider will terminate. - USE OF PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM REQUIRED: You must elect one of the model portfolios of the Portfolio Navigator. This requirement limits your choice of subaccounts, regular fixed account and GPAs (if available) to those that are in the model portfolio you select. This means you will not be able to allocate contract value to all of the subaccounts, GPAs or the regular fixed account that are available under the contract to contract owners who do not elect the rider. (See "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program.") You may make two elective model portfolio changes per contract year; we reserve the right to limit elective model portfolio changes if required to comply with the written instructions of a fund (see "Market Timing"). You can allocate your contract value to any available model portfolio during the following times: (1) prior to your first withdrawal and (2) following a benefit reset as described below but prior to any subsequent withdrawal. During these accumulation phases, you may request to change your model portfolio to any available model portfolio. Immediately following a withdrawal your contract value will be reallocated to the target model portfolio as shown in your contract if your current model portfolio is more aggressive than the target model portfolio. This automatic reallocation is not included in the total number of allowed model changes per contract year and will not cause your rider fee to increase. The target model portfolio is currently the Moderate model. We reserve the right to change the target model portfolio to a model portfolio that is more aggressive than the current target model portfolio after 30 days written notice. 56 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS After you have taken a withdrawal and prior to any benefit reset as described below, you are in a withdrawal phase. During withdrawal phases you may request to change your model portfolio to the target model portfolio or any model portfolio that is more conservative than the target model portfolio without a benefit reset as described below. If you are in a withdrawal phase and you choose to allocate your contract value to a model portfolio that is more aggressive than the target model portfolio, your rider benefit will be reset as follows: (a) the total GBA will be reset to the lesser of its current value or the contract value; and (b) the total RBA will be reset to the lesser of its current value or the contract value; and (c) the ALP, if established, will be reset to the lesser of its current value or 6% of the contract value; and (d) the GBP will be recalculated as described below, based on the reset GBA and RBA; and (e) the RBP will be recalculated as the reset GBP less all prior withdrawals made during the current contract year, but not less than zero; and (f) the RALP will be recalculated as the reset ALP less all prior withdrawals made during the current contract year, but not less than zero. You may request to change your model portfolio by written request on an authorized form or by another method agreed to by us. - LIMITATIONS ON PURCHASE OF OTHER RIDERS UNDER YOUR CONTRACT: You may elect only the SecureSource(SM) -- Single Life rider or the SecureSource(SM) -- Joint Life rider. If you elect the SecureSource(SM) rider, you may not elect the Accumulation Benefit rider. - NON-CANCELABLE: Once elected, the SecureSource(SM) rider may not be cancelled (except as provided under "Rider Termination" heading below) and the fee will continue to be deducted until the contract or rider is terminated or the contract value reduces to zero (described below). Dissolution of marriage does not terminate the SecureSource(SM) -- Joint Life rider and will not reduce the fee we charge for this rider. The benefit under the SecureSource(SM) -- Joint Life rider continues for the covered spouse who is the owner of the contract (or annuitant in the case of nonnatural ownership). The rider will terminate at the death of the contract owner (or annuitant in the case of nonnatural ownership) because the original spouse will be unable to elect the spousal continuation provision of the contract (see "Joint Life only: Covered Spouses" below). - JOINT LIFE: LIMITATIONS ON CONTRACT OWNERS, ANNUITANTS AND BENEFICIARIES: Since the joint life benefit requires that the surviving covered spouse continue the contract under the spousal continuation provision of the contract upon the owner's death, only ownership arrangements that permit such continuation are allowed at rider issue. Ownerships that include anyone other than the original two spouses or their revocable trust(s) will not be allowed. In general, a spouse who is not a joint owner must be named as the sole primary beneficiary at contract issue. For revocable trust ownerships, the grantor of the trust must be the annuitant and the beneficiary must either be the annuitant's spouse or a trust that names the annuitant's spouse as the sole primary beneficiary. No other trust ownerships are allowed. If you select the SecureSource(SM) -- Joint Life rider, please consider carefully whether or not you wish to change the beneficiary of your annuity contract. The rider will terminate if the surviving covered spouse can not utilize the spousal continuation provision of the contract when the death benefit is payable. - LIMITATIONS ON PURCHASE PAYMENTS: We reserve the right to limit the cumulative amount of purchase payments, subject to state restrictions. - INTERACTION WITH TOTAL FREE AMOUNT (TFA) CONTRACT PROVISION: The TFA is the amount you are allowed to surrender from the contract in each contract year without incurring a surrender charge (see "Charges -- Surrender Charge"). The TFA may be greater than the RBP or RALP under this rider. Any amount you withdraw in a contract year under the contract's TFA provision that exceeds the RBP or RALP is subject to the excess withdrawal processing described below for the GBA, RBA and ALP. You should consult your tax advisor before you select this optional rider if you have any questions about the use of the rider in your tax situation because: - TAX CONSIDERATIONS FOR NONQUALIFIED ANNUITIES: Under current federal income tax law, withdrawals under nonqualified annuities, including withdrawals taken from the contract under the terms of the rider, are treated less favorably than amounts received as annuity payments under the contract (see "Taxes -- Nonqualified Annuities"). Withdrawals before age 59 1/2 may incur a 10% IRS early withdrawal penalty and may be considered taxable income. You should consult your tax advisor before you select this optional rider if you have any questions about the use of the rider in your tax situation. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 57 - TAX CONSIDERATIONS FOR QUALIFIED ANNUITIES: Qualified annuities have minimum distribution rules that govern the timing and amount of distributions from the annuity contract (see "Taxes -- Qualified Annuities -- Required Minimum Distributions"). If you have a qualified annuity, you may need to take an RMD that exceeds the specified amount of withdrawal available under the rider. Withdrawals in any contract year that exceed the guaranteed amount available for withdrawal may reduce future benefits guaranteed under the rider. While the rider permits certain excess withdrawals to be made for the purpose of satisfying RMD requirements for your contract alone without reducing future benefits guaranteed under the rider, there can be no guarantee that changes in the federal income tax law after the effective date of the rider will not require a larger RMD to be taken, in which case, future guaranteed withdrawals under the rider could be reduced. See Appendix D for additional information. - LIMITATIONS ON TSAS: Your right to take withdrawals is restricted if your contract is a TSA (see "TSA -- Special Withdrawal Provisions"). Therefore, a SecureSource(SM) rider may be of limited value to you. KEY TERMS AND PROVISIONS OF THE SECURESOURCE(SM) RIDER ARE DESCRIBED BELOW: WITHDRAWAL: The amount by which your contract value is reduced as a result of any withdrawal request. It may differ from the amount of your request due to any surrender charge and any market value adjustment. WAITING PERIOD: The period of time starting on the rider effective date during which the annual step up is not available if you take withdrawals. The current waiting period is three years. GUARANTEED BENEFIT AMOUNT (GBA): The total cumulative withdrawals guaranteed by the rider under the basic benefit. The maximum GBA is $5,000,000. The GBA cannot be withdrawn and is not payable as a death benefit. It is an interim value used to calculate the amount available for withdrawals each year under the basic withdrawal benefit (see "Guaranteed Benefit Payment" below). At any time, the total GBA is the sum of the individual GBAs associated with each purchase payment. THE GBA IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - At contract issue -- the GBA is equal to the initial purchase payment, plus any purchase payment credit. - When you make additional purchase payments -- each additional purchase payment has its own GBA equal to the amount of the purchase payment, plus any purchase payment credit. - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - When an individual RBA is reduced to zero -- the GBA that is associated with that RBA will also be set to zero. - When you make a withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the GBA associated with each purchase payment will be reset to the amount of that purchase payment, plus any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first withdrawal is made. - When you make a withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the GBA remains unchanged. If there have been multiple purchase payments, both the total GBA and each payment's GBA remain unchanged. (b) is greater than the total RBP -- GBA EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE GBA. If the withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. GBA EXCESS WITHDRAWAL PROCESSING The total GBA will automatically be reset to the lesser of (a) the total GBA immediately prior to the withdrawal; or (b) the contract value immediately following the withdrawal. If there have been multiple purchase payments, each payment's GBA after the withdrawal will be reset to equal that payment's RBA after the withdrawal plus (a) times (b), where: (a) is the ratio of the total GBA after the withdrawal less the total RBA after the withdrawal to the total GBA before the withdrawal less the total RBA after the withdrawal; and (b) is each payment's GBA before the withdrawal less that payment's RBA after the withdrawal. REMAINING BENEFIT AMOUNT (RBA): Each withdrawal you make reduces the amount that is guaranteed by the rider as future withdrawals. At any point in time, the RBA equals the amount of GBA that remains available for withdrawals for the remainder of the contract's life, and total RBA is the sum of the individual RBAs associated with each purchase payment. The maximum RBA is $5,000,000. 58 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS THE RBA IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - At contract issue -- the RBA is equal to the initial purchase payment plus any purchase payment credit. - When you make additional purchase payments -- each additional purchase payment has its own RBA initially set equal to that payment's GBA (the amount of the purchase payment, plus any purchase payment credit). - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - When you make a withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the RBA associated with each purchase payment will be reset to the amount of that purchase payment, plus any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first withdrawal is made. - When you make a withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the total RBA is reduced by the amount of the withdrawal. If there have been multiple purchase payments, each payment's RBA is reduced in proportion to its RBP. (b) is greater than the total RBP -- RBA EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE RBA. Please note that if the withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. RBA EXCESS WITHDRAWAL PROCESSING The total RBA will automatically be reset to the lesser of (a) the contract value immediately following the withdrawal, or (b) the total RBA immediately prior to the withdrawal, less the amount of the withdrawal. If there have been multiple purchase payments, both the total RBA and each payment's RBA will be reset. The total RBA will be reset according to the excess withdrawal processing described above. Each payment's RBA will be reset in the following manner: 1. The withdrawal amount up to the total RBP is taken out of each RBA bucket in proportion to its individual RBP at the time of the withdrawal; and 2. The withdrawal amount above the total RBP and any amount determined by the excess withdrawal processing are taken out of each RBA bucket in proportion to its RBA at the time of the withdrawal. GUARANTEED BENEFIT PAYMENT (GBP): At any time, the amount available for withdrawal in each contract year after the waiting period, until the RBA is reduced to zero, under the basic withdrawal benefit. At any point in time, each purchase payment has its own GBP, which is equal to the lesser of that payment's RBA or 7% of that payment's GBA, and the total GBP is the sum of the individual GBPs. During the waiting period, the guaranteed annual withdrawal amount may be less than the GBP due to the limitations the waiting period imposes on your ability to utilize both annual step-ups and withdrawals (see "Waiting Period" heading above). The guaranteed annual withdrawal amount during the waiting period is equal to the value of the RBP at the beginning of the contract year. THE GBP IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - At contract issue -- the GBP is established as 7% of the GBA value. - At each contract anniversary -- each payment's GBP is reset to the lesser of that payment's RBA or 7% of that payment's GBA value. - When you make additional purchase payments -- each additional purchase payment has its own GBP equal to the purchase payment amount, plus any purchase payment credit multiplied by 7%. - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - When an individual RBA is reduced to zero -- the GBP associated with that RBA will also be reset to zero. - When you make a withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the GBA and the RBA associated with each purchase payment will be reset to the amount of that purchase payment plus any purchase payment credit. Each payment's GBP will be reset to 7% of the sum of purchase payment and any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first withdrawal is made. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 59 - When you make a withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the GBP remains unchanged. (b) is greater than the total RBP -- each payment's GBP is reset to the lesser of that payment's RBA or 7% of that payment's GBA value, based on the RBA and GBA after the withdrawal. If the withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. REMAINING BENEFIT PAYMENT (RBP): The amount available for withdrawal for the remainder of the contract year under the basic withdrawal benefit. At any point in time, the total RBP is the sum of the RBPs for each purchase payment. During the waiting period, when the guaranteed amount may be less than the GBP, the value of the RBP at the beginning of the contract year will be that amount that is actually guaranteed each contract year. THE RBP IS DETERMINED AT THE FOLLOWING TIMES, CALCULATED AS DESCRIBED: - At the beginning of each contract year during the waiting period and prior to any withdrawal -- the RBP for each purchase payment is set equal to that purchase payment plus any purchase payment credit, multiplied by 7%. - At the beginning of any other contract year -- the RBP for each purchase payment is set equal to that purchase payment's GBP. - When you make additional purchase payments -- each additional purchase payment has its own RBP equal to that payment's GBP. - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - At spousal continuation -- (see "Spousal Option to Continue the Contract" heading below). - When an individual RBA is reduced to zero -- the RBP associated with that RBA will also be reset to zero. - When you make any withdrawal -- the total RBP is reset to equal the total RBP immediately prior to the withdrawal less the amount of the withdrawal, but not less than zero. If there have been multiple purchase payments, each payment's RBP is reduced proportionately. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RBP, GBA EXCESS WITHDRAWAL PROCESSING AND RBA EXCESS WITHDRAWAL PROCESSING ARE APPLIED and the amount available for future withdrawals for the remainder of the contract's life may be reduced by more than the amount of withdrawal. When determining if a withdrawal will result in the excess withdrawal processing, the applicable RBP will not yet reflect the amount of the current withdrawal. SINGLE LIFE ONLY: COVERED PERSON: The person whose life is used to determine when the ALP is established, and the duration of the ALP payments (see "Annual Lifetime Payment (ALP)" heading below). The covered person is the oldest contract owner. If the owner is a nonnatural person, e.g., a trust or corporation, the covered person is the oldest annuitant. A spousal continuation or a change of contract ownership may reduce the amount of the lifetime withdrawal benefit and may change the covered person. JOINT LIFE ONLY: COVERED SPOUSES: The contract owner and his or her legally married spouse as defined under federal law, as named on the application and as shown in the contract for as long as the marriage is valid and in effect. If the contract owner is a nonnatural person (e.g., a revocable trust), the covered spouses are the annuitant and the legally married spouse of the annuitant. The covered spouses lives are used to determine when the ALP is established, and the duration of the ALP payments (see "Annual Lifetime Payment (ALP)" heading below). The covered spouses are established on the rider effective date and cannot be changed. ANNUAL LIFETIME PAYMENT ATTAINED AGE (ALPAA): - SINGLE LIFE: The covered person's age after which time the lifetime benefit can be established. Currently, the lifetime benefit can be established on the later of the contract effective date or the contract anniversary date following the date the covered person reaches age 65. - JOINT LIFE: The age of the younger covered spouse at which time the lifetime benefit is established. ANNUAL LIFETIME PAYMENT (ALP): Once established, the ALP under the lifetime withdrawal benefit is at any time the amount available for withdrawals in each contract year after the waiting period until the later of: - SINGLE LIFE: death; or - JOINT LIFE: death of the last surviving covered spouse; or - the RBA is reduced to zero. The maximum ALP is $300,000. Prior to establishment of the ALP, the lifetime withdrawal benefit is not in effect and the ALP is zero. 60 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS During the waiting period, the guaranteed annual lifetime withdrawal amount may be less than the ALP due to the limitations the waiting period imposes on your ability to utilize both annual step-ups and withdrawals (see "Waiting Period" heading above). The guaranteed annual lifetime withdrawal amount during the waiting period is equal to the value of the RALP at the beginning of the contract year. THE ALP IS DETERMINED AT THE FOLLOWING TIMES: - SINGLE LIFE: The later of the contract effective date or the contract anniversary date following the date the covered person reaches age 65 -- the ALP is established as 6% of the total RBA. - JOINT LIFE: The ALP is established as 6% of the total RBA on the earliest of the following dates: (a) the rider effective date if the younger covered spouse has already reached age 65. (b) the rider anniversary following the date the younger covered spouse reaches age 65. (c) upon the first death of a covered spouse, then (1) the date we receive written request when the death benefit is not payable and the surviving covered spouse has already reached age 65; or (2) the date spousal continuation is effective when the death benefit is payable and the surviving covered spouse has already reached age 65; or (3) the rider anniversary following the date the surviving covered spouse reaches age 65. (d) Following dissolution of marriage of the covered spouses, (1) the date we receive written request if the remaining covered spouse who is the owner (or annuitant in the case of nonnatural ownership) has already reached age 65; or (2) the rider anniversary following the date the remaining covered spouse who is the owner (or annuitant in the case of nonnatural ownership) reaches age 65. - When you make additional purchase payments -- each additional purchase payment increases the ALP by 6% of the sum of the purchase payment plus any purchase payment credits. - At step ups -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - SINGLE LIFE: At spousal continuation or contract ownership change -- (see "Spousal Option to Continue the Contract" and "Contract Ownership Change" headings below). - When you make a withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the ALP will be reset to equal total purchase payments plus any purchase payment credit, multiplied by 6%. The step up reversal will only happen once during the waiting period, when the first withdrawal is made. - When you make a withdrawal at any time and the amount withdrawn is: (a) less than or equal to the RALP -- the ALP remains unchanged. (b) is greater than the RALP -- ALP EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE ALP. If the withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. ALP EXCESS WITHDRAWAL PROCESSING The ALP is reset to the lesser of the ALP immediately prior to the withdrawal, or 6% of the contract value immediately following the withdrawal. REMAINING ANNUAL LIFETIME PAYMENT (RALP): The amount available for withdrawal for the remainder of the contract year under the lifetime withdrawal benefit. During the waiting period, when the guaranteed annual withdrawal amount may be less than the ALP, the value of the RALP at the beginning of the contract year will be the amount that is actually guaranteed each contract year. Prior to establishment of the ALP, the lifetime withdrawal benefit is not in effect and the RALP is zero. - THE RALP IS DETERMINED AT THE FOLLOWING TIMES: - The RALP is established at the same time as the ALP, and: (a) During the waiting period and prior to any withdrawals -- the RALP is established equal to the purchase payments, plus purchase payment credit, multiplied by 6%. (b) At any other time -- the RALP is established equal to the ALP less all prior withdrawals made in the contract year but not less than zero. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 61 - At the beginning of each contract year during the waiting period and prior to any withdrawals -- the RALP is set equal to the total purchase payments plus any purchase payment credit, multiplied by 6%. - At the beginning of any other contract year -- the RALP is set equal to ALP. - When you make additional purchase payments -- each additional purchase payment increases the RALP by 6% of the sum of the purchase payment amount plus any purchase payment credit. - At step ups -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - When you make any withdrawal -- the RALP equals the RALP immediately prior to the withdrawal less the amount of the withdrawal but not less than zero. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RALP, ALP EXCESS WITHDRAWAL PROCESSING IS APPLIED and may reduce the amount available for future withdrawals. When determining if a withdrawal will result in excess withdrawal processing, the applicable RALP will not yet reflect the amount of the current withdrawal. REQUIRED MINIMUM DISTRIBUTIONS (RMD): If you are taking RMDs from your contract and the RMD calculated separately for your contract is greater than the RBP or the RALP on the most recent contract anniversary, the portion of the RMD that exceeds the RBP or RALP on the most recent rider anniversary will not be subject to excess withdrawal processing provided that the following conditions are met: - The RMD is for your contract alone; - The RMD is based on your recalculated life expectancy taken from the Uniform Lifetime Table under the Code; and - The RMD amount is otherwise based on the requirements of section 401(a) (9), related Code provisions and regulations there under that were in effect on the effective date of the rider. RMD rules follow the calendar year which most likely does not coincide with your contract year and therefore may limit when you can take your RMD and not be subject to excess withdrawal processing. Withdrawal amounts greater than the RBP or RALP on the contract anniversary date that do not meet these conditions will result in excess withdrawal processing as described above. See Appendix F for additional information. STEP UP DATE: The date any step up becomes effective, and depends on the type of step up being applied (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). ANNUAL STEP UP: Beginning with the first contract anniversary, an increase of the GBA, RBA, GBP, RBP, ALP and/or RALP values may be available. A step up does not create contract value, guarantee the performance of any investment option, or provide a benefit that can be withdrawn or paid upon death. Rather, a step up determines the current values of the GBA, RBA, GBP, RBP, ALP and RALP, and may extend the payment period or increase the allowable payment. The annual step up may be available as described below, subject to the following rules: - The annual step up is effective on the step up date. - Only one step up is allowed each contract year. - If you take any withdrawals during the waiting period, any previously applied step ups will be reversed and the Annual step up will not be available until the end of the waiting period. - On any rider anniversary where the RBA or, if established, the ALP would increase and the application of the step up would not increase the rider charge, the annual step up will be automatically applied to your contract, and the step up date is the contract anniversary date. - If the application of the step up would increase the rider charge, the annual step up is not automatically applied. Instead, you have the option to step up for 30 days after the contract anniversary as long as either the contract value is greater than the total RBA or 6% of the contract value is greater than the ALP, if established, on the step-up date. If you exercise the elective annual step up option, you will pay the rider charge in effect on the step up date. If you wish to exercise the elective annual step up option, we must receive a request from you or your financial advisor. The step up date is the date we receive your request to step up. If your request is received after the close of business, the step up date will be the next valuation day. - The ALP and RALP are not eligible for step ups until they are established. Prior to being established, the ALP and RALP values are both zero. - Please note it is possible for the ALP to step up even if the RBA or GBA do not step up, and it is also possible for the RBA and GBA to step up even if the ALP does not step up. The annual step up resets the GBA, RBA, GBP, RBP, ALP and RALP values as follows: - The total RBA will be reset to the greater of the total RBA immediately prior to the step up date or the contract value on the step up date. 62 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - The total GBA will be reset to the greater of the total GBA immediately prior to the step up date or the contract value on the step up date. - The total GBP will be reset using the calculation as described above based on the increased GBA and RBA. - The total RBP will be reset as follows: (a) During the waiting period and prior to any withdrawals, the RBP will not be affected by the step up. (b) At any other time, the RBP will be reset to the increased GBP less all prior withdrawals made in the current contract year, but not less than zero. - The ALP will be reset to the greater of the ALP immediately prior to the step up date or 6% of the contract value on the step up date. - The RALP will be reset as follows: (a) During the waiting period and prior to any withdrawals, the RALP will not be affected by the step up. (b) At any other time, the RALP will be reset to the increased ALP less all prior withdrawals made in the current contract year, but not less than zero. SPOUSAL OPTION TO CONTINUE THE CONTRACT UPON OWNER'S DEATH: SINGLE LIFE: If a surviving spouse elects to continue the contract and continues the contract as the new owner under the spousal continuation provision of the contract, the SecureSource(SM) -- Single Life rider also continues. When the spouse elects to continue the contract, any remaining waiting period is cancelled and any waiting period limitations on withdrawals and step-ups terminate; the covered person will be redetermined and is the covered person referred to below; and the GBA, RBA, GBP, RBP, ALP and RALP values are affected as follows: - The GBA, RBA and GBP values remain unchanged. - The RBP is automatically reset to the GBP less all prior withdrawals made in the current contract year, but not less than zero. - If the ALP has not yet been established and the new covered person has not yet reached age 65 as of the date of continuation -- the ALP will be established on the contract anniversary following the date the covered person reaches age 65 as the lesser of the RBA or the contract anniversary value, multiplied by 6%. The RALP will be established on the same date equal to the ALP. - If the ALP has not yet been established but the new covered person is age 65 or older as of the date of continuation -- the ALP will be established on the date of continuation as the lesser of the RBA or the contract value, multiplied by 6%. The RALP will be established on the same date in an amount equal to the ALP less all prior withdrawals made in the current contract year, but not less than zero. - If the ALP has been established but the new covered person has not yet reached age 65 as of the date of continuation -- the ALP and RALP will be automatically reset to zero for the period of time beginning with the date of continuation and ending with the contract anniversary following the date the covered person reaches age 65. At the end of this time period, the ALP will be reset to the lesser of the RBA or the anniversary contract value, multiplied by 6%, and the RALP will be reset to the ALP. - If the ALP has been established and the new covered person is age 65 or older as of the date of continuation -- the ALP will be automatically reset to the lesser of the current ALP or 6% of the contract value on the date of continuation. The RALP will be reset to the ALP less all prior withdrawals made in the current contract year, but not less than zero. Please note that the lifetime withdrawal benefit amount may be reduced as a result of the spousal continuation. JOINT LIFE: If a surviving spouse is a covered spouse and elects the spousal continuation provision of the contract as the new owner, the SecureSource(SM) -- Joint Life rider also continues. When the spouse elects to continue the contract, any remaining waiting period is cancelled and any waiting period limitations on withdrawals and step-ups terminate. The surviving covered spouse can name a new beneficiary; however, a new covered spouse cannot be added to the rider. SPOUSAL CONTINUATION STEP UP: At the time of spousal continuation, a step-up may be available. All annual step-up rules (see "Annual Step-Up" heading above), other than those that apply to the waiting period, also apply to the spousal continuation step-up. If the spousal continuation step-up is processed automatically, the step-up date is the valuation date spousal continuation is effective. If not, the spouse must elect the step up and must do so within 30 days of the spousal continuation date. If the spouse elects the spousal continuation step up, the step-up date is the valuation date we receive the spouse's written request to step-up if we receive the request by the close of business on that day, otherwise the next valuation date. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 63 RULES FOR SURRENDER PROVISION OF YOUR CONTRACT: Minimum contract values following surrender no longer apply to your contract. For surrenders, the surrender will be made from the variable subaccounts, and the Regular Fixed Account (if applicable) in the same proportion as your interest in each bears to the contract value less amounts in any Special DCA fixed account. You cannot specify from which accounts the surrender is to be made. IF CONTRACT VALUE REDUCES TO ZERO: If the contract value reduces to zero and the total RBA remains greater than zero, you will be paid in the following scenarios: 1) The ALP has not yet been established and the contract value is reduced to zero as a result of fees or charges or a withdrawal that is less than or equal to the RBP. In this scenario, you can choose to: (a) receive the remaining schedule of GBPs until the RBA equals zero; or (b) SINGLE LIFE: wait until the rider anniversary following the date the covered person reaches age 65, and then receive the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero; or (c) JOINT LIFE: wait until the rider anniversary following the date the younger covered spouse reaches age 65, and then receive the ALP annually until the latter of (i) the death of the last surviving covered spouse, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. 2) The ALP has been established and the contract value reduces to zero as a result of fees or charges, or a withdrawal that is less than or equal to both the RBP and the RALP. In this scenario, you can choose to receive: (a) the remaining schedule of GBPs until the RBA equals zero; or (b) SINGLE LIFE: the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero; or. (c) JOINT LIFE: the ALP annually until the latter of (i) the death of the last surviving covered spouse, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. 3) The ALP has been established and the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP. In this scenario, the remaining schedule of GBPs will be paid until the RBA equals zero. 4) The ALP has been established and the contract value falls to zero as a result of a withdrawal that is greater than the RBP but less than or equal to the RALP. In this scenario, the ALP will be paid annually until the death of the: - SINGLE LIFE: covered person; - JOINT LIFE: last surviving covered spouse. Under any of these scenarios: - The annualized amounts will be paid to you in the frequency you elect. You may elect a frequency offered by us at the time payments begin. Available payment frequencies will be no less frequent than annually; - We will no longer accept additional purchase payments; - You will no longer be charged for the rider; - Any attached death benefit riders will terminate; and - SINGLE LIFE: The death benefit becomes the remaining payments, if any, until the RBA is reduced to zero. - JOINT LIFE: If the owner had been receiving the ALP, upon the first death the ALP will continue to be paid annually until the later of: 1) the death of the last surviving covered spouse or 2) the RBA is reduced to zero. In all other situations the death benefit becomes the remaining payments, if any, until the RBA is reduced to zero. The SecureSource(SM) rider and the contract will terminate under either of the following two scenarios: - If the contract value falls to zero as a result of a withdrawal that is greater than both the RALP and the RBP. This is full surrender of the contract value. - If the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP, and the total RBA is reduced to zero. AT DEATH: SINGLE LIFE: If the contract value is greater than zero when the death benefit becomes payable, the beneficiary may: 1) elect to take the death benefit under the terms of the contract, 2) take the fixed payout option available under this rider, or 3) continue the contract under the spousal continuation provision of the contract above. 64 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS If the contract value equals zero and the death benefit becomes payable, the following will occur: - If the RBA is greater than zero and the owner has been receiving the GBP each year, the GBP will continue to be paid to the beneficiary until the RBA equals zero. - If the covered person dies and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the RBA equals zero. - If the covered person is still alive and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the later of the death of the covered person or the RBA equals zero. - If the covered person is still alive and the RBA equals zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the death of the covered person. - If the covered person dies and the RBA equals zero, the benefit terminates. No further payments will be made. JOINT LIFE: If the death benefit becomes payable at the death of a covered spouse, the surviving covered spouse must utilize the spousal continuation provision of the contract and continue the contract as the new owner to continue the joint benefit. If spousal continuation is not available under the terms of the contract, the rider terminates. The lifetime benefit of this rider ends at the death of the last surviving covered spouse. If the contract value is greater than zero when the death benefit becomes payable, the beneficiary may: 1) elect to take the death benefit under the terms of the contract, 2) take the fixed payout option available under this rider, or 3) continue the contract under the spousal continuation provision of the contract above. If the contract value equals zero at the first death of a covered spouse, the ALP will continue to be paid annually until the later of: 1) the death of the last surviving covered spouse or 2) the RBA is reduced to zero. If the contract value equals zero at the death of the last surviving covered spouse, the following will occur: - If the RBA is greater than zero and the owner has been receiving the GBP each year, the GBP will continue to be paid to the beneficiary until the RBA equals zero. - If the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the RBA equals zero. - If the RBA equals zero, the benefit terminates. No further payments will be made. CONTRACT OWNERSHIP CHANGE: SINGLE LIFE: If the contract changes ownership (see "Changing Ownership"), the covered person will be redetermined and is the covered person referred to below. The GBA, RBA, GBP, RBP values will remain unchanged. The ALP and RALP will be reset as follows: - If the ALP has not yet been established and the new covered person has not yet reached age 65 as of the ownership change date -- the ALP and the RALP will be established on the contract anniversary following the date the covered person reaches age 65. The ALP will be set equal to the lesser of the RBA or the anniversary contract value, multiplied by 6%. If the anniversary date occurs during the waiting period and prior to a withdrawal, the RALP will be set equal to the lesser of the ALP or total purchase payments plus any purchase payment credits, multiplied by 6%. If the anniversary date occurs at any other time, the RALP will be set equal to the ALP. - If the ALP has not yet been established but the new covered person is age 65 or older as of the ownership change date -- the ALP and the RALP will be established on the ownership change date. The ALP will be set equal to the lesser of the RBA or the contract value, multiplied by 6%. If the ownership change date occurs during the waiting period and prior to a withdrawal, the RALP will be set to the lesser of the ALP or total purchase payments plus any purchase payment credits multiplied by 6%. If the ownership change date occurs at any other time, the RALP will be set to the ALP less all prior withdrawals made in the current contract year but not less than zero. - If the ALP has been established but the new covered person has not yet reached age 65 as of the ownership change date -- the ALP and the RALP will be reset to zero for the period of time beginning with the ownership change date and ending with the contract anniversary following the date the covered person reaches age 65. At the end of this time period, the ALP will be reset to the lesser of the RBA or the anniversary contract value, multiplied by 6%. If the time period ends during the waiting period and prior to any withdrawals, the RALP will be reset to the lesser of the ALP or total purchase payments plus any purchase payment credits, multiplied by 6%. If the time period ends at any other time, the RALP will be reset to the ALP. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 65 - If the ALP has been established and the new covered person is age 65 or older as of the ownership change date -- the ALP and the RALP will be reset on the ownership change date. The ALP will be reset to the lesser of the current ALP or 6% of the contract value. If the ownership change date occurs during the waiting period and prior to a withdrawal, the RALP will be reset to the lesser of the ALP or total purchase payments plus any purchase payment credits multiplied by 6%. If the ownership change date occurs at any other time, the RALP will be reset to the ALP less all prior withdrawals made in the current contract year but not less than zero. Please note that the lifetime withdrawal benefit amount may be reduced as a result of the ownership change. JOINT LIFE: Ownership changes are only allowed between the covered spouses or their revocable trust(s). No other ownership changes are allowed as long as the rider is in force. REMAINING BENEFIT AMOUNT (RBA) PAYOUT OPTION: Several annuity payout plans are available under the contract. As an alternative to these annuity payout plans, a fixed annuity payout option is available under the SecureSource(SM) riders. Under this option the amount payable each year will be equal to the remaining schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the current total RBA at the time you begin this fixed annuity payout option. These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at that time but will be no less frequent than annually. If, at the death of the owner, total payouts have been made for less than the RBA, the remaining payouts will be paid to the beneficiary (see "The Annuity Payout Period" and "Taxes"). This option may not be available if the contract is issued to qualify under section 403 or 408 of the Code, as amended. For such contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the owner at the time the option becomes effective. Such life expectancy will be computed using a life expectancy table published by the IRS. This annuity payout option may also be elected by the beneficiary of a contract as a settlement option. Whenever multiple beneficiaries are designated under the contract, each such beneficiary's share of the proceeds if they elect this option will be in proportion to their applicable designated beneficiary percentage. Beneficiaries of nonqualified contracts may elect this settlement option subject to the distribution requirements of the contract. We reserve the right to adjust the remaining schedule of GBPs if necessary to comply with the Code. RIDER TERMINATION The SecureSource(SM) rider cannot be terminated either by you or us except as follows: 1. SINGLE LIFE: After the death benefit is payable the rider will terminate if: (a) any one other than your spouse continues the contract, or (b) your spouse does not use the spousal continuation provision of the contract to continue the contract. 2. JOINT LIFE: After the death benefit is payable the rider will terminate if: (a) any one other than a covered spouse continues the contract, or (b) a covered spouse does not use the spousal continuation provision of the contract to continue the contract. 3. Annuity payouts under an annuity payout plan will terminate the rider. 4. Termination of the contract for any reason will terminate the rider. GUARANTEED MINIMUM ACCUMULATION BENEFIT (ACCUMULATION BENEFIT) RIDER THE ACCUMULATION BENEFIT RIDER IS NOT AVAILABLE FOR RAVA 4 ACCESS. The Accumulation Benefit rider is an optional benefit that you may select for an additional charge. It is available for nonqualified annuities and qualified annuities except under 401(a) plans. The Accumulation Benefit rider specifies a waiting period that ends on the benefit date. The Accumulation Benefit rider provides a one-time adjustment to your contract value on the benefit date if your contract value is less than the Minimum Contract Accumulation Value (defined below) on that benefit date. On the benefit date, if the contract value is equal to or greater than the Minimum Contract Accumulation Value, as determined under the Accumulation Benefit rider, the Accumulation Benefit rider ends without value and no benefit is payable. If the contract value falls to zero as the result of adverse market performance or the deduction of fees and/or charges at any time during the waiting period and before the benefit date, the contract and all riders, including the Accumulation Benefit rider will terminate without value and no benefits will be paid. EXCEPTION: if you are still living on the benefit date, we will pay you an amount equal to the Minimum Contract Accumulation Value as determined under the Accumulation Benefit rider on the valuation date your contract value reached zero. 66 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS If you are 80 or younger at contract issue and this rider is available in your state, you may elect the Accumulation Benefit rider at the time you purchase your contract and the rider effective date will be the contract issue date. The Accumulation Benefit rider may not be terminated once you have elected it except as described in the "Terminating the Rider" section below. An additional charge for the Accumulation Benefit rider will be assessed annually during the waiting period. The rider ends when the waiting period expires and no further benefit will be payable and no further charges for the rider will be deducted. The Accumulation Benefit rider may not be purchased with the optional GWB for Life rider or SecureSource(SM) rider. When the rider ends, you may be able to purchase another optional rider we then offer by written request received within 30 days of that contract anniversary date. The Accumulation Benefit rider may not be available in all states. You should consider whether an Accumulation Benefit rider is appropriate for you because: - you must participate in the PN program and you must elect one of the model portfolios. This requirement limits your choice of subaccounts, regular fixed account and GPAs (if available) to those that are in the model portfolio you select. This means you will not be able to allocate contract value to all of the subaccounts, GPAs or the regular fixed account that are available under the contract to other contract owners who do not elect this rider. (See "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program"); - you may not make additional purchase payments to your contract during the waiting period after the first 180 days immediately following the effective date of the Accumulation Benefit rider. Some exceptions apply (see "Additional Purchase Payments with Elective Step Up" below); - if you purchase this contract as a qualified annuity, for example, an IRA, you may need to take partial surrenders from your contract to satisfy the RMDs under the Code. Partial surrenders, including those used to satisfy RMDs, will reduce any potential benefit that the Accumulation Benefit rider provides. You should consult your tax advisor if you have any questions about the use of this rider in your tax situation; - if you think you may surrender all of your contract value before you have held your contract with this benefit rider attached for 10 years, or you are considering selecting an annuity payout option within 10 years of the effective date of your contract, you should consider whether this optional benefit is right for you. You must hold the contract a minimum of 10 years from the effective date of the Accumulation Benefit rider, which is the length of the waiting period under the Accumulation Benefit rider, in order to receive the benefit, if any, provided by the Accumulation Benefit rider. In some cases, as described below, you may need to hold the contract longer than 10 years in order to qualify for any benefit the Accumulation Benefit rider may provide; - the 10 year waiting period under the Accumulation Benefit rider will restart if you exercise the Elective Step-Up Option (described below) or your surviving spouse exercises the spousal continuation Elective Step-Up (described below); and - the 10 year waiting period under the Accumulation Benefit rider may be restarted if you elect to change your model portfolio to one that causes the Accumulation Benefit rider charge to increase (see "Charges"). Be sure to discuss with your financial advisor whether an Accumulation Benefit rider is appropriate for your situation. HERE ARE SOME GENERAL TERMS THAT ARE USED TO DESCRIBE THE OPERATION OF THE ACCUMULATION BENEFIT: BENEFIT DATE: This is the first valuation date immediately following the expiration of the waiting period. MINIMUM CONTRACT ACCUMULATION VALUE (MCAV): An amount calculated under the Accumulation Benefit rider. The contract value will be increased to equal the MCAV on the benefit date if the contract value on the benefit date is less than the MCAV on the benefit date. ADJUSTMENTS FOR PARTIAL SURRENDERS: The adjustment made for each partial surrender from the contract is equal to the amount derived from multiplying (a) and (b) where: (a) is 1 minus the ratio of the contract value on the date of (but immediately after) the partial surrender to the contract value on the date of (but immediately prior to) the partial surrender; and (b) is the MCAV on the date of (but immediately prior to) the partial surrender. WAITING PERIOD: The waiting period for the rider is 10 years. We reserve the right to restart the waiting period on the latest contract anniversary if you change your model portfolio after we have exercised our rights to increase the rider fee. Your initial MCAV is equal to your initial purchase payment and any purchase payment credit. It is increased by the amount of any subsequent purchase payments and purchase payment credits received within the first 180 days that the rider is effective. It is reduced by any adjustments for partial surrenders made during the waiting period. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 67 AUTOMATIC STEP UP On each contract anniversary after the effective date of the rider, the MCAV will be set to the greater of: 1. 80% of the contract value on the contract anniversary; or 2. the MCAV immediately prior to the automatic step up. The automatic step up does not create contract value, guarantee the performance of any investment option, or provide a benefit that can be surrendered or paid upon death. Rather, the Automatic Step Up is an interim calculation used to arrive at the final MCAV, which is used to determine whether a benefit will be paid under the rider on the benefit date. The automatic step up of the MCAV does not restart the waiting period or increase the charge (although the total fee for the rider may increase). ELECTIVE STEP UP OPTION Within thirty days following each contract anniversary after the rider effective date, but prior to the benefit date, you may notify us in writing that you wish to exercise the annual elective step up option. You may exercise this elective step up option only once per contract year during this 30 day period. If your contract value on the valuation date we receive your written request to step up is greater than the MCAV on that date, your MCAV will increase to 100% of that contract value. When you exercise the annual elective step up, we may be charging more for the Accumulation Benefit rider at that time. If your MCAV is increased as a result of the elective step up and we have increased the charge for the Accumulation Benefit rider, you will pay the charge that is in effect on the valuation date we receive your written request to step up for the entire contract year. In addition, the waiting period will restart as of the most recent contract anniversary. Failure to exercise this elective step up in subsequent years will not reinstate any prior waiting period. Rather, the waiting period under the rider will always commence from the most recent anniversary for which the elective step up option was exercised. The elective step up does not create contract value, guarantee the performance of any investment option or provide any benefit that can be surrendered or paid upon death. Rather the elective step up is an interim calculation used to arrive at the final MCAV, which is used to determine whether a benefit will be paid under the rider on the benefit date. The elective step up option is not available to non-spouse beneficiaries that continue the contract during the waiting period. ADDITIONAL PURCHASE PAYMENTS WITH ANNUAL ELECTIVE STEP UPS If your MCAV is increased as a result of Elective Step Up, you have 180 days from the latest contract anniversary to make additional purchase payments, if allowed under the base contract. The MCAV will include the amount of any additional purchase payments and purchase payment credits (if applicable) received during this period. SPOUSAL CONTINUATION If a spouse chooses to continue the contract under the spousal continuation provision, the rider will continue as part of the contract. Once, within the thirty days following the date of spousal continuation, the spouse may choose to exercise an elective step up. The spousal continuation elective step up is in addition to the annual elective step up. If the contract value on the valuation date we receive the written request to exercise this option is greater than the MCAV on that date, we will increase the MCAV to that contract value. If the MCAV is increased as a result of the elective step up and we have increased the charge for the Accumulation Benefit rider, the spouse will pay the charge that is in effect on the valuation date we receive their written request to step up for the entire contract year. In addition, the waiting period will restart as of the most recent contract anniversary. TERMINATING THE RIDER The rider will terminate under the following conditions: The rider will terminate before the benefit date without paying a benefit on the date: - you take a full surrender; or - annuitization begins; or - the contract terminates as a result of the death benefit being paid. The rider will terminate on the benefit date. For an example, see Appendix E. 68 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS GUARANTOR WITHDRAWAL BENEFIT FOR LIFE (GWB FOR LIFE) RIDER THE GWB FOR LIFE RIDER IS NOT AVAILABLE FOR RAVA 4 ACCESS. IN STATES WHERE THE SECURESOURCE(SM) RIDERS ARE NOT AVAILABLE YOU MAY SELECT THE GWB FOR LIFE RIDER. FOR MORE INFORMATION ON RIDER AVAILABILITY IN YOUR STATE, PLEASE CONTACT YOUR FINANCIAL ADVISOR. The GWB for Life rider is an optional benefit that you may select for an additional annual charge if (1): - the rider is available in your state; and - you are age 80 or younger on the contract issue date; or, if an owner is a nonnatural person, then the annuitant is age 80 or younger on the contract issue date. (1) The GWB for Life rider is not available under an inherited qualified annuity. You must elect the GWB for Life rider when you purchase your contract. The rider effective date will be the contract issue date. It is available for nonqualified annuities and qualified annuities except under 401(a) plans. The GWB for Life rider guarantees that you will be able to withdraw up to a certain amount each year from the contract, regardless of the investment performance of your contract before the annuity payments begin, until you have recovered at minimum all of your purchase payments plus any purchase payment credits. And, under certain limited circumstances defined in the rider, you have the right to take a specified amount of partial withdrawals in each contract year until death (see "At Death" heading below) -- even if the contract value is zero. Your contract provides for annuity payouts to begin on the settlement date (see "Buying Your Contract -- Settlement Date"). Before the settlement date, you have the right to surrender some or all of your contract value, less applicable administrative, surrender and rider charges imposed under the contract at the time of the surrender (see "Surrenders"). Because your contract value will fluctuate depending on the performance of the underlying funds in which the subaccounts invest, the contract itself does not guarantee that you will be able to take a certain surrender amount each year before the annuity payouts begin, nor does it guarantee the length of time over which such surrenders can be made before the annuity payouts begin. The GWB for Life rider may be appropriate for you if you intend to make periodic withdrawals from your annuity contract and wish to ensure that market performance will not adversely affect your ability to withdraw your principal over time. Under the terms of the GWB for Life rider, the calculation of the amount which can be withdrawn in each contract year varies depending on several factors, including but not limited to the waiting period (see "Waiting period" heading below) and whether or not the lifetime withdrawal benefit has become effective: (1) The basic withdrawal benefit gives you the right to take limited partial withdrawals in each contract year and guarantees that over time the withdrawals will total an amount equal to, at minimum, your purchase payments plus any purchase payment credits. Key terms associated with the basic withdrawal benefit are "Guaranteed Benefit Payment (GBP)," "Remaining Benefit Payment (RBP)," "Guaranteed Benefit Amount (GBA)," and "Remaining Benefit Amount (RBA)." See these headings below for more information. (2) The lifetime withdrawal benefit gives you the right, under certain limited circumstances defined in the rider, to take limited partial withdrawals until the later of death (see "At Death" heading below) or until the RBA (under the basic withdrawal benefit)is reduced to zero. Key terms associated with the lifetime withdrawal benefit are "Annual Lifetime Payment (ALP)," "Remaining Annual Lifetime Payment (RALP)," "Covered Person," and "Annual Lifetime Payment Attained Age (ALPAA)." See these headings below for more information. Only the basic withdrawal benefit will be in effect prior to the date that the lifetime withdrawal benefit becomes effective. The lifetime withdrawal benefit becomes effective automatically on the rider anniversary date after the covered person reaches age 65 or the rider effective date if the covered person is age 65 or older on the rider effective date (see "Annual Lifetime Payment Attained Age (ALPAA)" heading below). Provided the annuity payouts have not begun, the GWB for Life rider guarantees that you may take the following partial withdrawal amounts each contract year: - After the waiting period and before the establishment of the ALP, the rider guarantees that each year you can cumulatively withdraw an amount equal to the GBP; - During the waiting period and before the establishment of the ALP, the rider guarantees that each year you can cumulatively withdraw an amount equal to the value of the RBP at the beginning of the contract year; - After the waiting period and after the establishment of the ALP, the rider guarantees that each year you have the option to cumulatively withdraw an amount equal to the ALP or the GBP, but the rider does not guarantee withdrawals of the sum of both the ALP and the GBP in a contract year; RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 69 - During the waiting period and after the establishment of the ALP, the rider guarantees that each year you have the option to cumulatively withdraw an amount equal to the value of the RALP or the RBP at the beginning of the contract year, but the rider does not guarantee withdrawals of the sum of both the RALP and the RBP in a contract year; If you withdraw less than the allowed partial withdrawal amount in a contract year, the unused portion cannot be carried over to the next contract year. As long as your partial withdrawals in each contract year do not exceed the annual partial withdrawal amount allowed under the rider, and there has not been a contract ownership change or spousal continuation of the contract, the guaranteed amounts available for partial withdrawals are protected (i.e., will not decrease). If you withdraw more than the allowed partial withdrawal amount in a contract year, we call this an "excess withdrawal" under the rider. Excess withdrawals trigger an adjustment of a benefit's guaranteed amount, which may cause it to be reduced (see "GBA Excess Withdrawal Processing", "RBA Excess Withdrawal Processing", and "ALP Excess Withdrawal Processing" headings below). Please note that each of the two benefits has its own definition of the allowed annual withdrawal amount. Therefore, a partial withdrawal may be considered an excess withdrawal for purposes of the lifetime withdrawal benefit only, basic benefit only, or both. If your withdrawals exceed the greater of the RBP or the RALP, surrender charges under the terms of the contract may apply (see "Charges -- Surrender Charges"). The amount we actually deduct from your contract value will be the amount you request plus any applicable surrender charge. Market value adjustments, if applicable, will also be made (see "Guarantee Period Accounts (GPAs) -- Market Value Adjustment"). We pay you the amount you request. Any partial withdrawals you take under the contract will reduce the value of the death benefits. (see "Benefits in Case of Death" and "Optional Benefits"). Upon full surrender of the contract, you will receive the remaining contract value less any applicable charges (see "Surrenders"). The rider's guaranteed amounts can be increased at the specified intervals if your contract value has increased. An annual step up feature is available at each contract anniversary, subject to certain conditions, and may be applied automatically to your contract or may require you to elect the step up (see "Annual Step Up" heading below). If you exercise the annual step up election, the spousal continuation step up election (see "Spousal Continuation Step Up" heading below) or change your PN program model portfolio, the rider charge may increase (see "Charges"). If you take withdrawals during the waiting period, any prior steps ups applied will be reversed and step ups will not be available until the end of waiting period. You may take withdrawals after the waiting period without reversal of prior step ups. You should consider whether the GWB for Life rider is appropriate for you because: -LIFETIME WITHDRAWAL BENEFIT LIMITATIONS: The lifetime withdrawal benefit is subject to certain limitations, including but not limited to: (a) Once the contract value is less than $600*, payments are made for as long as the oldest owner or, if an owner is a nonnatural person, the oldest annuitant, is living (see "If Contract Value Reduces to Less than $600" heading below). However, if the contract value is $600 or greater, the lifetime withdrawal benefit terminates when a death benefit becomes payable (see "At Death" heading below). Therefore, if there are multiple contract owners, the rider may terminate or the lifetime benefit may be reduced. When one of the contract owners dies the benefit terminates even though other contract owners are still living (except, if the contract is continued under the spousal continuation provision of the contract). * Under our current administrative practice, we allow the minimum contract value to be $0. Therefore, these limitations will only apply when the contract value is reduced to zero. (b) Excess withdrawals can reduce the ALP to zero even though the GBA, RBA, GBP and/or RBP values are greater than zero. If the both the ALP and the contract value are zero, the lifetime withdrawal benefit will terminate. (c) When the lifetime withdrawal benefit is first established, the initial ALP is based on the basic withdrawal benefit's RBA at that time (see "Annual Lifetime Payment (ALP)" heading below), unless there has been a spousal continuation or ownership change. Any withdrawal you take before the ALP is established reduces the RBA and therefore may result in a lower amount of lifetime withdrawals you are allowed to take. (d) Withdrawals can reduce both the contract value and the RBA to zero prior to the establishment of the ALP. If this happens, the contract and the GWB for Life rider will terminate. 70 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - USE OF THE PORTFOLIO NAVIGATOR ASSET ALLOCATION PROGRAM IS REQUIRED: You must elect one of the model portfolios of the PN program. This requirement limits your choice of subaccounts, regular fixed account and GPAs (if available) to those that are in the model portfolio you select. This means you will not be able to allocate contract value to all of the subaccounts, GPAs or the regular fixed account that are available under the contract to contract owners who do not elect this rider. (See "Making the Most of Your Contract -- Portfolio Navigator Asset Allocation Program".) Subject to state restrictions, we reserve the right to limit the number of model portfolios from which you can select based on the dollar amount of purchase payments you make. - LIMITATIONS ON PURCHASE PAYMENTS: We reserve the right to limit the cumulative amount of purchase payments, subject to state restrictions. - LIMITATIONS ON PURCHASE OF OTHER RIDERS UNDER THIS CONTRACT: If you select the GWB for Life rider, you may not elect the Accumulation Benefit rider. - NON-CANCELABLE: Once elected, the GWB for Life rider may not be cancelled and the fee will continue to be deducted until the contract is terminated, the contract value reduces to zero (described below) or annuity payouts begin. - INTERACTION WITH TOTAL FREE AMOUNT (TFA) CONTRACT PROVISION: The TFA is the amount you are allowed to withdraw from the contract in each contract year without incurring a surrender charge (see "Charges -- Surrender Charge"). The TFA may be greater than the RBP or RALP under this rider. Any amount you withdraw in a contract year under the contract's TFA provision that exceeds the RBP or RALP is subject to the excess withdrawal processing described below for the GBA, RBA and ALP. You should consult your tax advisor before you select this optional rider if you have any questions about the use of this rider in your tax situation: - TAX CONSIDERATIONS FOR NONQUALIFIED ANNUITIES: Under current federal income tax law, withdrawals under nonqualified annuities, including partial withdrawals taken from the contract under the terms of this rider, are treated less favorably than amounts received as annuity payments under the contract. (See "Taxes -- Nonqualified Annuities".) Withdrawals before age 59 1/2 may incur a 10% IRS early withdrawal penalty and may be considered taxable income. You should consult your tax advisor before you select this optional rider if you have any questions about the use of this rider in your tax situation. - TAX CONSIDERATIONS FOR QUALIFIED ANNUITIES: Qualified annuities have minimum distribution rules that govern the timing and amount of distributions from the annuity contract (see "Taxes -- Qualified Annuities -- Required Minimum Distributions.") If you have a qualified annuity, you may need to take an RMD that exceeds the specified amount of withdrawal available under the rider. Partial withdrawals in any contract year that exceed the guaranteed amount available for withdrawal may reduce future benefits guaranteed under the rider. While the rider permits certain excess withdrawals to be made for the purpose of satisfying RMD requirements for this contract alone without reducing future benefits guaranteed under the rider, there can be no guarantee that changes in the federal income tax law after the effective date of the rider will not require a larger RMD to be taken, in which case, future guaranteed withdrawals under the rider could be reduced. You should consult your tax advisor before you select this optional rider if you have any questions about the use of this rider in your tax situation. - TAX CONSIDERATIONS FOR TSAS: If your contract is a TSA, your right to take a surrender is restricted (see "TSA -- Special Surrender Provisions"), so the rider may be of limited value to you. You should consult your tax advisor before you select this optional rider if you have any questions about the use of this rider in your tax situation. KEY TERMS AND PROVISIONS OF THE GWB FOR LIFE RIDER ARE DESCRIBED BELOW: WITHDRAWAL: For the purposes of this rider, the term "withdrawal" is equal to the term "surrender" in the contract or any other riders. Withdrawals will adjust contract values and benefits in the same manner as surrenders. PARTIAL WITHDRAWALS: A withdrawal of an amount that does not result in a surrender of the contract. The partial withdrawal amount is a gross amount and will include any surrender charge and any market value adjustment. WAITING PERIOD: The period of time starting on the rider effective date during which the annual step up is not available if you take withdrawals. The current waiting period is three years. GUARANTEED BENEFIT AMOUNT (GBA): The total cumulative amount available for partial withdrawals over the life of the rider under the basic withdrawal benefit. The maximum GBA is $5,000,000. The GBA cannot be withdrawn and is not payable as a death benefit. Rather, the GBA is an interim value used to calculate the amount available for withdrawals each year under the basic withdrawal benefit (see "Guaranteed Benefit Payment" below). At any time, the total GBA is the sum of the individual GBAs associated with each purchase payment. The GBA is determined at the following times, calculated as described: - At contract issue -- the GBA is equal to the initial purchase payment, plus any purchase payment credit; RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 71 - When you make additional purchase payments -- each additional purchase payment has its own GBA equal to the amount of the purchase payment plus any purchase payment credit. - At step up -- (see "Annual Step Up," and "Spousal Continuation Step Up" headings below). - When an individual RBA is reduced to zero -- the GBA that is associated with that RBA will also be set to zero. - When you make a partial withdrawal during the waiting period and after a step-up -- Any prior annual step-ups will be reversed. Step up reversal means that the GBA associated with each purchase payment will be reset to the amount of that purchase payment plus any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first partial withdrawal is made. - When you make a partial withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the GBA remains unchanged. If there have been multiple purchase payments, both the total GBA and each payment's GBA remain unchanged. (b) is greater than the total RBP -- GBA EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE GBA. If the partial withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. GBA EXCESS WITHDRAWAL PROCESSING The total GBA will automatically be reset to the lesser of (a) the total GBA immediately prior to the excess withdrawal; or (b) the contract value immediately following the withdrawal. If there have been multiple purchase payments, each payment's GBA after the withdrawal will be reset to equal that payment's RBA after the withdrawal plus (a) times (b), where: (a) is the ratio of the total GBA after the withdrawal less the total RBA after the withdrawal to the total GBA before the withdrawal less the total RBA after the withdrawal; and (b) is each payment's GBA before the withdrawal less that payment's RBA after the withdrawal. REMAINING BENEFIT AMOUNT (RBA): Each withdrawal you make reduces the amount of GBA that is guaranteed by this rider as future withdrawals. At any point in time, the RBA equals the amount of GBA that remains available for withdrawals for the remainder of the contract's life, and total RBA is the sum of the individual RBAs associated with each purchase payment. The maximum RBA is $5,000,000. The RBA is determined at the following times, calculated as described: - At contract issue -- the RBA is equal to the initial purchase payment plus any purchase payment credit. - When you make additional purchase payments -- each additional purchase payment has its own RBA initially set equal to that payment's GBA (the amount of the purchase payment plus any purchase payment credit). - At step up -- (see "Annual Step Up," and "Spousal Continuation Step Up" headings below). - When you make a partial withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the RBA associated with each purchase payment will be reset to the amount of that purchase payment plus any purchase payment credit. The step up reversal will only happen once during the waiting period, when the first partial withdrawal is made. - When you make a partial withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the total RBA is reduced by the amount of the withdrawal. If there have been multiple purchase payments, each payment's RBA is reduced in proportion to its RBP. (b) is greater than the total RBP -- RBA EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE RBA. If the partial withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. RBA EXCESS WITHDRAWAL PROCESSING The total RBA will automatically be reset to the lesser of (a) the contract value immediately following the withdrawal, or (b) the total RBA immediately prior to the withdrawal, less the amount of the withdrawal. If there have been multiple purchase payments, both the total RBA and each payment's RBA will be reset. The total RBA will be reset according to the excess withdrawal processing described above. Each payment's RBA will be reset in the following manner: 1. The withdrawal amount up to the total RBP is taken out of each RBA bucket in proportion to its individual RBP at the time of the withdrawal; and 72 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 2. The withdrawal amount above the total RBP and any amount determined by the excess withdrawal processing are taken out of each RBA bucket in proportion to its RBA at the time of the withdrawal. GUARANTEED BENEFIT PAYMENT (GBP): At any time, the amount available for partial withdrawals in each contract year after the waiting period, until the RBA is reduced to zero, under the basic withdrawal benefit. At any point in time, each purchase payment has its own GBP, which is equal to the lesser of that payment's RBA or 7% of that payment's GBA, and the total GBP is the sum of the individual GBPs. During the waiting period, the guaranteed annual withdrawal amount may be less than the GBP due to the limitations the waiting period imposes on your ability to utilize both annual step ups and withdrawals (see "Waiting Period" heading above). The guaranteed annual withdrawal amount during the waiting period is equal to the value of the RBP at the beginning of the contract year. The GBP is determined at the following times, calculated as described: - At contract issue -- the GBP is established as 7% of the GBA value. - At each contract anniversary -- each payment's GBP is reset to the lesser of that payment's RBA or 7% of that payment's GBA value. - When you make additional purchase payments -- each additional purchase payment has its own GBP equal to that purchase payment amount plus any purchase payment credit, multiplied by 7%. - At step up -- (see "Annual Step Up," and "Spousal Continuation Step Up" headings below). - When an individual RBA is reduced to zero -- the GBP associated with that RBA will also be reset to zero. - When you make a partial withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the GBA and the RBA associated with each purchase payment will be reset to the amount of that purchase payment. Each payment's GBP will be reset to the sum of that purchase payment and any purchase payment credit, multiplied by 7%. The step up reversal will only happen once during the waiting period, when the first partial withdrawal is made. - When you make a partial withdrawal at any time and the amount withdrawn is: (a) less than or equal to the total RBP -- the GBP remains unchanged. (b) is greater than the total RBP -- each payment's GBP is reset to the lesser of that payment's RBA or 7% of that payment's GBA value, based on the RBA and GBA after the withdrawal. If the partial withdrawal is made during the waiting period, these calculations are done AFTER any previously applied annual step ups have been reversed. REMAINING BENEFIT PAYMENT (RBP): The amount available for partial withdrawals for the remainder of the contract year under the basic withdrawal benefit. At any point in time, the total RBP is the sum of the RBPs for each purchase payment. During the waiting period, when the guaranteed amount may be less than the GBP, the value of the RBP at the beginning of the contract year will be that amount that is actually guaranteed each contract year. The RBP is determined at the following times, calculated as described: - At the beginning of each contract year during the waiting period and prior to any withdrawal -- the RBP for each purchase payment is set equal to that purchase payment plus any purchase payment credit, multiplied by 7%. - At the beginning of any other contract year -- the RBP for each purchase payment is set equal to that purchase payment's GBP. - When you make additional purchase payments -- each additional purchase payment has its own RBP equal to that payment's GBP. - At step up -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - At spousal continuation -- See "Spousal Option to Continue the Contract" heading below. - When an individual RBA is reduced to zero -- the RBP associated with that RBA will also be reset to zero. - When you make any partial withdrawal -- the total RBP is reset to equal the total RBP immediately prior to the partial withdrawal less the amount of the partial withdrawal, but not less than zero. If there have been multiple purchase payments, each payment's RBP is reduced proportionately. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RBP, GBA EXCESS WITHDRAWAL PROCESSING AND RBA EXCESS WITHDRAWAL PROCESSING ARE APPLIED and the amount available for the future partial withdrawals for the remainder of the contract's life may be reduced by more than the amount of withdrawal. When determining if a withdrawal will result in the excess withdrawal processing, the applicable RBP will not yet reflect the amount of the current withdrawal. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 73 COVERED PERSON: The person whose life is used to determine when the ALP is established, and the duration of the ALP payments. The covered person is the oldest contract owner unless otherwise specified on your contract data page. If an owner is a nonnatural person (i.e. trust or corporation), the covered person is the oldest annuitant. A spousal continuation or a change of contract ownership may reduce the amount of the lifetime withdrawal benefit and may change the covered person. ANNUAL LIFETIME PAYMENT ATTAINED AGE (ALPAA): The covered person's age after which time the lifetime benefit can be established. Currently, the lifetime benefit can be established on the later of the contract effective date or the contract anniversary date following the date the covered person reaches age 65. ANNUAL LIFETIME PAYMENT (ALP): Once established, the ALP at any time is the amount available for withdrawals in each contract year after the waiting period until the later of death (see "At Death" heading below), or the RBA is reduced to zero, under the lifetime withdrawal benefit. The maximum ALP is $300,000. Prior to establishment of the ALP, the lifetime withdrawal benefit is not in effect and the ALP is zero. During the waiting period, the guaranteed annual lifetime withdrawal amount may be less than the ALP due to the limitations the waiting period imposes on your ability to utilize both annual step-ups and withdrawals (see "Waiting Period" heading above). The guaranteed annual lifetime withdrawal amount during the waiting period is equal to the value of the RALP at the beginning of the contract year. The ALP is determined at the following times: - The later of the contract effective date or the contract anniversary date following the date the covered person reaches age 65 -- the ALP is established as 6% of the total RBA. - When you make additional purchase payments -- each additional purchase payment increases the ALP by the amount of the purchase payment plus any purchase payment credit, multiplied by 6%. - At step ups-- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). - At contract ownership change-- (see "Spousal Option to Continue the Contract" and "Contract Ownership Change" headings below). - When you make a partial withdrawal during the waiting period and after a step up -- Any prior annual step ups will be reversed. Step up reversal means that the ALP will be reset to equal total purchase payments plus any purchase payment credits, multiplied by 6%. The step up reversal will only happen once during the waiting period, when the first partial withdrawal is made. - When you make a partial withdrawal at any time and the amount withdrawn is: (a) less than or equal to the RALP -- the ALP remains unchanged. (b) is greater than the RALP -- ALP EXCESS WITHDRAWAL PROCESSING WILL BE APPLIED TO THE ALP. Please note that if the partial withdrawal is made during the waiting period, the excess withdrawal processing is applied AFTER any previously applied annual step ups have been reversed. ALP EXCESS WITHDRAWAL PROCESSING The ALP is reset to the lesser of the ALP immediately prior to the withdrawal, or 6% of the contract value immediately following the withdrawal. REMAINING ANNUAL LIFETIME PAYMENT (RALP): The amount available for partial withdrawals for the remainder of the contract year under the lifetime withdrawal benefit. During the waiting period, when the guaranteed annual withdrawal amount may be less than the ALP, the value of the RALP at the beginning of the contract year will be the amount that is actually guaranteed each contract year. Prior to establishment of the ALP, the lifetime withdrawal benefit is not in effect and the RALP is zero. THE RALP IS DETERMINED AT THE FOLLOWING TIMES: - The later of the contract effective date or the contract anniversary date following the date the covered person reaches age 65, and: (a) During the waiting period and Prior to any withdrawals -- the RALP is established equal to the sum of purchase payments and purchase payment credits, multiplied by 6%. (b) At any other time -- the RALP is established equal to the ALP. - At the beginning of each contract year during the waiting period and prior to any withdrawals -- the RALP is set equal to the total purchase payments plus any purchase payment credits, multiplied by 6%. - At the beginning of any other contract year -- the RALP is set equal to ALP. - At step ups -- (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). 74 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - When you make additional purchase payments -- each additional purchase payment increases the RALP by the sum of the purchase payment and any purchase payment credit, multiplied by 6%. - When you make any partial withdrawal -- the RALP equals the RALP immediately prior to the partial withdrawal less the amount of the partial withdrawal, but not less than zero. IF YOU WITHDRAW AN AMOUNT GREATER THAN THE RALP, ALP EXCESS WITHDRAWAL PROCESSING IS APPLIED and the amount available for future partial withdrawals for the remainder of the contract's life may be reduced by more than the amount of withdrawal. When determining if a withdrawal will result in excess withdrawal processing, the applicable RALP will not yet reflect the amount of the current withdrawal. REQUIRED MINIMUM DISTRIBUTIONS (RMD): If you are taking RMDs from this contract and the RMD calculated separately for this contract is greater than the RBP or the RALP on the most recent contract anniversary, the portion of the RMD that exceeds the RBP or RALP will not be subject to excess withdrawal processing provided that the following conditions are met: - The RMD is the life expectancy RMD for this contract alone; and - The RMD amount is based on the requirements of the Code section 401(a) (9), related Code provisions and regulations thereunder that were in effect on the effective date of this rider. RMD rules follow the calendar year which most likely does not coincide with your contract year and therefore may limit when you can take your RMD and not be subject to excess withdrawal processing. Withdrawal amounts greater than the RBP or RALP on the contract anniversary date that do not meet these conditions will result in excess withdrawal processing as described above. See Appendix F for additional information. STEP UP DATE: The date any step up becomes effective, and depends on the type of step up being applied (see "Annual Step Up" and "Spousal Continuation Step Up" headings below). ANNUAL STEP UP: Beginning with the first contract anniversary, an increase of the GBA, RBA, GBP, RBP, ALP, and/or RALP values may be available. A step up does not create contract value, guarantee the performance of any investment option, or provide a benefit that can be withdrawn or paid upon death. Rather, a step up determines the current values of the GBA, RBA, GBP, RBP, ALP, and RALP, and may extend the payment period or increase the allowable payment. The annual step up is subject to the following rules: - The annual step up is available when the RBA, or if established, the ALP, would increase on the step up date. - Only one step up is allowed each contract year. - If you take any withdrawals during the waiting period, any previously applied step ups will be reversed and the annual step up will not be available until the end of the waiting period. - If the application of the step up does not increase the rider charge, the annual step up will be automatically applied to your contract, and the step up date is the contract anniversary date. - If the application of the step up would increase the rider charge, the annual step up is not automatically applied. Instead, you have the option to step up for 30 days after the contract anniversary. If you exercise the elective annual step up option, you will pay the rider charge in effect on the step up date. If you wish to exercise the elective annual step up option, we must receive a request from you or your financial advisor. The step up date is the date we receive your request to step up. If your request is received after the close of business, the step up date will be the next valuation day. - The ALP and RALP are not eligible for step ups until they are established. Prior to being established, the ALP and RALP values are both zero. - Please note it is possible for the ALP to step up even if the RBA or GBA do not step up and it is also possible for the RBA and GBA to step up even if the ALP does not step up. The annual step up resets the GBA, RBA, GBP, RBP, ALP and RALP values as follows: - The total RBA will be reset to the greater of the total RBA immediately prior to the step up date or the contract value on the step up date. - The total GBA will be reset to the greater of the total GBA immediately prior to the step up date or the contract value on the step up date. - The total GBP will be reset using the calculation as described above based on the increased GBA and RBA. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 75 - The total RBP will be reset as follows: (a) During the waiting period and prior to any withdrawals, the RBP will not be affected by the step up. (b) At any other time, the RBP will be reset as the increased GBP less all prior withdrawals made in the current contract year, but not less than zero. - The ALP will be reset to the greater of the ALP immediately prior to the step up date or 6% of the contract value on the step up date. - The RALP will be reset as follows: (a) During the waiting period and prior to any withdrawals, the RALP will not be affected by the step up. (b) At any other time, the RALP will be reset as the increased ALP less all prior withdrawals made in the current contract year, but not less than zero. SPOUSAL OPTION TO CONTINUE THE CONTRACT: If a surviving spouse elects to continue the contract and continues the contract as the new owner under the spousal continuation provision of the contract, the GWB for Life rider also continues. When the spouse elects to continue the contract, any remaining waiting period is cancelled; the covered person will be re-determined and is the covered person referred to below; and the GBA, RBA, GBP, RBP, ALP and RALP values are affected as follows: - The GBA, RBA, and GBP values remain unchanged. - The RBP is automatically reset to the GBP less all prior withdrawals made in the current contract year, but not less than zero. - If the ALP has not yet been established and the new covered person has not yet reached age 65 as of the date of continuation -- the ALP will be established on the contract anniversary following the date the covered person reaches age 65 as the lesser of the RBA or the anniversary contract value, multiplied by 6%. The RALP will be established on the same date equal to the ALP. - If the ALP has not yet been established but the new covered person is age 65 or older as of the date of continuation -- the ALP will be established on the date of continuation as the lesser of the RBA or the contract value, multiplied by 6%. The RALP will be established on the same date in an amount equal to the ALP less all prior partial withdrawals made in the current contract year, but will never be less than zero. - If the ALP has been established but the new covered person has not yet reached age 65 as of the date of continuation -- the ALP and RALP will be automatically reset to zero for the period of time beginning with the date of continuation and ending with the contract anniversary following the date the covered person reaches age 65. At the end of this time period, the ALP will be reset to the lesser of the RBA or the anniversary contract value, multiplied by 6%, and the RALP will be reset to the ALP. - If the ALP has been established and the new covered person is age 65 or older as of the date of continuation -- the ALP will be automatically reset to the lesser of the current ALP or 6% of the contract value on the date of continuation. The RALP will be reset to the ALP less all prior withdrawals made in the current contract year, but not less than zero. Please note that the lifetime withdrawal benefit amount may be reduced as a result of the spousal continuation. SPOUSAL CONTINUATION STEP UP: If a surviving spouse elects to continue the contract, another elective step up option becomes available. To exercise the step up, the spouse or the spouse's financial advisor must submit a request within 30 days of the date of continuation. The step up date is the date we receive the spouse's request to step up. If the request is received after the close of business, the step up date will be the next valuation day. The GBA, RBA, GBP, RBP, ALP and RALP will be reset in the same fashion as the annual step up. If the spousal continuation step up option is exercised and we have increased the charge for the rider, the spouse will pay the charge that is in effect on the step up date. It is our current administrative practice to process the spousal continuation step up as described in the next paragraph; however, we reserve the right to discontinue the administrative practice and will give you 30 days' written notice of any such change. At the time of spousal continuation, a step-up may be available. All annual step-up rules (see "Annual Step-Up" heading above), other than those that apply to the waiting period, also apply to the spousal continuation step-up. If the spousal continuation step-up is processed automatically, the step-up date is the valuation date the spousal continuation is effective. If not, the spouse must elect the step up and must do so within 30 days of the spousal continuation date. If the spouse elects the spousal continuation step up, the step-up date is the valuation date we receive the spouse's written request to step up if we receive the request by the close of business on that day, otherwise the next valuation date. 76 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS IF CONTRACT VALUE REDUCES TO LESS THAN $600*: If the contract value reduces to less than $600 and the total RBA remains greater than zero, you will be paid in the following scenarios: 1) The ALP has not yet been established and the contract value is reduced to less than $600 for any reason other than full or partial surrender of more than the RBP. In this scenario, you can choose to: (a) receive the remaining schedule of GBPs until the RBA equals zero; or (b) wait until the rider anniversary following the date the covered person reaches age 65, and then receive the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. 2) The ALP has been established and the contract value reduces to less than $600 as a result of fees or charges, or a withdrawal that is less than or equal to both the RBP and the RALP. In this scenario, you can choose to receive: (a) the remaining schedule of GBPs until the RBA equals zero; or (b) the ALP annually until the latter of (i) the death of the covered person, or (ii) the RBA is reduced to zero. We will notify you of this option. If no election is made, the ALP will be paid. 3) The ALP has been established and the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP. In this scenario, the remaining schedule of GBPs will be paid until the RBA equals zero. 4) The ALP has been established and the contract value falls to zero as a result of a partial withdrawal that is greater than the RBP but less than or equal to the RALP. In this scenario, the ALP will be paid annually until the death of the Covered Person. Under any of these scenarios: - The annualized amounts will be paid to you in the frequency you elect. You may elect a frequency offered by us at the time payments begin. Available payment frequencies will be no less frequent than annually. - We will no longer accept additional purchase payments; - You will no longer be charged for the rider; - Any attached death benefit riders will terminate; and - The death benefit becomes the remaining payments, if any, until the RBA is reduced to zero. The GWB for Life rider and the contract will terminate under either of the following two scenarios: - If the contract value falls to zero as a result of a withdrawal that is greater than the RBP and RALP. This is full surrender of the contract. - If the contract value falls to zero as a result of a withdrawal that is greater than the RALP but less than or equal to the RBP, and the total RBA is reduced to zero. * Under the current administrative practice, we allow the minimum contract value to be $0. Therefore, these scenarios will only apply when the contract value is reduced to zero. AT DEATH: If the contract value is greater than zero when the death benefit becomes payable, the beneficiary may elect to take the death benefit as a lump sum under the terms of the contract (see "Benefits in Case of Death") or the annuity payout option (see "Remaining Benefit Amount Payout Option" heading below). If the contract value equals zero and the death benefit becomes payable, the following will occur: - If the RBA is greater than zero and the owner has been receiving the GBP each year, the GBP will continue to be paid to the beneficiary until the RBA equals zero. - If the covered person dies and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the RBA equals zero. - If the covered person is still alive and the RBA is greater than zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the later of the death of the covered person or the RBA equals zero. - If the covered person is still alive and the RBA equals zero and the owner has been receiving the ALP each year, the ALP will continue to be paid to the beneficiary until the death of the covered person. - If the covered person dies and the RBA equals zero, the benefit terminates. No further payments will be made. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 77 CONTRACT OWNERSHIP CHANGE: If the contract changes ownership (see "Changing Ownership"), the covered person will be redetermined and is the covered person referred to below. The GBA, RBA, GBP, RBP values will remain unchanged. The ALP and RALP will be reset as follows: - If the ALP has not yet been established and the new covered person has not yet reached age 65 as of the ownership change date -- the ALP and the RALP will be established on the contract anniversary following the date the covered person reaches age 65. The ALP will be set equal to the lesser of the RBA or the anniversary contract value, multiplied by 6%. If the anniversary date occurs during the waiting period and prior to a withdrawal, the RALP will be set equal to the lesser of the ALP or total purchase payments plus purchase payment credits, multiplied by 6%. If the anniversary date occurs at any other time, the RALP will be set to the ALP. - If the ALP has not yet been established but the new covered person is age 65 or older as of the ownership change date -- the ALP and the RALP will be established on the ownership change date. The ALP will be set equal to the lesser of the RBA or the contract value, multiplied by 6%. If the ownership change date occurs during the waiting period and prior to a withdrawal, the RALP will be set to the lesser of the ALP or total purchase payments plus purchase payment credits, multiplied by 6%. If the ownership change date occurs at any other time, the RALP will be set equal to the ALP less all prior withdrawals made in the current contract year but not less than zero. - If the ALP has been established but the new covered person has not yet reached age 65 as of the ownership change date -- the ALP and the RALP will be reset to zero for the period of time beginning with the ownership change date and ending with the contract anniversary following the date the covered person reaches age 65. At the end of this time period, the ALP will be reset to the lesser of the RBA or the anniversary contract value, multiplied by 6%. If the time period ends during the waiting period and prior to any withdrawals, the RALP will be reset to the lesser of the ALP or total purchase payments plus any purchase payment credits, multiplied by 6%. If the time period ends at any other time, the RALP will be reset to the ALP. - If the ALP has been established and the new covered person is age 65 or older as of the ownership change date -- the ALP and the RALP will be reset on the ownership change date. The ALP will be reset to the lesser of the current ALP or 6% of the contract value. If the ownership change date occurs during the waiting period and prior to a withdrawal, the RALP will be reset to the lesser of the ALP or total purchase payments plus purchase payment credits, multiplied by 6%. If the ownership change date occurs at any other time, the RALP will be reset to the ALP less all prior withdrawals made in the current contract year but not less than zero. Please note that the lifetime withdrawal benefit amount may be reduced as a result of the ownership change. REMAINING BENEFIT AMOUNT PAYOUT OPTION: Several annuity payout plans are available under the contract. As an alternative to these annuity payout plans, a fixed annuity payout option is available under the GWB for Life rider. Under this option the amount payable each year will be equal to the remaining schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the current total RBA at the time you begin this fixed annuity payout option. These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at that time but will be no less frequent than annually. If, at the death of the owner, total payments have been made for less than the RBA, the remaining payments will be paid to the beneficiary (see "The Annuity Payout Period" and "Taxes"). This option may not be available if the contract is issued to qualify under Section 403 or 408 of the Code. For such contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the owner at the time the option becomes effective. Such life expectancy will be computed using a life expectancy table published by the IRS. This annuity payout option may also be elected by the beneficiary of a contract as a settlement option. Whenever multiple beneficiaries are designated under the contract, each such beneficiary's share of the proceeds if they elect this option will be in proportion to their applicable designated beneficiary percentage. Beneficiaries of nonqualified contracts may elect this settlement option subject to the distribution requirements of the contract. We reserve the right to adjust the future schedule of GBPs if necessary to comply with the Code. RIDER TERMINATION The GWB for Life rider cannot be terminated either by you or us except as follows: 1. Annuity payouts under an annuity payout plan will terminate the rider. 2. Termination of the contract for any reason will terminate the rider. For an example, see Appendix E. 78 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS THE ANNUITY PAYOUT PERIOD As owner of the contract, you have the right to decide how and to whom annuity payouts will be made starting at the settlement date. You may select one of the annuity payout plans outlined below, or we may mutually agree on other payout arrangements. We do not deduct any surrender charges under the payout plans listed below except under Plan E. You also decide whether we will make annuity payouts on a fixed or variable basis, or a combination of fixed and variable. The amount available to purchase payouts under the plan you select is the contract value on your settlement date, plus or minus any applicable MVA on GPAs and less any applicable premium tax. During the annuity payout period, you cannot invest in more than five subaccounts at any one time unless we agree otherwise. AMOUNTS OF FIXED AND VARIABLE PAYOUTS DEPEND ON: - the annuity payout plan you select; - your age and, in most cases, sex; - the annuity table in the contract; and - the amounts you allocated to the accounts at settlement. In addition, for variable payouts only, amounts depend on the investment performance of the subaccounts you select. These payouts will vary from month to month because the performance of the funds will fluctuate. Fixed payouts remain the same from month to month. For information with respect to transfers between accounts after annuity payouts begin, see "Making the Most of Your Contract -- Transfer policies." ANNUITY TABLES The annuity tables in your contract (Table A and Table B) show the amount of the monthly payout for each $1,000 of contract value according to your age and, when applicable, your sex. (Where required by law, we will use a unisex table of settlement rates.) Table A shows the amount of the first variable payout assuming that the contract value is invested at the beginning of the annuity payout period and earns a 5% rate of return, which is reinvested and helps to support future payouts. If you ask us at least 30 days before the settlement date, we will substitute an annuity table based on an assumed 3.5% investment rate for the 5% Table A in the contract. The assumed investment rate affects both the amount of the first payout and the extent to which subsequent payouts increase or decrease. For example, annuity payouts will increase if the investment return is above the assumed investment rate and payouts will decrease if the return is below the assumed investment rate. Using the 5% assumed interest rate results in a higher initial payout but later payouts will increase more slowly when annuity unit values rise and decrease more rapidly when they decline. Table B shows the minimum amount of each fixed payout. Amounts in Table B are based on the guaranteed annual effective interest rate shown in your contract. We declare current payout rates that we use in determining the actual amount of your fixed payout. The current payout rates will equal or exceed the guaranteed payout rates shown in Table B. We will furnish these rates to you upon request. ANNUITY PAYOUT PLANS You may choose any one of these annuity payout plans by giving us written instructions at least 30 days before contract value is used to purchase the payout plan*: - PLAN A: LIFE ANNUITY -- NO REFUND: We make monthly payouts until the annuitant's death. Payouts end with the last payout before the annuitant's death. We will not make any further payouts. This means that if the annuitant dies after we made only ONE monthly payout, we will not make any more payouts. - PLAN B: LIFE ANNUITY WITH FIVE, TEN, 15, OR 20 YEARS CERTAIN: We make monthly payouts for a guaranteed payout period of five, ten, 15, or 20 years that you elect. This election will determine the length of the payout period to the beneficiary if the annuitant should die before the elected period expires. We calculate the guaranteed payout period from the settlement date. If the annuitant outlives the elected guaranteed payout period, we will continue to make payouts until the annuitant's death. - PLAN C: LIFE ANNUITY -- INSTALLMENT REFUND: We make monthly payouts until the annuitant's death, with our guarantee that payouts will continue for some period of time. We will make payouts for at least the number of months determined by dividing the amount applied under this option by the first monthly payout, whether or not the annuitant is living. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 79 - PLAN D: JOINT AND LAST SURVIVOR LIFE ANNUITY -- NO REFUND: We make monthly payouts while both the annuitant and a joint annuitant are living. If either annuitant dies, we will continue to make monthly payouts at the full amount until the death of the surviving owner. Payouts end with the death of the second annuitant. - PLAN E: PAYOUTS FOR A SPECIFIED PERIOD: We make monthly payouts for a specific payout period of ten to 30 years that you elect. We will make payouts only for the number of years specified whether the annuitant is living or not. Depending on the selected time period, it is foreseeable that the annuitant can outlive the payout period selected. During the payout period, you can elect to have us determine the present value of any remaining variable payouts and pay it to you in a lump sum. We determine the present value of the remaining annuity payouts which are assumed to remain level at the initial payout. The discount rate we use in the calculation will vary between 5.17% and 6.67%, depending on the applicable assumed investment rate. (See "Charges -- Surrender charge under Annuity Payout Plan E.") You can also take a portion of the discounted value once a year. If you do so, your monthly payouts will be reduced by the proportion of your surrender to the full discounted value. A 10% IRS penalty tax could apply if you take surrender. (See "Taxes.") - RBA PAYOUT OPTION: If you have a GWB for Life or SecureSource(SM) rider under your contract, you may elect the Withdrawal Benefit RBA payout option as an alternative to the above annuity payout plans. This option may not be available if the contract is issued to qualify under Sections 403 or 408 of the Code. For such contracts, this option will be available only if the guaranteed payment period is less than the life expectancy of the owner at the time the option becomes effective. Such life expectancy will be computed using life expectancy tables published by IRS. Under this option, the amount payable each year will be equal to the remaining schedule of GBPs, but the total amount paid over the life of the annuity will not exceed the total RBA at the time you begin this fixed payout option (see "Optional Benefits"). These annualized amounts will be paid in the frequency that you elect. The frequencies will be among those offered by us at the time but will be no less frequent than annually. If, at the death of the owner, total payouts have been made for less than the RBA, the remaining payouts will be paid to the beneficiary. ANNUITY PAYOUT PLAN REQUIREMENTS FOR QUALIFIED ANNUITIES: If your contract is a qualified annuity, you must select a payout plan as of the settlement date set forth in your contract. You have the responsibility for electing a payout plan under your contract that complies with applicable law. Your contract describes your payout plan options. The options will generally meet certain IRS regulations governing RMDs if the payout plan meets the incidental distribution benefit requirements, if any, and the payouts are made: - in equal or substantially equal payments over a period not longer than your life or over the joint life of you and your designated beneficiary; or - in equal or substantially equal payments over a period not longer than your life expectancy or over the joint life expectancy of you and your designated beneficiary; or - over a period certain not longer than your life expectancy or over the life expectancy of you and your designated beneficiary. * For contracts purchased in Oregon, you cannot apply your contract value to an annuity payout plan during your first contract year. WRITTEN INSTRUCTIONS: You must give us written instructions for the annuity payouts at least 30 days before the settlement date. Contract values that you allocated to the regular fixed account will provide fixed dollar payouts and contract values that you allocated among the subaccounts will provide variable annuity payouts. IF MONTHLY PAYOUTS WOULD BE LESS THAN $20: We will calculate the amount of monthly payouts at the time the contract value is used to purchase a payout plan. If the calculations show that monthly payouts would be less than $20, we have the right to pay the contract value to the owner in a lump sum or to change the frequency of the payouts. DEATH AFTER ANNUITY PAYOUTS BEGIN: If you die after annuity payouts begin, we will pay any amount payable to the beneficiary as provided in the annuity payout plan in effect. 80 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS TAXES Generally, under current law, your contract has a tax-deferral feature. This means any increase in the value of the GPAs, regular fixed account, subaccounts and/or Special DCA fixed account in which you invest is taxable to you only when you receive a payout or surrender (see detailed discussion below). Any portion of the annuity payouts and any surrenders you request that represent ordinary income normally are taxable. We will send you a tax information reporting form for any year in which we made a taxable distribution according to our records. Roth IRAs may grow and be distributed tax free if you meet certain distribution requirements. We will send you a tax information reporting form for any year in which we made a distribution according to our records. NONQUALIFIED ANNUITIES ANNUITY PAYOUTS: Generally, a portion of each payout will be ordinary income and subject to tax, and a portion of each payout will be considered a return of part of your investment and will not be taxed. All amounts you receive after your investment in the contract is fully recovered will be subject to tax. Under Annuity Payout Plan A: Life annuity -- no refund, where the annuitant dies before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the owner for the last taxable year. Under all other annuity payout plans, where the annuity payouts end before your investment in the contract is fully recovered, the remaining portion of the unrecovered investment may be available as a federal income tax deduction to the taxpayer for the tax year in which the payouts end. (See "Annuity Payout Plans.") Tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when you take distributions from any one of those contracts. SURRENDERS: If you surrender part of your nonqualified annuity before your annuity payouts begin, including withdrawals under a GWB for Life or SecureSource(SM) rider, your surrender payment will be taxed to the extent that the contract value immediately before the surrender exceeds the investment in the contract. If you surrender all of your nonqualified annuity before your annuity payouts begin, including withdrawals under a GWB for Life or SecureSource(SM) rider, your surrender payment will be taxed to the extent that the surrender value immediately before the surrender exceeds the investment in the contract. You also may have to pay a 10% IRS penalty for surrenders of taxable income you make before reaching age 59 1/2 unless certain exceptions apply. Tax law requires that all nonqualified deferred annuity contracts issued by the same company (and possibly its affiliates) to the same owner during a calendar year be taxed as a single, unified contract when you take distributions from any one of those contracts. WITHHOLDING: If you receive taxable income as a result of an annuity payout or a surrender, including withdrawals under a GWB for Life or SecureSource(SM) rider, we may deduct withholding against the taxable income portion of the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you've provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as a partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver the payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. DEATH BENEFITS TO BENEFICIARIES: The death benefit under a contract is not exempt from estate (federal or state) or income taxes. Any amount your beneficiary receives that represents deferred earnings within the contract is taxable as ordinary income to the beneficiary in the year he or she receives the payments. ANNUITIES OWNED BY CORPORATIONS, PARTNERSHIPS OR TRUSTS: For nonqualified annuities, any annual increase in the value of annuities held by such entities (nonnatural persons) generally will be treated as ordinary income received during that year. However, if the trust was set up for the benefit of a natural person only, the income will generally remain tax-deferred. PENALTIES: If you receive amounts from your nonqualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty will not apply to any amount received: - because of your death; - because you become disabled (as defined in the Code); RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 81 - if the distribution is part of a series of substantially equal periodic payments, made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if it is allocable to an investment before Aug. 14, 1982; or - if annuity payouts are made under immediate annuities as defined by the Code. TRANSFER OF OWNERSHIP: If you transfer a nonqualified annuity without receiving adequate consideration, the transfer is a gift and also may be treated as surrender for federal income tax purposes. If the gift is a currently taxable event for income tax purposes, the original owner will be taxed on the amount of deferred earnings at the time of the transfer and also may be subject to the 10% IRS penalty discussed earlier. In this case, the new owner's investment in the contract will be the value of the contract at the time of the transfer. In general, this rule does not apply to transfers between spouses or former spouses. Please consult your tax advisor for further details. COLLATERAL ASSIGNMENT: If you assign or pledge your contract as collateral for a loan, earnings on purchase payments you made after Aug. 13, 1982 will be taxed to you like a surrender and you may have to pay a 10% IRS penalty. QUALIFIED ANNUITIES Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions under the contract comply with the law. Qualified annuities have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan's Summary Plan Description, your IRA disclosure statement, or consult a tax advisor for additional information about the distribution rules applicable to your situation. When you use your contract to fund a retirement plan or IRA that is already tax-deferred under the Code, the contract will not provide any necessary or additional tax deferral. If your contract is used to fund an employer sponsored plan, your rights to benefits may be subject to the terms and conditions of the plan regardless of the terms of the contract. ANNUITY PAYOUTS: Under a qualified annuity except a Roth IRA, the entire payout generally is includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non-deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contract is used to fund a retirement plan and you or your employer have contributed after-tax dollars. ANNUITY PAYOUTS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and met the five year holding period. SURRENDERS: Under a qualified annuity except a Roth IRA, the entire surrender will generally be includable as ordinary income and is subject to tax unless: (1) the contract is an IRA to which you made non-deductible contributions; or (2) you rolled after-tax dollars from a retirement plan into your IRA; or (3) the contact is used to fund a retirement plan and you or your employer have contributed after-tax dollars. SURRENDERS FROM ROTH IRAS: In general, the entire payout from a Roth IRA can be free from income and penalty taxes if you have attained age 59 1/2 and met the five year holding period. REQUIRED MINIMUM DISTRIBUTIONS: Retirement plans are subject to required withdrawals called required minimum distributions (RMDs) generally beginning at age 70 1/2. In addition, a new tax regulation, effective for RMDs calculated in 2006 and after, may cause the RMDs for some contracts with certain death benefits and optional riders to increase. RMDs may reduce the value of certain death benefits and optional riders. You should consult your tax advisor prior to making a purchase for an explanation of the potential tax implications to you. WITHHOLDING FOR IRAS, ROTH IRAS, SEPS AND SIMPLE IRAS: If you receive taxable income as a result of an annuity payout or a surrender, including withdrawals under a GWB for Life or SecureSource(SM) rider, we may deduct withholding against the taxable income portion of the payment. Any withholding represents a prepayment of your tax due for the year. You take credit for these amounts on your annual income tax return. As long as you have provided us with a valid Social Security Number or Taxpayer Identification Number, you can elect not to have any withholding occur. If the payment is part of an annuity payout plan, we generally compute the amount of withholding using payroll tables. You may provide us with a statement of how many exemptions to use in calculating the withholding. If the distribution is any other type of payment (such as a partial or full surrender) we compute withholding using 10% of the taxable portion. The withholding requirements differ if we deliver payment outside the United States and/or you are a non-resident alien. Some states also may impose withholding requirements similar to the federal withholding described above. If this should be the case, we may deduct state withholding from the payment. 82 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS WITHHOLDING FOR ALL OTHER QUALIFIED ANNUITIES: If you receive directly all or part of the contract value from a qualified annuity, mandatory 20% federal income tax withholding (and possibly state income tax withholding) generally will be imposed at the time the payout is made from the plan. This mandatory withholding will not be imposed if: - instead of receiving the distribution check, you elect to have the distribution rolled over directly to an IRA or another eligible plan; - the payout is one in a series of substantially equal periodic payouts, made at least annually, over your life or life expectancy (or the joint lives or life expectancies of you and your designated beneficiary) or over a specified period of 10 years or more; - the payout is an RMD as defined under the Code; - the payout is made on account of an eligible hardship; or - the payout is a corrective distribution. In the above situations, the distribution is subject to optional 10% withholding. We will withhold 10% of the distribution amount unless you elect otherwise. Payments made to a surviving spouse instead of being directly rolled over to an IRA also may be subject to mandatory 20% income tax withholding. State withholding also may be imposed on taxable distributions. PENALTIES: If you receive amounts from your qualified annuity before reaching age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in your ordinary income. However, this penalty generally will not apply to any amount received: - because of your death; - because you become disabled (as defined in the Code); - if the distribution is part of a series of substantially equal periodic payments made at least annually, over your life or life expectancy (or joint lives or life expectancies of you and your beneficiary); - if the distribution is made following severance from employment during the calendar year in which you attain age 55 (TSAs and annuities funding 401(a) plans only); or - to pay certain medical or education expenses (IRAs only). DEATH BENEFITS TO BENEFICIARIES: The entire death benefit generally is taxable as ordinary income to the beneficiary in the year he or she receives the payments from the qualified annuity. If you made non-deductible contributions to a traditional IRA, the portion of any distribution from the contract that represents after-tax contributions is not taxable as ordinary income to your beneficiary. You are responsible for keeping all records tracking your non-deductible contributions to an IRA. Death benefits under a Roth IRA generally are not taxable as ordinary income to the beneficiary if certain distribution requirements are met. PURCHASE PAYMENT CREDITS: These are considered earnings and are taxed accordingly when surrendered or paid out. SPECIAL CONSIDERATIONS IF YOU SELECT ONE OF THE OPTIONAL RIDERS (ROPP, MAV, 5-YEAR MAV, EEB, EEP, ACCUMULATION BENEFIT, GWB FOR LIFE OR SECURESOURCE(SM)): As of the date of this prospectus, we believe that charges related to these riders are not subject to current taxation. Therefore, we will not report these charges as partial surrenders from your contract. However, the IRS may determine that these charges should be treated as partial surrenders subject to taxation to the extent of any gain as well as the 10% IRS tax penalty for surrenders before the age of 59 1/2, if applicable. We reserve the right to report charges for these riders as partial surrenders if we, as a withholding and reporting agent, believe that we are required to report them. In addition, we will report the benefits attributable to these riders on your death as an annuity death benefit distribution, not as proceeds from life insurance. COLLATERAL ASSIGNMENT: You may not assign or pledge a qualified annuity as collateral for a loan. IMPORTANT: Our discussion of federal tax laws is based upon our understanding of current interpretations of these laws. Federal tax laws or current interpretations of them may change. For this reason and because tax consequences are complex and highly individual and cannot always be anticipated, you should consult a tax advisor if you have any questions about taxation of your contract. RIVERSOURCE LIFE'S TAX STATUS: We are taxed as a life insurance company under the Code. For federal income tax purposes, the subaccounts are considered a part of our company, although their operations are treated separately in accounting and financial statements. Investment income is reinvested in the fund in which each subaccount invests and becomes part of that subaccount's value. This investment income, including realized capital gains, is not taxed to us, and therefore no charge is made against the subaccounts for federal income taxes. We reserve the right to make such a charge in the future if there is a change in the tax treatment of variable annuities. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 83 TAX QUALIFICATION: We intend that the contract qualify as an annuity for federal income tax purposes. To that end, the provisions of the contract are to be interpreted to ensure or maintain such tax qualification, in spite of any other provisions of the contract. We reserve the right to amend the contract to reflect any clarifications that may be needed or are appropriate to maintain such qualification or to conform the contract to any applicable changes in the tax qualification requirements. We will send you a copy of any amendments. VOTING RIGHTS As a contract owner with investments in the subaccounts, you may vote on important fund policies until annuity payouts begin. Once they begin, the person receiving them has voting rights. We will vote fund shares according to the instructions of the person with voting rights. Before annuity payouts begin, the number of votes you have is determined by applying your percentage interest in each subaccount to the total number of votes allowed to the subaccount. After annuity payouts begin, the number of votes you have is equal to: - the reserve held in each subaccount for your contract; divided by - the net asset value of one share of the applicable fund. As we make annuity payouts, the reserve for the contract decreases; therefore, the number of votes also will decrease. We calculate votes separately for each subaccount. We will send notice of shareholders' meetings, proxy materials and a statement of the number of votes to which the voter is entitled. We will vote shares for which we have not received instructions in the same proportion as the votes for which we received instructions. We also will vote the shares for which we have voting rights in the same proportion as the votes for which we received instructions. SUBSTITUTION OF INVESTMENTS We may substitute the funds in which the subaccounts invest if: - laws or regulations change; - the existing funds become unavailable; or - in our judgment, the funds no longer are suitable for the subaccounts. If any of these situations occur, and if we believe it is in the best interest of persons having voting rights under the contract, we have the right to substitute a fund currently listed in this prospectus (existing fund) for another fund (new fund). The new fund may have higher fees and/or operating expenses than the existing fund. Also, the new fund may have investment objectives and policies and/or investment advisers which differ from the existing fund. We may also: - add new subaccounts; - combine any two or more subaccounts; - transfer assets to and from the subaccounts or the variable account; and - eliminate or close any subaccounts. We will notify you of any substitution or change. If we notify you that a subaccount will be eliminated or closed, you will have a certain period of time to tell us where to reallocate purchase payments or contract value currently allocated to that subaccount. If we do not receive your reallocation instructions by the due date, we automatically will reallocate to the subaccount investing in the RiverSource Variable Portfolio -- Cash Management Fund. You may then transfer this reallocated amount in accordance with the transfer provisions of your contract (see "Transferring Between Accounts" above). In the event of substitution or any of these changes, we may amend the contract and take whatever action is necessary and appropriate without your consent or approval. However, we will not make any substitution or change without the necessary approval of the SEC and state insurance departments. 84 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS ABOUT THE SERVICE PROVIDERS PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. (RiverSource Distributors), our affiliate, serves as the principal underwriter and general distributor of the contract. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc. SALES OF THE CONTRACT - Only securities broker-dealers ("selling firms") registered with the SEC and members of the NASD may sell the contract. - The contracts are continuously offered to the public through authorized selling firms. We and RiverSource Distributors have a sales agreement with the selling firm. The sales agreement authorizes the selling firm to offer the contracts to the public. We agree to pay the selling firm (or an affiliated insurance agency) for contracts its financial advisors sell. The selling firm may be required to return sales commissions under certain circumstances including but not limited to when contracts are returned under the free look period. PAYMENTS TO SELLING FIRMS - We may use compensation plans which vary by selling firm. For example, some of these plans pay selling firms a commission of up to 6.00% each time you make a purchase payment. Other plans pay selling firms a smaller commission on purchase payments, and then pay ongoing commissions ("trail commissions"). We may pay trail commissions of up to 1% of the contract value. We do not pay or withhold payment of commissions based on which investment options you select. - We may pay selling firms a temporary additional sales commission of up to 1% of purchase payments for a period of time we select. For example, we may offer to pay a temporary additional sales commission to get selling firms to market a new or enhanced contract or to increase sales during the period. - In addition to commissions, we may, in order to promote sales of the contracts, and as permitted by applicable laws and regulations, pay or provide selling firms with other promotional incentives in cash, credit or other compensation. We generally (but may not) offer these promotional incentives to all selling firms. The terms of such arrangements differ between selling firms. These promotional incentives may include but are not limited to: - sponsorship of marketing, educational, due diligence and compliance meetings and conferences we or the selling firm may conduct for financial advisors, including subsidy of travel, meal, lodging, entertainment and other expenses related to these meetings; - marketing support related to sales of the contract including for example, the creation of marketing materials, advertising and newsletters; - providing service to contract owners; and - funding other events sponsored by a selling firm that may encourage the selling firm's financial advisors to sell the contract. These promotional incentives or reimbursements may be calculated as a percentage of the selling firm's aggregate, net or anticipated sales and/or total assets attributable to sales of the contract, and/or may be a fixed dollar amount. As noted below this additional compensation may cause the selling firm and its financial advisors to favor the contracts. SOURCES OF PAYMENTS TO SELLING FIRMS We pay the commissions and other compensation described above from our assets. Our assets may include: - revenues we receive from fees and expenses that you will pay when buying, owning and surrendering the contract (see "Expense Summary"); - compensation we or an affiliate receive from the underlying funds in the form of distribution and services fees (see "The Variable Account and the Funds -- The funds"); - compensation we or an affiliate receive from a fund's investment adviser, subadviser, distributor or an affiliate of any of these (see "The Variable Account and the Funds -- The funds"); and - revenues we receive from other contracts and policies we sell that are not securities and other businesses we conduct. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 85 You do not directly pay the commissions and other compensation described above as the result of a specific charge or deduction under the contract. However, you may pay part or all of the commissions and other compensation described above indirectly through: - fees and expenses we collect from contract owners, including surrender charges; and - fees and expenses charged by the underlying funds in which the subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the funds or an affiliated person. POTENTIAL CONFLICTS OF INTEREST Compensation payment arrangements with selling firms can potentially: - give selling firms a heightened financial incentive to sell the contract offered in this prospectus over another investment with lower compensation to the selling firm. - cause selling firms to encourage their financial advisors to sell you the contract offered in this prospectus instead of selling you other alternative investments that may result in lower compensation to the selling firm. - cause selling firms to grant us access to its financial advisors to promote sales of the contract offered in this prospectus, while denying that access to other firms offering similar contracts or other alternative investments which may pay lower compensation to the selling firm. PAYMENTS TO SALES REPRESENTATIVES - The selling firm pays its sales representatives. The selling firm decides the compensation and benefits it will pay its sales representatives. - To inform yourself of any potential conflicts of interest, ask your financial advisor before you buy how the selling firm and its sales representatives are being compensated and the amount of the compensation that each will receive if you buy the contract. ISSUER We issue the contracts. We are a stock life insurance company organized in 1957 under the laws of the state of Minnesota and are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned subsidiary of Ameriprise Financial, Inc. We conduct a conventional life insurance business. We are licensed to do business in 49 states, the District of Columbia and American Samoa. Our primary products currently include fixed and variable annuity contracts and life insurance policies. LEGAL PROCEEDINGS RiverSource Life is involved in the normal course of business in legal and regulatory proceedings, or regulatory requests for information, concerning matters arising in connection with the conduct of our general business activities as well as generally applicable to business practices in the insurance industry. From time to time, we receive requests for information from, or have been subject to examination by, the SEC, National Association of Securities Dealers and several state authorities concerning our business activities and practices, generally including the sales and product or service features of, disclosures pertaining to, trading practices related to, compensation paid to us or to others with respect to, and the suitability of our annuity and insurance products. We have cooperated with and will continue to cooperate with the applicable regulators regarding their inquiries and examinations. RiverSource Life is involved in other proceedings concerning matters arising in connection with the conduct of their respective business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material adverse impact on results of operations in any particular reporting period as the proceedings are resolved. 86 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS ADDITIONAL INFORMATION INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE To the extent and only to the extent that any statement in a document incorporated by reference into this prospectus is modified or superseded by a statement in this prospectus or in a later-filed document, such statement is hereby deemed so modified or superseded and not part of this prospectus. The Annual Report on Form 10-K for the year ended Dec. 31, 2006 that we previously filed with the SEC under the Securities Exchange Act of 1934 (1934 Act) is incorporated by reference into this prospectus. To access these documents, see "SEC Filings" under "Investors Relations" on our website at www.ameriprise.com. RiverSource Life will furnish you without charge a copy of any or all of the documents incorporated by reference into this prospectus, including any exhibits to such documents which have been specifically incorporated by reference. We will do so upon receipt of your written or oral request. You can contact RiverSource Life at the telephone number and address listed on the first page of this prospectus. AVAILABLE INFORMATION This prospectus is part of a registration statement we file with the SEC. Additional information on RiverSource Life and on this offering is available in the registration statement and other materials we file. You can obtain copies of these materials at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. You can obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC. This prospectus, other information about the contract and other information incorporated by reference are available on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov). INDEMNIFICATION Insofar as indemnification for liabilities arising under the Securities Act of 1933 (1933 Act) may be permitted to directors and officers or persons controlling RiverSource Life pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the 1933 Act and is therefore unenforceable. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 87 APPENDIX A: THE FUNDS UNLESS AN ASSET ALLOCATION PROGRAM IS IN EFFECT, YOU MAY ALLOCATE PURCHASE PAYMENTS AND TRANSFERS TO ANY OR ALL OF THE SUBACCOUNTS OF THE VARIABLE ACCOUNT THAT INVEST IN SHARES OF THE FOLLOWING FUNDS:
FUND INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER AIM V.I. Capital Growth of capital. Invests principally in common A I M Advisors, Inc. Appreciation Fund, Series II stocks of companies likely to benefit from new Shares or innovative products, services or processes as well as those with above-average long-term growth and excellent prospects for future growth. The fund can invest up to 25% of its total assets in foreign securities that involve risks not associated with investing solely in the United States. AIM V.I. Capital Development Long-term growth of capital. Invests primarily A I M Advisors, Inc. Fund, Series II Shares in securities (including common stocks, convertible securities and bonds) of small- and medium-sized companies. The Fund may invest up to 25% of its total assets in foreign securities. AIM V.I. Financial Services Capital growth. Actively managed. The fund A I M Advisors, Inc. Fund, Series II Shares normally invests at least 80% of its net assets in the equity securities and equity related instruments of companies involved in the financial services sector. These companies include, but are not limited to, banks, insurance companies, investment and miscellaneous industries, and suppliers to financial services companies. The fund may invest up to 25% of its assets in securities of non-U.S. issuers. Securities of Canadian issuers and American Depositary Receipts are not subject to this 25% limitation. AIM V.I. Global Health Care Capital growth. The fund seeks to meet its A I M Advisors, Inc. Fund, Series II Shares objective by investing, normally, at least 80% of its assets in securities of health care industry companies. The fund may invest up to 20% of its total assets in companies located in developing countries, i.e., those countries that are in the initial stages of their industrial cycles. The fund may also invest up to 5% of its total assets in lower-quality debt securities, i.e., junk bonds. AIM V.I. International Long-term growth of capital. Invests primarily A I M Advisors, Inc. Growth Fund, Series II in a diversified portfolio of international Shares equity securities whose issuers are considered to have strong earnings momentum. The fund may invest up to 20% of its total assets in security issuers located in developing countries and in securities exchangeable for or convertible into equity securities of foreign companies. AllianceBernstein VPS Global Long-term growth of capital. The Fund invests at AllianceBernstein L.P. Technology Portfolio (Class least 80% of its net assets in securities of B) companies that use technology extensively in the development of new or improved products or processes. Invests in a global portfolio of securities of U.S. and foreign companies selected for their growth potential. AllianceBernstein VPS Growth Long-term growth of capital. Invests primarily AllianceBernstein L.P. and Income Portfolio (Class in the equity securities of domestic companies B) that the Advisor deems to be undervalued.
88 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
FUND INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER AllianceBernstein VPS Long-term growth of capital. Invests primarily AllianceBernstein L.P. International Value in a diversified portfolio of equity securities Portfolio (Class B) of established companies selected from more than 40 industries and from more than 40 developed and emerging market countries. AllianceBernstein VPS Large Long-term growth of capital. Invests primarily AllianceBernstein L.P. Cap Growth Portfolio (Class in equity securities of U.S. companies. Unlike B) most equity funds, the Portfolio focuses on a relatively small number of intensively researched companies. American Century VP Mid Cap Long-term capital growth with income as American Century Investment Management, Value, Class II secondary objective. Invests primarily in stocks Inc. of companies that management believes are undervalued at the time of purchase. The fund will invest at least 80% of its assets in securities of companies whose market capitalization at the time of purchase is within the capitalization range of the Russell 3000 Index, excluding the largest 100 such companies. American Century VP Long-term capital growth. Analytical research American Century Investment Management, Ultra(R), Class II tools and techniques are used to identify the Inc. stocks of larger-sized companies that appear to have the best opportunity of sustaining long-term above average growth. American Century VP Value, Long-term capital growth, with income as a American Century Investment Management, Class II secondary objective. Invests primarily in stocks Inc. of companies that management believes to be undervalued at the time of purchase. Columbia High Yield Fund, High level of current income with capital Columbia Management Advisors, LLC Variable Series, Class B appreciation as a secondary objective when consistent with the goal of high current income. The Fund normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in high yielding corporate debt securities, such as bonds, debentures and notes that are rated below investment grade, or unrated securities which the Fund's investment advisor has determined to be of comparable quality. No more than 10% of the Fund's total assets will normally be invested in securities rated CCC or lower by S&P or Caa or lower by Moody's. Columbia Marsico Growth Long-term growth of capital. The Fund invests Columbia Management Advisors, LLC Fund, Variable Series, Class primarily in equity securities of (advisor); Marsico Capital Management, A large-capitalization companies that are selected LLC (sub-advisor) for their growth potential. It generally holds a core position of between 35 and 50 common stocks. It may hold up to 25% of its assets in foreign securities. Columbia Marsico Long-term growth of capital. The Fund normally Columbia Management Advisors, LLC International Opportunities invests at least 65% of its assets in common (advisor); Marsico Capital Management, Fund, Variable Series, Class stocks of foreign companies. While the Fund may LLC (sub-advisor) B invest in companies of any size, it focuses on large companies. These companies are selected for their long-term growth potential. The Fund normally invests in issuers from at least three different countries not including the United States and generally holds a core position of 35 to 50 common stocks. The Fund may invest in common stocks of companies operating in emerging markets.
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 89
FUND INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Credit Suisse Trust - Total return. Invests in commodity-linked Credit Suisse Asset Management, LLC Commodity Return Strategy derivative instruments backed by a portfolio of Portfolio short-maturity investment-grade fixed income securities normally having an average duration of one year or less. Dreyfus Variable Investment Capital growth. To pursue this goal, the The Dreyfus Corporation, investment Fund International Equity portfolio primarily invests in growth stocks of adviser Portfolio, Service Shares foreign companies. Normally, the portfolio invests at least 80% of its assets in stocks, including common stocks, preferred stocks and convertible securities, including those purchased in initial public offering. Dreyfus Variable Investment Long-term capital growth. To pursue this goal, The Dreyfus Corporation Fund International Value the portfolio normally invests at least 80% of Portfolio, Service Shares its assets in stocks. The portfolio ordinarily invests most of its assets in securities of foreign companies which Dreyfus considers to be value companies. The portfolio's stock investments may include common stocks, preferred stocks and convertible securities, including those purchased in initial public offerings or shortly thereafter. The portfolio may invest in companies of any size. The portfolio may also invest in companies located in emerging markets. Eaton Vance VT Floating- High level of current income. Non-diversified Eaton Vance Management Rate Income Fund mutual fund that normally invests primarily in senior floating rate loans ("Senior Loans"). Senior Loans typically are of below investment grade quality and have below investment grade credit ratings, which ratings are associated with having high risk, speculative characteristics. Investments are actively managed, and may be bought or sold on a daily basis (although loans are generally held until repaid). The investment adviser's staff monitors the credit quality of the Fund holdings, as well as other investments that are available. The Fund may invest up to 25% of its total assets in foreign securities and may engage in certain hedging transactions. Evergreen VA Fundamental Capital growth with the potential for current Evergreen Investment Management Large Cap Fund - Class 2 income. Invests primarily in common stocks of Company, LLC large U.S. companies whose market capitalizations measured at time of purchase fall within the market capitalization range of the companies tracked by the Russell 1000(R) Index. Evergreen VA International Long-term capital growth, with modest income as Evergreen Investment Management Equity Fund - Class 2 a secondary objective. The Fund seeks to achieve Company, LLC its goal by investing primarily in equity securities issued by established, quality non-U.S. companies located in countries with developed markets and may purchase securities across all market capitalizations. The Fund may also invest in emerging markets. Fidelity(R) VIP Long-term capital appreciation. Normally invests Fidelity Management & Research Company Contrafund(R) Portfolio primarily in common stocks. Invests in (FMR), investment manager; FMR U.K. and Service Class 2 securities of companies whose value it believes FMR Far East, sub-investment advisers. is not fully recognized by the public. Invests in either "growth" stocks or "value" stocks or both. The fund invests in domestic and foreign issuers.
90 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
FUND INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Fidelity(R) VIP Mid Cap Long-term growth of capital. Normally invests FMR, investment manager; FMR U.K., FMR Portfolio Service Class 2 primarily in common stocks. Normally invests at Far East, sub-investment advisers. least 80% of assets in securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations. Invests in domestic and foreign issuers. The Fund invests in either "growth" or "value" common stocks or both. Fidelity(R) VIP Overseas Long-term growth of capital. Normally invests FMR, investment manager; FMR U.K., FMR Portfolio Service Class 2 primarily in common stocks of foreign Far East, Fidelity International securities. Normally invests at least 80% of Investment Advisors (FIIA) and FIIA assets in non-U.S. securities. U.K., sub-investment advisers. FTVIPT Franklin Global Real High total return. The Fund normally invests at Franklin Templeton Institutional, LLC Estate Securities least 80% of its net assets in investments of Fund - Class 2 companies located anywhere in the world that operate in the real estate sector. (previously FTVIPT Franklin Real Estate Fund - Class 2) FTVIPT Franklin Small Cap Long-term total return. The Fund normally Franklin Advisory Services, LLC Value Securities invests at least 80% of its net assets in Fund - Class 2 investments of small capitalization companies, and normally invests predominantly in equity securities. The Fund invests mainly in equity securities of companies that the manager believes are undervalued. FTVIPT Mutual Shares Capital appreciation, with income as a secondary Franklin Mutual Advisers, LLC Securities Fund - Class 2 goal. The Fund normally invests primarily in equity securities of companies that the manager believes are undervalued. The Fund also invests, to a lesser extent, in risk arbitrage securities and distressed companies.
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 91
FUND INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Goldman Sachs VIT Structured Long-term growth of capital and dividend income. Goldman Sachs Asset Management, L.P. U.S. Equity The Fund invests, under normal circumstances, at Fund - Institutional Shares least 90% of its total assets (not including securities lending collateral and any investment of that collateral) measured at time of purchase ("Total Assets") in a diversified portfolio of equity investments in U.S. issuers, including foreign companies that are traded in the United States. However, it is currently anticipated that, under normal circumstances, the Fund will invest at least 95% of its net assets plus any borrowings for investment purposes (measured at the time of purchase) in such equity investments. The Fund's investments are selected using both a variety of quantitative techniques and fundamental research in seeking to maximize the Fund's expected return, while maintaining risk, style, capitalization and industry characteristics similar to the S&P 500 Index. The Fund seeks a broad representation in most major sectors of the U.S. economy and a portfolio consisting of companies with average long-term earnings growth expectations and dividend yields. The Fund is not required to limit its investments to securities in the S&P 500 Index. The Fund's investments in fixed-income securities are limited to securities that are considered cash equivalents. Janus Aspen Series Large Cap Long-term growth of capital in a manner Janus Capital Growth Portfolio: Service consistent with the preservation of capital. Shares Invests under normal circumstances at least 80% of its net assets in common stocks of large-sized companies. Large-sized companies are those whose market capitalization falls within the range of companies in the Russell 1000(R) Index at the time of purchase. Legg Mason Partners Variable Long-term growth of capital. Under normal Legg Mason Partners Fund Advisor, LLC, Small Cap Growth Portfolio, circumstances, the fund invests at least 80% of adviser; ClearBridge Advisors, LLC, Class I its net assets in equity securities of companies subadviser with small market capitalizations and related Legg Mason Partners Variable investments. Small Cap Growth Portfolio, Class II merged into this fund on April 27, 2007. MFS(R) Investors Growth Capital appreciation. Normally invests at least MFS Investment Management(R) Stock Series - Service Class 80% of the fund's net assets in equity securities of companies MFS believes to have above average earnings growth potential compared to other companies (growth companies). MFS(R) Total Return Series Total return. Invests primarily in equity and MFS Investment Management(R) - Service Class fixed income securities. MFS invests between 40% and 75% of the fund's net assets in equity securities and at least 25% of the fund's total assets in fixed-income senior securities. MFS(R) Utilities Series - Total return. Normally invests at least 80% of MFS Investment Management(R) Service Class the fund's net assets in securities of issuers in the utilities industry.
92 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
FUND INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Neuberger Berman Advisers Long-term growth of capital. The Fund invests Neuberger Berman Management Inc. Management Trust mainly in foreign companies of any size, International Portfolio including companies in developed and emerging (Class S) industrialized markets. The Fund defines a foreign company as one that is organized outside of the United States and conducts the majority of its business abroad. The Fund seeks to reduce risk by diversifying among many industries. Although it has the flexibility to invest a significant portion of its assets in one country or region, it generally intends to remain well- diversified across countries and geographical regions. Neuberger Berman Advisers Long-term growth of capital. The Fund invests Neuberger Berman Management Inc. Management Trust Socially mainly in common stocks of mid- to Responsive Portfolio (Class large-capitalization companies. The Fund seeks S) to reduce risk by investing across many different industries. The Portfolio Managers employ a research driven and valuation sensitive approach to stock selection. They seek to identify stocks in well-positioned businesses that they believe are undervalued in the market. They look for solid balance sheets, strong management teams with a track record of success, good cash flow, the prospect for above average earnings growth and other valuation related factors. Oppenheimer Global Long-term capital appreciation. Invests mainly OppenheimerFunds, Inc. Securities Fund/VA, Service in common stocks of U.S. and foreign issuers Shares that are "growth-type" companies, cyclical industries and special situations that are considered to have appreciation possibilities. Oppenheimer Main Street Capital appreciation. Invests mainly in common OppenheimerFunds, Inc. Small Cap Fund/VA, Service stocks of small-capitalization U.S. companies Shares that the fund's investment manager believes have favorable business trends or prospects. Oppenheimer Strategic Bond High level of current income principally derived OppenheimerFunds, Inc. Fund/VA, Service Shares from interest on debt securities. Invests mainly in three market sectors: debt securities of foreign governments and companies, U.S. government securities and lower-rated high yield securities of U.S. and foreign companies. Oppenheimer Value Fund/ VA, Long-term growth of capital with realization of OppenheimerFunds, Inc. Service Shares current income as a secondary consideration. Invests mainly in common stocks of different capitalization ranges and currently emphasizes large capitalization stocks.
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 93
FUND INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER PIMCO VIT All Asset Maximum real return consistent with preservation Pacific Investment Management Company Portfolio, Advisor Share of real capital and prudent investment LLC Class management period. The Portfolio seeks to achieve its investment objective by investing under normal circumstances substantially all of its assets in Institutional Class shares of the PIMCO Funds, an affiliated open-end investment company, except the All Asset and All Asset All Authority Funds ("Underlying Funds"). Though it is anticipated that the Portfolio will not currently invest in the European StockPLUS(R) TR Strategy, Far East (ex-Japan) StocksPLUS(R) TR Strategy, Japanese StocksPLUS(R) TR Strategy, StocksPLUS(R) Municipal-Backed and StocksPLUS(R) TR Short Strategy Funds, the Portfolio may invest in these Funds in the future, without shareholder approval, at the discretion of the Portfolio's asset allocation sub-adviser. RiverSource Variable Maximum total investment return through a RiverSource Investments, LLC Portfolio - Balanced Fund combination of capital growth and current income. Invests primarily in a combination of common and preferred stocks, bonds and other debt securities. Under normal market conditions, at least 50% of the Fund's total assets are invested in common stocks and no less than 25% of the Fund's total assets are invested in debt securities. The Fund may invest up to 25% of its total assets in foreign investments. RiverSource Variable Maximum current income consistent with liquidity RiverSource Investments, LLC Portfolio - Cash Management and stability of principal. Invests primarily in Fund money market instruments, such as marketable debt obligations issued by corporations or the U.S. government or its agencies, bank certificates of deposit, bankers' acceptances, letters of credit and commercial paper, including asset-backed commercial paper. RiverSource Variable High total return through current income and RiverSource Investments, LLC Portfolio - Core Bond Fund capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and other debt securities. Although the Fund is not an index fund, it invests primarily in securities like those included in the Lehman Brothers Aggregate Bond Index ("the Index"), which are investment grade and denominated in U.S. dollars. The Index includes securities issued by the U.S. government, corporate bonds, and mortgage- and asset-backed securities. The Fund will not invest in securities rated below investment grade, although it may hold securities that have been downgraded.
94 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
FUND INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RiverSource Variable High level of current income while attempting to RiverSource Investments, LLC Portfolio - Diversified Bond conserve the value of the investment for the Fund longest period of time. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and other debt securities. At least 50% of the Fund's net assets will be invested in securities like those included in the Lehman Brothers Aggregate Bond Index (Index), which are investment grade and denominated in U.S. dollars. The Index includes securities issued by the U.S. government, corporate bonds, and mortgage- and asset-backed securities. Although the Fund emphasizes high- and medium-quality debt securities, it will assume some credit risk to achieve higher yield and/or capital appreciation by buying lower-quality (junk) bonds. RiverSource Variable High level of current income and, as a secondary RiverSource Investments, LLC Portfolio - Diversified goal, steady growth of capital. Under normal Equity Income Fund market conditions, the Fund invests at least 80% of its net assets in dividend-paying common and preferred stocks. The Fund may invest up to 25% of its total assets in foreign investments. RiverSource Variable Long-term capital growth. The Fund's assets are RiverSource Investments, LLC, adviser; Portfolio - Emerging Markets primarily invested in equity securities of Threadneedle International Limited, an Fund emerging market companies. Under normal market indirect wholly-owned subsidiary of conditions, at least 80% of the Fund's net Ameriprise Financial, subadviser. assets will be invested in securities of companies that are located in emerging market countries, or that earn 50% or more of their total revenues from goods and services produced in emerging market countries or from sales made in emerging market countries. RiverSource Variable Long-term capital growth. The Fund's assets are RiverSource Investments, LLC, adviser; Portfolio - Fundamental primarily invested in equity securities of U.S. Davis Selected Advisers, L.P., Value Fund companies. Under normal market conditions, the subadviser. Fund's net assets will be invested primarily in companies with market capitalizations of at least $5 billion at the time of the Fund's investment. RiverSource Variable High total return through income and growth of RiverSource Investments, LLC Portfolio - Global Bond Fund capital. Non-diversified mutual fund that invests primarily in debt obligations of U.S. and foreign issuers. Under normal market conditions, the Fund invests at least 80% of its net assets in investment-grade corporate or government debt obligations including money market instruments of issuers located in at least three different countries. RiverSource Variable Total return that exceeds the rate of inflation RiverSource Investments, LLC Portfolio - Global Inflation over the long-term. Non-diversified mutual fund Protected Securities Fund that, under normal market conditions, invests at least 80% of its net assets in inflation-protected debt securities. These securities include inflation-indexed bonds of varying maturities issued by U.S. and foreign governments, their agencies or instrumentalities and corporations.
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 95
FUND INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RiverSource Variable Long-term capital growth. Invests primarily in RiverSource Investments, LLC Portfolio - Growth Fund common stocks and securities convertible into common stocks that appear to offer growth opportunities. These growth opportunities could result from new management, market developments or technological superiority. The Fund may invest up to 25% of its total assets in foreign investments. RiverSource Variable High current income, with capital growth as a RiverSource Investments, LLC Portfolio - High Yield Bond secondary objective. Under normal market Fund conditions, the Fund invests at least 80% of its net assets in high-yielding, high-risk corporate bonds (junk bonds) issued by U.S. and foreign companies and governments. RiverSource Variable High total return through current income and RiverSource Investments, LLC Portfolio - Income capital appreciation. Under normal market Opportunities Fund conditions, invests primarily in income-producing debt securities with an emphasis on the higher rated segment of the high-yield (junk bond) market. The Fund will purchase only securities rated B or above, or unrated securities believed to be of the same quality. If a security falls below a B rating, the Fund may continue to hold the security. RiverSource Variable Capital appreciation. Invests primarily in RiverSource Investments, LLC, adviser; Portfolio - International equity securities of foreign issuers that are Threadneedle International Limited, an Opportunity Fund believed to offer strong growth potential. The indirect wholly-owned subsidiary of Fund may invest in developed and in emerging Ameriprise Financial, subadviser. markets. RiverSource Variable Capital appreciation. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Equity conditions, the Fund invests at least 80% of its Fund net assets in equity securities of companies with market capitalization greater than $5 billion at the time of purchase. RiverSource Variable Long-term growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Large Cap Value conditions, the Fund invests at least 80% of its Fund net assets in equity securities of companies with a market capitalization greater than $5 billion. The Fund may also invest in income-producing equity securities and preferred stocks. RiverSource Variable Growth of capital. Under normal market RiverSource Investments, LLC Portfolio - Mid Cap Growth conditions, the Fund invests at least 80% of its Fund net assets at the time of purchase in equity securities of mid capitalization companies. The investment manager defines mid-cap companies as those whose market capitalization (number of shares outstanding multiplied by the share price) falls within the range of the Russell Midcap(R) Growth Index. RiverSource Variable Long-term growth of capital. Under normal RiverSource Investments, LLC Portfolio - Mid Cap Value circumstances, the Fund invests at least 80% of Fund its net assets (including the amount of any borrowings for investment purposes) in equity securities of medium-sized companies. Medium-sized companies are those whose market capitalizations at the time of purchase fall within the range of the Russell Midcap(R) Value Index.
96 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
FUND INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER RiverSource Variable Long-term capital appreciation. The Fund seeks RiverSource Investments, LLC Portfolio - S&P 500 Index to provide investment results that correspond to Fund the total return (the combination of appreciation and income) of large-capitalization stocks of U.S. companies. The Fund invests in common stocks included in the Standard & Poor's 500 Composite Stock Price Index (S&P 500). The S&P 500 is made up primarily of large-capitalization companies that represent a broad spectrum of the U.S. economy. RiverSource Variable Long-term growth of capital. Invests primarily RiverSource Investments, LLC, adviser; Portfolio - Select Value in equity securities of mid cap companies as Systematic Financial Management, L.P. Fund well as companies with larger and smaller market and WEDGE Capital Management L.L.P., capitalizations. The Fund considers mid-cap subadvisers companies to be either those with a market capitalization of up to $10 billion or those whose market capitalization falls within range of the Russell 3000(R) Value Index. RiverSource Variable High level of current income and safety of RiverSource Investments, LLC Portfolio - Short Duration principal consistent with investment in U.S. U.S. Government Fund government and government agency securities. Under normal market conditions, at least 80% of the Fund's net assets are invested in securities issued or guaranteed as to principal and interest by the U.S. government, its agencies or instrumentalities. RiverSource Variable Long-term capital growth. Under normal market RiverSource Investments, LLC, adviser; Portfolio - Small Cap conditions, at least 80% of the Fund's net Kenwood Capital Management LLC, Advantage Fund assets are invested in equity securities of subadviser companies with market capitalization of up to $2 billion or that fall within the range of the Russell 2000(R) Index at the time of investment. RiverSource Variable Long-term capital appreciation. Under normal RiverSource Investments, LLC, adviser; Portfolio - Small Cap Value market conditions, at least 80% of the Fund's River Road Asset Management, LLC, Fund net assets will be invested in small cap Donald Smith & Co., Inc., Franklin companies with market capitalization, at the Portfolio Associates LLC and Barrow, time of investment, of up to $2.5 billion or Hanley, Mewhinney & Strauss, Inc., that fall within the range of the Russell subadvisers. 2000(R) Value Index. Van Kampen Life Investment Capital growth and income through investments in Van Kampen Asset Management Trust Comstock Portfolio, equity securities, including common stocks, Class II Shares preferred stocks and securities convertible into common and preferred stocks. The Portfolio emphasizes value style of investing seeking well-established, undervalued companies believed by the Portfolio's investment adviser to posses the potential for capital growth and income. Van Kampen UIF Global Real Current income and capital appreciation. Invests Morgan Stanley Investment Management Estate Portfolio, Class II primarily in equity securities of companies in Inc., doing business as Van Kampen, Shares the real estate industry located throughout the adviser; Morgan Stanley Investment world, including real estate operating Management Limited and Morgan Stanley companies, real estate investment trusts and Investment Management Company, foreign real estate companies. sub-advisers
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 97
FUND INVESTMENT OBJECTIVE AND POLICIES INVESTMENT ADVISER Van Kampen UIF Mid Cap Long-term capital growth. Invests primarily in Morgan Stanley Investment Management Growth Portfolio, Class II growth-oriented equity securities of U.S. mid Inc., doing business as Van Kampen. Shares cap companies and foreign companies, including emerging market securities. Wanger International Small Long-term growth of capital. Invests primarily Columbia Wanger Asset Management, L.P. Cap in stocks of companies based outside the U.S. with market capitalizations of less than $5 billion at time of initial purchase. Wanger U.S. Smaller Long-term growth of capital. Invests primarily Columbia Wanger Asset Management, L.P. Companies in stocks of small- and medium-size U.S. companies with market capitalizations of less than $5 billion at time of initial purchase. Wells Fargo Advantage VT Long-term capital appreciation. Invests Wells Fargo Funds Management, LLC, Opportunity Fund principally in equity securities of adviser; Wells Capital Management medium-capitalization companies, defined as Incorporated, subadviser. those within the range of market capitalizations of companies in the Russell Midcap(R) Index. We reserve the right to hedge the portfolio's foreign currency exposure by purchasing or selling currency futures and foreign currency forward contracts. However, under normal circumstances, we will not engage in extensive foreign currency hedging. Wells Fargo Advantage VT Long-term capital appreciation. Invests Wells Fargo Funds Management, LLC, Small Cap Growth Fund principally in equity securities of adviser; Wells Capital Management small-capitalization companies that we believe Incorporated, subadviser. have above-average growth potential. We define small-capitalization companies as those with market capitalizations at the time of purchase of less than $2 billion.
98 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS APPENDIX B: EXAMPLE -- MARKET VALUE ADJUSTMENT (MVA) AS THE EXAMPLES BELOW DEMONSTRATE, THE APPLICATION OF AN MVA MAY RESULT IN EITHER A GAIN OR A LOSS OF PRINCIPAL. WE REFER TO ALL OF THE TRANSACTIONS DESCRIBED BELOW AS "EARLY SURRENDERS." THE EXAMPLES MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, GPAS, SPECIAL DCA FIXED ACCOUNT, REGULAR FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. GENERAL EXAMPLES ASSUMPTIONS: - You purchase a contract and allocate part of your purchase payment to the ten-year GPA; and - we guarantee an interest rate of 3.0% annually for your ten-year Guarantee Period; and - after three years, you decide to make a surrender from your GPA. In other words, there are seven years left in your guarantee period. Remember that the MVA depends partly on the interest rate of a new GPA for the same number of years as the Guarantee Period remaining on your GPA. In this case, that is seven years. EXAMPLE 1: Remember that your GPA is earning 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 3.5%. We add 0.10% to the 3.5% rate to get 3.6%. Your GPA's 3.0% rate is less than the 3.6% rate so the MVA will be negative. EXAMPLE 2: Remember again that your GPA is earning 3.0%, and assume that new GPAs that we offer with a seven-year Guarantee Period are earning 2.5%. We add 0.10% to the 2.5% rate to get 2.6%. In this example, since your GPA's 3.0% rate is greater than the 2.6% rate, the MVA will be positive. To determine that adjustment precisely, you will have to use the formula described below. SAMPLE MVA CALCULATIONS The precise MVA formula we apply is as follows: 1 + I EARLY WITHDRAWAL AMOUNT (x) (LOGO) -------------- (LOGO)(N/12) - 1 (LOGO) = MVA 1 + J + .001
Where i = rate earned in the GPA from which amounts are being transferred or surrendered. j = current rate for a new Guaranteed Period equal to the remaining term in the current Guarantee Period (rounded up to the next year). n = number of months remaining in the current Guarantee Period (rounded up to the next month).
EXAMPLES -- MVA Using assumptions similar to those we used in the examples above: - You purchase a contract and allocate part of your purchase payment to the ten-year GPA; and - we guarantee an interest rate of 3.0% annually for your ten-year Guarantee Period; and - after three years, you decide to make a $1,000 surrender from your GPA. In other words, there are seven years left in your guarantee period. EXAMPLE 1: You request an early surrender of $1,000 from your ten-year GPA earning a guaranteed interest rate of 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 3.5%. Using the formula above, we determine the MVA as follows: 1.030 $1,000 (x) (LOGO) --------------- (LOGO)(84/12) - 1 (LOGO) = -$39.84 1 + .035 + .001
In this example, the MVA is a negative $39.84. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 99 EXAMPLE 2: You request an early surrender of $1,000 from your ten-year GPA earning a guaranteed interest rate of 3.0%. Assume at the time of your surrender new GPAs that we offer with a seven-year Guarantee Period are earning 2.5%. Using the formula above, we determine the MVA as follows: 1.030 $1,000 (x) (LOGO) --------------- (LOGO)(84/12) - 1 (LOGO) = $27.61 1 + .025 + .001
In this example, the MVA is a positive $27.61. We do not apply MVAs to the amounts we deduct for surrender charges, so we would deduct the surrender charge from your early surrender after we applied the MVA. Also note that when you request an early surrender, we surrender an amount from your GPA that will give you the net amount you requested after we apply the MVA and any applicable surrender charge, unless you request otherwise. The current interest rate we offer on the GPA will change periodically at our discretion. It is the rate we are then paying on purchase payments, renewals and transfers paid under this class of contracts for Guarantee Period durations equaling the remaining Guarantee Period of the GPA to which the formula is being applied. 100 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS APPENDIX C: EXAMPLE -- SURRENDER CHARGES THE PURPOSE OF THIS APPENDIX IS TO ILLUSTRATE THE VARIOUS SURRENDER CHARGE CALCULATIONS. THE EXAMPLES MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, GPAS, SPECIAL DCA FIXED ACCOUNT, REGULAR FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. FULL SURRENDER CHARGE CALCULATION -- TEN-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a full surrender on a RAVA 4 Advantage contract with a ten-year surrender charge schedule with the following history: - we receive a single $100,000 purchase payment; and - you surrender the contract for its total value during the fourth contract year. The surrender charge percentage is 7.0%; and - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS:
-------------------------------------------------------------------------------------------------------------------------- CONTRACT CONTRACT WITH GAIN WITH LOSS Contract Value at time of full surrender: $120,000.00 $80,000.00 Contract Value on prior anniversary: 115,000.00 85,000.00 STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's contract value: 11,500.00 8,500.00 ----------- ---------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the TFA that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered Free (PPF): 0.00 8,500.00 STEP 3. We calculate the Premium Ratio (PR): PR = [WD-TFA] / [CV-TFA] WD = 120,000.00 80,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of the surrender PR = 100% 100% = the premium ratio STEP 4. We calculate Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP-PPF) PR = 100% 100% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 100,000.00 91,500.00 STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 100,000.00 91,500.00 Surrender Charge Percentage: 7% 7% Surrender Charge: 7,000.00 6,405.00 STEP 6. We calculate the Net Surrender Value: 120,000.00 80,000.00 Contract Value Surrendered: (7,000.00) (6,405.00) Contract Charge (assessed upon full surrender): (30.00) (30.00) Net Full Surrender Proceeds: 112,970.00 73,565.00
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 101 PARTIAL SURRENDER CHARGE CALCULATION -- TEN-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a partial surrender on a RAVA 4 Advantage contract with a ten-year surrender charge schedule with the following history: - we receive a single $100,000 purchase payment; and - you request a partial surrender of $50,000 during the fourth contract year. The surrender charge percentage is 7.0%; and - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS:
-------------------------------------------------------------------------------------------------------------------------- CONTRACT CONTRACT WITH GAIN WITH LOSS Contract Value at time of partial surrender: $120,000.00 $80,000.00 Contract Value on prior anniversary: 115,000.00 85,000.00 STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's contract value: 11,500.00 8,500.00 ----------- ---------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the TFA that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered Free (PPF): 0.00 8,500.00 STEP 3. We calculate the Premium Ratio (PR): PR = [WD-TFA] / [CV-TFA] WD = 50,000.00 50,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of surrender PR = 30% 58% = the premium ratio STEP 4. We calculate the Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP-PPF) PR = 30% 58% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 30,000.00 53,108.39 = chargeable purchase payments being surrendered STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 30,000.00 53,108.39 Surrender Charge Percentage: 7% 7% Surrender Charge: 2,100 3,718 STEP 6. We calculate the Net Surrender Value: Contract Value Surrendered: 50,000.00 50,000.00 Surrender Charge: (2,100.00) (3,717.59) Net Full Surrender Proceeds: 47,900.00 46,282.41
102 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS FULL SURRENDER CHARGE CALCULATION -- THREE-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a full surrender on a RAVA 4 Select contract with a three-year surrender charge schedule with the following history: - we receive a single $100,000 purchase payment; and - you surrender the contract for its total value during the second contract year. The surrender charge percentage is 7.0%; and - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS:
-------------------------------------------------------------------------------------------------------------------------- CONTRACT CONTRACT WITH GAIN WITH LOSS Contract Value at time of full surrender: $120,000.00 $80,000.00 Contract Value on prior anniversary: 115,000.00 85,000.00 STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the Contract: 20,000.00 0.00 10% of the prior anniversary's contract value: 11,500.00 8,500.00 ----------- ---------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the TFA and Amount Free that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered Free (PPF): 0.00 8,500.00 STEP 3. We calculate the Premium Ratio (PR): PR = [WD-TFA] / [CV-TFA] WD = 120,000.00 80,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of the surrender PR = 100% 100% STEP 4. We calculate Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP-PPF) PR = 100% 100% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 100,000.00 91,500.00 STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 100,000.00 91,500.00 Surrender Charge Percentage: 7% 7% Surrender Charge: 7,000.00 6,405.00 STEP 6. We calculate the Net Surrender Value: 120,000.00 80,000.00 Contract Value Surrendered: (7,000.00) (6,405.00) Contract Charge (assessed upon full surrender): (30.00) (30.00) Net Full Surrender Proceeds: 112,970.00 73,565.00
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 103 PARTIAL SURRENDER CHARGE CALCULATION -- THREE-YEAR SURRENDER CHARGE SCHEDULE: This is an example of how we calculate the surrender charge for a partial surrender on a RAVA 4 Select contract with a three-year surrender charge schedule with the following history: - we receive a single $100,000 purchase payment; and - you request a partial surrender of $50,000 during the second contract year. The surrender charge percentage is 7.0%; and - you have made no prior partial surrenders. WE WILL LOOK AT TWO SITUATIONS, ONE WHERE THE CONTRACT HAS A GAIN AND ANOTHER WHERE THERE IS A LOSS:
-------------------------------------------------------------------------------------------------------------------------- CONTRACT CONTRACT WITH GAIN WITH LOSS Contract Value at time of partial surrender: $120,000.00 $80,000.00 Contract Value on prior anniversary: 115,000.00 85,000.00 STEP 1. We determine the Total Free Amount (TFA) available in the contract as the greatest of the earnings or 10% of the prior anniversary value: Earnings in the contract: 20,000.00 0.00 10% of the prior anniversary's contract value: 11,500.00 8,500.00 ----------- ---------- Total Free Amount: 20,000.00 8,500.00 STEP 2. We determine the Amount Free that is from Purchase Payments: Total Free Amount: 20,000.00 8,500.00 Earnings in the contract: 20,000.00 0.00 Purchase Payments being Surrendered Free (PPF): 0.00 8,500.00 STEP 3. We calculate the Premium Ratio (PR): PR = [WD-TFA] / [CV-TFA] WD = 50,000.00 50,000.00 = the amount of the surrender TFA = 20,000.00 8,500.00 = the total free amount, step 1 CV = 120,000.00 80,000.00 = the contract value at the time of surrender PR = 30% 58% = the premium ratio STEP 4. We calculate the Chargeable Purchase Payments being Surrendered (CPP): CPP = PR X (PP -- PPF) PR = 30% 58% = premium ratio, step 3 PP = 100,000.00 100,000.00 = purchase payments not previously surrendered PPF = 0.00 8,500.00 = purchase payments being surrendered free, step 2 CPP = 30,000.00 53,108.39 = chargeable purchase payments being surrendered STEP 5. We calculate the Surrender Charges: Chargeable Purchase Payments: 30,000.00 53,108.39 Surrender Charge Percentage: 7% 7% Surrender Charge: 2,100 3,718 STEP 6. We calculate the Net Surrender Value: Contract Value Surrendered: 50,000.00 50,000.00 Surrender Charge: (2,100.00) (3,717.00) Net Full Surrender Proceeds: 47,900.00 46,282.41
104 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS APPENDIX D: EXAMPLE -- OPTIONAL DEATH BENEFITS THE PURPOSE OF THIS APPENDIX IS TO ILLUSTRATE THE OPERATION OF VARIOUS OPTIONAL DEATH BENEFIT RIDERS. IN ORDER TO DEMONSTRATE THESE CONTRACT RIDERS, AN EXAMPLE MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, GPAS, SPECIAL DCA FIXED ACCOUNT, REGULAR FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. THE EXAMPLES OF THE OPTIONAL DEATH BENEFITS IN APPENDIX INCLUDE PARTIAL SURRENDERS TO ILLUSTRATE THE EFFECT OF PARTIAL SURRENDERS ON THE PARTICULAR BENEFIT. THESE EXAMPLES ARE INTENDED TO SHOW HOW THE OPTIONAL DEATH BENEFITS OPERATE, AND DO NOT TAKE INTO ACCOUNT WHETHER A PARTICULAR OPTIONAL DEATH BENEFIT IS PART OF A QUALIFIED ANNUITY. QUALIFIED ANNUITIES ARE SUBJECT TO RMDS AT CERTAIN AGES (SEE "TAXES -- QUALIFIED ANNUITIES -- REQUIRED MINIMUM DISTRIBUTIONS") WHICH MAY REQUIRE YOU TO TAKE PARTIAL SURRENDERS FROM THE CONTRACT. IF YOU ARE CONSIDERING THE ADDITION OF CERTAIN DEATH BENEFITS TO A QUALIFIED ANNUITY, YOU SHOULD CONSULT YOUR TAX ADVISOR PRIOR TO MAKING A PURCHASE FOR AN EXPLANATION OF THE POTENTIAL TAX IMPLICATION TO YOU. EXAMPLE -- ROPP DEATH BENEFIT - You purchase the contract (with the ROPP rider) with a payment of $20,000. - The contract value falls to $18,000, at which point you take a $1,500 partial surrender, leaving a contract value of $16,500. We calculate the death benefit as follows: The total purchase payments minus adjustments for partial surrenders: Total purchase payments $20,000 minus adjusted partial surrenders, calculated as: $1,500 X $20,000 ----------------- = -1,667 $18,000 -------- for a death benefit of: $18,333
EXAMPLE -- MAV DEATH BENEFIT - You purchase the contract (with the MAV rider) with a payment of $20,000. - On the first contract anniversary the contract value grows to $24,000. - During the second contract year the contract value falls to $22,000, at which point you take a $1,500 partial surrender, leaving a contract value of $20,500. We calculate the death benefit as follows: The maximum anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your contract anniversary contract values: $24,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: $1,500 X $24,000 ----------------- = -1,636 $22,000 -------- for a death benefit of: $22,364
EXAMPLE -- 5-YEAR MAV DEATH BENEFIT - You purchase the contract (with the 5-Year MAV rider) with a payment of $20,000. - On the fifth contract anniversary the contract value grows to $30,000. - During the sixth contract year the contract value falls to $25,000, at which point you take a $1,500 partial surrender, leaving a contract value of $23,500. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 105 We calculate the death benefit as follows: The maximum 5-year anniversary value immediately preceding the date of death plus any payments made since that anniversary minus adjusted partial surrenders: Greatest of your 5-year contract anniversary contract values: $30,000 plus purchase payments made since that anniversary: +0 minus adjusted partial surrenders, calculated as: $1,500 X $30,000 ----------------- = -1,800 $25,000 -------- for a death benefit of: $28,200
EXAMPLE -- EEB DEATH BENEFIT - You purchase the contract with a payment of $100,000 and you are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEB. - During the first contract year the contract value grows to $105,000. The death benefit equals the standard death benefit, which is the contract value less purchase payment credits reversed, or $104,000. You have not reached the first contract anniversary so the EEB does not provide any additional benefit at this time. - On the first contract anniversary the contract value grows to $110,000. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEB which equals 40% of earnings at death (MAV death benefit amount minus payments not previously surrendered): 0.40 X ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEB (40% of earnings at death): 0.40 X ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $48,025. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): $110,000 - ($50,000 x $110,000) --------------------- = $105,000 $57,619 plus the EEB (40% of earnings at death): 0.40 X ($57,619 - $55,000) = +1,048 -------- Total death benefit of: $58,667
- On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $58,667. The reduction in contract value has no effect. - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEB (40% of earnings at death) 0.40 X 2.50 X ($55,000) = +55,000 -------- Total death benefit of: $255,000
106 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS - During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,500. The new purchase payment is less than one year old and so it has no effect on the EEB. The death benefit equals: MAV death benefit amount (contract value less purchase payment credits reversed): $250,000 plus the EEB (40% of earnings at death) 0.40 X 2.50 X ($55,000) = +55,000 -------- Total death benefit of: $305,000
- During the eleventh contract year the contract value remains $250,500 and the "new" purchase payment is now one year old. The value of the EEB changes. The death benefit equals: MAV death benefit amount (contract value): $250,500 plus the EEB which equals 40% of earnings at death (the standard death benefit amount minus payments not previously surrendered): 0.40 X ($250,500 - $105,000) = +58,200 -------- Total death benefit of: $308,700
EXAMPLE -- EEP DEATH BENEFIT - You purchase the contract with an exchange purchase payment of $100,000 and you are under age 70. You select the seven-year surrender charge schedule, the MAV and the EEP. - During the first contract year the contract value grows to $105,000. The death benefit on equals the standard death benefit amount, which is the contract value less purchase payment credits reversed, or $104,000. You have not reached the first contract anniversary so neither the EEP Part I nor Part II provides any additional benefit at this time. - On the first contract anniversary the contract value grows to $110,000. You have not reached the second contract anniversary so the EEP Part II does not provide any additional benefit at this time. The death benefit equals: MAV death benefit amount (contract value): $110,000 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit amount minus purchase payments not previously surrendered): 0.40 X ($110,000 - $100,000) = +4,000 -------- Total death benefit of: $114,000
- On the second contract anniversary the contract value falls to $105,000. The death benefit equals: MAV death benefit amount (maximum anniversary value): $110,000 plus the EEP Part I (40% of earnings at death): 0.40 X ($110,000 - $100,000) = +4,000 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 X $100,000 = +10,000 -------- Total death benefit of: $124,000
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 107 - During the third contract year the contract value remains at $105,000 and you request a partial surrender, including the applicable 7% surrender charge, of $50,000. We will surrender $10,500 from your contract value free of charge (10% of your prior anniversary's contract value). The remainder of the surrender is subject to a 7% surrender charge because your purchase payment is two years old, so we will surrender $39,500 ($36,735 + $2,765 in surrender charges) from your contract value. Altogether, we will surrender $50,000 and pay you $47,235. We calculate purchase payments not previously surrendered as $100,000 - $45,000 = $55,000 (remember that $5,000 of the partial surrender is contract earnings). The death benefit equals: MAV death benefit amount (maximum anniversary value adjusted for partial surrenders): $110,000 - ($50,000 X $110,000) --------------------- = $105,000 $57,619 plus the EEP Part I (40% of earnings at death): 0.40 X ($57,619 - $55,000) = +1,048 plus the EEP Part II which in the third contract year equals 10% of exchange purchase payments identified at issue and not previously surrendered: 0.10 X $55,000 = +5,500 -------- Total death benefit of: $64,167
- On the third contract anniversary the contract value falls by $40,000. The death benefit remains at $64,167. The reduction in contract value has no effect. - On the ninth contract anniversary the contract value grows to a new high of $200,000. Earnings at death reaches its maximum of 250% of purchase payments not previously surrendered that are one or more years old. Because we are beyond the fourth contract anniversary the EEP also reaches its maximum of 20%. The death benefit equals: MAV death benefit amount (contract value): $200,000 plus the EEP Part I (40% of earnings at death) .40 X (2.50 X $55,000) = +55,000 plus the EEP Part II which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 x $55,000 = +11,000 -------- Total death benefit of: $266,000
- During the tenth contract year you make an additional purchase payment of $50,000 and your contract value grows to $250,500. The new purchase payment is less than one year old and so it has no effect on either the EEP Part I or EEP Part II. The death benefit equals: MAV death benefit amount (contract value less purchase payment credits reversed): $250,000 plus the EEP Part I (40% of earnings at death) .40 X (2.50 X $55,000) = +55,000 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 X $55,000 = +11,000 -------- Total death benefit of: $316,000
- During the eleventh contract year the contract value remains $250,500 and the "new" purchase payment is now one year old. The value of the EEP Part I changes but the value of the EEP Part II remains constant. The death benefit equals: MAV death benefit amount (contract value): $250,500 plus the EEP Part I which equals 40% of earnings at death (the MAV death benefit minus payments not previously surrendered): 0.40 x ($250,500 - $105,000) = +58,200 plus the EEP Part II, which after the fourth contract year equals 20% of exchange purchase payments identified at issue and not previously surrendered: 0.20 X $55,000 = +11,000 -------- Total death benefit of: $319,700
108 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS APPENDIX E: EXAMPLE -- OPTIONAL LIVING BENEFITS THE PURPOSE OF THIS APPENDIX IS TO ILLUSTRATE THE OPERATION OF VARIOUS OPTIONAL LIVING BENEFIT RIDERS. IN ORDER TO DEMONSTRATE THESE CONTRACT RIDERS, AN EXAMPLE MAY SHOW HYPOTHETICAL CONTRACT VALUES. THESE CONTRACT VALUES DO NOT REPRESENT PAST OR FUTURE PERFORMANCE. ACTUAL CONTRACT VALUES MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE INVESTMENT EXPERIENCE OF THE SUBACCOUNTS, GPAS, SPECIAL DCA FIXED ACCOUNT, REGULAR FIXED ACCOUNT AND THE FEES AND CHARGES THAT APPLY TO YOUR CONTRACT. THESE EXAMPLES ARE INTENDED TO SHOW HOW THE OPTIONAL RIDERS OPERATE, AND DO NOT TAKE INTO ACCOUNT WHETHER A PARTICULAR OPTIONAL RIDER IS PART OF A QUALIFIED ANNUITY. QUALIFIED ANNUITIES ARE SUBJECT TO RMDS AT CERTAIN AGES (SEE "TAXES -- QUALIFIED ANNUITIES -- REQUIRED MINIMUM DISTRIBUTIONS") WHICH MAY REQUIRE YOU TO TAKE PARTIAL SURRENDERS FROM THE CONTRACT. IF YOU ARE CONSIDERING THE ADDITION OF CERTAIN OPTIONAL RIDERS TO A QUALIFIED ANNUITY, YOU SHOULD CONSULT YOUR TAX ADVISOR PRIOR TO MAKING A PURCHASE FOR AN EXPLANATION OF THE POTENTIAL TAX IMPLICATION TO YOU. EXAMPLE -- ACCUMULATION BENEFIT The following example shows how the Accumulation Benefit rider works based on hypothetical values. It is not intended to depict investment performance of the contract. The example assumes: - You purchase the contract (with the Accumulation Benefit rider) with a payment of $100,000. No purchase payment credit applies. - You make no additional purchase payments. - You do not exercise the Elective Step-up option - The Accumulation Benefit rider fee is 0.60%.
ASSUMED NET PARTIAL SURRENDER ADJUSTED ACCUMULATION END OF CONTRACT YEAR RATE OF RETURN (BEGINNING OF YEAR) PARTIAL SURRENDER MCAV BENEFIT AMOUNT CONTRACT VALUE 1 12% 0 0 100,000 0 111,328 2 15% 0 0 102,422 0 127,259 3 3% 0 0 104,861 0 130,290 4 -8% 0 0 104,861 0 119,148 5 -15% 0 0 104,861 0 100,647 6 20% 2,000 2,084 102,778 0 117,666 7 15% 0 0 108,252 0 134,504 8 -10% 0 0 108,252 0 120,327 9 -20% 5,000 4,498 103,754 0 91,639 10 -12% 0 0 103,754 23,734 103,754
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 109 EXAMPLE -- GWB FOR LIFE RIDER EXAMPLE #1: COVERED PERSON HAS NOT REACHED AGE 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - You purchase the RAVA 4 Select contract with a payment of $100,000. - You are the sole owner and also the annuitant. You are age 60. - You make no additional payments to the contract. - Automatic annual step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied annual step-ups are indicated in BOLD.
HYPOTHETICAL CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT DURATION PURCHASE PARTIAL CONTRACT ----------------------------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 0.5 0 7,000 92,000 100,000 93,000 7,000 0 1 0 0 91,000 100,000 93,000 7,000 7,000 1.5 0 7,000 83,000 100,000 86,000 7,000 0 2 0 0 81,000 100,000 86,000 7,000 7,000 5 0 0 75,000 100,000 86,000 7,000 7,000 5.5 0 5,160 70,000 100,000 80,840 7,000 1,840 6 0 0 69,000 100,000 80,840 7,000 7,000 6.5 0 7,000 62,000 100,000 73,840 7,000 0 7 0 0 70,000 100,000 73,840 7,000 7,000 7.5 0 10,000 51,000 51,000(3) 51,000(3) 3,570 0 8 0 0 55,000 55,000 55,000 3,850 3,850 CONTRACT LIFETIME WITHDRAWAL BENEFIT DURATION --------------------------- IN YEARS ALP RALP At Issue $ N/A $ N/A 0.5 N/A N/A 1 N/A N/A 1.5 N/A N/A 2 N/A N/A 5 5,160(1) 5,160(1) 5.5 5,160 0 6 5,160 5,160 6.5 3,720(2) 0 7 4,200 4,200 7.5 3,060(3) 0 8 3,300 3,300
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, spousal continuation or contract ownership change), you can continue to withdraw up to either the GBP of $3,850 each year until the RBA is reduced to zero, or the ALP of $3,300 each year until the later of your death or the RBA is reduced to zero. (1) The ALP and RALP are established on the contract anniversary date following the date the covered person reaches age 65. (2) The $7,000 withdrawal is greater than the $5,160 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (3) The $10,000 withdrawal is greater than both the $7,000 RBP allowed under the basic withdrawal benefit and the $4,200 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. 110 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS EXAMPLE #2: COVERED PERSON HAS REACHED 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - You purchase the RAVA 4 Select contract with a payment of $100,000. - You are the sole owner and also the annuitant. You are age 65. - You make no additional payments to the contract. - Automatic annual step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied annual step-ups are indicated in BOLD.
HYPOTHETICAL CONTRACT ASSUMED BASIC WITHDRAWAL BENEFIT DURATION PURCHASE PARTIAL CONTRACT ----------------------------------------- IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 1 0 0 105,000 105,000 105,000 7,350 7,000(1) 2 0 0 110,000 110,000 110,000 7,700 7,000(1) 3 0 0 110,000 110,000 110,000 7,700 7,700(2) 3.5 0 6,600 110,000 110,000 103,400 7,700 1,100 4 0 0 115,000 115,000 115,000 8,050 8,050 4.5 0 8,050 116,000 115,000 106,950 8,050 0 5 0 0 120,000 120,000 120,000 8,400 8,400 5.5 0 10,000 122,000 120,000(4) 110,000(4) 8,400 0 6 0 0 125,000 125,000 125,000 8,750 8,750 CONTRACT LIFETIME WITHDRAWAL BENEFIT DURATION --------------------------- IN YEARS ALP RALP At Issue $6,000 $6,000 1 6,300 6,000(1) 2 6,600 6,000(1) 3 6,600 6,600(2) 3.5 6,600 0 4 6,900 6,900 4.5 6,900(3) 0 5 7,200 7,200 5.5 7,200(4) 0 6 7,500 7,500
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, spousal continuation or contract ownership change), you can continue to withdraw up to either the GBP of $8,750 each year until the RBA is reduced to zero, or the ALP of $7,500 each year until the later of your death or the RBA is reduced to zero. (1) The annual step-up has not been applied to the RBP or RALP because any withdrawal after step up during the waiting period would reverse any prior step ups prior to determining if the withdrawal is excess. Therefore, during the waiting period, the RBP is the amount you can withdraw without incurring the GBA and RBA excess withdrawal processing, and the RALP is the amount you can withdraw without incurring the ALP excess withdrawal processing. (2) On the third anniversary (after the end of the waiting period), the RBP and RALP are set equal to the GBP and ALP, respectively. (3) The $8,050 withdrawal is greater than the $6,900 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $8,400 RBP allowed under the basic withdrawal benefit and the $7,200 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 111 EXAMPLE -- SECURESOURCE(SM) RIDERS EXAMPLE #1: SINGLE LIFE BENEFIT: COVERED PERSON HAS NOT REACHED AGE 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - You purchase the contract with a payment of $100,000 and make no additional payments to the contract. - You are the sole owner and also the annuitant. You are age 60. - Automatic Annual Step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied Annual Step-ups are indicated in BOLD. - You elect the Moderate model portfolio at issue. On the 1st contract anniversary, you elect to change to the Moderately Aggressive model portfolio. The target model portfolio under the contract is the Moderate model portfolio.
HYPOTHETICAL BASIC WITHDRAWAL BENEFIT CONTRACT ASSUMED ----------------------------------------- DURATION PURCHASE PARTIAL CONTRACT IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 0.5 0 5,000 92,000 100,000 95,000 7,000 2,000 1 0 0 90,000 90,000(1) 90,000(1) 6,300 6,300 2 0 0 81,000 90,000 90,000 6,300 6,300 5 0 0 75,000 90,000 90,000 6,300 6,300 5.5 0 5,400 70,000 90,000 84,600 6,300 900 6 0 0 69,000 90,000 84,600 6,300 6,300 6.5 0 6,300 62,000 90,000 78,300 6,300 0 7 0 0 64,000 90,000 78,300 6,300 6,300 7.5 0 10,000 51,000 51,000(4) 51,000(4) 3,570 0 8 0 0 55,000 55,000 55,000 3,850 3,850 LIFETIME WITHDRAWAL BENEFIT CONTRACT --------------------------- DURATION IN YEARS ALP RALP At Issue $ N/A $ N/A 0.5 N/A N/A 1 N/A N/A 2 N/A N/A 5 5,400(2) 5,400(2) 5.5 5,400 0 6 5,400 5,400 6.5 3,720(3) 0 7 3,840 3,840 7.5 3,060(4) 0 8 3,300 3,300
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, spousal continuation, contract ownership change, or model portfolio changes), you can continue to withdraw up to either the GBP of $3,850 each year until the RBA is reduced to zero, or the ALP of $3,300 each year until the later of your death or the RBA is reduced to zero. (1) Allocation to the Moderately Aggressive model portfolio during a withdrawal phase will reset the benefit. The GBA is reset to the lesser of the prior GBA or the contract value. The RBA is reset to the lesser of the prior RBA or the contract value. The ALP (if established) is reset to the lesser of the prior ALP or 6% of the contract value. Any future withdrawals will reallocate your contract value to the Moderate model portfolio if you are invested more aggressively than the Moderate model portfolio. (2) The ALP and RALP are established on the contract anniversary date following the date the Covered Person reaches age 65 as 6% of the RBA. (3) The $6,300 withdrawal is greater than the $5,400 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $6,300 RBP allowed under the basic withdrawal benefit and the $3,840 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. 112 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS EXAMPLE #2: SINGLE LIFE BENEFIT: COVERED PERSON HAS REACHED 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - You purchase the contract with a payment of $100,000 and make no additional payments to the contract. - You are the sole owner and also the annuitant. You are age 65. - Automatic Annual Step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied Annual Step-ups are indicated in BOLD. - Your death occurs after 6 1/2 contract years and your spouse continues the contract and rider. Your spouse is over age 65 and is the new Covered Person.
HYPOTHETICAL BASIC WITHDRAWAL BENEFIT CONTRACT ASSUMED ----------------------------------------- DURATION PURCHASE PARTIAL CONTRACT IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 1 0 0 105,000 105,000 105,000 7,350 7,000(1) 2 0 0 110,000 110,000 110,000 7,700 7,000(1) 3 0 0 110,000 110,000 110,000 7,700 7,700(2) 3.5 0 6,600 110,000 110,000 103,400 7,700 1,100 4 0 0 115,000 115,000 115,000 8,050 8,050 4.5 0 8,050 116,000 115,000 106,950 8,050 0 5 0 0 120,000 120,000 120,000 8,400 8,400 5.5 0 10,000 122,000 120,000(4) 110,000(4) 8,400 0 6 0 0 125,000 125,000 125,000 8,750 8,750 6.5 0 0 110,000 125,000 125,000 8,750 8,750 7 0 0 105,000 125,000 125,000 8,750 8,750 LIFETIME WITHDRAWAL BENEFIT CONTRACT --------------------------- DURATION IN YEARS ALP RALP At Issue $6,000 $6,000 1 6,300 6,000(1) 2 6,600 6,000(1) 3 6,600 6,600(2) 3.5 6,600 0 4 6,900 6,900 4.5 6,900(3) 0 5 7,200 7,200 5.5 7,200(4) 0 6 7,500 7,500 6.5 6,600(5) 6,600(5) 7 6,600 6,600
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, contract ownership change, or model portfolio changes), your spouse can continue to withdraw up to either the GBP of $8,750 each year until the RBA is reduced to zero, or the ALP of $6,600 each year until the later of your spouse's death or the RBA is reduced to zero. (1) The Annual Step-up has not been applied to the RBP or RALP because any withdrawal after step up during the Waiting Period would reverse any prior step ups prior to determining if the withdrawal is excess. Therefore, during the Waiting Period, the RBP is the amount you can withdraw without incurring the GBA and RBA excess withdrawal processing, and the RALP is the amount you can withdraw without incurring the ALP excess withdrawal processing. (2) On the third anniversary (after the end of the Waiting Period), the RBP and RALP are set equal to the GBP and ALP, respectively. (3) The $8,050 withdrawal is greater than the $6,900 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $8,400 RBP allowed under the basic withdrawal benefit and the $7,200 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (5) At spousal continuation, the ALP is reset to the lesser of the prior ALP or 6% of the contract value and the RALP is reset to the ALP. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 113 EXAMPLE #3: JOINT LIFE BENEFIT: YOUNGER COVERED SPOUSE HAS NOT REACHED 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - You purchase the contract with a payment of $100,000 and make no additional payments to the contract. - You are age 59 and your spouse is age 60. - Automatic Annual Step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied Annual Step-ups are indicated in BOLD. - You elect the Moderate model portfolio at issue. On the 1st contract anniversary, you elect to change to the Moderately Aggressive model portfolio. The target model portfolio under the contract is the Moderate model portfolio. - Your death occurs after 9 1/2 contract years and your spouse continues the contract and rider; the lifetime benefit is not reset.
HYPOTHETICAL BASIC WITHDRAWAL BENEFIT CONTRACT ASSUMED ----------------------------------------- DURATION PURCHASE PARTIAL CONTRACT IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 0.5 0 5,000 92,000 100,000 95,000 7,000 2,000 1 0 0 90,000 90,000(1) 90,000(1) 6,300 6,300 2 0 0 81,000 90,000 90,000 6,300 6,300 6 0 0 75,000 90,000 90,000 6,300 6,300 6.5 0 5,400 70,000 90,000 84,600 6,300 900 7 0 0 69,000 90,000 84,600 6,300 6,300 7.5 0 6,300 62,000 90,000 78,300 6,300 0 8 0 0 64,000 90,000 78,300 6,300 6,300 8.5 0 10,000 51,000 51,000(4) 51,000(4) 3,570 0 9 0 0 55,000 55,000 55,000 3,850 3,850 9.5 0 0 54,000 55,000 55,000 3,850 3,850 10 0 0 52,000 55,000 55,000 3,850 3,850 LIFETIME WITHDRAWAL BENEFIT CONTRACT --------------------------- DURATION IN YEARS ALP RALP At Issue $ N/A $ N/A 0.5 N/A N/A 1 N/A N/A 2 N/A N/A 6 5,400(2) 5,400(2) 6.5 5,400 0 7 5,400 5,400 7.5 3,720(3) 0 8 3,840 3,840 8.5 3,060(4) 0 9 3,300 3,300 9.5 3,300 3,300 10 3,300 3,300
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, or model portfolio changes), your spouse can continue to withdraw up to either the GBP of $3,850 each year until the RBA is reduced to zero, or the ALP of $3,300 each year until the later of your spouse's death or the RBA is reduced to zero. (1) The ALP and RALP are established on the contract anniversary date following the date the younger Covered Spouse reaches age 65 as 6% of the RBA. (2) Allocation to the Moderately Aggressive model portfolio during a withdrawal phase will reset the benefit. The GBA is reset to the lesser of the prior GBA or the contract value. The RBA is reset to the lesser of the prior RBA or the contract value. The ALP is reset to the lesser of the prior ALP or 6% of the contract value. Any future withdrawals will reallocate your contract value to the Moderate model portfolio if you are invested more aggressively than the Moderate model portfolio. (3) The $6,300 withdrawal is greater than the $5,400 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $6,300 RBP allowed under the basic withdrawal benefit and the $3,840 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. 114 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS EXAMPLE #4: JOINT LIFE BENEFIT: YOUNGER COVERED SPOUSE HAS REACHED 65 AT THE TIME THE CONTRACT AND RIDER ARE PURCHASED. ASSUMPTIONS: - You purchase the contract with a payment of $100,000 and make no additional payments to the contract - You are age 71 and your spouse is age 70. - Automatic Annual Step-ups are applied each anniversary when available, where the contract value is greater than the RBA and/or 6% of the contract value is greater than the ALP. Applied Annual Step-ups are indicated in BOLD. - Your death occurs after 6 1/2 contract years and your spouse continues the contract and rider; the lifetime benefit is not reset.
HYPOTHETICAL BASIC WITHDRAWAL BENEFIT CONTRACT ASSUMED ----------------------------------------- DURATION PURCHASE PARTIAL CONTRACT IN YEARS PAYMENTS WITHDRAWALS VALUE GBA RBA GBP RBP At Issue $100,000 $ N/A $100,000 $100,000 $100,000 $7,000 $7,000 1 0 0 105,000 105,000 105,000 7,350 7,000(1) 2 0 0 110,000 110,000 110,000 7,700 7,000(1) 3 0 0 110,000 110,000 110,000 7,700 7,700(2) 3.5 0 6,600 110,000 110,000 103,400 7,700 1,100 4 0 0 115,000 115,000 115,000 8,050 8,050 4.5 0 8,050 116,000 115,000 106,950 8,050 0 5 0 0 120,000 120,000 120,000 8,400 8,400 5.5 0 10,000 122,000 120,000(4) 110,000(4) 8,400 0 6 0 0 125,000 125,000 125,000 8,750 8,750 6.5 0 0 110,000 125,000 125,000 8,750 8,750 7 0 0 105,000 125,000 125,000 8,750 8,750 LIFETIME WITHDRAWAL BENEFIT CONTRACT --------------------------- DURATION IN YEARS ALP RALP At Issue $6,000 $6,000 1 6,300 6,000(1) 2 6,600 6,000(1) 3 6,600 6,600(2) 3.5 6,600 0 4 6,900 6,900 4.5 6,900(3) 0 5 7,200 7,200 5.5 7,200(4) 0 6 7,500 7,500 6.5 7,500 7,500 7 7,500 7,500
At this point, assuming no additional activity (step ups, excess withdrawals, purchase payments, or model portfolio changes), your spouse can continue to withdraw up to either the GBP of $8,750 each year until the RBA is reduced to zero, or the ALP of $7,500 each year until the later of your spouse's death or the RBA is reduced to zero. (1) The Annual Step-up has not been applied to the RBP or RALP because any withdrawal after step up during the Waiting Period would reverse any prior step ups prior to determining if the withdrawal is excess. Therefore, during the Waiting Period, the RBP is the amount you can withdraw without incurring the GBA and RBA excess withdrawal processing, and the RALP is the amount you can withdraw without incurring the ALP excess withdrawal processing. (2) On the third anniversary (after the end of the Waiting Period), the RBP and RALP are set equal to the GBP and ALP, respectively. (3) The $8,050 withdrawal is greater than the $6,900 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the ALP, resetting the ALP to the lesser of the prior ALP or 6% of the contract value following the withdrawal. (4) The $10,000 withdrawal is greater than both the $8,400 RBP allowed under the basic withdrawal benefit and the $7,200 RALP allowed under the lifetime withdrawal benefit and therefore the excess withdrawal processing is applied to the GBA, RBA, and ALP. The GBA is reset to the lesser of the prior GBA or the contract value following the withdrawal. The RBA is reset to the lesser of the prior RBA less the withdrawal or the contract value following the withdrawal. The ALP is reset to the lesser of the prior ALP or 6% of the contract value following the withdrawal. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 115 APPENDIX F: ADDITIONAL RMD DISCLOSURE This appendix describes our current administrative practice for determining the amount of withdrawals in any contract year which an owner may take under the SecureSource(SM) rider or GWB for Life rider to satisfy the RMD rules under 401(a)(9) of the Code without application of the excess withdrawal processing described in the rider. We reserve the right to modify this administrative practice at any time upon 30 days' written notice to you. For contract holders subject to annual RMD rules under the Section 401(a)(9) of the Code, the amount you withdraw each year from this contract to satisfy these rules will not prompt excess withdrawal processing, subject to the following rules: (1) If on the date we calculated your Annual Life Expectancy Required Minimum Distribution Amount (ALERMDA), it is greater than the RBP from the beginning of the current contract year, - A Basic Additional Benefit Amount (BABA) will be set equal to that portion of your ALERMDA that exceeds the value of the RBP from the beginning of the current contract year. - Any withdrawals taken in a contract year will count first against and reduce the RBP for that contract year. - Once the RBP for the current contract year has been depleted, any additional amounts withdrawn will count against and reduce the BABA. These withdrawals will not be considered excess withdrawals with regard to the GBA and RBA as long as they do not exceed the remaining BABA. - Once the BABA has been depleted, any additional withdrawal amounts will be considered excess withdrawals with regard to the GBA and RBA and will subject them all to the excess withdrawal processing described by the SecureSource(SM) rider or GWB for Life rider. (2) If on the date we calculated your ALERMDA, it is greater than the RALP from the beginning of the current contract year, - A Lifetime Additional Benefit Amount (LABA) will be set equal to that portion of your ALERMDA that exceeds the value of RALP from the beginning of the current contract year. - Any withdrawals taken in a contract year will count first against and reduce the RALP for that Contract Year. - Once the RALP for the current contract year has been depleted, any additional amounts withdrawn will count against and reduce the LABA. These withdrawals will not be considered excess withdrawals with regard to the ALP as long as they do not exceed the remaining LABA. - Once the LABA has been depleted, any additional withdrawal amounts will be considered excess withdrawals with regard to the ALP and will subject the ALP to the excess withdrawal processing described by the SecureSource(SM) or GWB for Life rider. (3) If the ALP is established on a contract anniversary where your current ALERMDA is greater than the new RALP, - An initial LABA will be set equal to that portion of your ALERMDA that exceeds the new RALP. - This new LABA will be immediately reduced by the amount that total withdrawals in the current calendar year exceed the new RALP, but shall not be reduced to less than zero. The ALERMDA is: (1) determined by us each calendar year; (2) based on the value of this contract alone on the date it is determined; (3) based on recalculated life expectancy taken from the Uniform Lifetime Table under the Code (applicable only to SecureSource(SM) riders); and (4) based on the company's understanding and interpretation of the requirements for life expectancy distributions intended to satisfy the required minimum distribution rules under Code Section 401(a)(9) and the Treasury Regulations promulgated thereunder as applicable on the effective date of this prospectus, to: 1. IRAs under Section 408(b) of the Code; 2. Roth IRAs under Section 408A of the Code; 3. SIMPLE IRAs under Section 408A of the Code; 4. Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code; 5. Custodial and investment only plans under Section 401(a) of the Code; 6. TSAs under Section 403(b) of the Code. 116 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS In the future, the requirements under tax law for such distributions may change and the life expectancy amount calculation provided under your SecureSource(SM) rider or GWB for Life rider may not be sufficient to satisfy the requirements under the tax law for these types of distributions. In such a situation, amounts withdrawn to satisfy such distribution requirements will exceed your available RBP or RALP amount and may result in the reduction of your GBA, RBA, and/or ALP as described under the excess withdrawal provision of the rider. In cases where the Code does not allow the life expectancy of a natural person to be used to calculate the required minimum distribution amount (e.g., some ownerships by trusts and charities), we will calculate the life expectancy RMD amount as zero in all years. The life expectancy required minimum distribution amount calculated by us will also equal zero in all years. Please consult your tax advisor about the impact of these rules prior to purchasing the SecureSource(SM) rider or GWB for Life rider. RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 117 APPENDIX G: 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 price level is noted in parenthesis. We have not provided this information for subaccounts that were not available under your contract as of Dec. 31, 2006.
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,060 ----------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 719 ----------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 695 ----------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 16,983 ----------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 607 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 6,467 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,936 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 33,087 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 346 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 987 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 36,949 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 3,143 ----------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,469 -----------------------------------------------------------------------------------
118 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 48,403 ----------------------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.20 Number of accumulation units outstanding at end of period (000 omitted) 23,001 ----------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 23,928 ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.18 Number of accumulation units outstanding at end of period (000 omitted) 733 ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 693 ----------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 46,638 ----------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 403 ----------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 1,467 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 94,738 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 36,125 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 2,653 ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (6/26/2006) (PREVIOUSLY FTVIPT FRANKLIN REAL ESTATE FUND - CLASS 2) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.22 Number of accumulation units outstanding at end of period (000 omitted) 6,443 ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 4,228 ----------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 5,798 -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 119
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 4,040 ----------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS II* (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 277 *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. ----------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 320 ----------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 2,045 ----------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 4,446 ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 26,194 ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 164 ----------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,542 ----------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 3,088 ----------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 64,310 ----------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (9/15/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 138 ----------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 82,883 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 829 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 34,337 *The 7-day simple and compound yields for RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2006 were 3.64% and 3.71%, respectively. -----------------------------------------------------------------------------------------------
120 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 736 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 145,290 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 93,936 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.34 Number of accumulation units outstanding at end of period (000 omitted) 18,150 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 64,829 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 41,689 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 53,228 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,470 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 6,215 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 49,975 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.18 Number of accumulation units outstanding at end of period (000 omitted) 1,285 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 461 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 285 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 338 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 50,393 -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 121
VARIABLE ACCOUNT CHARGES OF 0.85% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,079 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 107 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 2,091 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 397 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 24,338 ----------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 67,895 ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.29 Number of accumulation units outstanding at end of period (000 omitted) 21,964 ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 17,766 ----------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 23,903 ----------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 9,756 ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 556 ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,212 -----------------------------------------------------------------------------------------------
122 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,047 ----------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 575 ----------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 377 ----------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 7,279 ----------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 566 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 2,366 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 815 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 17,586 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 170 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,124 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 16,170 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 3,228 ----------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,032 ----------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 25,237 ----------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.20 Number of accumulation units outstanding at end of period (000 omitted) 11,268 -----------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 123
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 11,513 ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.18 Number of accumulation units outstanding at end of period (000 omitted) 334 ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 218 ----------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 27,120 ----------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 252 ----------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 776 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 48,092 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 18,038 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,434 ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (6/26/2006) (PREVIOUSLY FTVIPT FRANKLIN REAL ESTATE FUND - CLASS 2) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.21 Number of accumulation units outstanding at end of period (000 omitted) 3,157 ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 2,407 ----------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 4,294 ----------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 1,797 ----------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS II* (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 122 *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. -----------------------------------------------------------------------------------------------
124 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 321 ----------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 1,087 ----------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 2,967 ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 12,041 ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 124 ----------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 2,158 ----------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 2,177 ----------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 37,454 ----------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (9/15/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 113 ----------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 42,994 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 692 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 30,300 *The 7-day simple and compound yields for RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2006 were 3.47% and 3.53%, respectively. ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 1,313 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 82,281 -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 125
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 47,849 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.34 Number of accumulation units outstanding at end of period (000 omitted) 8,077 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 31,988 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 23,263 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 29,756 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 1,229 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 4,619 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 28,107 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.18 Number of accumulation units outstanding at end of period (000 omitted) 1,483 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 275 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 255 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 201 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 23,159 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 808 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 84 -----------------------------------------------------------------------------------------------
126 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.05% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 1,511 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 344 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 10,682 ----------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 32,553 ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.28 Number of accumulation units outstanding at end of period (000 omitted) 11,119 ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 8,501 ----------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 11,710 ----------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 4,737 ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 327 ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 854 -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 127
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 159 ----------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 320 ----------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 92 ----------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 3,445 ----------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 98 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 1,142 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 507 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 8,397 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 111 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 250 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 7,306 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 1,105 ----------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 588 ----------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 11,519 ----------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.20 Number of accumulation units outstanding at end of period (000 omitted) 5,330 -----------------------------------------------------------------------------------
128 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 5,526 ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.18 Number of accumulation units outstanding at end of period (000 omitted) 187 ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 104 ----------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 11,485 ----------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 85 ----------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 403 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 21,709 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 8,140 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 577 ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (6/26/2006) (PREVIOUSLY FTVIPT FRANKLIN REAL ESTATE FUND - CLASS 2) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.21 Number of accumulation units outstanding at end of period (000 omitted) 1,034 ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL SMALL CAP VALUE SECURITIES FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 896 ----------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 2,910 ----------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 1,088 ----------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS II* (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 30 *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 129
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 77 ----------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 980 ----------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 1,198 ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 5,540 ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 131 ----------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 890 ----------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,148 ----------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 15,783 ----------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (9/15/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 14 ----------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 18,644 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 306 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 9,715 *The 7-day simple and compound yields for RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2006 were 3.38% and 3.44%, respectively. ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 238 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 34,539 -----------------------------------------------------------------------------------------------
130 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 20,717 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.34 Number of accumulation units outstanding at end of period (000 omitted) 3,634 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 14,138 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 9,735 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 12,575 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 367 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,111 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 11,996 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.18 Number of accumulation units outstanding at end of period (000 omitted) 490 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 129 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 24 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 160 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 10,320 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 235 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 61 -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 131
VARIABLE ACCOUNT CHARGES OF 1.10% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 369 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 54 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 4,783 ----------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 14,779 ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.28 Number of accumulation units outstanding at end of period (000 omitted) 5,010 ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 3,807 ----------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 5,176 ----------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,525 ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 120 ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 248 -----------------------------------------------------------------------------------------------
132 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 15 ----------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 33 ----------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 25 ----------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 203 ----------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.23 Number of accumulation units outstanding at end of period (000 omitted) 21 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 66 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 73 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 875 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 12 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 76 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 508 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 118 ----------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 166 ----------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,110 ----------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.20 Number of accumulation units outstanding at end of period (000 omitted) 474 -----------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 133
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 738 ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.18 Number of accumulation units outstanding at end of period (000 omitted) 66 ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 61 ----------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 1,613 ----------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 3 ----------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 62 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 1,983 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 824 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 120 ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (6/26/2006) (PREVIOUSLY FTVIPT FRANKLIN REAL ESTATE FUND - CLASS 2) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.20 Number of accumulation units outstanding at end of period (000 omitted) 108 ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 119 ----------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 403 ----------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 186 ----------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS II* (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) - *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. -----------------------------------------------------------------------------------------------
134 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 60 ----------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 176 ----------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 101 ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 432 ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 13 ----------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 108 ----------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 133 ----------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 3,211 ----------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (9/15/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) - ----------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,767 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 42 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 2,340 *The 7-day simple and compound yields for RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2006 were 3.23% and 3.28%, respectively. ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 5 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 3,649 -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 135
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 2,080 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.34 Number of accumulation units outstanding at end of period (000 omitted) 297 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 1,144 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 1,823 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 1,572 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 64 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 163 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,216 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 97 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 17 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 3 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 28 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 810 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 12 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 2 -----------------------------------------------------------------------------------------------
136 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 45 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 24 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 336 ----------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 1,254 ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.28 Number of accumulation units outstanding at end of period (000 omitted) 494 ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 295 ----------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 495 ----------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 279 ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 7 ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 65 -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 137
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 257 ----------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 252 ----------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 60 ----------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,832 ----------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.23 Number of accumulation units outstanding at end of period (000 omitted) 102 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 564 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 293 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 5,843 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 23 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 267 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 4,125 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 903 ----------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 576 ----------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 7,437 ----------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.20 Number of accumulation units outstanding at end of period (000 omitted) 3,503 -----------------------------------------------------------------------------------
138 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.01 Number of accumulation units outstanding at end of period (000 omitted) 3,433 ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.18 Number of accumulation units outstanding at end of period (000 omitted) 205 ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 72 ----------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 10,136 ----------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 35 ----------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 382 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 14,254 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 5,441 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 483 ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (6/26/2006) (PREVIOUSLY FTVIPT FRANKLIN REAL ESTATE FUND - CLASS 2) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.21 Number of accumulation units outstanding at end of period (000 omitted) 1,107 ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,064 ----------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 2,030 ----------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 665 ----------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS II* (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 27 *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 139
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 80 ----------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 793 ----------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 1,005 ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 3,205 ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 29 ----------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 663 ----------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 715 ----------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 12,934 ----------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (9/15/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 98 ----------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 12,825 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 225 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 9,800 *The 7-day simple and compound yields for RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2006 were 3.17% and 3.22%, respectively. ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 178 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 26,100 -----------------------------------------------------------------------------------------------
140 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 14,023 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.34 Number of accumulation units outstanding at end of period (000 omitted) 2,130 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 8,957 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 7,409 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 9,303 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 220 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,205 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 8,700 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 266 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 207 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 20 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 44 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 6,289 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 361 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 32 -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 141
VARIABLE ACCOUNT CHARGES OF 1.30% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 623 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 51 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 2,786 ----------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 9,512 ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.28 Number of accumulation units outstanding at end of period (000 omitted) 3,387 ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 2,328 ----------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 3,490 ----------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 1,995 ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 37 ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 178 -----------------------------------------------------------------------------------------------
142 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------- AIM V.I. CAPITAL APPRECIATION FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 96 ----------------------------------------------------------------------------------- AIM V.I. CAPITAL DEVELOPMENT FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 13 ----------------------------------------------------------------------------------- AIM V.I. FINANCIAL SERVICES FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 114 ----------------------------------------------------------------------------------- AIM V.I. GLOBAL HEALTH CARE FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 222 ----------------------------------------------------------------------------------- AIM V.I. INTERNATIONAL GROWTH FUND, SERIES II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.23 Number of accumulation units outstanding at end of period (000 omitted) 14 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GLOBAL TECHNOLOGY PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 43 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 65 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS INTERNATIONAL VALUE PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 1,561 ----------------------------------------------------------------------------------- ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO (CLASS B) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 4 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP MID CAP VALUE, CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 40 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP ULTRA(R), CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.04 Number of accumulation units outstanding at end of period (000 omitted) 530 ----------------------------------------------------------------------------------- AMERICAN CENTURY VP VALUE, CLASS II (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 213 ----------------------------------------------------------------------------------- COLUMBIA HIGH YIELD FUND, VARIABLE SERIES, CLASS B (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 286 ----------------------------------------------------------------------------------- COLUMBIA MARSICO GROWTH FUND, VARIABLE SERIES, CLASS A (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,493 ----------------------------------------------------------------------------------- COLUMBIA MARSICO INTERNATIONAL OPPORTUNITIES FUND, VARIABLE SERIES, CLASS B (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.20 Number of accumulation units outstanding at end of period (000 omitted) 748 -----------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 143
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- CREDIT SUISSE TRUST - COMMODITY RETURN STRATEGY PORTFOLIO (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.01 Number of accumulation units outstanding at end of period (000 omitted) 700 ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL EQUITY PORTFOLIO, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.18 Number of accumulation units outstanding at end of period (000 omitted) 35 ----------------------------------------------------------------------------------------------- DREYFUS VARIABLE INVESTMENT FUND INTERNATIONAL VALUE PORTFOLIO, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 18 ----------------------------------------------------------------------------------------------- EATON VANCE VT FLOATING-RATE INCOME FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 4,655 ----------------------------------------------------------------------------------------------- EVERGREEN VA FUNDAMENTAL LARGE CAP FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 32 ----------------------------------------------------------------------------------------------- EVERGREEN VA INTERNATIONAL EQUITY FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 79 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 3,216 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP MID CAP PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,152 ----------------------------------------------------------------------------------------------- FIDELITY(R) VIP OVERSEAS PORTFOLIO SERVICE CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 234 ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN GLOBAL REAL ESTATE SECURITIES FUND - CLASS 2 (6/26/2006) (PREVIOUSLY FTVIPT FRANKLIN REAL ESTATE FUND - CLASS 2) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.20 Number of accumulation units outstanding at end of period (000 omitted) 414 ----------------------------------------------------------------------------------------------- FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 232 ----------------------------------------------------------------------------------------------- FTVIPT MUTUAL SHARES SECURITIES FUND - CLASS 2 (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 485 ----------------------------------------------------------------------------------------------- GOLDMAN SACHS VIT STRUCTURED U.S. EQUITY FUND - INSTITUTIONAL SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 196 ----------------------------------------------------------------------------------------------- LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO, CLASS II* (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 4 *Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. -----------------------------------------------------------------------------------------------
144 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- MFS(R) INVESTORS GROWTH STOCK SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 57 ----------------------------------------------------------------------------------------------- MFS(R) TOTAL RETURN SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 156 ----------------------------------------------------------------------------------------------- MFS(R) UTILITIES SERIES - SERVICE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 467 ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST INTERNATIONAL PORTFOLIO (CLASS S) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 680 ----------------------------------------------------------------------------------------------- NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST SOCIALLY RESPONSIVE PORTFOLIO (CLASS S) (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 5 ----------------------------------------------------------------------------------------------- OPPENHEIMER GLOBAL SECURITIES FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 266 ----------------------------------------------------------------------------------------------- OPPENHEIMER MAIN STREET SMALL CAP FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 231 ----------------------------------------------------------------------------------------------- OPPENHEIMER STRATEGIC BOND FUND/VA, SERVICE SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 3,974 ----------------------------------------------------------------------------------------------- OPPENHEIMER VALUE FUND/VA, SERVICE SHARES (9/15/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 6 ----------------------------------------------------------------------------------------------- PIMCO VIT ALL ASSET PORTFOLIO, ADVISOR SHARE CLASS (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 2,481 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - BALANCED FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 350 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 7,385 *The 7-day simple and compound yields for RiverSource(R) Variable Portfolio - Cash Management Fund at Dec. 31, 2006 were 3.03% and 3.08%, respectively. ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - CORE BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.02 Number of accumulation units outstanding at end of period (000 omitted) 7,385 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 5,708 -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 145
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - DIVERSIFIED EQUITY INCOME FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 3,489 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - EMERGING MARKETS FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.34 Number of accumulation units outstanding at end of period (000 omitted) 340 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - FUNDAMENTAL VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 1,499 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 1,982 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GLOBAL INFLATION PROTECTED SECURITIES FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 2,119 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 69 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - HIGH YIELD BOND FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 514 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - INCOME OPPORTUNITIES FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.07 Number of accumulation units outstanding at end of period (000 omitted) 1,866 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.17 Number of accumulation units outstanding at end of period (000 omitted) 100 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.15 Number of accumulation units outstanding at end of period (000 omitted) 38 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - LARGE CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.16 Number of accumulation units outstanding at end of period (000 omitted) 15 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.05 Number of accumulation units outstanding at end of period (000 omitted) 16 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - MID CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 1,085 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - S&P 500 INDEX FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 10 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SELECT VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.10 Number of accumulation units outstanding at end of period (000 omitted) 6 -----------------------------------------------------------------------------------------------
146 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS
VARIABLE ACCOUNT CHARGES OF 1.45% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT. (CONTINUED) YEAR ENDED DEC. 31, 2006 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SHORT DURATION U.S. GOVERNMENT FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.03 Number of accumulation units outstanding at end of period (000 omitted) 130 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP ADVANTAGE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.09 Number of accumulation units outstanding at end of period (000 omitted) 5 ----------------------------------------------------------------------------------------------- RIVERSOURCE(R) VARIABLE PORTFOLIO - SMALL CAP VALUE FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.12 Number of accumulation units outstanding at end of period (000 omitted) 417 ----------------------------------------------------------------------------------------------- VAN KAMPEN LIFE INVESTMENT TRUST COMSTOCK PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.13 Number of accumulation units outstanding at end of period (000 omitted) 1,999 ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF GLOBAL REAL ESTATE PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.28 Number of accumulation units outstanding at end of period (000 omitted) 624 ----------------------------------------------------------------------------------------------- VAN KAMPEN UIF MID CAP GROWTH PORTFOLIO, CLASS II SHARES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 397 ----------------------------------------------------------------------------------------------- WANGER INTERNATIONAL SMALL CAP (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.24 Number of accumulation units outstanding at end of period (000 omitted) 779 ----------------------------------------------------------------------------------------------- WANGER U.S. SMALLER COMPANIES (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.08 Number of accumulation units outstanding at end of period (000 omitted) 422 ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT OPPORTUNITY FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.11 Number of accumulation units outstanding at end of period (000 omitted) 9 ----------------------------------------------------------------------------------------------- WELLS FARGO ADVANTAGE VT SMALL CAP GROWTH FUND (6/26/2006) Accumulation unit value at beginning of period $1.00 Accumulation unit value at end of period $1.14 Number of accumulation units outstanding at end of period (000 omitted) 74 -----------------------------------------------------------------------------------------------
RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS 147 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Calculating Annuity Payouts..................... p. 3 Rating Agencies................................. p. 4 Revenues Received During Calendar Year 2006..... p. 4 Principal Underwriter........................... p. 5 Independent Registered Public Accounting Firm... p. 5 Financial Statements
148 RIVERSOURCE RAVA 4 ADVANTAGE / RAVA 4 SELECT / RAVA 4 ACCESS VARIABLE ANNUITY -- PROSPECTUS (RIVERSOURCE ANNUITIES LOGO) RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 (800) 862-7919 RiverSource Distributors, Inc. (Distributor), Member NASD. Insurance and annuity products are issued by RiverSource Life Insurance Company. Both companies are affiliated with Ameriprise Financial Services, Inc. (C)2007 Ameriprise Financial, Inc. All rights reserved. S-6503 E (9/07) STATEMENT OF ADDITIONAL INFORMATION FOR RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY(R) RIVERSOURCE RETIREMENT ADVISOR VARIABLE ANNUITY(R) - BAND 3 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR SELECT(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE(R) VARIABLE ANNUITY - BAND 3 RIVERSOURCE RETIREMENT ADVISOR ADVANTAGE PLUS(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR SELECT PLUS(R) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR 4 ADVANTAGE(SM) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR 4 SELECT(SM) VARIABLE ANNUITY RIVERSOURCE RETIREMENT ADVISOR 4 ACCESS(SM) VARIABLE ANNUITY RIVERSOURCE(R) FLEXIBLE PORTFOLIO ANNUITY RIVERSOURCE VARIABLE ACCOUNT 10 (previously IDS LIFE VARIABLE ACCOUNT 10) July 16, 2007 RiverSource Variable Account 10 is a separate account of RiverSource Life Insurance Company (RiverSource Life). This Statement of Additional Information (SAI) is not a prospectus. It should be read together with the prospectus dated the same date as this SAI, which may be obtained from your sales representative, or by writing or calling us at the address and telephone number below. This SAI contains financial information for all the subaccounts of RiverSource Variable Account 10. Not all subaccounts of RiverSource Variable Account 10 apply to your specific contract. RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 (800) 862-7919 TABLE OF CONTENTS Calculating Annuity Payouts ............................................. p. 3 Rating Agencies ......................................................... p. 4 Revenues Received During Calendar Year 2006 ............................. p. 4 Principal Underwriter ................................................... p. 5 Independent Registered Public Accounting Firm ........................... p. 5 Financial Statements
CORPORATE CONSOLIDATION On Dec. 31, 2006, American Enterprise Life Insurance Company and American Partners Life Insurance Company merged into their parent company, IDS Life Insurance Company (IDS Life). At that time, IDS Life changed its name to RiverSource Life Insurance Company. This merger helped simplify the overall corporate structure because the three life insurance companies were consolidated into one. This consolidation and renaming did not have any adverse effect on the features or benefits of any contract. 2 - RIVERSOURCE VARIABLE ACCOUNT 10 CALCULATING ANNUITY PAYOUTS THE VARIABLE ACCOUNT We do the following calculations separately for each of the subaccounts of the variable account. The separate monthly payouts, added together, make up your total variable annuity payout. INITIAL PAYOUT: To compute your first monthly payout, we: - determine the dollar value of your contract on the valuation date and deduct any applicable premium tax; then - apply the result to the annuity table contained in the contract or another table at least as favorable. The annuity table shows the amount of the first monthly payout for each $1,000 of value which depends on factors built into the table, as described below. ANNUITY UNITS: We then convert the value of your subaccount to annuity units. To compute the number of units credited to you, we divide the first monthly payout by the annuity unit value (see below) on the valuation date. The number of units in your subaccount is fixed. The value of the units fluctuates with the performance of the underlying fund. SUBSEQUENT PAYOUTS: To compute later payouts, we multiply: - the annuity unit value on the valuation date; by - the fixed number of annuity units credited to you. ANNUITY UNIT VALUES: We originally set this value at $1 for each subaccount. To calculate later values we multiply the last annuity value by the product of: - the net investment factor; and - the neutralizing factor. The purpose of the neutralizing factor is to offset the effect of the assumed rate built into the annuity table. With an assumed investment rate of 5%, the neutralizing factor is 0.999866 for a one day valuation period. NET INVESTMENT FACTOR: We determine the net investment factor by: - adding the fund's current net asset value per share plus the per share amount of any accrued income or capital gain dividends to obtain a current adjusted net asset value per share; then - dividing that sum by the previous adjusted net asset value per share; and - subtracting the percentage factor representing the mortality and expense risk fee from the result. Because the net asset value of the fund may fluctuate, the net investment factor may be greater or less than one, and the annuity unit value may increase or decrease. You bear this investment risk in a subaccount. THE FIXED ACCOUNT We guarantee your fixed annuity payout amounts. Once calculated, your payout will remain the same and never change. To calculate your annuity payouts we: - take the value of your fixed account at the retirement/settlement date or the date you selected to begin receiving your annuity payouts; then - using an annuity table, we apply the value according to the annuity payout plan you select. The annuity payout table we use will be the one in effect at the time you choose to begin your annuity payouts. The values in the table will be equal to or greater than the table in your contract. RIVERSOURCE VARIABLE ACCOUNT 10 - 3 RATING AGENCIES We receive ratings from independent rating agencies. These agencies evaluate the financial soundness and claims-paying ability of insurance companies based on a number of different factors. The ratings reflect each agency's estimation of our ability to meet our contractual obligations such as making annuity payouts and paying death benefits and other distributions. As such, the ratings relate to our fixed account and not to the subaccounts. This information generally does not relate to the management or performance of the subaccounts. For detailed information on the agency ratings given to RiverSource Life, see "Debt & Ratings Information" under "Investors Relations" on our website at ameriprise.com or contact your sales representative. You also may view our current ratings by visiting the agency websites directly at: A.M. Best www.ambest.com Fitch www.fitchratings.com Moody's www.moodys.com/insurance Standard & Poor's www.standardandpoors.com
A.M. Best -- Rates insurance companies for their financial strength. Fitch -- Rates insurance companies for their claims-paying ability. Moody's -- Rates insurance companies for their financial strength. Standard & Poor's -- Rates insurance companies for their financial strength. REVENUES RECEIVED DURING CALENDAR YEAR 2006: The following table shows the unaffiliated funds ranked according to highest to lowest total dollar amounts the funds and their affiliates paid to us and/or our affiliates in 2006. Some of these funds may not be available under your contract or policy. Please see your contract or policy prospectus regarding the investment options available to you. Fidelity(R) Variable Insurance Products $14,119,393.11 Wanger Advisors Trust $ 9,994,792.02 Franklin(R) Templeton(R) Variable Insurance Products Trust $ 9,889,398.02 American Century(R) Variable Portfolios, Inc. $ 8,111,950.96 AllianceBernstein Variable Products Series Fund, Inc. $ 6,935,380.14 AIM Variable Insurance Funds $ 6,806,164.35 Goldman Sachs Variable Insurance Trust $ 6,192,884.80 Oppenheimer Variable Account Funds $ 5,619,718.04 Van Kampen Life Investment Trust $ 4,719,402.91 MFS(R) Variable Insurance Trust(SM) $ 3,669,262.58 Putnam Variable Trust $ 3,209,435.18 Wells Fargo Advantage Variable Trust Funds $ 1,839,774.87 Evergreen Variable Annuity Trust $ 1,525,346.92 Credit Suisse Trust $ 1,417,351.20 Janus Aspen Series $ 1,336,421.58 Lazard Retirement Series, Inc. $ 1,320,263.36 Columbia Funds Variable Insurance Trust $ 1,225,769.87 Third Avenue Variable Series Trust $ 988,460.13 Royce Capital Fund $ 812,542.64 Pioneer Variable Contracts Trust $ 433,483.35 PIMCO Variable Insurance Trust $ 319,348.24 The Universal Institutional Funds, Inc. $ 208,788.04 Calvert Variable Series, Inc. $ 201,270.34 Neuberger Berman Advisers Management Trust $ 157,988.04 Dreyfus Investment Portfolios/Dreyfus Variable Investment Fund $ 143,753.64 STI Classic Variable Trust $ 38,512.36 Premier VIT $ 13,581.86 Baron Capital Funds Trust $ 7,097.88 J.P. Morgan Series Trust II $ 4,376.19 Legg Mason Partners Variable Portfolios $ 885.00
If the revenue received from affiliated funds were included in the table above, payment to us or our affiliates by the RiverSource Variable Portfolio Funds or their affiliates would be at the top of the list. 4 - RIVERSOURCE VARIABLE ACCOUNT 10 PRINCIPAL UNDERWRITER RiverSource Distributors, Inc. (RiverSource Distributors), our affiliate, serves as principal underwriter for the contracts, which are offered on a continuous basis. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is registered with the Securities and Exchange Commission under the Securities Act of 1934 as a broker dealer and is a member of the National Association of Securities Dealers, Inc. (NASD). The contracts are offered to the public through certain securities broker-dealers that have entered into sales agreements with us and RiverSource Distributors and whose personnel are legally authorized to sell annuity and life insurance products. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial. Prior to Jan. 1, 2007, IDS Life served as the principal underwriter for the contracts. For the past three years, the aggregate dollar amount of underwriting commissions paid to IDS Life for the variable account has been: 2006: $290,026,122; 2005: $197,139,903 and 2004: $122,265,642. IDS Life retained no underwriting commission from the sale of the contracts. Effective Jan. 1, 2007, RiverSource Distributors became the principal underwriter for the contracts. RiverSource Distributors retains no underwriting commissions from the sale of the contracts. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP, independent registered public accounting firm, has audited the consolidated financial statements of RiverSource Life Insurance Company at Dec. 31, 2006 and 2005, and for each of the three years in the period ended Dec. 31, 2006, and the individual financial statements of the segregated asset subaccounts of the RiverSource Variable Account 10 which includes RiverSource Retirement Advisor Variable Annuity, RiverSource Retirement Advisor Variable Annuity - Band 3, RiverSource Retirement Advisor Advantage Variable Annuity, RiverSource Retirement Advisor Select Variable Annuity, RiverSource Retirement Advisor Advantage Variable Annuity - Band 3, RiverSource Retirement Advisor Advantage Plus Variable Annuity, RiverSource Retirement Advisor Select Plus Variable Annuity, RiverSource Retirement Advisor 4 Advantage Variable Annuity, RiverSource Retirement Advisor 4 Select Variable Annuity, RiverSource Retirement Advisor 4 Access Variable Annuity and RiverSource Flexible Portfolio Annuity at Dec. 31, 2006, and for each of the periods indicated therein, as set forth in their reports. We've included our financial statements in the SAI in reliance upon such reports given on the authority of Ernst & Young LLP as experts in accounting and auditing. RIVERSOURCE VARIABLE ACCOUNT 10 - 5 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS RIVERSOURCE LIFE INSURANCE COMPANY We have audited the accompanying individual statements of assets and liabilities of the 104 segregated asset subaccounts of RiverSource Variable Account 10 (previously IDS Life Variable Account 10), referred to in Note 1, as of December 31, 2006, and the related statements of operations and changes in net assets for the periods indicated therein. These financial statements are the responsibility of the management of RiverSource Life Insurance Company (previously IDS Life Insurance Company). Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of RiverSource Variable Account 10'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 RiverSource Variable Account 10's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2006 by correspondence with the affiliated and unaffiliated mutual fund managers. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the individual financial position of the 104 segregated asset subaccounts of RiverSource Variable Account 10, referred to in Note 1, at December 31, 2006, and the individual results of their operations and the changes in their net assets for the periods indicated therein, in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Minneapolis, Minnesota April 24, 2007 6 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, DEC. 31, 2006 SER I SER II SER I SER II SER I ------------- ------------ ------------ ------------ ------------ ------------ ASSETS Investments, at value(1),(2) $ 74,671,394 $223,711,953 $ 53,160,352 $ 69,831,722 $396,958,020 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 2,052 38,469 75,599 16,387 -- Receivable for share redemptions 58,204 214,083 47,254 145,991 941,337 ------------ ------------ ------------ ------------ ------------ Total assets 74,731,650 223,964,505 53,283,205 69,994,100 397,899,357 ============ ============ ============ ============ ============ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 50,158 153,256 35,997 47,436 400,593 Contract terminations 8,046 60,827 11,258 98,555 540,744 Payable for investments purchased 2,052 38,469 75,599 16,387 -- ------------ ------------ ------------ ------------ ------------ Total liabilities 60,256 252,552 122,854 162,378 941,337 ------------ ------------ ------------ ------------ ------------ Net assets applicable to contracts in accumulation period 74,500,269 223,674,593 53,114,547 69,805,384 394,632,991 Net assets applicable to contracts in payment period 171,125 37,360 45,804 26,338 2,325,029 Net assets applicable to seed money -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ Total net assets $ 74,671,394 $223,711,953 $ 53,160,351 $ 69,831,722 $396,958,020 ============ ============ ============ ============ ============ (1) Investment shares 2,847,879 8,634,193 2,884,447 3,839,017 14,583,322 (2) Investments, at cost $ 88,714,074 $191,459,096 $ 37,284,550 $ 51,893,257 $310,450,499 ------------ ------------ ------------ ------------ ------------
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, DEC. 31, 2006 (CONTINUED) SER I SER I SER II CARE, SER II SER II ------------------------- ------------ ------------ ------------ ------------ ------------ ASSETS Investments, at value(1),(2) $ 15,850,156 $ 30,101,537 $ 1,595,993 $ 91,681,734 $ 7,022,690 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 1,319 1,783 24,036 264,047 45,555 Receivable for share redemptions 11,043 62,925 1,101 61,532 9,442 ------------ ------------ ------------ ------------ ------------ Total assets 15,862,518 30,166,245 1,621,130 92,007,313 7,077,687 ============ ============ ============ ============ ============ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 10,665 20,275 1,101 61,532 4,726 Contract terminations 378 42,651 -- -- 4,716 Payable for investments purchased 1,319 1,783 24,036 264,047 45,555 ------------ ------------ ------------ ------------ ------------ Total liabilities 12,362 64,709 25,137 325,579 54,997 ------------ ------------ ------------ ------------ ------------ Net assets applicable to contracts in accumulation period 15,826,329 30,094,729 1,595,993 91,681,734 7,022,690 Net assets applicable to contracts in payment period 23,827 6,807 -- -- -- Net assets applicable to seed money -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ Total net assets $ 15,850,156 $ 30,101,536 $ 1,595,993 $ 91,681,734 $ 7,022,690 ============ ============ ============ ============ ============ (1) Investment shares 924,207 1,728,980 92,094 4,292,216 240,916 (2) Investments, at cost $ 10,173,585 $ 23,432,947 $ 1,534,503 $ 87,205,107 $ 6,236,471 ------------ ------------ ------------ ------------ ------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 7 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, DEC. 31, 2006 (CONTINUED) SER I CL B CL B CL B CL B ------------------------- ------------ ------------ ------------ -------------- ------------ ASSETS Investments, at value(1),(2) $ 35,223,143 $ 38,748,334 $333,791,225 $1,057,186,926 $ 729,910 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 3,322 98,535 48,466 677,427 6,277 Receivable for share redemptions 57,549 26,497 505,547 1,054,435 495 ------------ ------------ ------------ -------------- ------------ Total assets 35,284,014 38,873,366 334,345,238 1,058,918,788 736,682 ============ ============ ============ ============== ============ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 23,873 25,541 228,407 718,038 495 Contract terminations 33,676 956 277,141 336,397 -- Payable for investments purchased 3,322 98,535 48,466 677,427 6,277 ------------ ------------ ------------ -------------- ------------ Total liabilities 60,871 125,032 554,014 1,731,862 6,772 ------------ ------------ ------------ -------------- ------------ Net assets applicable to contracts in accumulation period 35,223,143 38,748,334 333,474,490 1,056,476,514 729,800 Net assets applicable to contracts in payment period -- -- 316,734 710,412 -- Net assets applicable to seed money -- -- -- -- 110 ------------ ------------ ------------ -------------- ------------ Total net assets $ 35,223,143 $ 38,748,334 $333,791,224 $1,057,186,926 $ 729,910 ============ ============ ============ ============== ============ (1) Investment shares 2,512,350 2,287,387 12,394,773 42,731,889 27,680 (2) Investments, at cost $ 29,493,115 $ 36,291,771 $261,903,414 $ 737,855,507 $ 699,908 ------------ ------------ ------------ -------------- ------------
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, DEC. 31, 2006 (CONTINUED) CL I CL II CL II CL II CL I ------------------------- ------------ ------------ ------------ -------------- ------------ ASSETS Investments, at value(1),(2) $ 66,174,158 $123,391,731 $ 3,176,150 $ 203,884,825 $627,151,221 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 128 91,926 6,943 565,793 25,568 Receivable for share redemptions 180,979 135,238 2,200 155,579 1,282,154 ------------ ------------ ------------ -------------- ------------ Total assets 66,355,265 123,618,895 3,185,293 204,606,197 628,458,943 ============ ============ ============ ============== ============ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 44,988 84,429 2,147 137,167 573,419 Contract terminations 135,991 50,809 53 18,412 708,735 Payable for investments purchased 128 91,926 6,943 565,793 25,568 ------------ ------------ ------------ -------------- ------------ Total liabilities 181,107 227,164 9,143 721,372 1,307,722 ------------ ------------ ------------ -------------- ------------ Net assets applicable to contracts in accumulation period 66,014,495 123,213,005 3,176,150 203,884,825 624,638,642 Net assets applicable to contracts in payment period 159,663 178,726 -- -- 2,512,579 Net assets applicable to seed money -- -- -- -- -- ------------ ------------ ------------ -------------- ------------ Total net assets $ 66,174,158 $123,391,731 $ 3,176,150 $ 203,884,825 $627,151,221 ============ ============ ============ ============== ============ (1) Investment shares 6,538,948 12,217,003 235,445 20,429,341 71,756,433 (2) Investments, at cost $ 56,914,076 $ 81,926,984 $ 3,107,935 $ 202,888,491 $499,330,183 ------------ ------------ ------------ -------------- ------------
See accompanying notes to financial statements. 8 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- AC VP COL COL MARSICO COL MARSICO VAL, CALVERT VS HI YIELD, GRO, INTL OPP, DEC. 31, 2006 (CONTINUED) CL II SOCIAL BAL VS CL B VS CL A VS CL B ------------------------- ------------ ------------ ------------- ------------- ------------ ASSETS Investments, at value(1),(2) $437,608,479 $ 56,141,864 $ 114,551,839 $ 331,754,198 $169,997,946 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 39,416 10,395 103,893 836,593 530,817 Receivable for share redemptions 729,285 49,706 81,737 224,669 114,517 ------------ ------------ ------------- ------------- ------------ Total assets 438,377,180 56,201,965 114,737,469 332,815,460 170,643,280 ============ ============ ============= ============= ============ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 301,553 38,885 80,303 224,670 114,518 Contract terminations 427,732 10,821 1,434 -- -- Payable for investments purchased 39,416 10,395 103,893 836,593 530,817 ------------ ------------ ------------- ------------- ------------ Total liabilities 768,701 60,101 185,630 1,061,263 645,335 ------------ ------------ ------------- ------------- ------------ Net assets applicable to contracts in accumulation period 436,944,876 56,023,255 114,538,218 331,749,010 169,977,143 Net assets applicable to contracts in payment period 663,603 118,609 13,621 5,187 20,802 Net assets applicable to seed money -- -- -- -- -- ------------ ------------ ------------- ------------- ------------ Total net assets $437,608,479 $ 56,141,864 $ 114,551,839 $ 331,754,197 $169,997,945 ============ ============ ============= ============= ============ (1) Investment shares 50,126,974 27,656,091 9,935,112 17,479,146 7,744,781 (2) Investments, at cost $375,011,476 $ 50,158,246 $ 110,023,134 $ 307,524,161 $152,674,478 ------------ ------------ ------------- ------------- ------------
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY MID-CAP SM CAP INTL EQ, INTL VAL, DEC. 31, 2006 (CONTINUED) RETURN CORE CORE I SERV SERV ------------------------- ------------ ------------ ------------- ------------- ------------ ASSETS Investments, at value(1),(2) $137,217,868 $ 25,342,871 $ 208,261,571 $ 1,844,513 $ 1,351,009 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 375,968 -- -- 1,022 9,829 Receivable for share redemptions 217,997 51,119 546,038 2,505 960 ------------ ------------ ------------- ------------- ------------ Total assets 137,811,833 25,393,990 208,807,609 1,848,040 1,361,798 ============ ============ ============= ============= ============ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 93,740 17,264 210,936 1,361 954 Contract terminations 124,257 33,855 335,103 1,144 6 Payable for investments purchased 375,968 -- -- 1,022 9,829 ------------ ------------ ------------- ------------- ------------ Total liabilities 593,965 51,119 546,039 3,527 10,789 ------------ ------------ ------------- ------------- ------------ Net assets applicable to contracts in accumulation period 137,217,868 25,325,816 207,521,229 1,844,513 1,351,009 Net assets applicable to contracts in payment period -- 17,055 740,341 -- -- Net assets applicable to seed money -- -- -- -- -- ------------ ------------ ------------- ------------- ------------ Total net assets $137,217,868 $ 25,342,871 $ 208,261,570 $ 1,844,513 $ 1,351,009 ============ ============ ============= ============= ============ (1) Investment shares 13,232,196 1,885,630 13,350,101 91,996 69,389 (2) Investments, at cost $139,742,773 $ 24,834,848 $ 212,483,217 $ 1,704,374 $ 1,265,343 ------------ ------------ ------------- ------------- ------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 9 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- EV VT EG VA EG VA FID VIP FID VIP FLOATING-RATE FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, DEC. 31, 2006 (CONTINUED) INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL ------------------------- ------------- ------------ -------------- -------------- ------------ ASSETS Investments, at value(1),(2) $ 306,684,071 $ 32,620,279 $ 71,677,408 $ 654,611,294 $209,031,284 Dividends receivable 1,570,870 -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 1,095,193 10,747 20,211 1,833,839 114 Receivable for share redemptions 212,363 40,113 85,992 441,362 257,504 ------------- ------------ -------------- -------------- ------------ Total assets 309,562,497 32,671,139 71,783,611 656,886,495 209,288,902 ============= ============ ============== ============== ============ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 212,362 22,440 50,385 441,362 141,591 Contract terminations -- 17,673 35,607 -- 115,913 Payable for investments purchased 2,666,064 10,747 20,211 1,833,839 114 ------------- ------------ -------------- -------------- ------------ Total liabilities 2,878,426 50,860 106,203 2,275,201 257,618 ------------- ------------ -------------- -------------- ------------ Net assets applicable to contracts in accumulation period 306,684,071 32,549,980 71,658,532 654,524,665 208,565,188 Net assets applicable to contracts in payment period -- 70,215 18,876 86,629 466,096 Net assets applicable to seed money -- 84 -- -- -- ------------- ------------ -------------- -------------- ------------ Total net assets $ 306,684,071 $ 32,620,279 $ 71,677,408 $ 654,611,294 $209,031,284 ============= ============ ============== ============== ============ (1) Investment shares 30,546,222 1,670,265 4,446,489 21,041,829 13,056,295 (2) Investments, at cost $ 306,529,023 $ 27,013,376 $ 60,956,351 $ 659,894,764 $185,671,380 ------------- ------------ -------------- -------------- ------------
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, DEC. 31, 2006 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ------------------------- ------------- ------------ -------------- -------------- ------------ ASSETS Investments, at value(1),(2) $ 417,155,182 $413,295,616 $1,208,846,883 $ 102,498,316 $248,078,486 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 117 189 817,325 10,778 38,332 Receivable for share redemptions 473,193 592,555 849,882 69,003 454,790 ------------- ------------ -------------- -------------- ------------ Total assets 417,628,492 413,888,360 1,210,514,090 102,578,097 248,571,608 ============= ============ ============== ============== ============ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 286,261 278,877 829,836 69,003 170,941 Contract terminations 186,932 313,677 20,047 -- 283,848 Payable for investments purchased 117 189 817,325 10,778 38,332 ------------- ------------ -------------- -------------- ------------ Total liabilities 473,310 592,743 1,667,208 79,781 493,121 ------------- ------------ -------------- -------------- ------------ Net assets applicable to contracts in accumulation period 416,393,574 412,141,496 1,208,050,334 102,076,131 247,678,132 Net assets applicable to contracts in payment period 761,608 1,154,121 796,548 422,185 400,355 Net assets applicable to seed money -- -- -- -- -- ------------- ------------ -------------- -------------- ------------ Total net assets $ 417,155,182 $413,295,617 $1,208,846,882 $ 102,498,316 $248,078,487 ============= ============ ============== ============== ============ (1) Investment shares 26,302,344 11,948,413 35,294,799 4,295,822 10,445,410 (2) Investments, at cost $ 328,387,189 $252,194,662 $ 952,937,402 $ 76,959,278 $164,883,125 ------------- ------------ -------------- -------------- ------------
See accompanying notes to financial statements. 10 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ FTVIPT FRANK FTVIPT FRANK FTVIPT FTVIPT FTVIPT GLOBAL REAL EST, SM CAP VAL, MUTUAL SHARES TEMP DEV MKTS TEMP FOR DEC. 31, 2006 (CONTINUED) CL 2 CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 ------------------------- ---------------- ------------ ------------- -------------- ------------ ASSETS Investments, at value(1),(2) $ 773,536,215 $380,878,128 $ 309,114,172 $ 252,257,533 $ 51,831,219 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 103,161 86,297 64,465 -- -- Receivable for share redemptions 1,256,314 585,238 463,296 766,760 57,600 ---------------- ------------ ------------- -------------- ------------ Total assets 774,895,690 381,549,663 309,641,933 253,024,293 51,888,819 ================ ============ ============= ============== ============ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 527,049 260,962 216,073 254,546 35,149 Contract terminations 729,265 324,276 247,222 512,214 22,451 Payable for investments purchased 103,161 86,297 64,465 -- -- ---------------- ------------ ------------- -------------- ------------ Total liabilities 1,359,475 671,535 527,760 766,760 57,600 ---------------- ------------ ------------- -------------- ------------ Net assets applicable to contracts in accumulation period 772,690,536 380,557,029 308,668,311 251,452,132 51,618,138 Net assets applicable to contracts in payment period 845,679 321,099 445,862 805,401 213,081 Net assets applicable to seed money -- -- -- -- -- ---------------- ------------ ------------- -------------- ------------ Total net assets $ 773,536,215 $380,878,128 $ 309,114,173 $ 252,257,533 $ 51,831,219 ================ ============ ============= ============== ============ (1) Investment shares 22,304,966 20,270,257 15,100,839 18,121,949 2,768,762 (2) Investments, at cost $ 532,986,121 $264,632,818 $ 245,035,824 $ 139,427,766 $ 34,430,956 ---------------- ------------ ------------- -------------- ------------
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM STRUCTD U.S. GLOBAL TECH, INTL GRO, DEC. 31, 2006 (CONTINUED) VAL, INST CAP EQ, INST EQ, INST SERV SERV ------------------------- ---------------- ------------ ------------- -------------- ------------ ASSETS Investments, at value(1),(2) $ 835,017,909 $ 37,272,147 $ 524,190,859 $ 23,643,711 $192,641,557 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 54,695 -- 235,592 4,962 -- Receivable for share redemptions 994,643 25,479 396,917 15,900 386,929 ---------------- ------------ ------------- -------------- ------------ Total assets 836,067,247 37,297,626 524,823,368 23,664,573 193,028,486 ================ ============ ============= ============== ============ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 571,028 25,397 357,424 15,900 129,155 Contract terminations 423,614 82 39,493 -- 257,774 Payable for investments purchased 54,695 -- 235,592 4,962 -- ---------------- ------------ ------------- -------------- ------------ Total liabilities 1,049,337 25,479 632,509 20,862 386,929 ---------------- ------------ ------------- -------------- ------------ Net assets applicable to contracts in accumulation period 834,299,667 37,213,950 523,646,208 23,565,786 192,439,327 Net assets applicable to contracts in payment period 718,243 58,197 544,651 77,925 202,230 Net assets applicable to seed money -- -- -- -- -- ---------------- ------------ ------------- -------------- ------------ Total net assets $ 835,017,910 $ 37,272,147 $ 524,190,859 $ 23,643,711 $192,641,557 ================ ============ ============= ============== ============ (1) Investment shares 51,896,700 2,581,174 35,732,165 5,537,169 3,806,393 (2) Investments, at cost $ 743,932,651 $ 29,842,331 $ 436,520,923 $ 31,908,872 $110,830,857 ---------------- ------------ ------------- -------------- ------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 11 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- JANUS ASPEN LAZARD LM PTNRS MFS MFS MID CAP GRO, RETIRE VAR SM CAP INV GRO STOCK, NEW DIS, DEC. 31, 2006 (CONTINUED) SERV INTL EQ, SERV GRO, CL II SERV CL SERV CL ------------------------- ------------ -------------- ------------- -------------- ------------- ASSETS Investments, at value(1),(2) $ 30,258,127 $ 207,521,839 $ 2,517,259 $136,819,006 $ 98,902,083 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 5,265 -- 2,679 78,423 20 Receivable for share redemptions 30,731 242,204 66,947 155,934 237,954 ------------ ------------- ------------- ------------- ------------- Total assets 30,294,123 207,764,043 2,586,885 137,053,363 99,140,057 ============ ============= ============= ============= ============= LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 20,116 141,845 1,728 93,713 67,957 Contract terminations 10,615 100,359 65,219 62,221 169,997 Payable for investments purchased 5,265 -- 2,679 78,423 20 ------------ ------------- ------------- ------------- ------------- Total liabilities 35,996 242,204 69,626 234,357 237,974 ------------ ------------- ------------- ------------- ------------- Net assets applicable to contracts in accumulation period 30,244,976 207,037,169 2,517,089 136,541,826 98,808,511 Net assets applicable to contracts in payment period 13,151 484,670 -- 277,180 93,572 Net assets applicable to seed money -- -- 170 -- -- ------------ ------------- ------------- ------------- ------------- Total net assets $ 30,258,127 $ 207,521,839 $ 2,517,259 $136,819,006 $ 98,902,083 ============ ============= ============= ============= ============= (1) Investment shares 939,985 13,936,994 173,007 13,117,834 5,766,885 (2) Investments, at cost $ 34,085,073 $ 145,916,697 $ 2,515,754 $129,464,264 $ 81,394,765 ------------ ------------- ------------- ------------- -------------
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- MFS MFS NB AMT NB AMT SOC OPPEN TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, GLOBAL SEC VA, DEC. 31, 2006 (CONTINUED) SERV CL SERV CL CL S CL S SERV ------------------------- ------------- ------------- ------------- ------------ -------------- ASSETS Investments, at value(1),(2) $ 106,831,274 $ 254,044,012 $ 160,105,820 $ 530,352 $ 176,343,816 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 65,452 113,754 477,665 976 84,238 Receivable for share redemptions 76,343 293,607 108,236 573 242,175 ------------- ------------- ------------- ------------ ------------- Total assets 106,973,069 254,451,373 160,691,721 531,901 176,670,229 ============= ============= ============= ============ ============= LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 76,343 173,022 108,236 385 123,043 Contract terminations -- 120,586 -- 189 119,132 Payable for investments purchased 65,452 113,754 477,665 976 84,238 ------------- ------------- ------------- ------------ ------------- Total liabilities 141,795 407,362 585,901 1,550 326,413 ------------- ------------- ------------- ------------ ------------- Net assets applicable to contracts in accumulation period 106,606,815 253,760,548 160,105,820 530,265 176,204,675 Net assets applicable to contracts in payment period 224,459 283,463 -- -- 139,141 Net assets applicable to seed money -- -- -- 86 -- ------------- ------------- ------------- ------------ ------------- Total net assets $ 106,831,274 $ 254,044,011 $ 160,105,820 $ 530,351 $ 176,343,816 ============= ============= ============= ============ ============= (1) Investment shares 4,929,916 8,757,119 11,204,046 31,777 4,832,661 (2) Investments, at cost $ 100,132,307 $ 184,312,073 $ 142,297,668 $ 498,673 $ 148,244,502 ------------- ------------- ------------- ------------ -------------
See accompanying notes to financial statements. 12 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- OPPEN OPPEN OPPEN PIMCO VIT PIONEER MAIN ST SM STRATEGIC VAL VA, ALL ASSET, EQ INC VCT, DEC. 31, 2006 (CONTINUED) CAP VA, SERV BOND VA, SERV SERV ADVISOR CL CL II ------------------------- ------------- ------------- ------------- ------------ ------------- ASSETS Investments, at value(1),(2) $ 113,491,896 $ 936,135,727 $ 395,618 $460,232,672 $ 69,591,303 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 137,041 2,157,857 734 1,260,066 -- Receivable for share redemptions 225,590 641,614 279 314,802 97,416 ------------- ------------- ------------- ------------ ------------- Total assets 113,854,527 938,935,198 396,631 461,807,540 69,688,719 ============= ============= ============= ============ ============= LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 79,301 641,614 279 314,802 48,032 Contract terminations 146,290 -- -- -- 49,384 Payable for investments purchased 137,041 2,157,857 734 1,260,066 -- ------------- ------------- ------------- ------------ ------------- Total liabilities 362,632 2,799,471 1,013 1,574,868 97,416 ------------- ------------- ------------- ------------ ------------- Net assets applicable to contracts in accumulation period 113,424,715 935,492,215 395,458 460,232,672 69,405,174 Net assets applicable to contracts in payment period 67,180 643,512 -- -- 186,129 Net assets applicable to seed money -- -- 160 -- -- ------------- ------------- ------------- ------------ ------------- Total net assets $ 113,491,895 $ 936,135,727 $ 395,618 $460,232,672 $ 69,591,303 ============= ============= ============= ============ ============= (1) Investment shares 5,979,552 175,306,316 34,193 39,403,482 2,775,880 (2) Investments, at cost $ 99,126,562 $ 900,503,890 $ 417,087 $460,849,279 $ 50,222,306 ------------- ------------- ------------- ------------ -------------
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- PIONEER PUT VT PUT VT PUT VT PUT VT INTL VAL VCT, HLTH SCIENCES, INTL EQ, INTL NEW OPP, NEW OPP, DEC. 31, 2006 (CONTINUED) CL II CL IB CL IB CL IB CL IA ------------------------- ------------- ------------- ------------- ------------ ------------- ASSETS Investments, at value(1),(2) $ 8,667,592 $ 51,796,301 $ 102,619,520 $ 94,462,845 $ 223,046,745 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 36,711 7,285 19,961 -- -- Receivable for share redemptions 7,415 69,259 287,259 106,518 632,191 ------------- ------------- ------------- ------------ ------------- Total assets 8,711,718 51,872,845 102,926,740 94,569,363 223,678,936 ============= ============= ============= ============ ============= LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 2,834 35,456 70,152 63,248 225,128 Contract terminations 4,581 33,804 217,108 43,270 407,063 Payable for investments purchased 36,711 7,285 19,961 -- -- ------------- ------------- ------------- ------------ ------------- Total liabilities 44,126 76,545 307,221 106,518 632,191 ------------- ------------- ------------- ------------ ------------- Net assets applicable to contracts in accumulation period 8,667,517 51,745,508 102,583,471 94,383,724 222,067,949 Net assets applicable to contracts in payment period -- 50,792 36,048 79,121 978,796 Net assets applicable to seed money 75 -- -- -- -- ------------- ------------- ------------- ------------ ------------- Total net assets $ 8,667,592 $ 51,796,300 $ 102,619,519 $ 94,462,845 $ 223,046,745 ============= ============= ============= ============ ============= (1) Investment shares 520,264 3,808,552 4,971,876 5,176,046 10,955,145 (2) Investments, at cost $ 8,605,294 $ 44,739,064 $ 59,312,842 $ 88,778,647 $ 250,281,171 ------------- ------------- ------------- ------------ -------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 13 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------------ PUT VT VISTA, RVS VP RVS VP RVS VP RVS VP DEC. 31, 2006 (CONTINUED) CL IB BAL CASH MGMT CORE BOND DIV BOND ------------------------- --------------- -------------- -------------- -------------- --------------- ASSETS Investments, at value(1),(2) $ 84,667,568 $ 471,287,856 $ 791,280,469 $ 62,490,982 $ 1,824,890,065 Dividends receivable -- -- 2,825,748 199,391 6,592,018 Accounts receivable from RiverSource Life for contract purchase payments 28,650 162,009 1,270,891 138,767 2,875,024 Receivable for share redemptions 125,241 -- -- -- -- --------------- -------------- -------------- -------------- --------------- Total assets 84,821,459 471,449,865 795,377,108 62,829,140 1,834,357,107 =============== ============== ============== ============== =============== LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 57,162 402,582 578,714 44,041 1,319,532 Contract terminations 68,080 157,388 724,152 12,378 133,655 Payable for investments purchased 28,650 -- -- -- -- --------------- -------------- -------------- -------------- --------------- Total liabilities 153,892 559,970 1,302,866 56,419 1,453,187 --------------- -------------- -------------- -------------- --------------- Net assets applicable to contracts in accumulation period 84,479,858 464,956,839 793,808,368 62,759,477 1,828,013,764 Net assets applicable to contracts in payment period 187,709 5,933,056 265,874 11,158 4,890,156 Net assets applicable to seed money -- -- -- 2,086 -- --------------- -------------- -------------- -------------- --------------- Total net assets $ 84,667,567 $ 470,889,895 $ 794,074,242 $ 62,772,721 $ 1,832,903,920 =============== ============== ============== ============== =============== (1) Investment shares 5,759,698 30,185,993 791,562,684 6,367,789 174,267,844 (2) Investments, at cost $ 102,900,695 $ 490,974,172 $ 791,289,936 $ 62,860,796 $ 1,827,313,037 --------------- -------------- -------------- -------------- ---------------
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP FUNDAMENTAL RVS VP GLOBAL INFLATION DEC. 31, 2006 (CONTINUED) DIV EQ INC EMER MKTS VAL GLOBAL BOND PROT SEC ------------------------- --------------- -------------- -------------- -------------- ---------------- ASSETS Investments, at value(1),(2) $ 2,199,638,242 $ 379,497,041 $ 370,528,170 $ 645,441,595 $ 438,604,874 Dividends receivable -- -- -- 1,076,840 -- Accounts receivable from RiverSource Life for contract purchase payments 1,495,004 341,578 995,314 982,152 1,034,612 Receivable for share redemptions -- -- -- -- -- --------------- -------------- -------------- -------------- --------------- Total assets 2,201,133,246 379,838,619 371,523,484 647,500,587 439,639,486 =============== ============== ============== ============== =============== LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 1,496,355 256,670 251,981 467,997 303,642 Contract terminations 464,922 378,033 -- 33,779 3,367 Payable for investments purchased -- -- -- -- -- --------------- -------------- -------------- -------------- --------------- Total liabilities 1,961,277 634,703 251,981 501,776 307,009 --------------- -------------- -------------- -------------- --------------- Net assets applicable to contracts in accumulation period 2,195,961,005 379,171,932 371,271,503 646,549,939 439,290,392 Net assets applicable to contracts in payment period 3,210,964 31,984 -- 448,872 42,085 Net assets applicable to seed money -- -- -- -- -- --------------- -------------- -------------- -------------- --------------- Total net assets $ 2,199,171,969 $ 379,203,916 $ 371,271,503 $ 646,998,811 $ 439,332,477 =============== ============== ============== ============== =============== (1) Investment shares 142,120,578 21,872,133 33,942,257 59,198,711 44,949,411 (2) Investments, at cost $ 1,866,705,737 $ 306,524,956 $ 342,320,625 $ 630,808,380 $ 446,327,579 --------------- -------------- -------------- -------------- ---------------
See accompanying notes to financial statements. 14 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP DEC. 31, 2006 (CONTINUED) GRO HI YIELD BOND INC OPP INTL OPP LG CAP EQ ------------------------- -------------- -------------- -------------- -------------- --------------- ASSETS Investments, at value(1),(2) $ 449,437,869 $ 900,043,052 $ 343,177,919 $ 420,342,891 $ 1,329,755,262 Dividends receivable -- 5,750,732 1,866,242 -- -- Accounts receivable from RiverSource Life for contract purchase payments 155,541 662,315 906,655 13,227 1,879 Receivable for share redemptions -- -- -- -- -- -------------- -------------- -------------- -------------- --------------- Total assets 449,593,410 906,456,099 345,950,816 420,356,118 1,329,757,141 ============== ============== ============== ============== =============== LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 305,063 678,532 238,386 362,049 1,083,274 Contract terminations 134,007 231,923 2,826 369,365 1,460,418 Payable for investments purchased -- -- -- -- -- -------------- -------------- -------------- -------------- --------------- Total liabilities 439,070 910,455 241,212 731,414 2,543,692 -------------- -------------- -------------- -------------- --------------- Net assets applicable to contracts in accumulation period 448,173,447 902,776,210 345,655,334 418,061,369 1,317,073,215 Net assets applicable to contracts in payment period 980,893 2,769,434 54,270 1,563,335 10,140,234 Net assets applicable to seed money -- -- -- -- -- -------------- -------------- -------------- -------------- --------------- Total net assets $ 449,154,340 $ 905,545,644 $ 345,709,604 $ 419,624,704 $ 1,327,213,449 ============== ============== ============== ============== =============== (1) Investment shares 59,933,619 131,311,414 33,261,984 31,875,517 53,103,773 (2) Investments, at cost $ 453,633,422 $ 901,715,099 $ 337,815,291 $ 349,853,178 $ 1,225,222,585 -------------- -------------- -------------- -------------- ---------------
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP DEC. 31, 2006 (CONTINUED) LG CAP VAL MID CAP GRO MID CAP VAL S&P 500 SELECT VAL ------------------------- -------------- -------------- -------------- -------------- --------------- ASSETS Investments, at value(1),(2) $ 24,383,350 $ 222,647,076 $ 346,866,375 $ 276,961,792 $ 27,590,673 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 106,142 1,504 923,128 9,537 43,854 Receivable for share redemptions -- -- -- -- -- -------------- -------------- -------------- -------------- --------------- Total assets 24,489,492 222,648,580 347,789,503 276,971,329 27,634,527 ============== ============== ============== ============== =============== LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 15,529 178,120 234,015 189,808 17,989 Contract terminations 18,402 462,320 22,465 138,377 1 Payable for investments purchased -- -- -- -- -- -------------- -------------- -------------- -------------- --------------- Total liabilities 33,931 640,440 256,480 328,185 17,990 -------------- -------------- -------------- -------------- --------------- Net assets applicable to contracts in accumulation period 20,380,617 221,005,773 347,499,563 275,750,804 23,714,111 Net assets applicable to contracts in payment period 18,250 1,002,367 33,460 892,340 14,438 Net assets applicable to seed money 4,056,694 -- -- -- 3,887,988 -------------- -------------- -------------- -------------- --------------- Total net assets $ 24,455,561 $ 222,008,140 $ 347,533,023 $ 276,643,144 $ 27,616,537 ============== ============== ============== ============== =============== (1) Investment shares 1,994,297 19,498,139 25,721,305 28,881,185 2,425,740 (2) Investments, at cost $ 21,618,371 $ 222,349,890 $ 324,987,614 $ 220,566,888 $ 26,336,570 -------------- -------------- -------------- -------------- ---------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 15 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------------- ROYCE RVS VP RVS VP RVS VP MICRO-CAP, THIRD AVE DEC. 31, 2006 (CONTINUED) SHORT DURATION SM CAP ADV SM CAP VAL INVEST CI VAL ------------------------- -------------- -------------- -------------- -------------- --------------- ASSETS Investments, at value(1),(2) $ 330,825,012 $ 170,843,356 $ 480,217,446 $ 135,982,689 $ 189,566,384 Dividends receivable 1,018,322 -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 439,113 12,224 409,199 -- 37 Receivable for share redemptions -- -- -- 289,215 330,994 -------------- -------------- -------------- -------------- --------------- Total assets 332,282,447 170,855,580 480,626,645 136,271,904 189,897,415 ============== ============== ============== ============== =============== LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 230,261 117,251 324,928 92,080 128,173 Contract terminations 61,102 334,038 216,283 197,135 202,821 Payable for investments purchased -- -- -- -- 37 -------------- -------------- -------------- -------------- --------------- Total liabilities 291,363 451,289 541,211 289,215 331,031 -------------- -------------- -------------- -------------- --------------- Net assets applicable to contracts in accumulation period 331,170,747 170,070,015 479,545,958 135,667,441 189,056,060 Net assets applicable to contracts in payment period 820,337 334,194 539,476 315,248 510,324 Net assets applicable to seed money -- 82 -- -- -- -------------- -------------- -------------- -------------- --------------- Total net assets $ 331,991,084 $ 170,404,291 $ 480,085,434 $ 135,982,689 $ 189,566,384 ============== ============== ============== ============== =============== (1) Investment shares 32,653,335 13,114,603 32,255,986 9,443,242 6,352,761 (2) Investments, at cost $ 338,318,230 $ 158,539,012 $ 419,952,201 $ 86,017,566 $ 110,344,950 -------------- -------------- -------------- -------------- ---------------
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL REAL MID CAP GRO, WANGER WANGER DEC. 31, 2006 (CONTINUED) CL II EST, CL II CL II INTL SM CAP U.S. SM CO ------------------------- -------------- -------------- -------------- -------------- --------------- ASSETS Investments, at value(1),(2) $ 810,354,441 $ 169,621,137 $ 100,351,787 $ 857,315,983 $ 890,483,857 Dividends receivable -- -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 1,237,333 417,239 307,665 492,473 373,614 Receivable for share redemptions 566,145 133,652 68,166 1,611,839 655,932 -------------- -------------- -------------- -------------- --------------- Total assets 812,157,919 170,172,028 100,727,618 859,420,295 891,513,403 ============== ============== ============== ============== =============== LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 555,921 114,645 68,166 582,813 611,772 Contract terminations 10,225 19,007 -- 1,029,024 44,159 Payable for investments purchased 1,237,333 417,239 307,665 492,473 373,614 -------------- -------------- -------------- -------------- --------------- Total liabilities 1,803,479 550,891 375,831 2,104,310 1,029,545 -------------- -------------- -------------- -------------- --------------- Net assets applicable to contracts in accumulation period 810,235,872 169,621,137 100,351,787 856,775,666 889,738,332 Net assets applicable to contracts in payment period 118,568 -- -- 540,319 745,526 Net assets applicable to seed money -- -- -- -- -- -------------- -------------- -------------- -------------- --------------- Total net assets $ 810,354,440 $ 169,621,137 $ 100,351,787 $ 857,315,985 $ 890,483,858 ============== ============== ============== ============== =============== (1) Investment shares 55,126,152 14,029,871 8,079,854 20,524,682 24,490,755 (2) Investments, at cost $ 733,092,398 $ 147,139,884 $ 92,415,156 $ 537,433,287 $ 657,917,612 -------------- -------------- -------------- -------------- ---------------
See accompanying notes to financial statements. 16 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF ASSETS AND LIABILITIES
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------- WF ADV VT WF ADV VT WF ADV VT WF ADV VT DEC. 31, 2006 (CONTINUED) ASSET ALLOC INTL CORE OPP SM CAP GRO ------------------------- ------------ ------------ ------------ ------------ ASSETS Investments, at value(1),(2) $ 97,390,097 $ 19,826,792 $ 93,492,997 $ 60,200,636 Dividends receivable -- -- -- -- Accounts receivable from RiverSource Life for contract purchase payments 22,997 18 7,341 17,386 Receivable for share redemptions 289,152 32,643 119,069 202,822 ------------ ------------ ------------ ------------ Total assets 97,702,246 19,859,453 93,619,407 60,420,844 ============ ============ ============ ============ LIABILITIES Payable to RiverSource Life for: Mortality and expense risk fee 66,362 13,598 63,990 40,666 Contract terminations 222,790 19,045 55,079 162,156 Payable for investments purchased 22,997 18 7,341 17,386 ------------ ------------ ------------ ------------ Total liabilities 312,149 32,661 126,410 220,208 ------------ ------------ ------------ ------------ Net assets applicable to contracts in accumulation period 97,109,434 19,826,792 93,417,081 60,179,614 Net assets applicable to contracts in payment period 280,663 -- 75,916 21,022 Net assets applicable to seed money -- -- -- -- ------------ ------------ ------------ ------------ Total net assets $ 97,390,097 $ 19,826,792 $ 93,492,997 $ 60,200,636 ============ ============ ============ ============ (1) Investment shares 6,892,434 2,008,794 3,892,298 6,044,241 (2) Investments, at cost $ 83,487,903 $ 14,880,066 $ 72,081,505 $ 44,550,877 ------------ ------------ ------------ ------------
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 17 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, YEAR ENDED DEC. 31, 2006 SER I SER II SER I SER II SER I ------------------------ ------------ ------------ ------------ ------------- ------------- INVESTMENT INCOME Dividend income $ 42,742 $ -- $ -- $ -- $ 2,164,943 Variable account expenses 661,159 2,177,607 462,522 544,867 5,548,847 ------------ ------------ ------------ ------------- ------------- Investment income (loss) -- net (618,417) (2,177,607) (462,522) (544,867) (3,383,904) ============ ============ ============ ============= ============= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 12,217,068 71,296,215 9,972,574 7,489,330 154,168,232 Cost of investments sold 15,149,545 66,232,876 7,287,496 5,657,654 130,710,206 ------------ ------------ ------------ ------------- ------------- Net realized gain (loss) on sales of investments (2,932,477) 5,063,339 2,685,078 1,831,676 23,458,026 Distributions from capital gains -- -- 921,289 1,215,189 -- Net change in unrealized appreciation or depreciation of investments 7,423,354 5,067,183 4,633,445 6,160,090 41,412,446 ------------ ------------ ------------ ------------- ------------- Net gain (loss) on investments 4,490,877 10,130,522 8,239,812 9,206,955 64,870,472 ------------ ------------ ------------ ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 3,872,460 $ 7,952,915 $ 7,777,290 $ 8,662,088 $ 61,486,568 ============ ============ ============ ============= =============
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, PERIOD ENDED DEC. 31, 2006 (CONTINUED) SER I SER I SER II(1) CARE, SER II(2) SER II -------------------------------------- ------------ ------------ ------------ ------------- ------------- INVESTMENT INCOME Dividend income $ -- $ 444,118 $ 19,480 $ -- $ 56,179 Variable account expenses 138,649 221,528 2,961 275,777 25,474 ------------ ------------ ------------ ------------- ------------- Investment income (loss) -- net (138,649) 222,590 16,519 (275,777) 30,705 ============ ============ ============ ============= ============= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 3,735,626 3,568,065 14,094 860,130 309,701 Cost of investments sold 2,571,701 2,922,730 13,451 804,555 295,984 ------------ ------------ ------------ ------------- ------------- Net realized gain (loss) on sales of investments 1,163,925 645,335 643 55,575 13,717 Distributions from capital gains -- 171,530 7,541 -- -- Net change in unrealized appreciation or depreciation of investments 1,242,939 2,782,884 61,490 4,476,627 777,708 ------------ ------------ ------------ ------------- ------------- Net gain (loss) on investments 2,406,864 3,599,749 69,674 4,532,202 791,425 ------------ ------------ ------------ ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 2,268,215 $ 3,822,339 $ 86,193 $ 4,256,425 $ 822,130 ============ ============ ============ ============= =============
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, PERIOD ENDED DEC. 31, 2006 (CONTINUED) SER I CL B CL B CL B CL B(1) -------------------------------------- ------------ ------------ ------------ ------------- ------------- INVESTMENT INCOME Dividend income $ -- $ -- $ 3,772,525 $ 9,771,604 $ -- Variable account expenses 340,400 176,585 2,775,398 6,870,222 1,465 ------------ ------------ ------------ ------------- ------------- Investment income (loss) -- net (340,400) (176,585) 997,127 2,901,382 (1,465) ============ ============ ============ ============= ============= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 11,955,039 4,701,223 45,392,397 33,177,430 3,712 Cost of investments sold 11,112,086 4,993,903 38,517,475 25,471,181 3,574 ------------ ------------ ------------ ------------- ------------- Net realized gain (loss) on sales of investments 842,953 (292,680) 6,874,922 7,706,249 138 Distributions from capital gains -- -- 16,938,384 13,889,637 -- Net change in unrealized appreciation or depreciation of investments 2,233,515 2,489,649 22,680,669 204,018,296 30,002 ------------ ------------ ------------ ------------- ------------- Net gain (loss) on investments 3,076,468 2,196,969 46,493,975 225,614,182 30,140 ------------ ------------ ------------ ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 2,736,068 $ 2,020,384 $ 47,491,102 $ 228,515,564 $ 28,675 ============ ============ ============ ============= =============
See accompanying notes to financial statements. 18 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------- AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, PERIOD ENDED DEC. 31, 2006 (CONTINUED) CL I CL II CL II(1) CL II CL I -------------------------------------- ------------ ------------ ------------- ------------- ------------- INVESTMENT INCOME Dividend income $ 1,039,109 $ 1,565,523 $ 12,652 $ -- $ 9,807,733 Variable account expenses 547,641 974,163 5,548 941,132 7,671,653 ------------ ------------ ------------- ------------- ------------- Investment income (loss) -- net 491,468 591,360 7,104 (941,132) 2,136,080 ============ ============ ============= ============= ============= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 11,304,179 11,043,105 37,786 18,281,913 209,831,957 Cost of investments sold 10,901,832 8,177,631 36,150 20,370,190 182,208,604 ------------ ------------ ------------- ------------- ------------- Net realized gain (loss) on sales of investments 402,347 2,865,474 1,636 (2,088,277) 27,623,353 Distributions from capital gains -- -- 70,091 -- 61,868,698 Net change in unrealized appreciation or depreciation of investments 12,668,327 20,073,367 68,215 1,267,269 11,778,471 ------------ ------------ ------------- ------------- ------------- Net gain (loss) on investments 13,070,674 22,938,841 139,942 (821,008) 101,270,522 ------------ ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 13,562,142 $ 23,530,201 $ 147,046 $ (1,762,140) $ 103,406,602 ============ ============ ============= ============= =============
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ AC VP COL COL MARSICO COL MARSICO VAL, CALVERT VS HI YIELD, GRO, INTL OPP, PERIOD ENDED DEC. 31, 2006 (CONTINUED) CL II SOCIAL BAL VS CL B(3) VS CL A(2) VS CL B(2) -------------------------------------- ------------ ------------ ------------- ------------- ------------- INVESTMENT INCOME Dividend income $ 4,815,032 $ 1,263,777 $ 2,629,039 $ -- $ 293,267 Variable account expenses 3,494,753 474,799 612,657 973,271 488,393 ------------ ------------ ------------- ------------- ------------- Investment income (loss) -- net 1,320,279 788,978 2,016,382 (973,271) (195,126) ============ ============ ============= ============= ============= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 39,194,786 7,253,808 30,641,498 2,152,859 2,884,714 Cost of investments sold 36,878,777 6,541,317 30,693,147 2,041,127 2,745,518 ------------ ------------ ------------- ------------- ------------- Net realized gain (loss) on sales of investments 2,316,009 712,491 (51,649) 111,732 139,196 Distributions from capital gains 34,156,049 969,776 915,184 -- 3,095,765 Net change in unrealized appreciation or depreciation of investments 27,303,172 1,649,626 4,528,705 24,230,037 17,323,468 ------------ ------------ ------------- ------------- ------------- Net gain (loss) on investments 63,775,230 3,331,893 5,392,240 24,341,769 20,558,429 ------------ ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 65,095,509 $ 4,120,871 $ 7,408,622 $ 23,368,498 $ 20,363,303 ============ ============ ============= ============= =============
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ CS CS CS DREY VIF DREY VIF COMMODITY MID-CAP SM CAP INTL EQ, INTL VAL, PERIOD ENDED DEC. 31, 2006 (CONTINUED) RETURN(2) CORE CORE I SERV(1) SERV(1) -------------------------------------- ------------ ------------ ------------- ------------- ------------- INVESTMENT INCOME Dividend income $ 2,080,846 $ -- $ -- $ -- $ -- Variable account expenses 409,493 245,926 3,365,553 4,056 2,697 ------------ ------------ ------------- ------------- ------------- Investment income (loss) -- net 1,671,353 (245,926) (3,365,553) (4,056) (2,697) ============ ============ ============= ============= ============= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 243,601 7,535,918 111,359,034 47,323 65,158 Cost of investments sold 250,822 7,461,778 114,908,935 45,204 63,538 ------------ ------------ ------------- ------------- ------------- Net realized gain (loss) on sales of investments (7,221) 74,140 (3,549,901) 2,119 1,620 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (2,524,905) 436,580 16,887,522 140,139 85,666 ------------ ------------ ------------- ------------- ------------- Net gain (loss) on investments (2,532,126) 510,720 13,337,621 142,258 87,286 ------------ ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations $ (860,773) $ 264,794 $ 9,972,068 $ 138,202 $ 84,589 ============ ============ ============= ============= =============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 19 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- EV VT EG VA EG VA FID VIP FID VIP FLOATING-RATE FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, PERIOD ENDED DEC. 31, 2006 (CONTINUED) INC(2) LG CAP, CL 2 CL 2 SERV CL 2(2) SERV CL -------------------------------------- ------------- ------------ ------------ ------------ ------------ INVESTMENT INCOME Dividend income $ 6,685,278 $ 317,065 $ 2,218,964 $ 3,817,491 $ 1,813,959 Variable account expenses 957,310 281,118 535,902 1,902,030 1,823,673 ------------- ------------ ------------ ------------ ------------ Investment income (loss) -- net 5,727,968 35,947 1,683,062 1,915,461 (9,714) ============= ============ ============ ============ ============ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 5,564,198 7,421,207 6,532,324 3,036,591 39,070,426 Cost of investments sold 5,568,836 6,298,066 5,681,107 2,869,666 37,284,870 ------------- ------------ ------------ ------------ ------------ Net realized gain (loss) on sales of investments (4,638) 1,123,141 851,217 166,925 1,785,556 Distributions from capital gains -- 526,934 3,340,955 46,191,640 5,650,037 Net change in unrealized appreciation or depreciation of investments 155,048 1,767,525 5,654,232 (5,283,470) 16,589,284 ------------- ------------ ------------ ------------ ------------ Net gain (loss) on investments 150,410 3,417,600 9,846,404 41,075,095 24,024,877 ------------- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations $ 5,878,378 $ 3,453,547 $ 11,529,466 $ 42,990,556 $ 24,015,163 ============= ============ ============ ============ ============
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, YEAR ENDED DEC. 31, 2006 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ------------------------------------ ------------- ------------ ------------ ------------ ------------ INVESTMENT INCOME Dividend income $ 2,933,093 $ 1,106,919 $ 1,755,695 $ 762,482 $ 1,459,401 Variable account expenses 3,592,487 3,585,655 9,543,074 838,796 1,949,953 ------------- ------------ ------------ ------------ ------------ Investment income (loss) -- net (659,394) (2,478,736) (7,787,379) (76,314) (490,552) ============= ============ ============ ============ ============ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 49,874,060 45,865,246 66,108,684 11,782,610 15,874,317 Cost of investments sold 41,912,837 28,848,394 55,263,014 9,739,676 11,472,015 ------------- ------------ ------------ ------------ ------------ Net realized gain (loss) on sales of investments 7,961,223 17,016,852 10,845,670 2,042,934 4,402,302 Distributions from capital gains 10,615,004 49,972,802 117,064,344 593,549 1,264,814 Net change in unrealized appreciation or depreciation of investments 28,207,129 (18,987,851) (10,787,068) 12,713,169 29,653,447 ------------- ------------ ------------ ------------ ------------ Net gain (loss) on investments 46,783,356 48,001,803 117,122,946 15,349,652 35,320,563 ------------- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations $ 46,123,962 $ 45,523,067 $109,335,567 $ 15,273,338 $ 34,830,011 ============= ============ ============ ============ ============
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- FTVIPT FRANK FTVIPT FRANK FTVIPT FTVIPT FTVIPT GLOBAL REAL EST, SM CAP VAL, MUTUAL SHARES TEMP DEV MKTS TEMP FOR YEAR ENDED DEC. 31, 2006 (CONTINUED) CL 2 CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 ------------------------------------ ---------------- ------------ ------------- ------------- ------------ INVESTMENT INCOME Dividend income $ 15,001,170 $ 2,283,137 $ 3,192,747 $ 3,459,645 $ 636,634 Variable account expenses 6,282,948 3,110,892 2,210,439 3,459,030 439,550 ------------- ------------ ------------ ------------ ------------ Investment income (loss) -- net 8,718,222 (827,755) 982,308 615 197,084 ============= ============ ============ ============ ============ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 101,971,003 24,656,124 7,453,123 96,046,556 10,909,346 Cost of investments sold 79,603,960 17,576,796 6,163,071 60,585,852 8,000,514 ------------- ------------ ------------ ------------ ------------ Net realized gain (loss) on sales of investments 22,367,043 7,079,328 1,290,052 35,460,704 2,908,832 Distributions from capital gains 58,260,359 12,775,854 8,131,098 -- -- Net change in unrealized appreciation or depreciation of investments 38,122,471 32,639,189 30,468,618 26,944,522 6,371,485 ------------- ------------ ------------ ------------ ------------ Net gain (loss) on investments 118,749,873 52,494,371 39,889,768 62,405,226 9,280,317 ------------- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations $ 127,468,095 $ 51,666,616 $ 40,872,076 $ 62,405,841 $ 9,477,401 ============= ============ ============ ============ ============
See accompanying notes to financial statements. 20 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP VAL, STRUCTD SM STRUCTD U.S. GLOBAL TECH, INTL GRO, YEAR ENDED DEC. 31, 2006 (CONTINUED) INST CAP EQ, INST EQ, INST SERV SERV ------------------------------------ ------------ ------------- ------------ -------------- ------------ INVESTMENT INCOME Dividend income $ 7,575,256 $ 240,769 $ 5,407,898 $ -- $ 2,934,609 Variable account expenses 7,295,608 343,573 4,455,049 201,495 1,350,736 ------------ ------------- ------------ -------------- ------------ Investment income (loss) -- net 279,648 (102,804) 952,849 (201,495) 1,583,873 ============ ============= ============ ============== ============ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 165,280,059 9,351,823 73,693,296 4,131,954 11,077,049 Cost of investments sold 145,402,433 7,173,621 66,050,902 5,906,697 7,415,064 ------------ ------------- ------------ -------------- ------------ Net realized gain (loss) on sales of investments 19,877,626 2,178,202 7,642,394 (1,774,743) 3,661,985 Distributions from capital gains 83,453,220 2,628,099 -- -- -- Net change in unrealized appreciation or depreciation of investments 6,550,842 (508,399) 47,064,719 3,461,795 52,958,691 ------------ ------------- ------------ -------------- ------------ Net gain (loss) on investments 109,881,688 4,297,902 54,707,113 1,687,052 56,620,676 ------------ ------------- ------------ -------------- ------------ Net increase (decrease) in net assets resulting from operations $110,161,336 $ 4,195,098 $ 55,659,962 $ 1,485,557 $ 58,204,549 ============ ============= ============ ============== ============
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- JANUS ASPEN LAZARD LM PTNRS MFS MFS MID CAP GRO, RETIRE VAR SM CAP INV GRO STOCK, NEW DIS, YEAR ENDED DEC. 31, 2006 (CONTINUED) SERV INTL EQ, SERV GRO, CL II SERV CL SERV CL ------------------------------------ ------------ ------------- ------------ -------------- ------------ INVESTMENT INCOME Dividend income $ -- $ 2,037,707 $ -- $ -- $ -- Variable account expenses 258,514 1,769,918 11,432 1,237,579 906,400 ------------ ------------- ------------ -------------- ------------ Investment income (loss) -- net (258,514) 267,789 (11,432) (1,237,579) (906,400) ============ ============= ============ ============== ============ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 6,029,503 38,255,678 450,379 27,509,971 25,193,092 Cost of investments sold 7,375,297 28,404,233 455,299 27,468,484 22,164,845 ------------ ------------- ------------ -------------- ------------ Net realized gain (loss) on sales of investments (1,345,794) 9,851,445 (4,920) 41,487 3,028,247 Distributions from capital gains -- 8,479,311 122,856 -- 1,961,927 Net change in unrealized appreciation or depreciation of investments 5,159,841 20,762,035 7,295 9,478,142 7,418,304 ------------ ------------- ------------ -------------- ------------ Net gain (loss) on investments 3,814,047 39,092,791 125,231 9,519,629 12,408,478 ------------ ------------- ------------ -------------- ------------ Net increase (decrease) in net assets resulting from operations $ 3,555,533 $ 39,360,580 $ 113,799 $ 8,282,050 $ 11,502,078 ============ ============= ============ ============== ============
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- MFS OPPEN TOTAL MFS NB AMT NB AMT SOC GLOBAL RETURN, UTILITIES, INTL, RESPONSIVE, SEC VA, PERIOD ENDED DEC. 31, 2006 (CONTINUED) SERV CL SERV CL CL S(2) CL S(1) SERV -------------------------------------- ------------ ------------- ------------ -------------- ------------ INVESTMENT INCOME Dividend income $ 2,005,246 $ 3,718,519 $ 1,210,960 $ -- $ 999,855 Variable account expenses 862,896 1,722,886 462,179 1,235 1,237,935 ------------ ------------- ------------ -------------- ------------ Investment income (loss) -- net 1,142,350 1,995,633 748,781 (1,235) (238,080) ============ ============= ============ ============== ============ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 9,318,882 28,324,980 984,596 14,737 4,629,415 Cost of investments sold 9,250,397 23,692,264 924,368 13,938 4,115,429 ------------ ------------- ------------ -------------- ------------ Net realized gain (loss) on sales of investments 68,485 4,632,716 60,228 799 513,986 Distributions from capital gains 2,939,207 7,578,477 174,764 -- 6,193,209 Net change in unrealized appreciation or depreciation of investments 5,748,655 38,706,779 17,808,152 31,679 14,978,891 ------------ ------------- ------------ -------------- ------------ Net gain (loss) on investments 8,756,347 50,917,972 18,043,144 32,478 21,686,086 ------------ ------------- ------------ -------------- ------------ Net increase (decrease) in net assets resulting from operations $ 9,898,697 $ 52,913,605 $ 18,791,925 $ 31,243 $ 21,448,006 ============ ============= ============ ============== ============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 21 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- OPPEN OPPEN OPPEN PIMCO VIT PIONEER EQ MAIN ST SM STRATEGIC VAL VA, ALL ASSET, EQ INC VCT, PERIOD ENDED DEC. 31, 2006 (CONTINUED) CAP VA, SERV BOND VA, SERV SERV(4) ADVISOR CL(2) CL II -------------------------------------- ------------- -------------- ------------ ------------- ------------ INVESTMENT INCOME Dividend income $ 15,206 $ 18,263,165 $ -- $ 14,282,681 $ 1,519,999 Variable account expenses 757,722 5,494,994 668 1,385,544 570,566 ------------- -------------- ------------ ------------- ------------ Investment income (loss) -- net (742,516) 12,768,171 (668) 12,897,137 949,433 ============= ============== ============ ============= ============ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 2,961,364 70,316,647 64,586 204,592 11,858,856 Cost of investments sold 2,633,835 71,742,320 63,697 200,123 9,145,444 ------------- -------------- ------------ ------------- ------------ Net realized gain (loss) on sales of investments 327,529 (1,425,673) 889 4,469 2,713,412 Distributions from capital gains 1,919,670 -- 32,273 1,106,027 1,034,106 Net change in unrealized appreciation or depreciation of investments 8,619,619 31,751,609 (21,469) (616,607) 7,799,925 ------------- -------------- ------------ ------------- ------------ Net gain (loss) on investments 10,866,818 30,325,936 11,693 493,889 11,547,443 ------------- -------------- ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations $ 10,124,302 $ 43,094,107 $ 11,025 $ 13,391,026 $ 12,496,876 ============= ============== ============ ============= ============
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- PIONEER PUT VT PUT VT PUT VT PUT VT INTL VAL VCT, HLTH SCIENCES, INTL EQ, INTL NEW OPP, NEW OPP, PERIOD ENDED DEC. 31, 2006 (CONTINUED) CL II(5) CL IB CL IB CL IB CL IA -------------------------------------- ------------- -------------- ------------ ------------- ------------ INVESTMENT INCOME Dividend income $ -- $ 199,086 $ 589,306 $ 1,218,766 $ 482,056 Variable account expenses 2,834 513,392 825,262 778,566 3,256,767 ------------- -------------- ------------ ------------- ------------ Investment income (loss) -- net (2,834) (314,306) (235,956) 440,200 (2,774,711) ============= ============== ============ ============= ============ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 72,884 23,985,892 16,748,672 16,337,610 84,036,524 Cost of investments sold 72,828 21,798,403 10,686,470 17,115,720 99,724,134 ------------- -------------- ------------ ------------- ------------ Net realized gain (loss) on sales of investments 56 2,187,489 6,062,202 (778,110) (15,687,610) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 62,298 (1,655,620) 16,618,662 20,600,637 35,651,256 ------------- -------------- ------------ ------------- ------------ Net gain (loss) on investments 62,354 531,869 22,680,864 19,822,527 19,963,646 ------------- -------------- ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations $ 59,520 $ 217,563 $ 22,444,908 $ 20,262,727 $ 17,188,935 ============= ============== ============ ============= ============
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- PUT VT VISTA, RVS VP RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2006 (CONTINUED) CL IB BAL CASH MGMT CORE BOND DIV BOND ------------------------------------ ------------- -------------- ------------ ------------- ------------ INVESTMENT INCOME Dividend income $ -- $ 11,746,783 $ 28,127,077 $ 2,471,498 $ 61,046,779 Variable account expenses 778,387 5,190,743 5,741,419 501,961 12,853,467 ------------- -------------- ------------ ------------- ------------ Investment income (loss) -- net (778,387) 6,556,040 22,385,658 1,969,537 48,193,312 ============= ============== ============ ============= ============ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 17,931,359 112,648,916 187,747,910 22,558,372 70,473,865 Cost of investments sold 22,508,680 123,684,501 187,750,657 23,081,632 73,389,794 ------------- -------------- ------------ ------------- ------------ Net realized gain (loss) on sales of investments (4,577,321) (11,035,585) (2,747) (523,260) (2,915,929) Distributions from capital gains -- 25,904,304 -- -- -- Net change in unrealized appreciation or depreciation of investments 9,287,878 37,072,062 3,492 290,377 10,476,300 ------------- -------------- ------------ ------------- ------------ Net gain (loss) on investments 4,710,557 51,940,781 745 (232,883) 7,560,371 ------------- -------------- ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations $ 3,932,170 $ 58,496,821 $ 22,386,403 $ 1,736,654 $ 55,753,683 ============= ============== ============ ============= ============
See accompanying notes to financial statements. 22 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- RVS VP RVS VP GLOBAL RVS VP RVS VP FUNDAMENTAL RVS VP INFLATION PERIOD ENDED DEC. 31, 2006 (CONTINUED) DIV EQ INC EMER MKTS VAL(2) GLOBAL BOND PROT SEC -------------------------------------- ------------- ------------ ------------ ------------ --------------- INVESTMENT INCOME Dividend income $ 23,787,979 $ 1,019,734 $ 1,231,510 $ 17,478,882 $ 10,537,636 Variable account expenses 14,503,398 2,540,884 1,087,806 4,954,626 2,730,614 ------------- ------------ ------------ ------------ --------------- Investment income (loss) -- net 9,284,581 (1,521,150) 143,704 12,524,256 7,807,022 ============= ============ ============ ============ =============== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 24,878,535 56,835,206 3,037,308 40,111,500 62,247,263 Cost of investments sold 20,612,172 46,871,671 2,961,832 39,281,401 63,127,652 ------------- ------------ ------------ ------------ --------------- Net realized gain (loss) on sales of investments 4,266,363 9,963,535 75,476 830,099 (880,389) Distributions from capital gains 124,932,540 40,792,591 461,123 -- 15,773 Net change in unrealized appreciation or depreciation of investments 147,419,041 32,532,980 28,207,545 17,328,615 (4,836,947) ------------- ------------ ------------ ------------ --------------- Net gain (loss) on investments 276,617,944 83,289,106 28,744,144 18,158,714 (5,701,563) ------------- ------------ ------------ ------------ --------------- Net increase (decrease) in net assets resulting from operations $ 285,902,525 $ 81,767,956 $ 28,887,848 $ 30,682,970 $ 2,105,459 ============= ============ ============ ============ ===============
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- RVS VP RVS VP HI YIELD RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2006 (CONTINUED) GRO BOND INC OPP INTL OPP LG CAP EQ ------------------------------------ ------------- ------------ ------------ ------------ --------------- INVESTMENT INCOME Dividend income $ 4,386,098 $ 67,850,858 $ 11,459,556 $ 7,757,193 $ 14,444,769 Variable account expenses 4,040,983 8,720,715 1,549,478 4,445,143 12,648,567 ------------- ------------ ------------ ------------ --------------- Investment income (loss) -- net 345,115 59,130,143 9,910,078 3,312,050 1,796,202 ============= ============ ============ ============ =============== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 145,963,735 168,083,720 2,817,636 64,191,863 410,139,734 Cost of investments sold 164,546,140 182,806,445 2,809,987 61,487,732 415,569,035 ------------- ------------ ------------ ------------ --------------- Net realized gain (loss) on sales of investments (18,582,405) (14,722,725) 7,649 2,704,131 (5,429,301) Distributions from capital gains -- -- 26,337 -- -- Net change in unrealized appreciation or depreciation of investments 50,640,833 39,925,057 5,912,554 75,798,560 132,131,274 ------------- ------------ ------------ ------------ --------------- Net gain (loss) on investments 32,058,428 25,202,332 5,946,540 78,502,691 126,701,973 ------------- ------------ ------------ ------------ --------------- Net increase (decrease) in net assets resulting from operations $ 32,403,543 $ 84,332,475 $ 15,856,618 $ 81,814,741 $ 128,498,175 ============= ============ ============ ============ ===============
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2006 (CONTINUED) LG CAP VAL MID CAP GRO MID CAP VAL S&P 500 SELECT VAL ------------------------------------ ------------- ------------ ------------ ------------ --------------- INVESTMENT INCOME Dividend income $ 248,240 $ 515,529 $ 1,526,894 $ 3,900,614 $ 558,504 Variable account expenses 157,265 2,100,140 1,205,048 2,333,853 214,425 ------------- ------------ ------------ ------------ --------------- Investment income (loss) -- net 90,975 (1,584,611) 321,846 1,566,761 344,079 ============= ============ ============ ============ =============== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 2,283,527 49,447,907 5,536,633 46,820,297 4,462,562 Cost of investments sold 2,112,031 49,041,008 4,849,393 40,207,587 4,121,855 ------------- ------------ ------------ ------------ --------------- Net realized gain (loss) on sales of investments 171,496 406,899 687,240 6,612,710 340,707 Distributions from capital gains 1,127,493 11,709,771 3,195,427 1,207,804 2,550,253 Net change in unrealized appreciation or depreciation of investments 2,006,663 (20,166,353) 20,882,338 26,477,557 372,147 ------------- ------------ ------------ ------------ --------------- Net gain (loss) on investments 3,305,652 (8,049,683) 24,765,005 34,298,071 3,263,107 ------------- ------------ ------------ ------------ --------------- Net increase (decrease) in net assets resulting from operations $ 3,396,627 $ (9,634,294) $ 25,086,851 $ 35,864,832 $ 3,607,186 ============= ============ ============ ============ ===============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 23 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------------- ROYCE RVS VP RVS VP RVS VP MICRO-CAP, THIRD AVE YEAR ENDED DEC. 31, 2006 (CONTINUED) SHORT DURATION SM CAP ADV SM CAP VAL INVEST CI VAL ------------------------------------ -------------- ---------------- ------------ ------------- ------------- INVESTMENT INCOME Dividend income $ 13,534,491 $ 68,681 $ 1,753,899 $ 232,980 $ 2,447,230 Variable account expenses 3,096,168 1,563,964 3,659,154 1,159,249 1,624,911 -------------- ---------------- ------------ ------------- ------------- Investment income (loss) -- net 10,438,323 (1,495,283) (1,905,255) (926,269) 822,319 ============== ================ ============ ============= ============= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 84,244,891 36,140,030 62,104,577 21,080,605 26,865,873 Cost of investments sold 86,765,727 30,830,001 53,166,397 13,278,419 15,641,189 -------------- ---------------- ------------ ------------- ------------- Net realized gain (loss) on sales of investments (2,520,836) 5,310,029 8,938,180 7,802,186 11,224,684 Distributions from capital gains -- 21,962,756 46,473,683 7,096,865 8,335,527 Net change in unrealized appreciation or depreciation of investments 2,149,031 (7,515,503) 18,565,369 10,460,000 5,579,074 -------------- ---------------- ------------ ------------- ------------- Net gain (loss) on investments (371,805) 19,757,282 73,977,232 25,359,051 25,139,285 -------------- ---------------- ------------ ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 10,066,518 $ 18,261,999 $ 72,071,977 $ 24,432,782 $ 25,961,604 ============== ================ ============ ============= =============
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------------- VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL REAL EST, MID CAP GRO, WANGER WANGER PERIOD ENDED DEC. 31, 2006 (CONTINUED) CL II CL II(2) CL II(2) INTL SM CAP U.S. SM CO -------------------------------------- -------------- ---------------- ------------ ------------- ------------- INVESTMENT INCOME Dividend income $ 6,864,718 $ 2,386,410 $ -- $ 3,612,608 $ 2,026,381 Variable account expenses 5,412,887 480,698 298,646 6,147,557 7,783,673 -------------- ---------------- ------------ ------------- ------------- Investment income (loss) -- net 1,451,831 1,905,712 (298,646) (2,534,949) (5,757,292) ============== ================ ============ ============= ============= REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 82,372,976 5,449,788 873,495 66,354,415 118,187,654 Cost of investments sold 82,520,739 4,853,506 835,316 47,502,123 93,322,153 -------------- ---------------- ------------ ------------- ------------- Net realized gain (loss) on sales of investments (147,763) 596,282 38,179 18,852,292 24,865,501 Distributions from capital gains 31,916,381 685,750 771,121 -- 28,583,947 Net change in unrealized appreciation or depreciation of investments 56,791,325 22,481,253 7,936,631 194,651,715 5,289,397 -------------- ---------------- ------------ ------------- ------------- Net gain (loss) on investments 88,559,943 23,763,285 8,745,931 213,504,007 58,738,845 -------------- ---------------- ------------ ------------- ------------- Net increase (decrease) in net assets resulting from operations $ 90,011,774 $ 25,668,997 $ 8,447,285 $ 210,969,058 $ 52,981,553 ============== ================ ============ ============= =============
See accompanying notes to financial statements. 24 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF OPERATIONS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------- WF ADV VT WF ADV VT WF ADV VT WF ADV VT YEAR ENDED DEC. 31, 2006 (CONTINUED) ASSET ALLOC INTL CORE OPP SM CAP GRO ------------------------------------ ------------ ----------- ------------ ----------- INVESTMENT INCOME Dividend income $ 2,204,546 $ 314,232 $ -- $ -- Variable account expenses 821,842 170,550 822,530 412,063 ------------ ----------- ------------ ----------- Investment income (loss) -- net 1,382,704 143,682 (822,530) (412,063) ============ =========== ============ =========== REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET Realized gain (loss) on sales of investments: Proceeds from sales 18,593,208 4,731,446 19,205,612 5,193,818 Cost of investments sold 16,784,546 3,687,472 14,871,013 3,899,100 ------------ ----------- ------------ ----------- Net realized gain (loss) on sales of investments 1,808,662 1,043,974 4,334,599 1,294,718 Distributions from capital gains 1,084,634 752,307 10,396,375 1,181,723 Net change in unrealized appreciation or depreciation of investments 5,847,171 1,556,090 (3,993,484) 7,006,886 ------------ ----------- ------------ ----------- Net gain (loss) on investments 8,740,467 3,352,371 10,737,490 9,483,327 ------------ ----------- ------------ ----------- Net increase (decrease) in net assets resulting from operations $ 10,123,171 $ 3,496,053 $ 9,914,960 $ 9,071,264 ============ =========== ============ ===========
(1) For the period June 26, 2006 (commencement of operations) to Dec. 31, 2006. (2) For the period May 1, 2006 (commencement of operations) to Dec. 31, 2006. (3) For the period April 28, 2006 (commencement of operations) to Dec. 31, 2006. (4) For the period Sept. 15, 2006 (commencement of operations) to Dec. 31, 2006. (5) For the period Dec. 15, 2006 (commencement of operations) to Dec. 31, 2006. See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 25 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, YEAR ENDED DEC. 31, 2006 SER I SER II SER I SER II SER I ------------------------ ------------ ------------- ------------ ------------ -------------- OPERATIONS Investment income (loss) -- net $ (618,417) $ (2,177,607) $ (462,522) $ (544,867) $ (3,383,904) Net realized gain (loss) on sales of investments (2,932,477) 5,063,339 2,685,078 1,831,676 23,458,026 Distributions from capital gains -- -- 921,289 1,215,189 -- Net change in unrealized appreciation or depreciation of investments 7,423,354 5,067,183 4,633,445 6,160,090 41,412,446 ------------ ------------- ------------ ------------ -------------- Net increase (decrease) in net assets resulting from operations 3,872,460 7,952,915 7,777,290 8,662,088 61,486,568 ============ ============= ============ ============ ============== CONTRACT TRANSACTIONS Contract purchase payments 2,248,337 28,612,888 1,029,153 9,167,741 8,389,893 Net transfers(1) (5,648,418) (58,692,779) (6,441,394) 524,065 (15,112,364) Transfers for policy loans 2,818 (26,777) (31,315) (41,778) 476,386 Adjustments to net assets allocated to contracts in payout period (10,085) (3,671) (7,805) (3,662) (205,350) Contract charges (35,072) (877,537) (19,713) (43,702) (304,264) Contract terminations: Surrender benefits (3,806,581) (6,238,418) (2,482,170) (2,385,358) (137,739,871) Death benefits (466,217) (1,040,608) (329,175) (390,071) (4,471,774) ------------ ------------- ------------ ------------ -------------- Increase (decrease) from contract transactions (7,715,218) (38,266,902) (8,282,419) 6,827,235 (148,967,344) ------------ ------------- ------------ ------------ -------------- Net assets at beginning of year 78,514,152 254,025,940 53,665,480 54,342,399 484,438,796 ------------ ------------- ------------ ------------ -------------- Net assets at end of year $ 74,671,394 $ 223,711,953 $ 53,160,351 $ 69,831,722 $ 396,958,020 ============ ============= ============ ============ ============== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 80,703,329 236,682,947 32,971,128 42,661,337 281,112,107 Contract purchase payments 2,260,313 26,128,653 580,649 7,030,861 4,617,151 Net transfers(1) (5,791,449) (56,928,808) (3,654,879) 387,268 (8,420,338) Transfers for policy loans 2,155 (25,381) (17,638) (29,530) 264,293 Contract charges (35,333) (812,497) (11,130) (31,547) (167,391) Contract terminations: Surrender benefits (3,858,435) (5,714,395) (1,408,767) (1,707,690) (75,297,723) Death benefits (471,488) (965,002) (187,131) (284,824) (2,517,507) ------------ ------------- ------------ ------------ -------------- Units outstanding at end of year 72,809,092 198,365,517 28,272,232 48,025,875 199,590,592 ============ ============= ============ ============ ==============
See accompanying notes to financial statements. 26 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------ AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, PERIOD ENDED DEC. 31, 2006 (CONTINUED) SER I SER I SER II(2) CARE, SER II(3) SER II -------------------------------------- ------------ ------------ ----------- --------------- ----------- OPERATIONS Investment income (loss) -- net $ (138,649) $ 222,590 $ 16,519 $ (275,777) $ 30,705 Net realized gain (loss) on sales of investments 1,163,925 645,335 643 55,575 13,717 Distributions from capital gains -- 171,530 7,541 -- -- Net change in unrealized appreciation or depreciation of investments 1,242,939 2,782,884 61,490 4,476,627 777,708 ------------ ------------ ----------- --------------- ----------- Net increase (decrease) in net assets resulting from operations 2,268,215 3,822,339 86,193 4,256,425 822,130 ============ ============ =========== =============== =========== CONTRACT TRANSACTIONS Contract purchase payments 558,944 3,476,924 1,291,734 49,623,217 3,487,557 Net transfers(1) (2,168,387) 1,322,213 225,904 38,319,015 2,547,727 Transfers for policy loans (9,730) (13,549) (101) (12,554) (804) Adjustments to net assets allocated to contracts in payout period 9,247 (1,155) -- -- -- Contract charges (13,136) (20,000) -- (60,748) (776) Contract terminations: Surrender benefits (988,965) (1,205,562) (7,737) (326,938) (62,857) Death benefits (216,491) (387,927) -- (116,683) (39,763) ------------ ------------ ----------- --------------- ----------- Increase (decrease) from contract transactions (2,828,518) 3,170,944 1,509,800 87,425,309 5,931,084 ------------ ------------ ----------- --------------- ----------- Net assets at beginning of year 16,410,459 23,108,253 -- -- 269,476 ------------ ------------ ----------- --------------- ----------- Net assets at end of year $ 15,850,156 $ 30,101,536 $ 1,595,993 $ 91,681,734 $ 7,022,690 ============ ============ =========== =============== =========== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 14,869,025 19,310,798 -- -- 246,723 Contract purchase payments 467,450 2,794,889 1,167,926 48,280,972 2,991,936 Net transfers(1) (1,832,417) 977,741 202,630 40,014,930 2,067,627 Transfers for policy loans (8,524) (11,078) (99) (12,425) (679) Contract charges (11,018) (15,843) -- (60,049) (621) Contract terminations: Surrender benefits (824,303) (952,711) (6,437) (320,868) (48,282) Death benefits (183,315) (305,676) -- (113,096) (30,912) ------------ ------------ ----------- --------------- ----------- Units outstanding at end of year 12,476,898 21,798,120 1,364,020 87,789,464 5,225,792 ============ ============ =========== =============== ===========
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 27 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, PERIOD ENDED DEC. 31, 2006 (CONTINUED) SER I CL B CL B CL B CL B(2) -------------------------------------- ------------- ------------- ------------- --------------- ------------ OPERATIONS Investment income (loss) -- net $ (340,400) $ (176,585) $ 997,127 $ 2,901,382 $ (1,465) Net realized gain (loss) on sales of investments 842,953 (292,680) 6,874,922 7,706,249 138 Distributions from capital gains -- -- 16,938,384 13,889,637 -- Net change in unrealized appreciation or depreciation of investments 2,233,515 2,489,649 22,680,669 204,018,296 30,002 ------------- ------------- ------------- --------------- ----------- Net increase (decrease) in net assets resulting from operations 2,736,068 2,020,384 47,491,102 228,515,564 28,675 ============= ============= ============= =============== =========== CONTRACT TRANSACTIONS Contract purchase payments 3,597,617 33,391,270 29,987,833 216,306,877 638,287 Net transfers(1) (9,647,163) (73,807) (41,489,132) 89,571,715 63,601 Transfers for policy loans (7,020) (6,341) (62,043) (302,940) -- Adjustments to net assets allocated to contracts in payout period -- -- (36,334) (50,422) -- Contract charges (131,543) (27,475) (238,783) (862,905) -- Contract terminations: Surrender benefits (1,366,812) (159,500) (12,436,887) (23,848,684) (653) Death benefits (218,535) (44,556) (2,223,919) (3,328,532) -- ------------- ------------- ------------- --------------- ----------- Increase (decrease) from contract transactions (7,773,456) 33,079,591 (26,499,265) 277,485,109 701,235 ------------- ------------- ------------- --------------- ----------- Net assets at beginning of year 40,260,531 3,648,359 312,799,387 551,186,253 -- ------------- ------------- ------------- --------------- ----------- Net assets at end of year $ 35,223,143 $ 38,748,334 $ 333,791,224 $ 1,057,186,926 $ 729,910 ============= ============= ============= =============== =========== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 54,314,603 3,446,288 277,476,998 292,660,263 -- Contract purchase payments 4,581,320 31,036,918 25,823,442 131,375,660 608,215 Net transfers(1) (13,261,344) (367,131) (35,071,688) 42,136,618 58,569 Transfers for policy loans (9,222) (5,964) (51,855) (153,178) -- Contract charges (172,996) (25,107) (201,935) (393,251) -- Contract terminations: Surrender benefits (1,766,552) (147,472) (10,400,810) (10,811,781) (112) Death benefits (295,175) (40,269) (1,882,769) (1,532,765) -- ------------- ------------- ------------- --------------- ----------- Units outstanding at end of year 43,390,634 33,897,263 255,691,383 453,281,566 666,672 ============= ============= ============= =============== ===========
See accompanying notes to financial statements. 28 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, PERIOD ENDED DEC. 31, 2006 (CONTINUED) CL I CL II CL II(2) CL II CL I -------------------------------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS Investment income (loss) -- net $ 491,468 $ 591,360 $ 7,104 $ (941,132) $ 2,136,080 Net realized gain (loss) on sales of investments 402,347 2,865,474 1,636 (2,088,277) 27,623,353 Distributions from capital gains -- -- 70,091 -- 61,868,698 Net change in unrealized appreciation or depreciation of investments 12,668,327 20,073,367 68,215 1,267,269 11,778,471 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 13,562,142 23,530,201 147,046 (1,762,140) 103,406,602 ============= ============= ============= ============= ============= CONTRACT TRANSACTIONS Contract purchase payments 1,319,901 10,308,745 2,560,037 181,553,196 11,265,277 Net transfers(1) (6,257,072) (2,999,924) 504,116 6,362,883 (19,503,872) Transfers for policy loans (9,920) (8,730) (552) (48,241) 281,029 Adjustments to net assets allocated to contracts in payout period (5,032) (12,337) -- -- (240,427) Contract charges (19,986) (85,178) -- (139,499) (280,136) Contract terminations: Surrender benefits (2,859,786) (4,109,921) (34,497) (970,785) (183,681,349) Death benefits (615,734) (495,928) -- (350,917) (6,243,823) ------------- ------------- ------------- ------------- ------------- Increase (decrease) from contract transactions (8,447,629) 2,596,727 3,029,104 186,406,637 (198,403,301) ------------- ------------- ------------- ------------- ------------- Net assets at beginning of year 61,059,645 97,264,803 -- 19,240,328 722,147,920 ------------- ------------- ------------- ------------- ------------- Net assets at end of year $ 66,174,158 $ 123,391,731 $ 3,176,150 $ 203,884,825 $ 627,151,221 ============= ============= ============= ============= ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 58,674,200 82,367,473 -- 18,578,384 341,955,531 Contract purchase payments 1,153,430 7,975,799 2,322,272 180,236,020 5,231,957 Net transfers(1) (5,456,692) (2,311,127) 450,963 5,053,553 (11,160,341) Transfers for policy loans (9,347) (3,125) (558) (48,725) 100,392 Contract charges (17,524) (65,393) -- (142,844) (123,095) Contract terminations: Surrender benefits (2,509,611) (3,143,508) (29,708) (992,432) (75,136,329) Death benefits (548,103) (391,202) -- (353,149) (2,850,319) ------------- ------------- ------------- ------------- ------------- Units outstanding at end of year 51,286,353 84,428,917 2,742,969 202,330,807 258,017,796 ============= ============= ============= ============= =============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 29 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- AC VP COL COL MARSICO COL MARSICO VAL, CALVERT VS HI YIELD, GRO, INTL OPP, PERIOD ENDED DEC. 31, 2006 (CONTINUED) CL II SOCIAL BAL VS CL B(4) VS CL A(3) VS CL B(3) -------------------------------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS Investment income (loss) -- net $ 1,320,279 $ 788,978 $ 2,016,382 $ (973,271) $ (195,126) Net realized gain (loss) on sales of investments 2,316,009 712,491 (51,649) 111,732 139,196 Distributions from capital gains 34,156,049 969,776 915,184 -- 3,095,765 Net change in unrealized appreciation or depreciation of investments 27,303,172 1,649,626 4,528,705 24,230,037 17,323,468 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 65,095,509 4,120,871 7,408,622 23,368,498 20,363,303 ============= ============= ============= ============= ============= CONTRACT TRANSACTIONS Contract purchase payments 43,184,216 5,243,439 15,421,795 153,693,851 75,973,101 Net transfers(1) (30,825,328) (1,188,393) 94,431,341 157,097,140 74,700,911 Transfers for policy loans (114,458) (52,657) (31,511) (59,968) (21,145) Adjustments to net assets allocated to contracts in payout period (41,446) 27,641 (616) (255) (666) Contract charges (303,698) (39,897) (138,934) (168,686) (88,031) Contract terminations: Surrender benefits (16,017,980) (2,456,138) (2,050,011) (1,626,520) (718,941) Death benefits (2,194,480) (366,246) (488,847) (549,863) (210,587) ------------- ------------- ------------- ------------- ------------- Increase (decrease) from contract transactions (6,313,174) 1,167,749 107,143,217 308,385,699 149,634,642 ------------- ------------- ------------- ------------- ------------- Net assets at beginning of year 378,826,144 50,853,244 -- -- -- ------------- ------------- ------------- ------------- ------------- Net assets at end of year $ 437,608,479 $ 56,141,864 $ 114,551,839 $ 331,754,197 $ 169,997,945 ============= ============= ============= ============= ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 281,618,051 48,625,457 -- -- -- Contract purchase payments 32,479,747 4,878,520 15,120,428 152,896,946 73,522,995 Net transfers(1) (21,732,830) (1,102,782) 94,395,430 167,473,555 81,140,959 Transfers for policy loans (82,444) (49,774) (29,516) (61,634) (20,042) Contract charges (213,426) (37,091) (137,769) (171,330) (88,482) Contract terminations: Surrender benefits (11,206,914) (2,234,037) (2,007,246) (1,647,247) (724,925) Death benefits (1,558,070) (339,564) (482,192) (544,463) (203,511) ------------- ------------- ------------- ------------- ------------- Units outstanding at end of year 279,304,114 49,740,729 106,859,135 317,945,827 153,626,994 ============= ============= ============= ============= =============
See accompanying notes to financial statements. 30 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- CS CS CS DREY VIF DREY VIF COMMODITY MID-CAP SM CAP INTL EQ, INTL VAL, PERIOD ENDED DEC. 31, 2006 (CONTINUED) RETURN(3) CORE CORE I SERV(2) SERV(2) -------------------------------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS Investment income (loss) -- net $ 1,671,353 $ (245,926) $ (3,365,553) $ (4,056) $ (2,697) Net realized gain (loss) on sales of investments (7,221) 74,140 (3,549,901) 2,119 1,620 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments (2,524,905) 436,580 16,887,522 140,139 85,666 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations (860,773) 264,794 9,972,068 138,202 84,589 ============= ============= ============= ============= ============= CONTRACT TRANSACTIONS Contract purchase payments 71,171,765 696,925 5,083,881 1,509,206 1,018,822 Net transfers(1) 67,717,911 (5,340,300) (17,604,202) 201,985 252,467 Transfers for policy loans (13,093) (1,040) 237,145 -- -- Adjustments to net assets allocated to contracts in payout period -- (4,506) (77,503) -- -- Contract charges (82,527) (14,448) (143,988) -- -- Contract terminations: Surrender benefits (523,716) (1,891,723) (92,685,044) (4,880) (4,869) Death benefits (191,699) (247,476) (2,479,560) -- -- ------------- ------------- ------------- ------------- ------------- Increase (decrease) from contract transactions 138,078,641 (6,802,568) (107,669,271) 1,706,311 1,266,420 ------------- ------------- ------------- ------------- ------------- Net assets at beginning of year -- 31,880,645 305,958,773 -- -- ------------- ------------- ------------- ------------- ------------- Net assets at end of year $ 137,217,868 $ 25,342,871 $ 208,261,570 $ 1,844,513 $ 1,351,009 ============= ============= ============= ============= ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- 25,218,449 226,170,417 -- -- Contract purchase payments 70,754,248 543,447 3,627,333 1,380,863 937,989 Net transfers(1) 69,316,751 (4,223,722) (12,969,124) 182,877 232,608 Transfers for policy loans (13,253) (912) 171,686 -- -- Contract charges (84,644) (11,288) (103,412) -- -- Contract terminations: Surrender benefits (535,328) (1,486,059) (66,459,467) (3,973) (3,982) Death benefits (195,073) (197,312) (1,799,601) -- -- ------------- ------------- ------------- ------------- ------------- Units outstanding at end of year 139,242,701 19,842,603 148,637,832 1,559,767 1,166,615 ============= ============= ============= ============= =============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 31 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- EV VT EG VA EG VA FID VIP FID VIP FLOATING-RATE FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, PERIOD ENDED DEC. 31, 2006 (CONTINUED) INC(3) LG CAP, CL 2 CL 2 SERV CL 2(3) SERV CL -------------------------------------- ------------- ------------- ------------- ------------ ------------- OPERATIONS Investment income (loss) -- net $ 5,727,968 $ 35,947 $ 1,683,062 $ 1,915,461 $ (9,714) Net realized gain (loss) on sales of investments (4,638) 1,123,141 851,217 166,925 1,785,556 Distributions from capital gains -- 526,934 3,340,955 46,191,640 5,650,037 Net change in unrealized appreciation or depreciation of investments 155,048 1,767,525 5,654,232 (5,283,470) 16,589,284 ------------- ------------- -------------- ------------ ------------- Net increase (decrease) in net assets resulting from operations 5,878,378 3,453,547 11,529,466 42,990,556 24,015,163 ============= ============= ============== ============ ============= CONTRACT TRANSACTIONS Contract purchase payments 151,818,138 1,638,316 18,218,051 300,313,438 4,789,428 Net transfers(1) 152,709,975 (1,353,747) (597,242) 315,512,621 (28,992,257) Transfers for policy loans (67,344) 5,545 (19,395) (78,696) (27,318) Adjustments to net assets allocated to contracts in payout period -- (4,291) (2,520) (5,250) (36,862) Contract charges (150,183) (23,881) (57,156) (336,790) (78,574) Contract terminations: Surrender benefits (2,310,698) (1,591,569) (1,096,448) (2,872,968) (10,195,088) Death benefits (1,194,195) (148,679) (377,153) (911,617) (1,939,054) ------------- ------------- -------------- ------------ ------------- Increase (decrease) from contract transactions 300,805,693 (1,478,306) 16,068,137 611,620,738 (36,479,725) ------------- ------------- -------------- ------------ ------------- Net assets at beginning of year -- 30,645,038 44,079,805 -- 221,495,846 ------------- ------------- -------------- ------------ ------------- Net assets at end of year $ 306,684,071 $ 32,620,279 $ 71,677,408 $654,611,294 $ 209,031,284 ============= ============= ============== ============ ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- 30,155,030 33,530,909 -- 216,583,346 Contract purchase payments 150,195,340 1,537,448 13,491,380 295,216,192 4,474,390 Net transfers(1) 151,677,623 (1,224,532) (329,398) 331,439,152 (27,230,152) Transfers for policy loans (66,759) 5,119 (14,225) (78,705) (27,506) Contract charges (147,349) (22,611) (39,648) (335,225) (73,456) Contract terminations: Surrender benefits (2,250,650) (1,465,455) (759,083) (2,843,942) (9,556,704) Death benefits (1,177,871) (138,929) (260,867) (896,186) (1,826,905) ------------- ------------- -------------- ------------ ------------- Units outstanding at end of year 298,230,334 28,846,070 45,619,068 622,501,286 182,343,013 ============= ============= ============== ============ =============
See accompanying notes to financial statements. 32 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, YEAR ENDED DEC. 31, 2006 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ------------------------------------ ------------- ------------- -------------- ------------ ------------- OPERATIONS Investment income (loss) -- net $ (659,394) $ (2,478,736) $ (7,787,379) $ (76,314) $ (490,552) Net realized gain (loss) on sales of investments 7,961,223 17,016,852 10,845,670 2,042,934 4,402,302 Distributions from capital gains 10,615,004 49,972,802 117,064,344 593,549 1,264,814 Net change in unrealized appreciation or depreciation of investments 28,207,129 (18,987,851) (10,787,068) 12,713,169 29,653,447 ------------- ------------- -------------- ------------ ------------- Net increase (decrease) in net assets resulting from operations 46,123,962 45,523,067 109,335,567 15,273,338 34,830,011 ============= ============= ============== ============ ============= CONTRACT TRANSACTIONS Contract purchase payments 32,144,908 8,718,591 274,596,860 2,118,789 31,095,612 Net transfers(1) (44,768,825) (24,078,712) (38,663,896) (3,606,407) (1,207,783) Transfers for policy loans (134,978) (202,224) (391,826) (13,942) (125,334) Adjustments to net assets allocated to contracts in payout period (65,711) 106,378 (56,130) (23,897) (138,260) Contract charges (329,429) (143,415) (1,018,969) (28,749) (159,468) Contract terminations: Surrender benefits (17,896,277) (19,019,603) (37,444,907) (4,639,515) (8,793,270) Death benefits (2,528,924) (3,042,493) (6,028,921) (563,419) (1,018,834) ------------- ------------- -------------- ------------ ------------- Increase (decrease) from contract transactions (33,579,236) (37,661,478) 190,992,211 (6,757,140) 19,652,663 ------------- ------------- -------------- ------------ ------------- Net assets at beginning of year 404,610,456 405,434,028 908,519,104 93,982,118 193,595,813 ------------- ------------- -------------- ------------ ------------- Net assets at end of year $ 417,155,182 $ 413,295,617 $1,208,846,882 $102,498,316 $ 248,078,487 ============= ============= ============== ============ ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 358,053,727 144,212,052 496,239,283 81,956,512 136,453,264 Contract purchase payments 27,427,965 2,893,097 171,131,473 1,739,943 22,156,469 Net transfers(1) (37,919,885) (8,045,712) (19,357,510) (3,048,444) (658,519) Transfers for policy loans (115,397) (66,395) (213,444) (11,515) (85,995) Contract charges (279,870) (47,739) (520,820) (23,673) (105,794) Contract terminations: Surrender benefits (15,083,899) (6,327,583) (19,232,660) (3,795,188) (5,718,072) Death benefits (2,140,828) (1,023,910) (3,131,894) (468,179) (679,293) ------------- ------------- -------------- ------------ ------------- Units outstanding at end of year 329,941,813 131,593,810 624,914,428 76,349,456 151,362,060 ============= ============= ============== ============ =============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 33 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- FTVIPT FRANK FTVIPT FRANK FTVIPT FTVIPT FTVIPT GLOBAL REAL EST, SM CAP VAL, MUTUAL SHARES TEMP DEV MKTS TEMP FOR YEAR ENDED DEC. 31, 2006 (CONTINUED) CL 2 CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 ------------------------------------ ---------------- ------------ ------------- ------------- ------------- OPERATIONS Investment income (loss) -- net $ 8,718,222 $ (827,755) $ 982,308 $ 615 $ 197,084 Net realized gain (loss) on sales of investments 22,367,043 7,079,328 1,290,052 35,460,704 2,908,832 Distributions from capital gains 58,260,359 12,775,854 8,131,098 -- -- Net change in unrealized appreciation or depreciation of investments 38,122,471 32,639,189 30,468,618 26,944,522 6,371,485 ---------------- ------------ ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 127,468,095 51,666,616 40,872,076 62,405,841 9,477,401 ================ ============ ============= ============= ============= CONTRACT TRANSACTIONS Contract purchase payments 94,297,417 40,972,425 52,450,932 3,635,070 1,104,837 Net transfers(1) (99,046,104) (12,086,697) 30,179,187 (1,373,722) (7,740,052) Transfers for policy loans (260,424) (180,247) (147,664) 187,235 (8,363) Adjustments to net assets allocated to contracts in payout period (82,603) 215,301 (50,451) (77,052) 96,363 Contract charges (481,275) (219,910) (166,130) (135,120) (13,962) Contract terminations: Surrender benefits (32,985,650) (14,042,159) (8,987,882) (91,818,755) (2,117,122) Death benefits (5,377,506) (2,340,058) (1,143,323) (2,194,961) (463,280) ---------------- ------------ ------------- ------------- ------------- Increase (decrease) from contract transactions (43,936,145) 12,318,655 72,134,669 (91,777,305) (9,141,579) ---------------- ------------ ------------- ------------- ------------- Net assets at beginning of year 690,004,265 316,892,857 196,107,428 281,628,997 51,495,397 ---------------- ------------ ------------- ------------- ------------- Net assets at end of year $ 773,536,215 $380,878,128 $ 309,114,173 $ 252,257,533 $ 51,831,219 ================ ============ ============= ============= ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 266,642,065 156,166,514 151,139,902 254,244,487 36,373,192 Contract purchase payments 41,698,228 22,965,387 41,311,091 2,971,419 723,135 Net transfers(1) (36,466,892) (4,610,951) 22,211,077 (1,350,030) (5,054,129) Transfers for policy loans (99,299) (82,746) (108,899) 153,820 (5,807) Contract charges (177,953) (99,861) (119,313) (110,849) (9,112) Contract terminations: Surrender benefits (12,192,911) (6,452,950) (6,403,417) (74,666,970) (1,383,218) Death benefits (1,982,515) (1,055,169) (821,131) (1,839,305) (299,636) ---------------- ------------ ------------- ------------- ------------- Units outstanding at end of year 257,420,723 166,830,224 207,209,310 179,402,572 30,344,425 ================ ============ ============= ============= =============
See accompanying notes to financial statements. 34 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM STRUCTD U.S. GLOBAL TECH, INTL GRO, YEAR ENDED DEC. 31, 2006 (CONTINUED) VAL, INST CAP EQ, INST EQ, INST SERV SERV ------------------------------------ -------------- ------------ ------------- ------------ ------------- OPERATIONS Investment income (loss) -- net $ 279,648 $ (102,804) $ 952,849 $ (201,495) $ 1,583,873 Net realized gain (loss) on sales of investments 19,877,626 2,178,202 7,642,394 (1,774,743) 3,661,985 Distributions from capital gains 83,453,220 2,628,099 -- -- -- Net change in unrealized appreciation or depreciation of investments 6,550,842 (508,399) 47,064,719 3,461,795 52,958,691 -------------- ------------ ------------- ------------ ------------- Net increase (decrease) in net assets resulting from operations 110,161,336 4,195,098 55,659,962 1,485,557 58,204,549 -------------- ------------ ------------- ------------ ------------- CONTRACT TRANSACTIONS Contract purchase payments 148,241,743 817,547 50,831,768 1,077,271 3,613,694 Net transfers(1) (152,560,015) (6,635,794) (55,335,687) (1,001,303) 13,909,019 Transfers for policy loans (191,288) (1,881) (105,692) (21,993) (80,607) Adjustments to net assets allocated to contracts in payout period 29,614 (4,365) (49,335) (767) (15,236) Contract charges (753,464) (13,339) (876,665) (18,241) (78,356) Contract terminations: Surrender benefits (30,741,872) (1,910,649) (15,844,670) (1,202,667) (7,431,203) Death benefits (4,662,427) (265,101) (2,725,276) (152,817) (1,059,787) -------------- ------------ ------------- ------------ ------------- Increase (decrease) from contract transactions (40,637,709) (8,013,582) (24,105,557) (1,320,517) 8,857,524 -------------- ------------ ------------- ------------ ------------- Net assets at beginning of year 765,494,283 41,090,631 492,636,454 23,478,671 125,579,484 -------------- ------------ ------------- ------------ ------------- Net assets at end of year $ 835,017,910 $ 37,272,147 $ 524,190,859 $ 23,643,711 $ 192,641,557 ============== ============ ============= ============ ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 345,786,554 23,431,695 467,555,210 57,633,928 134,815,795 Contract purchase payments 65,106,135 438,602 46,170,183 2,582,256 3,144,141 Net transfers(1) (67,475,567) (3,616,754) (50,950,892) (2,913,554) 11,591,149 Transfers for policy loans (80,517) (863) (95,277) (49,618) (72,233) Contract charges (326,874) (7,141) (794,648) (43,282) (68,997) Contract terminations: Surrender benefits (13,274,549) (1,029,098) (14,284,412) (2,648,696) (6,343,474) Death benefits (1,979,988) (144,698) (2,506,944) (386,674) (968,569) -------------- ------------ ------------- ------------ ------------- Units outstanding at end of year 327,755,194 19,071,743 445,093,220 54,174,360 142,097,812 ============== ============ ============= ============ =============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 35 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- JANUS ASPEN LAZARD LM PTNRS MFS MFS MID CAP GRO, RETIRE VAR SM CAP INV GRO STOCK, NEW DIS, YEAR ENDED DEC. 31, 2006 (CONTINUED) SERV INTL EQ, SERV GRO, CL II SERV CL SERV CL ------------------------------------ ------------ ------------- ----------- -------------- ------------- OPERATIONS Investment income (loss) -- net $ (258,514) $ 267,789 $ (11,432) $ (1,237,579) $ (906,400) Net realized gain (loss) on sales of investments (1,345,794) 9,851,445 (4,920) 41,487 3,028,247 Distributions from capital gains -- 8,479,311 122,856 -- 1,961,927 Net change in unrealized appreciation or depreciation of investments 5,159,841 20,762,035 7,295 9,478,142 7,418,304 ------------ ------------- ----------- -------------- ------------- Net increase (decrease) in net assets resulting from operations 3,555,533 39,360,580 113,799 8,282,050 11,502,078 ============ ============= =========== ============== ============= CONTRACT TRANSACTIONS Contract purchase payments 1,182,844 10,519,520 1,434,836 10,661,572 5,746,183 Net transfers(1) (4,554,867) (31,137,768) 881,663 (22,576,010) (22,519,676) Transfers for policy loans (39,137) (34,467) -- 18,039 23,144 Adjustments to net assets allocated to contracts in payout period (417) (47,704) -- (18,796) (6,997) Contract charges (21,489) (121,690) (596) (93,637) (77,409) Contract terminations: Surrender benefits (1,441,410) (8,498,427) (12,052) (5,774,401) (5,001,248) Death benefits (137,771) (1,020,436) (10,736) (651,087) (684,313) ------------ ------------- ----------- -------------- ------------- Increase (decrease) from contract transactions (5,012,247) (30,340,972) 2,293,115 (18,434,320) (22,520,316) ------------ ------------- ----------- -------------- ------------- Net assets at beginning of year 31,714,841 198,502,231 110,345 146,971,276 109,920,321 ------------ ------------- ----------- -------------- ------------- Net assets at end of year $ 30,258,127 $ 207,521,839 $ 2,517,259 $ 136,819,006 $ 98,902,083 ============ ============= =========== ============== ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 59,483,000 188,675,039 104,366 216,007,351 122,560,119 Contract purchase payments 2,115,564 8,998,604 1,297,208 14,487,411 5,975,902 Net transfers(1) (8,184,835) (27,284,171) 788,300 (33,330,896) (24,101,275) Transfers for policy loans (66,586) (30,148) -- 29,098 25,310 Contract charges (38,690) (104,142) (529) (134,494) (82,057) Contract terminations: Surrender benefits (2,566,775) (7,221,498) (10,689) (8,202,168) (5,263,841) Death benefits (248,563) (880,928) (9,261) (966,285) (728,454) ------------ ------------- ----------- -------------- ------------- Units outstanding at end of year 50,493,115 162,152,756 2,169,395 187,890,017 98,385,704 ============ ============= =========== ============== =============
See accompanying notes to financial statements. 36 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- MFS MFS NB AMT NB AMT SOC OPPEN TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, GLOBAL SEC VA, PERIOD ENDED DEC. 31, 2006 (CONTINUED) SERV CL SERV CL CL S(3) CL S(2) SERV -------------------------------------- ------------- ------------- ------------- ----------- -------------- OPERATIONS Investment income (loss) -- net $ 1,142,350 $ 1,995,633 $ 748,781 $ (1,235) $ (238,080) Net realized gain (loss) on sales of investments 68,485 4,632,716 60,228 799 513,986 Distributions from capital gains 2,939,207 7,578,477 174,764 -- 6,193,209 Net change in unrealized appreciation or depreciation of investments 5,748,655 38,706,779 17,808,152 31,679 14,978,891 ------------- ------------- ------------- ----------- -------------- Net increase (decrease) in net assets resulting from operations 9,898,697 52,913,605 18,791,925 31,243 21,448,006 ============= ============= ============= =========== ============== CONTRACT TRANSACTIONS Contract purchase payments 22,717,555 53,336,072 79,640,304 418,700 38,417,651 Net transfers(1) (5,112,182) 11,301,685 62,524,308 82,877 26,653,017 Transfers for policy loans (51,029) (92,391) (14,410) -- (97,499) Adjustments to net assets allocated to contracts in payout period (18,825) (16,191) -- -- (12,735) Contract charges (80,500) (124,397) (100,934) -- (88,579) Contract terminations: Surrender benefits (2,694,518) (7,274,065) (518,749) (2,469) (3,468,678) Death benefits (723,263) (1,619,667) (216,624) -- (1,094,308) ------------- ------------- ------------- ----------- -------------- Increase (decrease) from contract transactions 14,037,238 55,511,046 141,313,895 499,108 60,308,869 ------------- ------------- ------------- ----------- -------------- Net assets at beginning of year 82,895,339 145,619,360 -- -- 94,586,941 ------------- ------------- ------------- ----------- -------------- Net assets at end of year $ 106,831,274 $ 254,044,011 $ 160,105,820 $ 530,351 $ 176,343,816 ============= ============= ============= =========== ============== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 74,458,675 103,680,834 -- -- 72,422,805 Contract purchase payments 20,298,942 37,874,127 78,388,881 389,299 29,079,012 Net transfers(1) (4,440,284) 7,023,854 69,878,959 78,658 19,524,827 Transfers for policy loans (45,232) (60,610) (14,606) -- (71,282) Contract charges (70,082) (79,368) (103,440) -- (63,789) Contract terminations: Surrender benefits (2,334,588) (4,565,727) (523,734) (1,969) (2,494,004) Death benefits (630,828) (1,057,312) (215,497) -- (785,747) ------------- ------------- ------------- ----------- -------------- Units outstanding at end of year 87,236,603 142,815,798 147,410,563 465,988 117,611,822 ============= ============= ============= =========== ==============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 37 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- OPPEN OPPEN OPPEN PIMCO VIT PIONEER MAIN ST SM STRATEGIC VAL VA, ALL ASSET, EQ INC VCT, PERIOD ENDED DEC. 31, 2006 (CONTINUED) CAP VA, SERV BOND VA, SERV SERV(5) ADVISOR CL(3) CL II -------------------------------------- ------------- ------------- --------- ------------- ------------- OPERATIONS Investment income (loss) -- net $ (742,516) $ 12,768,171 $ (668) $ 12,897,137 $ 949,433 Net realized gain (loss) on sales of investments 327,529 (1,425,673) 889 4,469 2,713,412 Distributions from capital gains 1,919,670 -- 32,273 1,106,027 1,034,106 Net change in unrealized appreciation or depreciation of investments 8,619,619 31,751,609 (21,469) (616,607) 7,799,925 ------------- ------------- --------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 10,124,302 43,094,107 11,025 13,391,026 12,496,876 ============= ============= ========= ============= ============= CONTRACT TRANSACTIONS Contract purchase payments 29,863,721 403,143,002 405,762 254,445,314 1,641,563 Net transfers(1) 23,626,757 176,103,087 (20,846) 194,981,368 (5,019,767) Transfers for policy loans (37,013) (194,493) -- (35,833) (16,624) Adjustments to net assets allocated to contracts in payout period (6,218) (45,302) -- -- (8,803) Contract charges (51,725) (787,643) -- (300,493) (40,104) Contract terminations: Surrender benefits (2,009,834) (15,029,576) (323) (1,518,792) (2,974,198) Death benefits (499,895) (3,043,649) -- (729,918) (516,551) ------------- ------------- --------- ------------- ------------- Increase (decrease) from contract transactions 50,885,793 560,145,426 384,593 446,841,646 (6,934,484) ------------- ------------- --------- ------------- ------------- Net assets at beginning of year 52,481,800 332,896,194 -- -- 64,028,911 ------------- ------------- --------- ------------- ------------- Net assets at end of year $ 113,491,895 $ 936,135,727 $ 395,618 $ 460,232,672 $ 69,591,303 ============= ============= ========= ============= ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 41,895,217 306,977,307 -- -- 53,521,901 Contract purchase payments 23,679,055 372,973,288 390,976 245,693,310 1,245,128 Net transfers(1) 17,727,200 157,805,560 (21,222) 194,477,069 (4,022,615) Transfers for policy loans (29,338) (177,961) -- (34,804) (12,485) Contract charges (38,306) (710,982) -- (290,165) (30,774) Contract terminations: Surrender benefits (1,484,304) (13,535,480) (4) (1,463,311) (2,235,096) Death benefits (364,460) (2,746,934) -- (700,259) (401,879) ------------- ------------- --------- ------------- ------------- Units outstanding at end of year 81,385,064 820,584,798 369,750 437,681,840 48,064,180 ============= ============= ========= ============= =============
See accompanying notes to financial statements. 38 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------------- PIONEER PUT VT PUT VT PUT VT PUT VT INTL VAL VCT HLTH SCIENCES, INTL EQ, INTL NEW OPP, NEW OPP, PERIOD ENDED DEC. 31, 2006 (CONTINUED) CL II(6) CL IB CL IB CL IB CL IA -------------------------------------- ------------- -------------- ------------- ------------- ------------- OPERATIONS Investment income (loss) -- net $ (2,834) $ (314,306) $ (235,956) $ 440,200 $ (2,774,711) Net realized gain (loss) on sales of investments 56 2,187,489 6,062,202 (778,110) (15,687,610) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 62,298 (1,655,620) 16,618,662 20,600,637 35,651,256 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 59,520 217,563 22,444,908 20,262,727 17,188,935 ============= ============= ============= ============= ============= CONTRACT TRANSACTIONS Contract purchase payments 4,361 20,595,138 5,552,763 2,376,731 5,992,765 Net transfers(1) 8,639,405 (19,660,915) (9,486,378) (10,216,656) (3,686,203) Transfers for policy loans 130 (29,922) (35,545) (44,437) 360,965 Adjustments to net assets allocated to contracts in payout period -- (3,531) (2,630) (10,690) (114,870) Contract charges (464) (45,916) (64,046) (53,355) (223,692) Contract terminations: Surrender benefits (35,360) (1,989,176) (4,231,037) (5,249,268) (80,617,716) Death benefits -- (551,041) (652,823) (743,944) (2,348,958) ------------- ------------- ------------- ------------- ------------- Increase (decrease) from contract transactions 8,608,072 (1,685,363) (8,919,696) (13,941,619) (80,637,709) ------------- ------------- ------------- ------------- ------------- Net assets at beginning of year -- 53,264,100 89,094,307 88,141,737 286,495,519 ------------- ------------- ------------- ------------- ------------- Net assets at end of year $ 8,667,592 $ 51,796,300 $ 102,619,519 $ 94,462,845 $ 223,046,745 ============= ============= ============= ============= ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- 48,772,992 68,853,621 90,632,480 206,197,208 Contract purchase payments 4,288 18,862,022 3,856,343 2,187,577 4,222,558 Net transfers(1) 8,639,378 (18,717,413) (6,690,982) (9,544,535) (2,798,768) Transfers for policy loans 130 (27,762) (24,190) (41,908) 255,437 Contract charges (464) (42,206) (44,250) (49,331) (158,371) Contract terminations: Surrender benefits (35,426) (1,820,759) (2,871,610) (4,824,677) (56,785,148) Death benefits -- (507,677) (453,220) (698,371) (1,697,082) ------------- ------------- ------------- ------------- ------------- Units outstanding at end of year 8,607,906 46,519,197 62,625,712 77,661,235 149,235,834 ============= ============= ============= ============= =============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 39 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------------- PUT VT VISTA, RVS VP RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2006 (CONTINUED) CL IB BAL CASH MGMT CORE BOND DIV BOND ------------------------------------ ------------- -------------- ------------- ------------- -------------- OPERATIONS Investment income (loss) -- net $ (778,387) $ 6,556,040 $ 22,385,658 $ 1,969,537 $ 48,193,312 Net realized gain (loss) on sales of investments (4,577,321) (11,035,585) (2,747) (523,260) (2,915,929) Distributions from capital gains -- 25,904,304 -- -- -- Net change in unrealized appreciation or depreciation of investments 9,287,878 37,072,062 3,492 290,377 10,476,300 ------------- -------------- ------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations 3,932,170 58,496,821 22,386,403 1,736,654 55,753,683 ============= ============== ============= ============= ============== CONTRACT TRANSACTIONS Contract purchase payments 4,849,523 21,645,374 601,535,679 10,611,795 639,685,786 Net transfers(1) (14,139,921) (12,069,959) (214,166,209) 11,472,255 162,654,104 Transfers for policy loans (8,023) 289,870 537,883 (9,140) (72,760) Adjustments to net assets allocated to contracts in payout period (110,419) (422,712) (101,045) (1,780) (206,337) Contract charges (68,160) (304,096) (341,262) (35,670) (1,634,527) Contract terminations: Surrender benefits (4,632,906) (90,386,268) (85,296,917) (18,863,537) (103,885,975) Death benefits (883,719) (7,395,138) (7,838,697) (511,920) (14,323,105) ------------- -------------- ------------- ------------- -------------- Increase (decrease) from contract transactions (14,993,625) (88,642,929) 294,329,432 2,662,003 682,217,186 ------------- -------------- ------------- ------------- -------------- Net assets at beginning of year 95,729,022 501,036,003 477,358,407 58,374,064 1,094,933,051 ------------- -------------- ------------- ------------- -------------- Net assets at end of year $ 84,667,567 $ 470,889,895 $ 794,074,242 $ 62,772,721 $1,832,903,920 ============= ============== ============= ============= ============== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 94,134,024 360,862,741 429,069,177 40,316,903 842,519,662 Contract purchase payments 4,532,233 17,765,116 558,378,343 10,314,547 559,930,796 Net transfers(1) (13,749,271) (10,431,189) (205,605,800) 11,100,903 127,692,705 Transfers for policy loans (7,920) 175,435 461,662 (8,899) (72,722) Contract charges (65,340) (214,148) (303,030) (34,505) (1,280,182) Contract terminations: Surrender benefits (4,455,763) (54,471,452) (73,198,623) (1,790,425) (76,520,200) Death benefits (851,188) (4,988,000) (7,013,705) (493,882) (10,918,002) ------------- -------------- ------------- ------------- -------------- Units outstanding at end of year 79,536,775 308,698,503 701,788,024 59,404,642 1,441,352,057 ============= ============== ============= ============= ==============
See accompanying notes to financial statements. 40 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP FUNDAMENTAL RVS VP GLOBAL INFLATION PERIOD ENDED DEC. 31, 2006 (CONTINUED) DIV EQ INC EMER MKTS VAL(3) GLOBAL BOND PROT SEC -------------------------------------- --------------- ------------- ------------- ------------- ---------------- OPERATIONS Investment income (loss) -- net $ 9,284,581 $ (1,521,150) $ 143,704 $ 12,524,256 $ 7,807,022 Net realized gain (loss) on sales of investments 4,266,363 9,963,535 75,476 830,099 (880,389) Distributions from capital gains 124,932,540 40,792,591 461,123 -- 15,773 Net change in unrealized appreciation or depreciation of investments 147,419,041 32,532,980 28,207,545 17,328,615 (4,836,947) --------------- ------------- ------------- ------------- --------------- Net increase (decrease) in net assets resulting from operations 285,902,525 81,767,956 28,887,848 30,682,970 2,105,459 =============== ============= ============= ============= =============== CONTRACT TRANSACTIONS Contract purchase payments 555,298,098 128,314,137 199,977,843 199,252,325 267,420,181 Net transfers(1) 249,248,191 (33,211,352) 146,350,197 11,372,124 (7,949,689) Transfers for policy loans (607,263) (103,728) (28,790) (13,632) (41,699) Adjustments to net assets allocated to contracts in payout period 64,887 (6,625) -- (55,185) 21,889 Contract charges (1,208,971) (465,722) (242,774) (548,795) (828,922) Contract terminations: Surrender benefits (54,295,521) (8,491,516) (3,135,870) (43,525,348) (5,882,398) Death benefits (10,936,826) (1,675,618) (536,951) (4,511,501) (1,602,293) --------------- ------------- ------------- ------------- --------------- Increase (decrease) from contract transactions 737,562,595 84,359,576 342,383,655 161,969,988 251,137,069 --------------- ------------- ------------- ------------- --------------- Net assets at beginning of year 1,175,706,849 213,076,384 -- 454,345,853 186,089,949 --------------- ------------- ------------- ------------- --------------- Net assets at end of year $ 2,199,171,969 $ 379,203,916 $ 371,271,503 $ 646,998,811 $ 439,332,477 =============== ============= ============= ============= =============== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 772,974,225 134,343,097 -- 331,823,075 177,692,196 Contract purchase payments 400,237,515 83,429,887 191,294,485 165,927,605 258,394,125 Net transfers(1) 153,611,812 (19,968,153) 149,209,701 8,715,549 (8,089,577) Transfers for policy loans (390,299) (60,376) (27,839) (14,592) (40,350) Contract charges (719,623) (259,010) (232,430) (395,161) (796,092) Contract terminations: Surrender benefits (32,651,964) (4,668,340) (1,080,102) (30,068,122) (5,625,588) Death benefits (6,673,605) (960,093) (509,964) (3,250,148) (1,530,386) --------------- ------------- ------------- ------------- --------------- Units outstanding at end of year 1,286,388,061 191,857,012 338,653,851 472,738,206 420,004,328 =============== ============= ============= ============= ===============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 41 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2006 (CONTINUED) GRO HI YIELD BOND INC OPP INTL OPP LG CAP EQ ------------------------------------ ------------- ------------- ------------- ------------- -------------- OPERATIONS Investment income (loss) -- net $ 345,115 $ 59,130,143 $ 9,910,078 $ 3,312,050 $ 1,796,202 Net realized gain (loss) on sales of investments (18,582,405) (14,722,725) 7,649 2,704,131 (5,429,301) Distributions from capital gains -- -- 26,337 -- -- Net change in unrealized appreciation or depreciation of investments 50,640,833 39,925,057 5,912,554 75,798,560 132,131,274 ------------- ------------- ------------- ------------- -------------- Net increase (decrease) in net assets resulting from operations 32,403,543 84,332,475 15,856,618 81,814,741 128,498,175 ============= ============= ============= ============= ============== CONTRACT TRANSACTIONS Contract purchase payments 130,610,650 98,219,660 203,888,171 21,784,954 47,688,948 Net transfers(1) (94,081,010) (89,543,028) 67,556,389 30,316,105 777,706,067 Transfers for policy loans (227,211) (11,751) (63,205) 109,717 650,802 Adjustments to net assets allocated to contracts in payout period (31,221) (339,214) (2,786) (108,824) 6,795,174 Contract charges (386,922) (479,549) (337,309) (223,835) (1,998,460) Contract terminations: Surrender benefits (15,105,018) (96,512,296) (2,995,713) (81,287,988) (191,128,396) Death benefits (2,464,957) (9,241,532) (1,349,415) (3,424,803) (11,539,056) ------------- ------------- ------------- ------------- -------------- Increase (decrease) from contract transactions 18,314,311 (97,907,710) 266,696,132 (32,834,674) 628,175,079 ------------- ------------- ------------- ------------- -------------- Net assets at beginning of year 398,436,486 919,120,879 63,156,854 370,644,637 570,540,195 ------------- ------------- ------------- ------------- -------------- Net assets at end of year $ 449,154,340 $ 905,545,644 $ 345,709,604 $ 419,624,704 $1,327,213,449 ============= ============= ============= ============= ============== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 579,086,006 715,854,421 59,284,871 335,839,115 587,040,441 Contract purchase payments 178,530,553 78,382,972 192,437,574 19,514,744 48,672,665 Net transfers(1) (141,979,990) (68,631,596) 62,250,099 22,450,622 673,998,525 Transfers for policy loans (313,487) (15,242) (58,646) 69,548 414,344 Contract charges (537,829) (363,843) (306,002) (186,441) (2,046,421) Contract terminations: Surrender benefits (21,018,069) (69,114,869) (2,723,357) (60,318,945) (147,413,690) Death benefits (3,489,210) (6,907,897) (1,231,814) (2,863,740) (10,746,287) ------------- ------------- ------------- ------------- -------------- Units outstanding at end of year 590,277,974 649,203,946 309,652,725 314,504,903 1,149,919,577 ============= ============= ============= ============= ==============
See accompanying notes to financial statements. 42 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2006 (CONTINUED) LG CAP VAL MID CAP GRO MID CAP VAL S&P 500 SELECT VAL ------------------------------------ ------------- ------------- ------------- ------------- ------------- OPERATIONS Investment income (loss) -- net $ 90,975 $ (1,584,611) $ 321,846 $ 1,566,761 $ 344,079 Net realized gain (loss) on sales of investments 171,496 406,899 687,240 6,612,710 340,707 Distributions from capital gains 1,127,493 11,709,771 3,195,427 1,207,804 2,550,253 Net change in unrealized appreciation or depreciation of investments 2,006,663 (20,166,353) 20,882,338 26,477,557 372,147 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 3,396,627 (9,634,294) 25,086,851 35,864,832 3,607,186 ============= ============= ============= ============= ============= CONTRACT TRANSACTIONS Contract purchase payments 2,955,309 11,997,014 160,455,364 19,332,222 2,258,381 Net transfers(1) 2,369,439 141,591,497 150,448,005 (34,843,805) (1,833,189) Transfers for policy loans (8,563) 68,765 (65,718) (101,294) (13,059) Adjustments to net assets allocated to contracts in payout period (1,563) 907,388 7,403 (130,274) (2,056) Contract charges (13,913) (175,248) (183,261) (181,499) (23,517) Contract terminations: Surrender benefits (629,671) (28,931,491) (5,086,039) (13,166,955) (720,353) Death benefits (74,372) (1,537,890) (636,704) (2,143,933) (233,572) ------------- ------------- ------------- ------------- ------------- Increase (decrease) from contract transactions 4,596,666 123,920,035 304,939,050 (31,235,538) (567,365) ------------- ------------- ------------- ------------- ------------- Net assets at beginning of year 16,462,268 107,722,399 17,507,122 272,013,850 24,576,716 ------------- ------------- ------------- ------------- ------------- Net assets at end of year $ 24,455,561 $ 222,008,140 $ 347,533,023 $ 276,643,144 $ 27,616,537 ============= ============= ============= ============= ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 11,470,243 87,823,904 12,716,573 304,081,529 18,945,737 Contract purchase payments 2,508,252 10,419,091 142,349,489 20,159,906 1,923,468 Net transfers(1) 1,911,441 132,899,649 121,326,229 (38,002,490) (1,530,035) Transfers for policy loans (7,218) 80,218 (54,673) (105,277) (11,243) Contract charges (11,507) (160,735) (139,052) (192,563) (19,578) Contract terminations: Surrender benefits (521,588) (29,403,199) (1,972,622) (13,647,983) (598,967) Death benefits (61,110) (1,457,394) (515,839) (2,302,811) (199,561) ------------- ------------- ------------- ------------- ------------- Units outstanding at end of year 15,288,513 200,201,534 273,710,105 269,990,311 18,509,821 ============= ============= ============= ============= =============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 43 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------------- ROYCE RVS VP RVS VP RVS VP MICRO-CAP, THIRD AVE YEAR ENDED DEC. 31, 2006 (CONTINUED) SHORT DURATION SM CAP ADV SM CAP VAL INVEST CI VAL ------------------------------------ -------------- -------------- -------------- -------------- --------------- OPERATIONS Investment income (loss) -- net $ 10,438,323 $ (1,495,283) $ (1,905,255) $ (926,269) $ 822,319 Net realized gain (loss) on sales of investments (2,520,836) 5,310,029 8,938,180 7,802,186 11,224,684 Distributions from capital gains -- 21,962,756 46,473,683 7,096,865 8,335,527 Net change in unrealized appreciation or depreciation of investments 2,149,031 (7,515,503) 18,565,369 10,460,000 5,579,074 -------------- -------------- -------------- -------------- --------------- Net increase (decrease) in net assets resulting from operations 10,066,518 18,261,999 72,071,977 24,432,782 25,961,604 ============== ============== ============== ============== =============== CONTRACT TRANSACTIONS Contract purchase payments 64,904,046 9,916,790 133,226,807 2,519,338 3,598,686 Net transfers(1) (81,704,652) (31,944,605) (78,559,152) (12,245,733) (16,491,629) Transfers for policy loans 1,975 (52,835) (106,611) (31,117) (95,635) Adjustments to net assets allocated to contracts in payout period (154,258) (142,846) (27,552) 85,268 (44,778) Contract charges (213,179) (122,531) (759,187) (38,201) (51,973) Contract terminations: Surrender benefits (19,113,919) (8,114,869) (14,352,741) (6,588,783) (8,537,212) Death benefits (3,212,370) (1,324,189) (2,335,275) (856,165) (1,404,043) -------------- -------------- -------------- -------------- --------------- Increase (decrease) from contract transactions (39,492,357) (31,785,085) 37,086,289 (17,155,393) (23,026,584) -------------- -------------- -------------- -------------- --------------- Net assets at beginning of year 361,416,923 183,927,377 370,927,168 128,705,300 186,631,364 -------------- -------------- -------------- -------------- --------------- Net assets at end of year $ 331,991,084 $ 170,404,291 $ 480,085,434 $ 135,982,689 $ 189,566,384 ============== ============== ============== ============== =============== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 302,533,509 116,135,726 234,332,659 46,205,214 64,866,100 Contract purchase payments 55,599,359 6,190,961 94,239,429 811,178 1,162,043 Net transfers(1) (68,390,746) (19,125,022) (46,565,840) (3,967,305) (5,390,862) Transfers for policy loans 1,104 (32,715) (64,583) (9,639) (30,651) Contract charges (177,922) (73,023) (438,748) (12,364) (16,838) Contract terminations: Surrender benefits (16,052,632) (4,818,690) (8,342,044) (2,130,139) (2,766,291) Death benefits (2,682,096) (791,514) (1,380,180) (280,301) (458,520) -------------- -------------- -------------- -------------- --------------- Units outstanding at end of year 270,830,576 97,485,723 271,780,693 40,616,644 57,364,981 ============== ============== ============== ============== ===============
See accompanying notes to financial statements. 44 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------------ VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL REAL MID CAP GRO, WANGER WANGER PERIOD ENDED DEC. 31, 2006 (CONTINUED) CL II EST, CL II(3) CL II(3) INTL SM CAP U.S. SM CO -------------------------------------- -------------- -------------- -------------- -------------- --------------- OPERATIONS Investment income (loss) -- net $ 1,451,831 $ 1,905,712 $ (298,646) $ (2,534,949) $ (5,757,292) Net realized gain (loss) on sales of investments (147,763) 596,282 38,179 18,852,292 24,865,501 Distributions from capital gains 31,916,381 685,750 771,121 -- 28,583,947 Net change in unrealized appreciation or depreciation of investments 56,791,325 22,481,253 7,936,631 194,651,715 5,289,397 -------------- -------------- -------------- -------------- --------------- Net increase (decrease) in net assets resulting from operations 90,011,774 25,668,997 8,447,285 210,969,058 52,981,553 ============== ============== ============== ============== =============== CONTRACT TRANSACTIONS Contract purchase payments 356,742,795 76,626,865 51,574,400 176,365,801 149,374,362 Net transfers(1) (77,730,510) 68,409,166 40,938,734 (40,775,128) (100,772,290) Transfers for policy loans (154,283) (19,258) (15,867) (281,393) (274,509) Adjustments to net assets allocated to contracts in payout period (5,839) -- -- (30,046) (57,295) Contract charges (1,519,463) (89,556) (62,383) (728,738) (756,144) Contract terminations: Surrender benefits (10,525,254) (771,855) (369,448) (23,876,836) (33,372,599) Death benefits (2,639,462) (203,222) (160,934) (3,433,566) (5,006,173) -------------- -------------- -------------- -------------- --------------- Increase (decrease) from contract transactions 264,167,984 143,952,140 91,904,502 107,240,094 9,135,352 -------------- -------------- -------------- -------------- --------------- Net assets at beginning of year 456,174,682 -- -- 539,106,833 828,366,953 -------------- -------------- -------------- -------------- --------------- Net assets at end of year $ 810,354,440 $ 169,621,137 $ 100,351,787 $ 857,315,985 $ 890,483,858 ============== ============== ============== ============== =============== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 384,396,091 -- -- 318,154,475 478,752,122 Contract purchase payments 306,270,250 69,842,574 52,495,294 108,965,130 91,334,705 Net transfers(1) (63,655,060) 67,555,538 46,584,165 (20,035,596) (58,157,114) Transfers for policy loans (125,874) (17,771) (16,147) (149,530) (158,529) Contract charges (1,213,840) (79,356) (65,468) (362,665) (427,071) Contract terminations: Surrender benefits (8,392,626) (680,186) (385,483) (11,935,140) (18,855,273) Death benefits (2,119,252) (178,317) (164,610) (1,748,629) (2,829,986) -------------- -------------- -------------- -------------- --------------- Units outstanding at end of year 615,159,689 136,442,482 98,447,751 392,888,045 489,658,854 ============== ============== ============== ============== ===============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 45 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------ WF ADV VT WF ADV VT WF ADV VT WF ADV VT YEAR ENDED DEC. 31, 2006 (CONTINUED) ASSET ALLOC INTL CORE OPP SM CAP GRO ------------------------------------ -------------- -------------- -------------- --------------- OPERATIONS Investment income (loss) -- net $ 1,382,704 $ 143,682 $ (822,530) $ (412,063) Net realized gain (loss) on sales of investments 1,808,662 1,043,974 4,334,599 1,294,718 Distributions from capital gains 1,084,634 752,307 10,396,375 1,181,723 Net change in unrealized appreciation or depreciation of investments 5,847,171 1,556,090 (3,993,484) 7,006,886 -------------- -------------- -------------- --------------- Net increase (decrease) in net assets resulting from operations 10,123,171 3,496,053 9,914,960 9,071,264 ============== ============== ============== =============== CONTRACT TRANSACTIONS Contract purchase payments 2,610,609 383,694 7,493,408 7,895,239 Net transfers(1) (6,332,507) (1,872,629) (14,650,331) 8,475,445 Transfers for policy loans (6,986) (14,425) (16,189) (27,524) Adjustments to net assets allocated to contracts in payout period 47,307 -- (7,788) (1,728) Contract charges (65,310) (14,044) (72,028) (31,083) Contract terminations: Surrender benefits (5,012,031) (1,006,718) (4,485,014) (2,369,514) Death benefits (827,519) (58,559) (645,967) (282,396) -------------- -------------- -------------- --------------- Increase (decrease) from contract transactions (9,586,437) (2,582,681) (12,383,909) 13,658,439 -------------- -------------- -------------- --------------- Net assets at beginning of year 96,853,363 18,913,420 95,961,946 37,470,933 -------------- -------------- -------------- --------------- Net assets at end of year $ 97,390,097 $ 19,826,792 $ 93,492,997 $ 60,200,636 ============== ============== ============== =============== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 84,218,501 17,548,520 78,279,948 38,139,345 Contract purchase payments 2,182,742 324,799 6,020,601 7,237,609 Net transfers(1) (5,453,046) (1,570,929) (11,501,633) 7,625,562 Transfers for policy loans (5,414) (12,067) (12,550) (25,065) Contract charges (54,916) (11,832) (56,466) (28,371) Contract terminations: Surrender benefits (4,185,624) (825,924) (3,475,413) (2,121,077) Death benefits (701,999) (48,281) (508,065) (262,371) -------------- -------------- -------------- --------------- Units outstanding at end of year 76,000,244 15,404,286 68,746,422 50,565,632 ============== ============== ============== ===============
(1) Includes transfer activity from (to) other subaccounts and transfers from (to) RiverSource Life's fixed account. (2) For the period June 26, 2006 (commencement of operations) to Dec. 31, 2006. (3) For the period May 1, 2006 (commencement of operations) to Dec. 31, 2006. (4) For the period April 28, 2006 (commencement of operations) to Dec. 31, 2006. (5) For the period Sept. 15, 2006 (commencement of operations) to Dec. 31, 2006. (6) For the period Dec. 15, 2006 (commencement of operations) to Dec. 31, 2006. See accompanying notes to financial statements. 46 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, YEAR ENDED DEC. 31, 2005 SER I SER II SER I SER II SER I ------------------------ ------------- ------------- ------------- ------------- ------------- OPERATIONS Investment income (loss) -- net $ (591,057) $ (1,309,161) $ (463,090) $ (413,331) $ 673,718 Net realized gain (loss) on sales of investments (3,861,293) 174,672 1,493,524 736,782 8,421,142 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 10,236,668 19,806,751 3,388,947 3,919,007 9,964,559 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 5,784,318 18,672,262 4,419,381 4,242,458 19,059,419 ============= ============= ============= ============= ============= CONTRACT TRANSACTIONS Contract purchase payments 2,526,731 158,355,211 1,118,544 9,278,215 11,383,447 Net transfers(1) (4,376,410) 11,414,580 (7,239,725) (405,561) (23,381,815) Transfers for policy loans (10,539) (19,508) (36,832) (14,676) 511,126 Adjustments to net assets allocated to contracts in payout period (9,621) (2,786) (3,855) (3,035) (207,089) Contract charges (40,670) (84,237) (23,164) (35,651) (376,012) Contract terminations: Surrender benefits (2,926,956) (2,632,577) (2,134,750) (1,117,186) (99,401,317) Death benefits (680,268) (567,701) (303,500) (218,416) (5,254,324) ------------- ------------- ------------- ------------- ------------- Increase (decrease) from contract transactions (5,517,733) 166,462,982 (8,623,282) 7,483,690 (116,725,984) ------------- ------------- ------------- ------------- ------------- Net assets at beginning of year 78,247,567 68,890,696 57,869,381 42,616,251 582,105,361 ------------- ------------- ------------- ------------- ------------- Net assets at end of year $ 78,514,152 $ 254,025,940 $ 53,665,480 $ 54,342,399 $ 484,438,796 ============= ============= ============= ============= ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 86,822,359 69,240,224 38,647,649 36,244,332 351,566,359 Contract purchase payments 2,815,980 159,129,012 739,549 7,876,997 6,906,219 Net transfers(1) (4,888,001) 11,589,486 (4,767,310) (294,754) (14,164,619) Transfers for policy loans (11,772) (20,691) (24,032) (12,062) 315,141 Contract charges (45,207) (82,507) (15,338) (29,976) (228,452) Contract terminations: Surrender benefits (3,238,650) (2,613,704) (1,407,805) (937,558) (60,065,914) Death benefits (751,380) (558,873) (201,585) (185,642) (3,216,627) ------------- ------------- ------------- ------------- ------------- Units outstanding at end of year 80,703,329 236,682,947 32,971,128 42,661,337 281,112,107 ============= ============= ============= ============= =============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 47 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- AIM VI AIM VI AIM VI AIM VI AB VPS DYN, FIN SERV, INTL GRO, TECH, GLOBAL TECH, PERIOD ENDED DEC. 31, 2005 (CONTINUED) SER I SER I SER II(2) SER I CL B(2) -------------------------------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS Investment income (loss) -- net $ (140,484) $ 121,631 $ 764 $ (229,549) $ (2,169) Net realized gain (loss) on sales of investments 782,434 520,257 4 78,028 (47) Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 863,131 425,979 8,511 1,711,488 (33,086) ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 1,505,081 1,067,867 9,279 1,559,967 (35,302) ============= ============= ============= ============= ============= CONTRACT TRANSACTIONS Contract purchase payments 662,249 3,977,753 165,758 21,812,020 3,458,885 Net transfers(1) (2,749,610) (3,094,763) 94,615 (732,302) 226,876 Transfers for policy loans (7,652) (6,503) -- (6,081) (120) Adjustments to net assets allocated to contracts in payout period (1,837) (1,064) -- -- -- Contract charges (15,007) (19,812) (5) (21,326) (31) Contract terminations: Surrender benefits (641,503) (751,458) (171) (641,629) (1,949) Death benefits (10,973) (211,211) -- (176,576) -- ------------- ------------- ------------- ------------- ------------- Increase (decrease) from contract transactions (2,764,333) (107,058) 260,197 20,234,106 3,683,661 ------------- ------------- ------------- ------------- ------------- Net assets at beginning of year 17,669,711 22,147,444 -- 18,466,458 -- ------------- ------------- ------------- ------------- ------------- Net assets at end of year $ 16,410,459 $ 23,108,253 $ 269,476 $ 40,260,531 $ 3,648,359 ============= ============= ============= ============= ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 17,584,294 19,443,630 -- 25,351,782 -- Contract purchase payments 652,292 3,573,837 158,418 31,205,709 3,236,242 Net transfers(1) (2,714,380) (2,815,226) 88,327 (1,046,507) 211,150 Transfers for policy loans (7,448) (6,186) -- (8,540) (111) Contract charges (14,534) (17,815) (5) (30,084) (29) Contract terminations: Surrender benefits (620,339) (677,368) (17) (905,081) (964) Death benefits (10,860) (190,074) -- (252,676) -- ------------- ------------- ------------- ------------- ------------- Units outstanding at end of year 14,869,025 19,310,798 246,723 54,314,603 3,446,288 ============= ============= ============= ============= =============
See accompanying notes to financial statements. 48 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- AB VPS AB VPS AC VP AC VP AC VP GRO & INC, INTL VAL, INTL, INTL, ULTRA, PERIOD ENDED DEC. 31, 2005 (CONTINUED) CL B CL B CL I CL II CL II(2) -------------------------------------- ------------- ------------- ------------- ------------- ------------- OPERATIONS Investment income (loss) -- net $ 1,104,469 $ (1,442,033) $ 168,494 $ 33,931 $ (11,765) Net realized gain (loss) on sales of investments 837,317 55,776 (944,443) 517,359 -- Distributions from capital gains -- 5,469,022 -- -- -- Net change in unrealized appreciation or depreciation of investments 9,122,243 60,595,058 7,546,726 9,845,641 (270,935) ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 11,064,029 64,677,823 6,770,777 10,396,931 (282,700) ============= ============= ============= ============= ============= CONTRACT TRANSACTIONS Contract purchase payments 49,167,890 169,880,622 1,562,539 15,539,678 18,521,501 Net transfers(1) 12,310,013 105,555,601 (372,136) 7,145,816 1,012,978 Transfers for policy loans (114,675) (97,548) (22,182) (57,298) (6,995) Adjustments to net assets allocated to contracts in payout period (23,174) (17,215) (4,301) (9,302) -- Contract charges (213,670) (227,471) (20,876) (60,797) (144) Contract terminations: Surrender benefits (7,591,363) (8,195,031) (1,715,581) (2,249,751) (4,312) Death benefits (1,552,116) (1,712,395) (330,188) (389,718) -- ------------- ------------- ------------- ------------- ------------- Increase (decrease) from contract transactions 51,982,905 265,186,563 (902,725) 19,918,628 19,523,028 ------------- ------------- ------------- ------------- ------------- Net assets at beginning of year 249,752,453 221,321,867 55,191,593 66,949,244 -- ------------- ------------- ------------- ------------- ------------- Net assets at end of year $ 312,799,387 $ 551,186,253 $ 61,059,645 $ 97,264,803 $ 19,240,328 ============= ============= ============= ============= ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 229,827,573 135,769,714 59,554,487 63,755,535 -- Contract purchase payments 44,931,238 100,417,784 1,663,934 14,513,861 17,626,252 Net transfers(1) 11,372,549 62,461,467 (324,714) 6,676,408 962,687 Transfers for policy loans (105,217) (57,394) (23,097) (51,251) (6,575) Contract charges (195,573) (133,186) (22,266) (56,615) (136) Contract terminations: Surrender benefits (6,929,449) (4,787,393) (1,822,705) (2,106,739) (3,844) Death benefits (1,424,123) (1,010,729) (351,439) (363,726) -- ------------- ------------- ------------- ------------- ------------- Units outstanding at end of year 277,476,998 292,660,263 58,674,200 82,367,473 18,578,384 ============= ============= ============= ============= =============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 49 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- AC VP AC VP CS CS VAL, VAL, CALVERT VS MID-CAP SM CAP YEAR ENDED DEC. 31, 2005 (CONTINUED) CL I CL II SOCIAL BAL CORE CORE I ------------------------------------ ------------- ------------- ------------- ------------- ------------- OPERATIONS Investment income (loss) -- net $ (2,095,062) $ (723,566) $ 493,946 $ (283,969) $ (4,424,489) Net realized gain (loss) on sales of investments 8,617,156 314,511 282,017 (390,230) (7,138,039) Distributions from capital gains 72,930,528 29,747,632 -- -- -- Net change in unrealized appreciation or depreciation of investments (52,126,127) (14,710,761) 1,467,785 2,562,333 (4,375,545) ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 27,326,495 14,627,816 2,243,748 1,888,134 (15,938,073) ============= ============= ============= ============= ============= CONTRACT TRANSACTIONS Contract purchase payments 15,457,786 75,122,989 6,444,396 928,795 7,166,245 Net transfers(1) 90,124,132 28,387,507 1,640,290 (5,689,144) (26,312,998) Transfers for policy loans 319,203 (125,067) (13,106) (2,227) 244,248 Adjustments to net assets allocated to contracts in payout period (228,681) (36,352) (4,345) (4,490) (81,343) Contract charges (322,006) (242,823) (36,249) (18,618) (196,338) Contract terminations: Surrender benefits (118,660,231) (9,018,708) (1,294,737) (1,522,520) (71,660,860) Death benefits (5,716,459) (2,202,822) (422,883) (356,596) (2,318,382) ------------- ------------- ------------- ------------- ------------- Increase (decrease) from contract transactions (19,026,256) 91,884,724 6,313,366 (6,664,800) (93,159,428) ------------- ------------- ------------- ------------- ------------- Net assets at beginning of year 713,847,681 272,313,604 42,296,130 36,657,311 415,056,274 ------------- ------------- ------------- ------------- ------------- Net assets at end of year $ 722,147,920 $ 378,826,144 $ 50,853,244 $ 31,880,645 $ 305,958,773 ============= ============= ============= ============= ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 348,194,030 210,265,072 42,435,148 30,757,887 295,070,055 Contract purchase payments 7,759,538 58,161,625 6,308,763 769,107 5,305,478 Net transfers(1) 42,557,818 22,109,199 1,632,045 (4,734,517) (19,680,131) Transfers for policy loans 125,219 (97,237) (13,545) (2,037) 182,258 Contract charges (154,933) (187,147) (35,749) (15,498) (145,784) Contract terminations: Surrender benefits (53,663,235) (6,934,299) (1,282,967) (1,261,987) (52,826,352) Death benefits (2,862,906) (1,699,162) (418,238) (294,506) (1,735,107) ------------- ------------- ------------- ------------- ------------- Units outstanding at end of year 341,955,531 281,618,051 48,625,457 25,218,449 226,170,417 ============= ============= ============= ============= =============
See accompanying notes to financial statements. 50 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------- EG VA EG VA FID VIP FID VIP FID VIP FUNDAMENTAL INTL EQ, GRO & INC, GRO & INC, MID CAP, YEAR ENDED DEC. 31, 2005 (CONTINUED) LG CAP, CL 2 CL 2 SERV CL SERV CL 2 SERV CL ------------------------------------ ------------ ----------- ------------ ------------ ------------ OPERATIONS Investment income (loss) -- net $ (10,968) $ 587,806 $ 1,453,669 $ 1,681,771 $ 2,826,219 Net realized gain (loss) on sales of investments 317,604 31,944 (1,390,444) 2,444,205 7,653,474 Distributions from capital gains -- -- -- -- -- Net change in unrealized appreciation or depreciation of investments 1,650,566 4,104,747 13,701,203 20,910,866 49,540,142 ------------ ----------- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations 1,957,202 4,724,497 13,764,428 25,036,842 60,019,835 ============ =========== ============ ============ ============ CONTRACT TRANSACTIONS Contract purchase payments 1,559,874 23,215,215 6,122,248 53,098,982 9,084,657 Net transfers(1) 6,144,752 7,007,148 (27,563,481) (34,598,440) 468,530 Transfers for policy loans (2,231) (10,790) (60,343) (96,453) (185,959) Adjustments to net assets allocated to contracts in payout period (3,240) (1,253) (221,493) (66,278) (255,018) Contract charges (22,789) (14,059) (93,148) (313,688) (149,949) Contract terminations: Surrender benefits (904,013) (358,809) (9,953,055) (11,047,457) (13,986,823) Death benefits (229,166) (166,324) (1,507,172) (2,520,118) (2,470,943) ------------ ----------- ------------ ------------ ------------ Increase (decrease) from contract transactions 6,543,187 29,671,128 (33,276,444) 4,456,548 (7,495,505) ------------ ----------- ------------ ------------ ------------ Net assets at beginning of year 22,144,649 9,684,180 241,007,862 375,117,066 352,909,698 ------------ ----------- ------------ ------------ ------------ Net assets at end of year $ 30,645,038 $44,079,805 $221,495,846 $404,610,456 $405,434,028 ============ =========== ============ ============ ============ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 23,447,847 8,450,029 251,134,847 353,479,110 147,112,701 Contract purchase payments 1,608,666 19,631,423 6,393,849 50,362,838 3,616,730 Net transfers(1) 6,287,164 5,907,482 (28,778,412) (32,618,053) 163,631 Transfers for policy loans (2,355) (9,101) (62,307) (90,589) (75,969) Contract charges (23,421) (11,763) (97,178) (296,175) (59,684) Contract terminations: Surrender benefits (924,141) (298,838) (10,426,274) (10,394,557) (5,560,111) Death benefits (238,730) (138,323) (1,581,179) (2,388,847) (985,246) ------------ ----------- ------------ ------------ ------------ Units outstanding at end of year 30,155,030 33,530,909 216,583,346 358,053,727 144,212,052 ============ =========== ============ ============ ============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 51 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------------------- FID VIP FID VIP FID VIP FTVIPT FRANK FTVIPT FRANK MID CAP, OVERSEAS, OVERSEAS, GLOBAL REAL EST, SM CAP VAL, YEAR ENDED DEC. 31, 2005 (CONTINUED) SERV CL 2 SERV CL SERV CL 2 CL 2 CL 2 ------------------------------------ ------------ ----------- ------------ ---------------- ------------ OPERATIONS Investment income (loss) -- net $ 3,810,443 $ (238,534) $ (618,501) $ 3,251,064 $ (299,165) Net realized gain (loss) on sales of investments 284,820 (78,748) 1,726,425 3,144,665 699,486 Distributions from capital gains -- 434,298 791,978 36,422,334 1,642,725 Net change in unrealized appreciation or depreciation of investments 116,302,504 14,315,905 27,251,027 32,124,507 19,843,755 ------------ ----------- ------------ ---------------- ------------ Net increase (decrease) in net assets resulting from operations 120,397,767 14,432,921 29,150,929 74,942,570 21,886,801 ============ =========== ============ ================ ============ CONTRACT TRANSACTIONS Contract purchase payments 203,430,643 2,381,708 24,797,846 110,766,576 55,902,898 Net transfers(1) 50,061,964 (3,224,619) (2,624,367) (3,801,846) 24,785,882 Transfers for policy loans (288,968) (24,663) (37,418) (190,800) (112,000) Adjustments to net assets allocated to contracts in payout period (37,449) (14,792) (15,236) (90,942) (21,963) Contract charges (523,520) (29,309) (123,244) (377,214) (161,967) Contract terminations: Surrender benefits (19,178,466) (2,726,263) (4,427,861) (19,424,184) (8,160,244) Death benefits (3,472,411) (507,830) (995,030) (4,823,651) (1,478,651) ------------ ----------- ------------ ---------------- ------------ Increase (decrease) from contract transactions 229,991,793 (4,145,768) 16,574,690 82,057,939 70,753,955 ------------ ----------- ------------ ---------------- ------------ Net assets at beginning of year 558,129,544 83,694,965 147,870,194 533,003,756 224,252,101 ------------ ----------- ------------ ---------------- ------------ Net assets at end of year $908,519,104 $93,982,118 $193,595,813 $ 690,004,265 $316,892,857 ------------ ----------- ------------ ---------------- ------------ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 356,492,171 86,131,995 122,929,402 230,880,792 118,565,790 Contract purchase payments 123,309,486 2,413,514 20,203,509 47,356,492 29,710,659 Net transfers(1) 30,574,098 (3,251,453) (2,161,500) (1,247,979) 12,970,375 Transfers for policy loans (172,194) (25,349) (30,346) (79,177) (58,112) Contract charges (317,011) (29,642) (100,069) (158,003) (84,098) Contract terminations: Surrender benefits (11,548,664) (2,762,260) (3,569,546) (8,075,813) (4,189,672) Death benefits (2,098,603) (520,293) (818,186) (2,034,247) (748,428) ------------ ----------- ------------ ---------------- ------------ Units outstanding at end of year 496,239,283 81,956,512 136,453,264 266,642,065 156,166,514 ------------ ----------- ------------ ---------------- ------------
See accompanying notes to financial statements. 52 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- FTVIPT FTVIPT FTVIPT GS VIT GS VIT MUTUAL SHARES TEMP DEV MKTS TEMP FOR MID CAP STRUCTD SM YEAR ENDED DEC. 31, 2005 (CONTINUED) SEC, CL 2 SEC, CL 1 SEC, CL 2 VAL, INST CAP EQ, INST ------------------------------------ ------------- ------------- ----------- ------------ ------------ OPERATIONS Investment income (loss) -- net $ (18,292) $ 419,084 $ 156,962 $ (974,138) $ (262,532) Net realized gain (loss) on sales of investments 236,003 5,737,845 640,418 73,831 1,716,454 Distributions from capital gains 502,610 -- -- 69,649,171 3,637,554 Net change in unrealized appreciation or depreciation of investments 14,904,933 54,275,339 3,615,228 (156,867) (3,087,059) ------------- ------------- ----------- ------------ ------------ Net increase (decrease) in net assets resulting from operations 15,625,254 60,432,268 4,412,608 68,591,997 2,004,417 ============= ============= =========== ============ ============ CONTRACT TRANSACTIONS Contract purchase payments 44,119,571 4,288,656 1,352,600 184,900,122 785,464 Net transfers(1) 22,850,823 27,575,796 6,542,230 82,000,494 (4,733,062) Transfers for policy loans (52,178) 160,948 (22,743) (175,440) (13,591) Adjustments to net assets allocated to contracts in payout period (42,668) 243,840 (14,835) (84,315) (1,892) Contract charges (105,934) (141,487) (14,209) (351,804) (16,140) Contract terminations: Surrender benefits (3,728,712) (49,986,868) (1,544,941) (17,640,225) (1,407,859) Death benefits (931,541) (1,724,715) (257,206) (3,589,683) (305,535) ------------- ------------- ----------- ------------ ------------ Increase (decrease) from contract transactions 62,109,361 (19,583,830) 6,040,896 245,059,149 (5,692,615) ------------- ------------- ----------- ------------ ------------ Net assets at beginning of year 118,372,813 240,780,559 41,041,893 451,843,137 44,778,829 ------------- ------------- ----------- ------------ ------------ Net assets at end of year $ 196,107,428 $ 281,628,997 $51,495,397 $765,494,283 $ 41,090,631 ============= ============= =========== ============ ============ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 99,870,679 274,585,826 31,651,467 226,018,384 26,859,407 Contract purchase payments 36,323,585 4,539,404 1,026,556 90,485,739 468,917 Net transfers(1) 18,890,364 29,007,270 5,087,379 39,619,608 (2,850,857) Transfers for policy loans (42,536) 170,750 (17,422) (86,603) (7,799) Contract charges (86,921) (149,843) (10,804) (168,728) (9,670) Contract terminations: Surrender benefits (3,043,627) (52,053,973) (1,168,491) (8,384,464) (847,087) Death benefits (771,642) (1,854,947) (195,493) (1,697,382) (181,216) ------------- ------------- ----------- ------------ ------------ Units outstanding at end of year 151,139,902 254,244,487 36,373,192 345,786,554 23,431,695 ============= ============= =========== ============ ============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 53 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ---------------------------------------------------------------------------- GS VIT JANUS ASPEN JANUS ASPEN JANUS ASPEN LAZARD STRUCTD U.S. GLOBAL TECH, INTL GRO, MID CAP GRO, RETIRE YEAR ENDED DEC. 31, 2005 (CONTINUED) EQ, INST SERV SERV SERV INTL EQ, SERV ------------------------------------ ------------- ------------ ------------ ------------- -------------- OPERATIONS Investment income (loss) -- net $ 510,869 $ (187,700) $ 231,506 $ (266,923) $ 224,281 Net realized gain (loss) on sales of investments 123,943 (3,372,723) 672,494 (2,717,145) 1,608,377 Distributions from capital gains -- -- -- -- 2,655,586 Net change in unrealized appreciation or depreciation of investments 28,944,309 5,728,444 28,497,150 6,255,115 13,562,204 ------------- ------------ ------------ ------------- ------------- Net increase (decrease) in net assets resulting from operations 29,579,121 2,168,021 29,401,150 3,271,047 18,050,448 ============= ============ ============ ============= ============= CONTRACT TRANSACTIONS Contract purchase payments 167,491,450 1,106,012 3,507,325 1,383,420 21,342,468 Net transfers(1) 55,816,261 (2,833,298) (2,555,596) (5,600,918) 4,437,347 Transfers for policy loans (129,287) (12,851) (44,935) (21,466) (50,334) Adjustments to net assets allocated to contracts in payout period (47,148) (694) (121,838) (378) (38,264) Contract charges (185,297) (20,489) (63,638) (25,471) (105,431) Contract terminations: Surrender benefits (9,412,740) (920,770) (3,520,397) (1,258,299) (5,070,548) Death benefits (2,079,667) (181,166) (654,093) (131,663) (880,520) ------------- ------------ ------------ ------------- ------------- Increase (decrease) from contract transactions 211,453,572 (2,863,256) (3,453,172) (5,654,775) 19,634,718 ------------- ------------ ------------ ------------- ------------- Net assets at beginning of year 251,603,761 24,173,906 99,631,506 34,098,569 160,817,065 ------------- ------------ ------------ ------------- ------------- Net assets at end of year $ 492,636,454 $ 23,478,671 $125,579,484 $ 31,714,841 $ 198,502,231 ============= ============ ============ ============= ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 253,878,486 65,786,985 139,788,353 71,058,927 168,207,767 Contract purchase payments 168,341,027 3,034,699 4,577,386 2,849,052 21,756,164 Net transfers(1) 57,375,404 (8,024,110) (4,086,040) (11,489,143) 5,068,392 Transfers for policy loans (126,153) (33,836) (57,292) (41,604) (53,535) Contract charges (186,236) (54,314) (82,006) (51,722) (108,020) Contract terminations: Surrender benefits (9,619,939) (2,557,928) (4,485,220) (2,569,842) (5,284,774) Death benefits (2,107,379) (517,568) (839,386) (272,668) (910,955) ------------- ------------ ------------ ------------- ------------- Units outstanding at end of year 467,555,210 57,633,928 134,815,795 59,483,000 188,675,039 ============= ============ ============ ============= =============
See accompanying notes to financial statements. 54 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- LM PTNRS MFS MFS MFS MFS VAR SM CAP INV GRO STOCK, NEW DIS, TOTAL RETURN, UTILITIES, PERIOD ENDED DEC. 31, 2005 (CONTINUED) GRO, CL II(2) SERV CL SERV CL SERV CL SERV CL -------------------------------------- ------------- -------------- ------------ ------------- ------------ OPERATIONS Investment income (loss) -- net $ (86) $ (958,797) $ (973,185) $ 319,672 $ (440,795) Net realized gain (loss) on sales of investments 147 (469,456) 476,425 20,952 152,747 Distributions from capital gains 6,501 -- -- 1,771,014 -- Net change in unrealized appreciation or depreciation of investments (5,790) 6,466,116 4,162,578 (797,627) 14,532,603 ------------- -------------- ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations 772 5,037,863 3,665,818 1,314,011 14,244,555 ============= ============== ============ ============= ============ CONTRACT TRANSACTIONS Contract purchase payments 54,212 19,244,718 9,569,175 43,590,151 39,219,491 Net transfers(1) 55,517 431,862 (26,427,919) 10,702,264 31,227,139 Transfers for policy loans -- (46,009) (30,724) (29,222) (31,744) Adjustments to net assets allocated to contracts in payout period -- (15,591) (6,217) (10,357) (15,097) Contract charges (1) (90,404) (83,504) (36,300) (65,081) Contract terminations: Surrender benefits (155) (4,121,260) (4,003,332) (1,093,394) (2,438,134) Death benefits -- (870,189) (848,213) (301,535) (719,340) ------------- -------------- ------------ ------------- ------------ Increase (decrease) from contract transactions 109,573 14,533,127 (21,830,734) 52,821,607 67,177,234 ------------- -------------- ------------ ------------- ------------ Net assets at beginning of year -- 127,400,286 128,085,237 28,759,721 64,197,571 ------------- -------------- ------------ ------------- ------------ Net assets at end of year $ 110,345 $ 146,971,276 $109,920,321 $ 82,895,339 $145,619,360 ============= ============== ============ ============= ============ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year -- 195,430,028 149,075,141 26,241,735 52,791,656 Contract purchase payments 50,730 28,448,188 11,354,932 39,844,898 29,383,744 Net transfers(1) 53,637 44,705 (31,945,159) 9,704,197 23,968,663 Transfers for policy loans -- (69,717) (36,617) (26,698) (21,443) Contract charges (1) (138,609) (99,674) (33,133) (49,580) Contract terminations: Surrender benefits -- (6,358,002) (4,775,554) (995,727) (1,848,546) Death benefits -- (1,349,242) (1,012,950) (276,597) (543,660) ------------- -------------- ------------ ------------- ------------ Units outstanding at end of year 104,366 216,007,351 122,560,119 74,458,675 103,680,834 ============= ============== ============ ============= ============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 55 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ----------------------------------------------------------------------------- OPPEN OPPEN OPPEN PIONEER PUT VT GLOBAL SEC VA, MAIN ST SM STRATEGIC EQ INC VCT, HLTH SCIENCES, YEAR ENDED DEC. 31, 2005 (CONTINUED) SERV CAP VA, SERV BOND VA, SERV CL II CL IB ------------------------------------ -------------- ------------ ------------- ----------- -------------- OPERATIONS Investment income (loss) -- net $ (175,822) $ (295,193) $ 1,744,480 $ 770,477 $ (334,208) Net realized gain (loss) on sales of investments 39,072 59,845 3,603 962,586 275,499 Distributions from capital gains -- 619,596 -- -- -- Net change in unrealized appreciation or depreciation of investments 9,635,514 3,405,497 1,656,295 1,098,918 4,937,199 -------------- ------------ ------------- ----------- -------------- Net increase (decrease) in net assets resulting from operations 9,498,764 3,789,745 3,404,378 2,831,981 4,878,490 ============== ============ ============= =========== ============== CONTRACT TRANSACTIONS Contract purchase payments 34,584,580 20,350,863 196,037,865 2,798,943 11,538,993 Net transfers(1) 23,243,274 9,770,101 87,648,989 4,658,261 2,387,204 Transfers for policy loans (18,273) (15,213) (60,041) (2,699) (5,456) Adjustments to net assets allocated to contracts in payout period (7,636) (1,792) (10,291) (8,770) (3,409) Contract charges (36,548) (21,190) (67,912) (42,553) (37,787) Contract terminations: Surrender benefits (807,674) (483,157) (2,686,792) (1,755,969) (1,073,104) Death benefits (259,011) (77,565) (1,065,570) (408,412) (416,355) -------------- ------------ ------------- ----------- -------------- Increase (decrease) from contract transactions 56,698,712 29,522,047 279,796,248 5,238,801 12,390,086 -------------- ------------ ------------- ----------- -------------- Net assets at beginning of year 28,389,465 19,170,008 49,695,568 55,958,129 35,995,524 -------------- ------------ ------------- ----------- -------------- Net assets at end of year $ 94,586,941 $ 52,481,800 $ 332,896,194 $64,028,911 $ 53,264,100 ============== ============ ============= =========== ============== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 24,526,459 16,643,217 46,499,009 48,892,337 37,011,026 Contract purchase payments 29,489,329 17,483,256 182,735,989 2,423,969 11,060,105 Net transfers(1) 19,349,693 8,278,155 81,351,289 4,093,136 2,197,127 Transfers for policy loans (15,091) (12,829) (55,643) (2,227) (4,392) Contract charges (30,819) (18,159) (63,218) (36,645) (36,952) Contract terminations: Surrender benefits (676,521) (408,557) (2,497,993) (1,503,368) (1,041,397) Death benefits (220,245) (69,866) (992,126) (345,301) (412,525) -------------- ------------ ------------- ----------- -------------- Units outstanding at end of year 72,422,805 41,895,217 306,977,307 53,521,901 48,772,992 ============== ============ ============= =========== ==============
See accompanying notes to financial statements. 56 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------- PUT VT PUT VT PUT VT PUT VT INTL EQ, INTL NEW OPP, NEW OPP, VISTA, RVS VP YEAR ENDED DEC. 31, 2005 (CONTINUED) CL IB CL IB CL IA CL IB BAL ------------------------------------ ----------- ------------- ------------ ------------ ------------ OPERATIONS Investment income (loss) -- net $ 499,099 $ (148,274) $ (2,594,748) $ (805,438) $ 7,545,206 Net realized gain (loss) on sales of investments 2,356,366 (4,888,569) (26,100,844) (7,160,492) (7,757,557) Distributions from capital gains -- -- -- -- 15,130,664 Net change in unrealized appreciation or depreciation of investments 6,250,490 18,793,414 52,393,351 17,866,972 (1,067,962) ----------- ------------- ------------ ------------ ------------- Net increase (decrease) in net assets resulting from operations 9,105,955 13,756,571 23,697,759 9,901,042 13,850,351 =========== ============= ============ ============ ============= CONTRACT TRANSACTIONS Contract purchase payments 7,011,877 2,928,439 7,758,919 5,583,581 30,040,892 Net transfers(1) (8,745,216) (13,103,118) (19,280,984) (15,208,838) 9,939,385 Transfers for policy loans 1,710 (39,356) 380,211 (63,104) 209,266 Adjustments to net assets allocated to contracts in payout period (2,254) (7,343) (269,378) (12,792) (682,900) Contract charges (59,975) (59,443) (276,415) (77,280) (331,006) Contract terminations: Surrender benefits (2,034,488) (3,671,642) (61,042,173) (3,940,936) (61,182,381) Death benefits (621,019) (586,495) (2,347,748) (880,276) (6,799,707) ----------- ------------- ------------ ------------ ------------- Increase (decrease) from contract transactions (4,449,365) (14,538,958) (75,077,568) (14,599,645) (28,806,451) ----------- ------------- ------------ ------------ ------------- Net assets at beginning of year 84,437,717 88,924,124 337,875,328 100,427,625 515,992,103 ----------- ------------- ------------ ------------ ------------- Net assets at end of year $89,094,307 $ 88,141,737 $286,495,519 $ 95,729,022 $501,036,003 =========== ============= ============ ============ ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 72,648,580 107,334,366 265,043,639 110,020,303 373,844,948 Contract purchase payments 5,872,834 3,358,181 6,062,354 5,934,007 26,162,735 Net transfers(1) (7,383,516) (15,087,560) (15,735,370) (16,487,447) 5,527,945 Transfers for policy loans 1,755 (45,135) 302,410 (65,589) 106,968 Contract charges (50,505) (68,158) (216,217) (83,071) (242,855) Contract terminations: Surrender benefits (1,704,860) (4,195,585) (47,397,734) (4,245,667) (39,548,608) Death benefits (530,667) (663,629) (1,861,874) (938,512) (4,988,392) ----------- ------------- ------------ ------------ ------------- Units outstanding at end of year 68,853,621 90,632,480 206,197,208 94,134,024 360,862,741 =========== ============= ============ ============ =============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 57 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2005 (CONTINUED) CASH MGMT CORE BOND DIV BOND DIV EQ INC EMER MKTS ------------------------------------ -------------- ---------------- --------------- --------------- -------------- OPERATIONS Investment income (loss) -- net $ 7,875,956 $ 1,370,130 $ 26,206,194 $ 6,641,153 $ (742,440) Net realized gain (loss) on sales of investments (6,428) (68,631) (1,319,124) 1,451,207 265,327 Distributions from capital gains -- 119,042 -- 42,154,895 8,964,539 Net change in unrealized appreciation or depreciation of investments 7,187 (882,026) (14,215,844) 65,738,972 31,885,885 -------------- ---------------- --------------- --------------- ------------- Net increase (decrease) in net assets resulting from operations 7,876,715 538,515 10,671,226 115,986,227 40,373,311 ============== ================ =============== =============== ============= CONTRACT TRANSACTIONS Contract purchase payments 556,051,004 17,420,875 249,037,899 221,931,868 84,612,660 Net transfers(1) (498,651,986) 8,986,012 80,765,231 217,209,369 40,610,042 Transfers for policy loans 415,361 (5,405) 112,570 (387,239) (63,069) Adjustments to net assets allocated to contracts in payout period (413,344) (1,853) (649,315) (4,965) (1,250) Contract charges (287,651) (18,669) (490,788) (565,852) (62,721) Contract terminations: Surrender benefits (49,089,168) (9,901,903) (69,255,287) (25,030,754) (2,299,209) Death benefits (7,237,686) (299,927) (10,283,444) (5,955,214) (542,443) -------------- ---------------- --------------- --------------- ------------- Increase (decrease) from contract transactions 786,530 16,179,130 249,236,866 407,197,213 122,254,010 -------------- ---------------- --------------- --------------- ------------- Net assets at beginning of year 468,695,162 41,656,419 835,024,959 652,523,409 50,449,063 -------------- ---------------- --------------- --------------- ------------- Net assets at end of year $ 477,358,407 $ 58,374,064 $ 1,094,933,051 $ 1,175,706,849 $ 213,076,384 ============== ================ =============== =============== ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 426,211,605 15,786,978 639,930,591 482,647,229 42,520,875 Contract purchase payments 512,980,244 17,053,002 199,112,226 157,632,718 62,949,904 Net transfers(1) (460,843,027) 8,767,501 62,730,709 155,491,975 31,076,926 Transfers for policy loans 361,317 (5,247) 73,693 (276,625) (51,012) Contract charges (261,294) (18,259) (381,999) (403,138) (46,183) Contract terminations: Surrender benefits (42,891,092) (973,442) (51,113,897) (17,847,823) (1,700,143) Death benefits (6,488,576) (293,630) (7,831,661) (4,270,111) (407,270) -------------- ---------------- --------------- --------------- ------------- Units outstanding at end of year 429,069,177 40,316,903 842,519,662 772,974,225 134,343,097 ============== ================ =============== =============== =============
See accompanying notes to financial statements. 58 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------------------- RVS VP RVS VP GLOBAL INFLATION RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2005 (CONTINUED) GLOBAL BOND PROT SEC GRO HI YIELD BOND INC OPP ------------------------------------ -------------- ---------------- --------------- --------------- ------------- OPERATIONS Investment income (loss) -- net $ 12,188,854 $ 5,054,370 $ (1,195,062) $ 50,542,885 $ 1,355,393 Net realized gain (loss) on sales of investments 723,784 68,004 (2,726,461) (13,357,287) (4,360) Distributions from capital gains 1,983,995 281,462 -- -- 245,918 Net change in unrealized appreciation or depreciation of investments (39,533,328) (2,998,216) 24,724,212 (10,382,431) (553,654) -------------- ---------------- --------------- --------------- ------------- Net increase (decrease) in net assets resulting from operations (24,636,695) 2,405,620 20,802,689 26,803,167 1,043,297 ============== ================ =============== =============== ============= CONTRACT TRANSACTIONS Contract purchase payments 105,148,080 154,757,685 89,123,405 103,216,534 47,351,526 Net transfers(1) 50,851,232 25,231,053 85,728,430 (47,158,281) 12,727,168 Transfers for policy loans 17,193 (20,212) (145,817) (54,366) (9,039) Adjustments to net assets allocated to contracts in payout period (50,347) (173) 341,335 (46,589) (871) Contract charges (189,160) (23,341) (193,212) (445,857) (8,310) Contract terminations: Surrender benefits (29,330,816) (6,287,522) (8,660,973) (68,665,498) (376,515) Death benefits (3,452,011) (195,864) (1,958,397) (9,467,860) (75,387) -------------- ---------------- --------------- --------------- ------------- Increase (decrease) from contract transactions 122,994,171 173,461,626 164,234,771 (22,621,917) 59,608,572 -------------- ---------------- --------------- --------------- ------------- Net assets at beginning of year 355,988,377 10,222,703 213,399,026 914,939,629 2,504,985 -------------- ---------------- --------------- --------------- ------------- Net assets at end of year $ 454,345,853 $ 186,089,949 $ 398,436,486 $ 919,120,879 $ 63,156,854 ============== ================ =============== =============== ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 242,561,640 9,951,031 340,148,136 730,172,431 2,406,070 Contract purchase payments 76,307,545 149,630,901 130,263,482 83,827,962 45,222,755 Net transfers(1) 35,627,908 24,378,576 125,726,923 (37,975,363) 12,097,459 Transfers for policy loans 9,910 (19,470) (219,189) (48,881) (8,619) Contract charges (135,471) (22,495) (296,814) (357,873) (7,877) Contract terminations: Surrender benefits (20,111,839) (6,037,356) (13,491,941) (52,271,318) (353,372) Death benefits (2,436,618) (188,991) (3,044,591) (7,492,537) (71,545) -------------- ---------------- --------------- --------------- ------------- Units outstanding at end of year 331,823,075 177,692,196 579,086,006 715,854,421 59,284,871 ============== ================ =============== =============== =============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 59 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS -------------------------------------------------------------------------------------- RVS VP RVS VP RVS VP RVS VP RVS VP PERIOD ENDED DEC. 31, 2005 (CONTINUED) INTL OPP LG CAP EQ LG CAP VAL MID CAP GRO MID CAP VAL(3) -------------------------------------- -------------- ---------------- --------------- --------------- -------------- OPERATIONS Investment income (loss) -- net $ 1,040,522 $ 642,906 $ 108,995 $ (889,041) $ 18,919 Net realized gain (loss) on sales of investments (3,227,859) (7,861,500) 77,797 2,928,193 3,455 Distributions from capital gains -- -- 377,778 5,603,103 39,901 Net change in unrealized appreciation or depreciation of investments 44,215,130 32,493,419 2,476 1,166,565 996,423 -------------- ---------------- --------------- --------------- ------------- Net increase (decrease) in net assets resulting from operations 42,027,793 25,274,825 567,046 8,808,820 1,058,698 ============== ================ =============== =============== ============= CONTRACT TRANSACTIONS Contract purchase payments 27,708,278 208,244,807 3,448,860 7,522,181 4,804,511 Net transfers(1) 63,156,361 (1,093,795) 2,406,085 (15,381,102) 11,729,799 Transfers for policy loans 96,886 99,320 (690) (12,932) (4,372) Adjustments to net assets allocated to contracts in payout period (122,930) (257,434) 4,245 (9,478) -- Contract charges (182,560) (283,629) (9,382) (88,034) (1,634) Contract terminations: Surrender benefits (42,254,354) (40,944,691) (317,375) (3,340,936) (65,876) Death benefits (2,355,941) (4,537,840) (95,305) (665,500) (14,004) -------------- ---------------- --------------- --------------- ------------- Increase (decrease) from contract transactions 46,045,740 161,226,738 5,436,438 (11,975,801) 16,448,424 -------------- ---------------- --------------- --------------- ------------- Net assets at beginning of year 282,571,104 384,038,632 10,458,784 110,889,380 -- -------------- ---------------- --------------- --------------- ------------- Net assets at end of year $ 370,644,637 $ 570,540,195 $ 16,462,268 $ 107,722,399 $ 17,507,122 ============== ================ =============== =============== ============= ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 281,107,065 386,123,263 6,541,500 98,757,571 -- Contract purchase payments 31,036,608 248,784,080 3,135,978 6,651,877 2,394,503 Net transfers(1) 64,895,807 (8,028,746) 2,177,243 (13,948,752) 10,397,207 Transfers for policy loans 61,564 34,573 (637) (11,398) (3,751) Contract charges (183,409) (287,511) (8,518) (77,994) (1,423) Contract terminations: Surrender benefits (38,725,945) (34,928,544) (289,249) (2,940,300) (57,450) Death benefits (2,352,575) (4,656,674) (86,074) (607,100) (12,513) -------------- ---------------- --------------- --------------- ------------- Units outstanding at end of year 335,839,115 587,040,441 11,470,243 87,823,904 12,716,573 ============== ================ =============== =============== =============
See accompanying notes to financial statements. 60 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ RVS VP RVS VP RVS VP RVS VP RVS VP YEAR ENDED DEC. 31, 2005 (CONTINUED) S&P 500 SELECT VAL SHORT DURATION SM CAP ADV SM CAP VAL ------------------------------------ ------------- ------------- -------------- -------------- ---------------- OPERATIONS Investment income (loss) -- net $ 1,399,421 $ (60,720) $ 7,579,803 $ (1,569,526) $ (1,947,453) Net realized gain (loss) on sales of investments 1,898,809 55,093 (1,289,084) 3,849,428 706,446 Distributions from capital gains 670,406 371,892 -- 23,430,623 24,805,317 Net change in unrealized appreciation or depreciation of investments 5,743,632 (358,318) (3,725,259) (18,677,790) (5,638,419) ------------- ------------- -------------- -------------- --------------- Net increase (decrease) in net assets resulting from operations 9,712,268 7,947 2,565,460 7,032,735 17,925,891 ============= ============= ============== ============== =============== CONTRACT TRANSACTIONS Contract purchase payments 34,540,678 8,194,986 57,207,520 16,093,478 118,568,963 Net transfers(1) (5,739,355) 3,433,607 (63,040,235) (18,127,446) (8,851,554) Transfers for policy loans (119,414) (14,220) 44,776 (52,489) (130,269) Adjustments to net assets allocated to contracts in payout period (154,241) (1,170) (510,133) (23,791) (21,746) Contract charges (178,288) (15,021) (235,135) (125,568) (232,194) Contract terminations: Surrender benefits (8,884,766) (375,798) (17,565,749) (6,646,523) (8,931,998) Death benefits (1,734,255) (157,107) (4,902,788) (1,403,874) (1,607,266) ------------- ------------- -------------- -------------- --------------- Increase (decrease) from contract transactions 17,730,359 11,065,277 (29,001,744) (10,286,213) 98,793,936 ------------- ------------- -------------- -------------- --------------- Net assets at beginning of year 244,571,223 13,503,492 387,853,207 187,180,855 254,207,341 ------------- ------------- -------------- -------------- --------------- Net assets at end of year $ 272,013,850 $ 24,576,716 $ 361,416,923 $ 183,927,377 $ 370,927,168 ============= ============= ============== ============== =============== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 283,879,436 9,023,995 326,083,939 122,817,518 168,145,266 Contract purchase payments 39,566,176 7,362,154 48,641,824 10,763,167 79,036,855 Net transfers(1) (6,620,623) 3,063,842 (53,107,463) (11,981,198) (5,602,079) Transfers for policy loans (140,951) (12,591) 37,126 (34,860) (86,704) Contract charges (206,350) (13,479) (198,723) (83,256) (154,312) Contract terminations: Surrender benefits (10,358,998) (337,208) (14,769,462) (4,424,654) (5,923,401) Death benefits (2,037,161) (140,976) (4,153,732) (920,991) (1,082,966) ------------- ------------- -------------- -------------- --------------- Units outstanding at end of year 304,081,529 18,945,737 302,533,509 116,135,726 234,332,659 ============= ============= ============== ============== ===============
See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 61 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS ------------------------------------------------------------------------------ ROYCE VANK LIT MICRO-CAP, THIRD AVE COMSTOCK, WANGER WANGER YEAR ENDED DEC. 31, 2005 (CONTINUED) INVEST CI VAL CL II INTL SM CAP U.S. SM CO ------------------------------------ ------------- ------------- -------------- -------------- ---------------- OPERATIONS Investment income (loss) -- net $ (412,585) $ 792,387 $ (945,725) $ 3,037 $ (5,881,944) Net realized gain (loss) on sales of investments 5,595,095 4,391,781 25,869 149,263 333,254 Distributions from capital gains 2,010,887 3,689,944 4,363,998 -- -- Net change in unrealized appreciation or depreciation of investments 5,112,180 13,746,849 12,889,870 78,663,844 77,650,370 ------------- ------------- -------------- -------------- --------------- Net increase (decrease) in net assets resulting from operations 12,305,577 22,620,961 16,334,012 78,816,144 72,101,680 ============= ============= ============== ============== =============== CONTRACT TRANSACTIONS Contract purchase payments 3,141,221 3,994,824 318,117,418 132,653,626 163,267,333 Net transfers(1) (17,731,827) (1,046,659) 38,832,269 58,793,805 37,803,467 Transfers for policy loans (66,632) (88,844) (100,849) (187,755) (225,632) Adjustments to net assets allocated to contracts in payout period (124,032) (37,247) (3,229) (129,105) (79,666) Contract charges (42,894) (55,985) (134,733) (240,917) (437,598) Contract terminations: Surrender benefits (5,301,784) (6,218,459) (2,872,625) (10,836,707) (19,394,263) Death benefits (803,347) (1,094,962) (1,002,175) (1,795,901) (4,000,534) ------------- ------------- -------------- -------------- --------------- Increase (decrease) from contract transactions (20,929,295) (4,547,332) 352,836,076 178,257,046 176,933,107 ------------- ------------- -------------- -------------- --------------- Net assets at beginning of year 137,329,018 168,557,735 87,004,594 282,033,643 579,332,166 ------------- ------------- -------------- -------------- --------------- Net assets at end of year $ 128,705,300 $ 186,631,364 $ 456,174,682 $ 539,106,833 $ 828,366,953 ============= ============= ============== ============== =============== ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 54,526,234 66,586,567 75,663,646 201,339,634 368,407,413 Contract purchase payments 1,248,653 1,532,395 278,152,667 86,330,476 101,844,726 Net transfers(1) (7,100,797) (396,567) 34,151,254 39,127,587 23,314,554 Transfers for policy loans (26,804) (33,005) (87,950) (123,239) (139,131) Contract charges (17,121) (21,562) (116,666) (157,953) (271,679) Contract terminations: Surrender benefits (2,101,239) (2,383,826) (2,496,182) (7,165,985) (11,936,882) Death benefits (323,712) (417,902) (870,678) (1,196,045) (2,466,879) ------------- ------------- -------------- -------------- --------------- Units outstanding at end of year 46,205,214 64,866,100 384,396,091 318,154,475 478,752,122 ============= ============= ============== ============== ===============
See accompanying notes to financial statements. 62 - RIVERSOURCE VARIABLE ACCOUNT 10 STATEMENTS OF CHANGES IN NET ASSETS
SEGREGATED ASSET SUBACCOUNTS --------------------------------------------------------------- WF ADV VT WF ADV VT WF ADV VT WF ADV VT YEAR ENDED DEC. 31, 2005 (CONTINUED) ASSET ALLOC INTL CORE OPP SM CAP GRO ------------------------------------ ------------- ------------- -------------- ----------------- OPERATIONS Investment income (loss) -- net $ 1,149,624 $ 194,636 $ (792,245) $ (314,807) Net realized gain (loss) on sales of investments 808,896 732,694 2,567,894 1,284,200 Distributions from capital gains 2,053,725 510,086 -- -- Net change in unrealized appreciation or depreciation of investments (172,128) 157,961 4,467,316 714,220 ------------- ------------- -------------- ---------------- Net increase (decrease) in net assets resulting from operations 3,840,117 1,595,377 6,242,965 1,683,613 ============= ============= ============== ================ CONTRACT TRANSACTIONS Contract purchase payments 3,672,044 609,061 11,162,668 1,908,393 Net transfers(1) 5,319,107 (2,193,503) (9,957,654) (4,502,232) Transfers for policy loans 11,513 (3,729) (34,417) (14,933) Adjustments to net assets allocated to contracts in payout period 12,778 -- (7,403) 1,388 Contract charges (67,415) (13,843) (74,090) (29,856) Contract terminations: Surrender benefits (4,321,503) (585,748) (2,934,625) (1,169,826) Death benefits (1,019,531) (90,343) (407,110) (154,039) ------------- ------------- -------------- ---------------- Increase (decrease) from contract transactions 3,606,993 (2,278,105) (2,252,631) (3,961,105) ------------- ------------- -------------- ---------------- Net assets at beginning of year 89,406,253 19,596,148 91,971,612 39,748,425 ------------- ------------- -------------- ---------------- Net assets at end of year $ 96,853,363 $ 18,913,420 $ 95,961,946 $ 37,470,933 ============= ============= ============== ================ ACCUMULATION UNIT ACTIVITY Units outstanding at beginning of year 80,917,530 19,728,058 80,224,787 42,675,340 Contract purchase payments 3,301,562 602,948 9,683,469 2,046,827 Net transfers(1) 4,840,662 (2,099,725) (8,656,676) (5,071,379) Transfers for policy loans 10,083 (3,636) (29,803) (15,089) Contract charges (60,462) (13,614) (64,052) (32,649) Contract terminations: Surrender benefits (3,869,174) (577,196) (2,523,374) (1,293,726) Death benefits (921,700) (88,315) (354,403) (169,979) ------------- ------------- -------------- ---------------- Units outstanding at end of year 84,218,501 17,548,520 78,279,948 38,139,345 ============= ============= ============== ================
(1) Includes transfer activity from (to) other subaccounts and transfers from (to) RiverSource Life's fixed account. (2) For the period Nov. 1, 2005 (commencement of operations) to Dec. 31, 2005. (3) For the period May 2, 2005 (commencement of operations) to Dec. 31, 2005. See accompanying notes to financial statements. RIVERSOURCE VARIABLE ACCOUNT 10 - 63 NOTES TO FINANCIAL STATEMENTS 1. ORGANIZATION On Dec. 31, 2006, American Enterprise Life Insurance Company and American Partners Life Insurance Company merged into their parent company, IDS Life Insurance Company (IDS Life). At that time, IDS Life changed its name to RiverSource Life Insurance Company (RiverSource Life). This merger helped simplify the overall corporate structure because the three life insurance companies were consolidated into one. This consolidation and renaming did not have any adverse effect on the features or benefits of any contract. RiverSource Variable Account 10 (previously IDS Life Variable Account 10) (the Account) was established under Minnesota law as a segregated asset account of 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 individual variable annuity contracts issued by RiverSource Life. The following is a list of each variable annuity product funded through the Account. RiverSource Retirement Advisor Variable Annuity(R) (RAVA) RiverSource Retirement Advisor Variable Annuity(R) - Band 3 (RAVA Band 3) RiverSource Retirement Advisor Advantage(R) Variable Annuity (RAVA Advantage) RiverSource Retirement Advisor Select(R) Variable Annuity (RAVA Select) RiverSource Retirement Advisor Advantage(R) Variable Annuity - Band 3 (RAVA Advantage Band 3) RiverSource Retirement Advisor Advantage Plus(R) Variable Annuity (RAVA Advantage Plus) RiverSource Retirement Advisor Select Plus(R) Variable Annuity (RAVA Select Plus) RiverSource Retirement Advisor 4 Advantage(SM) Variable Annuity (RAVA 4 Advantage) RiverSource Retirement Advisor 4 Select(SM) Variable Annuity (RAVA 4 Select) RiverSource Retirement Advisor 4 Access(SM) Variable Annuity (RAVA 4 Access) RiverSource(R) Flexible Portfolio Annuity (previously IDS Life Flexible Portfolio Annuity) (FPA) The Account is comprised of various subaccounts. Each subaccount 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 and the corresponding subaccount name are provided below.
SUBACCOUNT FUND ---------- ---- AIM VI Cap Appr, Ser I AIM V.I. Capital Appreciation Fund, Series I Shares AIM VI Cap Appr, Ser II AIM V.I. Capital Appreciation Fund, Series II Shares AIM VI Cap Dev, Ser I AIM V.I. Capital Development Fund, Series I Shares AIM VI Cap Dev, Ser II AIM V.I. Capital Development Fund, Series II Shares AIM VI Core Eq, Ser I AIM V.I. Core Equity Fund, Series I Shares AIM VI Dyn, Ser I AIM V.I. Dynamics Fund, Series I Shares AIM VI Fin Serv, Ser I AIM V.I. Financial Services Fund, Series I Shares AIM VI Fin Serv, Ser II AIM V.I. Financial Services Fund, Series II Shares AIM VI Global Hlth Care, Ser II AIM V.I. Global Health Care Fund, Series II Shares AIM VI Intl Gro, Ser II AIM V.I. International Growth Fund, Series II Shares AIM VI Tech, Ser I AIM V.I. Technology Fund, Series I Shares AB VPS Global Tech, Cl B AllianceBernstein VPS Global Technology Portfolio (Class B) AB VPS Gro & Inc, Cl B AllianceBernstein VPS Growth and Income Portfolio (Class B) AB VPS Intl Val, Cl B AllianceBernstein VPS International Value Portfolio (Class B) AB VPS Lg Cap Gro, Cl B AllianceBernstein VPS Large Cap Growth Portfolio (Class B) AC VP Intl, Cl I American Century VP International, Class I AC VP Intl, Cl II American Century VP International, Class II AC VP Mid Cap Val, Cl II American Century VP Mid Cap Value, Class II AC VP Ultra, Cl II American Century VP Ultra(R), Class II AC VP Val, Cl I American Century VP Value, Class I AC VP Val, Cl II American Century VP Value, Class II Calvert VS Social Bal Calvert Variable Series, Inc. Social Balanced Portfolio Col Hi Yield, VS Cl B Columbia High Yield Fund, Variable Series, Class B(1) Col Marsico Gro, VS Cl A Columbia Marsico Growth Fund, Variable Series, Class A Col Marsico Intl Opp, VS Cl B Columbia Marsico International Opportunities Fund, Variable Series, Class B CS Commodity Return Credit Suisse Trust - Commodity Return Strategy Portfolio CS Mid-Cap Core Credit Suisse Trust - Mid-Cap Core Portfolio (previously Credit Suisse Trust - Mid-Cap Growth Portfolio) CS Sm Cap Core I Credit Suisse Trust - Small Cap Core I Portfolio (previously Credit Suisse Trust - Small Cap Growth Portfolio) Drey VIF Intl Eq, Serv Dreyfus Variable Investment Fund International Equity Portfolio, Service Shares Drey VIF Intl Val, Serv Dreyfus Variable Investment Fund International Value Portfolio, Service Shares EV VT Floating-Rate Inc Eaton Vance VT Floating-Rate Income Fund
64 - RIVERSOURCE VARIABLE ACCOUNT 10
SUBACCOUNT FUND ---------- ---- EG VA Fundamental Lg Cap, Cl 2 Evergreen VA Fundamental Large Cap Fund - Class 2 EG VA Intl Eq, Cl 2 Evergreen VA International Equity Fund - Class 2 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 Gro & Inc, Serv Cl 2 Fidelity(R) VIP Growth & Income Portfolio Service Class 2 Fid VIP Mid Cap, Serv Cl Fidelity(R) VIP Mid Cap Portfolio Service Class Fid VIP Mid Cap, Serv Cl 2 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 Fid VIP Overseas, Serv Cl Fidelity(R) VIP Overseas Portfolio Service Class Fid VIP Overseas, Serv Cl 2 Fidelity(R) VIP Overseas Portfolio Service Class 2 FTVIPT Frank Global Real Est, Cl 2 FTVIPT Franklin Global Real Estate Securities Fund - Class 2 (previously FTVIPT Franklin Real Estate Fund - Class 2) FTVIPT Frank Sm Cap Val, Cl 2 FTVIPT Franklin Small Cap Value Securities Fund - Class 2 FTVIPT Mutual Shares Sec, Cl 2 FTVIPT Mutual Shares Securities Fund - Class 2 FTVIPT Temp Dev Mkts Sec, Cl 1 FTVIPT Templeton Developing Markets Securities Fund - Class 1 FTVIPT Temp For Sec, Cl 2 FTVIPT Templeton Foreign 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 Janus Aspen Global Tech, Serv Janus Aspen Series Global Technology Portfolio: Service Shares Janus Aspen Intl Gro, Serv Janus Aspen Series International Growth Portfolio: Service Shares Janus Aspen Mid Cap Gro, Serv Janus Aspen Series Mid Cap Growth Portfolio: Service Shares Lazard Retire Intl Eq, Serv Lazard Retirement International Equity Portfolio - Service Shares LM Ptnrs Var Sm Cap Gro, Cl II Legg Mason Partners Variable Small Cap Growth Portfolio, Class II(2) 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 Total Return, Serv Cl MFS(R) Total Return Series - Service Class MFS Utilities, Serv Cl MFS(R) Utilities Series - Service Class NB AMT Intl, Cl S Neuberger Berman Advisers Management Trust International Portfolio (Class S) NB AMT Soc Responsive, Cl S Neuberger Berman Advisers Management Trust Socially Responsive Portfolio (Class S) Oppen Global Sec VA, Serv Oppenheimer Global Securities Fund/VA, Service Shares Oppen Main St Sm Cap VA, Serv Oppenheimer Main Street Small Cap Fund/VA, Service Shares Oppen Strategic Bond VA, Serv Oppenheimer Strategic Bond Fund/VA, Service Shares Oppen Val VA, Serv Oppenheimer Value Fund/VA, Service Shares PIMCO VIT All Asset, Advisor Cl PIMCO VIT All Asset Portfolio, Advisor Share Class Pioneer Eq Inc VCT, Cl II Pioneer Equity Income VCT Portfolio - Class II Shares Pioneer Intl Val VCT, Cl II Pioneer International Value VCT Portfolio - Class II Shares(3) Put VT Hlth Sciences, Cl IB Putnam VT Health Sciences Fund - Class IB Shares Put VT Intl Eq, Cl IB Putnam VT International Equity Fund - Class IB Shares Put VT Intl New Opp, Cl IB Putnam VT International New Opportunities Fund - Class IB Shares Put VT New Opp, Cl IA Putnam VT New Opportunities Fund - Class IA Shares Put VT Vista, Cl IB Putnam VT Vista Fund - Class IB Shares RVS VP Bal RiverSource(R) Variable Portfolio - Balanced Fund RVS VP Cash Mgmt RiverSource(R) Variable Portfolio - Cash Management Fund RVS VP Core Bond RiverSource(R) Variable Portfolio - Core Bond Fund RVS VP Div Bond RiverSource(R) Variable Portfolio - Diversified Bond Fund RVS VP Div Eq Inc RiverSource(R) Variable Portfolio - Diversified Equity Income Fund RVS VP Emer Mkts RiverSource(R) Variable Portfolio - Emerging Markets Fund RVS VP Fundamental Val RiverSource(R) Variable Portfolio - Fundamental Value Fund RVS VP Global Bond RiverSource(R) Variable Portfolio - Global Bond Fund RVS VP Global Inflation Prot Sec RiverSource(R) Variable Portfolio - Global Inflation Protected Securities Fund RVS VP Gro RiverSource(R) Variable Portfolio - Growth Fund RVS VP Hi Yield Bond RiverSource(R) Variable Portfolio - High Yield Bond Fund RVS VP Inc Opp RiverSource(R) Variable Portfolio - Income Opportunities Fund RVS VP Intl Opp RiverSource(R) Variable Portfolio - International Opportunity Fund RVS VP Lg Cap Eq RiverSource(R) Variable Portfolio - Large Cap Equity Fund(4) RVS VP Lg Cap Val RiverSource(R) Variable Portfolio - Large Cap Value Fund RVS VP Mid Cap Gro RiverSource(R) Variable Portfolio - Mid Cap Growth Fund(5) RVS VP Mid Cap Val RiverSource(R) Variable Portfolio - Mid Cap Value Fund RVS VP S&P 500 RiverSource(R) Variable Portfolio - S&P 500 Index Fund RVS VP Select Val RiverSource(R) Variable Portfolio - Select Value Fund RVS VP Short Duration RiverSource(R) Variable Portfolio - Short Duration U.S. Government Fund RVS VP Sm Cap Adv RiverSource(R) Variable Portfolio - Small Cap Advantage Fund RVS VP Sm Cap Val RiverSource(R) Variable Portfolio - Small Cap Value Fund Royce Micro-Cap, Invest CI Royce Micro-Cap Portfolio - Investment Class Third Ave Val Third Avenue Value Portfolio VanK LIT Comstock, Cl II Van Kampen Life Investment Trust Comstock Portfolio, Class II Shares VanK UIF Global Real Est, Cl II Van Kampen UIF Global Real Estate Portfolio, Class II Shares VanK UIF Mid Cap Gro, Cl II Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares
RIVERSOURCE VARIABLE ACCOUNT 10 - 65
SUBACCOUNT FUND ---------- ---- Wanger Intl Sm Cap Wanger International Small Cap Wanger U.S. Sm CO Wanger U.S. Smaller Companies WF Adv VT Asset Alloc Wells Fargo Advantage VT Asset Allocation Fund WF Adv VT Intl Core Wells Fargo Advantage VT International Core Fund WF Adv VT Opp Wells Fargo Advantage VT Opportunity Fund WF Adv VT Sm Cap Gro Wells Fargo Advantage VT Small Cap Growth Fund
(1) Columbia High Yield Fund, Variable Series, Class B merged into Nations High Yield Bond Portfolio on April 28, 2006. On May 1, 2006, Nations High Yield Bond Portfolio changed its name to Columbia High Yield Fund, Variable Series, Class B. (2) Legg Mason Partners Variable Small Cap Growth Portfolio, Class II merged into Legg Mason Partners Variable Small Cap Growth Portfolio, Class I on April 27, 2007. (3) Pioneer Europe VCT Portfolio - Class II Shares reorganized into Pioneer International Value VCT Portfolio - Class II Shares on Dec. 15, 2006. (4) RiverSource(R) Variable Portfolio - New Dimensions Fund(R) merged into RiverSource(R) Variable Portfolio - Large Cap Equity Fund on March 17, 2006. (5) RiverSource(R) Variable Portfolio - Strategy Aggressive Fund merged into RiverSource(R) Variable Portfolio - Mid Cap Growth Fund on March 17, 2006. The assets of each subaccount 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 Investments in shares of the Funds are stated at market value which is the net asset value per share as determined by the respective 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 subaccounts on the ex-dividend date. Unrealized appreciation or depreciation of investments in the accompanying financial statements represents the subaccounts' share of the Funds' undistributed net investment income, undistributed realized gain or loss and the unrealized appreciation or depreciation on their investment securities. 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. 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 reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increase and decrease in net assets from operations during the period. Actual results could differ from those estimates. 66 - RIVERSOURCE VARIABLE ACCOUNT 10 3. VARIABLE ACCOUNT EXPENSES RiverSource Life makes contractual assurances to the Account that possible future adverse changes in administrative expenses and mortality experience of the contract owners and annuitants will not affect the Account. RiverSource Life deducts a daily mortality and expense risk fee equal, on an annual basis, to the following percent of the average daily net assets of each subaccount.
PRODUCT MORTALITY AND EXPENSE RISK FEE ------- ------------------------------ RAVA 0.75% to 0.95% (depending on the contract selected) RAVA Band 3 0.55% RAVA Advantage 0.75% to 0.95% (depending on the contract selected) RAVA Select 1.00% to 1.20% (depending on the contract selected) RAVA Advantage Band 3 0.55% RAVA Advantage Plus 0.55% to 0.95% (depending on the contract selected) RAVA Select Plus 0.75% to 1.20% (depending on the contract selected) RAVA 4 Advantage 0.85% to 1.05% (depending on the contract selected) RAVA 4 Select 1.10% to 1.30% (depending on the contract selected) RAVA 4 Access 1.25% to 1.45% (depending on the contract selected) FPA 1.25%
4. CONTRACT CHARGES RiverSource Life deducts a contract administrative charge of $30 per year. This charge reimburses RiverSource Life for expenses incurred in establishing and maintaining the annuity records. Certain products may waive this charge based upon the underlying contract value. Optional riders are available on certain products and if selected, the related fees are deducted annually from the contract value on the contract anniversary. Additional information can be found in the applicable product's prospectus. 5. SURRENDER CHARGES RiverSource Life may use a surrender charge to help it recover certain expenses related to the sale of the annuity. When applicable, a surrender charge will apply for a maximum number of years, as depicted in the surrender charge schedule included in the applicable product's prospectus. Charges by RiverSource Life for surrenders are not identified on an individual segregated asset account basis. Such charges are not treated as a separate expense of the subaccounts. They are ultimately deducted from contract surrender benefits paid by RiverSource Life. RIVERSOURCE VARIABLE ACCOUNT 10 - 67 6. RELATED PARTY TRANSACTIONS Management fees are paid indirectly to RiverSource Investments, LLC, an affiliate of RiverSource Life, in its capacity as investment manager for the following RiverSource(R) Variable Portfolio Funds shown in the table below. The Fund's Investment Management Services Agreement provides for a fee at a percentage of each Fund's average daily net assets that declines as each Fund's net assets increase. The annual percentage range for each Fund is as follows:
CURRENT PERCENTAGE PERCENTAGE RANGE FUND RANGE PRIOR TO MARCH 1, 2006 ---- ------------------ ---------------------- RiverSource(R) Variable Portfolio - Balanced Fund 0.530% to 0.350% 0.630% to 0.550% RiverSource(R) Variable Portfolio - Cash Management Fund 0.330% to 0.150% 0.510% to 0.440% RiverSource(R) Variable Portfolio - Core Bond Fund 0.480% to 0.290% 0.630% to 0.555% RiverSource(R) Variable Portfolio - Diversified Bond Fund 0.480% to 0.290% 0.610% to 0.535% RiverSource(R) Variable Portfolio - Diversified Equity Income Fund 0.600% to 0.375% 0.560% to 0.470% RiverSource(R) Variable Portfolio - Emerging Markets Fund 1.100% to 0.900% 1.170% to 1.095% RiverSource(R) Variable Portfolio - Fundamental Value Fund 0.730% to 0.600% N/A RiverSource(R) Variable Portfolio - Global Bond Fund 0.720% to 0.520% 0.840% to 0.780% RiverSource(R) Variable Portfolio - Global Inflation Protected Securities Fund 0.440% to 0.250% 0.490% to 0.415% RiverSource(R) Variable Portfolio - Growth Fund 0.600% to 0.375% 0.630% to 0.570% RiverSource(R) Variable Portfolio - High Yield Bond Fund 0.590% to 0.360% 0.620% to 0.545% RiverSource(R) Variable Portfolio - Income Opportunities Fund 0.610% to 0.380% 0.640% to 0.565% RiverSource(R) Variable Portfolio - International Opportunity Fund 0.800% to 0.570% 0.870% to 0.795% RiverSource(R) Variable Portfolio - Large Cap Equity Fund 0.600% to 0.375% 0.630% to 0.570% RiverSource(R) Variable Portfolio - Large Cap Value Fund 0.600% to 0.375% 0.630% to 0.570% RiverSource(R) Variable Portfolio - Mid Cap Growth Fund 0.700% to 0.475% 0.650% to 0.560% RiverSource(R) Variable Portfolio - Mid Cap Value Fund 0.700% to 0.475% 0.730% to 0.610% RiverSource(R) Variable Portfolio - S&P 500 Index Fund 0.220% to 0.120% 0.290% to 0.260% RiverSource(R) Variable Portfolio - Select Value Fund 0.780% to 0.650% 0.810% to 0.720% RiverSource(R) Variable Portfolio - Short Duration U.S. Government Fund 0.480% to 0.250% 0.610% to 0.535% RiverSource(R) Variable Portfolio - Small Cap Advantage Fund 0.790% to 0.665% 0.790% to 0.650% RiverSource(R) Variable Portfolio - Small Cap Value Fund 0.970% to 0.870% 1.020% to 0.920%
For the following Funds the fee may be adjusted upward or downward by a performance incentive adjustment. The adjustment is based on a comparison of the performance of each Fund to an index of similar funds up to a maximum percentage of each Fund's average daily net assets after deducting 0.50% from the performance difference. If the performance difference is less than 0.50%, the adjustment will be zero. The maximum performance incentive adjustment is 0.08% for RiverSource(R) Variable Portfolio -Balanced Fund and is 0.12% for the following Funds: RiverSource(R) Variable Portfolio - Diversified Equity Income Fund RiverSource(R) Variable Portfolio - Emerging Markets Fund RiverSource(R) Variable Portfolio - Fundamental Value Fund RiverSource(R) Variable Portfolio - Growth Fund RiverSource(R) Variable Portfolio - International Opportunity Fund RiverSource(R) Variable Portfolio - Large Cap Equity Fund RiverSource(R) Variable Portfolio - Large Cap Value Fund RiverSource(R) Variable Portfolio - Mid Cap Growth Fund RiverSource(R) Variable Portfolio - Mid Cap Value Fund RiverSource(R) Variable Portfolio - Select Value Fund RiverSource(R) Variable Portfolio - Small Cap Advantage Fund RiverSource(R) Variable Portfolio - Small Cap Value Fund Effective March 1, 2006, the Funds entered into a separate transfer agent agreement with RiverSource Service Corporation. The fee under this agreement for all RiverSource(R) Variable Portfolio Funds is an annual rate of 0.06% of average daily net assets. Previously these transfer agent fees were included in the Investment Management Services Agreement. Although the management fee schedules vary by each Fund, this change decreases the management fee rate between 0.03% and 0.15% of average daily net assets. Effective Jan. 1, 2007, the Funds have an agreement with RiverSource Distributors, Inc. for distribution services. Under a Plan and Agreement of Distribution pursuant to Rule 12b-1, each Fund pays RiverSource Distributors, Inc. a fee at an annual rate of up to 0.125% of each Fund's average daily net assets. Prior to Jan. 1, 2007, the Funds had an agreement with RiverSource Life for distribution services, and under a Plan and Agreement of Distribution pursuant to Rule 12b-1, each Fund paid RiverSource Life a fee at an annual rate of up to 0.125% of each Fund's average daily net assets. 68 - RIVERSOURCE VARIABLE ACCOUNT 10 The following RiverSource(R) Variable Portfolio Funds, as shown in the table below, have an Administrative Services Agreement with Ameriprise Financial, Inc. (Ameriprise Financial). Under this agreement, each Fund pays Ameriprise Financial a fee for administration and accounting services at a percentage of each Fund's average daily net assets that declines as each Fund's net assets increase. The annual percentage range for each Fund is as follows:
CURRENT PERCENTAGE PERCENTAGE RANGE FUND RANGE PRIOR TO OCT. 1, 2005 ---- ------------------ --------------------- RiverSource(R) Variable Portfolio - Balanced Fund 0.060% to 0.030% 0.040% to 0.020% RiverSource(R) Variable Portfolio - Cash Management Fund 0.060% to 0.030% 0.030% to 0.020% RiverSource(R) Variable Portfolio - Core Bond Fund 0.070% to 0.040% 0.050% to 0.025% RiverSource(R) Variable Portfolio - Diversified Bond Fund 0.070% to 0.040% 0.050% to 0.025% RiverSource(R) Variable Portfolio - Diversified Equity Income Fund 0.060% to 0.030% 0.040% to 0.020% RiverSource(R) Variable Portfolio - Emerging Markets Fund 0.080% to 0.050% 0.100% to 0.050% RiverSource(R) Variable Portfolio - Fundamental Value Fund 0.060% to 0.030% N/A RiverSource(R) Variable Portfolio - Global Bond Fund 0.080% to 0.050% 0.060% to 0.040% RiverSource(R) Variable Portfolio - Global Inflation Protected Securities Fund 0.070% to 0.040% 0.050% to 0.025% RiverSource(R) Variable Portfolio - Growth Fund 0.060% to 0.030% 0.050% to 0.030% RiverSource(R) Variable Portfolio - High Yield Bond Fund 0.070% to 0.040% 0.050% to 0.025% RiverSource(R) Variable Portfolio - Income Opportunities Fund 0.070% to 0.040% 0.050% to 0.025% RiverSource(R) Variable Portfolio - International Opportunity Fund 0.080% to 0.050% 0.060% to 0.035% RiverSource(R) Variable Portfolio - Large Cap Equity Fund 0.060% to 0.030% 0.050% to 0.030% RiverSource(R) Variable Portfolio - Large Cap Value Fund 0.060% to 0.030% 0.050% to 0.030% RiverSource(R) Variable Portfolio - Mid Cap Growth Fund 0.060% to 0.030% 0.060% to 0.030% RiverSource(R) Variable Portfolio - Mid Cap Value Fund 0.060% to 0.030% 0.050% to 0.020% RiverSource(R) Variable Portfolio - S&P 500 Index Fund 0.060% to 0.030% 0.080% to 0.065% RiverSource(R) Variable Portfolio - Select Value Fund 0.060% to 0.030% 0.060% to 0.035% RiverSource(R) Variable Portfolio - Short Duration U.S. Government Fund 0.070% to 0.040% 0.050% to 0.025% RiverSource(R) Variable Portfolio - Small Cap Advantage Fund 0.080% to 0.050% 0.060% to 0.035% RiverSource(R) Variable Portfolio - Small Cap Value Fund 0.080% to 0.050% 0.080% to 0.055%
The RiverSource(R) Variable Portfolio Funds, as shown in the table above, pay custodian fees to Ameriprise Trust Company, an affiliate of RiverSource Life. 7. INVESTMENT TRANSACTIONS The subaccounts' purchases of Funds' shares, including reinvestment of dividend distributions, for the period ended Dec. 31, 2006 were as follows:
SUBACCOUNT FUND PURCHASES ---------- ---- ---------------- AIM VI Cap Appr, Ser I AIM V.I. Capital Appreciation Fund, Series I Shares $ 3,827,820 AIM VI Cap Appr, Ser II AIM V.I. Capital Appreciation Fund, Series II Shares 30,671,161 AIM VI Cap Dev, Ser I AIM V.I. Capital Development Fund, Series I Shares 2,110,543 AIM VI Cap Dev, Ser II AIM V.I. Capital Development Fund, Series II Shares 14,948,149 AIM VI Core Eq, Ser I AIM V.I. Core Equity Fund, Series I Shares 1,305,658 AIM VI Dyn, Ser I AIM V.I. Dynamics Fund, Series I Shares 756,709 AIM VI Fin Serv, Ser I AIM V.I. Financial Services Fund, Series I Shares 7,116,779 AIM VI Fin Serv, Ser II AIM V.I. Financial Services Fund, Series II Shares 1,547,954 AIM VI Global Hlth Care, Ser II AIM V.I. Global Health Care Fund, Series II Shares 88,009,662 AIM VI Intl Gro, Ser II AIM V.I. International Growth Fund, Series II Shares 6,271,361 AIM VI Tech, Ser I AIM V.I. Technology Fund, Series I Shares 3,812,641 AB VPS Global Tech, Cl B AllianceBernstein VPS Global Technology Portfolio (Class B) 37,602,466 AB VPS Gro & Inc, Cl B AllianceBernstein VPS Growth and Income Portfolio (Class B) 36,605,670 AB VPS Intl Val, Cl B AllianceBernstein VPS International Value Portfolio (Class B) 327,065,071 AB VPS Lg Cap Gro, Cl B AllianceBernstein VPS Large Cap Growth Portfolio (Class B) 703,482 AC VP Intl, Cl I American Century VP International, Class I 3,304,718 AC VP Intl, Cl II American Century VP International, Class II 14,161,753 AC VP Mid Cap Val, Cl II American Century VP Mid Cap Value, Class II 3,144,085 AC VP Ultra, Cl II American Century VP Ultra(R), Class II 203,737,905 AC VP Val, Cl I American Century VP Value, Class I 74,734,296 AC VP Val, Cl II American Century VP Value, Class II 68,085,195 Calvert VS Social Bal Calvert Variable Series, Inc. Social Balanced Portfolio 10,143,824 Col Hi Yield, VS Cl B Columbia High Yield Fund, Variable Series, Class B 140,716,281 Col Marsico Gro, VS Cl A Columbia Marsico Growth Fund, Variable Series, Class A 309,565,288 Col Marsico Intl Opp, VS Cl B Columbia Marsico International Opportunities Fund, Variable Series, Class B 155,419,996 CS Commodity Return Credit Suisse Trust - Commodity Return Strategy Portfolio 139,993,595 CS Mid-Cap Core Credit Suisse Trust - Mid-Cap Core Portfolio 464,639 CS Sm Cap Core I Credit Suisse Trust - Small Cap Core I Portfolio -- Drey VIF Intl Eq, Serv Dreyfus Variable Investment Fund International Equity Portfolio, Service Shares 1,749,578 Drey VIF Intl Val, Serv Dreyfus Variable Investment Fund International Value Portfolio, Service Shares 1,328,881
RIVERSOURCE VARIABLE ACCOUNT 10 - 69
SUBACCOUNT FUND PURCHASES ---------- ---- ---------------- EV VT Floating-Rate Inc Eaton Vance VT Floating-Rate Income Fund $ 312,097,859 EG VA Fundamental Lg Cap, Cl 2 Evergreen VA Fundamental Large Cap Fund - Class 2 6,484,213 EG VA Intl Eq, Cl 2 Evergreen VA International Equity Fund - Class 2 27,592,811 Fid VIP Contrafund, Serv Cl 2 Fidelity(R) VIP Contrafund(R) Portfolio Service Class 2 662,764,430 Fid VIP Gro & Inc, Serv Cl Fidelity(R) VIP Growth & Income Portfolio Service Class 8,073,086 Fid VIP Gro & Inc, Serv Cl 2 Fidelity(R) VIP Growth & Income Portfolio Service Class 2 25,960,328 Fid VIP Mid Cap, Serv Cl Fidelity(R) VIP Mid Cap Portfolio Service Class 55,410,567 Fid VIP Mid Cap, Serv Cl 2 Fidelity(R) VIP Mid Cap Portfolio Service Class 2 365,732,774 Fid VIP Overseas, Serv Cl Fidelity(R) VIP Overseas Portfolio Service Class 5,476,318 Fid VIP Overseas, Serv Cl 2 Fidelity(R) VIP Overseas Portfolio Service Class 2 36,162,278 FTVIPT Frank Global Real Est, Cl 2 FTVIPT Franklin Global Real Estate Securities Fund - Class 2 124,524,216 FTVIPT Frank Sm Cap Val, Cl 2 FTVIPT Franklin Small Cap Value Securities Fund - Class 2 48,696,815 FTVIPT Mutual Shares Sec, Cl 2 FTVIPT Mutual Shares Securities Fund - Class 2 88,559,121 FTVIPT Temp Dev Mkts Sec, Cl 1 FTVIPT Templeton Developing Markets Securities Fund - Class 1 3,976,532 FTVIPT Temp For Sec, Cl 2 FTVIPT Templeton Foreign Securities Fund - Class 2 1,928,578 GS VIT Mid Cap Val, Inst Goldman Sachs VIT Mid Cap Value Fund - Institutional Shares 207,835,868 GS VIT Structd Sm Cap Eq, Inst Goldman Sachs VIT Structured Small Cap Equity Fund - Institutional Shares 3,833,930 GS VIT Structd U.S. Eq, Inst Goldman Sachs VIT Structured U.S. Equity Fund - Institutional Shares 50,191,735 Janus Aspen Global Tech, Serv Janus Aspen Series Global Technology Portfolio: Service Shares 2,593,251 Janus Aspen Intl Gro, Serv Janus Aspen Series International Growth Portfolio: Service Shares 21,429,773 Janus Aspen Mid Cap Gro, Serv Janus Aspen Series Mid Cap Growth Portfolio: Service Shares 748,202 Lazard Retire Intl Eq, Serv Lazard Retirement International Equity Portfolio - Service Shares 16,520,314 LM Ptnrs Var Sm Cap Gro, Cl II Legg Mason Partners Variable Small Cap Growth Portfolio, Class II 2,854,850 MFS Inv Gro Stock, Serv Cl MFS(R) Investors Growth Stock Series - Service Class 7,733,892 MFS New Dis, Serv Cl MFS(R) New Discovery Series - Service Class 3,648,618 MFS Total Return, Serv Cl MFS(R) Total Return Series - Service Class 27,377,126 MFS Utilities, Serv Cl MFS(R) Utilities Series - Service Class 93,308,228 NB AMT Intl, Cl S Neuberger Berman Advisers Management Trust International Portfolio (Class S) 143,222,036 NB AMT Soc Responsive, Cl S Neuberger Berman Advisers Management Trust Socially Responsive Portfolio (Class S) 512,611 Oppen Global Sec VA, Serv Oppenheimer Global Securities Fund/VA, Service Shares 70,826,310 Oppen Main St Sm Cap VA, Serv Oppenheimer Main Street Small Cap Fund/VA, Service Shares 54,986,541 Oppen Strategic Bond VA, Serv Oppenheimer Strategic Bond Fund/VA, Service Shares 643,004,683 Oppen Val VA, Serv Oppenheimer Value Fund/VA, Service Shares 480,784 PIMCO VIT All Asset, Advisor Cl PIMCO VIT All Asset Portfolio, Advisor Share Class 461,049,402 Pioneer Eq Inc VCT, Cl II Pioneer Equity Income VCT Portfolio - Class II Shares 6,861,426 Pioneer Intl Val VCT, Cl II Pioneer International Value VCT Portfolio - Class II Shares 8,678,122 Put VT Hlth Sciences, Cl IB Putnam VT Health Sciences Fund - Class IB Shares 21,949,676 Put VT Intl Eq, Cl IB Putnam VT International Equity Fund - Class IB Shares 7,529,420 Put VT Intl New Opp, Cl IB Putnam VT International New Opportunities Fund - Class IB Shares 2,773,848 Put VT New Opp, Cl IA Putnam VT New Opportunities Fund - Class IA Shares 322,612 Put VT Vista, Cl IB Putnam VT Vista Fund - Class IB Shares 2,091,186 RVS VP Bal RiverSource(R) Variable Portfolio - Balanced Fund 56,443,773 RVS VP Cash Mgmt RiverSource(R) Variable Portfolio - Cash Management Fund 502,579,800 RVS VP Core Bond RiverSource(R) Variable Portfolio - Core Bond Fund 27,118,153 RVS VP Div Bond RiverSource(R) Variable Portfolio - Diversified Bond Fund 796,786,818 RVS VP Div Eq Inc RiverSource(R) Variable Portfolio - Diversified Equity Income Fund 897,491,579 RVS VP Emer Mkts RiverSource(R) Variable Portfolio - Emerging Markets Fund 181,005,031 RVS VP Fundamental Val RiverSource(R) Variable Portfolio - Fundamental Value Fund 345,282,457 RVS VP Global Bond RiverSource(R) Variable Portfolio - Global Bond Fund 214,036,853 RVS VP Global Inflation Prot Sec RiverSource(R) Variable Portfolio - Global Inflation Protected Securities Fund 321,201,514 RVS VP Gro RiverSource(R) Variable Portfolio - Growth Fund 165,635,641 RVS VP Hi Yield Bond RiverSource(R) Variable Portfolio - High Yield Bond Fund 126,953,513 RVS VP Inc Opp RiverSource(R) Variable Portfolio - Income Opportunities Fund 277,395,123 RVS VP Intl Opp RiverSource(R) Variable Portfolio - International Opportunity Fund 35,185,156 RVS VP Lg Cap Eq RiverSource(R) Variable Portfolio - Large Cap Equity Fund 1,042,361,960 RVS VP Lg Cap Val RiverSource(R) Variable Portfolio - Large Cap Value Fund 8,013,726 RVS VP Mid Cap Gro RiverSource(R) Variable Portfolio - Mid Cap Growth Fund 184,065,603 RVS VP Mid Cap Val RiverSource(R) Variable Portfolio - Mid Cap Value Fund 313,446,492 RVS VP S&P 500 RiverSource(R) Variable Portfolio - S&P 500 Index Fund 18,629,265 RVS VP Select Val RiverSource(R) Variable Portfolio - Select Value Fund 6,783,975 RVS VP Short Duration RiverSource(R) Variable Portfolio - Short Duration U.S. Government Fund 54,767,040 RVS VP Sm Cap Adv RiverSource(R) Variable Portfolio - Small Cap Advantage Fund 25,156,058 RVS VP Sm Cap Val RiverSource(R) Variable Portfolio - Small Cap Value Fund 143,761,230 Royce Micro-Cap, Invest CI Royce Micro-Cap Portfolio - Investment Class 10,004,271 Third Ave Val Third Avenue Value Portfolio 12,864,638 VanK LIT Comstock, Cl II Van Kampen Life Investment Trust Comstock Portfolio, Class II Shares 379,589,488 VanK UIF Global Real Est, Cl II Van Kampen UIF Global Real Estate Portfolio, Class II Shares 151,993,390
70 - RIVERSOURCE VARIABLE ACCOUNT 10
SUBACCOUNT FUND PURCHASES ---------- ---- ---------------- VanK UIF Mid Cap Gro, Cl II Van Kampen UIF Mid Cap Growth Portfolio, Class II Shares $ 93,250,472 Wanger Intl Sm Cap Wanger International Small Cap 170,683,465 Wanger U.S. Sm CO Wanger U.S. Smaller Companies 149,560,462 WF Adv VT Asset Alloc Wells Fargo Advantage VT Asset Allocation Fund 11,404,981 WF Adv VT Intl Core Wells Fargo Advantage VT International Core Fund 3,031,042 WF Adv VT Opp Wells Fargo Advantage VT Opportunity Fund 16,326,313 WF Adv VT Sm Cap Gro Wells Fargo Advantage VT Small Cap Growth Fund 19,595,026
8. ACCUMULATION UNIT VALUES, UNITS OUTSTANDING AND NET ASSETS The following is a summary of accumulation unit values at Dec. 31, 2006:
AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR CAP DEV, CAP DEV, CORE EQ, PRICE LEVEL SER I SER II SER I SER II SER I ----------- --------- -------- -------- -------- -------- 0.55% $1.05 $1.14 $1.92 $1.48 $ -- 0.75% 1.03 1.12 1.89 1.47 -- 0.85% -- 1.09 -- 1.10 -- 0.95% 1.02 1.11 1.86 1.45 -- 1.00% -- 1.18 -- 1.53 -- 1.05% -- 1.09 -- 1.10 -- 1.10% -- 1.09 -- 1.10 -- 1.20% -- 1.17 -- 1.51 -- 1.25% -- -- -- -- -- 1.25% -- 1.09 -- 1.10 1.98 1.30% -- 1.08 -- 1.10 -- 1.45% -- 1.08 -- 1.10 --
AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, PRICE LEVEL SER I SER I SER II CARE, SER II SER II ----------- ------- --------- --------- ------------ --------- 0.55% $1.28 $1.39 $ -- $1.03 $1.39 0.75% 1.27 1.38 -- 1.02 1.39 0.85% -- -- 1.17 1.09 1.24 0.95% 1.25 1.36 -- 1.02 1.38 1.00% 1.37 1.45 -- 1.02 1.38 1.05% -- -- 1.17 1.08 1.24 1.10% -- -- 1.17 1.08 1.24 1.20% 1.36 1.43 -- 1.02 1.38 1.25% -- -- -- -- -- 1.25% -- -- 1.17 1.08 1.23 1.30% -- -- 1.17 1.08 1.23 1.45% -- -- 1.17 1.08 1.23
AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, PRICE LEVEL SER I CL B CL B CL B CL B ----------- ------ ------------ ---------- --------- ----------- 0.55% $0.81 $1.14 $1.31 $2.55 $ -- 0.75% 0.80 1.14 1.30 2.52 -- 0.85% -- 1.15 1.17 1.24 1.10 0.95% 0.79 1.14 1.29 2.49 -- 1.00% 0.93 1.14 1.40 2.59 -- 1.05% -- 1.15 1.17 1.24 1.09 1.10% -- 1.15 1.17 1.24 1.09 1.20% 0.92 1.13 1.38 2.57 -- 1.25% -- -- -- -- -- 1.25% -- 1.15 1.17 1.24 1.09 1.30% -- 1.15 1.17 1.24 1.09 1.45% -- 1.15 1.17 1.24 1.09
RIVERSOURCE VARIABLE ACCOUNT 10 - 71
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, PRICE LEVEL CL I CL II CL II CL II CL I ----------- ----- ----- ------------ ------ ----- 0.55% $1.32 $1.45 $ -- $1.00 $1.89 0.75% 1.30 1.44 -- 0.99 1.87 0.85% -- -- 1.16 1.04 -- 0.95% 1.28 1.42 -- 0.99 1.84 1.00% -- 1.64 -- 0.99 -- 1.05% -- -- 1.16 1.04 -- 1.10% -- -- 1.16 1.04 -- 1.20% -- 1.63 -- 0.99 -- 1.25% -- -- -- -- -- 1.25% -- -- 1.16 1.04 2.75 1.30% -- -- 1.16 1.04 -- 1.45% -- -- 1.16 1.04 --
AC VP COL COL MARSICO COL MARSICO VAL, CALVERT VS HI YIELD, GRO, INTL OPP, PRICE LEVEL CL II SOCIAL BAL VS CL B VS CL A VS CL B ----------- ----- ---------- --------- ----------- ----------- 0.55% $1.61 $1.13 $1.07 $1.02 $1.07 0.75% 1.59 1.12 1.07 1.02 1.07 0.85% 1.16 -- 1.08 1.09 1.20 0.95% 1.57 1.10 1.07 1.02 1.07 1.00% 1.56 1.26 1.07 1.02 1.07 1.05% 1.16 -- 1.08 1.09 1.20 1.10% 1.16 -- 1.08 1.09 1.20 1.20% 1.54 1.24 1.07 1.02 1.06 1.25% -- -- -- -- -- 1.25% 1.16 -- 1.08 1.09 1.20 1.30% 1.16 -- 1.08 1.09 1.20 1.45% 1.16 -- 1.08 1.09 1.20
CS CS CS DREY VIF DREY VIF COMMODITY MID-CAP SM CAP INTL EQ, INTL VAL, PRICE LEVEL RETURN CORE CORE I SERV SERV ----------- --------- ------- -------- --------- ----------- 0.55% $0.97 $1.30 $ -- $ -- $ -- 0.75% 0.97 1.29 -- -- -- 0.85% 1.02 -- -- 1.18 1.16 0.95% 0.97 1.27 -- -- -- 1.00% 0.97 -- -- -- -- 1.05% 1.02 -- -- 1.18 1.16 1.10% 1.02 -- -- 1.18 1.16 1.20% 0.97 -- -- -- -- 1.25% -- -- -- -- -- 1.25% 1.02 -- 1.40 1.18 1.16 1.30% 1.01 -- -- 1.18 1.16 1.45% 1.01 -- -- 1.18 1.16
72 - RIVERSOURCE VARIABLE ACCOUNT 10
EV VT EG VA EG VA FID VIP FID VIP FLOATING-RATE FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, PRICE LEVEL INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL ----------- ------------- ------------ -------- ----------- ---------- 0.55% $1.03 $1.13 $1.62 $1.03 $1.17 0.75% 1.03 1.12 1.61 1.03 1.15 0.85% 1.03 1.12 1.17 1.10 -- 0.95% 1.03 1.11 1.60 1.03 1.14 1.00% 1.03 1.23 1.59 1.03 -- 1.05% 1.03 1.12 1.17 1.10 -- 1.10% 1.03 1.12 1.17 1.10 -- 1.20% 1.03 1.22 1.59 1.03 -- 1.25% -- -- -- -- -- 1.25% 1.02 1.12 1.17 1.10 -- 1.30% 1.02 1.12 1.17 1.10 -- 1.45% 1.02 1.12 1.17 1.09 --
FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, PRICE LEVEL SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ----------- ---------- -------- --------- --------- --------- 0.55% $1.28 $3.20 $2.08 $1.37 $1.66 0.75% 1.26 3.15 2.06 1.35 1.64 0.85% -- -- 1.09 -- 1.16 0.95% 1.25 3.11 2.04 1.33 1.62 1.00% 1.30 -- 1.97 -- 1.80 1.05% -- -- 1.09 -- 1.16 1.10% -- -- 1.09 -- 1.16 1.20% 1.28 -- 1.95 -- 1.79 1.25% -- -- -- -- -- 1.25% -- -- 1.09 -- 1.16 1.30% -- -- 1.09 -- 1.16 1.45% -- -- 1.09 -- 1.16
FTVIPT FRANK FTVIPT FRANK FTVIPT FTVIPT FTVIPT GLOBAL REAL EST, SM CAP VAL, MUTUAL SHARES TEMP DEV MKTS TEMP FOR PRICE LEVEL CL 2 CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 ----------- ---------------- ------------ ------------- ------------- --------- 0.55% $3.27 $2.49 $1.53 $ -- $1.73 0.75% 3.23 2.45 1.51 -- 1.71 0.85% 1.22 1.09 1.14 -- -- 0.95% 3.18 2.42 1.50 -- 1.69 1.00% 2.37 1.84 1.58 -- -- 1.05% 1.21 1.09 1.14 -- -- 1.10% 1.21 1.09 1.14 -- -- 1.20% 2.35 1.82 1.56 -- -- 1.25% -- -- -- -- -- 1.25% 1.20 1.09 1.15 1.40 -- 1.30% 1.21 1.09 1.14 -- -- 1.45% 1.20 1.09 1.15 -- --
RIVERSOURCE VARIABLE ACCOUNT 10 - 73
GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM STRUCTD U.S. GLOBAL TECH, INTL GRO, PRICE LEVEL VAL, INST CAP EQ, INST EQ, INST SERV SERV ----------- --------- ------------ ------------ ------------ ----------- 0.55% $2.71 $2.00 $1.18 $0.43 $1.36 0.75% 2.67 1.97 1.16 0.43 1.34 0.85% -- -- 1.13 -- -- 0.95% 2.63 1.94 1.15 0.42 1.33 1.00% 1.94 -- 1.38 1.08 2.34 1.05% -- -- 1.13 -- -- 1.10% -- -- 1.13 -- -- 1.20% 1.92 -- 1.37 1.07 2.32 1.25% -- -- -- -- -- 1.25% -- -- 1.13 -- -- 1.30% -- -- 1.13 -- -- 1.45% -- -- 1.13 -- --
JANUS ASPEN LAZARD LM PTNRS MFS MFS MID CAP GRO, RETIRE VAR SM CAP INV GRO STOCK, NEW DIS, PRICE LEVEL SERV INTL EQ, SERV GRO, CL II SERV CL SERV CL ----------- ------------ ------------- ---------- -------------- -------- 0.55% $0.61 $1.27 $1.18 $0.71 $1.01 0.75% 0.60 1.25 1.17 0.70 0.99 0.85% -- -- 1.12 1.10 -- 0.95% 0.59 1.23 1.17 0.69 0.98 1.00% -- 1.77 1.17 1.09 1.17 1.05% -- -- 1.11 1.10 -- 1.10% -- -- 1.11 1.10 -- 1.20% -- 1.75 1.17 1.08 1.16 1.25% -- -- -- -- -- 1.25% -- -- 1.11 1.10 -- 1.30% -- -- 1.11 1.10 -- 1.45% -- -- 1.11 1.10 --
MFS MFS NB AMT NB AMT SOC OPPEN TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, GLOBAL SEC VA, PRICE LEVEL SERV CL SERV CL CL S CL S SERV ----------- ------------- ---------- ------ ----------- -------------- 0.55% $1.24 $1.80 $1.05 $ -- $1.53 0.75% 1.23 1.78 1.04 -- 1.52 0.85% 1.11 1.24 1.17 1.14 1.17 0.95% 1.23 1.76 1.04 -- 1.51 1.00% 1.23 2.20 1.04 -- 1.51 1.05% 1.11 1.24 1.17 1.14 1.17 1.10% 1.11 1.24 1.17 1.14 1.17 1.20% 1.22 2.18 1.04 -- 1.50 1.25% -- -- -- -- -- 1.25% 1.11 1.24 1.17 1.14 1.16 1.30% 1.11 1.24 1.17 1.14 1.16 1.45% 1.11 1.24 1.17 1.14 1.16
74 - RIVERSOURCE VARIABLE ACCOUNT 10
OPPEN OPPEN OPPEN PIMCO VIT PIONEER MAIN ST SM STRATEGIC VAL VA, ALL ASSET, EQ INC VCT, PRICE LEVEL CAP VA, SERV BOND VA, SERV SERV ADVISOR CL CL II ----------- ------------- ------------- ------- ---------- ----------- 0.55% $1.44 $1.16 $ -- $1.04 $1.46 0.75% 1.43 1.16 -- 1.04 1.44 0.85% 1.10 1.08 1.07 1.07 -- 0.95% 1.42 1.15 -- 1.04 1.43 1.00% 1.42 1.15 -- 1.04 1.49 1.05% 1.10 1.08 1.07 1.07 -- 1.10% 1.10 1.08 1.07 1.07 -- 1.20% 1.41 1.14 -- 1.04 1.48 1.25% -- -- -- -- -- 1.25% 1.10 1.08 1.07 1.07 -- 1.30% 1.10 1.08 1.07 1.07 -- 1.45% 1.10 1.08 1.07 1.07 --
PIONEER PUT VT PUT VT PUT VT PUT VT INTL VAL VCT, HLTH SCIENCES, INTL EQ, INTL NEW OPP, NEW OPP, PRICE LEVEL CL II CL IB CL IB CL IB CL IA ----------- ------------- -------------- -------- ------------- -------- 0.55% $1.01 $1.12 $1.65 $1.24 $ -- 0.75% 1.01 1.11 1.63 1.22 -- 0.85% -- -- -- -- -- 0.95% 1.01 1.10 1.61 1.21 -- 1.00% 1.01 1.14 1.77 -- -- 1.05% -- -- -- -- -- 1.10% -- -- -- -- -- 1.20% 1.01 1.13 1.75 -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- 1.49 1.30% -- -- -- -- -- 1.45% -- -- -- -- --
PUT VT VISTA, RVS VP RVS VP RVS VP RVS VP PRICE LEVEL CL IB BAL CASH MGMT ORE BOND DIV BOND ----------- ------- -------- --------- -------- --------- 0.55% $1.08 $1.25 $1.17 $1.07 $1.36 0.75% 1.06 1.23 1.16 1.06 1.34 0.85% -- 1.13 1.02 1.05 1.05 0.95% 1.05 1.21 1.14 1.05 1.32 1.00% 1.31 1.35 1.04 1.05 1.16 1.05% -- 1.13 1.02 1.04 1.05 1.10% -- 1.13 1.02 1.04 1.05 1.20% 1.30 1.34 1.03 1.05 1.15 1.25% -- 1.13(1) 1.02(1) -- 1.05(1) 1.25% -- 1.87(2) 1.27(2) 1.04 1.45(2) 1.30% -- 1.13 1.02 1.04 1.05 1.45% -- 1.13 1.02 1.04 1.05
RIVERSOURCE VARIABLE ACCOUNT 10 - 75
RVS VP RVS VP RVS VP RVS VP FUNDAMENTAL RVS VP GLOBAL INFLATION PRICE LEVEL DIV EQ INC EMER MKTS VAL GLOBAL BOND PROT SEC ----------- ---------- --------- ----------- ----------- ---------------- 0.55% $1.83 $2.11 $1.09 $1.46 $1.06 0.75% 1.81 2.05 1.09 1.44 1.05 0.85% 1.13 1.34 1.12 1.05 1.03 0.95% 1.79 2.02 1.08 1.42 1.05 1.00% 1.82 2.70 1.08 1.38 1.05 1.05% 1.13 1.34 1.12 1.05 1.03 1.10% 1.13 1.34 1.12 1.05 1.03 1.20% 1.79 2.68 1.08 1.37 1.04 1.25% -- -- -- 1.05(1) -- 1.25% 1.13 1.34 1.12 1.54(2) 1.03 1.30% 1.13 1.34 1.11 1.05 1.03 1.45% 1.12 1.34 1.11 1.05 1.03
RVS VP RVS VP RVS VP RVS VP RVS VP PRICE LEVEL GRO HI YIELD BOND INC OPP INTL OPP LG CAP EQ ----------- ------ ------------- ------- -------- --------- 0.55% $0.73 $1.39 $1.15 $1.14 $0.97 0.75% 0.73 1.37 1.14 1.12 0.96 0.85% 1.14 1.08 1.07 1.18 1.15 0.95% 0.72 1.35 1.14 1.11 0.94 1.00% 1.17 1.44 1.14 1.74 1.20 1.05% 1.14 1.08 1.07 1.18 1.15 1.10% 1.14 1.08 1.07 1.18 1.15 1.20% 1.16 1.43 1.13 1.73 1.29 1.25% -- 1.08(1) -- 1.17(1) 1.15(1) 1.25% 1.13 1.52(2) 1.07 1.51(2) 1.53(2) 1.30% 1.13 1.08 1.07 1.17 1.15 1.45% 1.13 1.07 1.07 1.17 1.15
RVS VP RVS VP RVS VP RVS VP RVS VP PRICE LEVEL LG CAP VAL MID CAP GRO MID CAP VAL S&P 500 SELECT VAL ----------- ---------- ----------- ----------- ------- ---------- 0.55% $1.35 $1.25 $1.37 $1.01 $1.30 0.75% 1.34 1.22 1.36 1.00 1.29 0.85% 1.16 1.05 1.09 1.14 1.10 0.95% 1.34 1.20 1.36 0.99 1.28 1.00% 1.33 1.24 1.36 1.30 1.28 1.05% 1.16 1.05 1.09 1.14 1.10 1.10% 1.16 1.05 1.09 1.14 1.10 1.20% 1.33 1.23 1.35 1.29 1.27 1.25% -- 1.05(1) -- -- -- 1.25% 1.16 0.96(2) 1.09 1.14 1.10 1.30% 1.16 1.05 1.09 1.14 1.10 1.45% 1.16 1.05 1.09 1.14 1.10
76 - RIVERSOURCE VARIABLE ACCOUNT 10
ROYCE RVS VP RVS VP RVS VP MICRO-CAP, THIRD AVE PRICE LEVEL SHORT DURATION SM CAP ADV SM CAP VAL INVEST CI VAL ----------- -------------- ---------- ---------- ---------- --------- 0.55% $1.28 $1.79 $1.92 $3.41 $3.37 0.75% 1.25 1.77 1.91 3.36 3.32 0.85% 1.03 1.10 1.12 -- -- 0.95% 1.24 1.74 1.89 3.32 3.27 1.00% 1.08 1.68 1.79 -- -- 1.05% 1.03 1.10 1.12 -- -- 1.10% 1.03 1.10 1.12 -- -- 1.20% 1.07 1.66 1.77 -- -- 1.25% -- -- -- -- -- 1.25% 1.03 1.10 1.12 -- -- 1.30% 1.03 1.10 1.12 -- -- 1.45% 1.03 1.09 1.12 -- --
VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL REAL MID CAP GRO, WANGER WANGER PRICE LEVEL CL II EST, CL II CL II INTL SM CAP U.S. SM CO ----------- --------- ----------- ------------ ----------- ---------- 0.55% $1.38 $1.23 $0.99 $2.31 $1.92 0.75% 1.37 1.23 0.99 2.27 1.89 0.85% 1.13 1.29 1.08 1.24 1.08 0.95% 1.36 1.22 0.99 2.24 1.86 1.00% 1.36 1.22 0.99 2.71 1.66 1.05% 1.13 1.28 1.08 1.24 1.08 1.10% 1.13 1.28 1.08 1.24 1.08 1.20% 1.35 1.22 0.99 2.68 1.64 1.25% -- -- -- -- -- 1.25% 1.13 1.28 1.08 1.24 1.08 1.30% 1.13 1.28 1.08 1.24 1.08 1.45% 1.13 1.28 1.08 1.24 1.08
WF ADV VT WF ADV VT WF ADV VT WF ADV VT PRICE LEVEL ASSET ALLOC INTL CORE OPP SM CAP GRO ----------- ----------- --------- --------- ---------- 0.55% $1.29 $1.29 $1.38 $1.20 0.75% 1.28 1.28 1.36 1.18 0.85% -- -- 1.12 1.15 0.95% 1.26 1.26 1.35 1.17 1.00% 1.33 1.48 1.40 1.35 1.05% -- -- 1.11 1.14 1.10% -- -- 1.11 1.14 1.20% 1.32 1.47 1.39 1.34 1.25% -- -- -- -- 1.25% -- -- 1.11 1.14 1.30% -- -- 1.11 1.14 1.45% -- -- 1.11 1.14
RIVERSOURCE VARIABLE ACCOUNT 10 - 77 The following is a summary of units outstanding at Dec. 31, 2006:
AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, PRICE LEVEL SER I SER II SER I SER II SER I ----------- ---------- ----------- ---------- ---------- ----------- 0.55% 379,639 488,718 212,380 183,065 -- 0.75% 38,670,914 109,952,224 13,833,719 25,868,154 -- 0.85% -- 1,059,904 -- 718,622 -- 0.95% 33,758,539 56,007,201 14,226,133 14,692,276 -- 1.00% -- 19,282,305 -- 3,320,576 -- 1.05% -- 1,047,038 -- 574,739 -- 1.10% -- 158,905 -- 319,634 -- 1.20% -- 10,001,668 -- 2,051,303 -- 1.25% -- -- -- -- -- 1.25% -- 14,694 -- 32,771 199,590,592 1.30% -- 256,894 -- 251,537 -- 1.45% -- 95,966 -- 13,198 -- ---------- ----------- ---------- ---------- ----------- Total 72,809,092 198,365,517 28,272,232 48,025,875 199,590,592 ---------- ----------- ---------- ---------- -----------
AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, PRICE LEVEL SER I SER I SER II CARE, SER II SER II ----------- ---------- ----------- --------- ------------ --------- 0.55% 10,511 157,585 -- 1,114,072 104,870 0.75% 7,290,701 12,088,406 -- 33,922,519 1,743,612 0.85% -- -- 695,005 16,983,053 606,951 0.95% 4,211,180 7,305,489 -- 15,226,400 1,198,427 1.00% 607,709 1,342,218 -- 5,096,417 503,266 1.05% -- -- 377,042 7,278,776 566,268 1.10% -- -- 92,448 3,445,164 97,896 1.20% 356,797 904,422 -- 2,466,073 267,459 1.25% -- -- -- -- -- 1.25% -- -- 24,617 203,413 21,146 1.30% -- -- 60,414 1,831,933 101,531 1.45% -- -- 114,494 221,644 14,366 ---------- ---------- --------- ------------ --------- Total 12,476,898 21,798,120 1,364,020 87,789,464 5,225,792 ---------- ---------- --------- ------------ ---------
AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, PRICE LEVEL SER I CL B CL B CL B CL B ----------- ---------- ------------ ----------- ----------- ----------- 0.55% 418,012 652,843 1,373,921 3,591,938 -- 0.75% 25,440,442 14,119,586 135,092,631 203,015,966 -- 0.85% -- 6,466,535 1,936,294 33,087,030 346,005 0.95% 12,093,534 5,608,644 84,551,545 127,478,772 -- 1.00% 3,542,790 2,022,693 18,481,036 31,866,550 -- 1.05% -- 2,365,880 814,525 17,585,662 170,057 1.10% -- 1,141,705 506,810 8,397,053 111,333 1.20% 1,895,856 846,168 12,504,217 19,979,293 -- 1.25% -- -- -- -- -- 1.25% -- 65,975 72,751 875,433 12,036 1.30% -- 563,928 292,742 5,842,632 22,960 1.45% -- 43,306 64,911 1,561,237 4,281 ---------- ------------ ----------- ----------- ----------- Total 43,390,634 33,897,263 255,691,383 453,281,566 666,672 ---------- ------------ ----------- ----------- -----------
78 - RIVERSOURCE VARIABLE ACCOUNT 10
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, PRICE LEVEL CL I CL II CL II CL II CL I ----------- ----------- ---------- ------------ ----------- ----------- 0.55% 352,384 365,426 -- 2,938,858 746,516 0.75% 24,450,495 45,349,154 -- 78,916,085 47,445,611 0.85% -- -- 987,343 36,949,152 -- 0.95% 26,483,474 26,699,722 -- 35,410,632 47,255,595 1.00% -- 7,826,276 -- 12,930,551 -- 1.05% -- -- 1,123,806 16,169,548 -- 1.10% -- -- 249,548 7,306,480 -- 1.20% -- 4,188,339 -- 6,545,475 -- 1.25% -- -- -- -- -- 1.25% -- -- 75,811 508,260 162,570,074 1.30% -- -- 266,872 4,125,303 -- 1.45% -- -- 39,589 530,463 -- ----------- ----------- ---------- ----------- ----------- Total 51,286,353 84,428,917 2,742,969 202,330,807 258,017,796 ----------- ----------- ---------- ----------- -----------
AC VP COL COL MARSICO COL MARSICO VAL, CALVERT VS HI YIELD, GRO, INTL OPP, PRICE LEVEL CL II SOCIAL BAL VS CL B VS CL A VS CL B ----------- ----------- ----------- ----------- ----------- ------------ 0.55% 1,060,386 17,923 584,718 2,834,033 2,193,637 0.75% 136,167,395 24,974,506 48,099,090 121,798,382 59,298,680 0.85% 3,143,029 -- 2,469,047 48,403,449 23,000,818 0.95% 93,342,661 19,333,592 30,820,502 66,351,898 32,711,831 1.00% 24,432,717 3,270,295 12,073,921 21,099,590 9,848,847 1.05% 3,228,018 -- 2,031,561 25,237,005 11,268,443 1.10% 1,104,580 -- 588,359 11,518,682 5,329,766 1.20% 15,591,541 2,144,413 9,164,278 10,663,117 5,250,563 1.25% -- -- -- -- -- 1.25% 117,528 -- 165,720 1,110,399 473,636 1.30% 903,089 -- 576,045 7,436,771 3,503,046 1.45% 213,170 -- 285,894 1,492,501 747,727 ----------- ----------- ----------- ----------- ----------- Total 279,304,114 49,740,729 106,859,135 317,945,827 153,626,994 ----------- ----------- ----------- ----------- -----------
CS CS CS DREY VIF DREY VIF COMMODITY MID-CAP SM CAP INTL EQ, INTL VAL, PRICE LEVEL RETURN CORE CORE I SERV SERV ----------- ----------- ---------- ------------ ----------- ----------- 0.55% 1,599,778 86,170 -- -- -- 0.75% 51,379,882 9,789,249 -- -- -- 0.85% 23,928,292 -- -- 732,688 692,551 0.95% 26,224,223 9,967,184 -- -- -- 1.00% 9,238,544 -- -- -- -- 1.05% 11,513,397 -- -- 334,081 218,257 1.10% 5,525,562 -- -- 186,965 104,165 1.20% 4,962,245 -- -- -- -- 1.25% -- -- -- -- -- 1.25% 737,666 -- 148,637,832 65,888 61,359 1.30% 3,432,631 -- -- 204,996 72,114 1.45% 700,481 -- -- 35,149 18,169 ----------- ---------- ------------ ----------- ----------- Total 139,242,701 19,842,603 148,637,832 1,559,767 1,166,615 ----------- ---------- ------------ ----------- -----------
RIVERSOURCE VARIABLE ACCOUNT 10 - 79
EV VT EG VA EG VA FID VIP FID VIP FLOATING-RATE FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, PRICE LEVEL INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL ----------- ---------------- ------------ ------------- ------------- ------------ 0.55% 2,567,348 55,887 668,574 6,581,980 754,148 0.75% 103,829,833 15,188,903 19,054,552 244,120,652 92,367,632 0.85% 46,638,153 402,924 1,467,093 94,738,152 -- 0.95% 59,159,294 9,669,103 12,673,957 127,364,129 89,221,233 1.00% 18,826,345 1,854,687 6,006,212 40,093,986 -- 1.05% 27,120,421 251,953 775,830 48,091,843 -- 1.10% 11,484,801 84,679 402,841 21,709,476 -- 1.20% 12,200,124 1,267,978 4,046,980 20,348,205 -- 1.25% -- -- -- -- -- 1.25% 1,613,196 3,463 62,383 1,983,201 -- 1.30% 10,135,794 34,629 381,726 14,253,659 -- 1.45% 4,655,025 31,864 78,920 3,216,003 -- ----------- ---------- ---------- ----------- ----------- Total 298,230,334 28,846,070 45,619,068 622,501,286 182,343,013 ----------- ---------- ---------- ----------- -----------
FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, PRICE LEVEL SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ----------- ---------------- ------------ ------------- ------------- ------------ 0.55% 1,623,995 664,422 4,010,542 297,936 1,129,875 0.75% 173,860,587 67,425,735 290,677,707 38,789,148 74,338,667 0.85% -- -- 36,124,955 -- 2,652,575 0.95% 112,863,922 63,503,653 174,833,300 37,262,372 52,627,065 1.00% 25,440,934 -- 53,338,741 -- 10,330,450 1.05% -- -- 18,037,810 -- 1,434,372 1.10% -- -- 8,140,247 -- 577,167 1.20% 16,152,375 -- 32,335,241 -- 7,435,538 1.25% -- -- -- -- -- 1.25% -- -- 823,741 -- 119,790 1.30% -- -- 5,440,636 -- 482,530 1.45% -- -- 1,151,508 -- 234,031 ----------- ----------- ----------- ---------- ----------- Total 329,941,813 131,593,810 624,914,428 76,349,456 151,362,060 ----------- ----------- ----------- ---------- -----------
FTVIPT FRANK FTVIPT FRANK FTVIPT FTVIPT FTVIPT GLOBAL REAL EST, SM CAP VAL, MUTUAL SHARES TEMP DEV MKTS TEMP FOR PRICE LEVEL CL 2 CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 ----------- ---------------- ------------ ------------- ------------- ----------- 0.55% 836,111 738,448 864,753 -- 282,908 0.75% 128,540,420 78,885,543 90,390,866 -- 14,586,682 0.85% 6,443,136 4,227,925 5,797,953 -- -- 0.95% 81,588,583 55,077,861 63,662,486 -- 15,474,835 1.00% 20,694,212 14,227,296 22,449,326 -- -- 1.05% 3,157,156 2,406,759 4,293,865 -- -- 1.10% 1,034,231 896,266 2,909,939 -- -- 1.20% 13,497,911 8,954,067 13,922,123 -- -- 1.25% -- -- -- -- -- 1.25% 108,272 119,298 403,363 179,402,572 -- 1.30% 1,106,769 1,064,319 2,029,594 -- -- 1.45% 413,922 232,442 485,042 -- -- ----------- ----------- ----------- ----------- ---------- Total 257,420,723 166,830,224 207,209,310 179,402,572 30,344,425 ----------- ----------- ----------- ----------- ----------
80 - RIVERSOURCE VARIABLE ACCOUNT 10
GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM STRUCTD U.S. GLOBAL TECH, INTL GRO, PRICE LEVEL VAL, INST CAP EQ, INST EQ, INST SERV SERV ----------- ------------- ------------ ------------ -------------- --------------- 0.55% 2,338,676 113,708 2,498,679 180,216 230,593 0.75% 163,687,475 8,977,225 231,223,362 30,605,608 77,238,682 0.85% -- -- 4,039,792 -- -- 0.95% 112,451,843 9,980,810 160,736,339 22,668,495 61,879,290 1.00% 29,515,428 -- 27,338,752 504,728 1,655,642 1.05% -- -- 1,796,840 -- -- 1.10% -- -- 1,087,855 -- -- 1.20% 19,761,772 -- 15,324,039 215,313 1,093,605 1.25% -- -- -- -- -- 1.25% -- -- 186,174 -- -- 1.30% -- -- 664,980 -- -- 1.45% -- -- 196,408 -- -- ----------- ---------- ------------ -------------- -------------- Total 327,755,194 19,071,743 445,093,220 54,174,360 142,097,812 ----------- ---------- ------------ -------------- --------------
JANUS ASPEN LAZARD LM PTNRS MFS MFS MID CAP GRO, RETIRE VAR SM CAP INV GRO STOCK, NEW DIS, PRICE LEVEL SERV INTL EQ, SERV GRO, CL II SERV CL SERV CL ----------- ------------- ------------ ------------ -------------- --------------- 0.55% 124,605 1,290,833 19,931 481,398 242,974 0.75% 29,698,706 86,802,157 966,347 100,533,141 51,187,924 0.85% -- -- 276,509 319,654 -- 0.95% 20,669,804 62,991,507 487,526 73,299,819 38,119,989 1.00% -- 6,555,287 197,250 8,627,921 5,363,080 1.05% -- -- 121,679 321,068 -- 1.10% -- -- 29,917 76,925 -- 1.20% -- 4,512,972 39,071 4,032,744 3,471,737 1.25% -- -- -- -- -- 1.25% -- -- 447 60,035 -- 1.30% -- -- 26,961 80,178 -- 1.45% -- -- 3,757 57,134 -- ----------- ---------- ------------ -------------- -------------- Total 50,493,115 162,152,756 2,169,395 187,890,017 98,385,704 ----------- ---------- ------------ -------------- --------------
MFS MFS NB AMT NB AMT SOC OPPEN TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, GLOBAL SEC VA, PRICE LEVEL SERV CL SERV CL CL S CL S SERV ----------- ------------- ------------ ------------ -------------- --------------- 0.55% 264,090 1,064,993 1,956,746 -- 1,308,819 0.75% 36,758,800 71,164,192 57,067,461 -- 51,514,307 0.85% 2,044,957 4,446,377 26,194,024 164,042 2,542,361 0.95% 23,114,484 45,868,755 26,517,435 -- 34,962,357 1.00% 12,057,258 8,230,754 9,305,434 -- 14,402,316 1.05% 1,087,171 2,966,733 12,040,988 124,130 2,157,957 1.10% 979,816 1,198,161 5,540,131 130,662 890,356 1.20% 9,804,865 6,302,025 4,470,552 -- 8,796,020 1.25% -- -- -- -- -- 1.25% 175,743 101,493 432,117 12,694 108,392 1.30% 793,240 1,005,381 3,205,380 29,457 662,904 1.45% 156,179 466,934 680,295 5,003 266,033 ----------- ---------- ------------ -------------- -------------- Total 87,236,603 142,815,798 147,410,563 465,988 117,611,822 ----------- ---------- ------------ -------------- --------------
RIVERSOURCE VARIABLE ACCOUNT 10 - 81
OPPEN OPPEN OPPEN PIMCO VIT PIONEER MAIN ST SM STRATEGIC VAL VA, ALL ASSET, EQ INC VCT, PRICE LEVEL CAP VA, SERV BOND VA, SERV SERV ADVISOR CL CL II ----------- ------------- ---------------- ------------- ------------- ------------- 0.55% 772,918 6,330,807 -- 4,104,841 81,259 0.75% 34,461,739 339,587,314 -- 154,198,774 24,624,030 0.85% 3,087,940 64,309,932 137,848 82,883,016 -- 0.95% 22,606,467 226,000,236 -- 76,066,930 15,916,708 1.00% 10,328,187 64,615,109 -- 26,857,150 4,900,864 1.05% 2,176,587 37,454,299 113,045 42,994,333 -- 1.10% 1,147,841 15,782,520 14,230 18,644,359 -- 1.20% 5,725,149 46,386,599 -- 14,860,316 2,541,319 1.25% -- -- -- -- -- 1.25% 132,928 3,210,529 24 1,767,021 -- 1.30% 714,521 12,933,908 98,164 12,824,595 -- 1.45% 230,787 3,973,545 6,439 2,480,505 -- ---------- ----------- ------- ------------- ------------- Total 81,385,064 820,584,798 369,750 437,681,840 48,064,180 ---------- ----------- ------- ------------- -------------
PIONEER PUT VT PUT VT PUT VT PUT VT INTL VAL VCT, HLTH SCIENCES, INTL EQ, INTL NEW OPP, NEW OPP, PRICE LEVEL CL II CL IB CL IB CL IB CL IA ----------- ------------- ---------------- ------------- ------------- ------------- 0.55% -- 195,450 163,698 131,363 -- 0.75% 4,722,680 25,848,193 34,316,452 40,789,981 -- 0.85% -- -- -- -- -- 0.95% 2,934,677 13,569,401 21,524,338 36,739,891 -- 1.00% 560,460 4,490,216 3,960,858 -- -- 1.05% -- -- -- -- -- 1.10% -- -- -- -- -- 1.20% 390,089 2,415,937 2,660,366 -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- 149,235,834 1.30% -- -- -- -- -- 1.45% -- -- -- -- -- --------- ---------- ---------- ---------- ----------- Total 8,607,906 46,519,197 62,625,712 77,661,235 149,235,834 --------- ---------- ---------- ---------- -----------
PUT VT VISTA, RVS VP RVS VP RVS VP RVS VP PRICE LEVEL CL IB BAL CASH MGMT CORE BOND DIV BOND ----------- ------------- ---------------- ------------- ------------- ------------- 0.55% 428,838 458,729 8,285,584 135,226 7,271,767 0.75% 42,808,188 89,308,660 258,492,344 24,861,420 511,099,531 0.85% -- 828,698 34,336,507 736,014 145,290,497 0.95% 34,608,610 74,221,233 211,743,526 22,500,949 351,043,294 1.00% 985,574 4,465,841 37,806,005 4,755,726 87,922,556 1.05% -- 692,263 30,300,455 1,312,601 82,280,554 1.10% -- 306,030 9,714,656 238,297 34,539,242 1.20% 705,565 3,763,794 33,401,179 4,584,557 60,502,220 1.25% -- 41,547(1) 2,340,126(1) -- 3,648,690(1) 1.25% -- 134,036,727(2) 58,182,822(2) 5,427 125,946,549(2) 1.30% -- 224,939 9,799,975 178,257 26,099,575 1.45% -- 350,042 7,384,845 96,168 5,707,582 ---------- ----------- ----------- ---------- ------------- Total 79,536,775 308,698,503 701,788,024 59,404,642 1,441,352,057 ---------- ----------- ----------- ---------- -------------
82 - RIVERSOURCE VARIABLE ACCOUNT 10
RVS VP RVS VP RVS VP RVS VP FUNDAMENTAL RVS VP GLOBAL INFLATION PRICE LEVEL DIV EQ INC EMER MKTS VAL GLOBAL BOND PROT SEC ----------- ------------- --------------- ----------- ------------- ------------------- 0.55% 9,433,555 2,144,247 3,665,664 2,645,026 2,958,734 0.75% 585,143,599 89,672,222 123,149,786 169,931,428 161,490,294 0.85% 93,935,678 18,149,619 64,828,901 41,688,631 53,227,657 0.95% 383,459,949 51,866,549 57,963,213 123,833,833 95,223,851 1.00% 75,610,297 9,829,353 20,638,832 26,715,768 31,047,803 1.05% 47,849,332 8,076,682 31,988,152 23,262,657 29,756,355 1.10% 20,717,041 3,634,427 14,137,601 9,734,530 12,575,126 1.20% 50,646,319 5,716,375 10,682,403 19,781,160 20,729,970 1.25% -- -- -- 1,822,788(1) -- 1.25% 2,080,458 296,962 1,144,136 43,931,324(2) 1,571,912 1.30% 14,023,151 2,130,127 8,956,577 7,409,402 9,303,271 1.45% 3,488,682 340,449 1,498,586 1,981,659 2,119,355 ------------- ------------- ----------- ----------- ------------- Total 1,286,388,061 191,857,012 338,653,851 472,738,206 420,004,328 ------------- ------------- ----------- ----------- -------------
RVS VP RVS VP RVS VP RVS VP RVS VP PRICE LEVEL GRO HI YIELD BOND INC OPP INTL OPP LG CAP EQ ----------- ------------- --------------- ----------- ------------- ------------------- 0.55% 6,048,911 1,925,043 2,358,057 1,342,662 2,452,612 0.75% 326,107,724 251,767,836 109,316,259 80,960,674 450,207,103 0.85% 1,470,087 6,215,163 49,975,315 1,285,391 461,266 0.95% 216,236,909 221,766,592 61,811,849 64,541,093 290,744,496 1.00% 24,725,121 27,180,076 21,051,879 5,986,062 27,941,768 1.05% 1,228,739 4,619,088 28,106,912 1,483,168 275,089 1.10% 366,618 1,111,087 11,996,447 490,021 129,412 1.20% 13,740,576 25,270,551 13,254,890 3,800,438 12,874,528 1.25% -- 162,765(1) -- 96,816(1) 17,363(1) 1.25% 64,487 107,466,841(2) 1,215,741 154,153,239(2) 364,571,050(2) 1.30% 219,950 1,204,670 8,699,837 265,725 207,026 1.45% 68,852 514,234 1,865,539 99,614 37,864 ------------- ------------- ----------- ----------- ------------- Total 590,277,974 649,203,946 309,652,725 314,504,903 1,149,919,577 ------------- ------------- ----------- ----------- -------------
RVS VP RVS VP RVS VP RVS VP RVS VP PRICE LEVEL LG CAP VAL MID CAP GRO MID CAP VAL S&P 500 SELECT VAL ----------- ------------- --------------- ----------- ------------- ------------------- 0.55% 183,882 450,401 2,575,177 1,170,399 76,960 0.75% 7,936,603 62,825,873 101,238,761 139,007,561 9,785,796 0.85% 285,433 338,071 50,392,562 1,079,384 106,823 0.95% 4,707,015 43,938,535 54,641,840 104,302,105 5,723,710 1.00% 1,123,960 4,675,975 15,321,049 13,131,671 1,490,478 1.05% 255,194 201,326 23,159,020 807,901 84,298 1.10% 24,007 159,842 10,320,271 234,820 60,675 1.20% 734,446 2,740,804 7,877,639 9,873,905 1,140,958 1.25% -- 27,906(1) -- -- -- 1.25% 3,232 84,782,820(2) 809,584 11,748 2,174 1.30% 20,169 43,907 6,289,458 360,953 31,995 1.45% 14,572 16,074 1,084,744 9,864 5,954 ------------- ------------- ----------- ----------- ------------- Total 15,288,513 200,201,534 273,710,105 269,990,311 18,509,821 ------------- ------------- ----------- ----------- -------------
RIVERSOURCE VARIABLE ACCOUNT 10 - 83
ROYCE RVS VP RVS VP RVS VP MICRO-CAP, THIRD AVE PRICE LEVEL SHORT DURATION SM CAP ADV SM CAP VAL INVEST CI VAL ----------- -------------- ----------- ------------ ----------- ----------- 0.55% 492,915 333,338 2,495,159 405,472 286,927 0.75% 125,729,311 49,720,694 126,637,468 20,156,442 28,765,150 0.85% 2,090,559 397,111 24,338,177 -- -- 0.95% 108,222,226 38,372,142 69,586,598 20,054,730 28,312,904 1.00% 16,152,998 4,827,090 19,282,629 -- -- 1.05% 1,510,540 343,986 10,682,062 -- -- 1.10% 368,956 53,946 4,782,936 -- -- 1.20% 15,464,384 3,357,800 10,437,218 -- -- 1.25% -- -- -- -- -- 1.25% 45,004 24,273 335,664 -- -- 1.30% 623,458 50,759 2,785,646 -- -- 1.45% 130,225 4,584 417,136 -- -- ----------- ----------- ------------ ---------- ---------- Total 270,830,576 97,485,723 271,780,693 40,616,644 57,364,981 ----------- ----------- ------------ ---------- ----------
VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL REAL MID CAP GRO, WANGER WANGER PRICE LEVEL CL II EST, CL II CL II INTL SM CAP U.S. SM CO ----------- -------------- ----------- ------------ ----------- ----------- 0.55% 4,891,626 1,472,972 1,068,492 3,470,829 3,852,397 0.75% 258,222,674 51,499,211 37,273,059 186,861,779 235,959,815 0.85% 67,894,879 21,963,563 17,765,657 23,902,873 9,755,968 0.95% 130,395,165 27,317,798 17,529,318 122,717,714 164,257,350 1.00% 60,771,308 8,885,573 6,372,186 21,366,564 42,371,525 1.05% 32,553,375 11,118,644 8,501,031 11,710,051 4,737,344 1.10% 14,779,148 5,009,935 3,807,366 5,175,780 2,525,157 1.20% 32,886,926 4,669,531 3,110,764 12,918,449 23,503,239 1.25% -- -- -- -- -- 1.25% 1,253,680 493,909 294,516 495,388 279,249 1.30% 9,512,173 3,387,322 2,328,254 3,489,818 1,994,656 1.45% 1,998,735 624,024 397,108 778,800 422,154 ----------- ----------- ------------ ----------- ----------- Total 615,159,689 136,442,482 98,447,751 392,888,045 489,658,854 ----------- ----------- ------------ ----------- -----------
WF ADV VT WF ADV VT WF ADV VT WF ADV VT PRICE LEVEL ASSET ALLOC INTL CORE OPP SM CAP GRO ----------- ----------- ---------- ---------- ---------- 0.55% 30,528 5,360 421,285 83,550 0.75% 40,046,485 8,087,616 36,471,495 25,726,131 0.85% -- -- 556,350 1,211,926 0.95% 29,214,909 6,051,660 21,391,060 17,654,810 1.00% 4,548,984 856,168 6,324,106 2,943,149 1.05% -- -- 327,227 853,691 1.10% -- -- 120,476 248,279 1.20% 2,159,338 403,482 3,081,296 1,527,402 1.25% -- -- -- -- 1.25% -- -- 6,522 65,187 1.30% -- -- 37,238 177,558 1.45% -- -- 9,367 73,949 ---------- ---------- ---------- ---------- Total 76,000,244 15,404,286 68,746,422 50,565,632 ---------- ---------- ---------- ----------
84 - RIVERSOURCE VARIABLE ACCOUNT 10 The following is a summary of net assets at Dec. 31, 2006:
AIM VI AIM VI AIM VI AIM VI AIM VI CAP APPR, CAP APPR, CAP DEV, CAP DEV, CORE EQ, PRICE LEVEL SER I SER II SER I SER II SER I ----------- ------------ ------------- ------------- --------------- ------------- 0.55% $ 396,612 $ 555,728 $ 407,668 $ 271,489 $ -- 0.75% 39,924,705 123,479,037 26,206,584 37,937,445 -- 0.85% -- 1,152,745 -- 792,844 -- 0.95% 34,350,077 62,244,880 26,546,099 21,342,768 -- 1.00% -- 22,832,442 -- 5,071,906 -- 1.05% -- 1,137,553 -- 633,140 -- 1.10% -- 172,596 -- 352,020 -- 1.20% -- 11,738,254 -- 3,102,805 -- 1.25% -- -- -- -- -- 1.25% -- 15,947 -- 36,063 396,958,020 1.30% -- 278,729 -- 276,733 -- 1.45% -- 104,042 -- 14,509 -- ------------ ------------- ------------- --------------- ------------- Total $ 74,671,394 $ 223,711,953 $ 53,160,351 $ 69,831,722 $ 396,958,020 ------------ ------------- ------------- --------------- -------------
AIM VI AIM VI AIM VI AIM VI AIM VI DYN, FIN SERV, FIN SERV, GLOBAL HLTH INTL GRO, PRICE LEVEL SER I SER I SER II CARE, SER II SER II ----------- ------------ ------------- ------------- --------------- ------------- 0.55% $ 13,439 $ 219,744 $ -- $ 1,142,597 $ 145,650 0.75% 9,236,557 16,668,284 -- 34,743,945 2,416,088 0.85% -- -- 813,841 18,426,299 750,623 0.95% 5,280,886 9,972,633 -- 15,574,323 1,656,753 1.00% 834,272 1,943,949 -- 5,211,070 695,342 1.05% -- -- 441,050 7,889,201 699,540 1.10% -- -- 108,110 3,733,150 120,953 1.20% 485,002 1,296,926 -- 2,518,145 368,670 1.25% -- -- -- -- -- 1.25% -- -- 28,766 220,245 26,096 1.30% -- -- 70,576 1,983,028 125,264 1.45% -- -- 133,650 239,731 17,711 ------------ ------------- ------------- --------------- ------------- Total $ 15,850,156 $ 30,101,536 $ 1,595,993 $ 91,681,734 $ 7,022,690 ------------ ------------- ------------- --------------- -------------
AIM VI AB VPS AB VPS AB VPS AB VPS TECH, GLOBAL TECH, GRO & INC, INTL VAL, LG CAP GRO, PRICE LEVEL SER I CL B CL B CL B CL B ----------- ------------ ------------- ------------- --------------- ------------- 0.55% $ 336,981 $ 745,456 $ 1,804,436 $ 9,169,630 $ -- 0.75% 20,316,790 16,085,423 175,804,897 512,163,382 -- 0.85% -- 7,465,580 2,273,100 41,098,512 379,024 0.95% 9,554,278 6,374,718 108,732,697 318,384,675 -- 1.00% 3,278,500 2,297,743 25,822,192 82,571,525 -- 1.05% -- 2,728,502 955,187 21,821,176 186,070 1.10% -- 1,316,482 594,190 10,417,662 121,785 1.20% 1,736,594 959,084 17,300,482 51,300,079 -- 1.25% -- -- -- -- -- 1.25% -- 76,005 85,227 1,085,372 13,156 1.30% -- 649,503 342,852 7,241,248 25,090 1.45% -- 49,838 75,964 1,933,665 4,785 ------------ ------------- ------------- --------------- ------------- Total $ 35,223,143 $ 38,748,334 $ 333,791,224 $ 1,057,186,926 $ 729,910 ------------ ------------- ------------- --------------- -------------
RIVERSOURCE VARIABLE ACCOUNT 10 - 85
AC VP AC VP AC VP AC VP AC VP INTL, INTL, MID CAP VAL, ULTRA, VAL, PRICE LEVEL CL I CL II CL II CL II CL I ----------- ------------- ------------- ------------- --------------- -------------- 0.55% $ 463,954 $ 530,545 $ -- $ 2,926,386 $ 1,414,532 0.75% 31,863,424 65,162,892 -- 78,387,315 88,795,880 0.85% -- -- 1,144,255 38,443,320 -- 0.95% 33,846,780 38,023,711 -- 35,093,146 87,260,412 1.00% -- 12,855,304 -- 12,806,904 -- 1.05% -- -- 1,301,085 16,806,793 -- 1.10% -- -- 288,832 7,592,736 -- 1.20% -- 6,819,279 -- 6,467,883 -- 1.25% -- -- -- -- -- 1.25% -- -- 87,677 527,759 449,680,397 1.30% -- -- 308,563 4,282,318 -- 1.45% -- -- 45,738 550,265 -- ------------- ------------- ------------- --------------- ------------- Total $ 66,174,158 $ 123,391,731 $ 3,176,150 $ 203,884,825 $ 627,151,221 ------------- ------------- ------------- --------------- -------------
AC VP COL COL MARSICO COL MARSICO VAL, CALVERT VS HI YIELD, GRO, INTL OPP, PRICE LEVEL CL II SOCIAL BAL VS CL B VS CL A VS CL B ----------- ------------- ------------- ------------- --------------- -------------- 0.55% $ 1,703,063 $ 20,284 $ 627,781 $ 2,901,599 $ 2,345,751 0.75% 216,435,790 27,959,099 51,568,663 124,532,616 63,339,632 0.85% 3,657,174 -- 2,675,476 52,993,517 27,691,753 0.95% 147,151,189 21,390,365 33,013,854 67,756,155 34,886,386 1.00% 38,110,722 4,105,923 12,923,599 21,538,131 10,500,051 1.05% 3,752,183 -- 2,199,126 27,601,664 13,553,694 1.10% 1,283,620 -- 636,730 12,594,741 6,408,907 1.20% 24,082,610 2,666,193 9,795,824 10,869,720 5,597,196 1.25% -- -- -- -- -- 1.25% 136,467 -- 179,205 1,213,300 569,118 1.30% 1,048,380 -- 622,747 8,123,498 4,207,887 1.45% 247,281 -- 308,834 1,629,256 897,570 ------------- ------------- ------------- --------------- ------------- Total $ 437,608,479 $ 56,141,864 $ 114,551,839 $ 331,754,197 $ 169,997,945 ------------- ------------- ------------- --------------- -------------
CS CS CS DREY VIF DREY VIF COMMODITY MID-CAP SM CAP INTL EQ, INTL VAL, PRICE LEVEL RETURN CORE CORE I SERV SERV ----------- ------------- ------------- ------------- --------------- -------------- 0.55% $ 1,555,134 $ 112,365 $ -- $ -- $ -- 0.75% 49,881,151 12,592,224 -- -- -- 0.85% 24,342,249 -- -- 867,022 802,487 0.95% 25,425,047 12,638,282 -- -- -- 1.00% 8,953,822 -- -- -- -- 1.05% 11,700,408 -- -- 394,888 252,626 1.10% 5,614,028 -- -- 221,015 120,599 1.20% 4,802,983 -- -- -- -- 1.25% -- -- -- -- -- 1.25% 748,873 -- 208,261,570 77,857 70,948 1.30% 3,483,766 -- -- 242,269 83,362 1.45% 710,407 -- -- 41,462 20,987 ------------- ------------- ------------- --------------- ------------- Total $ 137,217,868 $ 25,342,871 $ 208,261,570 $ 1,844,513 $ 1,351,009 ------------- ------------- ------------- --------------- -------------
86 - RIVERSOURCE VARIABLE ACCOUNT 10
EV VT EG VA EG VA FID VIP FID VIP FLOATING-RATE FUNDAMENTAL INTL EQ, CONTRAFUND, GRO & INC, PRICE LEVEL INC LG CAP, CL 2 CL 2 SERV CL 2 SERV CL ----------- ---------------- ------------- --------------- ------------- -------------- 0.55% $ 2,648,883 $ 63,355 $ 1,080,742 $ 6,807,635 $ 883,064 0.75% 106,968,493 17,025,952 30,620,431 252,179,934 106,498,025 0.85% 47,898,584 451,874 1,723,235 104,028,675 -- 0.95% 60,865,895 10,772,478 20,262,194 131,427,552 101,650,195 1.00% 19,362,265 2,283,483 9,579,432 41,342,874 -- 1.05% 27,824,502 282,686 910,014 52,752,753 -- 1.10% 11,779,868 94,838 472,369 23,808,424 -- 1.20% 12,530,766 1,567,286 6,416,330 20,954,135 -- 1.25% -- -- -- -- -- 1.25% 1,653,353 3,960 73,123 2,173,260 -- 1.30% 10,385,473 38,743 447,162 15,615,477 -- 1.45% 4,765,989 35,624 92,376 3,520,575 -- ---------------- ------------- --------------- ------------- ------------- Total $ 306,684,071 $ 32,620,279 $ 71,677,408 $ 654,611,294 $ 209,031,284 ---------------- ------------- --------------- ------------- -------------
FID VIP FID VIP FID VIP FID VIP FID VIP GRO & INC, MID CAP, MID CAP, OVERSEAS, OVERSEAS, PRICE LEVEL SERV CL 2 SERV CL SERV CL 2 SERV CL SERV CL 2 ----------- ---------------- ------------- --------------- ------------- -------------- 0.55% $ 2,073,012 $ 2,143,690 $ 8,352,063 $ 406,062 $ 1,875,240 0.75% 219,898,026 213,213,035 599,307,584 52,501,276 122,218,838 0.85% -- -- 39,431,856 -- 3,081,024 0.95% 141,437,896 197,938,892 356,622,477 49,590,978 85,689,664 1.00% 32,999,578 -- 105,299,518 -- 18,631,380 1.05% -- -- 19,668,652 -- 1,664,151 1.10% -- -- 8,874,331 -- 669,454 1.20% 20,746,670 -- 63,214,843 -- 13,279,849 1.25% -- -- -- -- -- 1.25% -- -- 897,320 -- 138,828 1.30% -- -- 5,925,073 -- 559,099 1.45% -- -- 1,253,165 -- 270,960 ---------------- ------------- --------------- ------------- ------------- Total $ 417,155,182 $ 413,295,617 $ 1,208,846,882 $ 102,498,316 $ 248,078,487 ---------------- ------------- --------------- ------------- -------------
FTVIPT FRANK FTVIPT FRANK FTVIPT FTVIPT FTVIPT GLOBAL REAL EST, SM CAP VAL, MUTUAL SHARES TEMP DEV MKTS TEMP FOR PRICE LEVEL CL 2 CL 2 SEC, CL 2 SEC, CL 1 SEC, CL 2 ----------- ---------------- ------------- --------------- ------------- -------------- 0.55% $ 2,742,604 $ 1,837,205 $ 1,322,394 $ -- $ 487,909 0.75% 415,198,640 193,548,269 137,115,177 -- 25,073,485 0.85% 7,836,174 4,620,844 6,616,858 -- -- 0.95% 259,795,962 133,306,420 95,310,127 -- 26,269,825 1.00% 49,143,657 26,130,426 35,416,040 -- -- 1.05% 3,836,459 2,627,321 4,895,062 -- -- 1.10% 1,256,238 978,162 3,316,480 -- -- 1.20% 31,756,175 16,284,936 21,793,076 -- -- 1.25% -- -- -- -- -- 1.25% 130,197 130,382 462,617 252,257,533 -- 1.30% 1,342,922 1,160,325 2,310,626 -- -- 1.45% 497,187 253,838 555,716 -- -- ---------------- ------------- --------------- ------------- ------------- Total $ 773,536,215 $ 380,878,128 $ 309,114,173 $ 252,257,533 $ 51,831,219 ---------------- ------------- --------------- ------------- -------------
RIVERSOURCE VARIABLE ACCOUNT 10 - 87
GS VIT GS VIT GS VIT JANUS ASPEN JANUS ASPEN MID CAP STRUCTD SM STRUCTD U.S. GLOBAL TECH, INTL GRO, PRICE LEVEL VAL, INST CAP EQ, INST EQ, INST SERV SERV ----------- ------------- ------------- ------------- -------------- --------------- 0.55% $ 6,334,248 $ 226,648 $ 2,972,991 $ 78,312 $ 313,858 0.75% 437,210,041 17,653,833 269,068,948 13,125,571 103,761,858 0.85% -- -- 4,561,526 -- -- 0.95% 296,153,296 19,391,666 184,414,135 9,663,278 82,158,026 1.00% 57,311,819 -- 37,772,914 546,043 3,873,543 1.05% -- -- 2,026,800 -- -- 1.10% -- -- 1,226,724 -- -- 1.20% 38,008,506 -- 20,966,824 230,507 2,534,272 1.25% -- -- -- -- -- 1.25% -- -- 209,780 -- -- 1.30% -- -- 749,097 -- -- 1.45% -- -- 221,120 -- -- ------------- ------------- ------------- -------------- -------------- Total $ 835,017,910 $ 37,272,147 $ 524,190,859 $ 23,643,711 $ 192,641,557 ------------- ------------- ------------- -------------- --------------
JANUS ASPEN LAZARD LM PTNRS MFS MFS MID CAP GRO, RETIRE VAR SM CAP INV GRO STOCK, NEW DIS, PRICE LEVEL SERV INTL EQ, SERV GRO, CL II SERV CL SERV CL ----------- ------------- ------------- ------------- -------------- --------------- 0.55% $ 76,050 $ 1,635,029 $ 23,444 $ 342,569 $ 244,716 0.75% 17,888,143 108,529,748 1,134,130 70,793,077 50,948,650 0.85% -- -- 308,506 351,283 -- 0.95% 12,293,934 77,773,893 570,830 50,926,374 37,430,912 1.00% -- 11,616,627 230,812 9,400,770 6,263,099 1.05% -- -- 135,721 352,475 -- 1.10% -- -- 33,331 84,422 -- 1.20% -- 7,966,542 45,633 4,351,683 4,014,706 1.25% -- -- -- -- -- 1.25% -- -- 583 65,866 -- 1.30% -- -- 30,006 87,899 -- 1.45% -- -- 4,263 62,588 -- ------------- ------------- ------------- -------------- -------------- Total $ 30,258,127 $ 207,521,839 $ 2,517,259 $ 136,819,006 $ 98,902,083 ------------- ------------- ------------- -------------- --------------
MFS MFS NB AMT NB AMT SOC OPPEN TOTAL RETURN, UTILITIES, INTL, RESPONSIVE, GLOBAL SEC VA, PRICE LEVEL SERV CL SERV CL CL S CL S SERV ----------- ------------- ------------- ------------- -------------- --------------- 0.55% $ 327,969 $ 1,915,781 $ 2,045,934 $ -- $ 2,006,343 0.75% 45,519,337 126,858,882 59,588,171 -- 78,596,988 0.85% 2,272,043 5,519,033 30,773,557 186,838 2,966,284 0.95% 28,452,679 80,816,760 27,651,767 -- 53,004,699 1.00% 14,774,937 18,098,386 9,700,399 -- 21,783,862 1.05% 1,206,587 3,678,630 14,131,278 141,228 2,515,277 1.10% 1,087,135 1,485,274 6,500,442 148,621 1,037,407 1.20% 11,943,501 13,722,795 4,653,825 -- 13,225,767 1.25% -- -- -- -- -- 1.25% 194,850 125,714 506,617 14,427 126,188 1.30% 879,265 1,244,989 3,757,065 33,471 771,591 1.45% 172,971 577,767 796,765 5,766 309,410 ------------- ------------- ------------- -------------- -------------- Total $ 106,831,274 $ 254,044,011 $ 160,105,820 $ 530,351 $ 176,343,816 ------------- ------------- ------------- -------------- --------------
88 - RIVERSOURCE VARIABLE ACCOUNT 10
OPPEN OPPEN OPPEN PIMCO VIT PIONEER MAIN ST SM STRATEGIC VAL VA, ALL ASSET, EQ INC VCT, PRICE LEVEL CAP VA, SERV BOND VA, SERV SERV ADVISOR CL CL II ----------- -------------- ------------------ --------------- ------------- ----------------- 0.55% $ 1,110,929 $ 7,363,732 $ -- $ 4,284,381 $ 118,371 0.75% 49,246,035 392,862,577 -- 160,726,746 35,670,310 0.85% 3,402,775 69,493,933 147,481 88,612,943 -- 0.95% 32,169,010 260,184,545 -- 79,181,459 22,721,008 1.00% 14,647,497 74,164,329 -- 27,947,671 7,322,148 1.05% 2,396,317 40,430,464 120,877 45,920,106 -- 1.10% 1,263,149 17,032,454 15,181 19,907,930 -- 1.20% 8,071,001 52,917,627 -- 15,442,861 3,759,466 1.25% -- -- -- -- -- 1.25% 146,165 3,462,122 106 1,885,316 -- 1.30% 785,513 13,943,554 105,016 13,679,407 -- 1.45% 253,504 4,280,390 6,957 2,643,852 -- -------------- ---------------- ------------- ------------- ----------------- Total $ 113,491,895 $ 936,135,727 $ 395,618 $ 460,232,672 $ 69,591,303 -------------- ---------------- ------------- ------------- -----------------
PIONEER PUT VT PUT VT PUT VT PUT VT INTL VAL VCT, HLTH SCIENCES, INTL EQ, INTL NEW OPP, NEW OPP, PRICE LEVEL CL II CL IB CL IB CL IB CL IA ----------- -------------- ------------------ --------------- ------------- ----------------- 0.55% $ 75 $ 219,796 $ 270,022 $ 163,099 $ -- 0.75% 4,755,577 28,772,136 55,959,736 49,966,964 -- 0.85% -- -- -- -- -- 0.95% 2,954,892 14,944,033 34,728,935 44,332,782 -- 1.00% 564,309 5,127,929 7,002,774 -- -- 1.05% -- -- -- -- -- 1.10% -- -- -- -- -- 1.20% 392,739 2,732,406 4,658,052 -- -- 1.25% -- -- -- -- -- 1.25% -- -- -- -- 223,046,745 1.30% -- -- -- -- -- 1.45% -- -- -- -- -- -------------- ---------------- ------------- ------------- ----------------- Total $ 8,667,592 $ 51,796,300 $ 102,619,519 $ 94,462,845 $ 223,046,745 -------------- ---------------- ------------- ------------- -----------------
PUT VT VISTA, RVS VP RVS VP RVS VP RVS VP PRICE LEVEL CL IB BAL CASH MGMT CORE BOND DIV BOND ----------- -------------- ------------------ --------------- ------------- ----------------- 0.55% $ 462,839 $ 572,436 $ 9,730,162 $ 144,309 $ 9,905,404 0.75% 45,651,373 110,460,422 299,202,778 26,384,756 687,974,698 0.85% -- 935,159 35,000,684 769,728 152,677,505 0.95% 36,347,767 91,160,418 241,641,787 23,749,073 465,542,687 1.00% 1,290,549 6,064,993 39,453,468 5,009,853 102,131,483 1.05% -- 780,397 30,854,680 1,371,315 86,376,120 1.10% -- 344,903 9,889,887 248,896 36,249,350 1.20% 915,039 5,038,142 34,516,760 4,800,783 69,656,282 1.25% -- 46,789(1) 2,380,459(1) -- 3,826,406(1) 1.25% -- 254,839,178(2) 73,932,448(2) 7,750 185,220,430(2) 1.30% -- 253,259 9,966,557 185,992 27,364,033 1.45% -- 393,799 7,504,572 100,266 5,979,522 -------------- ---------------- ------------- ------------- ----------------- Total $ 84,667,567 $ 470,889,895 $ 794,074,242 $ 62,772,721 $ 1,832,903,920 -------------- ---------------- ------------- ------------- -----------------
RIVERSOURCE VARIABLE ACCOUNT 10 - 89
RVS VP RVS VP RVS VP RVS VP FUNDAMENTAL RVS VP GLOBAL INFLATION PRICE LEVEL DIV EQ INC EMER MKTS VAL GLOBAL BOND PROT SEC ----------- -------------- ------------------ --------------- --------------- -------------------- 0.55% $ 17,279,055 $ 4,522,378 $ 4,012,589 $ 3,864,775 $ 3,124,374 0.75% 1,062,037,418 183,961,592 133,645,023 244,899,729 170,155,464 0.85% 106,001,307 24,393,631 72,450,108 43,914,793 54,982,435 0.95% 686,558,849 105,003,025 62,819,541 175,899,998 99,866,051 1.00% 137,347,805 26,583,635 22,361,254 36,953,220 32,520,288 1.05% 53,940,725 10,844,285 35,712,556 24,479,893 30,705,963 1.10% 23,348,296 4,878,551 15,779,561 10,241,239 12,973,014 1.20% 90,602,861 15,305,957 11,558,520 27,111,283 21,614,125 1.25% -- -- -- 1,916,210(1) -- 1.25% 2,342,897 398,314 1,276,034 67,849,473(2) 1,620,412 1.30% 15,787,993 2,856,377 9,986,661 7,787,109 9,587,843 1.45% 3,924,763 456,171 1,669,656 2,081,089 2,182,508 -------------- ---------------- ------------- ------------- ----------------- Total $2,199,171,969 $ 379,203,916 $ 371,271,503 $ 646,998,811 $ 439,332,477 -------------- ---------------- ------------- ------------- -----------------
RVS VP RVS VP RVS VP RVS VP RVS VP PRICE LEVEL GRO HI YIELD BOND INC OPP INTL OPP LG CAP EQ ----------- -------------- ------------------ --------------- --------------- -------------------- 0.55% $ 4,444,498 $ 2,681,665 $ 2,706,381 $ 1,531,883 $ 2,377,993 0.75% 239,619,968 346,407,147 124,971,444 91,240,158 432,032,585 0.85% 1,670,753 6,699,582 53,431,014 1,513,356 532,087 0.95% 156,386,403 300,865,578 70,301,695 71,729,883 275,763,731 1.00% 28,902,644 39,265,810 23,915,137 10,427,654 33,540,876 1.05% 1,395,047 4,974,067 30,019,731 1,744,425 317,001 1.10% 416,132 1,196,157 12,809,569 576,192 149,089 1.20% 15,918,340 36,401,673 14,988,998 6,556,061 16,621,146 1.25% -- 175,091(1) -- 113,752(1) 19,989(1) 1.25% 73,140 165,030,669(2) 1,297,150 233,762,284(2) 565,577,147(2) 1.30% 249,403 1,295,584 9,280,044 312,132 238,260 1.45% 78,012 552,621 1,988,441 116,924 43,545 -------------- ---------------- ------------- ------------- ----------------- Total $ 449,154,340 $ 905,545,644 $ 345,709,604 $ 419,624,704 $ 1,327,213,449 -------------- ---------------- ------------- ------------- -----------------
RVS VP RVS VP RVS VP RVS VP RVS VP PRICE LEVEL LG CAP VAL MID CAP GRO MID CAP VAL S&P 500 SELECT VAL ----------- -------------- ------------------ --------------- --------------- -------------------- 0.55% $ 4,305,250 $ 562,966 $ 3,530,888 $ 1,179,386 $ 3,987,558 0.75% 10,668,041 76,607,577 137,837,639 139,464,289 12,606,143 0.85% 332,265 355,797 55,084,221 1,234,115 117,897 0.95% 6,307,567 52,974,467 74,174,344 103,360,909 7,344,756 1.00% 1,499,552 5,809,918 20,779,488 17,068,452 1,905,830 1.05% 296,768 211,670 25,289,343 922,756 92,941 1.10% 27,910 168,006 11,266,680 268,136 66,879 1.20% 974,027 3,400,839 10,645,920 12,708,713 1,450,274 1.25% -- 29,309(1) -- -- -- 1.25% 3,842 81,824,623(2) 883,150 13,404 2,478 1.30% 23,426 46,103 6,859,240 411,740 35,230 1.45% 16,913 16,865 1,182,110 11,244 6,551 -------------- ---------------- ------------- ------------- ----------------- Total $ 24,455,561 $ 222,008,140 $ 347,533,023 $ 276,643,144 $ 27,616,537 -------------- ---------------- ------------- ------------- -----------------
90 - RIVERSOURCE VARIABLE ACCOUNT 10
ROYCE RVS VP RVS VP RVS VP MICRO-CAP, THIRD AVE PRICE LEVEL SHORT DURATION SM CAP ADV SM CAP VAL INVEST CI VAL ----------- -------------- ---------------- ------------- ------------- ----------------- 0.55% $ 630,285 $ 595,325 $ 4,799,764 $ 1,384,071 $ 987,095 0.75% 158,267,723 88,209,795 242,000,144 67,873,366 95,814,822 0.85% 2,156,852 435,974 27,363,488 -- -- 0.95% 134,172,153 66,938,910 131,687,085 66,725,252 92,764,467 1.00% 17,448,438 8,104,166 34,424,757 -- -- 1.05% 1,556,828 377,264 11,997,575 -- -- 1.10% 380,167 59,149 5,370,658 -- -- 1.20% 16,556,620 5,596,415 18,473,076 -- -- 1.25% -- -- -- -- -- 1.25% 46,335 26,595 376,619 -- -- 1.30% 641,741 55,598 3,124,717 -- -- 1.45% 133,942 5,100 467,551 -- -- -------------- ---------------- ------------- ------------- ----------------- Total $ 331,991,084 $ 170,404,291 $ 480,085,434 $ 135,982,689 $ 189,566,384 -------------- ---------------- ------------- ------------- -----------------
VANK LIT VANK UIF VANK UIF COMSTOCK, GLOBAL REAL MID CAP GRO, WANGER WANGER PRICE LEVEL CL II EST, CL II CL II INTL SM CAP U.S. SM CO ----------- -------------- ---------------- ------------- ------------- ----------------- 0.55% $ 6,740,922 $ 1,807,289 $ 1,058,133 $ 8,007,305 $ 7,393,835 0.75% 353,792,393 63,101,185 36,861,607 425,161,641 446,266,704 0.85% 77,029,759 28,227,439 19,208,919 29,664,108 10,543,262 0.95% 177,600,030 33,428,600 17,312,723 275,214,511 306,481,955 1.00% 82,631,299 10,869,669 6,291,287 57,818,504 70,376,739 1.05% 36,895,303 14,274,891 9,182,754 14,518,245 5,114,781 1.10% 16,746,131 6,431,037 4,111,732 6,415,375 2,725,289 1.20% 44,471,643 5,704,468 3,067,026 34,618,129 38,674,886 1.25% -- -- -- -- -- 1.25% 1,419,415 633,518 317,803 613,565 301,124 1.30% 10,766,891 4,343,452 2,511,656 4,321,033 2,150,504 1.45% 2,260,654 799,589 428,147 963,569 454,779 -------------- ---------------- ------------- ------------- ----------------- Total $ 810,354,440 $ 169,621,137 $ 100,351,787 $ 857,315,985 $ 890,483,858 -------------- ---------------- ------------- ------------- -----------------
WF ADV VT WF ADV VT WF ADV VT WF ADV VT PRICE LEVEL ASSET ALLOC INTL CORE OPP SM CAP GRO ----------- ---------------- ------------- ------------- --------------- 0.55% $ 39,483 $ 6,927 $ 579,798 $ 99,900 0.75% 51,364,862 10,322,793 49,718,496 30,412,145 0.85% -- -- 620,600 1,388,286 0.95% 37,065,972 7,637,799 28,844,924 20,653,559 1.00% 6,067,727 1,267,856 8,884,740 3,979,468 1.05% -- -- 364,618 976,667 1.10% -- -- 134,207 283,974 1.20% 2,852,053 591,417 4,286,498 2,044,841 1.25% -- -- -- -- 1.25% -- -- 7,259 74,501 1.30% -- -- 41,441 202,868 1.45% -- -- 10,416 84,427 ---------------- ------------- ------------- --------------- Total $ 97,390,097 $ 19,826,792 $ 93,492,997 $ 60,200,636 ---------------- ------------- ------------- ---------------
(1) Applicable to RAVA 4 Advantage, RAVA 4 Select and RAVA 4 Access products only. (2) Applicable to FPA product only. RIVERSOURCE VARIABLE ACCOUNT 10 - 91 9. FINANCIAL HIGHLIGHTS The following is a summary for each period in the five year period ended Dec. 31, 2006 of units, net assets and investment income ratios in addition to the accumulation unit values, total returns and expense ratios for variable annuity contracts with the highest and lowest expense. Some of these subaccounts only offer one price level.
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 ------------------------------------------ ------------------------------------------------------------ UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) ------- ----------------------- ---------- --------------- -------------------- ----------------------- AIM VI CAP APPR, SER I 2006 72,809 $1.05 to $1.02 $ 74,671 0.05% 0.55% to 0.95% 5.72% to 5.30% 2005 80,703 $0.99 to $0.96 $ 78,514 0.06% 0.55% to 0.95% 8.24% to 7.81% 2004 86,822 $0.91 to $0.89 $ 78,248 -- 0.55% to 0.95% 6.04% to 5.62% 2003 89,596 $0.86 to $0.85 $ 76,360 -- 0.55% to 0.95% 28.36% to 28.79% 2002 96,660 $0.67 to $0.66 $ 64,136 -- 0.55% to 0.95% (24.72%) to (25.00%) AIM VI CAP APPR, SER II 2006 198,366 $1.14 to $1.08 $223,712 -- 0.55% to 1.45% 5.48% to 8.06%(13) 2005 236,683 $1.08 to $1.12 $254,026 -- 0.55% to 1.20% 7.98% to 7.29% 2004 69,240 $1.00 to $1.04 $ 68,891 -- 0.55% to 1.20% 5.75% to 5.07% 2003 34,679 $0.94 to $0.99 $ 32,607 -- 0.55% to 1.20% 28.77% to 26.92% 2002 19,767 $0.73 to $0.78 $ 14,483 -- 0.55% to 1.20% (25.51%) to (22.00%)(4) AIM VI CAP DEV, SER I 2006 28,272 $1.92 to $1.86 $ 53,160 -- 0.55% to 0.95% 15.88% to 15.42% 2005 32,971 $1.66 to $1.62 $ 53,665 -- 0.55% to 0.95% 9.01% to 8.57% 2004 38,648 $1.52 to $1.49 $ 57,869 -- 0.55% to 0.95% 14.87% to 14.41% 2003 41,077 $1.32 to $1.30 $ 53,706 -- 0.55% to 0.95% 34.69% to 34.02% 2002 45,062 $0.98 to $0.97 $ 43,896 -- 0.55% to 0.95% (22.22%) to (22.40%) AIM VI CAP DEV, SER II 2006 48,026 $1.48 to $1.10 $ 69,832 -- 0.55% to 1.45% 15.62% to 9.49%(13) 2005 42,661 $1.28 to $1.32 $ 54,342 -- 0.55% to 1.20% 8.67% to 7.97% 2004 36,244 $1.18 to $1.22 $ 42,616 -- 0.55% to 1.20% 14.64% to 13.89% 2003 20,527 $1.03 to $1.07 $ 21,116 -- 0.55% to 1.20% 33.77% to 33.75% 2002 12,985 $0.77 to $0.80 $ 9,976 -- 0.55% to 1.20% (21.43%) to (20.00%)(4) AIM VI CORE EQ, SER I 2006 199,591 $1.98 to $1.98 $396,958 0.49% 1.25% to 1.25% 15.26% to 15.26% 2005 281,112 $1.72 to $1.72 $484,439 1.38% 1.25% to 1.25% 4.01% to 4.01% 2004 351,566 $1.65 to $1.65 $582,105 0.96% 1.25% to 1.25% 7.62% to 7.62% 2003 385,662 $1.53 to $1.53 $593,291 1.01% 1.25% to 1.25% 22.40% to 22.40% 2002 422,060 $1.25 to $1.25 $528,240 0.31% 1.25% to 1.25% (16.67%) to (16.67%) AIM VI DYN, SER I 2006 12,477 $1.28 to $1.36 $ 15,850 -- 0.55% to 1.20% 15.48% to 14.73% 2005 14,869 $1.11 to $1.19 $ 16,410 -- 0.55% to 1.20% 10.12% to 9.40% 2004 17,584 $1.01 to $1.08 $ 17,670 -- 0.55% to 1.20% 12.72% to 11.99% 2003 19,140 $0.89 to $0.97 $ 17,089 -- 0.55% to 1.20% 36.92% to 36.62% 2002 12,409 $0.65 to $0.71 $ 8,087 -- 0.55% to 1.20% (32.29%) to (29.00%)(4) AIM VI FIN SERV, SER I 2006 21,798 $1.39 to $1.43 $ 30,102 1.72% 0.55% to 1.20% 15.81% to 15.06% 2005 19,311 $1.20 to $1.25 $ 23,108 1.42% 0.55% to 1.20% 5.33% to 4.65% 2004 19,444 $1.14 to $1.19 $ 22,147 0.80% 0.55% to 1.20% 8.08% to 7.38% 2003 15,907 $1.06 to $1.11 $ 16,818 0.64% 0.55% to 1.20% 29.27% to 27.59% 2002 10,257 $0.82 to $0.87 $ 8,431 1.01% 0.55% to 1.20% (15.46%) to (13.00%)(4)
92 - RIVERSOURCE VARIABLE ACCOUNT 10
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 ------------------------------------------ --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) ------- ----------------------- ---------- --------------- -------------------- -------------------------- AIM VI FIN SERV, SER II 2006 1,364 $ 1.17 to $ 1.17 $ 1,596 6.35% 0.85% to 1.45% 16.10%(13) to 15.74%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- AIM VI GLOBAL HLTH CARE, SER II 2006 87,789 $ 1.03 to $ 1.08 $ 91,682 -- 0.55% to 1.45% 3.11%(12) to 8.12%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- AIM VI INTL GRO, SER II 2006 5,226 $ 1.39 to $ 1.23 $ 7,023 1.97% 0.55% to 1.45% 27.18% to 22.52%(13) 2005 247 $ 1.09 to $ 1.09 $ 269 4.53% 0.55% to 1.20% 8.28%(10) to 8.17%(10) 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- AIM VI TECH, SER I 2006 43,391 $ 0.81 to $ 0.92 $ 35,223 -- 0.55% to 1.20% 9.88% to 9.17% 2005 54,315 $ 0.73 to $ 0.84 $ 40,261 -- 0.55% to 1.20% 1.61% to 0.96% 2004 25,352 $ 0.72 to $ 0.83 $ 18,466 -- 0.55% to 1.20% 4.06% to 3.38% 2003 14,615 $ 0.69 to $ 0.80 $ 10,252 -- 0.55% to 1.20% 43.75% to 42.86% 2002 6,964 $ 0.48 to $ 0.56 $ 3,364 -- 0.55% to 1.20% (47.25%) to (44.00%)(4) AB VPS GLOBAL TECH, CL B 2006 33,897 $ 1.14 to $ 1.15 $ 38,748 -- 0.55% to 1.45% 7.79% to 14.78%(13) 2005 3,446 $ 1.06 to $ 1.06 $ 3,648 -- 0.55% to 1.20% 5.87%(10) to 5.76%(10) 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- AB VPS GRO & INC, CL B 2006 255,691 $ 1.31 to $ 1.17 $ 333,791 1.18% 0.55% to 1.45% 16.34% to 16.48%(13) 2005 277,477 $ 1.13 to $ 1.20 $ 312,799 1.25% 0.55% to 1.20% 4.02% to 3.35% 2004 229,828 $ 1.09 to $ 1.16 $ 249,752 0.71% 0.55% to 1.20% 10.61% to 9.90% 2003 154,064 $ 0.98 to $ 1.05 $ 151,663 0.79% 0.55% to 1.20% 30.67% to 29.63% 2002 80,843 $ 0.75 to $ 0.81 $ 60,725 0.50% 0.55% to 1.20% (22.68%) to (19.00%)(4) AB VPS INTL VAL, CL B 2006 453,282 $ 2.55 to $ 1.24 $1,057,187 1.25% 0.55% to 1.45% 34.38% to 23.04%(13) 2005 292,660 $ 1.90 to $ 1.92 $ 551,186 0.47% 0.55% to 1.20% 15.88% to 15.13% 2004 135,770 $ 1.64 to $ 1.67 $ 221,322 0.41% 0.55% to 1.20% 24.21% to 23.40% 2003 68,730 $ 1.32 to $ 1.35 $ 90,422 0.27% 0.55% to 1.20% 43.48% to 42.11% 2002 24,977 $ 0.92 to $ 0.95 $ 23,004 0.10% 0.55% to 1.20% (6.12%) to (5.00%)(4) AB VPS LG CAP GRO, CL B 2006 667 $ 1.10 to $ 1.09 $ 730 -- 0.85% to 1.45% 8.99%(13) to 8.66%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- --
RIVERSOURCE VARIABLE ACCOUNT 10 - 93
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 ------------------------------------------ --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) ------- ----------------------- ---------- --------------- -------------------- -------------------------- AC VP INTL, CL I 2006 51,286 $1.32 to $1.28 $ 66,174 1.64% 0.55% to 0.95% 24.34% to 23.85% 2005 58,674 $1.06 to $1.03 $ 61,060 1.15% 0.55% to 0.95% 12.63% to 12.19% 2004 59,554 $0.94 to $0.92 $ 55,192 0.54% 0.55% to 0.95% 14.29% to 13.84% 2003 57,923 $0.82 to $0.81 $ 47,110 0.73% 0.55% to 0.95% 24.24% to 22.73% 2002 59,024 $0.66 to $0.66 $ 38,901 0.78% 0.55% to 0.95% (21.43%) to (20.48%) AC VP INTL, CL II 2006 84,429 $1.45 to $1.63 $123,392 1.41% 0.55% to 1.20% 24.06% to 23.26% 2005 82,367 $1.17 to $1.32 $ 97,265 0.91% 0.55% to 1.20% 12.49% to 11.76% 2004 63,756 $1.04 to $1.18 $ 66,949 0.34% 0.55% to 1.20% 14.14% to 13.41% 2003 40,971 $0.91 to $1.04 $ 37,680 0.48% 0.55% to 1.20% 22.97% to 22.35% 2002 21,225 $0.74 to $0.85 $ 15,745 0.41% 0.55% to 1.20% (20.43%) to (15.00%)(4) AC VP MID CAP VAL, CL II 2006 2,743 $1.16 to $1.16 $ 3,176 2.31% 0.85% to 1.45% 15.32%(13) to 14.97%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- AC VP ULTRA, CL II 2006 202,331 $1.00 to $1.04 $203,885 -- 0.55% to 1.45% (3.92%) to 3.52%(13) 2005 18,578 $1.04 to $1.04 $ 19,240 -- 0.55% to 1.20% 3.73%(10) to 3.62%(10) 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- AC VP VAL, CL I 2006 258,018 $1.89 to $2.75 $627,151 1.48% 0.55% to 1.25% 18.00% to 17.18% 2005 341,956 $1.61 to $2.35 $722,148 0.87% 0.55% to 1.25% 4.46% to 3.73% 2004 348,194 $1.54 to $2.27 $713,848 0.97% 0.55% to 1.25% 13.71% to 12.92% 2003 324,528 $1.35 to $2.01 $587,978 1.05% 0.55% to 1.25% 27.36% to 27.22% 2002 313,518 $1.06 to $1.58 $445,941 0.83% 0.55% to 1.25% (12.40%) to (13.66%) AC VP VAL, CL II 2006 279,304 $1.61 to $1.16 $437,608 1.20% 0.55% to 1.45% 17.82% to 15.39%(13) 2005 281,618 $1.36 to $1.32 $378,826 0.64% 0.55% to 1.20% 4.28% to 3.61% 2004 210,265 $1.31 to $1.27 $272,314 0.73% 0.55% to 1.20% 13.55% to 12.81% 2003 141,163 $1.15 to $1.13 $161,583 0.78% 0.55% to 1.20% 27.78% to 26.97% 2002 78,736 $0.90 to $0.89 $ 70,747 0.43% 0.55% to 1.20% (13.46%) to (11.00%)(4) CALVERT VS SOCIAL BAL 2006 49,741 $1.13 to $1.24 $ 56,142 2.32% 0.55% to 1.20% 8.18% to 7.48% 2005 48,625 $1.05 to $1.16 $ 50,853 1.93% 0.55% to 1.20% 5.07% to 4.39% 2004 42,435 $1.00 to $1.11 $ 42,296 1.96% 0.55% to 1.20% 7.66% to 6.97% 2003 31,464 $0.93 to $1.04 $ 29,107 2.40% 0.55% to 1.20% 19.23% to 18.18% 2002 19,780 $0.78 to $0.88 $ 15,389 3.65% 0.55% to 1.20% (12.36%) to (12.00%)(4) COL HI YIELD, VS CL B 2006 106,859 $1.07 to $1.08 $114,552 3.44% 0.55% to 1.45% 7.36%(11) to 8.13%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- --
94 - RIVERSOURCE VARIABLE ACCOUNT 10
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 ------------------------------------------ --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) ------- ----------------------- ---------- --------------- -------------------- -------------------------- COL MARSICO GRO, VS CL A 2006 317,946 $1.02 to $1.09 $331,754 -- 0.55% to 1.45% 2.95%(12) to 8.65%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- COL MARSICO INTL OPP, VS CL B 2006 153,627 $1.07 to $1.20 $169,998 0.53% 0.55% to 1.45% 6.74%(12) to 19.72%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- CS COMMODITY RETURN 2006 139,243 $0.97 to $1.01 $137,218 4.43% 0.55% to 1.45% (4.10%)(12) to 0.65%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- CS MID-CAP CORE 2006 19,843 $1.30 to $1.27 $ 25,343 -- 0.55% to 0.95% 1.34% to 0.93% 2005 25,218 $1.29 to $1.26 $ 31,881 -- 0.55% to 0.95% 6.39% to 5.97% 2004 30,758 $1.21 to $1.18 $ 36,657 -- 0.55% to 0.95% 12.50% to 12.05% 2003 34,940 $1.08 to $1.06 $ 37,126 -- 0.55% to 0.95% 44.00% to 43.24% 2002 38,546 $0.75 to $0.74 $ 28,797 -- 0.55% to 0.95% (29.91%) to (30.19%) CS SM CAP CORE I 2006 148,638 $1.40 to $1.40 $208,262 -- 1.25% to 1.25% 3.47% to 3.47% 2005 226,170 $1.35 to $1.35 $305,959 -- 1.25% to 1.25% (3.88%) to (3.88%) 2004 295,070 $1.40 to $1.40 $415,056 -- 1.25% to 1.25% 9.49% to 9.49% 2003 313,370 $1.28 to $1.28 $402,465 -- 1.25% to 1.25% 47.13% to 47.13% 2002 314,849 $0.87 to $0.87 $275,569 -- 1.25% to 1.25% (34.59%) to (34.59%) DREY VIF INTL EQ, SERV 2006 1,560 $1.18 to $1.18 $ 1,845 -- 0.85% to 1.45% 18.06%(13) to 17.70%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- DREY VIF INTL VAL, SERV 2006 1,167 $1.16 to $1.16 $ 1,351 -- 0.85% to 1.45% 15.81%(13) to 15.45%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- EV VT FLOATING- RATE INC 2006 298,230 $1.03 to $1.02 $306,684 6.14% 0.55% to 1.45% 3.18%(12) to 2.50%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- --
RIVERSOURCE VARIABLE ACCOUNT 10 - 95
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 ------------------------------------------ --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) ------- ----------------------- ---------- --------------- -------------------- -------------------------- EG VA FUNDAMENTAL LG CAP, CL 2 2006 28,846 $1.13 to $1.12 $ 32,620 0.98% 0.55% to 1.45% 11.78% to 11.31%(13) 2005 30,155 $1.01 to $1.10 $ 30,645 0.82% 0.55% to 1.20% 8.15% to 7.45% 2004 23,448 $0.94 to $1.02 $ 22,145 1.06% 0.55% to 1.20% 8.33% to 7.63% 2003 18,707 $0.86 to $0.95 $ 16,343 6.60% 0.55% to 1.20% 3.61%(6) to 4.40%(6) 2002 -- -- -- -- -- -- -- -- -- EG VA INTL EQ, CL 2 2006 45,619 $1.62 to $1.17 $ 71,677 3.71% 0.55% to 1.45% 22.21% to 16.75%(13) 2005 33,531 $1.32 to $1.31 $ 44,080 3.25% 0.55% to 1.20% 15.04% to 14.30% 2004 8,450 $1.15 to $1.14 $ 9,684 2.51% 0.55% to 1.20% 16.83%(7) to 16.14%(7) 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- FID VIP CONTRAFUND, SERV CL 2 2006 622,501 $1.03 to $1.09 $ 654,611 1.75% 0.55% to 1.45% 3.50%(12) to 8.94%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- FID VIP GRO & INC, SERV CL 2006 182,343 $1.17 to $1.14 $ 209,031 0.85% 0.55% to 0.95% 12.39% to 11.95% 2005 216,583 $1.04 to $1.01 $ 221,496 1.50% 0.55% to 0.95% 6.94% to 6.51% 2004 251,135 $0.97 to $0.95 $ 241,008 0.79% 0.55% to 0.95% 5.18% to 4.76% 2003 245,972 $0.92 to $0.91 $ 225,087 1.06% 0.55% to 0.95% 22.67% to 22.97% 2002 226,422 $0.75 to $0.74 $ 168,931 1.28% 0.55% to 0.95% (17.58%) to (17.78%) FID VIP GRO & INC, SERV CL 2 2006 329,942 $1.28 to $1.28 $ 417,155 0.71% 0.55% to 1.20% 12.24% to 11.51% 2005 358,054 $1.14 to $1.15 $ 404,610 1.30% 0.55% to 1.20% 6.81% to 6.12% 2004 353,479 $1.06 to $1.09 $ 375,117 0.64% 0.55% to 1.20% 4.95% to 4.27% 2003 228,596 $1.01 to $1.04 $ 231,686 0.66% 0.55% to 1.20% 21.69% to 22.35% 2002 92,339 $0.83 to $0.85 $ 76,486 0.57% 0.55% to 1.20% (17.00%) to (15.00%)(4) FID VIP MID CAP, SERV CL 2006 131,594 $3.20 to $3.11 $ 413,296 0.26% 0.55% to 0.95% 11.97% to 11.53% 2005 144,212 $2.86 to $2.79 $ 405,434 1.62% 0.55% to 0.95% 17.56% to 17.09% 2004 147,113 $2.43 to $2.38 $ 352,910 -- 0.55% to 0.95% 24.09% to 23.59% 2003 138,655 $1.96 to $1.93 $ 268,769 0.31% 0.55% to 0.95% 38.03% to 37.86% 2002 132,332 $1.42 to $1.40 $ 186,627 0.85% 0.55% to 0.95% (10.69%) to (10.83%) FID VIP MID CAP, SERV CL 2 2006 624,914 $2.08 to $1.09 $1,208,847 0.16% 0.55% to 1.45% 11.79% to 8.10%(13) 2005 496,239 $1.86 to $1.76 $ 908,519 1.41% 0.55% to 1.20% 17.37% to 16.61% 2004 356,492 $1.59 to $1.51 $ 558,130 -- 0.55% to 1.20% 23.97% to 23.17% 2003 207,277 $1.28 to $1.23 $ 262,748 0.18% 0.55% to 1.20% 37.63% to 36.67% 2002 94,048 $0.93 to $0.90 $ 87,109 0.33% 0.55% to 1.20% (10.58%) to (10.00%)(4) FID VIP OVERSEAS, SERV CL 2006 76,349 $1.37 to $1.33 $ 102,498 0.78% 0.55% to 0.95% 17.30% to 16.84% 2005 81,957 $1.16 to $1.14 $ 93,982 0.57% 0.55% to 0.95% 18.32% to 17.85% 2004 86,132 $0.98 to $0.96 $ 83,695 0.96% 0.55% to 0.95% 12.86% to 12.41% 2003 66,234 $0.87 to $0.86 $ 57,249 0.74% 0.55% to 0.95% 42.62% to 43.33% 2002 62,136 $0.61 to $0.60 $ 37,840 0.70% 0.55% to 0.95% (20.78%) to (22.08%)
96 - RIVERSOURCE VARIABLE ACCOUNT 10
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 ------------------------------------------ --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) ------- ----------------------- ---------- --------------- -------------------- -------------------------- FID VIP OVERSEAS, SERV CL 2 2006 151,362 $1.66 to $1.16 $248,078 0.65% 0.55% to 1.45% 17.13% to 15.34%(13) 2005 136,453 $1.42 to $1.53 $193,596 0.49% 0.55% to 1.20% 18.13% to 17.37% 2004 122,929 $1.20 to $1.31 $147,870 0.73% 0.55% to 1.20% 12.68% to 11.95% 2003 58,124 $1.06 to $1.17 $ 62,227 0.34% 0.55% to 1.20% 41.33% to 40.96% 2002 24,767 $0.75 to $0.83 $ 18,666 0.35% 0.55% to 1.20% (21.05%) to (17.00%)(4) FTVIPT FRANK GLOBAL REAL EST, CL 2 2006 257,421 $3.27 to $1.20 $773,536 2.06% 0.55% to 1.45% 19.92% to 19.66%(13) 2005 266,642 $2.73 to $1.97 $690,004 1.39% 0.55% to 1.20% 12.85% to 12.12% 2004 230,881 $2.42 to $1.76 $533,004 1.86% 0.55% to 1.20% 31.08% to 30.23% 2003 166,493 $1.85 to $1.35 $296,754 2.44% 0.55% to 1.20% 35.04% to 33.66% 2002 109,989 $1.37 to $1.01 $147,218 2.57% 0.55% to 1.20% 1.48% to 1.00%(4) FTVIPT FRANK SM CAP VAL, CL 2 2006 166,830 $2.49 to $1.09 $380,878 0.64% 0.55% to 1.45% 16.34% to 7.75%(13) 2005 156,167 $2.14 to $1.57 $316,893 0.75% 0.55% to 1.20% 8.17% to 7.47% 2004 118,566 $1.98 to $1.46 $224,252 0.18% 0.55% to 1.20% 23.07% to 22.27% 2003 87,363 $1.61 to $1.20 $135,426 0.21% 0.55% to 1.20% 31.97% to 30.43% 2002 57,262 $1.22 to $0.92 $ 68,337 0.37% 0.55% to 1.20% (9.63%) to (8.00%)(4) FTVIPT MUTUAL SHARES SEC, CL 2 2006 207,209 $1.53 to $1.15 $309,114 1.28% 0.55% to 1.45% 17.73% to 13.33%(13) 2005 151,140 $1.30 to $1.34 $196,107 0.87% 0.55% to 1.20% 9.95% to 9.24% 2004 99,871 $1.18 to $1.22 $118,373 0.76% 0.55% to 1.20% 12.02% to 11.29% 2003 58,929 $1.05 to $1.10 $ 62,601 0.96% 0.55% to 1.20% 23.53% to 23.60% 2002 23,376 $0.85 to $0.89 $ 19,872 0.75% 0.55% to 1.20% (12.37%) to (11.00%)(4) FTVIPT TEMP DEV MKTS SEC, CL 1 2006 179,403 $1.40 to $1.40 $252,258 1.27% 1.25% to 1.25% 26.84% to 26.84% 2005 254,244 $1.10 to $1.10 $281,629 1.43% 1.25% to 1.25% 26.18% to 26.18% 2004 274,586 $0.88 to $0.88 $240,781 1.92% 1.25% to 1.25% 23.28% to 23.28% 2003 272,504 $0.71 to $0.71 $193,809 1.36% 1.25% to 1.25% 51.06% to 51.06% 2002 273,087 $0.47 to $0.47 $127,911 1.62% 1.25% to 1.25% 0.00% to 0.00% FTVIPT TEMP FOR SEC, CL 2 2006 30,344 $1.73 to $1.69 $ 51,831 1.25% 0.55% to 0.95% 20.78% to 20.30% 2005 36,373 $1.43 to $1.41 $ 51,495 1.18% 0.55% to 0.95% 9.57% to 9.13% 2004 31,651 $1.30 to $1.29 $ 41,042 1.04% 0.55% to 0.95% 17.88% to 17.41% 2003 24,004 $1.11 to $1.10 $ 26,415 1.67% 0.55% to 0.95% 32.14% to 30.95% 2002 18,138 $0.84 to $0.84 $ 15,223 2.32% 0.55% to 0.95% (16.00%)(5) to (16.00%)(5) GS VIT MID CAP VAL, INST 2006 327,755 $2.71 to $1.92 $835,018 0.90% 0.55% to 1.20% 15.53% to 14.78% 2005 345,787 $2.34 to $1.68 $765,494 0.70% 0.55% to 1.20% 12.21% to 11.48% 2004 226,018 $2.09 to $1.50 $451,843 0.70% 0.55% to 1.20% 25.19% to 24.38% 2003 162,339 $1.67 to $1.21 $261,988 1.08% 0.55% to 1.20% 27.48% to 27.37% 2002 109,427 $1.31 to $0.95 $140,030 1.38% 0.55% to 1.20% (5.07%) to (5.00%)(4) GS VIT STRUCTD SM CAP EQ, INST 2006 19,072 $2.00 to $1.94 $ 37,272 0.61% 0.55% to 0.95% 11.66% to 11.21% 2005 23,432 $1.79 to $1.74 $ 41,091 0.23% 0.55% to 0.95% 5.49% to 5.07% 2004 26,859 $1.69 to $1.66 $ 44,779 0.19% 0.55% to 0.95% 15.69% to 15.23% 2003 29,916 $1.46 to $1.44 $ 43,240 0.24% 0.55% to 0.95% 44.55% to 44.00% 2002 32,164 $1.01 to $1.00 $ 32,114 0.26% 0.55% to 0.95% (15.13%) to (15.25%)
RIVERSOURCE VARIABLE ACCOUNT 10 - 97
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 ------------------------------------------ --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) ------- ----------------------- ---------- --------------- -------------------- -------------------------- GS VIT STRUCTD U.S. EQ, INST 2006 445,093 $1.18 to $1.13 $524,191 1.05% 0.55% to 1.45% 12.27% to 11.89%(13) 2005 467,555 $1.05 to $1.23 $492,636 1.00% 0.55% to 1.20% 5.93% to 5.24% 2004 253,878 $0.99 to $1.17 $251,604 1.38% 0.55% to 1.20% 14.31% to 13.57% 2003 169,762 $0.87 to $1.03 $146,765 0.79% 0.55% to 1.20% 29.85% to 28.75% 2002 150,534 $0.67 to $0.80 $101,100 0.61% 0.55% to 1.20% (22.99%) to (20.00%)(4) JANUS ASPEN GLOBAL TECH, SERV 2006 54,174 $0.43 to $1.07 $ 23,644 -- 0.55% to 1.20% 7.24% to 6.54% 2005 57,634 $0.41 to $1.01 $ 23,479 -- 0.55% to 1.20% 10.94% to 10.22% 2004 65,787 $0.37 to $0.91 $ 24,174 -- 0.55% to 1.20% 0.02% to (0.63%) 2003 71,812 $0.37 to $0.92 $ 26,415 -- 0.55% to 1.20% 48.00% to 46.03% 2002 69,076 $0.25 to $0.63 $ 17,299 -- 0.55% to 1.20% (41.86%) to (37.00%)(4) JANUS ASPEN INTL GRO, SERV 2006 142,098 $1.36 to $2.32 $192,642 1.88% 0.55% to 1.20% 45.83% to 44.88% 2005 134,816 $0.93 to $1.60 $125,579 1.08% 0.55% to 1.20% 31.22% to 30.37% 2004 139,788 $0.71 to $1.23 $ 99,632 0.84% 0.55% to 1.20% 18.04% to 17.27% 2003 152,636 $0.60 to $1.05 $ 92,188 0.98% 0.55% to 1.20% 33.33% to 32.91% 2002 157,502 $0.45 to $0.79 $ 70,985 0.68% 0.55% to 1.20% (26.23%) to (21.00%)(4) JANUS ASPEN MID CAP GRO, SERV 2006 50,493 $0.61 to $0.59 $ 30,258 -- 0.55% to 0.95% 12.69% to 12.24% 2005 59,483 $0.54 to $0.53 $ 31,715 -- 0.55% to 0.95% 11.41% to 10.97% 2004 71,059 $0.49 to $0.48 $ 34,099 -- 0.55% to 0.95% 19.82% to 19.34% 2003 85,736 $0.41 to $0.40 $ 34,434 -- 0.55% to 0.95% 36.67% to 33.33% 2002 95,558 $0.30 to $0.30 $ 28,712 -- 0.55% to 0.95% (28.57%) to (28.57%) LAZARD RETIRE INTL EQ, SERV 2006 162,153 $1.27 to $1.75 $207,522 1.00% 0.55% to 1.20% 21.86% to 21.07% 2005 188,675 $1.04 to $1.45 $198,502 0.98% 0.55% to 1.20% 10.04% to 9.33% 2004 168,208 $0.94 to $1.33 $160,817 0.54% 0.55% to 1.20% 14.35% to 13.61% 2003 123,056 $0.83 to $1.17 $102,535 0.35% 0.55% to 1.20% 27.69% to 27.17% 2002 60,087 $0.65 to $0.92 $ 38,997 0.09% 0.55% to 1.20% (10.96%) to (8.00%)(4) LM PTNRS VAR SM CAP GRO, CL II 2006 2,169 $1.18 to $1.11 $ 2,517 -- 0.55% to 1.45% 11.43% to 11.06%(13) 2005 104 $1.06 to $1.05 $ 110 -- 0.55% to 1.20% 5.56%(10) to 5.45%(10) 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- MFS INV GRO STOCK, SERV CL 2006 187,890 $0.71 to $1.10 $136,819 -- 0.55% to 1.45% 6.72% to 9.33%(13) 2005 216,007 $0.67 to $1.02 $146,971 0.14% 0.55% to 1.20% 3.66% to 2.99% 2004 195,430 $0.64 to $0.99 $127,400 -- 0.55% to 1.20% 8.39% to 7.69% 2003 172,322 $0.59 to $0.92 $103,234 -- 0.55% to 1.20% 20.41% to 21.05% 2002 134,823 $0.49 to $0.76 $ 65,815 -- 0.55% to 1.20% (27.94%) to (24.00%)(4) MFS NEW DIS, SERV CL 2006 98,386 $1.01 to $1.16 $ 98,902 -- 0.55% to 1.20% 12.31% to 11.59% 2005 122,560 $0.90 to $1.04 $109,920 -- 0.55% to 1.20% 4.46% to 3.78% 2004 149,075 $0.86 to $1.00 $128,085 -- 0.55% to 1.20% 5.63% to 4.94% 2003 146,404 $0.81 to $0.95 $119,207 -- 0.55% to 1.20% 32.79% to 31.94% 2002 117,036 $0.61 to $0.72 $ 71,654 -- 0.55% to 1.20% (32.22%) to (28.00%)(4)
98 - RIVERSOURCE VARIABLE ACCOUNT 10
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 ------------------------------------------ --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) ------- ----------------------- ---------- --------------- -------------------- -------------------------- MFS TOTAL RETURN, SERV CL 2006 87,237 $1.24 to $1.11 $106,831 2.09% 0.55% to 1.45% 11.01% to 10.48%(13) 2005 74,459 $1.12 to $1.10 $ 82,895 1.46% 0.55% to 1.20% 2.04% to 1.38% 2004 26,242 $1.10 to $1.09 $ 28,760 0.61% 0.55% to 1.20% 9.02%(7) to 8.38%(7) 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- MFS UTILITIES, SERV CL 2006 142,816 $1.80 to $1.24 $254,044 1.88% 0.55% to 1.45% 30.25% to 23.49%(13) 2005 103,681 $1.38 to $1.68 $145,619 0.42% 0.55% to 1.20% 15.93% to 15.18% 2004 52,792 $1.19 to $1.46 $ 64,198 1.21% 0.55% to 1.20% 29.13% to 28.30% 2003 33,751 $0.92 to $1.14 $ 31,693 1.87% 0.55% to 1.20% 35.29% to 34.12% 2002 18,482 $0.68 to $0.85 $ 12,743 2.05% 0.55% to 1.20% (23.60%) to (15.00%)(4) NB AMT INTL, CL S 2006 147,411 $1.05 to $1.17 $160,106 2.30% 0.55% to 1.45% 4.11%(12) to 16.75%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- NB AMT SOC RESPONSIVE, CL S 2006 466 $1.14 to $1.14 $ 530 -- 0.85% to 1.45% 13.43%(13) to 13.09%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- OPPEN GLOBAL SEC VA, SERV 2006 117,612 $1.53 to $1.16 $176,344 0.72% 0.55% to 1.45% 16.72% to 15.87%(13) 2005 72,423 $1.31 to $1.30 $ 94,587 0.57% 0.55% to 1.20% 13.44% to 12.70% 2004 24,526 $1.16 to $1.15 $ 28,389 0.15% 0.55% to 1.20% 15.92%(7) to 15.24%(7) 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- OPPEN MAIN ST SM CAP VA, SERV 2006 81,385 $1.44 to $1.10 $113,492 0.02% 0.55% to 1.45% 14.03% to 8.72%(13) 2005 41,895 $1.26 to $1.24 $ 52,482 -- 0.55% to 1.20% 9.11% to 8.41% 2004 16,643 $1.16 to $1.15 $ 19,170 -- 0.55% to 1.20% 17.36%(7) to 16.67%(7) 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- OPPEN STRATEGIC BOND VA, SERV 2006 820,585 $1.16 to $1.08 $936,136 2.90% 0.55% to 1.45% 6.65% to 7.74%(13) 2005 306,977 $1.09 to $1.08 $332,896 1.97% 0.55% to 1.20% 1.92% to 1.26% 2004 46,499 $1.07 to $1.06 $ 49,696 0.56% 0.55% to 1.20% 7.06%(7) to 6.43%(7) 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- OPPEN VAL VA, SERV 2006 370 $1.07 to $1.07 $ 396 -- 0.85% to 1.45% 6.99%(14) to 6.81%(14) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- --
RIVERSOURCE VARIABLE ACCOUNT 10 - 99
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 ------------------------------------------ --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) ------- ----------------------- ---------- --------------- -------------------- -------------------------- PIMCO VIT ALL ASSET, ADVISOR CL 2006 437,682 $1.04 to $1.07 $ 460,233 9.03% 0.55% to 1.45% 4.65%(12) to 6.59%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- PIONEER EQ INC VCT, CL II 2006 48,064 $1.46 to $1.48 $ 69,591 2.33% 0.55% to 1.20% 21.45% to 20.67% 2005 53,522 $1.20 to $1.23 $ 64,029 2.13% 0.55% to 1.20% 4.94% to 4.26% 2004 48,892 $1.14 to $1.18 $ 55,958 2.13% 0.55% to 1.20% 15.40% to 14.66% 2003 42,477 $0.99 to $1.03 $ 42,277 2.14% 0.55% to 1.20% 22.22% to 21.18% 2002 21,648 $0.81 to $0.85 $ 17,802 2.77% 0.55% to 1.20% (17.35%) to (15.00%)(4) PIONEER INTL VAL VCT, CL II 2006 8,608 $1.01 to $1.01 $ 8,668 -- 0.55% to 1.20% 0.70%(15) to 0.68%(15) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- PUT VT HLTH SCIENCES, CL IB 2006 46,519 $1.12 to $1.13 $ 51,796 0.33% 0.55% to 1.20% 2.23% to 1.57% 2005 48,773 $1.10 to $1.11 $ 53,264 0.05% 0.55% to 1.20% 12.58% to 11.85% 2004 37,011 $0.98 to $1.00 $ 35,996 0.17% 0.55% to 1.20% 6.54% to 5.85% 2003 30,753 $0.92 to $0.94 $ 28,128 0.46% 0.55% to 1.20% 17.95% to 17.50% 2002 19,335 $0.78 to $0.80 $ 15,031 -- 0.55% to 1.20% (20.41%) to (20.00%)(4) PUT VT INTL EQ, CL IB 2006 62,626 $1.65 to $1.75 $ 102,620 0.62% 0.55% to 1.20% 27.02% to 26.20% 2005 68,854 $1.30 to $1.39 $ 89,094 1.45% 0.55% to 1.20% 11.58% to 10.86% 2004 72,649 $1.16 to $1.25 $ 84,438 1.45% 0.55% to 1.20% 15.56% to 14.81% 2003 70,062 $1.01 to $1.09 $ 70,669 0.71% 0.55% to 1.20% 27.85% to 26.74% 2002 40,270 $0.79 to $0.86 $ 31,835 0.43% 0.55% to 1.20% (17.71%) to (14.00%)(4) PUT VT INTL NEW OPP, CL IB 2006 77,661 $1.24 to $1.21 $ 94,463 1.35% 0.55% to 0.95% 25.44% to 24.94% 2005 90,632 $0.99 to $0.97 $ 88,142 0.68% 0.55% to 0.95% 17.72% to 17.25% 2004 107,334 $0.84 to $0.82 $ 88,924 1.02% 0.55% to 0.95% 12.73% to 12.28% 2003 128,360 $0.75 to $0.73 $ 94,570 0.31% 0.55% to 0.95% 33.93% to 30.36% 2002 148,078 $0.56 to $0.56 $ 82,588 0.68% 0.55% to 0.95% (15.15%) to (13.85%) PUT VT NEW OPP, CL IA 2006 149,236 $1.49 to $1.49 $ 223,047 0.19% 1.25% to 1.25% 7.48% to 7.48% 2005 206,197 $1.38 to $1.38 $ 286,496 0.38% 1.25% to 1.25% 8.96% to 8.96% 2004 265,044 $1.27 to $1.27 $ 337,875 -- 1.25% to 1.25% 9.20% to 9.20% 2003 324,631 $1.16 to $1.16 $ 378,811 -- 1.25% to 1.25% 30.34% to 30.34% 2002 378,658 $0.89 to $0.89 $ 337,002 -- 1.25% to 1.25% (31.01%) to (31.01%) PUT VT VISTA, CL IB 2006 79,537 $1.08 to $1.30 $ 84,668 -- 0.55% to 1.20% 4.88% to 4.20% 2005 94,134 $1.03 to $1.24 $ 95,729 -- 0.55% to 1.20% 11.53% to 10.81% 2004 110,020 $0.92 to $1.12 $ 100,428 -- 0.55% to 1.20% 17.96% to 17.19% 2003 131,762 $0.78 to $0.96 $ 102,200 -- 0.55% to 1.20% 32.20% to 31.51% 2002 146,947 $0.59 to $0.73 $ 86,196 -- 0.55% to 1.20% (31.40%) to (27.00%)(4)
100 - RIVERSOURCE VARIABLE ACCOUNT 10
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 -------------------------------------------- --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) --------- ----------------------- ---------- --------------- -------------------- -------------------------- RVS VP BAL 2006 308,699 $1.25 to $1.13 $ 470,890 2.46% 0.55% to 1.45% 13.76% to 12.16%(13) 2005 360,863 $1.10 to $1.66 $ 501,036 2.59% 0.55% to 1.25% 3.35% to 2.63% 2004 373,845 $1.06 to $1.61 $ 515,992 2.28% 0.55% to 1.25% 9.00% to 8.23% 2003 384,617 $0.97 to $1.49 $ 496,929 2.26% 0.55% to 1.25% 19.75% to 18.25% 2002 376,502 $0.81 to $1.26 $ 418,919 2.60% 0.55% to 1.25% (13.83%) to (13.70%) RVS VP CASH MGMT 2006 701,788 $1.17 to $1.02 $ 794,074 4.44% 0.55% to 1.45% 3.92% to 1.65%(13) 2005 429,069 $1.13 to $1.23 $ 477,358 2.58% 0.55% to 1.25% 2.05% to 1.34% 2004 426,212 $1.11 to $1.21 $ 468,695 0.73% 0.55% to 1.25% 0.19% to (0.51%) 2003 486,939 $1.11 to $1.22 $ 539,742 0.51% 0.55% to 1.25% 0.00% to (0.81%) 2002 636,469 $1.11 to $1.23 $ 711,964 1.16% 0.55% to 1.25% 0.91% to 0.00% RVS VP CORE BOND 2006 59,405 $1.07 to $1.04 $ 62,773 4.17% 0.55% to 1.45% 3.24% to 4.36%(13) 2005 40,317 $1.04 to $1.02 $ 58,374 3.36% 0.55% to 1.20% 1.22% to 0.57% 2004 15,787 $1.02 to $1.02 $ 41,656 2.55% 0.55% to 1.20% 2.45%(7) to 1.85%(7) 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- RVS VP DIV BOND 2006 1,441,352 $1.36 to $1.05 $1,832,904 4.39% 0.55% to 1.45% 3.84% to 4.86%(13) 2005 842,520 $1.31 to $1.41 $1,094,933 3.71% 0.55% to 1.25% 1.56% to 0.85% 2004 639,931 $1.29 to $1.40 $ 835,025 3.83% 0.55% to 1.25% 3.92% to 3.19% 2003 618,469 $1.24 to $1.36 $ 788,063 3.58% 0.55% to 1.25% 3.33% to 3.82% 2002 589,321 $1.20 to $1.31 $ 734,053 5.08% 0.55% to 1.25% 5.26% to 3.97% RVS VP DIV EQ INC 2006 1,286,388 $1.83 to $1.12 $2,199,172 1.41% 0.55% to 1.45% 19.09% to 11.90%(13) 2005 772,974 $1.53 to $1.51 $1,175,707 1.61% 0.55% to 1.20% 12.88% to 12.15% 2004 482,647 $1.36 to $1.35 $ 652,523 1.65% 0.55% to 1.20% 17.56% to 16.80% 2003 249,818 $1.16 to $1.15 $ 288,112 1.60% 0.55% to 1.20% 41.46% to 38.55% 2002 160,822 $0.82 to $0.83 $ 132,660 1.61% 0.55% to 1.20% (19.61%) to (17.00%)(4) RVS VP EMER MKTS 2006 191,857 $2.11 to $1.34 $ 379,204 0.35% 0.55% to 1.45% 33.17% to 33.82%(13) 2005 134,343 $1.58 to $2.02 $ 213,076 0.20% 0.55% to 1.20% 33.07% to 32.21% 2004 42,521 $1.19 to $1.53 $ 50,449 3.09% 0.55% to 1.20% 23.47% to 22.67% 2003 15,683 $0.96 to $1.25 $ 19,823 1.73% 0.55% to 1.20% 39.13% to 38.89% 2002 9,255 $0.69 to $0.90 $ 9,786 -- 0.55% to 1.20% (5.48%) to (10.00%)(4) RVS VP FUNDAMENTAL VAL 2006 338,654 $1.09 to $1.11 $ 371,272 0.98% 0.55% to 1.45% 8.85%(12) to 10.70%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- RVS VP GLOBAL BOND 2006 472,738 $1.46 to $1.05 $ 646,999 3.28% 0.55% to 1.45% 6.15% to 4.85%(13) 2005 331,823 $1.38 to $1.46 $ 454,346 3.91% 0.55% to 1.25% (5.52%) to (6.17%) 2004 242,562 $1.46 to $1.55 $ 355,988 4.10% 0.55% to 1.25% 9.42% to 8.66% 2003 186,450 $1.33 to $1.43 $ 253,433 7.33% 0.55% to 1.25% 12.71% to 11.72% 2002 141,210 $1.18 to $1.28 $ 173,577 4.74% 0.55% to 1.25% 13.46% to 13.27%
RIVERSOURCE VARIABLE ACCOUNT 10 - 101
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 -------------------------------------------- --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) --------- ----------------------- ---------- --------------- -------------------- -------------------------- RVS VP GLOBAL INFLATION PROT SEC 2006 420,004 $1.06 to $1.03 $ 439,332 3.36% 0.55% to 1.45% 0.64% to 3.04%(13) 2005 177,692 $1.05 to $1.04 $ 186,090 7.05% 0.55% to 1.20% 2.24% to 1.59% 2004 9,951 $1.03 to $1.03 $ 10,223 3.47% 0.55% to 1.20% 2.67%(8) to 2.47%(8) 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- RVS VP GRO 2006 590,278 $0.73 to $1.13 $ 449,154 0.93% 0.55% to 1.45% 10.47% to 13.46%(13) 2005 579,086 $0.67 to $1.05 $ 398,436 0.39% 0.55% to 1.20% 8.02% to 7.32% 2004 340,148 $0.62 to $0.98 $ 213,399 0.32% 0.55% to 1.20% 7.84% to 7.14% 2003 349,978 $0.57 to $0.92 $ 203,000 0.21% 0.55% to 1.20% 21.28% to 21.05% 2002 257,108 $0.47 to $0.76 $ 122,448 0.07% 0.55% to 1.20% (26.56%) to (24.00%)(4) RVS VP HI YIELD BOND 2006 649,204 $1.39 to $1.07 $ 905,546 7.40% 0.55% to 1.45% 10.21% to 7.67%(13) 2005 715,854 $1.26 to $1.39 $ 919,121 6.46% 0.55% to 1.25% 3.45% to 2.73% 2004 730,172 $1.22 to $1.36 $ 914,940 6.99% 0.55% to 1.25% 10.78% to 10.01% 2003 622,128 $1.10 to $1.23 $ 712,392 7.63% 0.55% to 1.25% 23.60% to 23.00% 2002 426,030 $0.89 to $1.00 $ 399,795 7.77% 0.55% to 1.25% (6.32%) to (7.41%) RVS VP INC OPP 2006 309,653 $1.15 to $1.07 $ 345,710 6.45% 0.55% to 1.45% 7.39% to 6.77%(13) 2005 59,285 $1.07 to $1.06 $ 63,157 5.94% 0.55% to 1.20% 2.76% to 2.10% 2004 2,406 $1.04 to $1.04 $ 2,505 5.77% 0.55% to 1.20% 3.92%(8) to 3.72%(8) 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- RVS VP INTL OPP 2006 314,505 $1.14 to $1.17 $ 419,625 1.93% 0.55% to 1.45% 23.49% to 16.79%(13) 2005 335,839 $0.92 to $1.23 $ 370,645 1.43% 0.55% to 1.25% 13.24% to 12.45% 2004 281,107 $0.82 to $1.09 $ 282,571 1.13% 0.55% to 1.25% 16.76% to 15.95% 2003 215,587 $0.70 to $0.94 $ 192,941 0.92% 0.55% to 1.25% 27.27% to 25.33% 2002 223,251 $0.55 to $0.75 $ 159,249 0.97% 0.55% to 1.25% (17.91%) to (18.48%) RVS VP LG CAP EQ 2006 1,149,920 $0.97 to $1.15 $1,327,213 1.16% 0.55% to 1.45% 14.65% to 14.68%(13) 2005 587,040 $0.85 to $1.35 $ 570,540 1.15% 0.55% to 1.25% 5.59% to 4.86% 2004 386,123 $0.80 to $1.28 $ 384,039 0.92% 0.55% to 1.25% 5.30% to 4.57% 2003 277,050 $0.76 to $1.23 $ 286,327 0.62% 0.55% to 1.25% 28.81% to 28.13% 2002 249,561 $0.59 to $0.96 $ 208,847 0.53% 0.55% to 1.25% (22.37%) to (23.20%) RVS VP LG CAP VAL 2006 15,289 $1.35 to $1.16 $ 24,456 1.26% 0.55% to 1.45% 18.41% to 15.50%(13) 2005 11,470 $1.14 to $1.13 $ 16,462 1.60% 0.55% to 1.20% 3.96% to 3.29% 2004 6,542 $1.10 to $1.09 $ 10,459 1.89% 0.55% to 1.20% 10.01%(7) to 9.37%(7) 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- RVS VP MID CAP GRO 2006 200,202 $1.25 to $1.05 $ 222,008 0.24% 0.55% to 1.45% (0.62%) to 4.74%(13) 2005 87,824 $1.26 to $1.25 $ 107,722 -- 0.55% to 1.20% 9.52% to 8.81% 2004 98,758 $1.15 to $1.15 $ 110,889 -- 0.55% to 1.20% 8.50% to 7.80% 2003 80,060 $1.06 to $1.06 $ 83,083 -- 0.55% to 1.20% 21.84% to 20.45% 2002 30,902 $0.87 to $0.88 $ 28,082 -- 0.55% to 1.20% (13.86%) to (12.00%)(4)
102 - RIVERSOURCE VARIABLE ACCOUNT 10
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 ------------------------------------------ --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) ------- ----------------------- ---------- --------------- -------------------- -------------------------- RVS VP MID CAP VAL 2006 273,710 $1.37 to $1.09 $347,533 1.09% 0.55% to 1.45% 14.69% to 8.46%(13) 2005 12,717 $1.20 to $1.19 $ 17,507 1.13% 0.55% to 1.20% 17.78%(9) to 17.28%(9) 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- RVS VP S&P 500 2006 269,990 $1.01 to $1.14 $276,643 1.45% 0.55% to 1.45% 14.63% to 13.44%(13) 2005 304,082 $0.88 to $1.13 $272,014 1.40% 0.55% to 1.20% 3.83% to 3.16% 2004 283,879 $0.85 to $1.10 $244,571 1.50% 0.55% to 1.20% 9.66% to 8.95% 2003 208,338 $0.77 to $1.01 $163,372 1.21% 0.55% to 1.20% 26.23% to 26.25% 2002 134,292 $0.61 to $0.80 $ 82,220 1.00% 0.55% to 1.20% (22.78%) to (20.00%)(4) RVS VP SELECT VAL 2006 18,510 $1.30 to $1.10 $ 27,617 2.14% 0.55% to 1.45% 15.18% to 9.42%(13) 2005 18,946 $1.13 to $1.11 $ 24,577 0.49% 0.55% to 1.20% (0.05%) to (0.69%) 2004 9,024 $1.13 to $1.12 $ 13,503 1.11% 0.55% to 1.20% 12.84%(7) to 12.18%(7) 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- RVS VP SHORT DURATION 2006 270,831 $1.28 to $1.03 $331,991 3.80% 0.55% to 1.45% 3.27% to 2.92%(13) 2005 302,534 $1.24 to $1.04 $361,417 2.89% 0.55% to 1.20% 1.02% to 0.37% 2004 326,084 $1.23 to $1.04 $387,853 2.44% 0.55% to 1.20% 0.30% to (0.35%) 2003 319,998 $1.22 to $1.04 $381,318 2.30% 0.55% to 1.20% 0.83% to 0.00% 2002 256,041 $1.21 to $1.04 $304,224 2.87% 0.55% to 1.20% 5.22% to 4.00%(4) RVS VP SM CAP ADV 2006 97,486 $1.79 to $1.09 $170,404 0.04% 0.55% to 1.45% 11.08% to 8.04%(13) 2005 116,136 $1.61 to $1.51 $183,927 -- 0.55% to 1.20% 4.25% to 3.58% 2004 122,818 $1.54 to $1.45 $187,181 -- 0.55% to 1.20% 17.89% to 17.13% 2003 90,054 $1.31 to $1.24 $116,896 -- 0.55% to 1.20% 47.19% to 45.88% 2002 60,353 $0.89 to $0.85 $ 53,405 -- 0.55% to 1.20% (17.59%) to (15.00%)(4) RVS VP SM CAP VAL 2006 271,781 $1.92 to $1.12 $480,085 0.41% 0.55% to 1.45% 19.59% to 10.88%(13) 2005 234,333 $1.61 to $1.49 $370,927 0.21% 0.55% to 1.20% 5.19% to 4.51% 2004 168,145 $1.53 to $1.42 $254,207 0.03% 0.55% to 1.20% 19.36% to 18.58% 2003 125,783 $1.28 to $1.20 $159,989 0.04% 0.55% to 1.20% 37.63% to 36.36% 2002 77,906 $0.93 to $0.88 $ 76,358 0.17% 0.55% to 1.20% (13.08%) to (12.00%)(4) ROYCE MICRO-CAP, INVEST CI 2006 40,617 $3.41 to $3.32 $135,983 0.17% 0.55% to 0.95% 20.41% to 19.93% 2005 46,205 $2.83 to $2.76 $128,705 0.53% 0.55% to 0.95% 11.00% to 10.56% 2004 54,526 $2.55 to $2.50 $137,329 -- 0.55% to 0.95% 13.22% to 12.77% 2003 54,945 $2.26 to $2.22 $122,428 -- 0.55% to 0.95% 48.68% to 48.00% 2002 53,109 $1.52 to $1.50 $ 79,999 -- 0.55% to 0.95% (13.14%) to (13.79%) THIRD AVE VAL 2006 57,365 $3.37 to $3.27 $189,566 1.29% 0.55% to 0.95% 15.15% to 14.69% 2005 64,866 $2.92 to $2.85 $186,631 1.31% 0.55% to 0.95% 14.00% to 13.55% 2004 66,587 $2.57 to $2.51 $168,558 0.54% 0.55% to 0.95% 19.24% to 18.76% 2003 67,135 $2.15 to $2.12 $142,904 0.19% 0.55% to 0.95% 41.45% to 41.33% 2002 66,723 $1.52 to $1.50 $100,487 0.19% 0.55% to 0.95% (11.11%) to (11.24%)
RIVERSOURCE VARIABLE ACCOUNT 10 - 103
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 ------------------------------------------ --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) ------- ----------------------- ---------- --------------- -------------------- -------------------------- VANK LIT COMSTOCK, CL II 2006 615,160 $1.38 to $1.13 $810,354 1.11% 0.55% to 1.45% 15.41% to 12.68%(13) 2005 384,396 $1.19 to $1.18 $456,175 0.49% 0.55% to 1.20% 3.54% to 2.87% 2004 75,664 $1.15 to $1.15 $ 87,005 0.11% 0.55% to 1.20% 14.41%(7) to 13.74%(7) 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- VANK UIF GLOBAL REAL EST, CL II 2006 136,442 $1.23 to $1.28 $169,621 4.39% 0.55% to 1.45% 23.57%(12) to 26.94%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- VANK UIF MID CAP GRO, CL II 2006 98,448 $0.99 to $1.08 $100,352 -- 0.55% to 1.45% (0.22%)(12) to 7.27%(13) 2005 -- -- -- -- -- -- -- -- -- 2004 -- -- -- -- -- -- -- -- -- 2003 -- -- -- -- -- -- -- -- -- 2002 -- -- -- -- -- -- -- -- -- WANGER INTL SM CAP 2006 392,888 $2.31 to $1.24 $857,316 0.51% 0.55% to 1.45% 36.41% to 22.89%(13) 2005 318,154 $1.69 to $1.98 $539,107 0.86% 0.55% to 1.20% 20.86% to 20.08% 2004 201,340 $1.40 to $1.65 $282,034 0.59% 0.55% to 1.20% 29.56% to 28.72% 2003 130,668 $1.08 to $1.28 $141,172 0.27% 0.55% to 1.20% 47.95% to 47.13% 2002 89,925 $0.73 to $0.87 $ 65,493 -- 0.55% to 1.20% (14.12%) to (13.00%)(4) WANGER U.S. SM CO 2006 489,659 $1.92 to $1.08 $890,484 0.23% 0.55% to 1.45% 7.28% to 7.16%(13) 2005 478,752 $1.79 to $1.54 $828,367 -- 0.55% to 1.20% 10.64% to 9.93% 2004 368,407 $1.62 to $1.40 $579,332 -- 0.55% to 1.20% 17.68% to 16.92% 2003 261,219 $1.37 to $1.20 $351,317 -- 0.55% to 1.20% 42.71% to 41.18% 2002 158,874 $0.96 to $0.85 $151,154 -- 0.55% to 1.20% (17.95%) to (15.00%)(4) WF ADV VT ASSET ALLOC 2006 76,000 $1.29 to $1.32 $ 97,390 2.31% 0.55% to 1.20% 11.53% to 10.81% 2005 84,219 $1.16 to $1.19 $ 96,853 2.09% 0.55% to 1.20% 4.41% to 3.74% 2004 80,918 $1.11 to $1.15 $ 89,406 2.16% 0.55% to 1.20% 8.74% to 8.04% 2003 59,332 $1.02 to $1.06 $ 60,495 1.74% 0.55% to 1.20% 21.43% to 20.45% 2002 28,802 $0.84 to $0.88 $ 24,203 2.33% 0.55% to 1.20% (13.40%) to (12.00%)(4) WF ADV VT INTL CORE 2006 15,404 $1.29 to $1.47 $ 19,827 1.61% 0.55% to 1.20% 20.15% to 19.37% 2005 17,549 $1.07 to $1.23 $ 18,913 1.88% 0.55% to 1.20% 9.07% to 8.37% 2004 19,728 $0.99 to $1.13 $ 19,596 0.23% 0.55% to 1.20% 9.03% to 8.32% 2003 14,684 $0.90 to $1.05 $ 13,353 0.33% 0.55% to 1.20% 30.43% to 29.63% 2002 7,789 $0.69 to $0.81 $ 5,378 0.20% 0.55% to 1.20% (23.33%) to (19.00%)(4) WF ADV VT OPP 2006 68,746 $1.38 to $1.11 $ 93,493 -- 0.55% to 1.45% 11.61% to 10.85%(13) 2005 78,280 $1.23 to $1.25 $ 95,962 -- 0.55% to 1.20% 7.22% to 6.52% 2004 80,225 $1.15 to $1.18 $ 91,972 -- 0.55% to 1.20% 17.43% to 16.67% 2003 73,209 $0.98 to $1.01 $ 71,663 0.01% 0.55% to 1.20% 36.11% to 34.67% 2002 47,166 $0.72 to $0.75 $ 34,051 0.73% 0.55% to 1.20% (27.27%) to (25.00%)(4)
104 - RIVERSOURCE VARIABLE ACCOUNT 10
AT DEC. 31 FOR THE YEAR ENDED DEC. 31 ------------------------------------------ --------------------------------------------------------------- UNITS ACCUMULATION UNIT VALUE NET ASSETS INVESTMENT EXPENSE RATIO TOTAL RETURN (000S) LOWEST TO HIGHEST (000S) INCOME RATIO(1) LOWEST TO HIGHEST(2) LOWEST TO HIGHEST(3) ------- ----------------------- ---------- --------------- -------------------- -------------------------- WF ADV VT SM CAP GRO 2006 50,566 $1.20 to $1.14 $60,201 -- 0.55% to 1.45% 22.08% to 12.91%(13) 2005 38,139 $0.98 to $1.10 $37,471 -- 0.55% to 1.20% 5.66% to 4.98% 2004 42,675 $0.93 to $1.05 $39,748 -- 0.55% to 1.20% 13.15% to 12.41% 2003 36,312 $0.82 to $0.94 $29,921 -- 0.55% to 1.20% 41.38% to 40.30% 2002 18,702 $0.58 to $0.67 $10,870 -- 0.55% to 1.20% (38.30%) to (33.00%)(4)
(1) These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount 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 subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest. 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 maximum to minimum values, based on the price level representing the minimum and maximum expense ratio amounts, some individual price level total returns are not within the ranges presented due to the introduction of new price levels during the year and other market factors. (4) Operations commenced on Feb. 13, 2002. (5) Operations commenced on March 1, 2002. (6) Operations commenced on Dec. 8, 2003. (7) Operations commenced on Feb. 4, 2004. (8) Operations commenced on Sept. 13, 2004. (9) Operations commenced on May 2, 2005. (10) Operations commenced on Nov. 1, 2005. (11) Operations commenced on April 28, 2006. (12) Operations commenced on May 1, 2006. (13) Operations commenced on June 26, 2006. (14) Operations commenced on Sept. 15, 2006. (15) Operations commenced on Dec. 15, 2006. RIVERSOURCE VARIABLE ACCOUNT 10 - 105 RiverSource Life Insurance Company ------------------------------------------------------------------------------- REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS RIVERSOURCE LIFE INSURANCE COMPANY We have audited the accompanying consolidated balance sheets of RiverSource Life Insurance Company, formerly IDS Life Insurance Company, (a wholly-owned subsidiary of Ameriprise Financial, Inc.) as of December 31, 2006 and 2005, and the related consolidated statements of income, shareholder's equity, and cash flows for each of the three years in the period ended December 31, 2006. These financial statements are the responsibility of RiverSource Life Insurance Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of RiverSource Life Insurance Company at December 31, 2006 and 2005, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2006, in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Minneapolis, Minnesota February 26, 2007 RiverSource Life Insurance Company -------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS (IN MILLIONS, EXCEPT SHARE AMOUNTS) DECEMBER 31, 2006 2005 ASSETS Investments: Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2006, $25,289; 2005, $27,817) $24,995 $27,753 Common and preferred stocks, at fair value (cost: 2006, $30; 2005, $0) 31 -- Mortgage loans on real estate, at cost (less allowance for loan losses: 2006, $37; 2005, $41) 2,790 2,842 Policy loans 642 605 Trading securities and other investments 241 548 ------------------------------------------------------------------------------------------------ Total investments 28,699 31,748 Cash and cash equivalents 160 272 Reinsurance recoverables 1,137 983 Amounts due from brokers 7 4 Other accounts receivable 90 63 Accrued investment income 309 329 Deferred acquisition costs 4,411 4,036 Deferred sales inducement costs 452 370 Other assets 321 220 Separate account assets 49,287 37,930 ------------------------------------------------------------------------------------------------ Total assets $84,873 $75,955 ================================================================================================ LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities: Future policy benefits $29,561 $32,312 Policy claims and other policyholders' funds 93 90 Amounts due to brokers 132 32 Deferred income taxes, net 90 9 Other liabilities 440 421 Separate account liabilities 49,287 37,930 ------------------------------------------------------------------------------------------------ Total liabilities 79,603 70,794 ------------------------------------------------------------------------------------------------ Shareholder's equity: Common stock, $30 par value; 100,000 shares authorized, issued and outstanding 3 3 Additional paid-in capital 2,021 2,020 Retained earnings 3,455 3,269 Accumulated other comprehensive loss, net of tax: Net unrealized securities losses (168) (91) Net unrealized derivative losses (41) (40) ------------------------------------------------------------------------------------------------ Total accumulated other comprehensive loss (209) (131) ------------------------------------------------------------------------------------------------ Total shareholder's equity 5,270 5,161 ------------------------------------------------------------------------------------------------ Total liabilities and shareholder's equity $84,873 $75,955 ================================================================================================
See Notes to Consolidated Financial Statements. RiverSource Life Insurance Company -------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME (IN MILLIONS) YEARS ENDED DECEMBER 31, 2006 2005 2004 REVENUES Premiums: Traditional life insurance $ 72 $ 75 $ 68 Disability income and long term care insurance 322 295 284 ------------------------------------------------------------------------------------------------ Total premiums 394 370 352 Net investment income 1,661 1,789 1,775 Contractholder and policyholder charges 637 577 555 Mortality and expense risk and other fees 636 489 430 Net realized investment gain 51 48 27 ------------------------------------------------------------------------------------------------ Total revenues 3,379 3,273 3,139 ------------------------------------------------------------------------------------------------ BENEFITS AND EXPENSES Death and other benefits: Traditional life insurance 28 42 37 Investment contracts and universal life-type insurance 267 232 228 Disability income and long term care insurance 83 76 67 Increase in liabilities for future policy benefits: Traditional life insurance -- 5 1 Disability income and long term care insurance 143 141 123 Interest credited to account values 1,052 1,111 1,128 Amortization of deferred acquisition costs 356 316 261 Separation costs 131 121 -- Other insurance and operating expenses 641 588 502 ------------------------------------------------------------------------------------------------ Total benefits and expenses 2,701 2,632 2,347 ------------------------------------------------------------------------------------------------ Income before income tax provision and accounting change 678 641 792 Income tax provision 192 182 226 ------------------------------------------------------------------------------------------------ Income before accounting change 486 459 566 Cumulative effect of accounting change, net of tax -- -- (70) ------------------------------------------------------------------------------------------------ Net income $ 486 $ 459 $ 496 ================================================================================================
See Notes to Consolidated Financial Statements. RiverSource Life Insurance Company -------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS (IN MILLIONS) YEARS ENDED DECEMBER 31, 2006 2005 2004 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 486 $ 459 $ 496 Adjustments to reconcile net income to net cash provided by operating activities: Cumulative effect of accounting change, net of tax -- -- 70 Amortization of deferred acquisition costs 356 316 261 Amortization of deferred sales inducement costs 48 40 34 Capitalization of deferred acquisition costs (687) (633) (534) Capitalization of deferred sales inducement costs (126) (94) (71) Amortization of premium, net 75 83 93 Deferred income taxes 123 122 70 Contractholder and policyholder charges, non-cash (220) (232) (232) Net realized investment gain (51) (48) (27) Net realized gain on trading securities and equity method investments in hedge funds (16) (24) (38) Change in operating assets and liabilities: Trading securities and equity method investments in hedge funds, net 297 247 7 Future policy benefits for traditional life, disability income and long term care insurance 274 230 235 Policy claims and other policyholders' funds 2 20 2 Policy loans, excluding universal life-type insurance: Repayment 35 36 37 Issuance (39) (39) (39) Reinsurance recoverables (154) (106) (122) Other accounts receivable (27) (10) 16 Accrued investment income 20 23 4 Other assets and liabilities, net (280) 47 (3) ------------------------------------------------------------------------------------------------ NET CASH PROVIDED BY OPERATING ACTIVITIES 116 437 259 ------------------------------------------------------------------------------------------------ CASH FLOWS FROM INVESTING ACTIVITIES Available-for-Sale securities: Proceeds from sales 1,897 3,124 1,603 Maturities, sinking fund payments and calls 2,014 2,242 1,931 Purchases (1,433) (5,780) (4,393) Other investments, excluding policy loans: Proceeds from sales, maturities, sinking fund payments and calls 519 653 690 Purchases (441) (543) (402) Change in amounts due to and from brokers, net 98 (128) (71) Change in restricted cash -- 536 299 ------------------------------------------------------------------------------------------------ NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 2,654 104 (343) ------------------------------------------------------------------------------------------------ CASH FLOWS FROM FINANCING ACTIVITIES Activity related to investment contracts and universal life-type insurance: Considerations received 1,267 1,532 2,351 Interest credited to account values 1,052 1,111 1,128 Surrenders and other benefits (4,869) (3,330) (2,716) Policy loans: Repayment 108 89 84 Issuance (140) (103) (93) Capital contribution from Ameriprise Financial, Inc. -- 650 -- Cash dividend to Ameriprise Financial, Inc. (300) (380) (930) ------------------------------------------------------------------------------------------------ NET CASH USED IN FINANCING ACTIVITIES (2,882) (431) (176) ------------------------------------------------------------------------------------------------ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (112) 110 (260) Cash and cash equivalents at beginning of year 272 162 422 ------------------------------------------------------------------------------------------------ CASH AND CASH EQUIVALENTS AT END OF YEAR $ 160 $ 272 $ 162 ================================================================================================ Supplemental disclosures: Income taxes paid, net $ 64 $ 96 $ 196 Interest paid on borrowings $ 1 $ -- $ --
See Notes to Consolidated Financial Statements. RiverSource Life Insurance Company -------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY THREE YEARS ENDED DECEMBER 31, 2006 (IN MILLIONS) ADDITIONAL ACCUMULATED OTHER COMMON PAID-IN RETAINED COMPREHENSIVE STOCK CAPITAL EARNINGS INCOME/(LOSS) TOTAL ----------------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2003 $ 3 $1,370 $3,624 $ 399 $5,396 Comprehensive income: Net income -- -- 496 -- 496 Change in unrealized holding losses on securities, net -- -- -- (35) (35) Change in unrealized derivative losses, net -- -- -- (23) (23) ------- Total comprehensive income -- -- -- -- 438 Cash dividends to Ameriprise Financial, Inc. -- -- (930) -- (930) ----------------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2004 $ 3 $1,370 $3,190 $ 341 $4,904 Comprehensive loss: Net income -- -- 459 -- 459 Change in unrealized holding losses on securities, net -- -- -- (461) (461) Change in unrealized derivative losses, net -- -- -- (11) (11) ------- Total comprehensive loss -- -- -- -- (13) Capital contribution from Ameriprise Financial, Inc. -- 650 -- -- 650 Cash dividend to Ameriprise Financial, Inc. -- -- (380) -- (380) ----------------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2005 $ 3 $2,020 $3,269 $ (131) $5,161 Comprehensive income: Net income -- -- 486 -- 486 Change in unrealized holding losses on securities, net -- -- -- (77) (77) Change in unrealized derivative losses, net -- -- -- (1) (1) ------- Total comprehensive income -- -- -- -- 408 Tax adjustment of share-based incentive employee compensation plan -- 1 -- -- 1 Cash dividend to Ameriprise Financial, Inc. -- -- (300) -- (300) ----------------------------------------------------------------------------------------------------------------------------- BALANCES AT DECEMBER 31, 2006 $ 3 $2,021 $3,455 $ (209) $5,270 =============================================================================================================================
See Notes to Consolidated Financial Statements. RiverSource Life Insurance Company ------------------------------------------------------------------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION Nature of Business RiverSource Life Insurance Company, formerly known as IDS Life Insurance Company, is a stock life insurance company with one wholly-owned operating subsidiary, RiverSource Life Insurance Co. of New York ("RiverSource Life of NY"). RiverSource Life Insurance Company is a wholly-owned subsidiary of Ameriprise Financial, Inc. ("Ameriprise Financial"). o 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. o RiverSource Life of NY is a stock life insurance company domiciled in New York, which holds Certificates of Authority in New York and North Dakota. RiverSource Life of NY issues insurance and annuity products. On December 31, 2006, IDS Life Insurance Company completed an Agreement and Plan of Merger with both American Enterprise Life Insurance Company ("American Enterprise Life") and American Partners Life Insurance Company ("American Partners Life") whereby both companies merged with and into IDS Life Insurance Company. As a result of the merger, American Enterprise Life and American Partners Life ceased to exist. Prior to the merger, both companies were wholly-owned operating subsidiaries of IDS Life Insurance Company. Immediately following the merger, IDS Life Insurance Company changed its name to RiverSource Life Insurance Company. Also on December 31, 2006, American Centurion Life Assurance Company ("American Centurion Life") merged with and into IDS Life Insurance Company of New York ("IDS Life of New York"). As a result of the merger, American Centurion Life ceased to exist. Prior to the merger, American Centurion Life was a wholly-owned operating subsidiary of IDS Life Insurance Company. Immediately following the merger, IDS Life of New York changed its name to RiverSource Life Insurance Co. of New York. RiverSource Life Insurance Company and its subsidiary are referred to collectively in these notes as "RiverSource Life". No material effect on the consolidated financial condition and results of operations is expected for RiverSource Life as a result of the mergers. Ameriprise Financial was formerly a wholly-owned subsidiary of American Express Company ("American Express"). On February 1, 2005, the American Express Board of Directors announced its intention to pursue the disposition of 100% of its shareholdings in Ameriprise Financial (the "Separation") through a tax-free distribution to American Express shareholders. Effective as of the close of business on September 30, 2005, American Express completed the Separation and the distribution of Ameriprise Financial common shares to American Express shareholders (the "Distribution"). In connection with the Distribution, Ameriprise Financial entered into certain agreements with American Express to effect the Separation and to define the responsibility for obligations arising before and after the date of the Distribution, including, among others, obligations relating to transition services, taxes, and employees. Ameriprise Financial has incurred $654 million of pretax non-recurring separation costs since the Separation announcement through December 31, 2006 and expects to incur a total of approximately $875 million. RiverSource Life was allocated certain expenses incurred as a result of Ameriprise Financial becoming an independent company. RiverSource Life has been allocated $252 million in total pretax non-recurring separation costs since the Separation announcement through December 31, 2006 and expects to be allocated a significant portion of the remaining separation costs in 2007. RiverSource Life received a capital contribution of $650 million from Ameriprise Financial during the third quarter of 2005 to support its financial strength ratings and to cover separation costs. RiverSource Life's principal products are variable deferred annuities and variable universal life insurance which are issued primarily to individuals. It also offers fixed annuities where assets accumulate until the contract is surrendered, the contractholder (or in some contracts, the annuitant) dies, or the contractholder or annuitant begins receiving benefits under an annuity payout option. It also offers immediate annuities in which payments begin within one year of issue and continue for life or for a fixed period of time. RiverSource Life's fixed deferred annuities guarantee a relatively low annual interest rate during the accumulation period (the time before annuity payments begin). However, RiverSource Life has the option of paying a higher rate set at its discretion. In addition, persons owning one type of annuity may have their interest calculated based on an increase in a broad-based stock market index. RiverSource Life issues both variable and fixed universal life insurance, traditional life insurance including whole life and term life and disability income insurance. (RiverSource Life discontinued underwriting new long term care ("LTC") RiverSource Life Insurance Company ------------------------------------------------------------------------------- policies as of December 31, 2002). Universal life insurance is a form of permanent life insurance characterized by its flexible premiums, its flexible death benefit amounts and its unbundling of the 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. Under RiverSource Life's variable life insurance and variable annuity products described above, the purchaser may choose among investment options that include RiverSource Life's "general account" as well as from a variety of portfolios including common stocks, bonds, managed assets and/or short-term securities. Basis of Presentation The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and, its wholly-owned subsidiary, RiverSource Life of NY. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") which vary in certain respects from reporting practices prescribed or permitted by state insurance regulatory authorities as described in Note 11. Certain reclassifications of prior period amounts have been made to conform to the current presentation. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION RiverSource Life consolidates all entities in which it holds a greater than 50% voting interest, except for variable interest entities which are consolidated when certain conditions are met and immaterial seed money investments in separate accounts, which are accounted for as trading securities. Entities in which RiverSource Life holds a greater than 20% but less than 50% voting interest are accounted for under the equity method. Additionally, other investments in hedge funds in which RiverSource Life holds an interest that is less than 50% are accounted for under the equity method. All other investments are accounted for under the cost method where RiverSource Life owns less than a 20% voting interest and does not exercise significant influence, or as Available-for-Sale securities, as applicable. RiverSource Life also consolidates all variable interest entities ("VIEs") for which it is considered to be the primary beneficiary. The determination as to whether an entity is a VIE is based on the amount and characteristics of the entity's equity. The determination as to whether RiverSource Life is considered to be the primary beneficiary is based on whether RiverSource Life will absorb a majority of the VIE's expected losses, receive a majority of the VIE's expected residual return, or both. RiverSource Life liquidated its interest in all consolidated VIEs during 2004 and 2005. There were no consolidated VIEs as of December 31, 2006 and 2005. Qualifying Special Purpose Entities ("QSPEs") are not consolidated. Such QSPEs included a securitization trust containing a majority of RiverSource Life's rated collateralized debt obligations ("CDOs") for which RiverSource Life sold all of its retained interests in 2005. AMOUNTS BASED ON ESTIMATES AND ASSUMPTIONS Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, valuation of deferred acquisition costs ("DAC") and the corresponding recognition of DAC amortization, derivative financial instruments and hedging activities, income taxes and recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. RiverSource Life Insurance Company ------------------------------------------------------------------------------- BALANCE SHEET INVESTMENTS Investments consist of the following: Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (loss), net of income tax provision (benefit) and net of adjustments in other asset and liability balances, such as DAC, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet date. Gains and losses are recognized in consolidated results of operations upon disposition of the securities. In addition, losses are also recognized when management determines that a decline in value is other-than-temporary, which requires judgment regarding the amount and timing of recovery. Indicators of other-than-temporary impairment for debt securities include issuer downgrade, default or bankruptcy. RiverSource Life also considers the extent to which amortized cost exceeds fair value, the duration of that difference and management's judgment about the issuer's current and prospective financial condition, as well as its ability and intent to hold until recovery. Other-than-temporary impairment charges are recorded in net realized gains (losses) on investments within the Consolidated Statements of Income. Fair value is generally based on quoted market prices. Commercial Mortgage Loans on Real Estate, Net Commercial mortgage loans on real estate, net, reflect principal amounts outstanding less allowance for losses. The allowance for loan losses is measured as the excess of the loan's recorded investment over the present value of its expected principal and interest payments discounted at the loan's effective interest rate, or the fair value of collateral. Additionally, the level of the allowance for loan losses considers other factors, including historical experience, economic conditions and geographic concentrations. Management regularly evaluates the adequacy of the allowance for loan losses and believes it is adequate to absorb estimated losses in the portfolio. RiverSource Life generally stops accruing interest on commercial mortgage loans for which interest payments are delinquent more than three months. Based on management's judgment as to the ultimate collectibility of principal, interest payments received are either recognized as income or applied to the recorded investment in the loan. Policy Loans Policy loans include life insurance policy and annuity loans. These loans are carried at the aggregate of the unpaid loan balances, which do not exceed the cash surrender values of the related policies. Trading Securities and Other Investments Included in trading securities and other investments are hedge fund investments, separate account and mutual fund seed money and syndicated loans. Separate account and mutual fund seed money is carried at fair market value with changes in value recognized within net investment income. The carrying value of equity method investments in hedge funds reflects RiverSource Life's original investment and its share of earnings or losses of the hedge funds subsequent to the date of investment, and approximate fair value. Syndicated loans reflect amortized cost less allowance for losses. CASH AND CASH EQUIVALENTS RiverSource Life has defined cash equivalents to include highly liquid investments with original maturities of 90 days or less. REINSURANCE RiverSource Life reinsures a portion of the risks associated with its life and LTC insurance products through reinsurance agreements with unaffiliated insurance companies. Reinsurance is used in order to limit losses, minimize exposure to large risks, provide additional capacity for future growth and to effect business-sharing arrangements. To minimize exposure to significant losses from reinsurer insolvencies, RiverSource Life evaluates the financial condition of its reinsurers prior to entering into new reinsurance treaties and on a periodic basis during the terms of the treaties. RiverSource Life remains primarily liable as the direct insurer on all risks reinsured. Generally, RiverSource Life reinsures 90% of the death benefit liability related to individual fixed and variable universal life and term life insurance products. RiverSource Life began reinsuring risks at this level beginning in 2001 for term life insurance and 2002 for variable and universal life insurance. Policies issued prior to these dates are not subject to the same reinsurance levels. The maximum amount of life insurance risk retained by RiverSource Life is $750,000 on any policy insuring a single life and $1.5 million on any flexible premium survivorship variable life policy. For existing LTC policies except those sold by RiverSource Life of NY prior to 1996, RiverSource Life retained 50% of the risk and the remaining 50% of the risk was ceded on a coinsurance basis to affiliates of Genworth Financial, Inc. ("Genworth"). Reinsurance recoverable from Genworth related to RiverSource Life's long term care liabilities was $945 million at December 31, 2006, while amounts recoverable from each other reinsurer were much smaller. Risk on variable life and universal life policies is reinsured on a yearly renewable term basis. Starting in 2001, risk on most term life policies is reinsured on a coinsurance basis. RiverSource Life Insurance Company ------------------------------------------------------------------------------- RiverSource Life retains all risk for new claims on disability income ("DI") contracts. Risk is currently managed by limiting the amount of disability insurance written on any one individual. RiverSource Life also retains all accidental death benefit and almost all waiver of premium risk. 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. DEFERRED SALES INDUCEMENT COSTS 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. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Derivative financial instruments are recorded at fair value within other assets or liabilities. The fair value of RiverSource Life's derivative financial instruments is determined using either market quotes or valuation models that are based upon the net present value of estimated future cash flows and incorporate current market data inputs. In certain instances, the fair value includes structuring costs incurred at the inception of the transaction. The accounting for the change in the fair value of a derivative financial instrument depends on its intended use and the resulting hedge designation, if any. RiverSource Life generally designates its hedges as cash flows hedges or accounts for them as economic hedges. For derivative financial instruments that qualify as cash flow hedges, the effective portions of the gain or loss on the derivative instruments are reported in accumulated other comprehensive income (loss) and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported currently in earnings as a component of net investment income. If a hedge is de-designated or terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income (loss) is recognized into earnings over the period that the hedged item impacts earnings. For any hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income (loss) are recognized in earnings immediately. Derivative financial instruments that are entered into for hedging purposes are designated as such at the time RiverSource Life enters into the contract. For all derivative financial instruments that are designated for hedging activities, RiverSource Life formally documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also formally documents its risk management objectives and strategies for entering into the hedge transactions. RiverSource Life formally assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is not highly effective as a hedge, RiverSource Life will discontinue the application of hedge accounting. RiverSource Life currently has economic hedges that either do not qualify or are not designated as accounting hedges. For derivative financial instruments that do not qualify for hedge accounting, or are not designated as hedges, changes in fair value are reported in current period earnings generally as a component of net investment income. SEPARATE ACCOUNT ASSETS AND LIABILITIES Separate account assets and liabilities are primarily funds held for exclusive benefit of variable annuity and variable life insurance contractholders. RiverSource Life receives mortality and expense risk and other fees, guarantee fees and cost of insurance charges from the related accounts. FUTURE POLICY BENEFITS AND POLICY CLAIMS AND OTHER POLICYHOLDERS' FUNDS Fixed Annuities and Variable Annuity Guarantees Future policy benefits and policy claims and other policyholders' funds related to fixed annuities and variable annuity guarantees include liabilities for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, equity indexed annuities and fixed annuities in a payout status. Liabilities for fixed account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. RiverSource Life Insurance Company ------------------------------------------------------------------------------- The majority of the variable annuity contracts offered by RiverSource Life contain guaranteed minimum death benefit ("GMDB") provisions. When market values of the customer's accounts decline, the death benefit payable on a contract with a GMDB may exceed the contract accumulation value. RiverSource Life also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up ("GGU") benefits. In addition, RiverSource Life offers contracts containing guaranteed minimum income benefit ("GMIB"), guaranteed minimum withdrawal benefit ("GMWB") and guaranteed minimum accumulation benefit ("GMAB") provisions. In determining the liabilities for variable annuity death benefits and GMIB, RiverSource Life projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management will review and where appropriate, adjust its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management will review and update these assumptions annually in the third quarter of each year. The variable annuity death benefit 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. GMWB and GMAB provisions are considered embedded derivatives and are recorded at fair value. The fair value of these embedded derivatives is based on the present value of future benefits less applicable fees charged for the provision. Changes in fair value are reflected in death and other benefits for investment contracts and universal life-type insurance. Liabilities for equity indexed annuities are equal to the accumulation of host contract values covering guaranteed benefits and the market value of embedded equity options. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates, ranging from 4.6% to 9.5% at December 31, 2006, depending on year of issue, with an average rate of approximately 5.9%. Life, Disability Income and Long Term Care Insurance Future policy benefits and policy claims and other policyholders' funds related to life, DI and LTC insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI and LTC policies as claims are incurred in the future. Liabilities for fixed account values on fixed and variable universal life insurance are equal to accumulation values. Accumulation values are the cumulative gross deposits and credited interest less various contractual expense and mortality charges and less amounts withdrawn by policyholders. Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported DI and LTC claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These amounts are calculated based on claim continuance tables which estimate the likelihood an individual will continue to be eligible for benefits. Present values are calculated at interest rates established when claims are incurred. Anticipated claim continuance rates are based on established industry tables, adjusted as appropriate for RiverSource Life's experience. Interest rates used with DI claims range from 3.0% to 8.0% at December 31, 2006, with an average rate of 5.0%. Interest rates used with LTC claims range from 4.0% to 7.0% at December 31, 2006, with an average rate of 4.4%. 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. RiverSource Life Insurance Company ------------------------------------------------------------------------------- Liabilities for estimates of benefits that will become payable on future claims on term life, whole life, DI and LTC policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on RiverSource Life's experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. Anticipated interest rates for term and whole life range from 4.0% to 10.0% at December 31, 2006, depending on policy form, issue year and policy duration. Anticipated interest rates for DI are 7.5% at policy issue grading to 5.0% over five years. Anticipated discount rates for LTC are currently 5.4% at December 31, 2006 grading up to 9.4% over 40 years. Where applicable, benefit amounts expected to be recoverable from other insurers who share in the risk are separately recorded as reinsurance recoverable within receivables. RiverSource Life issues only non-participating life and health insurance policies, which do not pay dividends to policyholders from realized policy margins. REVENUES AND EXPENSES RiverSource Life's principal sources of revenue include premium revenues, net investment income, contractholder and policyholder charges and mortality and expense risk and other fees. Premium Revenues Premium revenues include premiums on traditional life, DI and LTC insurance products. Such premiums are net of reinsurance ceded and are recognized as revenue when due. Net Investment Income Net investment income primarily includes interest income earned on fixed maturity securities classified as Available-for-Sale; commercial mortgage loans on real estate and policy loans; mark-to-market of trading securities and certain derivatives; and pro-rata share of net income or loss of equity method investments in hedge funds. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale, and commercial mortgage loans on real estate so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. Contractholder and Policyholder Charges Contractholder and policyholder charges include certain charges assessed on annuities and fixed and variable universal life insurance, such as cost of insurance and administrative and surrender charges. Cost of insurance charges on fixed and variable universal life insurance are recognized as revenue when earned, whereas contract charges and surrender charges on annuities and universal and variable universal life insurance are recognized as revenue when collected. Mortality and Expense Risk and Other Fees Mortality and expense risk and other fees include risk, management and administration fees, which are generated directly and indirectly from RiverSource Life's separate account assets. RiverSource Life's management and other fees are generally computed as a contractual rate based on the underlying asset values and are generally received monthly. Net Realized Investment Gain Realized gains and losses are recognized using the specific identification method, on a trade date basis, and charges are recorded when securities are determined to be other-than-temporarily impaired. Death and Other Benefits Death and other benefits expenses consist of amounts paid under insurance policies and annuity contracts, including benefits paid under optional variable annuity guaranteed benefit riders. Amounts are net of benefit payments recovered or expected to be recovered under reinsurance contracts. Death and other benefits expenses also include amortization of DSIC. Interest Credited to Account Values Interest credited to account values represents amounts earned on fixed account values associated with fixed and variable universal life and annuity contracts and equity indexed annuities in accordance with contract provisions. Amortization of Deferred Acquisition Costs Direct sales commissions and other costs deferred as DAC associated with the sale of annuity and insurance products are amortized over time. For annuity and universal life 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. RiverSource Life Insurance Company ------------------------------------------------------------------------------- For annuity and universal life insurance products, the assumptions made in projecting future results and calculating the DAC balance and DAC amortization expense are management's best estimates. Management is required to update these assumptions whenever it appears that, based on actual experience or other evidence, earlier estimates should be revised. When assumptions are changed, the percentage of estimated gross profits used to amortize DAC might also change. A change in the required amortization percentage is applied retrospectively; an increase in amortization percentage will result in a decrease in the DAC balance and an increase in DAC amortization expense, while a decrease in amortization percentage will result in an increase in the DAC balance and a decrease in DAC amortization expense. The impact on results of operations of changing assumptions can be either positive or negative in any particular period and is reflected in the period in which such changes are made. For other life, DI and LTC insurance products, the assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities and, therefore are intended to provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC is not recoverable or if premium rates charged for the contract are changed. If management concludes that DAC is not recoverable, DAC is reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in RiverSource Life's consolidated results of operations. 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 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 interest rates are the primary factor used to project interest margins, while assumptions about rates credited to policyholder accounts and equity 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 annuity and insurance business during the DAC amortization period. The client asset value growth rate is the rate at which variable annuity and variable universal life insurance contract values are assumed to appreciate in the future. The rate is net of asset fees and anticipates a blend of equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. RiverSource Life uses a mean reversion method as a guideline in setting near-term client asset value growth rates based on a long-term view of financial market performance as well as actual historical performance. In periods when market performance results in actual contract value growth at a rate that is different than that assumed, RiverSource Life reassesses the near-term rate in order to continue to project its best estimate of long-term growth. The near-term growth rate is reviewed 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 near-term estimate will typically be less than in a period when growth rates fall short of near-term estimate. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. Separation Costs Separation costs generally consist of allocated financial advisor and employee retention program costs, re-branding and marketing costs and costs to separate and reestablish technology platforms related to the Separation. Other Insurance and Operating Expenses Other insurance and operating expenses primarily includes expenses allocated to RiverSource Life from its parent, Ameriprise Financial for RiverSource Life's share of compensation, professional and consultant fees, information technology and communications, facilities and equipment, advertising and promotion and legal and regulatory. Income Taxes As a result of the Separation of Ameriprise Financial from American Express, RiverSource Life was required to file a short period income tax return through September 30, 2005 which was included as part of the American Express consolidated income tax return for the year ending December 31, 2005. Additionally, RiverSource Life will not be able to file a consolidated U.S. federal income tax return with other members of Ameriprise Financial's affiliated group for five tax years following the Distribution. Therefore, RiverSource Life was also required to file a separate short period consolidated life insurance company income tax return for the period October 1, 2005 through December 31, 2005. RiverSource Life's provision for income taxes represents the net amount of income taxes that it expects to pay or receive from various taxing jurisdictions in connection with its operations. Inherent in the provision for income taxes are estimates and judgment regarding the tax treatment of certain offsets and credits. RiverSource Life Insurance Company ------------------------------------------------------------------------------- 3. RECENT ACCOUNTING PRONOUNCEMENTS In September 2006, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 157, "Fair Value Measurements" ("SFAS 157"). SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 applies under other accounting pronouncements that require or permit fair value measurements. Accordingly, SFAS 157 does not require any new fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Early adoption is permitted provided that the entity has not issued financial statements for any period within the year of adoption. The provisions of SFAS 157 are required to be applied prospectively as of the beginning of the fiscal year in which SFAS 157 is initially applied, except for certain financial instruments as defined in SFAS 157 which will require retrospective application of SFAS 157. The transition adjustment, if any, will be recognized as a cumulative-effect adjustment to the opening balance of retained earnings for the fiscal year of adoption. RiverSource Life is currently evaluating the impact of SFAS 157 on its consolidated financial condition and results of operations. In September 2006, the Securities and Exchange Commission ("SEC") issued Staff Accounting Bulletin ("SAB") No. 108, "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements" ("SAB 108"). SAB 108 addresses quantifying the financial statement effects of misstatements, specifically, how the effects of prior year uncorrected errors must be considered in quantifying misstatements in the current year financial statements. SAB 108 does not change the SEC staff's previous positions in SAB No. 99, "Materiality," regarding qualitative considerations in assessing the materiality of misstatements. SAB 108 was effective for fiscal years ending after November 15, 2006. The effect of adopting SAB 108 on RiverSource Life's consolidated financial condition and results of operations was insignificant. In June 2006, the FASB issued FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, "Accounting for Income Taxes." FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. RiverSource Life adopted FIN 48 as of January 1, 2007. The effect of adopting FIN 48 on RiverSource Life's consolidated financial condition and results of operations was not material. In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid Financial Instruments" ("SFAS 155"). SFAS 155 amends SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133") and SFAS No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities" ("SFAS 140"). SFAS 155: (i) permits fair value remeasurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation; (ii) clarifies which interest-only and principal-only strips are not subject to the requirements of SFAS 133; (iii) establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; (iv) clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and (v) amends SFAS 140 to eliminate the prohibition on a qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. RiverSource Life adopted SFAS 155 as of January 1, 2007. The effect of adopting SFAS 155 on its consolidated financial condition and results of operations is not expected to be significant. Effective January 1, 2006, RiverSource Life adopted SFAS No. 154, "Accounting Changes and Error Corrections," ("SFAS 154"). This Statement replaced APB Opinion No. 20, "Accounting Changes," and SFAS No. 3, "Reporting Accounting Changes in Interim Financial Statements," and changed the requirements for the accounting for and reporting of a change in accounting principle. The effect of adopting SFAS 154 on RiverSource Life's consolidated financial condition and results of operations was insignificant. Effective January 1, 2006, RiverSource Life adopted FASB Staff Position ("FSP") FAS 115-1 and FAS 124-1, "The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments" ("FSP FAS 115-1 and FAS 124-1"). FSP FAS 115-1 and FAS 124-1 address the determination as to when an investment is considered impaired, whether that impairment is other-than-temporary and the measurement of loss. It also includes accounting considerations subsequent to the recognition of an other-than-temporary impairment and requires certain disclosures about unrealized losses that have not been recognized as other-than-temporary impairments. The impact of the adoption of FSP FAS 115-1 and FAS 124-1 on RiverSource Life's consolidated financial condition and results of operations was not material. RiverSource Life Insurance Company ------------------------------------------------------------------------------- In September 2005, the American Institute of Certified Public Accountants ("AICPA") issued Statement of Position ("SOP") 05-1, "Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts," ("SOP 05-1"). SOP 05-1 provides clarifying guidance on accounting by insurance enterprises for DAC associated with any insurance or annuity contract that is internally replaced with another contract or significantly modified. SOP 05-1 is effective for transactions occurring in fiscal years beginning after December 15, 2006. RiverSource Life has accounted for many of these transactions as contract continuations and has continued amortization of existing DAC against revenue from the new or modified contract. In addition, RiverSource Life has not anticipated these transactions in establishing amortization periods or other DAC valuation assumptions. Many of these transactions no longer qualify as continuations under SOP 05-1. Effective with RiverSource Life's adoption of SOP 05-1 as of January 1, 2007, RiverSource Life will account for such transactions as contract terminations which will result in accelerated DAC amortization. As a result of adopting SOP 05-1, RiverSource Life has determined that in the first quarter of 2007 it will record as a cumulative change in accounting principle a pretax reduction to DAC of approximately $210 million and an after-tax decrease to retained earnings of approximately $137 million. The adoption of SOP 05-1 is also expected to result in an increase in DAC amortization in 2007. The expected increase to amortization expense may vary depending upon future changes in underlying valuation assumptions. Effective January 1, 2004, RiverSource Life adopted SOP 03-1, "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts" ("SOP 03-1"). SOP 03-1 provides guidance on; (i) the classification and valuation of long-duration contract liabilities; (ii) the accounting for sales inducements; and (iii) separate account presentation and valuation. The adoption of SOP 03-1 resulted in a cumulative effect of accounting change that reduced first quarter 2004 results by $71 million ($109 million pretax). The cumulative effect of accounting change consisted of: (i) $43 million pretax from establishing additional liabilities for certain variable annuity guaranteed benefits ($33 million) and from considering these liabilities in valuing DAC and DSIC associated with those contracts ($10 million); and (ii) $66 million pretax from establishing additional liabilities for certain variable universal life and single pay universal life insurance contracts under which contractual costs of insurance charges are expected to be less than future death benefits ($92 million) and from considering these liabilities in valuing DAC associated with those contracts ($26 million offset). Prior to RiverSource Life's adoption of SOP 03-1, amounts paid in excess of contract value were expensed when payable. Amounts expensed in 2004 to establish and maintain additional liabilities for certain variable annuity guaranteed benefits were $53 million (of which $33 million was part of the adoption charges described previously). RiverSource Life's accounting for separate accounts was already consistent with the provisions of SOP 03-1 and, therefore, there was no impact related to this requirement. The AICPA released a series of technical practice aids ("TPAs") in September 2004, which provide additional guidance related to, among other things, the definition of an insurance benefit feature and the definition of policy assessments in determining benefit liabilities, as described within SOP 03-1. The TPAs did not have a material effect on RiverSource Life's calculation of liabilities that were recorded in the first quarter of 2004 upon adoption of SOP 03-1. 4. INVESTMENTS
AVAILABLE-FOR-SALE SECURITIES The following is a summary of Available-for-Sale securities by type: --------------------------------------------------------------------------------------------------------------- GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR DECEMBER 31, 2006 (IN MILLIONS) COST GAINS LOSSES VALUE --------------------------------------------------------------------------------------------------------------- Fixed maturities: Corporate debt securities $12,232 $ 119 $ (262) $12,089 Mortgage and other asset-backed securities 9,398 27 (175) 9,250 Foreign corporate bonds and obligations 3,080 39 (68) 3,051 U.S. government and agencies obligations 295 13 (5) 303 State and municipal obligations 165 4 (4) 165 Foreign government bonds and obligations 117 18 -- 135 Structured investments(a) 2 -- -- 2 --------------------------------------------------------------------------------------------------------------- Total fixed maturities 25,289 220 (514) 24,995 Common and preferred stocks 30 1 -- 31 --------------------------------------------------------------------------------------------------------------- Total $25,319 $ 221 $ (514) $25,026 =============================================================================================================== (a) Includes unconsolidated collateralized debt obligations.
RiverSource Life Insurance Company -------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------- GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR DECEMBER 31, 2005 (IN MILLIONS) COST GAINS LOSSES VALUE --------------------------------------------------------------------------------------------------------------- Fixed maturities: Corporate debt securities $13,319 $ 208 $ (199) $13,328 Mortgage and other asset-backed securities 10,805 46 (159) 10,692 Foreign corporate bonds and obligations 3,149 67 (55) 3,161 U.S. government and agencies obligations 300 16 (5) 311 State and municipal obligations 114 3 (3) 114 Foreign government bonds and obligations 128 17 -- 145 Structured investments(a) 2 -- -- 2 --------------------------------------------------------------------------------------------------------------- Total fixed maturities 27,817 357 (421) 27,753 Common and preferred stocks -- -- -- -- --------------------------------------------------------------------------------------------------------------- Total $27,817 $ 357 $ (421) $27,753 =============================================================================================================== (a) Includes unconsolidated collateralized debt obligations.
At December 31, 2006 and 2005, fixed maturity securities, excluding net unrealized appreciation and depreciation, comprised approximately 87% of RiverSource Life's total investments. These securities are rated by Moody's Investors Service, Inc. ("Moody's") and Standard & Poor's ("S&P"), except for approximately $1.2 billion and $1.0 billion of securities at December 31, 2006 and 2005, respectively, which are rated by RiverSource Investments, LLC's internal analysts using criteria similar to Moody's and S&P. Ratings on investment grade securities are presented using S&P's convention and, if the two agencies' ratings differ, the lower rating is used. A summary by rating, excluding net unrealized appreciation and depreciation, on December 31 is as follows:
RATING 2006 2005 ------------------------------------------------------------------------------------------------- AAA 38% 40% AA 9 6 A 19 21 BBB 27 26 Below investment grade 7 7 ------------------------------------------------------------------------------------------------- Total 100% 100% =================================================================================================
At December 31, 2006 and 2005, approximately 47% of the securities rated AAA are GNMA, FNMA and FHLMC mortgage-backed securities. No holdings of any other issuer were greater than 10% of stockholder's equity. The following table provides information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2006:
(IN MILLIONS) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL -------------------------------------------------------------------------------------------------------------------------------- FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED DESCRIPTION OF SECURITIES: VALUE LOSSES VALUE LOSSES VALUE LOSSES -------------------------------------------------------------------------------------------------------------------------------- Corporate debt securities $ 1,166 $ (16) $ 7,680 $ (246) $ 8,846 $ (262) Mortgage and other asset-backed securities 862 (5) 6,616 (170) 7,478 (175) Foreign corporate bonds and obligations 196 (3) 1,834 (65) 2,030 (68) U.S. government and agencies obligations 5 -- 214 (5) 219 (5) State and municipal obligations 3 -- 81 (4) 84 (4) Foreign government bonds and obligations -- -- 3 -- 3 -- Structured investments 1 -- -- -- 1 -- -------------------------------------------------------------------------------------------------------------------------------- Total $ 2,233 $ (24) $16,428 $ (490) $18,661 $ (514) ================================================================================================================================
The following table provides information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2005:
(IN MILLIONS) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL -------------------------------------------------------------------------------------------------------------------------------- FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED DESCRIPTION OF SECURITIES: VALUE LOSSES VALUE LOSSES VALUE LOSSES -------------------------------------------------------------------------------------------------------------------------------- Corporate debt securities $ 6,184 $ (133) $ 1,619 $ (66) $ 7,803 $ (199) Mortgage and other asset-backed securities 6,002 (88) 2,059 (71) 8,061 (159) Foreign corporate bonds and obligations 1,204 (31) 535 (24) 1,739 (55) U.S. government and agencies obligations 149 (3) 72 (2) 221 (5) State and municipal obligations 67 (2) 15 (1) 82 (3) Foreign government bonds and obligations 13 -- -- -- 13 -- Structured investments 2 -- -- -- 2 -- -------------------------------------------------------------------------------------------------------------------------------- Total $13,621 $ (257) $ 4,300 $ (164) $17,921 $ (421) ================================================================================================================================
RiverSource Life Insurance Company ------------------------------------------------------------------------------- In evaluating potential other-than-temporary impairments, RiverSource Life considers the extent to which amortized costs exceed fair value and the duration of that difference. A key metric in performing this evaluation is the ratio of fair value to amortized cost. The following table summarizes the unrealized losses by ratio of fair value to amortized cost as of December 31, 2006:
(IN MILLIONS, EXCEPT NUMBER OF SECURITIES) LESS THAN 12 MONTHS 12 MONTHS OR MORE TOTAL ----------------------------------------------------------------------------------------------------------------------------------- GROSS GROSS GROSS RATIO OF FAIR VALUE TO NUMBER OF FAIR UNREALIZED NUMBER OF FAIR UNREALIZED NUMBER OF FAIR UNREALIZED AMORTIZED COST SECURITIES VALUE LOSSES SECURITIES VALUE LOSSES SECURITIES VALUE LOSSES ----------------------------------------------------------------------------------------------------------------------------------- 95% - 100% 178 $ 2,233 $ (24) 657 $15,304 $ (407) 835 $17,537 $ (431) 90% - 95% -- -- -- 59 1,035 (69) 59 1,035 (69) 80% - 90% -- -- -- 6 89 (14) 6 89 (14) ----------------------------------------------------------------------------------------------------------------------------------- Total 178 $ 2,233 $ (24) 722 $16,428 $ (490) 900 $18,661 $ (514) ===================================================================================================================================
A majority of the gross unrealized losses related to corporate debt securities and substantially all of the gross unrealized losses related to mortgage and other asset-backed securities were attributable to changes in interest rates. A portion of the gross unrealized losses particularly related to corporate debt securities was also attributed to credit spreads and specific issuer credit events. As noted in the table above, a significant portion of the gross unrealized losses relates to securities that have a fair value to amortized cost ratio of 95% or above resulting in an overall 97% ratio of fair value to amortized cost for all securities with an unrealized loss. From an overall perspective, the gross unrealized losses were not concentrated in any individual industries or with any individual securities. However, the securities with a fair value to amortized cost ratio of 80%-90% primarily relate to the auto and paper industries. The largest unrealized loss associated with an individual issuer, excluding GNMA, FNMA and FHLMC mortgage-backed securities, was $5 million. The securities related to this issuer have a fair value to amortized cost ratio of 95%-100% and have been in an unrealized loss position for more than 12 months. There were no securities with a fair value to amortized cost ratio less than 80% in the portfolio. RiverSource Life monitors the investments and metrics described previously on a quarterly basis to identify and evaluate investments that have indications of possible other-than-temporary impairments. See the Investments section of Note 2 for information regarding RiverSource Life's policy for determining when an investment's decline in value is other-than-temporary. As stated earlier, RiverSource Life's ongoing monitoring process has revealed that a significant portion of the gross unrealized losses on its Available-for-Sale securities are attributable to changes in interest rates. Additionally, RiverSource Life has the ability and intent to hold these securities for a time sufficient to recover its amortized cost and has, therefore, concluded that none had other-than-temporary impairment at December 31, 2006. 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 (holding gains (losses)); (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales and other-than-temporary impairments of Available-for-Sale securities (reclassification of realized gains (losses)) and (iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, DSIC and annuity liabilities to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. The following table presents the components of the change in net unrealized securities gains (losses), net of tax, included in other comprehensive income (loss):
(IN MILLIONS) 2006 2005 2004 ------------------------------------------------------------------------------------------------------------ Holding (losses) gains, net of tax of $63, $261 and $23, respectively $(116) $(485) $ 42 Reclassification of realized gains, net of tax of $17, $17 and $11, respectively (33) (32) (20) DAC, net of tax of $15, $28 and $3, respectively 29 53 6 DSIC, net of tax of $2, $5 and $4, respectively 3 8 (7) Fixed annuity liabilities, net of tax of $22, $3 and $30, respectively 40 (5) (56) ------------------------------------------------------------------------------------------------------------ Net unrealized securities losses $ (77) $(461) $(35) ============================================================================================================
RiverSource Life Insurance Company ------------------------------------------------------------------------------- Available-for-Sale securities by maturity at December 31, 2006 were as follows:
AMORTIZED FAIR (IN MILLIONS) COST VALUE ---------------------------------------------------------------------------------- Due within one year $ 521 $ 522 Due after one year through five years 6,625 6,592 Due after five years through 10 years 7,558 7,395 Due after 10 years 1,185 1,234 ---------------------------------------------------------------------------------- 15,889 15,743 Mortgage and other asset-backed securities 9,398 9,250 Structured investments 2 2 Common and preferred stocks 30 31 ---------------------------------------------------------------------------------- Total $25,319 $25,026 ==================================================================================
The expected payments on mortgage and other asset-backed securities and structured investments may not coincide with their contractual maturities. As such, these securities, as well as common and preferred stocks, were not included in the maturities distribution. The table below includes sales, maturities, and purchases of investments classified as Available-for-Sale for the years ended December 31:
(IN MILLIONS) 2006 2005 2004 ----------------------------------------------------------------------------------------------- Sales $ 1,897 $ 3,124 $ 1,603 Maturities, sinking fund payments and calls $ 2,014 $ 2,242 $ 1,931 Purchases $(1,433) $(5,780) $(4,393)
Net realized gains and losses on Available-for-Sale securities, using the specific identification method, are noted in the following table for the years ended December 31:
(IN MILLIONS) 2006 2005 2004 ----------------------------------------------------------------------------------------------- Gross realized gains from sales $ 60 $ 108 $ 48 Gross realized losses from sales $ (10) $ (39) $ (18) Other-than-temporary impairments $ -- $ (19) $ --
The $19 million of other-than-temporary impairments in 2005 primarily related to corporate debt securities within the auto industry which were downgraded in 2005 and subsequently deteriorated throughout the year in terms of their fair value to amortized cost ratio. During the second quarter of 2005, RiverSource Life sold all of its retained interest in a CDO securitization trust and realized a net pretax gain of $25 million. At December 31, 2006 and 2005, bonds carried at $18 and $16 million, respectively, were on deposit with various states as required by law. COMMERCIAL MORTGAGE LOANS ON REAL ESTATE AND SYNDICATED LOANS, NET The following is a summary of commercial mortgage loans on real estate and syndicated loans at December 31:
(IN MILLIONS) 2006 2005 ---------------------------------------------------------------------------------- Commercial mortgage loans on real estate $ 2,827 $ 2,883 Less: allowance for loan losses (37) (41) ---------------------------------------------------------------------------------- Commercial mortgage loans on real estate, net $ 2,790 $ 2,842 ================================================================================== Syndicated loans $ 112 $ 131 Less: allowance for loan losses (4) (4) ---------------------------------------------------------------------------------- Net syndicated loans $ 108 $ 127 ==================================================================================
Commercial mortgage loans are first mortgages on real estate. RiverSource Life holds the mortgage documents, which gives it the right to take possession of the property if the borrower fails to perform according to the terms of the agreements. Commercial mortgage loan fundings are restricted by state insurance regulatory authorities to 80% or less of the market value of the real estate at the time of origination of the loan. Commitments to fund mortgages are made in the ordinary course of business. The funding commitments at December 31, 2006 and 2005 approximate fair value. Syndicated loans, which are included as a component of other investments, represent loans in which a group of lenders provide funds to borrowers. There is usually one originating lender which retains a small percentage and syndicates the remainder. RiverSource Life Insurance Company ------------------------------------------------------------------------------- At December 31, 2006 and 2005, RiverSource Life's recorded investment in impaired commercial mortgage loans on real estate was nil and $14 million, respectively, with related allowances for commercial mortgage loan losses of nil and $4 million, respectively. During 2006 and 2005, the average recorded investment in impaired commercial mortgage loans on real estate was $3 million and $6 million, respectively. RiverSource Life recognized nil, nil, and $1 million of interest income related to impaired commercial mortgage loans on real estate for the years ended December 31, 2006, 2005 and 2004, respectively. The balances of and changes in the allowance for commercial mortgage loan losses were as follows:
(IN MILLIONS) 2006 2005 2004 -------------------------------------------------------------------------------- BALANCE AT JANUARY 1 $41 $45 $47 Provision for commercial mortgage loan losses -- -- 9 Foreclosures, write-offs and loan sales (4) (4) (11) -------------------------------------------------------------------------------- BALANCE AT DECEMBER 31 $37 $41 $45 ================================================================================
Concentrations of credit risk of commercial mortgage loans on real estate by region at December 31 were:
2006 2005 ----------------------------------------------------------------------------------------------------------------- ON-BALANCE FUNDING ON-BALANCE FUNDING COMMERCIAL MORTGAGE LOANS BY U.S. REGION (IN MILLIONS) SHEET COMMITMENTS SHEET COMMITMENTS ----------------------------------------------------------------------------------------------------------------- Atlantic $ 859 $ 41 $ 852 $ 22 North Central 739 22 843 6 Pacific 397 15 364 27 Mountain 298 13 352 9 South Central 337 1 308 22 New England 197 2 164 21 ----------------------------------------------------------------------------------------------------------------- 2,827 94 2,883 107 Less: allowance for loan losses (37) -- (41) -- ----------------------------------------------------------------------------------------------------------------- Total $2,790 $ 94 $2,842 $ 107 =================================================================================================================
Concentrations of credit risk of commercial mortgage loans on real estate by property type at December 31 were:
2006 2005 ----------------------------------------------------------------------------------------------------------------- ON-BALANCE FUNDING ON-BALANCE FUNDING COMMERCIAL MORTGAGE LOANS BY PROPERTY TYPE (IN MILLIONS) SHEET COMMITMENTS SHEET COMMITMENTS ----------------------------------------------------------------------------------------------------------------- Office buildings $ 962 $ 4 $1,048 $ 36 Shopping centers and retail 718 71 704 37 Apartments 470 2 454 11 Industrial buildings 458 12 454 12 Hotels and motels 89 4 92 6 Medical buildings 45 -- 47 3 Mixed use 44 -- 39 -- Retirement homes -- -- 5 -- Other 41 1 40 2 ----------------------------------------------------------------------------------------------------------------- 2,827 94 2,883 107 Less: allowance for loan losses (37) -- (41) -- ----------------------------------------------------------------------------------------------------------------- Total $2,790 $ 94 $2,842 $ 107 =================================================================================================================
Commitments to fund commercial mortgages were made in the ordinary course of business. The funding commitments at December 31, 2006 and 2005 approximate fair value. SOURCES OF INVESTMENT INCOME AND NET REALIZED INVESTMENT GAIN Net investment income for the years ended December 31 is summarized as follows:
(IN MILLIONS) 2006 2005 2004 -------------------------------------------------------------------------------- Income on fixed maturities $1,408 $1,449 $1,451 Income on commercial mortgage loans on real estate 181 197 221 Trading securities and other investments 89 164 138 -------------------------------------------------------------------------------- 1,678 1,810 1,810 Less: investment expenses 17 21 35 -------------------------------------------------------------------------------- Total $1,661 $1,789 $1,775 ================================================================================
RiverSource Life Insurance Company ------------------------------------------------------------------------------- Net realized investment gain for the years ended December 31 is summarized as follows:
(IN MILLIONS) 2006 2005 2004 -------------------------------------------------------------------------------- Fixed maturities $ 50 $ 50 $ 31 Commercial mortgage loans on real estate 1 (2) (3) Trading securities and other investments -- -- (1) -------------------------------------------------------------------------------- Total $ 51 $ 48 $ 27 ================================================================================
5. VARIABLE INTEREST ENTITIES During the years ended December 31, 2005 and 2004, RiverSource Life consolidated three secured loan trusts ("SLTs") which provided returns to investors primarily based on the performance of an underlying portfolio of high-yield loans and which were managed by an affiliate. One SLT was liquidated in 2004, resulting in a cumulative pretax charge of $24 million. An additional $4 million pretax charge was incurred in 2004 due to the expected liquidation of the two remaining SLTs in 2005. Those remaining SLTs were liquidated in 2005, resulting in a $14 million pretax gain for the year ended December 31, 2005. Consolidated results of operations for the year ended December 31, 2004 included non-cash charges related to the liquidated SLTs of $28 million that included a $24 million charge related to the complete liquidation of an SLT in 2004. RiverSource Life has other significant variable interests for which it is not considered the primary beneficiary and, therefore, does not consolidate. These interests are represented by carrying values of $2 million of CDO residual tranches managed by an affiliate where RiverSource Life is not the primary beneficiary. RiverSource Life's maximum exposure to loss as a result of its investment in the CDO residual tranches is represented by the carrying value. 6. DEFERRED ACQUISITION COSTS AND DEFERRED SALES INDUCEMENT COSTS The balances of and changes in DAC were as follows:
(IN MILLIONS) 2006 2005 2004 -------------------------------------------------------------------------------- Balance, beginning of year $4,036 $3,638 $3,336 Impact of SOP 03-1 -- -- 20 Capitalization of acquisition costs 687 633 534 Amortization, excluding impact of changes in assumptions (409) (383) (341) Amortization, impact of annual third quarter changes in DAC-related assumptions 38 67 24 Amortization, impact of other quarter changes in DAC-related assumptions(a) 15 -- 56 Impact of changes in net unrealized securities losses 44 81 9 -------------------------------------------------------------------------------- Balance, end of year $4,411 $4,036 $3,638 ================================================================================ (a) Amount in 2004 was primarily related to a $66 million reduction in DAC amortization expense to reflect the lengthening of the amortization periods for certain annuity and life insurance products impacted by RiverSource Life's adoption of SOP 03-1 on January 1, 2004, partially offset by a $10 million increase in amortization expense due to a LTC DAC valuation system conversion.
The balances of and changes in DSIC were as follows:
(IN MILLIONS) 2006 2005 2004 -------------------------------------------------------------------------------- Balance, beginning of year $ 370 $ 303 $ 279 Impact of SOP 03-1 -- -- (3) Capitalization of sales inducements 126 94 71 Amortization (48) (40) (34) Impact of changes in net unrealized securities losses (gains) 4 13 (10) -------------------------------------------------------------------------------- Balance, end of year $ 452 $ 370 $ 303 ================================================================================
7. LINES OF CREDIT RiverSource Life has available a committed line of credit with Ameriprise Financial aggregating $200 million. The interest rate for any borrowings is established by reference to LIBOR plus 28 basis points. There were no amounts outstanding on this line of credit at December 31, 2006. Also, RiverSource Life has a collateral loan agreement with Ameriprise Financial aggregating up to $75 million. The interest rate for any borrowings is equal to the preceding month's effective new money rate for RiverSource Life's permanent investments. There were no amounts outstanding at December 31, 2006 and 2005. RiverSource Life Insurance Company ------------------------------------------------------------------------------- 8. VARIABLE ANNUITY GUARANTEES The majority of the variable annuity contracts offered by RiverSource Life contain GMDB provisions. RiverSource Life also offers GGU provisions on variable annuities with death benefit provisions and contracts containing GMIB provisions. RiverSource Life has established additional liabilities for these variable annuity death benefits and GMIB provisions. The variable annuity contracts offered by RiverSource Life may also contain GMWB and GMAB provisions, which are considered embedded derivatives. RiverSource Life has established additional liabilities for these embedded derivatives at fair value. 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 financial market performance. Most of the GMWB in-force guarantee that over a period of approximately 14 years the client can withdraw an amount equal to what has been paid into the contract, regardless of the performance of the underlying funds. In May 2006, RiverSource Life began offering an enhanced withdrawal benefit that gives policyholders a choice to withdraw 6% per year for the life of the policyholder or 7% per year until the amount withdrawn is equal to the guaranteed amount. At issue, the guaranteed amount is equal to the amount deposited, but the guarantee can be increased annually to the account value (a "step-up") in the case of favorable market performance. Variable annuity contract owners age 79 or younger at contract issue can also obtain the principal-back guarantee by purchasing the optional GMAB rider for an additional charge, which provides a guaranteed contract value at the end of a 10-year waiting period. The following table provides summary information related to all variable annuity guarantees for which RiverSource Life has established additional liabilities as of December 31:
----------------------------------------------------------------------------------------------------------------------------- VARIABLE ANNUITY GUARANTEES BY BENEFIT TYPE(1) (IN MILLIONS, EXCEPT AGE) 2006 2005 ----------------------------------------------------------------------------------------------------------------------------- CONTRACTS WITH GMDB PROVIDING FOR RETURN OF PREMIUM: Total contract value $17,418 $ 9,107 Contract value in separate accounts $15,859 $ 7,410 Net amount at risk(2) $ 13 $ 17 Weighted average attained age 61 60 ----------------------------------------------------------------------------------------------------------------------------- CONTRACTS WITH GMDB PROVIDING FOR SIX-YEAR RESET: Total contract value $23,544 $24,608 Contract value in separate accounts $20,058 $20,362 Net amount at risk(2) $ 227 $ 763 Weighted average attained age 61 61 ----------------------------------------------------------------------------------------------------------------------------- CONTRACTS WITH GMDB PROVIDING FOR ONE-YEAR RATCHET: Total contract value $ 6,729 $ 5,129 Contract value in separate accounts $ 5,902 $ 4,211 Net amount at risk(2) $ 26 $ 45 Weighted average attained age 61 61 ----------------------------------------------------------------------------------------------------------------------------- CONTRACTS WITH GMDB PROVIDING FOR FIVE-YEAR RATCHET: Total contract value $ 907 $ 537 Contract value in separate accounts $ 870 $ 502 Net amount at risk(2) $ -- $ -- Weighted average attained age 57 56 ----------------------------------------------------------------------------------------------------------------------------- CONTRACTS WITH OTHER GMDB: Total contract value $ 586 $ 456 Contract value in separate accounts $ 530 $ 390 Net amount at risk(2) $ 11 $ 16 Weighted average attained age 64 63 ----------------------------------------------------------------------------------------------------------------------------- CONTRACTS WITH GGU DEATH BENEFIT: Total contract value $ 811 $ 620 Contract value in separate accounts $ 730 $ 536 Net amount at risk(2) $ 62 $ 35 Weighted average attained age 62 61 ----------------------------------------------------------------------------------------------------------------------------- CONTRACTS WITH GMIB: Total contract value $ 928 $ 793 Contract value in separate accounts $ 853 $ 712 Net amount at risk(2) $ 14 $ 16 Weighted average attained age 61 60 ----------------------------------------------------------------------------------------------------------------------------- CONTRACTS WITH GMWB: Total contract value $ 4,791 $ 2,542 Contract value in separate accounts $ 4,761 $ 2,510 Benefit amount in excess of account value $ -- $ 1 Weighted average attained age 61 60 -----------------------------------------------------------------------------------------------------------------------------
RiverSource Life Insurance Company -------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------- VARIABLE ANNUITY GUARANTEES BY BENEFIT TYPE(1) (CONTINUED) (IN MILLIONS, EXCEPT AGE) 2006 2005 ----------------------------------------------------------------------------------------------------------------------------- CONTRACTS WITH GMWB FOR LIFE: Total contract value $ 2,396 $ -- Contract value in separate accounts $ 2,349 $ -- Benefit amount in excess of account value $ -- $ -- Weighted average attained age 63 -- CONTRACTS WITH GMAB: Total contract value $ 1,350 $ 161 Contract value in separate accounts $ 1,340 $ 161 Benefit amount in excess of account value $ -- $ 1 Weighted average attained age 55 56 ----------------------------------------------------------------------------------------------------------------------------- (1) Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. (2) Represents current death benefit less total contract value for GMDB, amount of gross up for GGU and accumulated guaranteed minimum benefit base less total contract value for GMIB and assumes the actuarially remote scenario that all claims become payable on the same day. For the year ended December 31, 2006, additional liabilities (assets) and incurred claims (adjustments) were: (IN MILLIONS) GMDB & GGU GMIB GMWB GMAB ----------------------------------------------------------------------------------------------------------------------------- Liability balance at January 1 $16 $ 4 $ 9 $ 1 Reported claims 8 -- -- -- Liability (asset) balance at December 31 26 5 (12) (5) Incurred claims (adjustments) (sum of reported and change in liability (assets)) 18 1 (21) (6) For the year ended December 31, 2005, additional liabilities and incurred claims (adjustments) were: (IN MILLIONS) GMDB & GGU GMIB GMWB GMAB ----------------------------------------------------------------------------------------------------------------------------- Liability balance at January 1 $29 $ 3 $-- $-- Reported claims 12 -- -- -- Liability balance at December 31 16 4 9 1 Incurred claims (adjustments) (sum of reported and change in liability) (1) 1 9 1
The liabilities for guaranteed benefits are supported by general account assets. Changes in these liabilities are included in death and other benefits. Contract values in separate accounts were invested in various equity, bond and other funds as directed by the contractholder. No gains or losses were recognized on assets transferred to separate accounts for the periods presented. 9. FUTURE POLICY BENEFITS, POLICY CLAIMS AND OTHER POLICYHOLDERS' FUNDS AND SEPARATE ACCOUNT LIABILITIES Future policy benefits and policy claims and other policyholders' funds as of December 31, consisted of the following:
(IN MILLIONS) 2006 2005 ---------------------------------------------------------------------------------- Fixed annuities $16,841 $18,793 Equity indexed annuities accumulated host values 267 296 Equity indexed annuities embedded derivative reserve 50 38 Variable annuities, with fixed sub-accounts 5,975 6,999 GMWB variable annuity guarantees (12) 9 Other variable annuity guarantees 26 21 ---------------------------------------------------------------------------------- Total annuities 23,147 26,156 VUL/UL insurance contract fixed sub-account 2,562 2,552 Other life, disability income and long term care insurance 3,852 3,604 ---------------------------------------------------------------------------------- Total future policy benefits 29,561 32,312 Policy claims and other policyholders' funds 93 90 ---------------------------------------------------------------------------------- Total future policy benefits and policy claims and other policyholders' funds $29,654 $32,402 ==================================================================================
Separate account liabilities as of December 31, consisted of the following:
(IN MILLIONS) 2006 2005 ---------------------------------------------------------------------------------- Variable annuity contract reserves $43,515 $33,155 VUL insurance contract reserves 5,772 4,775 ---------------------------------------------------------------------------------- Total separate account liabilities $49,287 $37,930 ==================================================================================
RiverSource Life Insurance Company ------------------------------------------------------------------------------- Fixed Annuities Fixed annuities include both deferred and payout contracts. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. RiverSource Life generally invests the proceeds from the annuity payments in fixed rate securities. The interest rate risks under these obligations are partially hedged with derivative instruments. These derivatives are cash flow hedges of interest credited on forecasted sales rather than a hedge of in-force risk. These derivatives consisted of interest rate swaptions with a notional value of $1.2 billion at both December 31, 2006 and 2005. The fair value of these swaptions was $2 million and $8 million at December 31, 2006 and 2005, respectively. Equity Indexed Annuities The Index 500 Annuity, RiverSource Life's equity indexed annuity product, is a single premium deferred fixed annuity. The contract is issued with an initial term of seven years and interest earnings are linked to the S&P 500 Index. This annuity has a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. RiverSource Life generally invests the proceeds from the annuity deposits in fixed rate securities and hedges the equity risk with derivative instruments. The equity component of these annuities is considered an embedded derivative and is accounted for separately. The change in fair value of the embedded derivative reserve is reflected in interest credited to account values. As a means of economically hedging its obligation under the stock market return provision, RiverSource Life purchases and writes index options and enters into futures contracts. The changes in the fair value of these hedge derivatives are included in net investment income. The notional amounts and fair value assets (liabilities) of these options and futures as of December 31 were as follows:
2006 2005 -------------------------------------------------------------------------- NOTIONAL FAIR NOTIONAL FAIR (IN MILLIONS) AMOUNT VALUE AMOUNT VALUE -------------------------------------------------------------------------- Purchased options and futures $ 271 $ 40 $ 358 $ 30 Written options $ (67) $ (1) $(101) $ (1)
Variable Annuities Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders. Most of the variable annuity contracts issued by RiverSource Life contain one or more guaranteed benefits, including GMWB, GMAB, GMDB, GGU and GMIB provisions. The GMWB and GMAB provisions are considered embedded derivatives and are accounted for separately. The changes in fair values of these embedded derivative reserves are reflected in death and other benefits for investment contracts and universal life-type insurance. The negative reserve in GMWB at December 31, 2006 reflects that under current conditions and expectations, RiverSource Life believes the applicable fees charged for the rider will more than offset the future benefits paid to policyholders under the rider provisions. RiverSource Life does not currently hedge its risk under the GMAB, GMDB, GGU and GMIB provisions. The total value of variable annuity contracts with GMWB riders increased from $2.5 billion at December 31, 2005 to $7.2 billion at December 31, 2006. As a means of economically hedging its obligation under the GMWB provisions, RiverSource Life purchases structured equity put options, enters into interest rate swaps and trades equity futures contracts. The changes in the fair value of these hedge derivatives are included in net investment income. The notional amounts and fair value assets (liabilities) of these options, swaps and futures as of December 31, were as follows:
2006 2005 -------------------------------------------------------------------------- NOTIONAL FAIR NOTIONAL FAIR (IN MILLIONS) AMOUNT VALUE AMOUNT VALUE -------------------------------------------------------------------------- Purchased options $1,410 $ 171 $ 629 $ 95 Interest rate swaps $ 359 $ (1) $ -- $ -- Sold equity futures $ (111) $ -- $ -- $ --
Insurance Liabilities Variable universal life ("VUL") and universal life ("UL") is the largest group of policies written by RiverSource Life. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for VUL contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders. RiverSource Life also offers term and whole life insurance as well as disability products. RiverSource Life no longer offers long term care 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. RiverSource Life Insurance Company ------------------------------------------------------------------------------- 10. INCOME TAXES RiverSource Life qualifies as a life insurance company for federal income tax purposes. As such, RiverSource Life is subject to the Internal Revenue Code provisions applicable to life insurance companies. Provisions (benefits) for income taxes for the years ended December 31 were:
(IN MILLIONS) 2006 2005 2004 ---------------------------------------------------------------------------------------------- Current income tax: Federal $66 $56 $160 State 3 4 (4) ---------------------------------------------------------------------------------------------- Total current income tax 69 60 156 Deferred federal income tax 123 122 70 ---------------------------------------------------------------------------------------------- Income tax provision $192 $182 $226 ==============================================================================================
The principal reasons that the aggregate income tax provision is different from that computed by using the U.S. statutory rate of 35% for the years ended December 31 are as follows:
2006 2005 2004 ---------------------------------------------------------------------------------------------- Tax at U.S. statutory rate 35.0% 35.0% 35.0% Changes in taxes resulting from: Tax-exempt interest and dividend income (6.5) (9.4) (4.0) State taxes, net of federal benefit 0.3 0.4 (0.3) Taxes applicable to prior years -- 3.2 (2.6) Other, net (0.5) (0.8) 0.4 ---------------------------------------------------------------------------------------------- Income tax provision 28.3% 28.4% 28.5% ==============================================================================================
Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for U.S. GAAP reporting versus income tax return purposes. The significant components of RiverSource Life's deferred income tax assets and liabilities as of December 31, 2006 and 2005 are reflected in the following table:
(IN MILLIONS) 2006 2005 ---------------------------------------------------------------------------------- Deferred income tax assets: Liabilities for future policy benefits $1,146 $1,102 Investment related 75 70 Net unrealized losses on Available-for Sale securities and derivatives 115 71 Other 45 62 ---------------------------------------------------------------------------------- Gross deferred income tax assets 1,381 1,305 Deferred income tax liabilities: Deferred acquisition costs 1,253 1,154 Deferred sales inducement costs 158 130 Other 60 30 ---------------------------------------------------------------------------------- Gross deferred income tax liabilities 1,471 1,314 ---------------------------------------------------------------------------------- Net deferred income tax liabilities $ 90 $ 9 ==================================================================================
A portion of RiverSource Life's income earned prior to 1984 was not subject to current taxation but was accumulated, for tax purposes, in a "policyholders' surplus account." At December 31, 2006, RiverSource Life no longer had a policyholders' surplus account balance. The American Jobs Creation Act of 2004, which was enacted on October 22, 2004, provides a two-year suspension of the tax on policyholders' surplus account distributions. RiverSource Life has made distributions of $1 million in 2006, which will not be subject to tax under the two-year suspension. Previously, the policyholders' surplus account was only taxable if dividends to shareholders exceeded the shareholders' surplus account and/or RiverSource Life is liquidated. Deferred income taxes had not been previously established. RiverSource Life Insurance Company ------------------------------------------------------------------------------- RiverSource Life is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized. Included in RiverSource Life's deferred tax assets is a significant deferred tax asset relating to capital losses realized for tax return purposes and capital losses that have been recognized for financial statement purposes but not yet for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. RiverSource Life has $156 million in capital loss carryforwards that expire December 31, 2009 for which the deferred tax benefit is reflected in the investment related deferred tax assets, net of other related items. Additionally, RiverSource Life has $45 million in capital loss carryforwards that expire December 31, 2009 as a result of the 2005 first short period tax return filed with American Express. Based on analysis of RiverSource Life's tax position, management believes it is more likely than not that the results of future operations and implementation of tax planning strategies will generate sufficient taxable income to enable RiverSource Life to utilize all of its deferred tax assets. Accordingly, no valuation allowance for deferred tax assets has been established as of December 31, 2006 and 2005. As a result of the Distribution, RiverSource Life was required to file a short period income tax return through September 30, 2005 which was included as part of the American Express consolidated income tax return for the year ended December 31, 2005. Additionally, RiverSource Life will not be able to file a consolidated U.S. federal income tax return with other members of the Ameriprise Financial affiliated group for five tax years following the Distribution. Therefore, RiverSource Life was also required to file a separate short period income tax return for the period October 1, 2005 through December 31, 2005. The items comprising other comprehensive loss in the Consolidated Statements of Shareholder's Equity are presented net of the following income tax benefit amounts:
(IN MILLIONS) 2006 2005 2004 ---------------------------------------------------------------------------------------------- Net unrealized securities losses $ 41 $ 248 $ 19 Net unrealized derivative losses 1 6 12 ---------------------------------------------------------------------------------------------- Net income tax benefit $ 42 $ 254 $ 31 ==============================================================================================
11. 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 $1.2 billion and $925 million as of December 31, 2006 and 2005, respectively. In addition, dividends or distributions, whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceed the greater of the previous year's statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as "extraordinary dividends." Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. For 2007, dividends or distributions in excess of $469 million would be extraordinary. 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) 2006 2005 2004 ---------------------------------------------------------------------------------------------- Statutory net gain from operations $ 469 $ 327 $ 438 Statutory net income 514 339 438 Statutory capital and surplus 3,258 2,942 2,277
12. RELATED PARTY TRANSACTIONS Ameriprise Financial was the investment manager for the proprietary mutual funds used as investment options by RiverSource Life's variable annuity and variable life insurance contract owners for the period from the third quarter of 2003 through the third quarter of 2005. In the fourth quarter of 2005, RiverSource Investments, LLC replaced Ameriprise Financial as the investment manager. RiverSource Life provides all fund management services, other than investment management and is compensated for the administrative services it provides. For the year ended December 31, 2006, RiverSource Life received $76 million from RiverSource Investments, LLC for administrative services RiverSource Life provided. For the year ended December 31, 2005, RiverSource Life received $56 million from Ameriprise Financial and $20 million from RiverSource Investments, LLC for services provided for the periods they each were investment managers. For the year ended December 31, 2004, RiverSource Life received $82 million from Ameriprise Financial for administrative services. RiverSource Life Insurance Company ------------------------------------------------------------------------------- RiverSource Life participates in the Ameriprise Financial Retirement Plan which covers all permanent employees age 21 and over who have met certain employment requirements. RiverSource Life contributions to the plan are based on participants' age, years of service and total compensation for the year. Funding of retirement costs for this plan complies with the applicable minimum funding requirements specified by ERISA. RiverSource Life's share of the total net periodic pension cost was approximately $1 million for each of the years ended December 31, 2006, 2005 and 2004. RiverSource Life participates in the Ameriprise Financial 2005 Incentive Compensation Plan. Employees, directors and independent contractors are eligible to receive incentive awards including stock options, restricted stock awards, restricted stock units, performance shares and similar awards designed to comply with the applicable federal regulations and laws of jurisdiction. The expense for incentive awards was $2 million in 2006, $1 million in 2005 and $1 million in 2004. RiverSource Life also participates in the defined contribution pension plans of Ameriprise Financial which cover all employees who have met certain employment requirements. RiverSource Life contributions to the plans are a percent of either each employee's eligible compensation or basic contributions. Costs of these plans charged to operations in 2006, 2005 and 2004 were $3 million, $2 million and $2 million, respectively. RiverSource Life participates in the defined benefit health care plans of Ameriprise Financial that provide health care and life insurance benefits to retired employees and retired financial advisors. The plans include participant contributions and service related eligibility requirements. Upon retirement, such employees are considered to have been employees of Ameriprise Financial. Ameriprise Financial expenses these benefits and allocates the expenses to its subsidiaries. The cost of these plans charged to operations in 2006, 2005 and 2004 was approximately $1 million each year. Charges by Ameriprise Financial and affiliated companies for use of joint facilities, technology support, marketing services and other services aggregated $755 million, $725 million and $601 million for 2006, 2005 and 2004, respectively. Certain of these costs are included in DAC. Expenses allocated to RiverSource Life may not be reflective of expenses that would have been incurred by RiverSource Life on a stand-alone basis. RiverSource Life paid $300 million of dividends to Ameriprise Financial during 2006, comprised of $100 million of extraordinary cash dividends in each of the second and third quarters of 2006 and $100 million of ordinary cash dividends in the fourth quarter of 2006. Prior to the payment of the extraordinary cash dividends, RiverSource Life made the required advance notices to the Minnesota Department of Commerce, its primary state regulator, and received responses stating there were no objections to the payment of these dividends. The ordinary cash dividends paid in the fourth quarter 2006 did not require prior notification and response from the Minnesota Department of Commerce. RiverSource Life of NY paid ordinary dividends to RiverSource Life during the second quarter of 2006 of $23 million. In connection with the Separation, RiverSource Life received a capital contribution of $650 million from Ameriprise Financial during the third quarter of 2005 to support its current financial strength ratings and to cover the allocated separation costs. During the fourth quarter of 2005, RiverSource Life approved and paid dividends to Ameriprise Financial of $380 million. Included in other liabilities at December 31, 2006 and 2005 are $1 million and $8 million, respectively, payable to Ameriprise Financial for federal income taxes. 13. REINSURANCE At December 31, 2006, 2005 and 2004, traditional life and universal life insurance in force aggregated $174.1 billion, $160.1 billion and $147.5 billion, respectively, of which $102.4 billion, $86.3 billion and $70.9 billion was reinsured at the respective year ends. Life insurance in force is reported on a statutory basis. RiverSource Life also reinsures a portion of the risks assumed under LTC policies. The effect of reinsurance on premiums for the years ended December 31, is as follows:
(IN MILLIONS) 2006 2005 2004 ---------------------------------------------------------------------------------------------- Direct premiums $ 561 $ 544 $ 508 Reinsurance assumed 3 2 4 Reinsurance ceded (170) (176) (160) ---------------------------------------------------------------------------------------------- Net premiums $ 394 $ 370 $ 352 ==============================================================================================
Reinsurance recovered from reinsurers amounted to $115 million, $106 million and $73 million, for the years ended December 31, 2006, 2005 and 2004, respectively. Reinsurance contracts do not relieve RiverSource Life from its primary obligation to policyholders. RiverSource Life Insurance Company ------------------------------------------------------------------------------- 14. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Derivative financial instruments enable the end users to manage exposure to credit and various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. RiverSource Life enters into various derivative financial instruments as part of its ongoing risk management activities. RiverSource Life does not engage in any derivative instrument trading activities. Credit risk associated with RiverSource Life's derivatives is limited to the risk that a derivative counterparty will not perform in accordance with the terms of the contract. To mitigate such risk, counterparties are all required to be preapproved. Additionally, RiverSource Life may, from time to time, enter into master netting agreements wherever practical. As of December 31, 2006 and 2005, the total net fair values, excluding accruals, of derivative product assets were $212 million and $133 million, respectively, and derivative liabilities were $7 million at both balance sheet dates. The net notional amount of derivatives as of December 31, 2006 was $3.1 billion, consisting of $3.2 billion purchased and $0.1 billion written. Cash Flow Hedges RiverSource Life uses interest rate products, primarily interest rate swaptions, to hedge the risk of increasing interest rates on forecasted fixed premium product sales. During 2006, 2005 and 2004, no amounts were reclassified into earnings from accumulated other comprehensive income. At December 31, 2006, RiverSource Life expects to reclassify approximately $1 million of net pretax losses on derivative instruments from accumulated other comprehensive income (loss) to earnings during the next 12 months. Currently, the longest period of time over which RiverSource Life is hedging exposure to the variability in future cash flows is 12 years and relates to forecasted fixed annuity sales. There were losses of $4 million for the year ended December 31, 2006, $2 million for the year ended December 31, 2005 and no gains or losses for the year ended December 31, 2004 on derivative transactions or portions thereof that were ineffective as hedges or excluded from the assessment of hedge effectiveness. During 2006, 2005 and 2004, RiverSource Life recognized the following impacts in other comprehensive income related to its cash flow hedging activity, net of tax:
(IN MILLIONS) 2006 2005 2004 ---------------------------------------------------------------------------------------------- Holding losses, net of tax of $6, $11 and $11, respectively $ (10) $ (21) $ (21) Reclassification of realized losses (gains), net of tax of $5, $5 and $1, respectively 9 10 (2) ---------------------------------------------------------------------------------------------- Net change in unrealized derivative losses $ (1) $ (11) $ (23) ==============================================================================================
Derivatives Not Designated as Hedges RiverSource Life has economic hedges that either do not qualify or are not designated for hedge accounting treatment. The fair value assets (liabilities) of these purchased and written derivatives for the years ended December 31 were as follows:
2006 2005 ----------------------------------------------------------------------------------------------- (IN MILLIONS) PURCHASED WRITTEN PURCHASED WRITTEN ----------------------------------------------------------------------------------------------- Equity indexed annuities $ 40 $ (1) $ 30 $ (1) GMWB 170 -- 95 -- ----------------------------------------------------------------------------------------------- Total $210 $ (1) $125 $ (1) ===============================================================================================
Futures contracts are settled daily by exchanging cash with the counterparty and gains and losses are reported in earnings. Accordingly, there are no amounts on the balance sheet related to these contracts. Certain annuity products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the amount of expenses incurred by RiverSource Life related to equity indexed annuities will positively or negatively impact earnings. As a means of economically hedging its obligations under the provisions of these products, RiverSource Life writes and purchases index options and occasionally enters into futures contracts. Purchased options used in conjunction with these products are reported in other assets and written options are included in other liabilities. Additionally, certain annuity products contain GMWB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments. The GMWB provision is considered an embedded derivative and is valued each period by estimating the present value of future benefits less applicable fees charged for the rider using actuarial models, which simulate various economic scenarios. RiverSource Life economically hedges the exposure related to the GMWB provision using various equity futures, interest rate swaps and structured derivatives. RiverSource Life Insurance Company ------------------------------------------------------------------------------- Embedded Derivatives As noted above, certain annuity products have returns tied to the performance of equity markets. The equity component of the annuity product obligations are considered embedded derivatives. Additionally, certain annuities contain GMWB and GMAB provisions, which are also considered embedded derivatives. The fair value of the embedded derivative is included as part of the equity indexed annuities. The changes in fair value of the equity indexed annuities are reflected in interest credited to account values and the changes in fair value of the GMWB and GMAB features are reflected in death and other benefits for investment contracts and universal life-type insurance. The fair value of the embedded derivatives for equity indexed annuities and the fair value of the embedded options for GMWB and GMAB are recognized in future policy benefits in the Consolidated Balance Sheets. The total fair value of these instruments, excluding the host contract, was $33 million and $48 million at December 31, 2006 and 2005, respectively. 15. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair values of financial instruments are estimates based upon market conditions and perceived risks at December 31, 2006 and 2005, and require management judgment to estimate such values. These figures may not be indicative of future fair values. Additionally, management believes the value of excluded assets and liabilities is significant. The fair value of RiverSource Life, therefore, cannot be estimated by aggregating the amounts presented herein. The following table discloses carrying values and fair values for financial instruments at December 31:
2006 2005 --------------------------------------------------------------------------------------------------------------- CARRYING FAIR CARRYING FAIR (IN MILLIONS) VALUE VALUE VALUE VALUE --------------------------------------------------------------------------------------------------------------- FINANCIAL ASSETS Assets for which carrying values approximate fair values $75,336 $75,336 $66,718 $66,718 Commercial mortgage loans on real estate, net 2,790 2,875 2,842 2,977 Other investments 108 112 127 131 FINANCIAL LIABILITIES Liabilities (assets) for which carrying values approximate fair values $ (10) $ (10) $ 32 $ 32 Fixed annuity reserves 21,626 20,981 24,638 23,841 Separate account liabilities 43,516 41,623 33,154 31,743 ---------------------------------------------------------------------------------------------------------------
As of December 31, 2006 and 2005, the carrying and fair values of off-balance sheet financial instruments are not material. The following methods were used to estimate the fair values of financial assets and financial liabilities: FINANCIAL ASSETS Assets for which carrying values approximate fair values include cash and cash equivalents, Available-for-Sale securities, policy loans, trading securities, separate account assets and derivative financial instruments. Generally these assets are short-term in duration, variable rate in nature or are recorded at fair value on the Consolidated Balance Sheets. The fair value of commercial mortgage loans on real estate, except those with significant credit deterioration, was estimated using discounted cash flow analysis, based on current interest rates for loans with similar terms to borrowers of similar credit quality. For loans with significant credit deterioration, fair values are based on estimates of future cash flows discounted at rates commensurate with the risk inherent in the revised cash flow projections, or for collateral dependent loans, on collateral values. Other investments include RiverSource Life's interest in syndicated loans, which are carried at amortized cost less allowance for losses. Fair values were based on quoted market prices. FINANCIAL LIABILITIES Liabilities for which carrying values approximate fair values include certain other liabilities and derivative liabilities. Generally these liabilities are either short-term in duration, variable rate in nature or are recorded at fair value on the Consolidated Balance Sheets. Fair values of fixed annuities in deferral status are estimated as the accumulated value less applicable surrender charges. For annuities in payout status, fair value is estimated using discounted cash flows based on current interest rates. The fair value of these reserves excluded life insurance-related elements of $1.5 billion as of both December 31, 2006 and 2005. If the fair value of the fixed annuities were realized, the surrender charges received would be offset by the write-off of DAC and DSIC associated with the fixed annuities of $422 million and $496 million as of December 31, 2006 and 2005, respectively. RiverSource Life Insurance Company ------------------------------------------------------------------------------- Fair values of separate account liabilities, excluding life insurance-related elements of $5.8 billion and $4.8 billion as of December 31, 2006 and 2005, respectively, are estimated as the accumulated value less applicable surrender charges. If the fair value of the separate account liabilities were realized, the surrender charges received would be offset by the write-off of DAC and DSIC associated with separate account liabilities of $2.3 billion and $2.0 billion as of December 31, 2006 and 2005, respectively. 16. COMMITMENTS AND CONTINGENCIES At December 31, 2006 and 2005, RiverSource Life had no material commitments to purchase investments other than mortgage loan fundings (see Note 4). RiverSource Life's annuity and life products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2006, these guarantees range up to 5.0%. To the extent the yield on RiverSource Life's invested assets portfolio declines below its target spread plus the minimum guarantee, RiverSource Life's profitability would be negatively affected. The SEC, the National Association of Securities Dealers and several state authorities have brought proceedings challenging several mutual fund and variable product financial practices, generally including suitability, late trading, market timing, compensation and disclosure of revenue sharing arrangements. RiverSource Life has received requests for information and has been contacted by regulatory authorities concerning its practices and is cooperating fully with these inquiries. RiverSource Life is involved in the normal course of business in a number of other legal and arbitration proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory proceedings that would have a material adverse effect on its consolidated financial condition, results of operations or liquidity. However, it is possible that the outcome of any such proceedings could have a material impact on results of operations in any particular reporting period as the proceedings are resolved. S-6325-3 A (9/07) PART C. Item 24. Financial Statements and Exhibits (a) Financial statements included in Part B of this Registration Statement: The audited financial statements of the RiverSource Variable Account 10 including: Report of Independent Registered Public Accounting Firm dated April 24, 2007. Statements of Assets and Liabilities for the year ended Dec. 31, 2006. Statements of Operations for the year ended Dec. 31, 2006. Statements of Changes and Net Assets for the years ended Dec. 31, 2006 and 2005. Notes to Financial Statements. The audited financial statements of the RiverSource Life Insurance Company including: Report of Independent Registered Public Accounting Firm dated Feb. 26, 2007. Consolidated Balance Sheets as of Dec. 31, 2006 and 2005. Consolidated Statements of Income for the years ended Dec. 31, 2006, 2005 and 2004. Consolidated Statements of Cash Flows for the years ended Dec. 31, 2006, 2005 and 2004. Consolidated Statements of Stockholder's Equity for the three years ended Dec. 31, 2006, 2005 and 2004. Notes to Consolidated Financial Statements. (b) Exhibits: 1.1 Resolution of the Board of Directors of IDS Life Insurance Company establishing the IDS Life Variable Account 10 dated August 23, 1995, filed electronically as Exhibit 1 to Registrant's Initial Registration Statement No. 33-62407 is incorporated herein by reference. 1.2 Resolution of the Board of Directors of IDS Life Insurance Company establishing 105 additional subaccounts within the separate account, filed electronically as Exhibit 1.2 to Pre-Effective Amendment No. 1 to Registration Statement No. 333-79311 filed on or about Aug. 10, 1999, is incorporated herein by reference. 1.3 Resolution of the Board of Directors of IDS life Insurance Company establishing 25 additional subaccounts within the separate account, filed electronically as Exhibit 1.3 to Registrant's Post-Effective Amendment No. 2 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.4 Resolution of the Board of Directors of IDS Life Insurance Company establishing 12 additional subaccounts within the separate account, filed electronically as Exhibit 1.3 to Registrant's Post-Effective Amendment No. 3 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.5 Resolution of the Board of Directors of IDS Life Insurance Company establishing 69 additional subaccounts within the separate account, filed electronically as Exhibit 1.5 to Registrant's Post-Effective Amendment No. 6 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.6 Resolution of the Board of Directors of IDS Life Insurance Company establishing 112 additional subaccounts within the separate account, dated Feb. 11, 2002, filed electronically as Exhibit 1.6 to Registrant's Post-Effective Amendment No. 8 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.7 Resolution of the Board of Directors of IDS Life Insurance Company establishing 3 additional subaccounts within the separate account, dated Feb. 28, 2002, filed electronically as Exhibit 1.7 to Registrant's Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated herein by reference. 1.8 Resolution of the Board of Directors of IDS Life Insurance Company establishing 8 additional subaccounts within the separate account, dated January 6, 2004, filed electronically as Exhibit 1.8 to Registrant's Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 1.9 Resolution of the Board of Directors of IDS Life Insurance Company establishing 6 additional subaccounts within the separate account, dated August 12, 2004 filed electronically as Exhibit 1.9 to Post-Effective Amendment No. 32 to Registration Statement No. 333-79311 is incorporated by reference. 1.10 Resolution of the Board of Directors of IDS Life Insurance Company establishing an additional subaccount within the separate account, dated April 27, 2005 filed electronically as Exhibit 1.10 to Post-Effective Amendment No. 32 to Registration Statement No. 333-79311 is incorporated by reference. 1.11 Resolution of the Board of Directors establishing 18 additional subaccounts within the separate accounts dated April 12, 2006 filed electronically as Exhibit 1.11 to Registrant's Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. 1.12 Unanimous Written Consent of the Board of Directors In Lieu of a Meeting for IDS Life Insurance Company, adopted December 8, 2006 for the Re-designation of the Separate Accounts to Reflect Entity Consolidation and Rebranding filed electronically as Exhibit 27(a)(6) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated by reference. 2. Not applicable. 3. Form of Principal Underwriter Agreement for RiverSource Life Insurance Company Variable Annuities and Variable Life Insurance filed electronically as Exhibit 3.1 to the Initial Registration Statement on Form N-4 for RiverSource Variable Annuity Account (previously American Enterprise Variable Annuity Account), RiverSource Signature(SM) Select Variable Annuity and RiverSource Signature(SM) Variable Annuity, on or about Jan. 2, 2007, is incorporated by reference. 4.1 Form of Deferred Annuity Contract for non-qualified contracts (form 31043) filed electronically as Exhibit 4.1 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.2 Form of Deferred Annuity Contract for tax qualified contracts (form 31044) filed electronically as Exhibit 4.2 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.3 Form of Deferred Annuity Contract for IRA contracts (form 31045-IRA) filed electronically as Exhibit 4.3 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.4 Form of Deferred Annuity Contract for non-qualified contracts (form 31046) filed electronically as Exhibit 4.4 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.5 Form of Deferred Annuity Contract for tax qualified contracts (form 31047) filed electronically as Exhibit 4.5 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.6 Form of Deferred Annuity Contract for IRA contracts (form 31048-IRA) filed electronically as Exhibit 4.6 to Registrant's Initial Registration Statement No. 333-79311, filed on or about May 26, 1999, is incorporated herein by reference. 4.7 Form of TSA Endorsement (form 31049), filed electronically as Exhibit 4.7 to Pre-Effective Amendment No. 1 to Registration Statement No. 333-79311 filed on or about Aug. 10, 1999 is incorporated herein by reference. 4.8 Form of Maximum Anniversary Value Death Benefit Rider, filed electronically as Exhibit 4.8 to Post-Effective Amendment No. 4 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.9 Form of Enhanced Earnings Death Benefit Rider, filed electronically as Exhibit 4.9 to Post-Effective Amendment No. 4 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.10 Form of Enhanced Earnings Plus Death Benefit Rider, filed electronically as Exhibit 4.10 to Post-Effective Amendment No. 4 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.11 Form of Traditional IRA or SEP-IRA Annuity Endorsement (form 131061) filed electronically as Exhibit 4.11 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.12 Form of Roth IRA Annuity Endorsement (form 131062) filed electronically as Exhibit 4.12 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.13 Form of SIMPLE IRA Annuity Endorsement (form 131063) filed electronically as Exhibit 4.13 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.14 Form of Deferred Annuity Contract for non-qualified contracts (form 131041) filed electronically as Exhibit 4.14 to Post-Effective Amendment No. 14 to Registration Statement No. 333-79311, is incorporated herein by reference. 4.15 Form of Deferred Annuity Contract for Retirement Advisor Advantage Plus (form 1043 A) filed electronically as Exhibit 4.15 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.16 Form of Deferred Annuity Contract for Retirement Advisor Select Plus (form 131041 A) filed electronically as Exhibit 4.16 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.17 Form of Deferred Annuity Contract for RiverSource Retirement Advisor 4 Advantage Variable Annuity (form 131101), filed electronically as Exhibit 4.17 to Post-Effective Amendment No. 40 to Registration Statement No. 333-79311, filed on or about June 5, 2006, is incorporated by reference. 4.18 Form of Deferred Annuity Contract for RiverSource Retirement Advisor 4 Select Variable Annuity (form 131102), filed electronically as Exhibit 4.18 to Post-Effective Amendment No. 40 to Registration Statement No. 333-79311, filed on or about June 5, 2006, is incorporated by reference. 4.19 Form of Deferred Annuity Contract for RiverSource Retirement Advisor 4 Access Variable Annuity (form 131103), filed electronically as Exhibit 4.19 to Post-Effective Amendment No. 40 to Registration Statement No. 333-79311, filed on or about June 5, 2006, is incorporated by reference. 4.20 Form of TSA Endorsement (form 131068), filed electronically as Exhibit 4.17 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.21 Form of Return of Purchase Payments Rider (form 131072), filed electronically as Exhibit 4.18 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.22 Form of Maximum Anniversary Value Death Benefit Rider (form 131031), filed electronically as Exhibit 4.19 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.23 Form of 5-Year Maximum Anniversary Value Death Benefit Rider (form 131071), filed electronically as Exhibit 4.20 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.24 Form of Enhanced Earnings Death Benefit Rider (form 131032 A), filed electronically as Exhibit 4.21 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.25 Form of Enhanced Earnings Plus Death Benefit Rider (form 131033 A), filed electronically as Exhibit 4.22 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.26 Form of 401 (a) Annuity Endorsement (form 131069), filed electronically as Exhibit 4.23 to Post-Effective Amendment No. 21 to Registration Statement No. 333-79311, filed on or about Jan. 23, 2004, is incorporated by reference. 4.27 Form of Guarantee Period Accounts Rider filed electronically as Exhibit 4.24 to Post-Effective Amendment No. 25 to Registration Statement No. 333-79311, filed on or about June 2, 2004, is incorporated by reference. 4.28 Form of Guaranteed Minimum Withdrawal Benefit Rider (form 131034) filed electronically as Exhibit 4.25 to Post-Effective Amendment No. 29 to Registration Statement No. 333-79311, filed on or about Oct. 21, 2004, is incorporated by reference. 4.29 Form of Guaranteed Minimum Accumulation Benefit Rider (GMAB) (form 131035) filed electronically as Exhibit 4.29 to Registrant's Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. 4.30 Form of Portfolio Navigator Model Portfolio Rider (form 131070C) filed electronically as Exhibit 4.30 to Registrant's Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. 4.31 Form of Guaranteed Minimum Lifetime Withdrawal Benefit Rider (Withdrawal Benefit for Life), filed electronically as Exhibit 4.31 to Post-Effective Amendment No. 40 to Registration Statement No. 333-79311, filed on or about June 5, 2006, is incorporated by reference. 4.32 Copy of Company name change endorsement (form 131115) for RiverSource Life Insurance Company, filed electronically as Exhibit 4.32 to Registrant's Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 filed on or about Jan. 2, 2007, is incorporated by reference. 4.33 Form of SecureSource Joint Life rider is filed electronically herewith. 4.34 Form of SecureSource Single Life rider is filed electronically herewith. 5. Form of Variable Annuity Application (form 31063), filed electronically as Exhibit 5 to Pre-Effective Amendment No. 1 to Registration Statement No. 333-79311 filed on or about Aug. 10, 1999 is incorporated herein by reference. 6.1 Certificate of Incorporation of IDS Life dated July 24, 1957, filed electronically as Exhibit 6.1 to Registrant's Initial Registration Statement No. 33-62407 is incorporated herein by reference. 6.2 Copy of Certificate of Amendment of Certificate of Incorporation of IDS Life Insurance Company dated June 22, 2006, filed electronically as Exhibit 27(f)(1) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated by reference. 6.3 Copy of Amended and Restated By-Laws of RiverSource Life Insurance Company filed electronically as Exhibit 27(f)(2) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated by reference. 7. Not applicable. 8.1 Copy of Amended and Restated Participation Agreement dated April 17, 2006, by and among AIM Variable Insurance Funds, AIM Distributors, Inc. American Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company, and Ameriprise Financial Services, Inc. filed electronically as Exhibit 27(h) (1) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.2 Copy of Amended and Restated Participation Agreement dated August 1, 2006, among American Enterprise Life Insurance Company, IDS Life Insurance Company, Ameriprise Financial Services, Inc., AllianceBernstein L.P. and AllianceBernstein Investments, Inc. filed electronically as Exhibit 27(h) (20) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777is incorporated herein by reference. 8.3 Copy of Amended and Restated Fund Participation Agreement dated June 1, 2006, by and among American Centurion Life Assurance Company, American Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company, IDS Life Insurance Company of New York, Ameriprise Financial Services, Inc. and American Century Investment Services, Inc. filed electronically as Exhibit 27(h)(3) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated herein by reference. 8.4 Copy of Amended and Restated Participation Agreement dated June 19, 2006, by and among Calvert Variable Series, Inc., Calvert Asset Management Company, Inc., Calvert Distributors, Inc. and IDS Life Insurance Company filed electronically as Exhibit 27(h)(4) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.5 Copy of Fund Participation Agreement dated May 1, 2006 among American Enterprise Life Insurance Company, IDS Life Insurance Company, Columbia Funds Variable Insurance Trust I, Columbia Management Advisors, LLC and Columbia Management Distributors, Inc. filed electronically as Exhibit 27(h) (22) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.6 Copy of Amended and Restated Participation Agreement dated May 1, 2006, by and among American Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company, Credit Suisse Trust, Credit Suisse Asset Management, LLC. and Credit Suisse Asset Management Securities, Inc. filed electronically as Exhibit 8.6 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.7 Copy of Fund Participation Agreement dated May 1, 2006, by and among American Enterprise Life Insurance Company, IDS Life Insurance Company, The Dreyfus Corporation, Dreyfus Variable Investment Fund, and Dreyfus Investment Portfolios filed electronically as Exhibit 8.7 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.8 Copy of Participation Agreement dated May 1, 2006, among Eaton Vance Variable Trust, Eaton Vance Distributors, Inc. and IDS Life Insurance Company filed electronically as Exhibit 8.8 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.9 Copy of Evergreen Variable Annuity Trust Amended and Restated Participation Agreement dated June 1, 2006, by and among American Enterprise Life Insurance Company, IDS Life Insurance Company and Evergreen Variable Annuity Trust filed electronically as Exhibit 27(h) (6) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.10 Copy of Participation Agreement among Variable Insurance Products Fund, Fidelity Distributors Corporation and IDS Life Insurance Company, dated Sept. 1, 1999, filed electronically as Exhibit 8.8(a) to Post-Effective Amendment No. 3 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.11 Copy of Amended and Restated Participation Agreement by and between Franklin Templeton Variable Insurance Products Trust, Franklin/Templeton Distributors, Inc., American Centurion Life Assurance Company, American Enterprise Life Insurance Company, IDS Life Insurance Company, IDS Life Insurance Company of New York, Ameriprise Financial Services, Inc. (formerly American Express Financial Advisors Inc.), dated August 1, 2005 filed electronically as Exhibit 8.7 to Registrant's Post-Effective Amendment No. 39 to Registration Statement No. 333-79311 is incorporated by reference. 8.12 Copy of Amended and Restated Participation Agreement dated June 9, 2006, by and among American Enterprise Life Insurance Company, IDS Life Insurance Company, Goldman Sachs Variable Insurance Trust and Goldman, Sachs & Co. filed electronically as Exhibit 27(h)(24) to Post Effective Amendment No.28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.13 Copy of Janus Aspen Series Amended and Restated Fund Participation Agreement dated September 1, 2006, by and among American Enterprise Life Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company and Janus Apsen Series filed electronically as Exhibit 27(h)(12) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.14 Copy of Amended and Restated Participation Agreement by and among IDS Life Insurance Company, American Enterprise Life Insurance Company, Ameriprise Financial Services, Inc., Lazard Asset Management Securities LLC, and Lazard Retirement Series, Inc., dated Oct. 16, 2006, filed electronically as Exhibit 8.14 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.15 Copy of Fund Participation Agreement dated Jan. 1, 2007, by and among RiverSource Life Insurance Company, RiverSource Distributors, Inc. and Lazard Asset Management Securities LLC and Lazard Retirement Series, Inc. filed electronically as Exhibit 8.15 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.16 Copy of Amended and Restated Participation Agreement dated September 1, 2006, by and among IDS Life Insurance Company, Legg Mason Partners Variable Portfolios I, Inc. (formerly Salomon Brothers Variable Series Fund, Inc.), Legg Mason Partners Variable Portfolios II, Inc. (formerly Greenwich Street Series Fund, formerly Smith Barney Series Fund, formerly Smith Barney Shearson Series Fund, formerly Shearson Series Fund), Legg Mason Partners Variable Portfolios III, Inc. (formerly Travelers Series Fund Inc., formerly Smith Barney Travelers Series Fund Inc.) and Legg Mason Investor Services, LLC filed electronically as Exhibit 8.15 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.17 Copy of Participation Agreement Among MFS Variable Insurance Trust, American Enterprise Life Insurance Company, IDS Life Insurance Company and Massachusetts Financial Services Company, dated June 9, 2006, filed electronically as Exhibit 8.17 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.18 Copy of Fund Participation Agreement dated March 2, 2006, by and between Neuberger Berman Advisers Management Trust, Neuberger Berman Management, Inc. and IDS Life Insurance Company filed electronically as Exhibit 8.17 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.19 Copy of Participation Agreement by and among Oppenheimer Variable Account Funds, Oppenheimer Funds, Inc. and IDS Life Insurance Company, dated Jan. 12, 2004 filed electronically as Exhibit 8.21 to Post-Effective Amendment No. 24 to Registration Statement No. 333-79311, is incorporated by reference. 8.20 Copy of Participation Agreement dated March 1, 2006, among IDS Life Insurance Company, PIMCO Variable Insurance Trust and Allianz Global Investors Distributors LLC filed electronically as Exhibit 8.19 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.21 Copy of Amended and Restated Fund Participation Agreement dated September 1, 2006, among Pioneer Variable Contracts Trust, IDS Life Insurance Company, Pioneer Investment Management, Inc., and Pioneer Funds Distributor, Inc. filed electronically as Exhibit 27(h)(15) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.22 Copy of Participation Agreement by and among IDS Life Insurance Company and Putnam Capital Manager Trust and Putnam Mutual Funds Corp., dated March 1, 1996, filed electronically as Exhibit 8.1 to Post-Effective Amendment No. 2 to Registration Statement No. 33-62407 is incorporated herein by reference. 8.23 Copy of Participation Agreement dated January 1, 2007, by and among RiverSource Life Insurance Company, RiverSource Life Insurance Co. of New York and RiverSource Distributors, Inc. filed electronically as Exhibit 8.23 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.24 Copy of Participation Agreement by and among Royce Capital Fund and Royce & Associates, Inc. and RiverSource Life Insurance Company, dated Jan. 1, 2007, filed electronically as Exhibit 8.24 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 8.25 Copy of Amended and Restated Participation Agreement dated May 1, 2006, among The Universal Institutional Funds, Inc., Morgan Stanley Investment Management Inc., Morgan Stanley Distribution, Inc., American Enterprise Life Insurance Company and IDS Life Insurance Company filed electronically as Exhibit 8.24 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.26 Copy of Amended and Restated Participation Agreement dated October 12, 2006, by and among Third Avenue Variable Series Trust, Third Avenue Management LLC, American Enterprise Life Insurance Company and IDS Life Insurance Company filed electronically as Exhibit 27(h)(18) to Post-Effective Amendment No. 28 to Registration Statement No. 333-69777 is incorporated herein by reference. 8.27 Copy of Amended and Restated Participation Agreement dated May 1, 2006, among Van Kampen Life Investment Trust, Van Kampen Funds Inc., Van Kampen Asset Management, American Enterprise Life Insurance Company and IDS Life Insurance Company filed electronically as Exhibit 8.26 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. 8.28 Copy of Participation Agreement by and among Wanger Advisors Trust and Liberty Wanger Asset Management, L.P. and IDS Life Insurance Company dated August 30, 1999 filed electronically as Exhibit 8.17 to Post-Effective Amendment No. 10 to Registration Statement No. 333-79311, is incorporated herein by reference. 8.29 Copy of Participation Agreement by and among Wells Fargo Variable Trust and RiverSource Life Insurance Company and Wells Fargo Funds Distributors, LLC dated Jan. 1, 2007, filed electronically as Exhibit 8.29 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 9. Opinion of counsel and consent to its use as the legality of the securities being registered is filed electronically herewith. 10. Consent of Independent Registered Public Accounting Firm is filed electronically herewith. 11. None 12. Not applicable. 13. Power of Attorney to sign Amendment to this Registration Statement, dated Jan. 2, 2007 filed electronically as Exhibit 13 to Post-Effective Amendment No. 42 to Registration Statement No. 333-79311 is incorporated by reference. 14. Not applicable.
Item 25. Directors and Officers of the Depositor RiverSource Life Insurance --------------------------------------------------------------------------- Company ------- Name Principal Business Address* Position and Offices with Depositor ------------------------------------------------------ ---------------------------------------- Neysa M. Alecu Anti-Money Laundering Officer Gumer C. Alvero Director and Executive Vice President - Annuities Timothy V. Bechtold Director and President Kent M. Bergene Vice President - Affiliated Investments Walter S. Berman Vice President and Treasurer Richard N. Bush Senior Vice President - Corporate Tax Pat H. Carey Vice President-Fund Relations Charles R. Caswell Reinsurance Officer Mark Gorham Illustration Actuary Jim Hamalainen Vice President - Investments Timothy J. Masek Vice President - Investments Michelle M. Keeley Vice President - Investments Brian J. McGrane Director, Executive Vice President and Chief Financial Officer Thomas R. Moore Secretary Thomas W. Murphy Vice President - Investments Benji Orr Deputy Anti-Money Laundering Officer Kevin E. Palmer Director, Vice President and Chief Actuary Julie A. Ruether Chief Compliance Officer - Separate Accounts and Assistant Secretary Bruce H. Saul Assistant General Counsel and Assistant Secretary Mark E. Schwarzmann Director, Chairman of the Board and Chief Executive Officer Heather M. Somers Assistant General Counsel and Assistant Secretary Bridget M. Sperl Executive Vice President - Client Service David K. Stewart Vice President and Controller * Unless otherwise noted, the business address is 70100 Amerprise Financial Center, Minneapolis, MN 55474.
Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant (Continued) The following list includes the names of major subsidiaries of Ameriprise Financial, Inc. Jurisdiction of Name of Subsidiary Incorporation Advisory Capital Strategies Group Inc. Minnesota AEXP Affordable Housing Portfolio LLC Delaware American Enterprise Investment Services Inc. Minnesota American Express Property Casualty Insurance Agency of Kentucky Inc. Kentucky American Express Property Casualty Insurance Agency of Maryland Inc. Maryland American Express Property Casualty Insurance Agency of Mississippi Inc. Mississippi American Express Property Casualty Insurance Agency of Pennsylvania Inc. Pennsylvania Ameriprise Auto & Home Insurance Agency, Inc. Wisconsin Ameriprise Bank, FSB United States of America Ameriprise Certificate Company Delaware Ameriprise Financial Services Inc. Delaware Ameriprise India Private Limited India Ameriprise Insurance Company Wisconsin Ameriprise Trust Company Minnesota Amex Assurance Company Illinois Boston Equity General Partner LLC Delaware IDS Cable Corporation Minnesota IDS Cable II Corporation Minnesota IDS Capital Holdings Inc. Minnesota IDS Futures Corporation Minnesota IDS Management Corporation Minnesota IDS Partnership Services Corporation Minnesota IDS Property Casualty Insurance Company Wisconsin IDS Realty Corporation Minnesota IDS REO 1, LLC Minnesota IDS REO 2, LLC Minnesota Investors Syndicate Development Corp. Nevada Kenwood Capital Management LLC (51.1% owned) Delaware MM Asset Management Ltd. England Realty Assets, Inc. Nebraska RiverSource Distributors, Inc. Delaware RiverSource Investments LLC Minnesota RiverSource Life Insurance Company Minnesota RiverSource Life Insurance Co. of New York New York RiverSource Service Corporation Minnesota RiverSource Tax Advantaged Investments, Inc. Delaware Securities America Advisors, Inc. Nebraska Securities America Financial Corporation Nebraska Securities America, Inc. Nebraska Threadneedle Asset Management Holdings Ltd. England
Item 27. Number of Contract owners As of May 31, 2007 there were 201,488 non-qualified contract owners and 356,758 qualified contract owners. Item 28. Indemnification The amended and restated By-Laws of the depositor provide that the depositor will indemnify, to the fullest extent now or hereafter provided for or permitted by law, each person involved in, or made or threatened to be made a party to, any action, suit, claim or proceeding, whether civil or criminal, including any investigative, administrative, legislative, or other proceeding, and including any action by or in the right of the depositor or any other corporation, or any partnership, joint venture, trust, employee benefit plan, or other enterprise (any such entity, other than the depositor, being hereinafter referred to as an "Enterprise"), and including appeals therein (any such action or process being hereinafter referred to as a "Proceeding"), by reason of the fact that such person, such person's testator or intestate (i) is or was a director or officer of the depositor, or (ii) is or was serving, at the request of the depositor, as a director, officer, or in any other capacity, or any other Enterprise, against any and all judgments, amounts paid in settlement, and expenses, including attorney's fees, actually and reasonably incurred as a result of or in connection with any Proceeding, except as provided below. No indemnification will be made to or on behalf of any such person if a judgment or other final adjudication adverse to such person establishes that such person's acts were committed in bad faith or were the result of active and deliberate dishonesty and were material to the cause of action so adjudicated, or that such person personally gained in fact a financial profit or other advantage to which such person was not legally entitled. In addition, no indemnification will be made with respect to any Proceeding initiated by any such person against the depositor, or a director or officer of the depositor, other than to enforce the terms of this indemnification provision, unless such Proceeding was authorized by the Board of Directors of the depositor. Further, no indemnification will be made with respect to any settlement or compromise of any Proceeding unless and until the depositor has consented to such settlement or compromise. The depositor may, from time to time, with the approval of the Board of Directors, and to the extent authorized, grant rights to indemnification, and to the advancement of expenses, to any employee or agent of the depositor or to any person serving at the request of the depositor as a director or officer, or in any other capacity, of any other Enterprise, to the fullest extent of the provisions with respect to the indemnification and advancement of expenses of directors and officers of the depositor. Insofar as indemnification for liability arising under the Securities Act of 1933 (the "Act") may be permitted to directors, officers and controlling persons of the depositor or the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. Item 29. Principal Underwriter RiverSource Distributors Inc. (a) RiverSource Distributors Inc. is the principal underwriter, depositor or sponsor for RiverSource Variable Annuity Account 1; RiverSource Account F; RiverSource Variable Annuity Fund A; RiverSource Variable Annuity Fund B; RiverSource Variable Account 10; RiverSource Account SBS; RiverSource MVA Account; RiverSource Account MGA; RiverSource Variable Life Separate Account; RiverSource Variable Life Account; RiverSource Account for Smith Barney; RiverSource of New York Variable Annuity Account 1; RiverSource of New York Variable Annuity Account 2; RiverSource of New York Account 4; RiverSource of New York Account 7; RiverSource of New York Account 8; RiverSource of New York Variable Annuity Account; RiverSource of New York Account SBS; RiverSource California Tax-Exempt Trust; RiverSource Bond Series, Inc.; RiverSource Dimensions Series, Inc.; RiverSource Diversified Income Series, Inc.; RiverSource Equity Series, Inc.; RiverSource Global Series, Inc.; RiverSource Government Income Series, Inc.; RiverSource High Yield Income Series, Inc.; RiverSource Income Series, Inc.; RiverSource International Managers Series, Inc.; RiverSource International Series, Inc.; RiverSource Investment Series, Inc.; RiverSource Large Cap Series, Inc.; RiverSource Managers Series, Inc.; RiverSource Market Advantage Series, Inc.; RiverSource Money Market Series, Inc.; RiverSource Retirement Series Trust; RiverSource Sector Series, Inc.; RiverSource Selected Series, Inc.; RiverSource Short Term Investments Series, Inc.; RiverSource Special Tax-Exempt Series Trust, Inc.; RiverSource Strategic Allocation Series, Inc.; RiverSource Strategy Series, Inc.; RiverSource Tax-Exempt Income Series, Inc.; RiverSource Tax-Exempt Money Market Series, Inc.; RiverSource Tax-Exempt Series, Inc.; Ameriprise Certificate Company. (b) As to each director, officer, or partner of the principal underwriter: Name and Principal Business Address* Position and Offices with Underwriter ------------------------------------ ------------------------------------- Neysa M. Alecu Anti-Money Laundering Officer Gumer C. Alvero Director Patrick Bannigan Senior Vice President - Asset Management, Products & Marketing Group Timothy V. Bechtold Director Patrick H. Carey Vice President - Fund Relationship Paul J. Dolan Chief Operating Officer, Chief Administrative Officer Jeffrey P. Fox Chief Financial Officer Martin T. Griffin President-Outside Distribution Richard Laiderman Treasurer Jeffrey McGregor President-Inside Distribution Thomas R. Moore Secretary Benji Orr Deputy Anti-Money Laundering Officer Scott R. Plummer Chief Counsel Julie A. Ruether Chief Compliance Officer Mark E. Schwarzmann Director, President and Chief Executive Officer William F. Truscott Director and Vice President Andrew Washburn Vice President * Unless otherwise noted, the business address is 70100 Ameriprise Financial Center, Minneapolis, MN 55474. (c) IDS Life Insurance Company, the principal underwriter during Registrant's last fiscal year, was paid the following commissions:
NAME OF NET UNDERWRITING PRINCIPAL DISCOUNTS AND COMPENSATION ON BROKERAGE UNDERWRITER COMMISSIONS REDEMPTION COMMISSIONS COMPENSATION ----------- ---------------- --------------- ----------- ------------ IDS Life Insurance $290,026,122 None None None Company
Item 30. Location of Accounts and Records RiverSource Life Insurance Company 70100 Ameriprise Financial Center Minneapolis, MN 55474 Item 31. Management Services Not applicable. Item 32. Undertakings (a) Registrant undertakes to file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted. (b) Registrant undertakes to include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information. (c) Registrant undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request. (d) Registrant represents that it is relying upon the no-action assurance given to the American Council of Life Insurance (pub. avail. Nov. 28, 1988). Further, Registrant represents that it has complied with the provisions of paragraphs (1)-(4) of that no-action letter. (e) The sponsoring insurance company represents that the fees and charges deducted under the contract, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the insurance company. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, RiverSource Life Insurance Company, on behalf of the Registrant, certifies that it meets all of the requirements of Securities Act Rule 485(b) for effectiveness of this Amendment to its Registration Statement and has caused this Amendment to its Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Minneapolis, and State of Minnesota, on the 13th day of July, 2007. RIVERSOURCE VARIABLE ACCOUNT 10 (Registrant) By RiverSource Life Insurance Company (Sponsor) By /s/ Timothy V. Bechtold* ------------------------------------- Timothy V. Bechtold President As required by the Securities Act of 1933, Amendment to this Registration Statement has been signed by the following persons in the capacities indicated on the 13 day of July, 2007. /s/ Gumer C. Alvero* Director and Executive Vice President ------------------------------------- - Annuities Gumer C. Alvero /s/ Timothy V. Bechtold* Director and President ------------------------------------- Timothy V. Bechtold /s/ Arthur H. Berman* Director and Executive Vice President - ------------------------------------- Finance Arthur H. Berman (Principal Financial Officer) /s/ Brian J. McGrane* Director, Executive Vice President and ------------------------------------- Chief Financial Officer Brian J. McGrane /s/ Kevin E. Palmer* Director, Vice President and Chief ------------------------------------- Actuary Kevin E. Palmer /s/ Mark E. Schwarzmann* Chairman of the Board and Chief ------------------------------------- Executive Officer Mark E. Schwarzmann (Chief Executive Officer) /s/ Bridget M. Sperl* Executive Vice President - Client ------------------------------------- Services Bridget M. Sperl /s/ David K. Stewart* Vice President and Controller ------------------------------------- (Principal Accounting Officer) David K. Stewart
* Signed pursuant to Power of Attorney dated Jan. 2, 2007 filed electronically as Exhibit 13. to Registrant's Post-Effective Amendment No. 42 to Registration Statement No. 333-79311, by: /s/ Rodney J. Vessels ------------------------------------- Rodney J. Vessels Assistant General Counsel CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 44 TO REGISTRATION STATEMENT This Post-Effective Amendment is comprised of the following papers and documents: The Cover Page. Part A. The Prospectus for: RiverSource Retirement Advisor 4 Advantage Variable Annuity RiverSource Retirement Advisor 4 Select Variable Annuity RiverSource Retirement Advisor 4 Access Variable Annuity Part B. Statement of Additional Information Financial Information Part C. Other Information. The signatures. Exhibit Index 4.33 Form of SecureSource Joint Life Rider 4.34 Form of SecureSource Single Life Rider 9. Opinion of counsel and consent to its use as to the legality of the securities being registered. 10. Consent of Independent Registered Public Accounting Firm.