RiverSource Single Premium Variable Life Insurance

2012 Annual Report RiverSource Single Premium Variable Life Insurance visit ameriprise.com/paperless S-6199 R (4/13) Issued by: RiverSource Life Insurance Company

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Annual Financial Information REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE BOARD OF DIRECTORS OF RIVERSOURCE LIFE INSURANCE COMPANY In our opinion, the accompanying statement of assets and liabilities and the related statements of operations and of changes in net assets present fairly, in all material respects, the financial position of each of the divisions of RiverSource Variable Life Separate Account that is offered through RiverSource» Single Premium Variable Life Insurance (the Account) sponsored by RiverSource Life Insurance Company, referred to in Note 1, at December 31, 2012, the results of their operations for the period then ended, and the changes in their net assets for the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the management of RiverSource Life Insurance Company; our responsibility is to express an opinion on these financial statements based on our audits. The financial statements of the divisions of the Account, including the financial highlights which appear in the footnotes, for the periods ended December 31, 2010 and prior were audited by another independent registered public accounting firm whose report dated April 22, 2011 expressed an unqualified opinion. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2012 by correspondence with the affiliated and unaffiliated mutual fund managers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP April 22, 2013 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 1

Statements of Assets and Liabilities Dec. 31, 2012 AB VPS Gro & Inc, Cl B AB VPS Intl Val, Cl B AB VPS Lg Cap Gro, Cl B AC VP Intl, Cl II AC VP Val, Cl II Assets Investments, at fair value (1),(2) $18,014,034 $44,049,167 $3,005,404 $8,070,308 $22,101,001 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 1,280 7,074 1,218 23,862 Receivable for share redemptions 13,306 48,890 2,048 6,135 16,757 Total assets 18,028,620 44,098,057 3,014,526 8,077,661 22,141,620 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 13,306 31,192 2,048 6,135 16,757 Minimum death benefit guarantee risk charge Contract terminations 17,698 Payable for investments purchased 1,280 7,074 1,218 23,862 Total liabilities 14,586 48,890 9,122 7,353 40,619 Net assets applicable to Variable Life contracts in accumulation period 18,013,930 44,049,084 3,005,274 8,070,148 22,100,923 Net assets applicable to seed money 104 83 130 160 78 Total net assets $18,014,034 $44,049,167 $3,005,404 $8,070,308 $22,101,001 (1) Investment shares 871,928 3,430,620 98,927 904,743 3,384,533 (2) Investments, at cost $18,215,461 $51,915,627 $2,618,639 $7,302,024 $22,887,223 Dec. 31, 2012 (continued) Calvert VP SRI Bal Bal, Cash Mgmt, Div Bond, Divd Opp, Assets Investments, at fair value (1),(2) $6,642,258 $147,213,484 $67,467,790 $148,725,980 $190,613,224 Dividends receivable 55 Accounts receivable from RiverSource Life for contract purchase payments 489 30,173 15,742 66,444 Receivable for share redemptions 13,181 Total assets 6,655,928 147,213,484 67,498,018 148,741,722 190,679,668 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 4,227 102,198 41,955 96,675 124,044 Minimum death benefit guarantee risk charge 1,040 112 204 Contract terminations 8,954 51,484 12,592 23,252 Payable for investments purchased 489 Total liabilities 13,670 154,722 54,659 120,131 124,044 Net assets applicable to Variable Life contracts in accumulation period 6,642,182 147,058,752 67,441,360 148,621,516 190,555,546 Net assets applicable to seed money 76 10 1,999 75 78 Total net assets $6,642,258 $147,058,762 $67,443,359 $148,621,591 $190,555,624 (1) Investment shares 3,479,444 9,098,485 67,467,790 13,196,626 13,366,986 (2) Investments, at cost $6,149,613 $127,976,854 $67,457,325 $140,783,212 $168,939,949 See accompanying notes to financial statements. 2 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Assets and Liabilities Dec. 31, 2012 (continued) Emer Mkts, Global Bond, Hi Inc, Hi Yield Bond, Inc Opp, Assets Investments, at fair value (1),(2) $52,727,187 $42,312,931 $8,978,866 $66,880,189 $21,016,808 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 7,436 8,011 4,239 Receivable for share redemptions Total assets 52,727,187 42,320,367 8,978,866 66,888,200 21,021,047 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 34,056 27,309 6,087 43,730 13,734 Minimum death benefit guarantee risk charge Contract terminations 18,700 2,207 191 1,899 1,242 Payable for investments purchased Total liabilities 52,756 29,516 6,278 45,629 14,976 Net assets applicable to Variable Life contracts in accumulation period 52,674,350 42,290,776 8,972,434 66,842,494 21,005,994 Net assets applicable to seed money 81 75 154 77 77 Total net assets $52,674,431 $42,290,851 $8,972,588 $66,842,571 $21,006,071 (1) Investment shares 3,258,788 3,465,433 841,506 9,276,032 1,995,898 (2) Investments, at cost $47,367,014 $39,466,620 $8,286,333 $60,916,998 $19,845,914 Dec. 31, 2012 (continued) Intl Opp, Lg Cap Gro, Lg Core Quan, Mid Cap Gro Opp, Mid Cap Val Opp, Assets Investments, at fair value (1),(2) $85,752,969 $40,685,016 $245,440,959 $12,118,795 $9,236,448 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 21,146 7,972 15,106 Receivable for share redemptions Total assets 85,752,969 40,706,162 245,448,931 12,133,901 9,236,448 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 58,496 25,879 162,104 7,543 6,292 Minimum death benefit guarantee risk charge 323 Contract terminations 12,340 2,685 32,466 1,818 Payable for investments purchased Total liabilities 70,836 28,564 194,893 7,543 8,110 Net assets applicable to Variable Life contracts in accumulation period 85,682,052 40,677,588 245,253,934 12,126,348 9,228,327 Net assets applicable to seed money 81 10 104 10 11 Total net assets $85,682,133 $40,677,598 $245,254,038 $12,126,358 $9,228,338 (1) Investment shares 7,092,884 5,130,519 10,602,201 882,651 778,134 (2) Investments, at cost $66,450,310 $33,425,091 $211,371,373 $10,848,068 $8,205,562 See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 3

Statements of Assets and Liabilities Dec. 31, 2012 (continued) Assets S&P 500, Select Lg Cap Val, Select Sm Cap Val, US Govt Mtge, CS Commodity Return Investments, at fair value (1),(2) $39,419,060 $4,438,532 $13,199,725 $36,210,189 $13,293,710 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 9,698 4,850 4,971 25,258 Receivable for share redemptions 8,314 Total assets 39,428,758 4,438,532 13,204,575 36,215,160 13,327,282 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 24,260 2,893 8,248 23,078 8,314 Minimum death benefit guarantee risk charge 103 Contract terminations 3,171 3,593 111 Payable for investments purchased 25,258 Total liabilities 24,260 6,064 11,841 23,292 33,572 Net assets applicable to Variable Life contracts in accumulation period 39,404,488 4,432,457 13,192,723 36,191,793 13,293,710 Net assets applicable to seed money 10 11 11 75 Total net assets $39,404,498 $4,432,468 $13,192,734 $36,191,868 $13,293,710 (1) Investment shares 3,899,017 380,337 1,064,494 3,451,877 1,896,392 (2) Investments, at cost $31,561,001 $3,698,774 $12,017,085 $35,529,404 $16,748,545 Dec. 31, 2012 (continued) EV VT Floating-Rate Inc Fid VIP Contrafund, Serv Fid VIP Gro & Inc, Serv Fid VIP Mid Cap, Serv Fid VIP Overseas, Serv Assets Investments, at fair value (1),(2) $24,634,418 $72,573,416 $25,464,338 $62,498,633 $12,363,830 Dividends receivable 86,012 Accounts receivable from RiverSource Life for contract purchase payments 688 1,996 6,084 18,116 Receivable for share redemptions 19,271 66,958 19,424 47,568 11,355 Total assets 24,740,389 72,642,370 25,489,846 62,564,317 12,375,185 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 15,456 46,340 19,424 47,568 9,425 Minimum death benefit guarantee risk charge Contract terminations 3,814 20,618 1,930 Payable for investments purchased 86,701 1,996 6,084 18,116 Total liabilities 105,971 68,954 25,508 65,684 11,355 Net assets applicable to Variable Life contracts in accumulation period 24,632,404 72,573,312 25,464,260 62,498,501 12,363,671 Net assets applicable to seed money 2,014 104 78 132 159 Total net assets $24,634,418 $72,573,416 $25,464,338 $62,498,633 $12,363,830 (1) Investment shares 2,604,061 2,791,285 1,774,518 2,084,678 775,162 (2) Investments, at cost $23,951,622 $62,810,766 $23,454,746 $59,219,755 $13,546,593 See accompanying notes to financial statements. 4 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Assets and Liabilities Dec. 31, 2012 (continued) Assets FTVIPT Frank Global Real Est, FTVIPT Frank Sm Cap Val, FTVIPT Mutual Shares Sec, GS VIT Mid Cap Val, Inst GS VIT Structd U.S. Eq, Inst Investments, at fair value (1),(2) $49,524,166 $33,051,518 $18,631,871 $86,842,580 $31,535,317 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 7,254 5,572 3,588 12,231 755 Receivable for share redemptions 32,018 23,862 31,876 70,517 41,294 Total assets 49,563,438 33,080,952 18,667,335 86,925,328 31,577,366 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 32,018 21,617 13,313 54,989 19,979 Minimum death benefit guarantee risk charge Contract terminations 2,245 18,563 15,528 21,315 Payable for investments purchased 7,254 5,572 3,588 12,231 755 Total liabilities 39,272 29,434 35,464 82,748 42,049 Net assets applicable to Variable Life contracts in accumulation period 49,524,086 33,051,436 18,631,793 86,842,501 31,535,239 Net assets applicable to seed money 80 82 78 79 78 Total net assets $49,524,166 $33,051,518 $18,631,871 $86,842,580 $31,535,317 (1) Investment shares 3,470,509 1,813,029 1,081,990 5,664,878 2,597,637 (2) Investments, at cost $59,349,366 $26,329,096 $18,217,786 $76,862,526 $29,843,580 Dec. 31, 2012 (continued) Invesco VI Div Divd, Ser I Invesco VI Intl Gro, Ser II Invesco VI Tech, Ser I Invesco VI Am Fran, Ser II Invesco VI Comstock, Ser II Assets Investments, at fair value (1),(2) $5,681,061 $18,032,293 $5,190,307 $7,149,834 $5,474,973 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 2,454 6,620 1,386 5,722 1,118 Receivable for share redemptions 3,841 10,260 8,139 5,421 3,494 Total assets 5,687,356 18,049,173 5,199,832 7,160,977 5,479,585 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 3,682 10,260 3,504 5,421 3,494 Minimum death benefit guarantee risk charge Contract terminations 159 4,635 Payable for investments purchased 2,454 6,620 1,386 5,722 1,118 Total liabilities 6,295 16,880 9,525 11,143 4,612 Net assets applicable to Variable Life contracts in accumulation period 5,680,983 18,032,160 5,190,226 7,149,529 5,474,894 Net assets applicable to seed money 78 133 81 305 79 Total net assets $5,681,061 $18,032,293 $5,190,307 $7,149,834 $5,474,973 (1) Investment shares 347,678 607,557 307,665 201,121 414,143 (2) Investments, at cost $5,281,806 $15,654,131 $4,277,829 $7,329,547 $4,637,276 See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 5

Statements of Assets and Liabilities Dec. 31, 2012 (continued) Invesco VI Mid Cap Gro, Ser I Invesco VI Mid Cap Gro, Ser II Janus Aspen Global Tech, Serv Janus Aspen Janus, Serv Janus Aspen Overseas, Serv Assets Investments, at fair value (1),(2) $5,711,736 $2,869,987 $10,290,594 $8,140,280 $59,609,546 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 3,569 3,904 1,546 25,714 Receivable for share redemptions 3,192 2,186 5,973 11,182 56,684 Total assets 5,718,497 2,876,077 10,298,113 8,151,462 59,691,944 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 3,192 2,186 5,973 5,434 35,708 Minimum death benefit guarantee risk charge Contract terminations 5,748 20,976 Payable for investments purchased 3,569 3,904 1,546 25,714 Total liabilities 6,761 6,090 7,519 11,182 82,398 Net assets applicable to Variable Life contracts in accumulation period 5,711,657 2,869,833 10,290,513 8,140,051 59,609,379 Net assets applicable to seed money 79 154 81 229 167 Total net assets $5,711,736 $2,869,987 $10,290,594 $8,140,280 $59,609,546 (1) Investment shares 1,457,075 734,012 1,670,551 311,530 1,609,764 (2) Investments, at cost $5,787,597 $2,916,364 $ 8,194,698 $6,898,969 $65,433,665 Dec. 31, 2012 (continued) MFS Inv Gro Stock, Serv Cl MFS New Dis, Serv Cl MFS Utilities, Serv Cl MS UIF Global Real Est, Cl II MS UIF Mid Cap Gro, Cl II Assets Investments, at fair value (1),(2) $27,771,553 $22,215,575 $24,689,301 $10,996,802 $7,767,438 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 7,780 11,471 3,430 4,306 Receivable for share redemptions 17,098 13,114 22,561 20,889 11,565 Total assets 27,796,431 22,240,160 24,715,292 11,017,691 7,783,309 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 17,098 13,115 16,553 7,046 5,041 Minimum death benefit guarantee risk charge Contract terminations 6,008 13,843 6,524 Payable for investments purchased 7,780 11,471 3,430 4,306 Total liabilities 24,878 24,586 25,991 20,889 15,871 Net assets applicable to Variable Life contracts in accumulation period 27,771,474 22,215,494 24,689,196 10,996,722 7,767,358 Net assets applicable to seed money 79 80 105 80 80 Total net assets $27,771,553 $22,215,574 $24,689,301 $10,996,802 $7,767,438 (1) Investment shares 2,327,875 1,480,052 904,701 1,162,453 730,022 (2) Investments, at cost $21,782,981 $21,556,747 $23,136,572 $ 9,245,469 $8,096,076 See accompanying notes to financial statements. 6 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Assets and Liabilities Dec. 31, 2012 (continued) Oppen Global VA, Serv Oppen Global Strategic Inc VA, Srv Oppen Main St Sm Cap VA, Serv PIMCO VIT All Asset, Advisor Cl Put VT Global Hlth Care, Cl IB Assets Investments, at fair value (1),(2) $7,555,222 $63,128,745 $6,638,890 $38,026,738 $4,269,208 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 1,566 3,590 61,271 636 Receivable for share redemptions 27,348 139,134 4,538 27,717 4,137 Total assets 7,584,136 63,267,879 6,647,018 38,115,726 4,273,981 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 5,020 41,374 4,538 23,601 2,925 Minimum death benefit guarantee risk charge Contract terminations 22,328 97,760 4,116 1,212 Payable for investments purchased 1,566 3,590 61,271 636 Total liabilities 28,914 139,134 8,128 88,988 4,773 Net assets applicable to Variable Life contracts in accumulation period 7,554,956 63,128,669 6,638,809 38,026,738 4,269,130 Net assets applicable to seed money 266 76 81 78 Total net assets $7,555,222 $63,128,745 $6,638,890 $38,026,738 $4,269,208 (1) Investment shares 234,270 10,903,065 332,610 3,312,434 330,434 (2) Investments, at cost $6,743,969 $59,047,866 $5,327,419 $36,539,124 $3,983,278 Dec. 31, 2012 (continued) Put VT Intl Eq, Cl IB Put VT Multi-Cap Gro, Cl IB VP Aggr, VP Aggr, Cl 4 VP BR Gl Infl Prot Sec, Assets Investments, at fair value (1),(2) $2,518,349 $5,764,066 $76,387,646 $255,806,185 $20,006,579 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 1,056 22,562 59,411 2,648 Receivable for share redemptions 2,048 4,577 Total assets 2,520,397 5,769,699 76,410,208 255,865,596 20,009,227 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 1,873 2,683 49,309 175,665 12,904 Minimum death benefit guarantee risk charge Contract terminations 175 1,894 Payable for investments purchased 1,056 Total liabilities 2,048 5,633 49,309 175,665 12,904 Net assets applicable to Variable Life contracts in accumulation period 2,518,268 5,763,961 76,360,889 255,689,931 19,996,248 Net assets applicable to seed money 81 105 10 75 Total net assets $2,518,349 $5,764,066 $76,360,899 $255,689,931 $19,996,323 (1) Investment shares 222,273 256,751 6,140,486 20,530,191 2,092,738 (2) Investments, at cost $2,970,604 $5,082,588 $68,949,883 $209,762,581 $19,997,282 See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 7

Statements of Assets and Liabilities Dec. 31, 2012 (continued) VP Conserv, VP Conserv, Cl 4 VP Mod, VP Mod, Cl 4 VP Mod Aggr, Assets Investments, at fair value (1),(2) $26,664,412 $56,952,620 $252,716,998 $707,493,711 $245,224,090 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 20,638 92,927 210,549 77,494 330 Receivable for share redemptions Total assets 26,685,050 57,045,547 252,927,547 707,571,205 245,224,420 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 16,935 37,204 163,442 473,760 162,275 Minimum death benefit guarantee risk charge Contract terminations 337 811 87,316 21,790 110,437 Payable for investments purchased Total liabilities 17,272 38,015 250,758 495,550 272,712 Net assets applicable to Variable Life contracts in accumulation period 26,667,768 57,007,522 252,676,779 707,075,645 244,951,698 Net assets applicable to seed money 10 10 10 10 10 Total net assets $26,667,778 $57,007,532 $252,676,789 $707,075,655 $244,951,708 (1) Investment shares 2,288,791 4,888,637 20,646,814 57,754,589 19,808,085 (2) Investments, at cost $25,366,331 $52,474,595 $229,979,353 $594,805,467 $222,483,044 Dec. 31, 2012 (continued) VP Mod Aggr, Cl 4 VP Mod Conserv, VP Mod Conserv, Cl 4 VP Ptnrs Sm Cap Val, VP Sit Divd Gro, Assets Investments, at fair value (1),(2) $968,517,772 $66,208,576 $146,222,048 $15,531,131 $3,984,793 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 150,898 153,912 680 Receivable for share redemptions Total assets 968,517,772 66,359,474 146,375,960 15,531,131 3,985,473 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 665,055 43,150 96,069 11,292 2,664 Minimum death benefit guarantee risk charge Contract terminations 738,741 2,651 647 39 Payable for investments purchased Total liabilities 1,403,796 43,150 98,720 11,939 2,703 Net assets applicable to Variable Life contracts in accumulation period 967,113,976 66,316,314 146,277,230 15,519,181 3,982,693 Net assets applicable to seed money 10 10 11 77 Total net assets $967,113,976 $66,316,324 $146,277,240 $15,519,192 $3,982,770 (1) Investment shares 78,106,272 5,549,755 12,225,924 938,437 373,458 (2) Investments, at cost $799,881,291 $61,518,418 $129,146,878 $11,720,317 $3,405,426 See accompanying notes to financial statements. 8 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Assets and Liabilities Dec. 31, 2012 (continued) VP Vty Estb Val, Wanger Intl Wanger USA WF Adv VT Index Asset Alloc, WF Adv VT Intl Eq, Assets Investments, at fair value (1),(2) $1,714,086 $86,239,561 $88,399,666 $4,800,033 $21,366,003 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 274 7,532 944 Receivable for share redemptions 3,668 37,903 Total assets 1,714,360 86,247,093 88,399,666 4,804,645 21,403,906 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 1,110 55,091 57,927 3,668 11,501 Minimum death benefit guarantee risk charge Contract terminations 62 6,037 6,218 26,402 Payable for investments purchased 944 Total liabilities 1,172 61,128 64,145 4,612 37,903 Net assets applicable to Variable Life contracts in accumulation period 1,713,110 86,185,834 88,335,387 4,799,881 21,365,921 Net assets applicable to seed money 78 131 134 152 82 Total net assets $1,713,188 $86,185,965 $88,335,521 $4,800,033 $21,366,003 (1) Investment shares 140,040 2,764,975 2,612,283 356,350 4,307,662 (2) Investments, at cost $1,492,576 $73,811,741 $73,800,573 $4,409,930 $20,282,835 Dec. 31, 2012 (continued) Assets WF Adv VT Opp, WF Adv VT Sm Cap Gro, Investments, at fair value (1),(2) $15,065,775 $10,251,517 Dividends receivable Accounts receivable from RiverSource Life for contract purchase payments 7,343 Receivable for share redemptions 10,466 6,988 Total assets 15,076,241 10,265,848 Liabilities Payable to RiverSource Life for: Mortality and expense risk fee 10,158 6,988 Minimum death benefit guarantee risk charge Contract terminations 308 Payable for investments purchased 7,343 Total liabilities 10,466 14,331 Net assets applicable to Variable Life contracts in accumulation period 15,065,593 10,251,367 Net assets applicable to seed money 182 150 Total net assets $15,065,775 $10,251,517 (1) Investment shares 751,410 1,300,954 (2) Investments, at cost $12,670,699 $ 9,480,697 See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 9

Statements of Operations Year ended Dec. 31, 2012 Investment income AB VPS Gro & Inc, Cl B AB VPS Intl Val, Cl B AB VPS Lg Cap Gro, Cl B Dividend income $ 235,195 $ 587,601 $ 940 $ 50,607 $ 378,271 Variable account expenses 155,455 361,593 25,588 67,038 192,197 Investment income (loss) net 79,740 226,008 (24,648) (16,431) 186,074 Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 2,484,186 6,848,509 1,069,979 803,958 2,420,432 Cost of investments sold 2,607,979 8,679,989 948,765 802,784 2,646,505 Net realized gain (loss) on sales of investments (123,793) (1,831,480) 121,214 1,174 (226,073) Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 2,625,259 6,989,362 337,665 1,362,865 2,691,136 Net gain (loss) on investments 2,501,466 5,157,882 458,879 1,364,039 2,465,063 Net increase (decrease) in net assets resulting from operations $2,581,206 $ 5,383,890 $ 434,231 $1,347,608 $2,651,137 AC VP Intl, Cl II AC VP Val, Cl II Year ended Dec. 31, 2012 (continued) Investment income Calvert VP SRI Bal Bal, Cash Mgmt, Div Bond, Divd Opp, Dividend income $ 81,273 $ $ 7,430 $ 5,615,624 $ Variable account expenses 52,679 1,245,783 555,115 1,149,657 1,538,629 Investment income (loss) net 28,594 (1,245,783) (547,685) 4,465,967 (1,538,629) Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 1,858,331 22,974,591 31,675,047 23,248,390 39,727,344 Cost of investments sold 1,737,618 21,024,074 31,669,386 21,781,728 37,072,055 Net realized gain (loss) on sales of investments 120,713 1,950,517 5,661 1,466,662 2,655,289 Distributions from capital gains 3,744,873 Net change in unrealized appreciation or depreciation of investments 477,226 17,836,964 (5,661) (211,927) 23,141,233 Net gain (loss) on investments 597,939 19,787,481 4,999,608 25,796,522 Net increase (decrease) in net assets resulting from operations $ 626,533 $18,541,698 $ (547,685) $ 9,465,575 $24,257,893 Year ended Dec. 31, 2012 (continued) Investment income Emer Mkts, Global Bond, Hi Inc, Hi Yield Bond, Inc Opp, Dividend income $ 197,690 $1,128,627 $ 567,663 $4,582,425 $1,248,388 Variable account expenses 396,729 333,872 67,082 499,678 150,960 Investment income (loss) net (199,039) 794,755 500,581 4,082,747 1,097,428 Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 9,923,421 8,480,885 1,550,269 9,732,763 2,884,881 Cost of investments sold 9,631,228 7,958,038 1,461,981 9,037,249 2,777,556 Net realized gain (loss) on sales of investments 292,193 522,847 88,288 695,514 107,325 Distributions from capital gains 1,147,545 224,585 387,688 Net change in unrealized appreciation or depreciation of investments 7,759,088 767,301 497,084 3,851,242 874,185 Net gain (loss) on investments 9,198,826 1,514,733 585,372 4,546,756 1,369,198 Net increase (decrease) in net assets resulting from operations $8,999,787 $2,309,488 $1,085,953 $8,629,503 $2,466,626 See accompanying notes to financial statements. 10 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Operations Year ended Dec. 31, 2012 (continued) Investment income Intl Opp, Lg Cap Gro, Lg Core Quan, Mid Cap Gro Opp, Mid Cap Val Opp, Dividend income $ 1,317,154 $ $ $ $ Variable account expenses 688,993 314,225 2,010,080 95,239 74,965 Investment income (loss) net 628,161 (314,225) (2,010,080) (95,239) (74,965) Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 14,433,544 8,722,032 40,276,103 2,991,371 2,084,084 Cost of investments sold 11,921,844 7,401,420 36,398,216 2,675,039 1,980,415 Net realized gain (loss) on sales of investments 2,511,700 1,320,612 3,877,887 316,332 103,669 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 9,928,084 6,079,390 28,903,671 1,045,561 1,443,124 Net gain (loss) on investments 12,439,784 7,400,002 32,781,558 1,361,893 1,546,793 Net increase (decrease) in net assets resulting from operations $13,067,945 $7,085,777 $30,771,478 $1,266,654 $1,471,828 Year ended Dec. 31, 2012 (continued) Investment income S&P 500, Select Lg Cap Val, Select Sm Cap Val, US Govt Mtge, CS Commodity Return Dividend income $ $ $ $ 336,027 $ Variable account expenses 295,443 35,033 105,233 284,293 103,908 Investment income (loss) net (295,443) (35,033) (105,233) 51,734 (103,908) Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 8,925,445 1,619,163 3,967,791 9,466,248 2,610,386 Cost of investments sold 7,253,582 1,426,767 3,868,733 9,291,307 3,317,362 Net realized gain (loss) on sales of investments 1,671,863 192,396 99,058 174,941 (706,976) Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 3,872,293 532,409 2,140,345 79,404 436,584 Net gain (loss) on investments 5,544,156 724,805 2,239,403 254,345 (270,392) Net increase (decrease) in net assets resulting from operations $5,248,713 $ 689,772 $2,134,170 $ 306,079 $ (374,300) Year ended Dec. 31, 2012 (continued) Investment income EV VT Floating-Rate Inc Fid VIP Contrafund, Serv Fid VIP Gro & Inc, Serv Fid VIP Mid Cap, Serv Fid VIP Overseas, Serv Dividend income $ 908,253 $ 803,115 $ 507,292 $ 240,924 $ 203,096 Variable account expenses 165,566 550,685 225,002 565,741 106,562 Investment income (loss) net 742,687 252,430 282,290 (324,817) 96,534 Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 3,690,136 10,689,943 2,445,052 6,901,496 1,413,833 Cost of investments sold 3,590,759 9,477,740 2,336,159 6,247,149 1,666,017 Net realized gain (loss) on sales of investments 99,377 1,212,203 108,893 654,347 (252,184) Distributions from capital gains 234,349 12,199 4,986,998 40,315 Net change in unrealized appreciation or depreciation of investments 279,789 8,487,175 3,466,446 2,567,526 2,185,610 Net gain (loss) on investments 613,515 9,699,378 3,587,538 8,208,871 1,973,741 Net increase (decrease) in net assets resulting from operations $1,356,202 $ 9,951,808 $3,869,828 $7,884,054 $2,070,275 See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 11

Statements of Operations Year ended Dec. 31, 2012 (continued) Investment income FTVIPT Frank Global Real Est, FTVIPT Frank Sm Cap Val, FTVIPT Mutual Shares Sec, GS VIT Mid Cap Val, Inst GS VIT Structd U.S. Eq, Inst Dividend income $ $ 250,494 $ 377,466 $ 987,683 $ 570,612 Variable account expenses 363,256 254,779 157,732 666,354 247,490 Investment income (loss) net (363,256) (4,285) 219,734 321,329 323,122 Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 7,853,662 7,082,763 2,925,824 17,908,355 6,814,451 Cost of investments sold 11,457,681 6,155,354 2,959,705 17,020,195 6,749,558 Net realized gain (loss) on sales of investments (3,604,019) 927,409 (33,881) 888,160 64,893 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 14,580,211 4,268,862 2,121,256 12,666,787 3,728,717 Net gain (loss) on investments 10,976,192 5,196,271 2,087,375 13,554,947 3,793,610 Net increase (decrease) in net assets resulting from operations $10,612,936 $5,191,986 $2,307,109 $13,876,276 $4,116,732 Period ended Dec. 31, 2012 (continued) Investment income Invesco VI Div Divd, Ser I Invesco VI Intl Gro, Ser II Invesco VI Tech, Ser I Invesco VI Am Fran, Ser II (1) Invesco VI Comstock, Ser II Dividend income $ 99,360 $ 217,235 $ $ $ 79,877 Variable account expenses 36,009 114,185 43,622 42,950 41,734 Investment income (loss) net 63,351 103,050 (43,622) (42,950) 38,143 Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 1,177,807 3,158,632 1,364,911 478,224 1,449,457 Cost of investments sold 1,148,859 2,785,817 1,112,158 501,254 1,280,094 Net realized gain (loss) on sales of investments 28,948 372,815 252,753 (23,030) 169,363 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 629,197 1,783,451 296,573 (179,713) 669,642 Net gain (loss) on investments 658,145 2,156,266 549,326 (202,743) 839,005 Net increase (decrease) in net assets resulting from operations $ 721,496 $2,259,316 $ 505,704 $(245,693) $ 877,148 Period ended Dec. 31, 2012 (continued) Investment income Invesco VI Mid Cap Gro, Ser I (1) Invesco VI Mid Cap Gro, Ser II (1) Janus Aspen Global Tech, Serv Janus Aspen Janus, Serv Janus Aspen Overseas, Serv Dividend income $ $ $ $ 35,992 $ 373,543 Variable account expenses 26,402 17,874 73,145 65,960 451,437 Investment income (loss) net (26,402) (17,874) (73,145) (29,968) (77,894) Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 1,008,213 438,763 2,501,177 2,078,920 15,580,663 Cost of investments sold 1,066,704 462,720 2,027,312 1,788,656 16,394,534 Net realized gain (loss) on sales of investments (58,491) (23,957) 473,865 290,264 (813,871) Distributions from capital gains 1,818 925 141,076 6,693,189 Net change in unrealized appreciation or depreciation of investments (75,861) (46,377) 1,338,450 890,783 1,437,845 Net gain (loss) on investments (132,534) (69,409) 1,812,315 1,322,123 7,317,163 Net increase (decrease) in net assets resulting from operations $ (158,936) $ (87,283) $1,739,170 $1,292,155 $ 7,239,269 (1) For the period April 27, 2012 (commencement of operations) to Dec. 31, 2012. See accompanying notes to financial statements. 12 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Operations Year ended Dec. 31, 2012 (continued) Investment income MFS Inv Gro Stock, Serv Cl MFS New Dis, Serv Cl MFS Utilities, Serv Cl MS UIF Global Real Est, Cl II MS UIF Mid Cap Gro, Cl II Dividend income $ 61,715 $ $1,498,817 $ 53,269 $ Variable account expenses 208,772 158,810 192,191 76,738 71,040 Investment income (loss) net (147,057) (158,810) 1,306,626 (23,469) (71,040) Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 6,112,078 5,195,538 3,798,178 1,945,734 3,827,242 Cost of investments sold 4,602,248 4,886,779 3,634,546 1,812,918 3,876,440 Net realized gain (loss) on sales of investments 1,509,830 308,759 163,632 132,816 (49,198) Distributions from capital gains 1,360,140 2,075,861 1,092,994 Net change in unrealized appreciation or depreciation of investments 1,290,137 1,727,901 1,282,117 2,367,289 (327,986) Net gain (loss) on investments 4,160,107 4,112,521 1,445,749 2,500,105 715,810 Net increase (decrease) in net assets resulting from operations $4,013,050 $3,953,711 $2,752,375 $2,476,636 $ 644,770 Year ended Dec. 31, 2012 (continued) Investment income Oppen Global VA, Serv Oppen Global Strategic Inc VA, Srv Oppen Main St Sm Cap VA, Serv PIMCO VIT All Asset, Advisor Cl Put VT Global Hlth Care, Cl IB Dividend income $ 136,165 $3,425,389 $ 20,392 $1,640,195 $ 49,388 Variable account expenses 56,532 479,873 51,335 244,297 32,852 Investment income (loss) net 79,633 2,945,516 (30,943) 1,395,898 16,536 Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 1,793,008 9,081,496 956,253 3,801,133 1,169,610 Cost of investments sold 1,751,359 8,654,760 810,095 3,732,500 1,148,582 Net realized gain (loss) on sales of investments 41,649 426,736 146,158 68,633 21,028 Distributions from capital gains 659,610 318,639 Net change in unrealized appreciation or depreciation of investments 1,151,228 2,952,601 808,023 2,672,942 382,172 Net gain (loss) on investments 1,192,877 4,038,947 954,181 2,741,575 721,839 Net increase (decrease) in net assets resulting from operations $1,272,510 $6,984,463 $923,238 $4,137,473 $ 738,375 Year ended Dec. 31, 2012 (continued) Investment income Put VT Intl Eq, Cl IB Put VT Multi-Cap Gro, Cl IB VP Aggr, VP Aggr, Cl 4 VP BR Gl Infl Prot Sec, Dividend income $ 50,401 $ 14,324 $ $ $ 861,084 Variable account expenses 20,745 34,458 541,649 2,119,998 153,229 Investment income (loss) net 29,656 (20,134) (541,649) (2,119,998) 707,855 Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 364,608 1,863,417 9,975,080 41,015,468 4,162,017 Cost of investments sold 471,100 1,628,259 9,356,057 34,805,778 4,153,532 Net realized gain (loss) on sales of investments (106,492) 235,158 619,023 6,209,690 8,485 Distributions from capital gains 242,139 Net change in unrealized appreciation or depreciation of investments 517,503 680,349 7,786,469 26,605,695 (28,495) Net gain (loss) on investments 411,011 915,507 8,405,492 32,815,385 222,129 Net increase (decrease) in net assets resulting from operations $ 440,667 $ 895,373 $7,863,843 $30,695,387 $ 929,984 See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 13

Statements of Operations Year ended Dec. 31, 2012 (continued) Investment income VP Conserv, VP Conserv, Cl 4 VP Mod, VP Mod, Cl 4 VP Mod Aggr, Dividend income $ $ $ $ $ Variable account expenses 151,393 391,040 1,697,407 5,506,810 1,734,003 Investment income (loss) net (151,393) (391,040) (1,697,407) (5,506,810) (1,734,003) Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 6,388,952 14,167,934 11,624,483 67,368,297 12,660,427 Cost of investments sold 6,106,752 13,182,713 10,904,729 58,232,463 11,803,036 Net realized gain (loss) on sales of investments 282,200 985,221 719,754 9,135,834 857,391 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 1,027,463 2,415,711 20,195,714 60,369,194 22,784,941 Net gain (loss) on investments 1,309,663 3,400,932 20,915,468 69,505,028 23,642,332 Net increase (decrease) in net assets resulting from operations $1,158,270 $ 3,009,892 $19,218,061 $63,998,218 $21,908,329 Year ended Dec. 31, 2012 (continued) Investment income VP Mod Aggr, Cl 4 VP Mod Conserv, VP Mod Conserv, Cl 4 VP Ptnrs Sm Cap Val, VP Sit Divd Gro, Dividend income $ $ $ $ $ Variable account expenses 7,959,419 438,100 1,042,728 132,081 31,601 Investment income (loss) net (7,959,419) (438,100) (1,042,728) (132,081) (31,601) Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 123,708,792 8,610,369 18,960,337 2,249,219 947,158 Cost of investments sold 105,773,011 8,139,777 16,990,156 1,793,685 812,978 Net realized gain (loss) on sales of investments 17,935,781 470,592 1,970,181 455,534 134,180 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 92,258,366 3,954,662 9,065,619 1,493,396 256,696 Net gain (loss) on investments 110,194,147 4,425,254 11,035,800 1,948,930 390,876 Net increase (decrease) in net assets resulting from operations $102,234,728 $3,987,154 $ 9,993,072 $1,816,849 $359,275 Year ended Dec. 31, 2012 (continued) Investment income VP Vty Estb Val, Wanger Intl Wanger USA WF Adv VT Index Asset Alloc, WF Adv VT Intl Eq, Dividend income $ $ 1,016,733 $ 272,322 $ 68,356 $ 283,145 Variable account expenses 12,936 658,253 696,477 42,302 145,051 Investment income (loss) net (12,936) 358,480 (424,155) 26,054 138,094 Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 633,670 16,586,931 16,011,091 623,596 6,351,893 Cost of investments sold 574,356 13,894,949 13,486,787 581,639 5,809,263 Net realized gain (loss) on sales of investments 59,314 2,691,982 2,524,304 41,957 542,630 Distributions from capital gains 7,788,747 4,288,599 1,412,009 Net change in unrealized appreciation or depreciation of investments 189,965 4,945,627 8,764,247 446,419 461,391 Net gain (loss) on investments 249,279 15,426,356 15,577,150 488,376 2,416,030 Net increase (decrease) in net assets resulting from operations $236,343 $15,784,836 $15,152,995 $514,430 $2,554,124 See accompanying notes to financial statements. 14 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Operations Year ended Dec. 31, 2012 (continued) Investment income WF Adv VT Opp, WF Adv VT Sm Cap Gro, Dividend income $ 14,640 $ Variable account expenses 128,207 88,797 Investment income (loss) net (113,567) (88,797) Realized and unrealized gain (loss) on investments net Realized gain (loss) on sales of investments: Proceeds from sales 5,192,836 2,386,462 Cost of investments sold 4,596,228 2,090,701 Net realized gain (loss) on sales of investments 596,608 295,761 Distributions from capital gains 5,369 513,059 Net change in unrealized appreciation or depreciation of investments 1,784,237 49,559 Net gain (loss) on investments 2,386,214 858,379 Net increase (decrease) in net assets resulting from operations $2,272,647 $ 769,582 See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 15

Statements of Changes in Net Assets Year ended Dec. 31, 2012 Operations AB VPS Gro & Inc, Cl B AB VPS Intl Val, Cl B AB VPS Lg Cap Gro, Cl B Investment income (loss) net $ 79,740 $ 226,008 $ (24,648) $ (16,431) $ 186,074 Net realized gain (loss) on sales of investments (123,793) (1,831,480) 121,214 1,174 (226,073) Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 2,625,259 6,989,362 337,665 1,362,865 2,691,136 Net increase (decrease) in net assets resulting from operations 2,581,206 5,383,890 434,231 1,347,608 2,651,137 Contract transactions Contract purchase payments 1,595,656 4,898,135 173,494 755,650 2,000,265 Net transfers (1) (517,964) (4,176,572) (111,476) (380,565) (768,269) Transfers for policy loans (159,847) (292,162) (17,266) (60,845) (200,042) Policy charges (586,136) (1,668,514) (92,965) (283,510) (747,696) Surrender benefits (962,136) (2,578,347) (96,598) (230,073) (924,225) Death benefits (4,575) (3,526) Increase (decrease) from contract transactions (630,427) (3,822,035) (144,811) (199,343) (643,493) Net assets at beginning of year 16,063,255 42,487,312 2,715,984 6,922,043 20,093,357 Net assets at end of year $18,014,034 $44,049,167 $3,005,404 $8,070,308 $22,101,001 Accumulation unit activity Units outstanding at beginning of year 13,733,120 34,962,284 2,718,909 5,331,377 14,656,264 Contract purchase payments 1,240,840 3,864,563 166,010 536,440 1,353,143 Net transfers (1) (477,669) (3,344,210) (63,270) (274,520) (536,179) Transfers for policy loans (124,802) (224,993) (12,202) (42,918) (134,336) Policy charges (455,038) (1,309,479) (86,280) (201,331) (505,480) Surrender benefits (745,010) (2,011,615) (81,701) (165,188) (626,617) Death benefits (3,558) (2,413) Units outstanding at end of year 13,171,441 31,932,992 2,641,466 5,183,860 14,204,382 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. AC VP Intl, Cl II AC VP Val, Cl II 16 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations Calvert VP SRI Bal Bal, Cash Mgmt, Div Bond, Divd Opp, Investment income (loss) net $ 28,594 $ (1,245,783) $ (547,685) $ 4,465,967 $ (1,538,629) Net realized gain (loss) on sales of investments 120,713 1,950,517 5,661 1,466,662 2,655,289 Distributions from capital gains 3,744,873 Net change in unrealized appreciation or depreciation of investments 477,226 17,836,964 (5,661) (211,927) 23,141,233 Net increase (decrease) in net assets resulting from operations 626,533 18,541,698 (547,685) 9,465,575 24,257,893 Contract transactions Contract purchase payments 465,953 11,106,213 12,089,583 8,836,010 14,944,617 Net transfers (1) (146,717) (5,409,255) (4,775,679) 5,055,902 (20,850,368) Transfers for policy loans (129,616) (437,839) 2,345,236 (846,392) (1,430,122) Policy charges (254,636) (12,406,566) (8,101,455) (7,588,563) (7,764,573) Surrender benefits (492,553) (9,509,194) (12,998,658) (10,322,003) (11,669,630) Death benefits (180,566) (736,796) (149,312) (74,655) Increase (decrease) from contract transactions (557,569) (16,837,207) (12,177,769) (5,014,358) (26,844,731) Net assets at beginning of year 6,573,294 145,354,271 80,168,813 144,170,374 193,142,462 Net assets at end of year $6,642,258 $147,058,762 $ 67,443,359 $148,621,591 $190,555,624 Accumulation unit activity Units outstanding at beginning of year 5,586,091 129,362,328 73,315,734 91,587,307 126,361,424 Contract purchase payments 372,656 9,164,408 11,044,159 5,373,219 9,009,087 Net transfers (1) (287,775) (5,132,564) (3,505,273) 5,172,718 (12,645,030) Transfers for policy loans (99,535) (361,525) 2,322,395 (536,422) (855,975) Policy charges (200,804) (10,291,929) (7,444,765) (4,647,691) (4,669,802) Surrender benefits (361,635) (7,788,542) (12,272,053) (6,677,280) (7,016,638) Death benefits (132,374) (671,115) (100,954) (45,674) Units outstanding at end of year 5,008,998 114,819,802 62,789,082 90,170,897 110,137,392 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 17

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations Emer Mkts, Global Bond, Hi Inc, Hi Yield Bond, Inc Opp, Investment income (loss) net $ (199,039) $ 794,755 $ 500,581 $ 4,082,747 $ 1,097,428 Net realized gain (loss) on sales of investments 292,193 522,847 88,288 695,514 107,325 Distributions from capital gains 1,147,545 224,585 387,688 Net change in unrealized appreciation or depreciation of investments 7,759,088 767,301 497,084 3,851,242 874,185 Net increase (decrease) in net assets resulting from operations 8,999,787 2,309,488 1,085,953 8,629,503 2,466,626 Contract transactions Contract purchase payments 3,826,412 2,257,748 600,540 3,539,263 1,083,701 Net transfers (1) (3,604,230) (1,276,805) 459,951 2,578,920 2,844,653 Transfers for policy loans (552,322) (370,727) (72,429) (530,026) (138,055) Policy charges (1,642,238) (1,530,871) (233,368) (2,591,870) (655,303) Surrender benefits (2,636,726) (2,662,214) (424,883) (3,589,827) (1,250,529) Death benefits (5,739) (15,360) (17,534) (6) Increase (decrease) from contract transactions (4,614,843) (3,598,229) 329,811 (611,074) 1,884,461 Net assets at beginning of year 48,289,487 43,579,592 7,556,824 58,824,142 16,654,984 Net assets at end of year $52,674,431 $42,290,851 $8,972,588 $66,842,571 $21,006,071 Accumulation unit activity Units outstanding at beginning of year 23,395,839 25,721,567 5,445,584 31,904,567 11,167,581 Contract purchase payments 1,702,555 1,260,910 411,682 1,778,290 681,263 Net transfers (1) (1,286,187) 222,844 242,720 1,460,308 1,718,464 Transfers for policy loans (251,291) (229,390) (45,480) (266,956) (84,019) Policy charges (735,598) (887,352) (157,219) (1,309,607) (408,204) Surrender benefits (1,205,011) (1,681,331) (279,289) (1,825,172) (778,506) Death benefits (2,673) (9,523) (8,599) (4) Units outstanding at end of year 21,617,634 24,397,725 5,617,998 31,732,831 12,296,575 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 18 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations Intl Opp, Lg Cap Gro, Lg Core Quan, Mid Cap Gro Opp, Mid Cap Val Opp, Investment income (loss) net $ 628,161 $ (314,225) $ (2,010,080) $ (95,239) $ (74,965) Net realized gain (loss) on sales of investments 2,511,700 1,320,612 3,877,887 316,332 103,669 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 9,928,084 6,079,390 28,903,671 1,045,561 1,443,124 Net increase (decrease) in net assets resulting from operations 13,067,945 7,085,777 30,771,478 1,266,654 1,471,828 Contract transactions Contract purchase payments 5,678,533 2,925,241 20,356,324 1,013,069 711,345 Net transfers (1) (5,862,583) (2,457,443) (9,894,588) (915,806) (998,418) Transfers for policy loans (352,703) (460,380) (845,139) (169,850) (91,505) Policy charges (5,119,119) (1,494,642) (19,534,353) (560,778) (287,041) Surrender benefits (5,726,912) (2,835,810) (17,751,695) (766,333) (355,336) Death benefits (60,862) (5,308) (166,815) (5,545) Increase (decrease) from contract transactions (11,443,646) (4,328,342) (27,836,266) (1,405,243) (1,020,955) Net assets at beginning of year 84,057,834 37,920,163 242,318,826 12,264,947 8,777,465 Net assets at end of year $ 85,682,133 $40,677,598 $245,254,038 $12,126,358 $ 9,228,338 Accumulation unit activity Units outstanding at beginning of year 93,911,977 61,059,796 282,660,099 8,628,313 7,409,198 Contract purchase payments 5,915,701 4,204,302 21,295,750 671,322 568,119 Net transfers (1) (6,919,172) (7,021,417) (18,349,785) (747,052) (851,682) Transfers for policy loans (356,559) (669,339) (754,603) (106,671) (69,941) Policy charges (5,408,317) (2,007,779) (21,171,703) (357,010) (223,743) Surrender benefits (5,947,841) (3,727,135) (18,363,439) (459,036) (254,457) Death benefits (69,649) (2,971) (174,626) (2,697) Units outstanding at end of year 81,126,140 51,835,457 245,141,693 7,627,169 6,577,494 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 19

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations S&P 500, Select Lg Cap Val, Select Sm Cap Val, US Govt Mtge, CS Commodity Return Investment income (loss) net $ (295,443) $ (35,033) $ (105,233) $ 51,734 $ (103,908) Net realized gain (loss) on sales of investments 1,671,863 192,396 99,058 174,941 (706,976) Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 3,872,293 532,409 2,140,345 79,404 436,584 Net increase (decrease) in net assets resulting from operations 5,248,713 689,772 2,134,170 306,079 (374,300) Contract transactions Contract purchase payments 2,704,604 315,484 959,770 2,328,564 968,975 Net transfers (1) (718,902) (268,487) (1,765,159) 444,218 (34,421) Transfers for policy loans (344,457) (43,024) (138,793) 414,852 (128,818) Policy charges (1,513,486) (128,763) (593,369) (2,275,876) (370,175) Surrender benefits (2,911,551) (206,524) (774,879) (3,254,795) (740,899) Death benefits (15,358) Increase (decrease) from contract transactions (2,783,792) (331,314) (2,312,430) (2,358,395) (305,338) Net assets at beginning of year 36,939,577 4,074,010 13,370,994 38,244,184 13,973,348 Net assets at end of year $39,404,498 $4,432,468 $13,192,734 $36,191,868 $13,293,710 Accumulation unit activity Units outstanding at beginning of year 35,680,029 3,617,952 9,163,342 30,293,428 14,524,657 Contract purchase payments 2,403,025 260,524 605,908 1,819,391 1,052,594 Net transfers (1) (2,572,109) (318,370) (1,262,721) 925,074 (406,671) Transfers for policy loans (300,020) (36,662) (84,505) 317,513 (124,888) Policy charges (1,312,549) (104,271) (368,616) (1,788,251) (387,928) Surrender benefits (2,429,936) (160,422) (468,828) (2,666,275) (745,599) Death benefits (12,905) Units outstanding at end of year 31,468,440 3,258,751 7,584,580 28,887,975 13,912,165 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 20 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations EV VT Floating-Rate Inc Fid VIP Contrafund, Serv Fid VIP Gro & Inc, Serv Fid VIP Mid Cap, Serv Fid VIP Overseas, Serv Investment income (loss) net $ 742,687 $ 252,430 $ 282,290 $ (324,817) $ 96,534 Net realized gain (loss) on sales of investments 99,377 1,212,203 108,893 654,347 (252,184) Distributions from capital gains 234,349 12,199 4,986,998 40,315 Net change in unrealized appreciation or depreciation of investments 279,789 8,487,175 3,466,446 2,567,526 2,185,610 Net increase (decrease) in net assets resulting from operations 1,356,202 9,951,808 3,869,828 7,884,054 2,070,275 Contract transactions Contract purchase payments 1,397,560 4,787,435 2,425,011 6,017,266 1,306,069 Net transfers (1) 2,783,294 (2,082,697) (1,474,283) (5,482,662) (995,312) Transfers for policy loans (421,923) (733,820) (235,815) (581,849) (71,873) Policy charges (618,626) (1,975,609) (941,713) (2,170,832) (438,739) Surrender benefits (775,340) (3,048,530) (1,234,758) (3,109,226) (607,254) Death benefits (7) (11,077) (4,400) (5,893) Increase (decrease) from contract transactions 2,364,958 (3,064,298) (1,465,958) (5,333,196) (807,109) Net assets at beginning of year 20,913,258 65,685,906 23,060,468 59,947,775 11,100,664 Net assets at end of year $24,634,418 $72,573,416 $25,464,338 $62,498,633 $12,363,830 Accumulation unit activity Units outstanding at beginning of year 17,422,877 63,218,168 18,562,979 29,847,981 8,966,620 Contract purchase payments 1,141,126 4,296,043 1,762,043 2,758,898 961,885 Net transfers (1) 1,810,160 (4,228,067) (1,075,668) (2,478,529) (730,894) Transfers for policy loans (292,415) (567,108) (167,881) (265,774) (53,856) Policy charges (503,832) (1,726,542) (683,438) (993,850) (322,451) Surrender benefits (585,199) (2,449,340) (895,347) (1,426,159) (449,552) Death benefits (6) (10,901) (3,210) (2,683) Units outstanding at end of year 18,992,711 58,532,253 17,499,478 27,439,884 8,371,752 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 21

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations FTVIPT Frank Global Real Est, FTVIPT Frank Sm Cap Val, FTVIPT Mutual Shares Sec, GS VIT Mid Cap Val, Inst GS VIT Structd U.S. Eq, Inst Investment income (loss) net $ (363,256) $ (4,285) $ 219,734 $ 321,329 $ 323,122 Net realized gain (loss) on sales of investments (3,604,019) 927,409 (33,881) 888,160 64,893 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 14,580,211 4,268,862 2,121,256 12,666,787 3,728,717 Net increase (decrease) in net assets resulting from operations 10,612,936 5,191,986 2,307,109 13,876,276 4,116,732 Contract transactions Contract purchase payments 3,873,654 2,289,384 1,807,326 5,900,328 2,395,709 Net transfers (1) (1,526,289) (3,020,851) (1,696,650) (6,682,447) (2,638,416) Transfers for policy loans (244,003) (173,562) (185,912) (634,785) (192,093) Policy charges (1,840,955) (1,212,978) (661,506) (3,284,940) (1,260,716) Surrender benefits (2,778,442) (2,180,596) (959,531) (5,416,164) (2,137,961) Death benefits (2,853) (54,352) (63,012) Increase (decrease) from contract transactions (2,518,888) (4,352,955) (1,696,273) (10,181,020) (3,833,477) Net assets at beginning of year 41,430,118 32,212,487 18,021,035 83,147,324 31,252,062 Net assets at end of year $49,524,166 $33,051,518 $18,631,871 $ 86,842,580 $31,535,317 Accumulation unit activity Units outstanding at beginning of year 24,298,435 14,868,261 13,996,877 37,702,216 31,288,303 Contract purchase payments 1,987,100 978,484 1,315,973 2,392,584 2,211,182 Net transfers (1) (505,997) (962,819) (1,270,737) (1,153,144) (3,668,196) Transfers for policy loans (123,815) (72,856) (134,744) (269,639) (192,652) Policy charges (951,812) (529,620) (479,066) (1,368,599) (1,139,116) Surrender benefits (1,458,571) (971,995) (681,009) (2,323,136) (1,849,884) Death benefits (1,516) (24,772) (23,887) Units outstanding at end of year 23,243,824 13,284,683 12,747,294 34,956,395 26,649,637 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 22 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Period ended Dec. 31, 2012 (continued) Operations Invesco VI Div Divd, Ser I Invesco VI Intl Gro, Ser II Invesco VI Tech, Ser I Invesco VI Am Fran, Ser II (2) Invesco VI Comstock, Ser II Investment income (loss) net $ 63,351 $ 103,050 $ (43,622) $ (42,950) $ 38,143 Net realized gain (loss) on sales of investments 28,948 372,815 252,753 (23,030) 169,363 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 629,197 1,783,451 296,573 (179,713) 669,642 Net increase (decrease) in net assets resulting from operations 721,496 2,259,316 505,704 (245,693) 877,148 Contract transactions Contract purchase payments 358,934 1,164,690 431,626 538,826 308,401 Net transfers (1) 1,294,474 738,359 (115,576) 7,289,809 (261,276) Transfers for policy loans (66,644) (53,369) (72,173) (35,055) (36,881) Policy charges (165,131) (495,696) (178,230) (194,352) (146,461) Surrender benefits (195,803) (919,395) (238,859) (203,701) (293,218) Death benefits (2,204) (4) Increase (decrease) from contract transactions 1,225,830 432,385 (173,212) 7,395,527 (429,439) Net assets at beginning of year 3,733,735 15,340,592 4,857,815 5,027,264 Net assets at end of year $5,681,061 $18,032,293 $5,190,307 $7,149,834 $5,474,973 Accumulation unit activity Units outstanding at beginning of year 4,067,135 14,796,522 3,837,992 5,384,435 Contract purchase payments 356,339 1,098,288 317,305 570,401 317,436 Net transfers (1) 1,249,915 (42,631) (182,991) 7,280,627 (527,547) Transfers for policy loans (66,700) (52,789) (48,379) (37,842) (37,829) Policy charges (163,243) (429,888) (127,731) (205,697) (141,398) Surrender benefits (191,515) (745,311) (162,177) (215,593) (251,057) Death benefits (1,398) (4) Units outstanding at end of year 5,251,931 14,622,793 3,634,019 7,391,896 4,744,036 (1) (2) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. For the period April 27, 2012 (commencement of operations) to Dec. 31, 2012. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 23

Statements of Changes in Net Assets Period ended Dec. 31, 2012 (continued) Operations Invesco VI Mid Cap Gro, Ser I (2) Invesco VI Mid Cap Gro, Ser II (2) Janus Aspen Global Tech, Serv Janus Aspen Janus, Serv Janus Aspen Overseas, Serv Investment income (loss) net $ (26,402) $ (17,874) $ (73,145) $ (29,968) $ (77,894) Net realized gain (loss) on sales of investments (58,491) (23,957) 473,865 290,264 (813,871) Distributions from capital gains 1,818 925 141,076 6,693,189 Net change in unrealized appreciation or depreciation of investments (75,861) (46,377) 1,338,450 890,783 1,437,845 Net increase (decrease) in net assets resulting from operations (158,936) (87,283) 1,739,170 1,292,155 7,239,269 Contract transactions Contract purchase payments 235,845 212,948 741,253 539,268 4,546,570 Net transfers (1) 6,062,712 3,050,030 (899,884) (641,735) (8,524,695) Transfers for policy loans (35,161) (40,455) (95,714) (72,581) (504,556) Policy charges (186,285) (85,494) (412,167) (210,942) (2,127,627) Surrender benefits (206,439) (179,759) (635,725) (393,449) (3,704,827) Death benefits (6) (12,136) Increase (decrease) from contract transactions 5,870,672 2,957,270 (1,302,237) (779,445) (10,327,271) Net assets at beginning of year 9,853,661 7,627,570 62,697,548 Net assets at end of year $5,711,736 $2,869,987 $10,290,594 $8,140,280 $ 59,609,546 Accumulation unit activity Units outstanding at beginning of year 13,225,395 7,908,097 47,186,163 Contract purchase payments 249,996 226,014 941,180 509,877 3,267,386 Net transfers (1) 6,041,879 3,036,528 (1,986,536) (819,223) (7,083,452) Transfers for policy loans (36,409) (42,122) (65,465) (63,675) (342,960) Policy charges (197,417) (90,724) (483,651) (194,619) (1,499,702) Surrender benefits (220,471) (191,528) (639,154) (319,371) (2,527,540) Death benefits (6) (9,450) Units outstanding at end of year 5,837,578 2,938,168 10,991,769 7,021,080 38,990,445 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. (2) For the period April 27, 2012 (commencement of operations) to Dec. 31, 2012. See accompanying notes to financial statements. 24 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations MFS Inv Gro Stock, Serv Cl MFS New Dis, Serv Cl MFS Utilities, Serv Cl MS UIF Global Real Est, Cl II MS UIF Mid Cap Gro, Cl II Investment income (loss) net $ (147,057) $ (158,810) $ 1,306,626 $ (23,469) $ (71,040) Net realized gain (loss) on sales of investments 1,509,830 308,759 163,632 132,816 (49,198) Distributions from capital gains 1,360,140 2,075,861 1,092,994 Net change in unrealized appreciation or depreciation of investments 1,290,137 1,727,901 1,282,117 2,367,289 (327,986) Net increase (decrease) in net assets resulting from operations 4,013,050 3,953,711 2,752,375 2,476,636 644,770 Contract transactions Contract purchase payments 1,725,201 1,382,490 1,593,606 645,814 621,198 Net transfers (1) (1,190,737) (1,763,507) (266,046) 144,620 (1,929,006) Transfers for policy loans (165,784) (89,419) (246,921) (56,728) (85,512) Policy charges (914,597) (801,779) (813,914) (238,494) (294,850) Surrender benefits (1,568,535) (1,069,747) (1,122,569) (613,740) (332,917) Death benefits (1,790) (823) (2) Increase (decrease) from contract transactions (2,114,452) (2,343,752) (856,667) (118,530) (2,021,087) Net assets at beginning of year 25,872,955 20,605,615 22,793,593 8,638,696 9,143,755 Net assets at end of year $27,771,553 $22,215,574 $24,689,301 $10,996,802 $ 7,767,438 Accumulation unit activity Units outstanding at beginning of year 29,144,066 14,969,385 9,201,415 9,999,321 7,497,775 Contract purchase payments 1,821,245 898,575 588,394 667,304 490,534 Net transfers (1) (3,021,167) (2,003,562) 295,354 (321,412) (1,754,865) Transfers for policy loans (164,905) (55,356) (93,080) (46,587) (59,709) Policy charges (907,782) (504,765) (308,722) (237,998) (229,163) Surrender benefits (1,514,694) (634,431) (459,122) (494,770) (250,380) Death benefits (757) (294) (3) Units outstanding at end of year 25,356,763 12,669,089 9,223,945 9,565,855 5,694,192 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 25

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations Oppen Global VA, Serv Oppen Global Strategic Inc VA, Srv Oppen Main St Sm Cap VA, Serv PIMCO VIT All Asset, Advisor Cl Put VT Global Hlth Care, Cl IB Investment income (loss) net $ 79,633 $ 2,945,516 $ (30,943) $ 1,395,898 $ 16,536 Net realized gain (loss) on sales of investments 41,649 426,736 146,158 68,633 21,028 Distributions from capital gains 659,610 318,639 Net change in unrealized appreciation or depreciation of investments 1,151,228 2,952,601 808,023 2,672,942 382,172 Net increase (decrease) in net assets resulting from operations 1,272,510 6,984,463 923,238 4,137,473 738,375 Contract transactions Contract purchase payments 557,053 3,532,289 624,771 2,086,839 306,775 Net transfers (1) (246,205) 907,988 87,453 6,504,512 92,879 Transfers for policy loans (92,682) (368,921) (41,100) (195,961) (71,449) Policy charges (233,043) (1,965,404) (204,074) (836,727) (144,756) Surrender benefits (308,873) (3,815,050) (258,230) (1,680,312) (210,283) Death benefits (150) (9,102) (226) (85,810) Increase (decrease) from contract transactions (323,900) (1,718,200) 208,594 5,792,541 (26,834) Net assets at beginning of year 6,606,612 57,862,482 5,507,058 28,096,724 3,557,667 Net assets at end of year $7,555,222 $63,128,745 $6,638,890 $38,026,738 $4,269,208 Accumulation unit activity Units outstanding at beginning of year 5,561,757 43,973,307 4,516,368 22,417,059 2,875,751 Contract purchase payments 439,969 2,538,223 475,196 1,566,181 221,416 Net transfers (1) (299,906) 463,515 (56,247) 4,382,533 50,730 Transfers for policy loans (70,447) (262,251) (29,864) (143,266) (51,570) Policy charges (182,331) (1,400,586) (150,899) (618,567) (104,149) Surrender benefits (227,254) (2,695,725) (177,498) (1,195,272) (150,258) Death benefits (131) (6,390) (189) (65,449) Units outstanding at end of year 5,221,657 42,610,093 4,576,867 26,343,219 2,841,920 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 26 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations Put VT Intl Eq, Cl IB Put VT Multi-Cap Gro, Cl IB VP Aggr, VP Aggr, Cl 4 VP BR Gl Infl Prot Sec, Investment income (loss) net $ 29,656 $ (20,134) $ (541,649) $ (2,119,998) $ 707,855 Net realized gain (loss) on sales of investments (106,492) 235,158 619,023 6,209,690 8,485 Distributions from capital gains 242,139 Net change in unrealized appreciation or depreciation of investments 517,503 680,349 7,786,469 26,605,695 (28,495) Net increase (decrease) in net assets resulting from operations 440,667 895,373 7,863,843 30,695,387 929,984 Contract transactions Contract purchase payments 254,167 397,668 9,292,618 26,913,931 1,227,732 Net transfers (1) (107,366) (520,929) 8,104,796 (25,037,212) 753,219 Transfers for policy loans (12,829) (4,811) (746,084) (3,080,189) (283,294) Policy charges (92,056) (229,302) (1,971,069) (6,377,116) (608,909) Surrender benefits (116,189) (454,672) (2,827,907) (13,563,774) (1,035,024) Death benefits (1,950) (5,779) (8,399) (10) Increase (decrease) from contract transactions (76,223) (817,825) 11,852,354 (21,152,759) 53,714 Net assets at beginning of year 2,153,905 5,686,518 56,644,702 246,147,303 19,012,625 Net assets at end of year $2,518,349 $5,764,066 $76,360,899 $255,689,931 $19,996,323 Accumulation unit activity Units outstanding at beginning of year 1,936,253 5,328,172 52,489,708 227,782,310 15,016,149 Contract purchase payments 208,750 333,836 7,992,348 23,110,598 944,023 Net transfers (1) (95,323) (434,514) 6,989,472 (21,386,867) 649,619 Transfers for policy loans (10,268) (4,069) (644,120) (2,619,184) (221,991) Policy charges (75,360) (192,354) (1,692,978) (5,471,683) (470,132) Surrender benefits (94,160) (379,234) (2,425,159) (11,641,686) (808,253) Death benefits (1,594) (4,818) (7,274) (8) Units outstanding at end of year 1,868,298 4,647,019 62,709,271 209,766,214 15,109,407 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 27

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations VP Conserv, VP Conserv, Cl 4 VP Mod, VP Mod, Cl 4 VP Mod Aggr, Investment income (loss) net $ (151,393) $ (391,040) $ (1,697,407) $ (5,506,810) $ (1,734,003) Net realized gain (loss) on sales of investments 282,200 985,221 719,754 9,135,834 857,391 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 1,027,463 2,415,711 20,195,714 60,369,194 22,784,941 Net increase (decrease) in net assets resulting from operations 1,158,270 3,009,892 19,218,061 63,998,218 21,908,329 Contract transactions Contract purchase payments 1,919,119 3,497,703 21,856,148 52,558,291 31,062,802 Net transfers (1) 9,534,889 10,232,346 64,786,594 21,748,444 34,995,149 Transfers for policy loans (346,443) (296,437) (1,745,236) (4,025,530) (1,211,126) Policy charges (772,420) (1,781,988) (8,160,083) (24,343,010) (6,610,150) Surrender benefits (1,216,835) (4,398,800) (10,495,700) (41,563,168) (8,910,245) Death benefits (361,301) (121,250) Increase (decrease) from contract transactions 9,118,310 7,252,824 66,241,723 4,013,726 49,205,180 Net assets at beginning of year 16,391,198 46,744,816 167,217,005 639,063,711 173,838,199 Net assets at end of year $26,667,778 $57,007,532 $252,676,789 $707,075,655 $244,951,708 Accumulation unit activity Units outstanding at beginning of year 15,302,204 43,642,155 153,548,966 586,389,528 159,796,046 Contract purchase payments 1,719,227 3,143,126 18,933,988 45,481,475 26,738,756 Net transfers (1) 8,509,437 9,020,864 56,090,892 18,561,181 30,410,085 Transfers for policy loans (311,892) (262,365) (1,503,687) (3,493,986) (1,035,540) Policy charges (692,729) (1,601,492) (7,058,186) (21,053,379) (5,676,578) Surrender benefits (1,093,347) (3,955,525) (9,036,394) (35,876,807) (7,668,625) Death benefits (311,071) (107,339) Units outstanding at end of year 23,432,900 49,986,763 210,975,579 589,696,941 202,456,805 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 28 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations VP Mod Aggr, Cl 4 VP Mod Conserv, VP Mod Conserv, Cl 4 VP Ptnrs Sm Cap Val, VP Sit Divd Gro, Investment income (loss) net $ (7,959,419) $ (438,100) $ (1,042,728) $ (132,081) $ (31,601) Net realized gain (loss) on sales of investments 17,935,781 470,592 1,970,181 455,534 134,180 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 92,258,366 3,954,662 9,065,619 1,493,396 256,696 Net increase (decrease) in net assets resulting from operations 102,234,728 3,987,154 9,993,072 1,816,849 359,275 Contract transactions Contract purchase payments 92,395,226 4,040,241 8,604,100 1,272,499 292,821 Net transfers (1) (66,516,122) 20,387,816 20,427,838 (1,335,023) (38,455) Transfers for policy loans (7,840,195) (543,133) (593,798) (133,530) (29,875) Policy charges (26,484,607) (2,380,175) (5,026,916) (498,573) (107,989) Surrender benefits (49,459,106) (3,742,854) (7,602,929) (632,038) (171,335) Death benefits (309,793) (3,846) (99,740) (3,404) (6) Increase (decrease) from contract transactions (58,214,597) 17,758,049 15,708,555 (1,330,069) (54,839) Net assets at beginning of year 923,093,845 44,571,121 120,575,613 15,032,412 3,678,334 Net assets at end of year $967,113,976 $66,316,324 $146,277,240 $15,519,192 $3,982,770 Accumulation unit activity Units outstanding at beginning of year 847,281,123 41,194,102 111,221,531 9,036,146 4,094,951 Contract purchase payments 79,401,604 3,557,507 7,572,112 718,723 309,517 Net transfers (1) (57,140,888) 17,879,461 17,806,986 (758,375) (163,129) Transfers for policy loans (6,720,461) (476,123) (509,824) (74,837) (37,780) Policy charges (22,728,799) (2,096,442) (4,420,562) (281,322) (109,419) Surrender benefits (42,477,623) (3,279,344) (6,656,465) (356,027) (172,378) Death benefits (267,835) (3,337) (88,036) (1,872) (6) Units outstanding at end of year 797,347,121 56,775,824 124,925,742 8,282,436 3,921,756 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 29

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations VP Vty Estb Val, Wanger Intl Wanger USA WF Adv VT Index Asset Alloc, WF Adv VT Intl Eq, Investment income (loss) net $ (12,936) $ 358,480 $ (424,155) $ 26,054 $ 138,094 Net realized gain (loss) on sales of investments 59,314 2,691,982 2,524,304 41,957 542,630 Distributions from capital gains 7,788,747 4,288,599 1,412,009 Net change in unrealized appreciation or depreciation of investments 189,965 4,945,627 8,764,247 446,419 461,391 Net increase (decrease) in net assets resulting from operations 236,343 15,784,836 15,152,995 514,430 2,554,124 Contract transactions Contract purchase payments 130,950 5,831,498 6,141,157 529,754 1,305,774 Net transfers (1) 67,866 (6,832,425) (6,137,555) 144,689 (2,363,604) Transfers for policy loans (1,057) (831,370) (741,371) (137,166) (14,613) Policy charges (50,269) (2,886,358) (3,033,243) (213,442) (917,762) Surrender benefits (55,226) (5,387,892) (5,264,944) (285,015) (1,679,904) Death benefits (2,464) (38,334) (10,238) Increase (decrease) from contract transactions 92,264 (10,109,011) (9,074,290) 38,820 (3,680,347) Net assets at beginning of year 1,384,581 80,510,140 82,256,816 4,246,783 22,492,226 Net assets at end of year $1,713,188 $ 86,185,965 $88,335,521 $4,800,033 $21,366,003 Accumulation unit activity Units outstanding at beginning of year 1,126,985 52,283,106 43,104,335 3,111,570 17,392,651 Contract purchase payments 101,104 3,433,678 2,871,223 356,636 965,508 Net transfers (1) 27,346 (4,484,002) (2,584,489) 100,909 (1,799,720) Transfers for policy loans (1,061) (470,213) (347,380) (91,165) (11,107) Policy charges (37,641) (1,679,185) (1,423,583) (144,153) (678,284) Surrender benefits (36,346) (3,105,706) (2,491,540) (194,224) (1,237,925) Death benefits (1,620) (17,774) (7,685) Units outstanding at end of year 1,180,387 45,976,058 39,110,792 3,139,573 14,623,438 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 30 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2012 (continued) Operations WF Adv VT Opp, WF Adv VT Sm Cap Gro, Investment income (loss) net $ (113,567) $ (88,797) Net realized gain (loss) on sales of investments 596,608 295,761 Distributions from capital gains 5,369 513,059 Net change in unrealized appreciation or depreciation of investments 1,784,237 49,559 Net increase (decrease) in net assets resulting from operations 2,272,647 769,582 Contract transactions Contract purchase payments 1,110,633 880,426 Net transfers (1) (3,824,216) (965,075) Transfers for policy loans (177,662) (107,104) Policy charges (467,147) (337,019) Surrender benefits (904,080) (499,865) Death benefits Increase (decrease) from contract transactions (4,262,472) (1,028,637) Net assets at beginning of year 17,055,600 10,510,572 Net assets at end of year $15,065,775 $10,251,517 Accumulation unit activity Units outstanding at beginning of year 10,886,518 5,886,279 Contract purchase payments 665,444 462,172 Net transfers (1) (2,288,132) (541,467) Transfers for policy loans (103,103) (54,261) Policy charges (277,832) (175,795) Surrender benefits (523,811) (256,935) Death benefits Units outstanding at end of year 8,359,084 5,319,993 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 31

Statements of Changes in Net Assets Year ended Dec. 31, 2011 Operations AB VPS Gro & Inc, Cl B AB VPS Intl Val, Cl B AB VPS Lg Cap Gro, Cl B Investment income (loss) net $ 28,642 $ 1,528,623 $ (19,786) $ 26,351 $ 197,136 Net realized gain (loss) on sales of investments (362,740) (1,093,090) 65,922 27,289 (416,160) Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 1,099,603 (11,285,497) (209,755) (1,097,401) 201,109 Net increase (decrease) in net assets resulting from operations 765,505 (10,849,964) (163,619) (1,043,761) (17,915) Contract transactions Contract purchase payments 1,779,624 5,923,770 198,271 921,637 2,461,291 Net transfers (1) (118,597) (5,811,635) 917,961 (551,482) (1,108,051) Transfers for policy loans (177,840) (466,957) (8,861) (97,515) (127,024) Policy charges (572,611) (1,965,839) (77,963) (309,139) (755,809) Surrender benefits (725,856) (2,653,735) (147,859) (254,707) (750,124) Death benefits (11,533) (36,491) (1,503) Increase (decrease) from contract transactions 173,187 (5,010,887) 881,549 (292,709) (279,717) Net assets at beginning of year 15,124,563 58,348,163 1,998,054 8,258,513 20,390,989 Net assets at end of year $16,063,255 $ 42,487,312 $2,715,984 $ 6,922,043 $20,093,357 Accumulation unit activity Units outstanding at beginning of year 13,656,909 38,470,408 1,957,631 5,535,531 14,867,643 Contract purchase payments 1,557,620 4,196,042 206,085 640,899 1,800,538 Net transfers (1) (187,538) (4,128,409) 785,158 (385,113) (810,842) Transfers for policy loans (156,854) (309,673) (8,985) (68,804) (94,746) Policy charges (499,415) (1,386,655) (78,265) (213,823) (555,227) Surrender benefits (627,815) (1,853,989) (142,715) (176,403) (551,102) Death benefits (9,787) (25,440) (910) Units outstanding at end of year 13,733,120 34,962,284 2,718,909 5,331,377 14,656,264 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. AC VP Intl, Cl II AC VP Val, Cl II 32 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations Calvert VP SRI Bal Bal, Cash Mgmt, Div Bond, Divd Opp, Investment income (loss) net $ 31,279 $ (1,319,902) $ (591,951) $ 5,405,359 $ (1,794,425) Net realized gain (loss) on sales of investments 2,749 20,778 9,393 2,033,278 1,110,563 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments 218,106 3,807,814 (9,393) 862,386 (11,582,762) Net increase (decrease) in net assets resulting from operations 252,134 2,508,690 (591,951) 8,301,023 (12,266,624) Contract transactions Contract purchase payments 585,311 11,342,928 13,377,673 9,458,506 17,924,300 Net transfers (1) (509,776) (7,299,431) 12,900,474 (11,929,430) (24,184,845) Transfers for policy loans (246,460) (666,987) 412,880 (1,178,244) (1,747,864) Policy charges (251,035) (13,353,201) (8,356,179) (7,886,705) (8,445,227) Surrender benefits (383,531) (10,586,362) (11,378,572) (9,051,378) (12,060,490) Death benefits (88,809) (326,264) (380,128) (126,818) Increase (decrease) from contract transactions (805,491) (20,651,862) 6,630,012 (20,967,379) (28,640,944) Net assets at beginning of year 7,126,651 163,497,443 74,130,752 156,836,730 234,050,030 Net assets at end of year $6,573,294 $145,354,271 $ 80,168,813 $144,170,374 $193,142,462 Accumulation unit activity Units outstanding at beginning of year 6,428,586 148,963,543 65,650,744 102,662,454 144,392,048 Contract purchase payments 517,307 10,216,085 11,943,938 6,005,640 11,234,514 Net transfers (1) (589,475) (7,679,448) 13,556,690 (5,114,871) (15,278,465) Transfers for policy loans (218,637) (578,373) 397,529 (755,565) (1,064,920) Policy charges (220,507) (12,052,427) (7,495,564) (5,063,756) (5,306,258) Surrender benefits (331,183) (9,428,775) (10,443,504) (5,951,395) (7,530,256) Death benefits (78,277) (294,099) (195,200) (85,239) Units outstanding at end of year 5,586,091 129,362,328 73,315,734 91,587,307 126,361,424 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 33

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations Emer Mkts, Global Bond, Hi Inc, Hi Yield Bond, Inc Opp, Investment income (loss) net $ 191,591 $ 923,995 $ 481,992 $ 4,543,948 $ 1,275,675 Net realized gain (loss) on sales of investments 1,695,347 645,028 25,053 731,715 176,259 Distributions from capital gains 915,767 220,575 420,860 Net change in unrealized appreciation or depreciation of investments (16,732,929) (47,292) (105,836) (2,401,245) (1,064,836) Net increase (decrease) in net assets resulting from operations (13,930,224) 1,742,306 401,209 2,874,418 807,958 Contract transactions Contract purchase payments 4,628,529 2,489,896 558,798 4,207,427 1,047,918 Net transfers (1) (5,358,884) (2,274,955) 442,494 (4,855,300) 1,081,189 Transfers for policy loans (787,425) (369,512) (98,789) (557,569) (185,562) Policy charges (1,879,042) (1,591,589) (208,799) (2,489,270) (557,029) Surrender benefits (2,710,816) (2,468,216) (386,466) (3,569,656) (612,318) Death benefits (35,969) (100,831) (51,450) (120) Increase (decrease) from contract transactions (6,143,607) (4,315,207) 307,238 (7,315,818) 774,078 Net assets at beginning of year 68,363,318 46,152,493 6,848,377 63,265,542 15,072,948 Net assets at end of year $ 48,289,487 $43,579,592 $7,556,824 $58,824,142 $16,654,984 Accumulation unit activity Units outstanding at beginning of year 25,523,540 27,087,129 5,298,090 35,748,613 10,732,835 Contract purchase payments 1,908,313 1,400,932 422,161 2,311,679 729,633 Net transfers (1) (1,783,020) (83,175) 239,208 (2,472,070) 630,819 Transfers for policy loans (311,156) (218,458) (72,615) (306,782) (127,321) Policy charges (781,436) (921,815) (156,119) (1,372,685) (383,509) Surrender benefits (1,144,969) (1,489,294) (285,141) (1,975,774) (414,790) Death benefits (15,433) (53,752) (28,414) (86) Units outstanding at end of year 23,395,839 25,721,567 5,445,584 31,904,567 11,167,581 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 34 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations Intl Opp, Lg Cap Gro, Lg Core Quan, Mid Cap Gro Opp, Mid Cap Val Opp, Investment income (loss) net $ 508,494 $ (344,672) $ (2,107,972) $ (118,856) $ (82,374) Net realized gain (loss) on sales of investments 4,544,635 884,939 (505,177) 797,551 51,310 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments (18,046,017) (2,095,311) 13,839,663 (3,134,270) (886,067) Net increase (decrease) in net assets resulting from operations (12,992,888) (1,555,044) 11,226,514 (2,455,575) (917,131) Contract transactions Contract purchase payments 6,502,432 3,357,295 22,542,813 1,176,507 815,271 Net transfers (1) (7,831,214) (4,151,179) (14,466,045) (1,043,264) (874,453) Transfers for policy loans (444,441) (336,863) (643,351) (175,428) (132,369) Policy charges (5,824,975) (1,559,708) (20,459,533) (643,962) (297,281) Surrender benefits (6,783,256) (2,261,580) (18,539,274) (684,469) (269,826) Death benefits (19,038) (3,517) (126,512) (7,477) (2,478) Increase (decrease) from contract transactions (14,400,492) (4,955,552) (31,691,902) (1,378,093) (761,136) Net assets at beginning of year 111,451,214 44,430,759 262,784,214 16,098,615 10,455,732 Net assets at end of year $ 84,057,834 $ 37,920,163 $242,318,826 $12,264,947 $ 8,777,465 Accumulation unit activity Units outstanding at beginning of year 110,254,533 76,325,076 336,117,237 10,046,629 8,268,060 Contract purchase payments 6,611,402 5,621,690 27,163,957 758,840 669,015 Net transfers (1) (9,798,999) (14,486,890) (32,644,072) (1,237,224) (964,107) Transfers for policy loans (450,256) (558,975) (646,439) (111,813) (104,462) Policy charges (5,977,266) (2,461,877) (25,188,765) (405,004) (240,370) Surrender benefits (6,707,930) (3,374,196) (21,985,528) (418,738) (217,037) Death benefits (19,507) (5,032) (156,291) (4,377) (1,901) Units outstanding at end of year 93,911,977 61,059,796 282,660,099 8,628,313 7,409,198 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 35

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations S&P 500, Select Lg Cap Val, Select Sm Cap Val, US Govt Mtge, CS Commodity Return Investment income (loss) net $ (317,993) $ (37,071) $ (122,141) $ 23,651 $ 260,918 Net realized gain (loss) on sales of investments 1,235,743 145,890 (85,421) 186,764 (492,894) Distributions from capital gains Net change in unrealized appreciation or depreciation of investments (535,053) (335,986) (1,170,846) (650) (1,944,887) Net increase (decrease) in net assets resulting from operations 382,697 (227,167) (1,378,408) 209,765 (2,176,863) Contract transactions Contract purchase payments 3,104,808 383,906 1,111,029 2,887,570 1,147,973 Net transfers (1) (2,365,523) 635,898 (1,082,084) (851,364) 2,171,945 Transfers for policy loans (560,077) (46,315) (136,945) (262,468) (209,461) Policy charges (1,578,571) (123,084) (620,766) (2,303,628) (408,980) Surrender benefits (2,606,277) (127,172) (723,656) (3,145,970) (661,607) Death benefits (2,738) (23,491) Increase (decrease) from contract transactions (4,005,640) 723,233 (1,455,160) (3,699,351) 2,039,870 Net assets at beginning of year 40,562,520 3,577,944 16,204,562 41,733,770 14,110,341 Net assets at end of year $36,939,577 $4,074,010 $13,370,994 $38,244,184 $13,973,348 Accumulation unit activity Units outstanding at beginning of year 41,717,784 3,205,180 10,437,637 32,466,145 13,210,389 Contract purchase payments 3,146,171 355,008 736,690 2,231,803 1,116,935 Net transfers (1) (4,691,500) 320,785 (1,043,794) 54,365 1,377,679 Transfers for policy loans (583,205) (43,255) (92,132) (214,734) (193,565) Policy charges (1,578,864) (108,379) (408,589) (1,792,279) (386,143) Surrender benefits (2,330,357) (111,387) (464,877) (2,434,291) (600,638) Death benefits (1,593) (17,581) Units outstanding at end of year 35,680,029 3,617,952 9,163,342 30,293,428 14,524,657 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 36 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations EV VT Floating-Rate Inc Fid VIP Contrafund, Serv Fid VIP Gro & Inc, Serv Fid VIP Mid Cap, Serv Fid VIP Overseas, Serv Investment income (loss) net $ 727,521 $ (20,764) $ 155,115 $ (617,980) $ 31,032 Net realized gain (loss) on sales of investments 193,726 718,604 (151,802) 746,510 (176,862) Distributions from capital gains 116,204 25,410 Net change in unrealized appreciation or depreciation of investments (673,144) (3,200,909) 114,248 (8,527,094) (2,345,422) Net increase (decrease) in net assets resulting from operations 248,103 (2,503,069) 117,561 (8,282,360) (2,465,842) Contract transactions Contract purchase payments 1,228,196 5,263,701 2,826,309 7,234,347 1,561,168 Net transfers (1) 3,535,679 (1,658,037) (2,221,869) (8,131,614) (1,023,346) Transfers for policy loans (315,982) (580,440) (310,374) (624,023) (104,183) Policy charges (599,967) (1,975,004) (954,064) (2,422,236) (488,843) Surrender benefits (828,442) (2,744,505) (1,024,983) (2,695,080) (611,151) Death benefits (96) (13,793) (250) (42,423) (121) Increase (decrease) from contract transactions 3,019,388 (1,708,078) (1,685,231) (6,681,029) (666,476) Net assets at beginning of year 17,645,767 69,897,053 24,628,138 74,911,164 14,232,982 Net assets at end of year $20,913,258 $65,685,906 $23,060,468 $59,947,775 $11,100,664 Accumulation unit activity Units outstanding at beginning of year 15,469,787 68,287,855 19,914,630 32,953,074 9,418,020 Contract purchase payments 1,067,962 5,205,746 2,284,043 3,290,594 1,084,876 Net transfers (1) 2,324,798 (5,385,271) (1,773,954) (3,758,354) (698,783) Transfers for policy loans (259,078) (536,183) (253,580) (278,336) (70,497) Policy charges (515,425) (1,906,232) (772,019) (1,104,149) (339,846) Surrender benefits (665,079) (2,434,087) (835,944) (1,236,026) (427,071) Death benefits (88) (13,660) (197) (18,822) (79) Units outstanding at end of year 17,422,877 63,218,168 18,562,979 29,847,981 8,966,620 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 37

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations FTVIPT Frank Global Real Est, FTVIPT Frank Sm Cap Val, FTVIPT Mutual Shares Sec, GS VIT Mid Cap Val, Inst GS VIT Structd U.S. Eq, Inst Investment income (loss) net $ 3,205,671 $ (48,443) $ 279,473 $ (90,697) $ 279,793 Net realized gain (loss) on sales of investments (5,300,245) 807,584 (214,628) 392,915 (770,208) Distributions from capital gains Net change in unrealized appreciation or depreciation of investments (743,471) (2,403,704) (426,162) (6,876,465) 1,607,183 Net increase (decrease) in net assets resulting from operations (2,838,045) (1,644,563) (361,317) (6,574,247) 1,116,768 Contract transactions Contract purchase payments 4,552,954 2,757,647 1,999,052 7,057,749 2,807,251 Net transfers (1) (3,655,211) (3,824,478) (1,721,006) (9,737,021) (4,335,546) Transfers for policy loans (453,002) (340,418) (148,090) (896,866) (189,656) Policy charges (1,891,529) (1,310,557) (688,034) (3,535,497) (1,320,625) Surrender benefits (2,495,872) (1,862,900) (916,914) (5,481,014) (1,788,058) Death benefits (14,536) (6,198) (388) (22,353) (5,603) Increase (decrease) from contract transactions (3,957,196) (4,586,904) (1,475,380) (12,615,002) (4,832,237) Net assets at beginning of year 48,225,359 38,443,954 19,857,732 102,336,573 34,967,531 Net assets at end of year $41,430,118 $32,212,487 $18,021,035 $ 83,147,324 $31,252,062 Accumulation unit activity Units outstanding at beginning of year 26,139,931 16,486,430 15,207,005 40,967,241 38,293,908 Contract purchase payments 2,483,383 1,217,967 1,537,514 2,865,904 2,983,766 Net transfers (1) (1,659,698) (1,237,042) (1,419,792) (1,875,654) (6,582,214) Transfers for policy loans (241,161) (149,134) (113,398) (359,174) (223,837) Policy charges (1,040,299) (592,081) (528,510) (1,473,258) (1,366,876) Surrender benefits (1,376,303) (855,142) (685,603) (2,414,194) (1,810,543) Death benefits (7,418) (2,737) (339) (8,649) (5,901) Units outstanding at end of year 24,298,435 14,868,261 13,996,877 37,702,216 31,288,303 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 38 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Period ended Dec. 31, 2011 (continued) Operations Invesco VI Div Divd, Ser I (2) Invesco VI Intl Gro, Ser II Invesco VI Tech, Ser I Invesco VI Comstock, Ser II Janus Aspen Global Tech, Serv Investment income (loss) net $ (20,220) $ 67,635 $ (33,518) $ 27,162 $ (89,001) Net realized gain (loss) on sales of investments (58,506) 862,606 259,805 76,805 705,764 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments (229,942) (2,189,684) (552,042) (275,214) (1,728,203) Net increase (decrease) in net assets resulting from operations (308,668) (1,259,443) (325,755) (171,247) (1,111,440) Contract transactions Contract purchase payments 242,477 1,188,176 462,366 356,054 843,495 Net transfers (1) 4,019,707 (737,063) 451,160 299,600 (1,213,250) Transfers for policy loans (37,761) (237,520) (67,221) (79,191) (191,789) Policy charges (92,273) (507,951) (172,655) (146,126) (440,083) Surrender benefits (89,747) (827,635) (201,640) (138,735) (680,637) Death benefits (8,062) (15,532) Increase (decrease) from contract transactions 4,042,403 (1,130,055) 472,010 276,070 (1,682,264) Net assets at beginning of year 17,730,090 4,711,560 4,922,441 12,647,365 Net assets at end of year $3,733,735 $15,340,592 $4,857,815 $5,027,264 $ 9,853,661 Accumulation unit activity Units outstanding at beginning of year 17,456,510 3,602,078 5,364,510 18,070,243 Contract purchase payments 267,323 1,161,705 356,972 398,659 1,203,474 Net transfers (1) 4,042,021 (2,394,074) 199,325 19,992 (4,409,778) Transfers for policy loans (41,074) (223,167) (50,102) (84,109) (245,028) Policy charges (101,861) (467,489) (131,289) (157,370) (583,450) Surrender benefits (99,274) (729,334) (138,992) (138,260) (810,066) Death benefits (7,629) (18,987) Units outstanding at end of year 4,067,135 14,796,522 3,837,992 5,384,435 13,225,395 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. (2) For the period April 29, 2011 (commencement of operations) to Dec. 31, 2011. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 39

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations Janus Aspen Janus, Serv Janus Aspen Overseas, Serv MFS Inv Gro Stock, Serv Cl MFS New Dis, Serv Cl MFS Utilities, Serv Cl Investment income (loss) net $ (35,517) $ (362,971) $ (146,006) $ (186,262) $ 474,512 Net realized gain (loss) on sales of investments 314,757 5,157,412 1,659,642 781,916 41,316 Distributions from capital gains 906,636 2,948,854 Net change in unrealized appreciation or depreciation of investments (813,817) (39,349,118) (1,574,665) (6,293,487) 610,882 Net increase (decrease) in net assets resulting from operations (534,577) (33,648,041) (61,029) (2,748,979) 1,126,710 Contract transactions Contract purchase payments 689,199 5,870,420 1,992,286 1,577,609 1,588,156 Net transfers (1) (1,716,086) (11,732,472) (726,876) 1,492,646 2,194,503 Transfers for policy loans (123,827) (1,051,107) (336,939) (197,823) (195,733) Policy charges (236,086) (2,768,372) (899,078) (822,555) (744,803) Surrender benefits (384,576) (4,684,661) (1,376,533) (1,280,891) (706,973) Death benefits (11,705) (17,274) (177) (6,478) (1,007) Increase (decrease) from contract transactions (1,783,081) (14,383,466) (1,347,317) 762,508 2,134,143 Net assets at beginning of year 9,945,228 110,729,055 27,281,301 22,592,086 19,532,740 Net assets at end of year $ 7,627,570 $ 62,697,548 $25,872,955 $20,605,615 $22,793,593 Accumulation unit activity Units outstanding at beginning of year 9,896,133 58,039,794 33,573,661 15,964,236 7,880,534 Contract purchase payments 696,037 3,574,334 2,424,150 1,104,375 604,855 Net transfers (1) (1,944,790) (9,479,239) (3,991,379) (575,869) 1,384,636 Transfers for policy loans (114,084) (598,929) (374,899) (137,879) (72,160) Policy charges (237,567) (1,659,415) (1,041,798) (560,518) (293,034) Surrender benefits (374,518) (2,680,877) (1,445,434) (820,353) (303,040) Death benefits (13,114) (9,505) (235) (4,607) (376) Units outstanding at end of year 7,908,097 47,186,163 29,144,066 14,969,385 9,201,415 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 40 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations MS UIF Global Real Est, Cl II MS UIF Mid Cap Gro, Cl II Oppen Global VA, Serv Oppen Global Strategic Inc VA, Srv Oppen Main St Sm Cap VA, Serv Investment income (loss) net $ 233,708 $ (51,677) $ 9,350 $ 1,192,755 $ (27,350) Net realized gain (loss) on sales of investments 41,217 314,091 (4,248) 480,585 207,261 Distributions from capital gains 3,852 734,372 Net change in unrealized appreciation or depreciation of investments (1,325,490) (1,165,552) (755,562) (2,482,784) (358,552) Net increase (decrease) in net assets resulting from operations (1,050,565) (899,286) (750,460) (75,072) (178,641) Contract transactions Contract purchase payments 668,269 588,006 672,662 4,204,426 594,914 Net transfers (1) 1,167,378 2,512,637 852,801 (1,557,211) (808,974) Transfers for policy loans (92,609) (104,352) (20,487) (544,300) (34,468) Policy charges (220,299) (276,919) (225,119) (1,956,464) (204,492) Surrender benefits (351,180) (307,771) (375,212) (2,801,644) (146,661) Death benefits (24) (5,147) (7,026) Increase (decrease) from contract transactions 1,171,535 2,411,601 899,498 (2,662,219) (599,681) Net assets at beginning of year 8,517,726 7,631,440 6,457,574 60,599,773 6,285,380 Net assets at end of year $ 8,638,696 $ 9,143,755 $6,606,612 $57,862,482 $5,507,058 Accumulation unit activity Units outstanding at beginning of year 9,499,601 6,126,241 5,073,093 46,146,965 5,116,133 Contract purchase payments 763,106 466,452 540,031 3,159,471 490,455 Net transfers (1) 445,676 1,418,416 454,436 (1,375,537) (782,401) Transfers for policy loans (104,129) (69,178) (13,864) (402,275) (22,541) Policy charges (243,286) (212,219) (178,537) (1,463,636) (164,401) Surrender benefits (361,618) (231,937) (309,469) (2,086,513) (120,877) Death benefits (29) (3,933) (5,168) Units outstanding at end of year 9,999,321 7,497,775 5,561,757 43,973,307 4,516,368 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 41

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations PIMCO VIT All Asset, Advisor Cl Put VT Global Hlth Care, Cl IB Put VT Intl Eq, Cl IB Put VT Multi-Cap Gro, Cl IB VP Aggr, Investment income (loss) net $ 1,799,769 $ 89,209 $ 60,856 $ (28,536) $ (377,329) Net realized gain (loss) on sales of investments 59,766 20,372 (96,840) 386,826 66,830 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments (1,623,112) (189,825) (429,561) (731,570) (2,617,460) Net increase (decrease) in net assets resulting from operations 236,423 (80,244) (465,545) (373,280) (2,927,959) Contract transactions Contract purchase payments 1,788,302 291,679 296,852 480,733 7,500,097 Net transfers (1) 4,202,359 285,458 (157,634) (396,259) 29,855,145 Transfers for policy loans (163,675) (98,434) (27,956) (100,537) (179,881) Policy charges (712,108) (135,085) (100,496) (257,149) (1,361,593) Surrender benefits (1,287,551) (179,089) (97,701) (538,924) (1,568,665) Death benefits (70) Increase (decrease) from contract transactions 3,827,257 164,529 (86,935) (812,136) 34,245,103 Net assets at beginning of year 24,033,044 3,473,382 2,706,385 6,871,934 25,327,558 Net assets at end of year $28,096,724 $3,557,667 $2,153,905 $5,686,518 $56,644,702 Accumulation unit activity Units outstanding at beginning of year 19,732,389 2,756,623 2,004,717 6,077,145 22,566,713 Contract purchase payments 1,447,372 227,148 231,646 427,046 6,757,711 Net transfers (1) 2,934,682 209,719 (129,568) (376,155) 25,929,780 Transfers for policy loans (127,731) (73,568) (20,846) (87,186) (149,277) Policy charges (569,149) (105,334) (78,687) (229,050) (1,228,539) Surrender benefits (1,000,445) (138,837) (71,009) (483,628) (1,386,680) Death benefits (59) Units outstanding at end of year 22,417,059 2,875,751 1,936,253 5,328,172 52,489,708 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 42 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations VP Aggr, Cl 4 VP BR GI Infl Prot Sec, VP Conserv, VP Conserv, Cl 4 VP Mod, Investment income (loss) net $ (2,209,813) $ 1,084,362 $ (77,572) $ (257,417) $ (976,173) Net realized gain (loss) on sales of investments 3,742,534 (43,308) 72,602 537,333 48,727 Distributions from capital gains 211,524 Net change in unrealized appreciation or depreciation of investments (11,495,505) 231,508 138,599 577,962 (1,480,078) Net increase (decrease) in net assets resulting from operations (9,962,784) 1,484,086 133,629 857,878 (2,407,524) Contract transactions Contract purchase payments 31,669,597 984,720 723,470 2,116,077 16,151,795 Net transfers (1) (13,410,258) 2,130,738 12,504,432 18,877,168 99,091,912 Transfers for policy loans (2,084,184) (379,432) (26,501) (93,825) (766,876) Policy charges (6,705,228) (507,770) (434,825) (1,431,688) (4,701,502) Surrender benefits (9,753,598) (948,495) (641,424) (1,657,062) (5,792,987) Death benefits (219,071) (41,285) Increase (decrease) from contract transactions (502,742) 1,238,476 12,125,152 17,810,670 103,982,342 Net assets at beginning of year 256,612,829 16,290,063 4,132,417 28,076,268 65,642,187 Net assets at end of year $246,147,303 $19,012,625 $16,391,198 $46,744,816 $167,217,005 Accumulation unit activity Units outstanding at beginning of year 228,670,756 13,966,478 3,952,018 26,841,535 59,979,452 Contract purchase payments 28,279,052 809,507 679,684 1,994,064 14,710,831 Net transfers (1) (12,396,629) 1,796,615 11,700,386 17,802,126 89,109,072 Transfers for policy loans (1,842,398) (311,730) (25,054) (87,454) (703,203) Policy charges (6,004,234) (418,198) (409,019) (1,348,933) (4,284,132) Surrender benefits (8,741,184) (793,884) (595,811) (1,559,183) (5,263,054) Death benefits (183,053) (32,639) Units outstanding at end of year 227,782,310 15,016,149 15,302,204 43,642,155 153,548,966 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 43

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations VP Mod, Cl 4 VP Mod Aggr, VP Mod Aggr, Cl 4 VP Mod Conserv, VP Mod Conserv, Cl 4 Investment income (loss) net $ (5,381,044) $ (1,096,484) $ (8,240,861) $ (225,715) $ (889,883) Net realized gain (loss) on sales of investments 8,830,642 300,958 11,016,368 139,086 1,886,293 Distributions from capital gains Net change in unrealized appreciation or depreciation of investments (6,262,490) (5,302,703) (25,145,506) 106,246 455,087 Net increase (decrease) in net assets resulting from operations (2,812,892) (6,098,229) (22,369,999) 19,617 1,451,497 Contract transactions Contract purchase payments 56,274,932 23,641,135 108,867,553 2,429,304 7,991,965 Net transfers (1) (5,332,562) 96,708,722 (48,181,640) 29,874,114 12,579,344 Transfers for policy loans (3,092,984) (1,450,172) (7,802,659) 34,034 (796,051) Policy charges (23,752,208) (4,350,174) (27,584,522) (1,185,170) (4,427,568) Surrender benefits (28,528,726) (3,612,342) (36,944,391) (691,197) (5,033,253) Death benefits (415,147) (187,879) (61,230) Increase (decrease) from contract transactions (4,846,695) 110,937,169 (11,833,538) 30,461,085 10,253,207 Net assets at beginning of year 646,723,298 68,999,259 957,297,382 14,090,419 108,870,909 Net assets at end of year $639,063,711 $173,838,199 $923,093,845 $44,571,121 $120,575,613 Accumulation unit activity Units outstanding at beginning of year 590,926,472 62,031,705 859,921,355 13,162,586 101,587,738 Contract purchase payments 51,015,892 21,349,021 97,621,457 2,249,120 7,370,780 Net transfers (1) (4,976,990) 84,909,801 (45,165,459) 27,491,402 11,788,220 Transfers for policy loans (2,807,010) (1,291,622) (6,947,653) 29,394 (739,303) Policy charges (21,539,418) (3,932,145) (24,749,575) (1,096,462) (4,082,973) Surrender benefits (25,847,603) (3,270,714) (33,230,386) (641,938) (4,645,131) Death benefits (381,815) (168,616) (57,800) Units outstanding at end of year 586,389,528 159,796,046 847,281,123 41,194,102 111,221,531 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 44 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations VP Ptnrs Sm Cap Val, VP Sit Divd Gro, VP Vty Estb Val, Investment income (loss) net $ (142,070) $ (32,818) $ (10,633) $ 3,837,224 $ (776,231) Net realized gain (loss) on sales of investments 441,433 144,211 61,189 (3,314,707) 1,790,898 Distributions from capital gains 2,374,225 8,402,124 Net change in unrealized appreciation or depreciation of investments (1,201,065) (281,788) (153,451) (17,981,101) (12,907,227) Net increase (decrease) in net assets resulting from operations (901,702) (170,395) (102,895) (15,084,359) (3,490,436) Contract transactions Contract purchase payments 1,551,581 318,444 126,277 6,846,223 7,132,254 Net transfers (1) (932,483) (176,928) 361,407 (8,987,000) (9,144,185) Transfers for policy loans (174,302) (57,969) (16,952) (1,022,490) (973,785) Policy charges (539,776) (108,929) (39,668) (3,738,309) (3,242,764) Surrender benefits (724,467) (195,930) (41,225) (4,334,889) (4,789,822) Death benefits (7,381) (153) (40,527) (17,913) Increase (decrease) from contract transactions (826,828) (221,465) 389,839 (11,276,992) (11,036,215) Net assets at beginning of year 16,760,942 4,070,194 1,097,637 106,871,491 96,783,467 Net assets at end of year $15,032,412 $3,678,334 $1,384,581 $ 80,510,140 $ 82,256,816 Accumulation unit activity Units outstanding at beginning of year 9,554,357 4,416,009 863,345 59,588,897 48,140,081 Contract purchase payments 908,516 368,278 100,713 3,998,009 3,505,023 Net transfers (1) (576,814) (320,108) 239,178 (6,076,267) (4,081,258) Transfers for policy loans (100,284) (52,465) (12,317) (573,058) (466,737) Policy charges (317,182) (121,257) (31,529) (1,842,397) (1,604,150) Surrender benefits (428,226) (195,328) (32,405) (2,789,146) (2,379,774) Death benefits (4,221) (178) (22,932) (8,850) Units outstanding at end of year 9,036,146 4,094,951 1,126,985 52,283,106 43,104,335 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. Wanger Intl Wanger USA RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 45

Statements of Changes in Net Assets Year ended Dec. 31, 2011 (continued) Operations WF Adv VT Index Asset Alloc, WF Adv VT Intl Eq, WF Adv VT Opp, WF Adv VT Sm Cap Gro, Investment income (loss) net $ 91,186 $ (173,080) $ (66,837) $ (101,223) Net realized gain (loss) on sales of investments (22,897) 1,762,238 97,440 273,254 Distributions from capital gains 1,209,429 Net change in unrealized appreciation or depreciation of investments 151,584 (6,477,108) 447,349 (876,043) Net increase (decrease) in net assets resulting from operations 219,873 (3,678,521) 477,952 (704,012) Contract transactions Contract purchase payments 509,347 1,635,903 676,559 1,053,821 Net transfers (1) (143,693) (3,045,538) 12,965,759 (1,852,971) Transfers for policy loans (25,493) (179,956) (60,538) (211,118) Policy charges (203,285) (1,062,844) (262,443) (366,975) Surrender benefits (83,281) (2,030,698) (308,699) (444,441) Death benefits (80,740) (8,409) Increase (decrease) from contract transactions (27,145) (4,691,542) 13,010,638 (1,821,684) Net assets at beginning of year 4,054,055 30,862,289 3,567,010 13,036,268 Net assets at end of year $4,246,783 $22,492,226 $17,055,600 $10,510,572 Accumulation unit activity Units outstanding at beginning of year 3,134,714 20,665,729 2,197,922 6,958,602 Contract purchase payments 385,724 1,147,059 436,413 586,415 Net transfers (1) (108,697) (2,164,057) 8,654,132 (1,095,532) Transfers for policy loans (19,360) (120,817) (38,362) (111,248) Policy charges (154,109) (743,684) (168,136) (202,762) Surrender benefits (64,102) (1,386,086) (195,451) (249,196) Death benefits (62,600) (5,493) Units outstanding at end of year 3,111,570 17,392,651 10,886,518 5,886,279 (1) Includes transfer activity from (to) other divisions and transfers from (to) RiverSource Life s fixed account. See accompanying notes to financial statements. 46 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Notes to Financial Statements 1. ORGANIZATION RiverSource Variable Life Separate Account (the Account) was established under Minnesota law as a segregated asset account of RiverSource Life Insurance Company (RiverSource Life). The Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended (the 1940 Act) and exists in accordance with the rules and regulations of the Insurance Division, Department of Commerce of the State of Minnesota. The Account is used as a funding vehicle for RiverSource» Single Premium Variable Life Insurance (SPVL) policies issued by RiverSource Life. The Account is comprised of various divisions. Each division invests exclusively in shares of the following funds or portfolios (collectively, the Funds), which are registered under the 1940 Act as open-end management investment companies. The name of each Fund offered through SPVL policies and the corresponding division name are provided below. There are various other divisions offered in the Account that are not available under SPVL policies. Each division is comprised of subaccounts. Individual variable life insurance policies invest in subaccounts. These financial statements are of the Divisions of the Account offered through SPVL. Division Fund 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 II American Century VP International, Class II AC VP Val, Cl II American Century VP Value, Class II Calvert VP SRI Bal Calvert VP SRI Balanced Portfolio Bal, Columbia Variable Portfolio Balanced Fund (Class 3) Cash Mgmt, Columbia Variable Portfolio Cash Management Fund (Class 3) Div Bond, Columbia Variable Portfolio Diversified Bond Fund (Class 3) Divd Opp, Columbia Variable Portfolio Dividend Opportunity Fund (Class 3) (previously Columbia Variable Portfolio Diversified Equity Income Fund (Class 3)) Emer Mkts, Columbia Variable Portfolio Emerging Markets Fund (Class 3) (previously Columbia Variable Portfolio Emerging Markets Opportunity Fund (Class 3)) Global Bond, Columbia Variable Portfolio Global Bond Fund (Class 3) Hi Inc, Columbia Variable Portfolio High Income Fund (Class 2) (1) Hi Yield Bond, Columbia Variable Portfolio High Yield Bond Fund (Class 3) Inc Opp, Columbia Variable Portfolio Income Opportunities Fund (Class 3) Intl Opp, Columbia Variable Portfolio International Opportunity Fund (Class 3) Lg Cap Gro, Columbia Variable Portfolio Large Cap Growth Fund (Class 3) Lg Core Quan, Columbia Variable Portfolio Large Core Quantitative Fund (Class 3) (previously Columbia Variable Portfolio Dynamic Equity Fund (Class 3)) Mid Cap Gro Opp, Columbia Variable Portfolio Mid Cap Growth Opportunity Fund (Class 3) Mid Cap Val Opp, Columbia Variable Portfolio Mid Cap Value Opportunity Fund (Class 3) S&P 500, Columbia Variable Portfolio S&P 500 Index Fund (Class 3) Select Lg Cap Val, Columbia Variable Portfolio Select Large-Cap Value Fund (Class 3) Select Sm Cap Val, Columbia Variable Portfolio Select Smaller-Cap Value Fund (Class 3) US Govt Mtge, Columbia Variable Portfolio U.S. Government Mortgage Fund (Class 3) (previously Columbia Variable Portfolio Short Duration U.S. Government Fund (Class 3)) CS Commodity Return Credit Suisse Trust Commodity Return Strategy Portfolio EV VT Floating-Rate Inc Eaton Vance VT Floating-Rate Income Fund Fid VIP Contrafund, Serv Fidelity» VIP Contrafund» Portfolio Service Class 2 Fid VIP Gro & Inc, Serv Fidelity» VIP Growth & Income Portfolio Service Class 2 Fid VIP Mid Cap, Serv Fidelity» VIP Mid Cap Portfolio Service Class 2 Fid VIP Overseas, Serv Fidelity» VIP Overseas Portfolio Service Class 2 FTVIPT Frank Global Real Est, FTVIPT Franklin Global Real Estate Securities Fund Class 2 FTVIPT Frank Sm Cap Val, FTVIPT Franklin Small Cap Value Securities Fund Class 2 FTVIPT Mutual Shares Sec, FTVIPT Mutual Shares Securities Fund Class 2 GS VIT Mid Cap Val, Inst Goldman Sachs VIT Mid Cap Value Fund Institutional Shares GS VIT Structd U.S. Eq, Inst Goldman Sachs VIT Structured U.S. Equity Fund Institutional Shares Invesco VI Div Divd, Ser I Invesco V.I. Diversified Dividend Fund, Series I Shares Invesco VI Intl Gro, Ser II Invesco V.I. International Growth Fund, Series II Shares Invesco VI Tech, Ser I Invesco V.I. Technology Fund, Series I Shares Invesco VI Am Fran, Ser II Invesco V.I. American Franchise Fund, Series II Shares (2) (previously Invesco Van Kampen V.I. American Franchise Fund, Series II Shares) Invesco VI Comstock, Ser II Invesco V.I. Comstock Fund, Series II Shares (previously Invesco Van Kampen V.I. Comstock Fund, Series II Shares) Invesco VI Mid Cap Gro, Ser I Invesco V.I. Mid Cap Growth Fund, Series I Shares (3) (previously Invesco Van Kampen V.I. Mid Cap Growth Fund, Series I Shares) RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 47

Division Fund Invesco VI Mid Cap Gro, Ser II Invesco V.I. Mid Cap Growth Fund, Series II Shares (4) (previously Invesco Van Kampen V.I. Mid Cap Growth Fund, Series II Shares) Janus Aspen Global Tech, Serv Janus Aspen Series Global Technology Portfolio: Service Shares Janus Aspen Janus, Serv Janus Aspen Series Janus Portfolio: Service Shares Janus Aspen Overseas, Serv Janus Aspen Series Overseas Portfolio: Service Shares MFS Inv Gro Stock, Serv Cl MFS» Investors Growth Stock Series Service Class MFS New Dis, Serv Cl MFS» New Discovery Series Service Class MFS Utilities, Serv Cl MFS» Utilities Series Service Class MS UIF Global Real Est, Cl II Morgan Stanley UIF Global Real Estate Portfolio, Class II Shares MS UIF Mid Cap Gro, Cl II Morgan Stanley UIF Mid Cap Growth Portfolio, Class II Shares Oppen Global VA, Serv Oppenheimer Global Fund/VA, Service Shares (previously Oppenheimer Global Securities Fund/VA, Service Shares) Oppen Global Strategic Inc VA, Srv Oppenheimer Global Strategic Income Fund/VA, Service Shares Oppen Main St Sm Cap VA, Serv Oppenheimer Main Street Small Cap Fund»/VA, Service Shares (previously Oppenheimer Main Street Small- & Mid-Cap Fund»/VA, Service Shares) PIMCO VIT All Asset, Advisor Cl PIMCO VIT All Asset Portfolio, Advisor Class Put VT Global Hlth Care, Cl IB Putnam VT Global Health Care Fund Class IB Shares Put VT Intl Eq, Cl IB Putnam VT International Equity Fund Class IB Shares Put VT Multi-Cap Gro, Cl IB Putnam VT Multi-Cap Growth Fund Class IB Shares VP Aggr, Variable Portfolio Aggressive Portfolio (Class 2) VP Aggr, Cl 4 Variable Portfolio Aggressive Portfolio (Class 4) VP BR Gl Infl Prot Sec, Variable Portfolio BlackRock Global Inflation-Protected Securities Fund (Class 3) (previously Columbia Variable Portfolio Global Inflation Protected Securities Fund (Class 3)) VP Conserv, Variable Portfolio Conservative Portfolio (Class 2) VP Conserv, Cl 4 Variable Portfolio Conservative Portfolio (Class 4) VP Mod, Variable Portfolio Moderate Portfolio (Class 2) VP Mod, Cl 4 Variable Portfolio Moderate Portfolio (Class 4) VP Mod Aggr, Variable Portfolio Moderately Aggressive Portfolio (Class 2) VP Mod Aggr, Cl 4 Variable Portfolio Moderately Aggressive Portfolio (Class 4) VP Mod Conserv, Variable Portfolio Moderately Conservative Portfolio (Class 2) VP Mod Conserv, Cl 4 Variable Portfolio Moderately Conservative Portfolio (Class 4) VP Ptnrs Sm Cap Val, Variable Portfolio Partners Small Cap Value Fund (Class 3) VP Sit Divd Gro, Variable Portfolio Sit Dividend Growth Fund (Class 3) (previously Variable Portfolio Davis New York Venture Fund (Class 3)) VP Vty Estb Val, Variable Portfolio Victory Established Value Fund (Class 3) (previously Variable Portfolio Goldman Sachs Mid Cap Value Fund (Class 3)) Wanger Intl Wanger International Wanger USA Wanger USA WF Adv VT Index Asset Alloc, Wells Fargo Advantage VT Index Asset Allocation Fund Class 2 WF Adv VT Intl Eq, Wells Fargo Advantage VT International Equity Fund Class 2 WF Adv VT Opp, Wells Fargo Advantage VT Opportunity Fund Class 2 (5) WF Adv VT Sm Cap Gro, Wells Fargo Advantage VT Small Cap Growth Fund Class 2 (1) (2) (3) (4) (5) Columbia Variable Portfolio High Income Fund (Class 2) is scheduled to be merged into Columbia Variable Portfolio Income Opportunities Fund (Class 2) on April 29, 2013. Invesco V.I. Capital Appreciation Fund, Series II Shares merged into Invesco Van Kampen V.I. Capital Growth Fund, Series II Shares on April 27, 2012. In addition, Invesco Van Kampen V.I. Capital Growth Fund, Series II Shares changed its name to Invesco V.I. American Franchise Fund, Series II Shares. Invesco V.I. Capital Development Fund, Series I Shares merged into Invesco V.I. Mid Cap Growth Fund, Series I Shares on April 27, 2012. Invesco V.I. Capital Development Fund, Series II Shares merged into Invesco V.I. Mid Cap Growth Fund, Series II Shares on April 27, 2012. Wells Fargo Advantage VT Core Equity Fund Class 2 merged into Wells Fargo Advantage VT Opportunity Fund Class 2 on Aug. 26, 2011. The assets of each division of the Account are not chargeable with liabilities arising out of the business conducted by any other segregated asset account or by RiverSource Life. RiverSource Life serves as issuer of the policy. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investments in the Funds Investment transactions are accounted for on the date the shares are purchased and sold. Realized gains and losses on the sales of investments are computed using the average cost method. Income from dividends and gains from realized capital gain distributions are reinvested in additional shares of the Funds and are recorded as income by the divisions on the ex-dividend date. Unrealized appreciation or depreciation of investments in the accompanying financial statements represents the division s share of the Funds undistributed net investment income, undistributed realized gain or loss and the unrealized appreciation or depreciation on their investment securities. 48 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

The Account categorizes its fair value measurements according to a three-level hierarchy. This hierarchy prioritizes the inputs used by the Account to value investment securities. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The Funds in the Accounts have been assigned a Level 2 hierarchy, which indicates that the Funds are not considered to be active as there are few daily net asset values released publicly. Investments in shares of the Funds are stated at fair value which is the net asset value per share as determined by the respective Funds. There were no transfers between levels in the period ended Dec. 31, 2012. 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 policies. 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 change may be made in future years for any federal income taxes that would be attributable to the policies. Subsequent Events Management has evaluated Account related events and transactions that occurred during the period from the date of the Statements of Assets and Liabilities through April 22, 2013. There were no events or transactions that occurred during the period that materially impacted the amounts or disclosures in the Account s financial statements. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates. 3. VARIABLE ACCOUNT EXPENSES For SPVL policies, RiverSource Life deducts a daily mortality and expense risk fee equal, on an annual basis, to 0.90% of the average daily net assets of each subaccount. The Financial statements include other subaccounts that are not offered through SPVL policies. 4. POLICY CHARGES A monthly deduction is made for the cost of insurance and charges for any optional insurance benefits provided by rider for the policy month. The cost of insurance for the policy month is determined on the monthly date by determining the net amount at risk, as of that day, and by then applying the cost of insurance rates to the net amount at risk which RiverSource Life is assuming for the succeeding month. The monthly deduction will be taken from the subaccounts as specified in the application for the policy. RiverSource Life deducts a premium expense charge from each premium payment. It partially compensates RiverSource Life for expenses associated with administering and distributing the policy, including the agents compensation, advertising and printing the prospectus and sales literature. It also compensates RiverSource Life for paying taxes imposed by certain states and governmental subdivisions on premiums received by insurance companies. This product may also charge a no lapse guarantee charge. Additional information can be found in the product prospectus. 5. SURRENDER CHARGES RiverSource Life will use a surrender charge to help it recover certain expenses related to the issuance of the policy. Additional information regarding how the surrender charge is determined can be found in the applicable product s prospectus. Such charges are not treated as a separate expense of the divisions as they are ultimately deducted from surrender benefits paid by RiverSource Life. Charges by RiverSource Life for surrenders are not identified on an individual division basis. 6. RELATED PARTY TRANSACTIONS RiverSource Life is a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 49

The following table reflects fees paid by certain funds to Ameriprise Financial and its affiliates. Additional details about these asset based charges can be found in the respective Fund s Annual Report. Fee Agreement: Investment Management Services Agreement Administrative Services Agreement Transfer Agency and Servicing Agreement Plan and Agreement of Distribution Pursuant to Rule 12b-1 Fees Paid To: Columbia Management Investment Advisers, LLC Columbia Management Investment Advisers, LLC Columbia Management Investment Services Corp. Columbia Management Investment Distributors, Inc. 7. INVESTMENT TRANSACTIONS The divisions purchases of Funds shares, including reinvestment of dividend distributions, for the year ended Dec. 31, 2012 were as follows: Division Purchases AB VPS Gro & Inc, Cl B $ 1,933,499 AB VPS Intl Val, Cl B 3,252,482 AB VPS Lg Cap Gro, Cl B 900,520 AC VP Intl, Cl II 588,184 AC VP Val, Cl II 1,963,013 Calvert VP SRI Bal 1,329,356 Bal, 4,916,116 Cash Mgmt, 18,799,881 Div Bond, 26,536,440 Divd Opp, 10,808,503 Emer Mkts, 6,192,372 Global Bond, 5,931,626 Hi Inc, 2,382,799 Hi Yield Bond, 13,299,068 Inc Opp, 6,756,260 Intl Opp, 3,620,556 Lg Cap Gro, 4,019,854 Lg Core Quan, 10,426,493 Mid Cap Gro Opp, 1,402,906 Mid Cap Val Opp, 950,061 S&P 500, 5,826,979 Select Lg Cap Val, 1,243,937 Select Sm Cap Val, 1,534,703 US Govt Mtge, 7,144,429 CS Commodity Return 2,201,140 EV VT Floating-Rate Inc 7,032,130 Fid VIP Contrafund, Serv 7,878,075 Fid VIP Gro & Inc, Serv 1,273,583 Fid VIP Mid Cap, Serv 6,230,481 Fid VIP Overseas, Serv 743,573 FTVIPT Frank Global Real Est, 4,971,518 FTVIPT Frank Sm Cap Val, 2,725,523 FTVIPT Mutual Shares Sec, 1,449,285 GS VIT Mid Cap Val, Inst 8,048,664 GS VIT Structd U.S. Eq, Inst 3,304,096 Invesco VI Div Divd, Ser I 2,466,988 Invesco VI Intl Gro, Ser II 3,694,068 Invesco VI Tech, Ser I 1,148,077 Invesco VI Am Fran, Ser II 7,830,801 8. ACCUMULATION UNIT VALUES, UNITS OUTSTANDING AND NET ASSETS The following is a summary of accumulation unit values at Dec. 31, 2012: Subaccount Division Purchases Invesco VI Comstock, Ser II $ 1,058,161 Invesco VI Mid Cap Gro, Ser I 6,854,301 Invesco VI Mid Cap Gro, Ser II 3,379,084 Janus Aspen Global Tech, Serv 1,125,796 Janus Aspen Janus, Serv 1,410,583 Janus Aspen Overseas, Serv 11,868,687 MFS Inv Gro Stock, Serv Cl 5,210,709 MFS New Dis, Serv Cl 4,768,838 MFS Utilities, Serv Cl 4,248,137 MS UIF Global Real Est, Cl II 1,803,735 MS UIF Mid Cap Gro, Cl II 2,828,109 Oppen Global VA, Serv 1,548,741 Oppen Global Strategic Inc VA, Srv 10,968,422 Oppen Main St Sm Cap VA, Serv 1,133,904 PIMCO VIT All Asset, Advisor Cl 10,989,572 Put VT Global Hlth Care, Cl IB 1,477,950 Put VT Intl Eq, Cl IB 318,041 Put VT Multi-Cap Gro, Cl IB 1,025,458 VP Aggr, 21,298,830 VP Aggr, Cl 4 17,811,922 VP BR Gl Infl Prot Sec, 5,208,124 VP Conserv, 16,035,600 VP Conserv, Cl 4 20,948,334 VP Mod, 76,326,908 VP Mod, Cl 4 66,095,330 VP Mod Aggr, 60,975,900 VP Mod Aggr, Cl 4 58,058,382 VP Mod Conserv, 25,714,456 VP Mod Conserv, Cl 4 33,509,346 VP Ptnrs Sm Cap Val, 780,356 VP Sit Divd Gro, 860,140 VP Vty Estb Val, 713,673 Wanger Intl 14,616,198 Wanger USA 10,762,958 WF Adv VT Index Asset Alloc, 688,470 WF Adv VT Intl Eq, 4,221,649 WF Adv VT Opp, 822,166 WF Adv VT Sm Cap Gro, 1,782,087 AB VPS Gro & Inc, Cl B AB VPS Intl Val, Cl B AB VPS Lg Cap Gro, Cl B 0.00% $ $ $1.01 $ $1.04 0.30% 1.00 1.06 1.01 1.05 1.01 0.45% 1.73 1.47 1.76 1.06 0.99 0.65% 0.90% 1.35 1.37 1.04 1.56 1.56 AC VP Intl, Cl II AC VP Val, Cl II 50 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Subaccount Calvert VP SRI Bal Bal, Cash Mgmt, Div Bond, Divd Opp, 0.00% $ $1.03 $ $ $ 0.30% 1.00 1.01 1.00 1.00 1.01 0.45% 1.64 1.70 0.98 1.39 1.75 0.65% 1.43 1.09 1.47 0.90% 1.21 1.22 1.13 1.79 1.72 Subaccount Emer Mkts, Global Bond, Hi Inc, Hi Yield Bond, Inc Opp, 0.00% $ $ $1.05 $ $ 0.30% 1.06 1.00 1.02 1.02 1.02 0.45% 2.18 1.33 1.86 2.02 1.83 0.65% 0.90% 2.57 2.00 1.53 2.14 1.66 Subaccount Intl Opp, Lg Cap Gro, Lg Core Quan, Mid Cap Gro Opp, Mid Cap Val Opp, 0.00% $ $ $ $ $ 0.30% 1.05 1.01 1.00 1.01 1.02 0.45% 1.66 1.94 1.91 2.04 1.99 0.65% 1.28 0.90% 0.96 0.60 0.85 1.41 1.30 Subaccount S&P 500, Select Lg Cap Val, Select Sm Cap Val, US Govt Mtge, CS Commodity Return 0.00% $1.02 $ $ $ $ 0.30% 1.00 1.02 1.04 1.00 0.97 0.45% 1.82 1.93 2.06 1.10 1.25 0.65% 1.16 0.90% 1.05 1.22 1.60 1.34 0.85 Subaccount EV VT Floating-Rate Inc Fid VIP Contrafund, Serv Fid VIP Gro & Inc, Serv Fid VIP Mid Cap, Serv Fid VIP Overseas, Serv 0.00% $ $1.02 $ $1.04 $ 0.30% 1.01 1.00 1.00 1.02 1.05 0.45% 1.61 1.91 0.99 1.00 1.04 0.65% 0.90% 1.19 1.06 1.46 2.28 1.48 Subaccount FTVIPT Frank Global Real Est, FTVIPT Frank Sm Cap Val, FTVIPT Mutual Shares Sec, GS VIT Mid Cap Val, Inst GS VIT Structd U.S. Eq, Inst 0.00% $ $1.12 $1.03 $ $ 0.30% 1.05 1.05 1.01 1.02 1.00 0.45% 1.97 2.08 1.65 1.93 1.75 0.65% 0.90% 2.21 2.70 1.44 2.92 1.01 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 51

Subaccount Invesco VI Div Divd, Ser I Invesco VI Intl Gro, Ser II Invesco VI Tech, Ser I Invesco VI Am Fran, Ser II Invesco VI Comstock, Ser II 0.00% $ $ $ $ $ 0.30% 1.01 1.03 1.03 1.02 1.01 0.45% 1.09 1.72 2.08 0.97 1.91 0.65% 0.90% 1.08 0.96 1.30 0.97 0.97 Subaccount Invesco VI Mid Cap Gro, Ser I Invesco VI Mid Cap Gro, Ser II Janus Aspen Global Tech, Serv Janus Aspen Janus, Serv Janus Aspen Overseas, Serv 0.00% $ $ $ $1.02 $ 0.30% 1.02 1.02 1.03 1.02 1.08 0.45% 0.98 0.99 2.19 1.79 1.77 0.65% 0.90% 0.98 0.98 0.61 1.04 1.38 Subaccount MFS Inv Gro Stock, Serv Cl MFS New Dis, Serv Cl MFS Utilities, Serv Cl MS UIF Global Real Est, Cl II MS UIF Mid Cap Gro, Cl II 0.00% $ $ $1.05 $ $1.05 0.30% 1.02 1.01 1.01 1.05 1.03 0.45% 1.91 2.57 1.85 2.32 2.20 0.65% 0.90% 0.86 1.40 3.14 0.93 1.16 Subaccount Oppen Global VA, Serv Oppen Global Strategic Inc VA, Srv Oppen Main St Sm Cap VA, Serv PIMCO VIT All Asset, Advisor Cl Put VT Global Hlth Care, Cl IB 0.00% $1.10 $ $1.05 $1.04 $ 0.30% 1.05 1.02 1.03 1.02 1.00 0.45% 1.92 1.54 2.14 1.65 1.54 0.65% 0.90% 1.35 1.46 1.35 1.36 1.49 Subaccount Put VT Intl Eq, Cl IB Put VT Multi-Cap Gro, Cl IB VP Aggr, VP Aggr, Cl 4 VP BR Gl Infl Prot Sec, 0.00% $ $ $1.04 $ $ 0.30% 1.05 1.02 1.02 1.02 1.01 0.45% 1.56 1.24 1.23 1.23 1.28 0.65% 0.90% 1.34 1.23 1.21 1.22 1.34 Subaccount VP Conserv, VP Conserv, Cl 4 VP Mod, VP Mod, Cl 4 VP Mod Aggr, 0.00% $1.02 $ $1.03 $ $1.03 0.30% 1.01 1.01 1.01 1.01 1.01 0.45% 1.15 1.15 1.21 1.21 1.22 0.65% 0.90% 1.14 1.14 1.19 1.20 1.21 52 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Subaccount VP Mod Aggr, Cl 4 VP Mod Conserv, VP Mod Conserv, Cl 4 VP Ptnrs Sm Cap Val, VP Sit Divd Gro, 0.00% $ $1.02 $ $ $ 0.30% 1.01 1.01 1.01 1.03 0.99 0.45% 1.23 1.18 1.18 1.98 1.72 0.65% 0.90% 1.21 1.16 1.17 1.86 0.89 Subaccount VP Vty Estb Val, Wanger Intl Wanger USA WF Adv VT Index Asset Alloc, WF Adv VT Intl Eq, 0.00% $ $ $ $ $ 0.30% 1.01 1.03 1.04 1.00 1.06 0.45% 1.93 2.06 2.14 0.98 1.47 0.65% 0.90% 1.32 1.80 2.31 1.53 1.45 Subaccount WF Adv VT Opp, WF Adv VT Sm Cap Gro, 0.00% $1.06 $0.99 0.30% 1.03 0.99 0.45% 2.08 2.20 0.65% 0.90% 1.73 1.87 The following is a summary of units outstanding at Dec. 31, 2012: Subaccount AB VPS Gro & Inc, Cl B AB VPS Intl Val, Cl B AB VPS Lg Cap Gro, Cl B 0.00% 7,045 5,672 0.30% 687 0.45% 645,376 4,345,895 373,835 1,687 14,318 0.65% 0.90% 12,526,065 27,586,410 2,260,586 5,182,173 14,184,392 Total 13,171,441 31,932,992 2,641,466 5,183,860 14,204,382 AC VP Intl, Cl II AC VP Val, Cl II Subaccount Calvert VP SRI Bal Bal, Cash Mgmt, Div Bond, Divd Opp, 0.00% 6,848 0.30% 20,300 0.45% 1,335,705 11,019,989 24,429,495 30,577,870 32,295,388 0.65% 5,720,168 724,308 1,091,490 0.90% 3,673,293 98,072,797 37,635,279 58,501,537 77,821,704 Total 5,008,998 114,819,802 62,789,082 90,170,897 110,137,392 Subaccount Emer Mkts, Global Bond, Hi Inc, Hi Yield Bond, Inc Opp, 0.00% 1,861 0.30% 25,211 0.45% 7,364,937 9,818,928 1,110,688 9,297,609 3,225,960 0.65% 0.90% 14,227,486 14,578,797 4,505,449 22,435,222 9,070,615 Total 21,617,634 24,397,725 5,617,998 31,732,831 12,296,575 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 53

Subaccount Intl Opp, Lg Cap Gro, Lg Core Quan, Mid Cap Gro Opp, Mid Cap Val Opp, 0.00% 0.30% 0.45% 11,096,237 7,144,024 34,309,212 2,142,355 980,706 0.65% 1,952,085 0.90% 70,029,903 44,691,433 208,880,396 5,484,814 5,596,788 Total 81,126,140 51,835,457 245,141,693 7,627,169 6,577,494 Subaccount S&P 500, Select Lg Cap Val, Select Sm Cap Val, US Govt Mtge, CS Commodity Return 0.00% 73,708 0.30% 44,752 0.45% 8,248,925 626,825 2,335,177 10,078,271 3,738,789 0.65% 695,720 0.90% 23,145,807 2,631,926 5,249,403 18,113,984 10,128,624 Total 31,468,440 3,258,751 7,584,580 28,887,975 13,912,165 Subaccount EV VT Floating-Rate Inc Fid VIP Contrafund, Serv Fid VIP Gro & Inc, Serv Fid VIP Mid Cap, Serv Fid VIP Overseas, Serv 0.00% 33,142 29,193 0.30% 9,863 10,495 13,023 0.45% 4,989,219 12,337,585 12,244 14,925 502 0.65% 0.90% 14,003,492 46,151,663 17,476,739 27,382,743 8,371,250 Total 18,992,711 58,532,253 17,499,478 27,439,884 8,371,752 Subaccount FTVIPT Frank Global Real Est, FTVIPT Frank Sm Cap Val, FTVIPT Mutual Shares Sec, GS VIT Mid Cap Val, Inst GS VIT Structd U.S. Eq, Inst 0.00% 12,816 7,316 0.30% 9,377 0.45% 7,674,235 4,532,515 1,399,122 15,408,296 6,269,020 0.65% 0.90% 15,569,589 8,729,975 11,340,856 19,548,099 20,380,617 Total 23,243,824 13,284,683 12,747,294 34,956,395 26,649,637 Subaccount Invesco VI Div Divd, Ser I Invesco VI Intl Gro, Ser II Invesco VI Tech, Ser I Invesco VI Am Fran, Ser II Invesco VI Comstock, Ser II 0.00% 0.30% 0.45% 1,401,638 5,226,194 593,578 929 929,775 0.65% 0.90% 3,850,293 9,396,599 3,040,441 7,390,967 3,814,261 Total 5,251,931 14,622,793 3,634,019 7,391,896 4,744,036 54 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Subaccount Invesco VI Mid Cap Gro, Ser I Invesco VI Mid Cap Gro, Ser II Janus Aspen Global Tech, Serv Janus Aspen Janus, Serv Janus Aspen Overseas, Serv 0.00% 166 0.30% 16,033 0.45% 3,164,150 2,247,138 1,136,638 14,702,003 0.65% 0.90% 2,673,428 2,938,168 8,744,631 5,884,276 24,272,409 Total 5,837,578 2,938,168 10,991,769 7,021,080 38,990,445 Subaccount MFS Inv Gro Stock, Serv Cl MFS New Dis, Serv Cl MFS Utilities, Serv Cl MS UIF Global Real Est, Cl II MS UIF Mid Cap Gro, Cl II 0.00% 23,891 6,244 0.30% 12,230 8,505 0.45% 5,693,430 3,857,351 3,248,990 1,489,669 1,128,005 0.65% 0.90% 19,663,333 8,811,738 5,938,834 8,067,681 4,559,943 Total 25,356,763 12,669,089 9,223,945 9,565,855 5,694,192 Subaccount Oppen Global VA, Serv Oppen Global Strategic Inc VA, Srv Oppen Main St Sm Cap VA, Serv PIMCO VIT All Asset, Advisor Cl Put VT Global Hlth Care, Cl IB 0.00% 4,065 6,751 19,480 0.30% 135,355 0.45% 906,697 11,557,910 606,667 8,013,372 520,371 0.65% 0.90% 4,310,895 31,052,183 3,963,449 18,175,012 2,321,549 Total 5,221,657 42,610,093 4,576,867 26,343,219 2,841,920 Subaccount Put VT Intl Eq, Cl IB Put VT Multi-Cap Gro, Cl IB VP Aggr, VP Aggr, Cl 4 VP BR Gl Infl Prot Sec, 0.00% 245,707 0.30% 65,870 0.45% 68,982 3,656,919 18,299,579 42,520,159 4,817,560 0.65% 0.90% 1,799,316 990,100 44,163,985 167,180,185 10,291,847 Total 1,868,298 4,647,019 62,709,271 209,766,214 15,109,407 Subaccount VP Conserv, VP Conserv, Cl 4 VP Mod, VP Mod, Cl 4 VP Mod Aggr, 0.00% 439,988 1,139,091 2,117,667 0.30% 73,250 69,526 0.45% 6,343,556 12,730,566 59,142,027 143,408,437 48,855,783 0.65% 0.90% 16,576,106 37,256,197 150,624,935 446,288,504 151,483,355 Total 23,432,900 49,986,763 210,975,579 589,696,941 202,456,805 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 55

Subaccount VP Mod Aggr, Cl 4 VP Mod Conserv, VP Mod Conserv, Cl 4 VP Ptnrs Sm Cap Val, VP Sit Divd Gro, 0.00% 9,383 0.30% 697,771 0.45% 159,191,949 15,086,457 32,423,352 712,512 588,989 0.65% 0.90% 637,457,401 41,679,984 92,502,390 7,569,924 3,332,767 Total 797,347,121 56,775,824 124,925,742 8,282,436 3,921,756 Subaccount VP Vty Estb Val, Wanger Intl Wanger USA WF Adv VT Index Asset Alloc, WF Adv VT Intl Eq, 0.00% 0.30% 23,509 0.45% 258,705 13,576,828 11,777,497 8,686,235 0.65% 0.90% 921,682 32,375,721 27,333,295 3,139,573 5,937,203 Total 1,180,387 45,976,058 39,110,792 3,139,573 14,623,438 Subaccount WF Adv VT Opp, WF Adv VT Sm Cap Gro, 0.00% 402 5,392 0.30% 279 0.45% 1,701,471 979,273 0.65% 0.90% 6,656,932 4,335,328 Total 8,359,084 5,319,993 The following is a summary of net assets at Dec. 31, 2012: Subaccount AB VPS Gro & Inc, Cl B AB VPS Intl Val, Cl B AB VPS Lg Cap Gro, Cl B 0.00% $ $ $ 7,099 $ $ 5,893 0.30% 104 814 130 81 78 0.45% 1,117,887 6,379,699 657,382 1,864 14,238 0.65% 0.90% 16,896,043 37,668,654 2,340,793 8,068,363 22,080,792 Total $18,014,034 $44,049,167 $3,005,404 $8,070,308 $22,101,001 AC VP Intl, Cl II AC VP Val, Cl II Subaccount Calvert VP SRI Bal Bal, Cash Mgmt, Div Bond, Divd Opp, 0.00% $ $ 7,040 $ $ $ 0.30% 76 10 1,999 75 20,482 0.45% 2,189,468 18,785,319 24,036,013 42,519,751 56,532,446 0.65% 8,155,736 793,254 1,600,098 0.90% 4,452,714 120,110,657 42,612,093 104,501,667 134,002,696 Total $6,642,258 $147,058,762 $67,443,359 $148,621,591 $190,555,624 56 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Subaccount Emer Mkts, Global Bond, Hi Inc, Hi Yield Bond, Inc Opp, 0.00% $ $ $ 2,024 $ $ 0.30% 26,839 75 77 77 77 0.45% 16,069,245 13,094,676 2,070,318 18,735,119 5,910,786 0.65% 0.90% 36,578,347 29,196,100 6,900,169 48,107,375 15,095,208 Total $52,674,431 $42,290,851 $8,972,588 $66,842,571 $21,006,071 Subaccount Intl Opp, Lg Cap Gro, Lg Core Quan, Mid Cap Gro Opp, Mid Cap Val Opp, 0.00% $ $ $ $ $ 0.30% 81 10 104 11 11 0.45% 18,394,697 13,867,570 65,640,470 4,374,555 1,949,264 0.65% 2,508,145 0.90% 67,287,355 26,810,018 177,105,319 7,751,792 7,279,063 Total $85,682,133 $40,677,598 $245,254,038 $12,126,358 $9,228,338 Subaccount S&P 500, Select Lg Cap Val, Select Sm Cap Val, US Govt Mtge, CS Commodity Return 0.00% $ 75,120 $ $ $ $ 0.30% 10 11 11 75 43,550 0.45% 14,991,628 1,210,277 4,803,000 11,047,276 4,660,440 0.65% 804,055 0.90% 24,337,740 3,222,180 8,389,723 24,340,462 8,589,720 Total $39,404,498 $4,432,468 $13,192,734 $36,191,868 $13,293,710 Subaccount EV VT Floating-Rate Inc Fid VIP Contrafund, Serv Fid VIP Gro & Inc, Serv Fid VIP Mid Cap, Serv Fid VIP Overseas, Serv 0.00% $ $ 33,856 $ $ 30,425 $ 0.30% 2,014 10,008 10,606 13,419 81 0.45% 8,035,206 23,611,797 12,088 14,987 600 0.65% 0.90% 16,597,198 48,917,755 25,441,644 62,439,802 12,363,149 Total $24,634,418 $72,573,416 $25,464,338 $62,498,633 $12,363,830 Subaccount FTVIPT Frank Global Real Est, FTVIPT Frank Sm Cap Val, FTVIPT Mutual Shares Sec, GS VIT Mid Cap Val, Inst GS VIT Structd U.S. Eq, Inst 0.00% $ $ 14,413 $ 7,540 $ $ 0.30% 80 9,936 78 79 78 0.45% 15,088,954 9,449,199 2,309,032 29,802,723 10,944,205 0.65% 0.90% 34,435,132 23,577,970 16,315,221 57,039,778 20,591,034 Total $49,524,166 $33,051,518 $18,631,871 $86,842,580 $31,535,317 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 57

Subaccount Invesco VI Div Divd, Ser I Invesco VI Intl Gro, Ser II Invesco VI Tech, Ser I Invesco VI Am Fran, Ser II Invesco VI Comstock, Ser II 0.00% $ $ $ $ $ 0.30% 79 133 80 158 79 0.45% 1,524,580 9,007,684 1,237,233 1,049 1,776,112 0.65% 0.90% 4,156,402 9,024,476 3,952,994 7,148,627 3,698,782 Total $5,681,061 $18,032,293 $5,190,307 $7,149,834 $5,474,973 Subaccount Invesco VI Mid Cap Gro, Ser I Invesco VI Mid Cap Gro, Ser II Janus Aspen Global Tech, Serv Janus Aspen Janus, Serv Janus Aspen Overseas, Serv 0.00% $ $ $ $ 293 $ 0.30% 79 79 81 105 17,505 0.45% 3,099,958 75 4,927,287 2,035,761 26,065,239 0.65% 0.90% 2,611,699 2,869,833 5,363,226 6,104,121 33,526,802 Total $5,711,736 $2,869,987 $10,290,594 $8,140,280 $59,609,546 Subaccount MFS Inv Gro Stock, Serv Cl MFS New Dis, Serv Cl MFS Utilities, Serv Cl MS UIF Global Real Est, Cl II MS UIF Mid Cap Gro, Cl II 0.00% $ $ $ 25,077 $ $ 6,532 0.30% 79 80 12,442 9,026 80 0.45% 10,859,657 9,910,908 6,021,886 3,455,688 2,482,235 0.65% 0.90% 16,911,817 12,304,586 18,629,896 7,532,088 5,278,591 Total $27,771,553 $22,215,574 $24,689,301 $10,996,802 $7,767,438 Subaccount Oppen Global VA, Serv Oppen Global Strategic Inc VA, Srv Oppen Main St Sm Cap VA, Serv PIMCO VIT All Asset, Advisor Cl Put VT Global Hlth Care, Cl IB 0.00% $ 4,611 $ $ 7,077 $ 20,194 $ 0.30% 135 76 81 138,294 78 0.45% 1,744,102 17,768,024 1,297,424 13,184,142 803,311 0.65% 0.90% 5,806,374 45,360,645 5,334,308 24,684,108 3,465,819 Total $7,555,222 $63,128,745 $6,638,890 $38,026,738 $4,269,208 Subaccount Put VT Intl Eq, Cl IB Put VT Multi-Cap Gro, Cl IB VP Aggr, VP Aggr, Cl 4 VP BR Gl Infl Prot Sec, 0.00% $ $ $ 254,724 $ $ 0.30% 81 105 10 67,021 75 0.45% 107,562 4,545,696 22,491,797 52,346,119 6,189,052 0.65% 0.90% 2,410,706 1,218,265 53,614,368 203,276,791 13,807,196 Total $2,518,349 $5,764,066 $76,360,899 $255,689,931 $19,996,323 58 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Subaccount VP Conserv, VP Conserv, Cl 4 VP Mod, VP Mod, Cl 4 0.00% $ 447,674 $ $ 1,171,639 $ $ 2,186,549 0.30% 73,731 10 70,423 10 10 0.45% 7,301,559 14,653,453 71,523,735 173,573,736 59,759,900 0.65% 0.90% 18,844,814 42,354,069 179,910,992 533,501,909 183,005,249 Total $26,667,778 $57,007,532 $252,676,789 $707,075,655 $244,951,708 VP Mod Aggr, Subaccount VP Mod Aggr, Cl 4 VP Mod Conserv, VP Mod Conserv, Cl 4 VP Ptnrs Sm Cap Val, VP Sit Divd Gro, 0.00% $ $ 9,584 $ $ $ 0.30% 707,703 10 10 11 77 0.45% 195,035,067 17,782,944 38,314,912 1,413,556 1,012,412 0.65% 0.90% 771,371,206 48,523,786 107,962,318 14,105,625 2,970,281 Total $967,113,976 $66,316,324 $146,277,240 $15,519,192 $3,982,770 Subaccount VP Vty Estb Val, Wanger Intl Wanger USA WF Adv VT Index Asset Alloc, WF Adv VT Intl Eq, 0.00% $ $ $ $ $ 0.30% 78 24,288 134 77 82 0.45% 500,213 28,016,890 25,225,091 75 12,781,198 0.65% 0.90% 1,212,897 58,144,787 63,110,296 4,799,881 8,584,723 Total $1,713,188 $86,185,965 $88,335,521 $4,800,033 $21,366,003 Subaccount WF Adv VT Opp, WF Adv VT Sm Cap Gro, 0.00% $ 529 $ 5,429 0.30% 367 79 0.45% 3,545,037 2,154,113 0.65% 0.90% 11,519,842 8,091,896 Total $15,065,775 $10,251,517 9. FINANCIAL HIGHLIGHTS The table below shows certain financial information regarding the divisions. Units (000s) At Dec. 31 For the year ended Dec. 31 Accumulation unit value lowest to highest (1) Net assets (000s) Investment income ratio (2) Expense ratio lowest to highest (3) Total return lowest to highest (1)(4) AB VPS Gro & Inc, Cl B 2012 13,171 $1.00 to $1.35 $18,014 1.34% 0.30% to 0.90% 1.33% (12) to 16.19% 2011 13,733 $1.48 to $1.16 $16,063 1.09% 0.45% to 0.90% 5.60% to 5.12% 2010 13,657 $1.41 to $1.10 $15,125 0.45% to 0.90% 12.29% to 11.79% 2009 14,661 $1.25 to $0.99 $14,488 3.57% 0.45% to 0.90% 23.96% (5) to 19.27% 2008 16,010 $0.83 to $0.83 $13,261 1.77% 0.90% to 0.90% (41.23%) to (41.23%) AB VPS Intl Val, Cl B 2012 31,933 $1.06 to $1.37 $44,049 1.38% 0.30% to 0.90% 7.63% (12) to 13.17% 2011 34,962 $1.29 to $1.21 $42,487 3.82% 0.45% to 0.90% (19.80%) to (20.16%) 2010 38,470 $1.61 to $1.51 $58,348 2.39% 0.45% to 0.90% 3.83% to 3.37% 2009 73,279 $1.55 to $1.46 $107,297 1.11% 0.45% to 0.90% 56.91% (5) to 33.15% 2008 60,384 $1.10 to $1.10 $66,302 0.84% 0.90% to 0.90% (53.70%) to (53.70%) RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 59

Units (000s) At Dec. 31 For the year ended Dec. 31 Accumulation unit value lowest to highest (1) Net assets (000s) Investment income ratio (2) Expense ratio lowest to highest (3) Total return lowest to highest (1)(4) AB VPS Lg Cap Gro, Cl B 2012 2,641 $1.01 to $1.04 $3,005 0.03% 0.00% to 0.90% (1.17%) (11) to 15.08% 2011 2,719 $1.52 to $0.90 $2,716 0.09% 0.45% to 0.90% (3.71%) to (4.14%) 2010 1,958 $1.58 to $0.94 $1,998 0.27% 0.45% to 0.90% 9.34% to 8.85% 2009 2,053 $1.44 to $0.86 $1,793 0.45% to 0.90% 42.62% (5) to 35.88% 2008 1,475 $0.63 to $0.63 $936 0.90% to 0.90% (40.36%) to (40.36%) AC VP Intl, Cl II 2012 5,184 $1.05 to $1.56 $8,070 0.69% 0.30% to 0.90% 6.14% (12) to 19.92% 2011 5,331 $1.30 to $1.30 $6,922 1.24% 0.90% to 0.90% (12.97%) to (12.97%) 2010 5,536 $1.49 to $1.49 $8,259 2.15% 0.90% to 0.90% 12.13% to 12.13% 2009 5,904 $1.33 to $1.33 $7,855 1.94% 0.90% to 0.90% 32.44% to 32.44% 2008 6,360 $1.00 to $1.00 $6,390 0.68% 0.90% to 0.90% (45.39%) to (45.39%) AC VP Val, Cl II 2012 14,204 $1.04 to $1.56 $22,101 1.78% 0.00% to 0.90% 1.19% (11) to 13.55% 2011 14,656 $1.37 to $1.37 $20,093 1.89% 0.90% to 0.90% (0.04%) to (0.04%) 2010 14,868 $1.37 to $1.37 $20,391 2.07% 0.90% to 0.90% 12.02% to 12.02% 2009 15,237 $1.22 to $1.22 $18,655 5.30% 0.90% to 0.90% 18.65% to 18.65% 2008 15,668 $1.03 to $1.03 $16,168 2.40% 0.90% to 0.90% (27.46%) to (27.46%) Calvert VP SRI Bal 2012 5,009 $1.00 to $1.21 $6,642 1.19% 0.30% to 0.90% 0.72% (12) to 9.52% 2011 5,586 $1.49 to $1.11 $6,573 1.28% 0.45% to 0.90% 4.10% to 3.63% 2010 6,429 $1.43 to $1.07 $7,127 1.42% 0.45% to 0.90% 11.60% to 11.09% 2009 6,957 $1.28 to $0.96 $6,786 2.18% 0.45% to 0.90% 27.63% (5) to 24.17% 2008 7,610 $0.77 to $0.77 $5,892 2.35% 0.90% to 0.90% (31.94%) to (31.94%) Bal, 2012 114,820 $1.03 to $1.22 $147,059 0.00% to 0.90% 1.44% (11) to 13.23% 2011 129,362 $1.50 to $1.08 $145,354 0.45% to 0.90% 1.93% to 1.47% 2010 148,964 $1.47 to $1.07 $163,497 0.45% to 0.90% 12.03% to 11.52% 2009 176,743 $1.31 to $0.96 $171,763 0.45% to 0.90% 30.33% (5) to 23.11% 2008 214,306 $0.89 to $0.78 $167,410 0.26% 0.65% to 0.90% (30.37%) to (30.54%) Cash Mgmt, 2012 62,789 $1.00 to $1.13 $67,443 0.01% 0.30% to 0.90% (0.05%) (12) to (0.88%) 2011 73,316 $0.99 to $1.14 $80,169 0.01% 0.45% to 0.90% (0.44%) to (0.89%) 2010 65,651 $0.99 to $1.15 $74,131 0.01% 0.45% to 0.90% (0.44%) to (0.89%) 2009 78,440 $1.00 to $1.16 $90,667 0.07% 0.45% to 0.90% (0.30%) (5) to (0.74%) 2008 108,600 $1.12 to $1.17 $127,182 2.26% 0.65% to 0.90% 1.61% to 1.35% Div Bond, 2012 90,171 $1.00 to $1.79 $148,622 3.84% 0.30% to 0.90% 0.04% (12) to 6.59% 2011 91,587 $1.30 to $1.68 $144,170 4.50% 0.45% to 0.90% 6.21% to 5.72% 2010 102,662 $1.22 to $1.59 $156,837 3.82% 0.45% to 0.90% 7.84% to 7.35% 2009 261,434 $1.13 to $1.48 $381,120 4.02% 0.45% to 0.90% 13.37% (5) to 13.40% 2008 221,289 $1.06 to $1.30 $287,710 0.40% 0.65% to 0.90% (6.92%) to (7.15%) Divd Opp, 2012 110,137 $1.01 to $1.72 $190,556 0.30% to 0.90% 1.59% (12) to 12.96% 2011 126,361 $1.54 to $1.52 $193,142 0.45% to 0.90% (5.43%) to (5.86%) 2010 144,392 $1.63 to $1.62 $234,050 0.45% to 0.90% 16.31% to 15.78% 2009 261,045 $1.40 to $1.40 $365,134 0.45% to 0.90% 39.18% (5) to 26.32% 2008 268,902 $1.11 to $1.11 $297,729 0.08% 0.90% to 0.90% (41.00%) to (41.00%) Emer Mkts, 2012 21,618 $1.06 to $2.57 $52,674 0.39% 0.30% to 0.90% 7.05% (12) to 19.50% 2011 23,396 $1.82 to $2.15 $48,289 1.14% 0.45% to 0.90% (21.37%) to (21.73%) 2010 25,524 $2.31 to $2.75 $68,363 1.51% 0.45% to 0.90% 19.22% to 18.68% 2009 39,714 $1.94 to $2.32 $91,267 0.36% 0.45% to 0.90% 93.74% (5) to 72.52% 2008 45,673 $1.34 to $1.34 $61,313 0.71% 0.90% to 0.90% (54.12%) to (54.12%) Global Bond, 2012 24,398 $1.00 to $2.00 $42,291 2.64% 0.30% to 0.90% 0.61% (12) to 5.42% 2011 25,722 $1.26 to $1.90 $43,580 2.88% 0.45% to 0.90% 4.32% to 3.84% 2010 27,087 $1.21 to $1.83 $46,152 3.85% 0.45% to 0.90% 6.11% to 5.63% 2009 64,715 $1.14 to $1.73 $109,653 1.82% 0.45% to 0.90% 13.99% (5) to 10.38% 2008 60,052 $1.57 to $1.57 $94,219 7.11% 0.90% to 0.90% (1.33%) to (1.33%) 60 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Units (000s) At Dec. 31 For the year ended Dec. 31 Accumulation unit value lowest to highest (1) Net assets (000s) Investment income ratio (2) Expense ratio lowest to highest (3) Total return lowest to highest (1)(4) Hi Inc, 2012 5,618 $1.05 to $1.53 $8,973 6.85% 0.00% to 0.90% 3.09% (11) to 13.96% 2011 5,446 $1.63 to $1.34 $7,557 7.33% 0.45% to 0.90% 6.04% to 5.56% 2010 5,298 $1.54 to $1.27 $6,848 7.73% 0.45% to 0.90% 11.40% to 10.90% 2009 4,800 $1.38 to $1.15 $5,534 10.83% 0.45% to 0.90% 38.00% (5) to 42.62% 2008 3,270 $0.80 to $0.80 $2,632 11.41% 0.90% to 0.90% (25.43%) to (25.43%) Hi Yield Bond, 2012 31,733 $1.02 to $2.14 $66,843 7.28% 0.30% to 0.90% 2.37% (12) to 14.69% 2011 31,905 $1.75 to $1.87 $58,824 8.24% 0.45% to 0.90% 5.21% to 4.73% 2010 35,749 $1.66 to $1.79 $63,266 9.09% 0.45% to 0.90% 13.45% to 12.94% 2009 41,362 $1.47 to $1.58 $65,183 10.26% 0.45% to 0.90% 48.28% (5) to 52.47% 2008 45,491 $1.04 to $1.04 $47,163 0.33% 0.90% to 0.90% (25.85%) to (25.85%) Inc Opp, 2012 12,297 $1.02 to $1.66 $21,006 6.53% 0.30% to 0.90% 2.09% (12) to 13.76% 2011 11,168 $1.60 to $1.46 $16,655 9.12% 0.45% to 0.90% 5.79% to 5.31% 2010 10,733 $1.52 to $1.39 $15,073 3.72% 0.45% to 0.90% 12.55% to 12.03% 2009 79,575 $1.35 to $1.24 $98,987 4.93% 0.45% to 0.90% 34.82% (5) to 41.12% 2008 41,258 $0.88 to $0.88 $36,252 0.08% 0.90% to 0.90% (19.54%) to (19.54%) Intl Opp, 2012 81,126 $1.05 to $0.96 $85,682 1.56% 0.30% to 0.90% 5.86% (12) to 16.64% 2011 93,912 $1.41 to $0.82 $84,058 1.34% 0.45% to 0.90% (12.80%) to (13.20%) 2010 110,255 $1.62 to $0.95 $111,451 1.43% 0.45% to 0.90% 13.38% to 12.87% 2009 136,197 $1.43 to $0.84 $117,038 1.56% 0.45% to 0.90% 44.19% (5) to 26.40% 2008 167,808 $0.67 to $0.67 $111,637 2.32% 0.90% to 0.90% (40.97%) to (40.97%) Lg Cap Gro, 2012 51,835 $1.01 to $0.60 $40,678 0.30% to 0.90% 1.88% (12) to 19.07% 2011 61,060 $1.62 to $0.50 $37,920 0.45% to 0.90% (3.66%) to (4.10%) 2010 76,325 $1.68 to $0.53 $44,431 0.45% to 0.90% 16.64% to 16.11% 2009 97,663 $1.44 to $0.45 $45,398 0.45% to 0.90% 42.81% (5) to 35.76% 2008 268,527 $0.33 to $0.33 $89,491 0.24% 0.90% to 0.90% (44.84%) to (44.84%) Lg Core Quan, 2012 245,142 $1.00 to $0.85 $245,254 0.30% to 0.90% 0.52% (12) to 12.84% 2011 282,660 $1.69 to $0.75 $242,319 0.45% to 0.90% 4.76% to 4.28% 2010 336,117 $1.61 to $0.72 $262,784 0.45% to 0.90% 16.81% to 16.28% 2009 411,679 $1.38 to $0.62 $261,254 0.45% to 0.90% 36.80% (5) to 23.04% 2008 494,270 $0.76 to $0.50 $249,703 0.23% 0.65% to 0.90% (42.54%) to (42.68%) Mid Cap Gro Opp, 2012 7,627 $1.01 to $1.41 $12,126 0.30% to 0.90% 2.57% (12) to 10.26% 2011 8,628 $1.84 to $1.28 $12,265 0.45% to 0.90% (15.45%) to (15.83%) 2010 10,047 $2.18 to $1.52 $16,099 0.45% to 0.90% 25.72% to 25.15% 2009 11,364 $1.73 to $1.22 $13,984 0.45% to 0.90% 70.03% (5) to 61.94% 2008 9,321 $0.75 to $0.75 $7,004 0.02% 0.90% to 0.90% (45.34%) to (45.34%) Mid Cap Val Opp, 2012 6,577 $1.02 to $1.30 $9,228 0.30% to 0.90% 3.62% (12) to 17.39% 2011 7,409 $1.69 to $1.11 $8,777 0.45% to 0.90% (8.90%) to (9.31%) 2010 8,268 $1.85 to $1.22 $10,456 0.45% to 0.90% 21.97% to 21.41% 2009 9,731 $1.52 to $1.01 $9,887 0.45% to 0.90% 49.83% (5) to 39.68% 2008 8,371 $0.72 to $0.72 $6,031 0.00% 0.90% to 0.90% (45.60%) to (45.60%) S&P 500, 2012 31,468 $1.02 to $1.05 $39,404 0.00% to 0.90% (0.10%) (11) to 14.50% 2011 35,680 $1.58 to $0.92 $36,940 0.45% to 0.90% 1.17% to 0.71% 2010 41,718 $1.56 to $0.91 $40,563 0.45% to 0.90% 14.19% to 13.67% 2009 49,544 $1.37 to $0.80 $40,715 0.45% to 0.90% 36.77% (5) to 24.87% 2008 54,578 $0.64 to $0.64 $35,061 0.08% 0.90% to 0.90% (37.66%) to (37.66%) Select Lg Cap Val, 2012 3,259 $1.02 to $1.22 $4,432 0.30% to 0.90% 3.13% (12) to 17.41% 2011 3,618 $1.64 to $1.04 $4,074 0.45% to 0.90% (2.13%) to (2.58%) 2010 3,205 $1.67 to $1.07 $3,578 0.45% to 0.90% 19.99% to 19.44% 2009 1,542 $1.39 to $0.90 $1,401 0.45% to 0.90% 37.30% (5) to 25.00% 2008 707 $0.72 to $0.72 $507 0.06% 0.90% to 0.90% (40.00%) to (40.00%) RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 61

Units (000s) At Dec. 31 For the year ended Dec. 31 Accumulation unit value lowest to highest (1) Net assets (000s) Investment income ratio (2) Expense ratio lowest to highest (3) Total return lowest to highest (1)(4) Select Sm Cap Val, 2012 7,585 $1.04 to $1.60 $13,193 0.30% to 0.90% 5.93% (12) to 16.70% 2011 9,163 $1.75 to $1.37 $13,371 0.45% to 0.90% (8.92%) to (9.34%) 2010 10,438 $1.93 to $1.51 $16,205 0.45% to 0.90% 26.23% to 25.66% 2009 12,054 $1.53 to $1.20 $14,607 0.45% to 0.90% 52.13% (5) to 38.56% 2008 13,843 $0.87 to $0.87 $12,010 0.00% 0.90% to 0.90% (39.15%) to (39.15%) US Govt Mtge, 2012 28,888 $1.00 to $1.34 $36,192 0.92% 0.30% to 0.90% 0.24% (12) to 0.70% 2011 30,293 $1.08 to $1.33 $38,244 0.88% 0.45% to 0.90% 0.93% to 0.47% 2010 32,466 $1.07 to $1.33 $41,734 0.86% 0.45% to 0.90% 2.54% to 2.07% 2009 47,727 $1.05 to $1.30 $61,321 2.85% 0.45% to 0.90% 4.67% (5) to 4.58% 2008 41,046 $1.06 to $1.24 $50,877 0.14% 0.65% to 0.90% (3.27%) to (3.51%) CS Commodity Return 2012 13,912 $0.97 to $0.85 $13,294 0.30% to 0.90% (0.90%) (12) to (2.98%) 2011 14,525 $1.28 to $0.87 $13,973 2.51% 0.45% to 0.90% (13.04%) to (13.43%) 2010 13,210 $1.47 to $1.01 $14,110 7.14% 0.45% to 0.90% 16.14% to 15.62% 2009 12,827 $1.27 to $0.87 $11,392 12.95% 0.45% to 0.90% 23.31% (5) to 18.40% 2008 9,269 $0.74 to $0.74 $6,837 1.41% 0.90% to 0.90% (34.33%) to (34.33%) EV VT Floating-Rate Inc 2012 18,993 $1.01 to $1.19 $24,634 4.19% 0.30% to 0.90% 0.61% (12) to 6.36% 2011 17,423 $1.51 to $1.11 $20,913 4.23% 0.45% to 0.90% 2.09% to 1.63% 2010 15,470 $1.48 to $1.10 $17,646 4.20% 0.45% to 0.90% 8.63% to 8.15% 2009 52,242 $1.36 to $1.01 $53,480 4.76% 0.45% to 0.90% 35.92% (5) to 43.02% 2008 29,685 $0.71 to $0.71 $21,044 5.80% 0.90% to 0.90% (27.79%) to (27.79%) Fid VIP Contrafund, Serv 2012 58,532 $1.02 to $1.06 $72,573 1.13% 0.00% to 0.90% (0.02%) (11) to 15.10% 2011 63,218 $1.66 to $0.92 $65,686 0.79% 0.45% to 0.90% (3.22%) to (3.65%) 2010 68,288 $1.71 to $0.96 $69,897 0.92% 0.45% to 0.90% 16.40% to 15.88% 2009 103,401 $1.47 to $0.82 $86,836 1.00% 0.45% to 0.90% 45.16% (5) to 34.25% 2008 153,178 $0.61 to $0.61 $94,112 1.27% 0.90% to 0.90% (43.21%) to (43.21%) Fid VIP Gro & Inc, Serv 2012 17,499 $1.00 to $1.46 $25,464 2.04% 0.30% to 0.90% 1.28% (12) to 17.19% 2011 18,563 $1.24 to $1.24 $23,060 1.57% 0.90% to 0.90% 0.45% to 0.45% 2010 19,915 $1.24 to $1.24 $24,628 0.47% 0.90% to 0.90% 13.52% to 13.52% 2009 21,360 $1.09 to $1.09 $23,269 0.87% 0.90% to 0.90% 25.88% to 25.88% 2008 23,149 $0.87 to $0.87 $20,034 0.93% 0.90% to 0.90% (42.42%) to (42.42%) Fid VIP Mid Cap, Serv 2012 27,440 $1.04 to $2.28 $62,499 0.39% 0.00% to 0.90% 1.19% (11) to 13.53% 2011 29,848 $2.01 to $2.01 $59,948 0.02% 0.90% to 0.90% (11.65%) to (11.65%) 2010 32,953 $2.27 to $2.27 $74,911 0.11% 0.90% to 0.90% 27.42% to 27.42% 2009 47,236 $1.78 to $1.78 $84,274 0.46% 0.90% to 0.90% 38.50% to 38.50% 2008 48,530 $1.29 to $1.29 $62,515 0.25% 0.90% to 0.90% (40.15%) to (40.15%) Fid VIP Overseas, Serv 2012 8,372 $1.05 to $1.48 $12,364 1.73% 0.30% to 0.90% 5.49% (12) to 19.30% 2011 8,967 $1.24 to $1.24 $11,101 1.15% 0.90% to 0.90% (18.08%) to (18.08%) 2010 9,418 $1.51 to $1.51 $14,233 1.16% 0.90% to 0.90% 11.82% to 11.82% 2009 10,268 $1.35 to $1.35 $13,877 1.98% 0.90% to 0.90% 25.09% to 25.09% 2008 10,566 $1.08 to $1.08 $11,415 2.32% 0.90% to 0.90% (44.46%) to (44.46%) FTVIPT Frank Global Real Est, 2012 23,244 $1.05 to $2.21 $49,524 0.30% to 0.90% 4.34% (12) to 26.27% 2011 24,298 $1.55 to $1.75 $41,430 7.82% 0.45% to 0.90% (6.08%) to (6.50%) 2010 26,140 $1.65 to $1.87 $48,225 2.86% 0.45% to 0.90% 20.43% to 19.89% 2009 28,729 $1.37 to $1.56 $44,681 12.93% 0.45% to 0.90% 36.46% (5) to 18.02% 2008 31,693 $1.32 to $1.32 $41,963 1.01% 0.90% to 0.90% (42.91%) to (42.91%) FTVIPT Frank Sm Cap Val, 2012 13,285 $1.12 to $2.70 $33,052 0.78% 0.00% to 0.90% 6.48% (11) to 17.32% 2011 14,868 $1.77 to $2.30 $32,212 0.70% 0.45% to 0.90% (4.19%) to (4.62%) 2010 16,486 $1.85 to $2.41 $38,444 0.76% 0.45% to 0.90% 27.65% to 27.07% 2009 18,333 $1.45 to $1.90 $34,435 1.67% 0.45% to 0.90% 44.49% (5) to 28.00% 2008 21,085 $1.48 to $1.48 $31,287 1.14% 0.90% to 0.90% (33.62%) to (33.62%) 62 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Units (000s) At Dec. 31 For the year ended Dec. 31 Accumulation unit value lowest to highest (1) Net assets (000s) Investment income ratio (2) Expense ratio lowest to highest (3) Total return lowest to highest (1)(4) FTVIPT Mutual Shares Sec, 2012 12,747 $1.03 to $1.44 $18,632 2.04% 0.00% to 0.90% 1.41% (11) to 13.22% 2011 13,997 $1.45 to $1.27 $18,021 2.33% 0.45% to 0.90% (1.49%) to (1.93%) 2010 15,207 $1.47 to $1.30 $19,858 1.58% 0.45% to 0.90% 10.69% to 10.20% 2009 15,242 $1.33 to $1.18 $17,966 1.96% 0.45% to 0.90% 32.61% (5) to 24.92% 2008 14,083 $0.94 to $0.94 $13,255 2.98% 0.90% to 0.90% (37.67%) to (37.67%) GS VIT Mid Cap Val, Inst 2012 34,956 $1.02 to $2.92 $86,843 1.15% 0.30% to 0.90% 3.26% (12) to 17.40% 2011 37,702 $1.64 to $2.49 $83,147 0.73% 0.45% to 0.90% (6.80%) to (7.22%) 2010 40,967 $1.76 to $2.68 $102,337 0.59% 0.45% to 0.90% 24.44% to 23.88% 2009 59,940 $1.41 to $2.16 $126,835 1.80% 0.45% to 0.90% 40.55% (5) to 31.96% 2008 65,878 $1.64 to $1.64 $107,948 1.01% 0.90% to 0.90% (37.62%) to (37.62%) GS VIT Structd U.S. Eq, Inst 2012 26,650 $1.00 to $1.01 $31,535 1.77% 0.30% to 0.90% 1.53% (12) to 13.43% 2011 31,288 $1.53 to $0.89 $31,252 1.66% 0.45% to 0.90% 3.58% to 3.12% 2010 38,294 $1.48 to $0.86 $34,968 1.43% 0.45% to 0.90% 12.34% to 11.83% 2009 46,494 $1.32 to $0.77 $36,441 1.97% 0.45% to 0.90% 30.78% (5) to 20.06% 2008 57,899 $0.64 to $0.64 $37,251 1.34% 0.90% to 0.90% (37.56%) to (37.56%) Invesco VI Div Divd, Ser I 2012 5,252 $1.01 to $1.08 $5,681 2.22% 0.30% to 0.90% 1.57% (12) to 17.66% 2011 4,067 $0.92 to $0.92 $3,734 0.45% to 0.90% (7.97%) (9) to (8.25%) (9) 2010 2009 2008 Invesco VI Intl Gro, Ser II 2012 14,623 $1.03 to $0.96 $18,032 1.32% 0.30% to 0.90% 4.05% (12) to 14.22% 2011 14,797 $1.50 to $0.84 $15,341 1.16% 0.45% to 0.90% (7.41%) to (7.82%) 2010 17,457 $1.62 to $0.91 $17,730 0.61% 0.45% to 0.90% 12.10% to 11.60% 2009 131,264 $1.45 to $0.82 $109,055 1.90% 0.45% to 0.90% 44.73% (5) to 33.70% 2008 50,902 $0.61 to $0.61 $31,119 0.85% 0.90% to 0.90% (41.08%) to (41.08%) Invesco VI Tech, Ser I 2012 3,634 $1.03 to $1.30 $5,190 0.30% to 0.90% 4.41% (12) to 10.28% 2011 3,838 $1.88 to $1.18 $4,858 0.19% 0.45% to 0.90% (5.48%) to (5.90%) 2010 3,602 $1.99 to $1.25 $4,712 0.45% to 0.90% 20.76% to 20.22% 2009 3,266 $1.65 to $1.04 $3,444 0.45% to 0.90% 61.95% (5) to 55.99% 2008 1,330 $0.67 to $0.67 $889 0.90% to 0.90% (45.00%) to (45.00%) Invesco VI Am Fran, Ser II 2012 7,392 $1.02 to $0.97 $7,150 0.30% to 0.90% 2.34% (12) to (3.28%) (10) 2011 2010 2009 2008 Invesco VI Comstock, Ser II 2012 4,744 $1.01 to $0.97 $5,475 1.47% 0.30% to 0.90% 2.19% (12) to 17.85% 2011 5,384 $1.61 to $0.82 $5,027 1.35% 0.45% to 0.90% (2.55%) to (2.98%) 2010 5,365 $1.66 to $0.85 $4,922 0.32% 0.45% to 0.90% 15.18% to 14.66% 2009 60,211 $1.44 to $0.74 $45,309 4.57% 0.45% to 0.90% 43.00% (5) to 27.26% 2008 63,397 $0.58 to $0.58 $36,850 1.42% 0.90% to 0.90% (36.38%) to (36.38%) Invesco VI Mid Cap Gro, Ser I 2012 5,838 $1.02 to $0.98 $5,712 0.30% to 0.90% 3.11% (12) to (2.32%) (10) 2011 2010 2009 2008 Invesco VI Mid Cap Gro, Ser II 2012 2,938 $1.02 to $0.98 $2,870 0.30% to 0.90% 3.12% (12) to (2.33%) (10) 2011 2010 2009 2008 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 63

Units (000s) At Dec. 31 For the year ended Dec. 31 Accumulation unit value lowest to highest (1) Net assets (000s) Investment income ratio (2) Expense ratio lowest to highest (3) Total return lowest to highest (1)(4) Janus Aspen Global Tech, Serv 2012 10,992 $1.03 to $0.61 $10,291 0.30% to 0.90% 4.53% (12) to 18.08% 2011 13,225 $1.85 to $0.52 $9,854 0.45% to 0.90% (9.07%) to (9.47%) 2010 18,070 $2.03 to $0.57 $12,647 0.45% to 0.90% 23.84% to 23.28% 2009 22,231 $1.64 to $0.47 $10,743 0.45% to 0.90% 62.40% (5) to 55.49% 2008 21,385 $0.30 to $0.30 $6,401 0.09% 0.90% to 0.90% (44.47%) to (44.47%) Janus Aspen Janus, Serv 2012 7,021 $1.02 to $1.04 $8,140 0.44% 0.00% to 0.90% 0.51% (11) to 17.22% 2011 7,908 $1.52 to $0.88 $7,628 0.44% 0.45% to 0.90% (5.96%) to (6.38%) 2010 9,896 $1.62 to $0.95 $9,945 0.07% 0.45% to 0.90% 13.75% to 13.23% 2009 134,461 $1.42 to $0.83 $113,948 0.40% 0.45% to 0.90% 40.49% (5) to 34.79% 2008 106,794 $0.62 to $0.62 $66,143 0.71% 0.90% to 0.90% (40.41%) to (40.41%) Janus Aspen Overseas, Serv 2012 38,990 $1.08 to $1.38 $59,610 0.60% 0.30% to 0.90% 8.78% (12) to 12.16% 2011 47,186 $1.57 to $1.23 $62,698 0.38% 0.45% to 0.90% (32.64%) to (32.94%) 2010 58,040 $2.34 to $1.84 $110,729 0.54% 0.45% to 0.90% 24.46% to 23.90% 2009 66,841 $1.88 to $1.48 $100,208 0.41% 0.45% to 0.90% 85.75% (5) to 77.47% 2008 77,280 $0.84 to $0.84 $64,545 1.12% 0.90% to 0.90% (52.66%) to (52.66%) MFS Inv Gro Stock, Serv Cl 2012 25,357 $1.02 to $0.86 $27,772 0.22% 0.30% to 0.90% 3.15% (12) to 15.63% 2011 29,144 $1.64 to $0.74 $25,873 0.26% 0.45% to 0.90% (0.08%) to (0.53%) 2010 33,574 $1.64 to $0.75 $27,281 0.63% 0.45% to 0.90% 11.65% to 11.15% 2009 226,867 $1.47 to $0.67 $155,671 0.12% 0.45% to 0.90% 46.08% (5) to 37.85% 2008 41,404 $0.49 to $0.49 $20,207 0.30% 0.90% to 0.90% (37.55%) to (37.55%) MFS New Dis, Serv Cl 2012 12,669 $1.01 to $1.40 $22,216 0.30% to 0.90% 3.25% (12) to 19.81% 2011 14,969 $2.13 to $1.17 $20,606 0.45% to 0.90% (10.90%) to (11.30%) 2010 15,964 $2.40 to $1.31 $22,592 0.45% to 0.90% 35.33% to 34.72% 2009 18,411 $1.77 to $0.98 $18,295 0.45% to 0.90% 75.37% (5) to 61.46% 2008 20,640 $0.60 to $0.60 $12,467 0.90% to 0.90% (40.06%) to (40.06%) MFS Utilities, Serv Cl 2012 9,224 $1.05 to $3.14 $24,689 6.30% 0.00% to 0.90% 2.59% (11) to 12.20% 2011 9,201 $1.64 to $2.80 $22,794 3.10% 0.45% to 0.90% 6.03% to 5.55% 2010 7,881 $1.55 to $2.65 $19,533 3.00% 0.45% to 0.90% 13.00% to 12.49% 2009 7,666 $1.37 to $2.35 $17,698 4.64% 0.45% to 0.90% 35.47% (5) to 31.68% 2008 7,679 $1.79 to $1.79 $13,733 1.26% 0.90% to 0.90% (38.37%) to (38.37%) MS UIF Global Real Est, Cl II 2012 9,566 $1.05 to $0.93 $10,997 0.54% 0.30% to 0.90% 4.83% (12) to 28.78% 2011 9,999 $1.79 to $0.73 $8,639 3.38% 0.45% to 0.90% (10.56%) to (10.96%) 2010 9,500 $2.00 to $0.81 $8,518 5.49% 0.45% to 0.90% 21.77% to 21.22% 2009 34,566 $1.65 to $0.67 $23,757 0.02% 0.45% to 0.90% 63.94% (5) to 40.15% 2008 39,824 $0.48 to $0.48 $19,086 2.84% 0.90% to 0.90% (44.84%) to (44.84%) MS UIF Mid Cap Gro, Cl II 2012 5,694 $1.05 to $1.16 $7,767 0.00% to 0.90% 0.57% (11) to 7.51% 2011 7,498 $2.04 to $1.08 $9,144 0.25% 0.45% to 0.90% (7.59%) to (8.00%) 2010 6,126 $2.20 to $1.17 $7,631 0.45% to 0.90% 31.68% to 31.09% 2009 4,621 $1.67 to $0.89 $4,215 0.45% to 0.90% 65.91% (5) to 55.95% 2008 3,367 $0.57 to $0.57 $1,928 0.85% 0.90% to 0.90% (47.29%) to (47.29%) Oppen Global VA, Serv 2012 5,222 $1.10 to $1.35 $7,555 1.95% 0.00% to 0.90% 7.07% (11) to 19.86% 2011 5,562 $1.60 to $1.12 $6,607 0.99% 0.45% to 0.90% (8.94%) to (9.35%) 2010 5,073 $1.75 to $1.24 $6,458 1.13% 0.45% to 0.90% 15.18% to 14.67% 2009 4,323 $1.52 to $1.08 $4,703 1.74% 0.45% to 0.90% 52.47% (5) to 38.11% 2008 3,352 $0.78 to $0.78 $2,624 1.17% 0.90% to 0.90% (40.87%) to (40.87%) Oppen Global Strategic Inc VA, Srv 2012 42,610 $1.02 to $1.46 $63,129 5.63% 0.30% to 0.90% 1.71% (12) to 12.13% 2011 43,973 $1.36 to $1.30 $57,862 2.81% 0.45% to 0.90% 0.20% to (0.25%) 2010 46,147 $1.36 to $1.31 $60,600 14.17% 0.45% to 0.90% 14.26% to 13.74% 2009 134,754 $1.19 to $1.15 $154,953 0.23% 0.45% to 0.90% 19.74% (5) to 17.35% 2008 117,872 $0.98 to $0.98 $115,342 3.21% 0.90% to 0.90% (15.25%) to (15.25%) 64 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Units (000s) At Dec. 31 For the year ended Dec. 31 Accumulation unit value lowest to highest (1) Net assets (000s) Investment income ratio (2) Expense ratio lowest to highest (3) Total return lowest to highest (1)(4) Oppen Main St Sm Cap VA, Serv 2012 4,577 $1.05 to $1.35 $6,639 0.33% 0.00% to 0.90% 1.22% (11) to 16.61% 2011 4,516 $1.83 to $1.15 $5,507 0.40% 0.45% to 0.90% (2.82%) to (3.26%) 2010 5,116 $1.88 to $1.19 $6,285 0.42% 0.45% to 0.90% 22.50% to 21.95% 2009 5,750 $1.53 to $0.98 $5,677 0.56% 0.45% to 0.90% 52.02% (5) to 35.66% 2008 4,375 $0.72 to $0.72 $3,155 0.23% 0.90% to 0.90% (38.56%) to (38.56%) PIMCO VIT All Asset, Advisor Cl 2012 26,343 $1.04 to $1.36 $38,027 5.12% 0.00% to 0.90% 1.87% (11) to 13.78% 2011 22,417 $1.44 to $1.19 $28,097 7.70% 0.45% to 0.90% 1.47% to 1.01% 2010 19,732 $1.42 to $1.18 $24,033 5.50% 0.45% to 0.90% 12.50% to 11.99% 2009 84,798 $1.26 to $1.06 $90,030 7.16% 0.45% to 0.90% 25.97% (5) to 20.34% 2008 79,807 $0.88 to $0.88 $69,978 7.58% 0.90% to 0.90% (16.67%) to (16.67%) Put VT Global Hlth Care, Cl IB 2012 2,842 $1.00 to $1.49 $4,269 1.26% 0.30% to 0.90% 1.44% (12) to 21.17% 2011 2,876 $1.27 to $1.23 $3,558 3.35% 0.45% to 0.90% (1.62%) to (2.06%) 2010 2,757 $1.29 to $1.26 $3,473 1.93% 0.45% to 0.90% 2.01% to 1.55% 2009 2,891 $1.26 to $1.24 $3,583 11.39% 0.45% to 0.90% 26.74% (5) to 24.87% 2008 2,745 $0.99 to $0.99 $2,723 0.90% to 0.90% (17.81%) to (17.81%) Put VT Intl Eq, Cl IB 2012 1,868 $1.05 to $1.34 $2,518 2.17% 0.30% to 0.90% 5.54% (12) to 20.82% 2011 1,936 $1.28 to $1.11 $2,154 3.31% 0.45% to 0.90% (17.31%) to (17.68%) 2010 2,005 $1.55 to $1.35 $2,706 3.59% 0.45% to 0.90% 9.53% to 9.04% 2009 2,172 $1.42 to $1.24 $2,685 0.45% to 0.90% 42.55% (5) to 23.52% 2008 2,361 $1.00 to $1.00 $2,361 2.33% 0.90% to 0.90% (44.45%) to (44.45%) Put VT Multi-Cap Gro, Cl IB 2012 4,647 $1.02 to $1.23 $5,764 0.24% 0.30% to 0.90% 3.17% (12) to 15.71% 2011 5,328 $1.07 to $1.06 $5,687 0.26% 0.45% to 0.90% (5.51%) to (5.93%) 2010 6,077 $1.13 to $1.13 $6,872 0.45% to 0.90% 13.18% (8) to 13.04% (8) 2009 2008 VP Aggr, 2012 62,709 $1.04 to $1.21 $76,361 0.00% to 0.90% 1.55% (11) to 12.68% 2011 52,490 $1.09 to $1.08 $56,645 0.45% to 0.90% (3.53%) to (3.97%) 2010 22,567 $1.13 to $1.12 $25,328 0.45% to 0.90% 13.71% (7) to 13.37% (7) 2009 2008 VP Aggr, Cl 4 2012 209,766 $1.02 to $1.22 $255,690 0.30% to 0.90% 2.50% (12) to 12.66% 2011 227,782 $1.09 to $1.08 $246,147 0.45% to 0.90% (3.35%) to (3.79%) 2010 228,671 $1.13 to $1.12 $256,613 0.45% to 0.90% 13.71% (7) to 13.37% (7) 2009 2008 VP BR Gl Infl Prot Sec, 2012 15,109 $1.01 to $1.34 $19,996 4.35% 0.30% to 0.90% 1.44% (12) to 4.66% 2011 15,016 $1.22 to $1.28 $19,013 7.19% 0.45% to 0.90% 9.54% to 9.04% 2010 13,966 $1.12 to $1.18 $16,290 0.75% 0.45% to 0.90% 3.67% to 3.19% 2009 106,344 $1.08 to $1.14 $120,881 9.70% 0.45% to 0.90% 8.14% (5) to 5.88% 2008 48,769 $1.08 to $1.08 $52,470 2.60% 0.90% to 0.90% (0.76%) to (0.76%) VP Conserv, 2012 23,433 $1.02 to $1.14 $26,668 0.00% to 0.90% 1.22% (11) to 6.30% 2011 15,302 $1.08 to $1.07 $16,391 0.45% to 0.90% 2.77% to 2.31% 2010 3,952 $1.05 to $1.05 $4,132 0.45% to 0.90% 5.63% (7) to 5.32% (7) 2009 2008 VP Conserv, Cl 4 2012 49,987 $1.01 to $1.14 $57,008 0.30% to 0.90% 0.82% (12) to 6.30% 2011 43,642 $1.08 to $1.07 $46,745 0.45% to 0.90% 2.77% to 2.31% 2010 26,842 $1.05 to $1.05 $28,076 0.45% to 0.90% 5.63% (7) to 5.32% (7) 2009 2008 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 65

Units (000s) At Dec. 31 For the year ended Dec. 31 Accumulation unit value lowest to highest (1) Net assets (000s) Investment income ratio (2) Expense ratio lowest to highest (3) Total return lowest to highest (1)(4) VP Mod, 2012 210,976 $1.03 to $1.19 $252,677 0.00% to 0.90% 1.49% (11) to 9.87% 2011 153,549 $1.10 to $1.09 $167,217 0.45% to 0.90% (0.17%) to (0.63%) 2010 59,979 $1.10 to $1.09 $65,642 0.45% to 0.90% 9.89% (7) to 9.56% (7) 2009 2008 VP Mod, Cl 4 2012 589,697 $1.01 to $1.20 $707,076 0.30% to 0.90% 1.70% (12) to 9.86% 2011 586,390 $1.10 to $1.09 $639,064 0.45% to 0.90% (0.08%) to (0.54%) 2010 590,926 $1.10 to $1.09 $646,723 0.45% to 0.90% 9.89% (7) to 9.56% (7) 2009 2008 VP Mod Aggr, 2012 202,457 $1.03 to $1.21 $244,952 0.00% to 0.90% 1.48% (11) to 11.23% 2011 159,796 $1.09 to $1.09 $173,838 0.45% to 0.90% (1.87%) to (2.32%) 2010 62,032 $1.12 to $1.11 $68,999 0.45% to 0.90% 11.69% (7) to 11.35% (7) 2009 2008 VP Mod Aggr, Cl 4 2012 797,347 $1.01 to $1.21 $967,114 0.30% to 0.90% 2.09% (12) to 11.20% 2011 847,281 $1.10 to $1.09 $923,094 0.45% to 0.90% (1.78%) to (2.22%) 2010 859,921 $1.12 to $1.11 $957,297 0.45% to 0.90% 11.79% (7) to 11.45% (7) 2009 2008 VP Mod Conserv, 2012 56,776 $1.02 to $1.16 $66,316 0.00% to 0.90% 1.27% (11) to 7.77% 2011 41,194 $1.09 to $1.08 $44,571 0.45% to 0.90% 1.41% to 0.94% 2010 13,163 $1.07 to $1.07 $14,090 0.45% to 0.90% 7.50% (7) to 7.17% (7) 2009 2008 VP Mod Conserv, Cl 4 2012 124,926 $1.01 to $1.17 $146,277 0.30% to 0.90% 1.22% (12) to 7.84% 2011 111,222 $1.09 to $1.08 $120,576 0.45% to 0.90% 1.50% to 1.03% 2010 101,588 $1.07 to $1.07 $108,871 0.45% to 0.90% 7.60% (7) to 7.27% (7) 2009 2008 VP Ptnrs Sm Cap Val, 2012 8,282 $1.03 to $1.86 $15,519 0.30% to 0.90% 4.56% (12) to 12.49% 2011 9,036 $1.76 to $1.66 $15,032 0.45% to 0.90% (4.88%) to (5.32%) 2010 9,554 $1.85 to $1.75 $16,761 0.45% to 0.90% 23.87% to 23.31% 2009 63,459 $1.49 to $1.42 $90,170 0.45% to 0.90% 48.03% (5) to 35.33% 2008 53,130 $1.05 to $1.05 $55,702 0.07% 0.90% to 0.90% (32.19%) to (32.19%) VP Sit Divd Gro, 2012 3,922 $0.99 to $0.89 $3,983 0.30% to 0.90% (0.14%) (12) to 9.68% 2011 4,095 $1.56 to $0.81 $3,678 0.45% to 0.90% (3.93%) to (4.37%) 2010 4,416 $1.62 to $0.85 $4,070 0.45% to 0.90% 11.03% to 10.52% 2009 159,817 $1.46 to $0.77 $124,915 0.45% to 0.90% 44.68% (5) to 30.15% 2008 76,989 $0.59 to $0.59 $45,474 0.02% 0.90% to 0.90% (39.13%) to (39.13%) VP Vty Estb Val, 2012 1,180 $1.01 to $1.32 $1,713 0.30% to 0.90% 2.21% (12) to 15.96% 2011 1,127 $1.66 to $1.13 $1,385 0.45% to 0.90% (6.86%) to (7.28%) 2010 863 $1.78 to $1.22 $1,098 0.45% to 0.90% 21.32% to 20.77% 2009 559 $1.47 to $1.01 $572 0.45% to 0.90% 45.45% (5) to 35.40% 2008 492 $0.75 to $0.75 $368 0.00% 0.90% to 0.90% (37.25%) to (37.25%) Wanger Intl 2012 45,976 $1.03 to $1.80 $86,186 1.20% 0.30% to 0.90% 3.50% (12) to 20.47% 2011 52,283 $1.71 to $1.49 $80,510 4.78% 0.45% to 0.90% (15.00%) to (15.39%) 2010 59,589 $2.01 to $1.76 $106,871 2.17% 0.45% to 0.90% 24.36% to 23.80% 2009 94,689 $1.61 to $1.42 $135,404 3.80% 0.45% to 0.90% 62.34% (5) to 48.44% 2008 113,596 $0.96 to $0.96 $108,909 0.97% 0.90% to 0.90% (46.09%) to (46.09%) 66 RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT

Units (000s) At Dec. 31 For the year ended Dec. 31 Accumulation unit value lowest to highest (1) Net assets (000s) Investment income ratio (2) Expense ratio lowest to highest (3) Total return lowest to highest (1)(4) Wanger USA 2012 39,111 $1.04 to $2.31 $88,336 0.31% 0.30% to 0.90% 6.00% (12) to 18.93% 2011 43,104 $1.79 to $1.94 $82,257 0.45% to 0.90% (3.92%) to (4.36%) 2010 48,140 $1.87 to $2.03 $96,783 0.45% to 0.90% 22.80% to 22.25% 2009 71,519 $1.52 to $1.66 $118,385 0.45% to 0.90% 51.36% (5) to 40.95% 2008 73,536 $1.18 to $1.18 $86,627 0.90% to 0.90% (40.23%) to (40.23%) WF Adv VT Index Asset Alloc, 2012 3,140 $1.00 to $1.53 $4,800 1.46% 0.30% to 0.90% 0.84% (12) to 12.02% 2011 3,112 $1.36 to $1.36 $4,247 3.23% 0.90% to 0.90% 5.53% to 5.53% 2010 3,135 $1.29 to $1.29 $4,054 1.76% 0.90% to 0.90% 12.27% to 12.27% 2009 3,367 $1.15 to $1.15 $3,878 2.05% 0.90% to 0.90% 14.42% to 14.42% 2008 3,655 $1.01 to $1.01 $3,680 2.40% 0.90% to 0.90% (29.75%) to (29.75%) WF Adv VT Intl Eq, 2012 14,623 $1.06 to $1.45 $21,366 1.31% 0.30% to 0.90% 6.62% (12) to 12.46% 2011 17,393 $1.30 to $1.29 $22,492 0.11% 0.45% to 0.90% (13.30%) to (13.69%) 2010 20,666 $1.50 to $1.49 $30,862 0.74% 0.45% to 0.90% 15.98% to 15.46% 2009 24,622 $1.30 to $1.29 $31,780 3.91% 0.45% to 0.90% 30.30% (6) to 29.79% (6) 2008 WF Adv VT Opp, 2012 8,359 $1.06 to $1.73 $15,066 0.09% 0.00% to 0.90% 2.93% (11) to 14.48% 2011 10,887 $1.81 to $1.51 $17,056 0.06% 0.45% to 0.90% (5.94%) to (6.36%) 2010 2,198 $1.93 to $1.61 $3,567 0.75% 0.45% to 0.90% 23.20% to 22.65% 2009 2,163 $1.56 to $1.32 $2,849 0.45% to 0.90% 55.37% (5) to 46.41% 2008 2,051 $0.90 to $0.90 $1,844 1.92% 0.90% to 0.90% (40.64%) to (40.64%) WF Adv VT Sm Cap Gro, 2012 5,320 $0.99 to $1.87 $10,252 0.00% to 0.90% (3.90%) (11) to 6.90% 2011 5,886 $2.05 to $1.75 $10,511 0.45% to 0.90% (5.02%) to (5.45%) 2010 6,959 $2.16 to $1.85 $13,036 0.45% to 0.90% 26.20% to 25.64% 2009 6,818 $1.71 to $1.47 $10,069 0.45% to 0.90% 70.90% (5) to 51.27% 2008 5,442 $0.97 to $0.97 $5,287 0.90% to 0.90% (41.95%) to (41.95%) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) The accumulation unit values and total returns are based on the life insurance policies with the lowest and highest expense ratios. These amounts represent the dividends, excluding distributions of capital gains, received by the division from the underlying fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude variable account expenses that result in direct reductions in the unit values. The recognition of investment income by the division is affected by the timing of the declaration of dividends by the underlying fund in which the division invests. These ratios are annualized for periods less than one year. These ratios represent the annualized policy 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 policy owner accounts through the redemption of units and expenses of the underlying fund are excluded. These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. Although the total return is presented as a range of minimum to maximum values, based on the subaccounts representing the minimum and maximum expense ratio amounts, some individual subaccount total returns are not within the ranges presented due to the introduction of new subaccounts during the year and other market factors. New subaccount operations commenced on Jan. 23, 2009. New subaccount operations commenced on Feb. 13, 2009. New subaccount operations commenced on May 7, 2010. New subaccount operations commenced on Sept. 24, 2010. New subaccount operations commenced on April 29, 2011. New subaccount operations commenced on April 27, 2012. New subaccount operations commenced on Sept. 12, 2012. New subaccount operations commenced on Nov. 2, 2012. RIVERSOURCE SINGLE PREMIUM VARIABLE LIFE INSURANCE 2012 ANNUAL REPORT 67

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE BOARD OF DIRECTORS AND SHAREHOLDER OF RIVERSOURCE LIFE INSURANCE COMPANY: We have audited the accompanying consolidated balance sheets of RiverSource Life Insurance Company and its subsidiaries (the Company ) as of December 31, 2012 and December 31, 2011 and the related consolidated statements of income, statements of comprehensive income, shareholder s equity, and cash flows for each of the two years in the period ended December 31, 2012. These financial statements are the responsibility of the Company s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of RiverSource Life Insurance Company and its subsidiaries at December 31, 2012 and December 31, 2011, and the results of their operations and their cash flows for each of the two years in the period ended December 31, 2012 in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 1 to the Consolidated Financial Statements, the Company changed the manner in which it accounts for deferred acquisition costs in 2012. Minneapolis, Minnesota February 26, 2013 F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS RIVERSOURCE LIFE INSURANCE COMPANY We have audited the accompanying consolidated statements of income, comprehensive income, shareholder s equity and cash flows of RiverSource Life Insurance Company, (a wholly owned subsidiary of Ameriprise Financial, Inc.) (the Company) for the year ended December 31, 2010. These financial statements are the responsibility of the Company s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company s internal control over financial reporting. Our audit 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 audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated results of RiverSource Life Insurance Company s operations and its cash flows for the year ended December 31, 2010, in conformity with U.S. generally accepted accounting principles. As discussed in Notes 1 and 3 to the consolidated financial statements, in 2012 the Company adopted new accounting guidance related to the deferral of acquisition costs for insurance and annuity products. The accompanying 2010 financial statements have been retrospectively adjusted. Minneapolis, Minnesota February 23, 2011; except for Notes 1 and 3, regarding the impact of the adopted new accounting guidance related to the deferral of acquisition costs for insurance and annuity products, as to which the date is February 26, 2013. F-2

RiverSource Life Insurance Company CONSOLIDATED BALANCE SHEETS (in millions, except share amounts) December 31, 2012 2011 Assets Investments: Available-for-Sale: Fixed maturities, at fair value (amortized cost: 2012, $23,058; 2011, $24,398) $ 25,932 $ 26,577 Common stocks, at fair value (cost: 2012, $2; 2011, $1) 4 2 Mortgage loans, at amortized cost (less allowance for loan losses: 2012, $26; 2011, $32) 3,389 2,473 Policy loans 752 739 Other investments 743 730 Total investments 30,820 30,521 Cash and cash equivalents 336 828 Restricted cash 86 26 Reinsurance recoverables 2,047 1,953 Other receivables 203 162 Accrued investment income 291 307 Deferred acquisition costs 2,373 2,413 Deferred sales inducement costs 404 464 Other assets 3,793 3,638 Separate account assets 69,395 63,174 Total assets $109,748 $103,486 Liabilities and Shareholder s Equity Liabilities: Future policy benefits $ 30,670 $ 31,169 Policy claims and other policyholders funds 132 121 Borrowings under repurchase agreements 501 504 Line of credit with Ameriprise Financial, Inc. 150 300 Other liabilities 4,201 3,608 Separate account liabilities 69,395 63,174 Total liabilities 105,049 98,876 Shareholder s equity: Common stock, $30 par value; 100,000 shares authorized, issued and outstanding 3 3 Additional paid-in capital 2,462 2,461 Retained earnings 1,000 1,215 Accumulated other comprehensive income, net of tax 1,234 931 Total shareholder s equity 4,699 4,610 Total liabilities and shareholder s equity $109,748 $103,486 See Notes to Consolidated Financial Statements. F-3

RiverSource Life Insurance Company CONSOLIDATED STATEMENTS OF INCOME (in millions) Years Ended December 31, 2012 2011 2010 Revenues Premiums $ 442 $ 493 $ 489 Net investment income 1,480 1,593 1,629 Policy and contract charges 1,593 1,540 1,389 Other revenues 329 303 272 Net realized investment gains (losses) (3) 5 16 Total revenues 3,841 3,934 3,795 Benefits and expenses Benefits, claims, losses and settlement expenses 1,216 950 1,203 Interest credited to fixed accounts 831 856 909 Amortization of deferred acquisition costs 225 336 53 Other insurance and operating expenses 755 781 746 Total benefits and expenses 3,027 2,923 2,911 Pretax income 814 1,011 884 Income tax provision 164 190 195 Net income $ 650 $ 821 $ 689 Supplemental Disclosures: Total other-than-temporary impairment losses on securities $ (12) $ (47) $ (22) Portion of gain (loss) recognized in other comprehensive income (before taxes) (5) 23 (6) Net impairment losses recognized in net realized investment gains (losses) $ (17) $ (24) $ (28) See Notes to Consolidated Financial Statements. F-4

RiverSource Life Insurance Company CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) Years Ended December 31, 2012 2011 2010 Net income $ 650 $ 821 $ 689 Other comprehensive income, net of tax: Net unrealized gains on securities: Net unrealized securities gains arising during the period 451 364 516 Reclassification of net securities (gains) losses included in net income 1 (3) (13) Impact on deferred acquisition costs, deferred sales inducement costs, benefit reserves and reinsurance recoverables (154) (194) (169) Total net unrealized gains on securities 298 167 334 Net unrealized losses on derivatives: Reclassification of net derivative losses included in net income 5 4 4 Total net unrealized losses on derivatives 5 4 4 Total other comprehensive income, net of tax 303 171 338 Total comprehensive income $ 953 $ 992 $1,027 See Notes to Consolidated Financial Statements. F-5

RiverSource Life Insurance Company CONSOLIDATED STATEMENTS OF SHAREHOLDER S EQUITY (in millions) Common Shares Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income Total Balances at January 1, 2010, previously reported $ 3 $2,445 $ 3,114 $ 382 $ 5,944 Cumulative effect of change in accounting policies, net of tax (1,309) 40 (1,269) Balances at January 1, 2010, as adjusted $ 3 $2,445 $ 1,805 $ 422 $ 4,675 Comprehensive income: Net income 689 689 Other comprehensive income, net of tax 338 338 Total comprehensive income 1,027 Tax adjustment on share-based incentive compensation plan 1 1 Cash dividends to Ameriprise Financial, Inc. (500) (500) Non-cash capital contribution from Ameriprise Financial, Inc. 14 14 Balances at December 31, 2010 3 2,460 1,994 760 5,217 Comprehensive income: Net income 821 821 Other comprehensive income, net of tax 171 171 Total comprehensive income 992 Tax adjustment on share-based incentive compensation plan 1 1 Cash dividends to Ameriprise Financial, Inc. (750) (750) Non-cash dividend to Ameriprise Financial, Inc. (850) (850) Balances at December 31, 2011 3 2,461 1,215 931 4,610 Comprehensive income: Net income 650 650 Other comprehensive income, net of tax 303 303 Total comprehensive income 953 Tax adjustment on share-based incentive compensation plan 1 1 Cash dividends to Ameriprise Financial, Inc. (865) (865) Balances at December 31, 2012 $ 3 $2,462 $ 1,000 $1,234 $ 4,699 See Notes to Consolidated Financial Statements. F-6

RiverSource Life Insurance Company CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) Years Ended December 31, 2012 2011 2010 Cash Flows from Operating Activities Net income $ 650 $ 821 $ 689 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and accretion, net (16) (73) (79) Deferred income tax expense (benefit) (40) 50 359 Contractholder and policyholder charges, non-cash (273) (264) (259) Loss from equity method investments 26 33 19 Net realized investment gains (14) (26) (46) Other-than-temporary impairments and provision for loan losses recognized in net realized investment gains 17 21 29 Change in operating assets and liabilities: Deferred acquisition costs (28) 54 (242) Deferred sales inducement costs 51 72 (38) Other investments, net 25 10 Future policy benefits for traditional life, disability income and long term care insurance 238 253 302 Policy claims and other policyholders funds 11 (13) 11 Reinsurance recoverables (107) (127) (143) Other receivables (35) 25 (53) Accrued investment income 16 2 (6) Derivatives collateral, net (432) 649 55 Other, net 623 191 271 Net cash provided by operating activities 712 1,668 879 Cash Flows from Investing Activities Available-for-Sale securities: Proceeds from sales 156 664 1,268 Maturities, sinking fund payments and calls 3,292 3,200 3,719 Purchases (2,271) (4,084) (4,970) Proceeds from sales, maturities and repayments of mortgage loans 310 202 207 Funding of mortgage loans (277) (207) (154) Purchase of residential mortgage loans from affiliate (954) Proceeds from sales of other investments 117 114 95 Purchase of other investments (286) (296) (86) Purchase of land, buildings, equipment and software (8) (6) (15) Change in policy loans, net (13) (10) (14) Net cash provided by (used in) investing activities 66 (423) 50 Cash Flows from Financing Activities Policyholder and contractholder account values: Considerations received 1,406 1,378 1,593 Net transfers from (to) separate accounts (30) 39 (1,337) Surrenders and other benefits (1,271) (1,311) (1,338) Change in borrowings under repurchase agreements, net (5) 107 397 Proceeds from line of credit with Ameriprise Financial, Inc. 418 415 13 Payments on line of credit with Ameriprise Financial, Inc. (568) (118) (310) Deferred premium options, net (356) (254) (182) Tax adjustment on share-based incentive compensation plan 1 1 Cash dividend to Ameriprise Financial, Inc. (865) (750) (500) Net cash used in financing activities (1,270) (493) (1,664) Net increase (decrease) in cash and cash equivalents (492) 752 (735) Cash and cash equivalents at beginning of period 828 76 811 Cash and cash equivalents at end of period $ 336 $ 828 $ 76 Supplemental Disclosures: Income taxes paid, net $ 109 $ 176 $ 112 Interest paid on borrowings 4 5 3 Non-cash investing activity: Capital contributions from Ameriprise Financial, Inc. $ $ $ 14 Dividend to Ameriprise Financial, Inc. 850 Affordable housing partnership commitments not yet remitted 13 137 171 See Notes to Consolidated Financial Statements. F-7

RiverSource Life Insurance Company NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION RiverSource Life Insurance Company is a stock life insurance company with one wholly owned stock life insurance company subsidiary, RiverSource Life Insurance Co. of New York ( RiverSource Life of NY ). RiverSource Life Insurance Company is a wholly owned subsidiary of Ameriprise Financial, Inc. ( Ameriprise Financial ). RiverSource Life Insurance Company is domiciled in Minnesota and holds Certificates of Authority in American Samoa, the District of Columbia and all states except New York. RiverSource Life Insurance Company issues insurance and annuity products. RiverSource Life of NY is domiciled and holds a Certificate of Authority in New York. RiverSource Life of NY issues insurance and annuity products. RiverSource Life Insurance Company also wholly owns RiverSource Tax Advantaged Investments, Inc. ( RTA ). RTA is a stock company domiciled in Delaware and is a limited partner in affordable housing partnership investments. The accompanying Consolidated Financial Statements include the accounts of RiverSource Life Insurance Company and companies in which it directly or indirectly has a controlling financial interest (collectively, the Company ). All intercompany transactions and balances have been eliminated in consolidation. The accompanying Consolidated Financial Statements are prepared in accordance with U.S. generally accepted accounting principles ( GAAP ) which vary in certain respects from reporting practices prescribed or permitted by state insurance regulatory authorities as described in Note 15. Certain reclassifications of prior period amounts have been made to conform to the current presentation. In the fourth quarter of 2012, the Company made an adjustment to the model which values the reserves related to living benefit guarantees primarily attributable to prior periods, which resulted in a $41 million pretax benefit, net of deferred acquisition costs ( DAC ) and deferred sales inducement costs ( DSIC ) amortization of $11 million. In the second quarter of 2012, the Company made a correction for a tax item related to securities lending activities primarily attributable to prior periods, which resulted in a $32 million increase to tax expense. Management has determined that the effect of these corrections is not material to all current and previously issued financial statements. The Company evaluated events or transactions that may have occurred after the balance sheet date for potential recognition or disclosure through the date the financial statements were issued. On January 1, 2012, the Company retrospectively adopted the new accounting standard for DAC for insurance and annuity products. See Note 2 and Note 3 for further information on the new accounting standard and the resulting changes in the Company s accounting policies on the deferral of acquisition costs. F-8

RiverSource Life Insurance Company The following tables present the effect of the change on affected financial statement line items for prior periods retrospectively adjusted. (in millions) Previously Reported December 31, 2011 Effect of Change As Adjusted Balance Sheets Assets Deferred income taxes, net $ $ 60 $ 60 Deferred acquisition costs 4,367 (1,954) 2,413 Total assets 105,380 (1,894) 103,486 Liabilities and Shareholder s Equity Liabilities: Future policy benefits 31,182 (13) 31,169 Deferred income taxes, net 620 (620) Other liabilities 3,607 1 3,608 Total liabilities 99,508 (632) 98,876 Shareholder s equity: Retained earnings 2,589 (1,374) 1,215 Accumulated other comprehensive income, net of tax 819 112 931 Total shareholder s equity 5,872 (1,262) 4,610 Total liabilities and shareholder s equity 105,380 (1,894) 103,486 (in millions) Previously Reported December 31, 2010 January 1, 2010 Effect of Change As Adjusted Previously Reported Effect of Change As Adjusted Statements of Shareholder s Equity Retained earnings $3,410 $(1,416) $1,994 $3,114 $(1,309) $1,805 Accumulated other comprehensive income, net of tax 675 85 760 382 40 422 Total shareholder s equity 6,548 (1,331) 5,217 5,944 (1,269) 4,675 (in millions) Previously Reported Year Ended December 31, 2011 Year Ended December 31, 2010 Effect of Change As Adjusted Previously Reported Effect of Change As Adjusted Statements of Income Revenues Total revenues $3,934 $ $3,934 $3,795 $ $3,795 Benefits and expenses Benefits, claims, losses and settlement expenses 950 950 1,203 1,203 Interest credited to fixed accounts 853 3 856 909 909 Amortization of deferred acquisition costs 539 (203) 336 53 53 Other insurance and operating expenses 645 136 781 582 164 746 Total benefits and expenses 2,987 (64) 2,923 2,747 164 2,911 Pretax income 947 64 1,011 1,048 (164) 884 Income tax provision 168 22 190 252 (57) 195 Net income $ 779 $ 42 $ 821 $ 796 $(107) $ 689 The Company s principal products are variable deferred annuities and variable universal life insurance which are issued primarily to individuals. It also offers fixed annuities where assets accumulate until the contract is surrendered, the contractholder (or in some contracts, the annuitant) dies, or the contractholder or annuitant begins receiving benefits under an annuity payout option. It also offers immediate annuities in which payments begin within one year of issue and continue for life or for a fixed period of time. The Company s fixed deferred annuities guarantee a relatively low annual interest rate during the accumulation period (the time before annuity payments begin). However, the Company has the option of paying a higher rate set at its discretion. In addition, persons owning an equity indexed annuity ( EIA ) may have their interest calculated based on an increase in a broad-based stock market index. The Company issues both variable and fixed universal life insurance, traditional life insurance and disability income ( DI ) insurance. Universal life insurance is a form of permanent life insurance characterized by flexible premiums, flexible death benefit amounts and unbundled pricing factors (i.e., mortality, interest and expenses). Traditional life insurance refers to whole and term life insurance policies that pay a specified sum to a beneficiary upon death of the insured for a fixed premium. Variable universal life insurance combines the premium and death benefit flexibility of universal life with underlying fund investment flexibility and the risks associated therewith. Waiver of premium and accidental death benefit riders are generally F-9

RiverSource Life Insurance Company available with these life insurance products. In 2011, the Company began offering indexed universal life ( IUL ) insurance. IUL is similar to universal life insurance in that it provides life insurance coverage and cash value that increases as a result of credited interest. Also, like universal life insurance, there is a minimum guaranteed credited rate of interest. Unlike universal life insurance, the rate of credited interest above the minimum guarantee for funds allocated to the indexed account is linked to the S&P 500 Index (subject to a cap). The policyholder may allocate all or a portion of the policy value to a fixed or indexed account. The Company issues only non-participating life insurance policies which do not pay dividends to policyholders from realized policy margins. Under the Company s variable life insurance and variable annuity products described above, the purchaser may choose a fixed account option that is part of the Company s general account, as well as investment options from a variety of portfolios that include common stocks, bonds, managed assets and/or short-term securities. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Company consolidates entities in which it holds a greater than 50% voting interest, or when certain conditions are met for variable interest entities ( VIEs ) and limited partnerships. Entities in which the Company exercises significant influence or holds a greater than 20% but less than 50% voting interest are accounted for under the equity method. All other investments that are not reported at fair value as trading or Available-for-Sale securities are accounted for under the cost method where the Company owns less than a 20% voting interest and does not exercise significant influence. A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest (including substantive voting rights, the obligation to absorb the entity s losses, or the rights to receive the entity s returns) or has equity investors that do not provide sufficient financial resources for the entity to support its activities. A VIE is required to be assessed for consolidation under two models: If the VIE is a money market fund or is an investment company, or has the financial characteristics of an investment company, and the following is true: (i) the entity does not have an explicit or implicit obligation to fund the investment company s losses; and (ii) the investment company is not a securitization entity, asset backed financing entity, or an entity formally considered a qualifying special purpose entity, then, the VIE will be consolidated by the entity that determines it stands to absorb a majority of the VIE s expected losses or to receive a majority of the VIE s expected residual returns. Examples of entities that are likely to be assessed for consolidation under this framework include hedge funds, property funds, private equity funds and venture capital funds. If the VIE does not meet the criteria above, the VIE will be consolidated by the entity that determines it has both: (i) the power to direct the activities of the VIE that most significantly impact the VIE s economic performance; and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. When determining whether the Company stands to absorb the majority of a VIE s expected losses or receive a majority of a VIE s expected returns, it analyzes the design of the VIE to identify the variable interests it holds. Then the Company quantitatively determines whether its variable interests will absorb a majority of the VIE s variability. If the Company determines it has control over the activities that most significantly impact the economic performance of the VIE and it will absorb a majority of the VIE s expected variability, the Company consolidates the VIE. The calculation of variability is based on an analysis of projected probability-weighted cash flows based on the design of the particular VIE. When determining whether the Company has the power and the obligation to absorb losses or rights to receive benefits from the VIE that could potentially be significant, the Company qualitatively determines if its variable interests meet these criteria. If the Company consolidates a VIE under either scenario, it is referred to as the VIE s primary beneficiary. Amounts Based on Estimates and Assumptions Accounting estimates are an integral part of the Consolidated Financial Statements. In part, they are based upon assumptions concerning future events. Among the more significant are those that relate to investment securities valuation and recognition of other-than-temporary impairments, DAC and the corresponding recognition of DAC amortization, derivative instruments and hedging activities, claims reserves and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ. F-10

RiverSource Life Insurance Company Investments Available-for-Sale Securities Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income, net of impacts to DAC, DSIC, certain benefit reserves and income taxes. Gains and losses are recognized in the Consolidated Statements of Income upon disposition of the securities. When the fair value of an investment is less than its amortized cost, the Company assesses whether or not: (i) it has the intent to sell the security (made a decision to sell) or (ii) it is more likely than not that the Company will be required to sell the security before its anticipated recovery. If either of these conditions is met, an other-than-temporary impairment is considered to have occurred and the Company must recognize an other-than-temporary impairment for the difference between the investment s amortized cost basis and its fair value through earnings. For securities that do not meet the above criteria and the Company does not expect to recover a security s amortized cost basis, the security is also considered other-than-temporarily impaired. For these securities, the Company separates the total impairment into the credit loss component and the amount of the loss related to other factors. The amount of the total other-than-temporary impairment related to credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to other factors is recognized in other comprehensive income, net of impacts to DAC, DSIC, certain benefit reserves and income taxes. For Available-for-Sale securities that have recognized an other-than-temporary impairment through earnings, the difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income, if through subsequent evaluation there is a sustained increase in the cash flow expected. Subsequent increases and decreases in the fair value of Available-for-Sale securities are included in other comprehensive income. The Company provides a supplemental disclosure on the face of its Consolidated Statements of Income that presents: (i) total other-than-temporary impairment losses recognized during the period and (ii) the portion of other-than-temporary impairment losses recognized in other comprehensive income. The sum of these amounts represents the credit-related portion of otherthan-temporary impairments that were recognized in earnings during the period. The portion of other-than-temporary losses recognized in other comprehensive income includes: (i) the portion of other-than-temporary impairment losses related to factors other than credit recognized during the period and (ii) reclassifications of other-than-temporary impairment losses previously determined to be related to factors other than credit that are determined to be credit-related in the current period. The amount presented on the Consolidated Statements of Income as the portion of other-than-temporary losses recognized in other comprehensive income excludes subsequent increases and decreases in the fair value of these securities. For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired. Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are other-thantemporary include: (i) the extent to which the market value is below amortized cost; (ii) the duration of time in which there has been a significant decline in value; (iii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iv) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors. In order to determine the amount of the credit loss component for corporate debt securities considered other-than-temporarily impaired, a best estimate of the present value of cash flows expected to be collected discounted at the security s effective interest rate is compared to the amortized cost basis of the security. The significant inputs to cash flow projections consider potential debt restructuring terms, projected cash flows available to pay creditors and the Company s position in the debtor s overall capital structure. For structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers factors such as overall deal structure and its position within the structure, quality of underlying collateral, delinquencies and defaults, loss severities, recoveries, prepayments and cumulative loss projections in assessing potential other-than-temporary impairments of these investments. Based upon these factors, securities that have indicators of potential other-than-temporary impairment are subject to detailed review by management. Securities for which declines are considered temporary continue to be carefully monitored by management. Mortgage Loans, net Mortgage loans, net reflect the Company s interest in commercial and residential mortgage loans, less the related allowance for loan losses. F-11

RiverSource Life Insurance Company Policy Loans Policy loans include life insurance policy and annuity loans and are reported at the unpaid principal balance, plus accrued interest. Other Investments Other investments primarily reflect the Company s interests in affordable housing partnerships and syndicated loans which represent investments in below investment grade loan syndications. Affordable housing partnerships are accounted for under the equity method. Financing Receivables Mortgage Loans and Syndicated Loans Mortgage loans and syndicated loans are stated at amortized cost, net of allowances for loan losses, if any. In October 2012, the Company purchased residential mortgage loans from an affiliate, Ameriprise Bank, FSB. These loans were purchased at fair value. The purchase price takes into account the credit quality of the loan portfolio, resulting in no allowance for loan losses recorded at the acquisition date. Interest income is accrued on the unpaid principal balances of the loans as earned. Policy Loans When originated, policy loan balances do not exceed the cash surrender value of the underlying products. As there is minimal risk of loss related to these loans, the Company does not record an allowance for loan losses for policy loans. Nonaccrual Loans Generally, loans are evaluated for or placed on nonaccrual status when either the collection of interest or principal has become 90 days past due or is otherwise considered doubtful of collection. When a loan is placed on nonaccrual status, unpaid accrued interest is reversed. Interest payments received on loans on nonaccrual status are generally applied to principal or in accordance with the loan agreement unless the remaining principal balance has been determined to be fully collectible. Commercial mortgage loans are evaluated for impairment when the loan is considered for nonaccrual status, restructured or foreclosure proceedings are initiated on the property. If it is determined that the fair value is less than the current loan balance, it is written down to fair value less estimated selling costs. Residential mortgage loans are charged off when management determines the assets are uncollectible and commences foreclosure proceedings on the property, at which time the property is written down to fair value less selling costs. Foreclosed property is recorded as real estate owned in other investments. Syndicated loans are placed on nonaccrual status when management determines it will not collect all contractual principal and interest on the loan. Allowance for Loan Losses Management determines the adequacy of the allowance for loan losses by portfolio based on the overall loan portfolio composition, recent and historical loss experience, and other pertinent factors, including when applicable, internal risk ratings, loan-to-value ( LTV ) ratios, FICO scores of the borrower and occupancy rates, along with economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. The Company determines the amount of the allowance required for certain sectors based on management s assessment of relative risk characteristics of the loan portfolio. The allowance is recorded for homogeneous loan categories on a pool basis, based on an analysis of product mix and risk characteristics of the portfolio, including geographic concentration, bankruptcy experiences, and historical losses, adjusted for current trends and market conditions. While the Company attributes portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses inherent in the total loan portfolio. The allowance is increased through provisions charged to net realized investment gains (losses) and reduced/increased by net charge-offs/recoveries. Impaired Loans The Company considers a loan to be impaired when, based on current information and events, it is probable the Company will not be able to collect all amounts due (both interest and principal) according to the contractual terms of the loan agreement. Impaired loans may also include loans that have been modified in troubled debt restructurings as a concession to borrowers experiencing financial difficulties. Management evaluates for impairment all restructured loans and loans with higher impairment risk factors. Factors used by the Company to determine whether all amounts due on commercial mortgage loans will be collected, include but are not limited to, the financial condition of the borrower, performance of the underlying properties, collateral and/or guarantees on the loan, and the borrower s estimated future ability to pay based on property type and geographic location. The evaluation of impairment on residential mortgage loans is primarily driven by delinquency status F-12

RiverSource Life Insurance Company of individual loans. The impairment recognized is measured as the excess of the loan s recorded investment over: (i) the present value of its expected principal and interest payments discounted at the loan s effective interest rate, (ii) the fair value of collateral or (iii) the loan s observable market price. Restructured Loans A loan is classified as a restructured loan when the Company makes certain concessionary modifications to contractual terms for borrowers experiencing financial difficulties. When the interest rate, minimum payments, and/or due dates have been modified in an attempt to make the loan more affordable to a borrower experiencing financial difficulties, the modification is considered a troubled debt restructuring. Generally, performance prior to the restructuring or significant events that coincide with the restructuring are considered in assessing whether the borrower can meet the new terms which may result in the loan being returned to accrual status at the time of the restructuring or after a performance period. If the borrower s ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. Cash and Cash Equivalents Cash equivalents include highly liquid investments with original maturities of 90 days or less. Restricted Cash Total restricted cash at December 31, 2012 and 2011 was $86 million and $26 million, respectively, consisting of cash that has been pledged to counterparties. Reinsurance The Company cedes significant amounts of insurance risk to other insurers under reinsurance agreements. Reinsurance premiums paid and benefits received are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Reinsurance premiums for traditional life, long term care ( LTC ) and DI ceded on a coinsurance basis, net of the change in any prepaid reinsurance asset, are reported as a reduction of premiums. Fixed and variable universal life reinsurance premiums are reported as a reduction of policy and contract charges. In addition, for fixed and variable universal life insurance policies, the net cost of reinsurance ceded, which represents the discounted amount of the expected cash flows between the reinsurer and the Company, is recognized as an asset and amortized over the term of the reinsurance contract, in proportion to the estimated gross profits and is subject to retrospective adjustment in a manner similar to retrospective adjustment of DAC. The assumptions used to project the expected cash flows are consistent with those used for DAC asset valuation for the same contracts. Changes in the net cost of reinsurance are reflected as a component of policy and contract charges. Reinsurance recoveries are reported as components of benefits, claims, losses and settlement expenses. Insurance liabilities are reported before the effects of reinsurance. Future policy benefits and policy claims and other policyholders funds recoverable under reinsurance contracts are recorded as reinsurance recoverables. The Company also assumes life insurance and fixed annuity risk from other insurers in limited circumstances. Reinsurance premiums received and benefits paid are accounted for consistently with the basis used in accounting for the policies from which risk is reinsured and consistently with the terms of the reinsurance contracts. Liabilities for assumed business are recorded within future policy benefits. See Note 8 for additional information on reinsurance. Land, Buildings, Equipment and Software Land, buildings, equipment and internally developed or purchased software are carried at cost less accumulated depreciation or amortization and are reflected within other assets. The Company generally uses the straight-line method of depreciation and amortization over periods ranging from three to 30 years. At December 31, 2012 and 2011, land, buildings, equipment and software were $174 million and $182 million, respectively, net of accumulated depreciation of $91 million and $75 million, respectively. Depreciation and amortization expense for the years ended December 31, 2012, 2011 and 2010 was $17 million, $16 million and $14 million, respectively. Derivative Instruments and Hedging Activities Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company s policy is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. The accounting for changes in the fair value of a derivative instrument depends on its intended use and the resulting hedge designation, if any. The Company primarily uses derivatives as economic hedges that are not designated as accounting hedges or do not qualify for hedge accounting treatment. The Company occasionally designates derivatives as (i) hedges of changes in the fair value of assets, liabilities, or firm F-13

RiverSource Life Insurance Company commitments ( fair value hedges ) or (ii) hedges of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ( cash flow hedges ). Derivative instruments that are entered into for hedging purposes are designated as such at the time the Company enters into the contract. For all derivative instruments that are designated for hedging activities, the Company formally documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also formally documents its risk management objectives and strategies for entering into the hedge transactions. The Company formally assesses, at inception and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of hedged items. If it is determined that a derivative is no longer highly effective as a hedge, the Company will discontinue the application of hedge accounting. For derivative instruments that do not qualify for hedge accounting or are not designated as accounting hedges, changes in fair value are recognized in current period earnings. Changes in fair value of derivatives are presented in the Consolidated Statements of Income based on the nature and use of the instrument. Changes in fair value of derivatives used as economic hedges are presented in the Consolidated Statements of Income with the corresponding change in the hedged asset or liability. For derivative instruments that qualify as fair value hedges, changes in the fair value of the derivatives, as well as changes in the fair value of the hedged assets, liabilities or firm commitments, are recognized on a net basis in current period earnings. The carrying value of the hedged item is adjusted for the change in fair value from the designated hedged risk. If a fair value hedge designation is removed or the hedge is terminated prior to maturity, previous adjustments to the carrying value of the hedged item are recognized into earnings over the remaining life of the hedged item. For derivative instruments that qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is reported in accumulated other comprehensive income and reclassified into earnings when the hedged item or transaction impacts earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income with the hedged instrument or transaction impact. Any ineffective portion of the gain or loss is reported in current period earnings as a component of net investment income. If a hedge designation is removed or a hedge is terminated prior to maturity, the amount previously recorded in accumulated other comprehensive income is reclassified to earnings over the period that the hedged item impacts earnings. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur according to the original strategy, any related amounts previously recorded in accumulated other comprehensive income are recognized in earnings immediately. The equity components of EIA and IUL obligations are considered an embedded derivative. Additionally, certain annuities contain guaranteed minimum accumulation benefit ( GMAB ) and guaranteed minimum withdrawal benefit ( GMWB ) provisions. The GMAB and the non-life contingent benefits associated with GMWB provisions are also considered embedded derivatives. See Note 13 for information regarding the Company s fair value measurement of derivative instruments and Note 16 for the impact of derivatives on the Consolidated Statements of Income. Deferred Acquisition Costs The Company incurs costs in connection with acquiring new and renewal insurance and annuity businesses. The portion of these costs which are incremental and direct to the acquisition of a new or renewal insurance policy or annuity contract are deferred. Significant costs capitalized by the Company include sales based compensation related to the acquisition of new and renewal insurance policies and annuity contracts, medical inspection costs for successful sales, and a portion of employee compensation and benefit costs based upon the amount of time spent on successful sales. Sales based compensation paid to Ameriprise Financial Services, Inc. ( AFSI ), a subsidiary of Ameriprise Financial, advisors and employees and third-party distributers is capitalized. Employee compensation and benefits costs which are capitalized relate primarily to sales efforts, underwriting and processing. All other costs which are not incremental direct costs of acquiring an insurance policy or annuity contract are expensed as incurred. The DAC associated with insurance policies or annuity contracts that are significantly modified or internally replaced with another contract are accounted for as contract terminations. These transactions are anticipated in establishing amortization periods and other valuation assumptions. Costs deferred as DAC are amortized over time. For annuity and universal life ( UL ) contracts, DAC are amortized based on projections of estimated gross profits over amortization periods equal to the approximate life of the business. For other insurance products, DAC are generally amortized as a percentage of premiums over amortization periods equal to the premium-paying period. For annuity and UL insurance products, the assumptions made in projecting future results and calculating the DAC balance and DAC amortization expense are management s best estimates. Management is required to update these assumptions whenever it appears that, based on actual experience or other evidence, earlier estimates should be revised. When assumptions are changed, the percentage of estimated gross profits used to amortize DAC might also change. A change in the required F-14

RiverSource Life Insurance Company 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 traditional life, DI and LTC insurance products, the assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities and, therefore, are intended to provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC are not recoverable. If management concludes that DAC are not recoverable, DAC are reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in the Consolidated Statements of Income. For annuity, life, DI and LTC insurance products, key assumptions underlying those long-term projections include interest rates (both earning rates on invested assets and rates credited to contractholder and policyholder accounts), equity market performance, mortality and morbidity rates and the rates at which policyholders are expected to surrender their contracts, make withdrawals from their contracts and make additional deposits to their contracts. Assumptions about earned and credited interest rates are the primary factors used to project interest margins, while assumptions about equity and bond market performance are the primary factors used to project client asset value growth rates, and assumptions about surrenders, withdrawals and deposits comprise projected persistency rates. Management must also make assumptions to project maintenance expenses associated with servicing its annuity and insurance businesses during the DAC amortization period. The client asset value growth rates are the rates at which variable annuity and variable universal life ( VUL ) insurance contract values invested in separate accounts are assumed to appreciate in the future. The rates used vary by equity and fixed income investments. Management reviews and, where appropriate, adjusts its assumptions with respect to client asset value growth rates on a regular basis. The Company typically uses a five-year mean reversion process as a guideline in setting nearterm equity fund growth rates based on a long-term view of financial market performance as well as recent actual performance. The suggested near-term equity fund growth rate is reviewed quarterly to ensure consistency with management s assessment of anticipated equity market performance. DAC amortization expense recorded in a period when client asset value growth rates exceed management s near-term estimate will typically be less than in a period when growth rates fall short of management s near-term estimate. The Company monitors other principal DAC amortization assumptions, such as persistency, mortality, morbidity, interest margin and maintenance expense levels each quarter and, when assessed independently, each could impact the Company s DAC balances. The analysis of DAC balances and the corresponding amortization is a dynamic process that considers all relevant factors and assumptions described previously. Unless the Company s management identifies a significant deviation over the course of the quarterly monitoring, management reviews and updates these DAC amortization assumptions annually in the third quarter of each year. Deferred Sales Inducement Costs Sales inducement costs consist of bonus interest credits and premium credits added to certain annuity contract and insurance policy values. These benefits are capitalized to the extent they are incremental to amounts that would be credited on similar contracts without the applicable feature. The amounts capitalized are amortized using the same methodology and assumptions used to amortize DAC. The amortization of DSIC is recorded in benefits, claims, losses and settlement expenses. Separate Account Assets and Liabilities Separate account assets and liabilities are primarily funds held for the exclusive benefit of variable annuity contractholders and variable life insurance policyholders, who assume the related investment risk. Income and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company s Consolidated Statements of Income. Separate account assets are recorded at fair value. Changes in the fair value of separate account assets are offset by changes in the related separate account liabilities. The Company receives mortality and expense risk and other fees, guarantee fees and cost of insurance charges from the related accounts. Future Policy Benefits and Policy Claims and Other Policyholders Funds Fixed Annuities and Variable Annuity Guarantees Future policy benefits and policy claims and other policyholders funds related to fixed annuities and variable annuity guarantees include liabilities for fixed account values on fixed and variable deferred annuities, guaranteed benefits associated with variable annuities, EIAs and fixed annuities in a payout status. Liabilities for fixed account values on fixed and variable deferred annuities are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. F-15

RiverSource Life Insurance Company The majority of the variable annuity contracts offered by the Company contain guaranteed minimum death benefit ( GMDB ) provisions. When market values of the customer s accounts decline, the death benefit payable on a contract with a GMDB may exceed the contract accumulation value. The Company also offers variable annuities with death benefit provisions that gross up the amount payable by a certain percentage of contract earnings, which are referred to as gain gross-up ( GGU ) benefits. In addition, the Company offers contracts containing GMWB and GMAB provisions, and until May 2007, the Company offered contracts containing guaranteed minimum income benefit ( GMIB ) provisions. In determining the liabilities for GMDB, GMIB and the life contingent benefits associated with GMWB, the Company projects these benefits and contract assessments using actuarial models to simulate various equity market scenarios. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC asset valuation for the same contracts. As with DAC, management reviews and, where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. The GMDB liability is determined by estimating the expected value of death benefits in excess of the projected contract accumulation value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g., mortality and expense fees, contractual administrative charges and similar fees). If elected by the contract owner and after a stipulated waiting period from contract issuance, a GMIB guarantees a minimum lifetime annuity payout based on a specified rate of contract accumulation value growth and predetermined annuity purchase rates. The GMIB liability is determined each period by estimating the expected value of annuitization benefits in excess of the projected contract accumulation value at the date of annuitization and recognizing the excess over the estimated meaningful life based on expected assessments. The embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions are recorded at fair value. See Note 13 for information regarding the fair value measurement of embedded derivatives. The liability for the life contingent benefits associated with GMWB provisions is determined in the same way as the GMDB liability. Significant assumptions made in projecting future benefits and fees relate to persistency and benefit utilization. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. The changes in both the fair values of the GMWB and GMAB embedded derivatives and the liability for life contingent benefits are reflected in benefits, claims, losses and settlement expenses. Liabilities for EIAs are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates. Life, Disability Income and Long Term Care Insurance Future policy benefits and policy claims and other policyholders funds related to life, DI and LTC insurance include liabilities for fixed account values on fixed and variable universal life policies, liabilities for indexed accounts of IUL products, liabilities for unpaid amounts on reported claims, estimates of benefits payable on claims incurred but not yet reported and estimates of benefits that will become payable on term life, whole life, DI and LTC policies as claims are incurred in the future. Liabilities for fixed account values on fixed and variable universal life insurance are equal to accumulation values. Accumulation values are the cumulative gross deposits and credited interest less various contractual expense and mortality charges and less amounts withdrawn by policyholders. Liabilities for indexed accounts of IUL products are equal to the accumulation of host contract values covering guaranteed benefits and the fair value of embedded equity options. A portion of the Company s fixed and variable universal life policies have product features that result in profits followed by losses from the insurance component of the contract. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the contract. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. In determining the liability for contracts with profits followed by losses, the Company projects benefits and contract assessments using actuarial models. Significant assumptions made in projecting future benefits and assessments relate to customer asset value growth rates, mortality, persistency and investment margins and are consistent with those used for DAC F-16

RiverSource Life Insurance Company asset valuation for the same contracts. As with DAC, management reviews, and where appropriate, adjusts its assumptions each quarter. Unless management identifies a material deviation over the course of quarterly monitoring, management reviews and updates these assumptions annually in the third quarter of each year. The liability for these future losses is determined by estimating the death benefits in excess of account value and recognizing the excess over the estimated meaningful life based on expected assessments (e.g. cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 9 for information regarding the liability for contracts with secondary guarantees. Liabilities for unpaid amounts on reported life insurance claims are equal to the death benefits payable under the policies. Liabilities for unpaid amounts on reported DI and LTC claims include any periodic or other benefit amounts due and accrued, along with estimates of the present value of obligations for continuing benefit payments. These amounts are calculated based on claim continuance tables which estimate the likelihood an individual will continue to be eligible for benefits. Present values are calculated at interest rates established when claims are incurred. Anticipated claim continuance rates are based on established industry tables, adjusted as appropriate for the Company s experience. Liabilities for estimated benefits payable on claims that have been incurred but not yet reported are based on periodic analysis of the actual time lag between when a claim occurs and when it is reported. Liabilities for estimates of benefits that will become payable on future claims on term life, whole life, DI and LTC policies are based on the net level premium method, using anticipated premium payments, mortality and morbidity rates, policy persistency and interest rates earned on assets supporting the liability. Anticipated mortality and morbidity rates are based on established industry mortality and morbidity tables, with modifications based on the Company s experience. Anticipated premium payments and persistency rates vary by policy form, issue age, policy duration and certain other pricing factors. Changes in future policy benefits and policy claims and other policyholders funds are reflected in earnings in the period adjustments are made. Where applicable, benefit amounts expected to be recoverable from reinsurance companies who share in the risk are separately recorded as reinsurance recoverables. Sources of Revenue The Company s principal sources of revenue include premiums, net investment income and policy and contract charges. Premiums Premiums include premiums on traditional life, DI and LTC insurance products and immediate annuities with a life contingent feature. Premiums are reported net of reinsurance ceded and are recognized as revenue when due. Net Investment Income Net investment income primarily includes interest income on fixed maturity securities classified as Available-for-Sale, commercial and residential mortgage loans, policy loans, other investments and cash and cash equivalents; the changes in fair value of certain derivatives; and the pro-rata share of net income or loss on equity method investments. Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale and on the residential mortgage loans so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. Policy and Contract Charges Policy and contract charges include mortality and expense risk fees and certain other charges assessed on annuities and fixed and variable universal life insurance, which consist of cost of insurance charges, net of reinsurance premiums and cost of reinsurance for universal life insurance products, and administrative and surrender charges. Mortality and expense risk fees include risk, management and administration fees, which are generated directly and indirectly from the Company s separate account assets. Cost of insurance charges on fixed and variable universal life insurance and contract charges and surrender charges on annuities and fixed and variable universal life insurance are recognized as revenue when collected. Net Realized Investment Gains (Losses) Net realized investment gains (losses) primarily include realized gains and losses on the sale of securities and charges for the other-than-temporary impairments of investments related to credit losses. Realized gains and losses on the sale of securities, other than equity method investments, are recognized using the specific identification method, on a trade date basis. Other Insurance and Operating Expenses Other insurance and operating expenses include expenses allocated to the Company from its parent, Ameriprise Financial, for the Company s share of compensation, professional and consultant fees and expenses associated with information technology F-17

RiverSource Life Insurance Company and communications, facilities and equipment, advertising and promotion and legal and regulatory costs. Also included are commissions, sales and marketing expenses and other operating expenses. These expenses are presented net of acquisition cost deferrals. Income Taxes The Company s taxable income is included in the consolidated federal income tax return of Ameriprise Financial. The Company provides for income taxes on a separate return basis, except that, under an agreement between Ameriprise Financial and the Company, tax benefits are recognized for losses to the extent they can be used in the consolidated return. It is the policy of Ameriprise Financial that it will reimburse its subsidiaries for any tax benefits recorded. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items. In connection with the provision for income taxes, the Consolidated Financial Statements reflect certain amounts related to deferred tax assets and liabilities, which result from temporary differences between the assets and liabilities measured for financial statement purposes versus the assets and liabilities measured for tax return purposes. Among the Company s deferred taxes is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes as well as future deductible capital losses realized for tax return purposes. Under current U.S. federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes. The Company is required to establish a valuation allowance for any portion of its deferred tax assets that management believes will not be realized. Significant judgment is required in determining if a valuation allowance should be established and the amount of such allowance if required. Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains. Consideration is given to, among other things in making this determination: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. Management may need to identify and implement appropriate planning strategies to ensure its ability to realize deferred tax assets and avoid the establishment of a valuation allowance with respect to such assets. In the opinion of management, it is currently more likely than not that the Company will not realize the full benefit of certain state net operating losses and therefore a valuation allowance of $5 million has been established at December 31, 2012. 3. RECENT ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards Comprehensive Income In June 2011, the Financial Accounting Standards Board ( FASB ) updated the accounting standards related to the presentation of comprehensive income. The standard requires entities to present all nonowner changes in stockholders equity either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The standard is effective for interim and annual periods beginning after December 15, 2011. The Company retrospectively adopted the standard in the first quarter of 2012. The adoption of the standard did not impact the Company s consolidated financial condition and results of operations. See the Company s Consolidated Statements of Comprehensive Income for the newly required statements. Fair Value In May 2011, the FASB updated the accounting standards related to fair value measurement and disclosure requirements. The standard requires entities, for assets and liabilities measured at fair value in the statement of financial position which are Level 3 fair value measurements, to disclose quantitative information about unobservable inputs and assumptions used in the measurements, a description of the valuation processes in place, and a qualitative discussion about the sensitivity of the measurements to changes in unobservable inputs and interrelationships between those inputs if a change in those inputs would result in a significantly different fair value measurement. In addition, the standard requires disclosure of fair value by level within the fair value hierarchy for each class of assets and liabilities not measured at fair value in the statement of financial position but for which the fair value is disclosed. The standard is effective for interim and annual periods beginning on or after December 15, 2011. The Company adopted the standard in the first quarter of 2012. The adoption of the standard did not impact the Company s consolidated financial condition and results of operations. See Note 13 for the required disclosures. Transfers and Servicing: Reconsideration of Effective Control for Repurchase Agreements In April 2011, the FASB updated the accounting standards related to accounting for repurchase agreements and other similar agreements. The standard modifies the criteria for determining when these transactions would be accounted for as secured borrowings as opposed to sales. The standard is effective prospectively for new transfers and existing transactions that are modified in the first interim or annual period beginning on or after December 15, 2011. The Company adopted the standard in F-18

RiverSource Life Insurance Company the first quarter of 2012. The adoption of the standard did not impact the Company s consolidated financial condition and results of operations. Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts In October 2010, the FASB updated the accounting standard for DAC. Under this new standard, only the following costs incurred in the acquisition of new and renewal insurance contracts are capitalizable as DAC: (i) incremental direct costs of a successful contract acquisition, (ii) portions of employees compensation and benefits directly related to time spent performing acquisition activities (that is, underwriting, policy issuance and processing, medical and inspection, and contract selling) for a contract that has been acquired, (iii) other costs related to acquisition activities that would not have been incurred had the acquisition of the contract not occurred, and (iv) advertising costs that meet the capitalization criteria in other GAAP guidance for certain direct-response marketing. All other acquisition related costs are expensed as incurred. The Company retrospectively adopted the new standard on January 1, 2012. See Note 1 for the effect of the change on affected financial statement line items for prior periods retrospectively adjusted and Note 2 for the Company s accounting policies on DAC. Receivables In April 2011, the FASB updated the accounting standards for troubled debt restructurings. The new standard includes indicators that a lender should consider in determining whether a borrower is experiencing financial difficulties and provides clarification for determining whether the lender has granted a concession to the borrower. The standard sets the effective dates for troubled debt restructuring disclosures required by recent guidance on credit quality disclosures. The standard is effective for interim and annual periods beginning on or after June 15, 2011, and is to be applied retrospectively to modifications occurring on or after the beginning of the annual period of adoption. For purposes of measuring impairments of receivables that are considered impaired as a result of applying the new guidance, the standard should be applied prospectively for the interim or annual period beginning on or after June 15, 2011. The Company adopted the standard in the third quarter of 2011. The adoption did not have any effect on the Company s consolidated financial condition and results of operations. See Note 6 for the required disclosures. Fair Value In January 2010, the FASB updated the accounting standards related to disclosures on fair value measurements. The standard expands the current disclosure requirements to include additional detail about significant transfers between Levels 1 and 2 within the fair value hierarchy and presents activity in the rollforward of Level 3 activity on a gross basis. The standard also clarifies existing disclosure requirements related to the level of disaggregation to be used for assets and liabilities as well as disclosures on the inputs and valuation techniques used to measure fair value. The standard is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosure requirements related to the Level 3 rollforward, which are effective for interim and annual periods beginning after December 15, 2010. The Company adopted the standard in the first quarter of 2010, except for the additional disclosures related to the Level 3 rollforward, which the Company adopted in the first quarter of 2011. The adoption did not impact the Company s consolidated financial condition and results of operations. See Note 13 for the required disclosures. Consolidation of Variable Interest Entities In June 2009, the FASB updated the accounting standards related to the consolidation of VIEs. The standard amends the guidance on the determination of the primary beneficiary of a VIE from a quantitative model to a qualitative model and requires additional disclosures about an enterprise s involvement in VIEs. Under the new qualitative model, the primary beneficiary must have both the power to direct the activities of the VIE and the obligation to absorb losses or the right to receive gains that could be potentially significant to the VIE. In February 2010, the FASB amended this guidance to defer application of the consolidation requirements for certain investment funds. The standards are effective for interim and annual reporting periods beginning after November 15, 2009. The Company adopted the standard effective January 1, 2010 which did not impact its consolidated financial condition and results of operations. Future Adoption of New Accounting Standards Comprehensive Income In February 2013, the FASB updated the accounting standard related to comprehensive income. The update requires entities to provide information about significant amounts reclassified out of accumulated other comprehensive income. The standard is effective for interim and annual periods beginning after December 15, 2012 and is required to be applied prospectively. The adoption of the standard will not impact the Company s consolidated results of operations and financial condition. Balance Sheet In December 2011, the FASB updated the accounting standards to require new disclosures about offsetting assets and liabilities. The standard requires an entity to disclose both gross and net information about certain financial instruments and F-19

RiverSource Life Insurance Company transactions subject to master netting arrangements (or similar agreements) or eligible for offset in the statement of financial position. The standard is effective for interim and annual periods beginning on or after January 1, 2013 on a retrospective basis. The adoption of the standard is not expected to impact the Company s consolidated financial condition and results of operations. 4. VARIABLE INTEREST ENTITIES RTA, a subsidiary of RiverSource Life Insurance Company, has variable interests in affordable housing partnerships for which it is not the primary beneficiary and, therefore, does not consolidate. RTA s maximum exposure to loss as a result of its investments in the affordable housing partnerships is limited to the carrying values of these investments. The carrying values are reflected in other investments and were $409 million and $384 million as of December 31, 2012 and 2011, respectively. RTA has no obligation to provide financial or other support to the affordable housing partnerships in addition to liabilities already recorded for future funding commitments nor has it provided any additional support to the affordable housing partnerships. The Company had liabilities of $144 million and $267 million recorded in other liabilities as of December 31, 2012 and 2011, respectively, related to the future funding commitments for affordable housing partnerships. 5. INVESTMENTS Available-for-Sale securities distributed by type were as follows: December 31, 2012 Description of Securities (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) Fixed maturities: Corporate debt securities $14,881 $2,167 $ (7) $17,041 $ Residential mortgage backed securities 3,446 233 (58) 3,621 (24) Commercial mortgage backed securities 2,717 287 3,004 State and municipal obligations 976 180 (34) 1,122 Asset backed securities 808 66 (3) 871 Foreign government bonds and obligations 188 36 224 U.S. government and agencies obligations 42 7 49 Total fixed maturities 23,058 2,976 (102) 25,932 (24) Common stocks 2 2 4 1 Total $23,060 $2,978 $(102) $25,936 $(23) December 31, 2011 Description of Securities (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Noncredit OTTI (1) Fixed maturities: Corporate debt securities $14,770 $1,726 $ (78) $16,418 $ Residential mortgage backed securities 4,264 242 (138) 4,368 (41) Commercial mortgage backed securities 3,355 276 3,631 State and municipal obligations 1,012 131 (47) 1,096 Asset backed securities 812 43 (6) 849 Foreign government bonds and obligations 126 19 (1) 144 U.S. government and agencies obligations 49 8 57 Other structured investments 10 4 14 4 Total fixed maturities 24,398 2,449 (270) 26,577 (37) Common stocks 1 1 2 Total $24,399 $2,450 $(270) $26,579 $(37) (1) Represents the amount of other-than-temporary impairment ( OTTI ) losses in accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities subsequent to the initial impairment measurement date. These amounts are included in gross unrealized gains and losses as of the end of the period. At December 31, 2012 and 2011, fixed maturity securities comprised approximately 84% and 87%, respectively, of the Company s total investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations ( NRSROs ), including Moody s Investors Service ( Moody s ), Standard & Poor s Ratings Services ( S&P ) and Fitch Ratings Ltd. ( Fitch ). The Company uses the median of available ratings from Moody s, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. At December 31, 2012 and F-20

RiverSource Life Insurance Company 2011, approximately $1.5 billion and $1.2 billion, respectively, of securities were internally rated by Columbia Management Investment Advisers, LLC using criteria similar to those used by NRSROs. A summary of fixed maturity securities by rating was as follows: Ratings (in millions, except percentages) Amortized Cost December 31, 2012 December 31, 2011 Fair Value Percent of Total Fair Value Amortized Cost Fair Value Percent of Total Fair Value AAA $ 5,680 $ 6,198 24% $ 7,276 $ 7,811 30% AA 1,102 1,273 5 1,161 1,291 5 A 4,262 4,849 19 4,148 4,578 17 BBB 10,409 12,019 46 10,211 11,446 43 Below investment grade 1,605 1,593 6 1,602 1,451 5 Total fixed maturities $23,058 $25,932 100% $24,398 $26,577 100% At December 31, 2012 and 2011, approximately 32% and 33%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity. The following tables provide information about Available-for-Sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position: (in millions, except December 31, 2012 number of securities) Less than 12 months 12 months or more Total Description of Securities Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Corporate debt securities 50 $477 $ (4) 6 $ 70 $ (3) 56 $ 547 $ (7) Residential mortgage backed securities 6 107 56 293 (58) 62 400 (58) State and municipal obligations 2 100 (34) 2 100 (34) Asset backed securities 1 10 5 86 (3) 6 96 (3) Total 57 $594 $ (4) 69 $549 $(98) 126 $1,143 $(102) (in millions, except December 31, 2011 number of securities) Less than 12 months 12 months or more Total Description of Securities Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Corporate debt securities 70 $1,004 $(37) 9 $257 $ (41) 79 $1,261 $ (78) Residential mortgage backed securities 31 344 (8) 63 336 (130) 94 680 (138) State and municipal obligations 2 87 (47) 2 87 (47) Asset backed securities 11 139 (3) 3 43 (3) 14 182 (6) Foreign government bonds and obligations 5 23 (1) 5 23 (1) Total 117 $1,510 $(49) 77 $723 $(221) 194 $2,233 $(270) As part of the Company s ongoing monitoring process, management determined that a majority of the gross unrealized losses on its Available-for-Sale securities are attributable to movement in credit spreads primarily related to non-agency residential mortgage backed securities purchased prior to 2008. The following table presents a rollforward of the cumulative amounts recognized in the Consolidated Statements of Income for other-than-temporary impairments related to credit losses on securities for which a portion of the securities total other-thantemporary impairments was recognized in other comprehensive income: Years Ended December 31, (in millions) 2012 2011 2010 Beginning balance $106 $108 $ 82 Credit losses for which an other-than-temporary impairment was not previously recognized 1 13 14 Credit losses for which an other-than-temporary impairment was previously recognized 16 11 12 Reductions for securities sold during the period (realized) (36) (26) Ending balance $ 87 $106 $108 F-21

RiverSource Life Insurance Company The change in net unrealized securities gains (losses) in other comprehensive income includes three components, net of tax: (i) unrealized gains (losses) that arose from changes in the market value of securities that were held during the period; (ii) (gains) losses that were previously unrealized, but have been recognized in current period net income due to sales of Available-for-Sale securities and due to the reclassification of noncredit other-than-temporary impairment losses to credit losses and (iii) other items primarily consisting of adjustments in asset and liability balances, such as DAC, DSIC, benefit reserves and reinsurance recoverables, to reflect the expected impact on their carrying values had the unrealized gains (losses) been realized as of the respective balance sheet dates. The following table presents a rollforward of the net unrealized securities gains on Available-for-Sale securities included in accumulated other comprehensive income: (in millions) Net Unrealized Securities Gains Deferred Income Tax Accumulated Other Comprehensive Income Related to Net Unrealized Securities Gains Balance at January 1, 2010 $ 638 $(222) $ 416 Cumulative effect of accounting change 62 (22) 40 (1) Net unrealized securities gains arising during the period (2) 794 (278) 516 Reclassification of net securities gains included in net income (20) 7 (13) Impact on DAC, DSIC, benefit reserves and reinsurance recoverables (259) 90 (169) Balance at December 31, 2010 1,215 (425) 790 (3) Net unrealized securities gains arising during the period (2) 560 (196) 364 Reclassification of net securities gains included in net income (5) 2 (3) Impact on DAC, DSIC, benefit reserves and reinsurance recoverables (299) 105 (194) Balance at December 31, 2011 1,471 (514) 957 (3) Net unrealized securities gains arising during the period (2) 694 (243) 451 Reclassification of net securities losses included in net income 2 (1) 1 Impact on DAC, DSIC, benefit reserves and reinsurance recoverables (237) 83 (154) Balance at December 31, 2012 $1,930 $(675) $1,255 (3) (1) (2) (3) The Company retrospectively adopted a new accounting standard on January 1, 2012 for DAC. See Note 1 and Note 3 for additional information on the adoption impact. Includes other-than-temporary impairment losses on Available-for-Sale securities related to factors other than credit that were recognized in other comprehensive income during the period. Includes $(15) million, $(20) million and $(13) million of noncredit related impairments on securities and net unrealized securities losses on previously impaired securities at December 31, 2012, 2011 and 2010, respectively. Net realized gains and losses on Available-for-Sale securities, determined using the specific identification method, recognized in net realized investment gains (losses) were as follows: Years Ended December 31, (in millions) 2012 2011 2010 Gross realized investment gains $ 16 $ 48 $ 51 Gross realized investment losses (1) (20) (4) Other-than-temporary impairments (17) (24) (28) Total $ (2) $ 4 $ 19 Other-than-temporary impairments for the years ended December 31, 2012 and 2011 primarily related to credit losses on nonagency residential mortgage backed securities. Other-than-temporary impairments for the year ended December 31, 2010 primarily related to credit losses on non-agency residential mortgage backed securities as well as corporate debt securities in the gaming industry. F-22

RiverSource Life Insurance Company Available-for-Sale securities by contractual maturity at December 31, 2012 were as follows: (in millions) Amortized Cost Fair Value Due within one year $ 1,537 $ 1,563 Due after one year through five years 4,065 4,372 Due after five years through 10 years 6,902 7,900 Due after 10 years 3,583 4,601 16,087 18,436 Residential mortgage backed securities 3,446 3,621 Commercial mortgage backed securities 2,717 3,004 Asset backed securities 808 871 Common stocks 2 4 Total $23,060 $25,936 Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are not due at a single maturity date. As such, these securities, as well as common stocks, were not included in the maturities distribution. At both December 31, 2012 and 2011, bonds carried at $7 million were on deposit with various states as required by law. Net investment income is summarized as follows: Years Ended December 31, (in millions) 2012 2011 2010 Income on fixed maturities $1,324 $1,469 $1,486 Income on mortgage loans 158 149 156 Other investments 26 18 32 1,508 1,636 1,674 Less: investment expenses 28 43 45 Total $1,480 $1,593 $1,629 Net realized investment gains (losses) are summarized as follows: Years Ended December 31, (in millions) 2012 2011 2010 Fixed maturities $ (2) $ 4 $19 Mortgage loans 2 (6) Other investments (1) (1) 3 Total $ (3) $ 5 $16 6. FINANCING RECEIVABLES The Company s financing receivables include commercial and residential mortgage loans, syndicated loans and policy loans. Syndicated loans are reflected in other investments. Policy loans do not exceed the cash surrender value of the policy at origination. As there is minimal risk of loss related to policy loans, the Company does not record an allowance for loan losses for policy loans. Allowance for Loan Losses The following tables present a rollforward of the allowance for loan losses for the years ended and the ending balance of the allowance for loan losses by impairment method and type of loan: (in millions) Commercial Mortgage Loans December 31, 2012 Syndicated Loans Beginning balance $32 $ 5 $37 Charge-offs (6) (1) (7) Provisions Ending balance $26 $ 4 $30 Individually evaluated for impairment $ 5 $ $ 5 Collectively evaluated for impairment 21 4 25 Total F-23

RiverSource Life Insurance Company (in millions) Commercial Mortgage Loans December 31, 2011 Syndicated Loans Beginning balance $36 $ 5 $41 Charge-offs (3) (3) Provisions (1) (1) Ending balance $32 $ 5 $37 Individually evaluated for impairment $ 9 $ $ 9 Collectively evaluated for impairment 23 5 28 (in millions) Commercial Mortgage Loans December 31, 2010 Syndicated Loans Beginning balance $30 $12 $42 Charge-offs (1) (2) (3) Provisions 7 (5) 2 Ending balance $36 $ 5 $41 Individually evaluated for impairment $ 8 $ $ 8 Collectively evaluated for impairment 28 5 33 The recorded investment in financing receivables by impairment method and type of loan was as follows: (in millions) Commercial Mortgage Loans December 31, 2012 Residential Mortgage Loans Syndicated Loans Individually evaluated for impairment $ 39 $ $ $ 39 Collectively evaluated for impairment 2,442 934 303 3,679 Total $2,481 $934 $303 $3,718 (in millions) Commercial Mortgage Loans December 31, 2011 Syndicated Loans Individually evaluated for impairment $ 64 $ 1 $ 65 Collectively evaluated for impairment 2,441 301 2,742 Total $2,505 $302 $2,807 As of December 31, 2012 and 2011, the Company s recorded investment in financing receivables individually evaluated for impairment for which there was no related allowance for loan losses was $10 million and $4 million, respectively. Residential mortgage loans are presented net of unamortized discount of $80 million as of December 31, 2012. Purchases and sales of loans were as follows: Years Ended December 31, (in millions) 2012 2011 2010 Purchases Residential mortgage loans $ 954 $ $ Syndicated loans 111 194 59 Total loans purchased $1,065 $194 $59 Sales Syndicated loans $ 9 $ 2 $ 2 Credit Quality Information Nonperforming loans, which are generally loans 90 days or more past due, were $4 million and $12 million as of December 31, 2012 and 2011, respectively. All other loans were considered to be performing. Commercial Mortgage Loans The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates as necessary. Commercial mortgage loans which management has assigned its highest risk rating were 2% and 3% of total commercial mortgage loans at December 31, 2012 and 2011, respectively. Total Total Total Total F-24

RiverSource Life Insurance Company Loans with the highest risk rating represent distressed loans which the Company has identified as impaired or expects to become delinquent or enter into foreclosure within the next six months. In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows: (in millions, except percentages) Loans December 31, 2012 December 31, 2011 Percent of Loans Funding Commitments Loans Percent of Loans Funding Commitments South Atlantic $ 625 25% $ 29 $ 618 25% $ Pacific 565 23 15 556 22 1 Mountain 262 11 12 275 11 11 East North Central 255 10 3 247 10 West North Central 216 9 224 9 1 Middle Atlantic 198 8 6 217 9 West South Central 159 6 4 173 7 2 New England 135 5 1 130 5 East South Central 66 3 2 65 2 2,481 100% $ 72 2,505 100% $15 Less: allowance for loan losses 26 32 Total $2,455 $2,473 Concentrations of credit risk of commercial mortgage loans by property type were as follows: (in millions, except percentages) Loans December 31, 2012 December 31, 2011 Percent of Loans Funding Commitments Loans Percent of Loans Funding Commitments Retail $ 822 33% $41 $ 825 33% $ 2 Office 597 24 669 27 2 Industrial 449 18 9 455 18 1 Apartments 415 17 13 358 14 Mixed use 42 2 42 2 Hotel 36 1 51 2 Other 120 5 9 105 4 10 2,481 100% $72 2,505 100% $15 Less: allowance for loan losses 26 32 Total $2,455 $2,473 Residential Mortgage Loans In October 2012, the Company purchased $954 million of residential mortgage loans at fair value from an affiliate, Ameriprise Bank, FSB. The purchase price takes into account the credit quality of the loan portfolio resulting in no allowance for loan losses recorded at purchase. The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as LTV and geographic concentration to determine when an amount for an allowance for loan losses for residential mortgage loans is appropriate. At a minimum, management will update FICO scores and LTV ratios semiannually. As of December 31, 2012, approximately 3% of residential mortgage loans had FICO scores below 640. At December 31, 2012, approximately 7% of the Company s residential mortgage loans had LTV ratios greater than 90%. The Company s most significant geographic concentration for residential mortgage loans is in California representing 38% of the portfolio as of December 31, 2012. No other state represents more than 10% of the total residential mortgage loan portfolio. At December 31, 2012, the Company had $627 million of funding commitments for residential mortgage loans. Syndicated Loans The Company s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total nonperforming syndicated loans at December 31, 2012 and 2011 were $2 million and $1 million, respectively. F-25

RiverSource Life Insurance Company Troubled Debt Restructurings The following table presents the number of loans restructured by the Company during the period and their recorded investment at the end of the period: (in millions, except number of loans) Number of Loans Years Ended December 31, 2012 2011 Recorded Investment Number of Loans Recorded Investment Commercial mortgage loans 4 $13 10 $49 Syndicated loans 2 1 Total 6 $14 10 $49 The troubled debt restructurings did not have a material impact to the Company s allowance for loan losses or income recognized for the years ended December 31, 2012 and 2011. There are no material commitments to lend additional funds to borrowers whose loans have been restructured. 7. DEFERRED ACQUISITION COSTS AND DEFERRED SALES INDUCEMENT COSTS The Company retrospectively adopted a new accounting standard for DAC in the first quarter of 2012. See Note 1 for the effect of the change on affected financial statement line items for prior periods retrospectively adjusted. In the third quarter of the year, management conducts its annual review of insurance and annuity valuation assumptions relative to current experience and management expectations. To the extent that expectations change as a result of this review, management updates valuation assumptions. The impact in the third quarter of 2012 and 2011 primarily reflected the low interest rate environment and for 2012, the assumption of continued low interest rates over the near-term. As part of the third quarter 2010 process, management extended the projection periods used for its annuity products and revised client asset value growth rates assumed for variable annuity and VUL contracts. The balances of and changes in DAC (subsequent to the adjustment for the new accounting standard) were as follows: (in millions) 2012 2011 2010 Balance at January 1 $2,413 $2,521 $2,349 Capitalization of acquisition costs 253 282 295 Amortization, excluding the impact of valuation assumptions review (214) (305) (227) Amortization, impact of valuation assumptions review (11) (31) 174 Impact of change in net unrealized securities gains (68) (54) (70) Balance at December 31 $2,373 $2,413 $2,521 The balances of and changes in DSIC were as follows: (in millions) 2012 2011 2010 Balance at January 1 $464 $545 $524 Capitalization of sales inducement costs 7 9 35 Amortization, excluding the impact of valuation assumptions review (45) (70) (49) Amortization, impact of valuation assumptions review (13) (11) 52 Impact of change in net unrealized securities gains (9) (9) (17) Balance at December 31 $404 $464 $545 8. REINSURANCE Generally, the Company currently reinsures 90% of the death benefit liability related to almost all individual fixed and variable universal life and term life insurance products. As a result, the Company typically retains and is at risk for, at most, 10% of each policy s death benefit from the first dollar of coverage for new sales of these policies, subject to the reinsurers fulfilling their obligations. RiverSource Life Insurance Company began reinsuring risks at this level in 2001 (RiverSource Life of NY began in 2002) for term life insurance and 2002 (2003 for RiverSource Life of NY) for individual fixed and variable universal life insurance. Policies issued prior to these dates are not subject to these same reinsurance levels. Generally, the maximum amount of life insurance risk retained by the Company is $1.5 million on a single life and $1.5 million on any flexible premium survivorship life policy. Risk on fixed and variable universal life policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy. F-26

RiverSource Life Insurance Company For existing LTC policies, the Company ceded 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc. ( Genworth ) and retained the remaining risk. For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only. The Company also has life insurance and fixed annuity risk previously assumed under reinsurance arrangements with unaffiliated insurance companies. Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states in October 2007 (August 2010 for RiverSource Life of NY) and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies. The Company retains all risk for new claims on DI contracts sold on other policy forms. The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions. At December 31, 2012 and 2011, traditional life and universal life insurance in force aggregated $191.4 billion and $191.2 billion, respectively, of which $138.6 billion and $136.2 billion were reinsured at the respective year ends. Life insurance in force is reported on a statutory basis. The effect of reinsurance on premiums was as follows: Years Ended December 31, (in millions) 2012 2011 2010 Direct premiums $ 656 $ 707 $ 681 Reinsurance ceded (214) (214) (192) Net premiums $ 442 $ 493 $ 489 Policy and contract charges are presented on the Consolidated Statements of Income net of $84 million, $71 million and $67 million of reinsurance ceded for the years ended December 31, 2012, 2011 and 2010, respectively. Reinsurance recovered from reinsurers was $196 million, $189 million and $166 million for the years ended December 31, 2012, 2011 and 2010, respectively. Reinsurance contracts do not relieve the Company from its primary obligation to policyholders. Reinsurance recoverables include approximately $1.6 billion and $1.5 billion related to LTC risk ceded to Genworth as of December 31, 2012 and 2011, respectively. Included in future policy benefits is $615 million and $629 million related to assumed reinsurance arrangements as of December 31, 2012 and 2011, respectively. 9. FUTURE POLICY BENEFITS, POLICY CLAIMS AND OTHER POLICYHOLDERS FUNDS AND SEPARATE ACCOUNT LIABILITIES The Company retrospectively adopted a new accounting standard for DAC in the first quarter of 2012. See Note 1 for the effect of the change on affected financial statement line items for prior periods retrospectively adjusted. Future policy benefits (subsequent to the adjustment for the new accounting standard) and policy claims and other policyholders funds consisted of the following: December 31, (in millions) 2012 2011 Fixed annuities $16,075 $16,401 EIA accumulated host values 31 58 EIA embedded derivatives 2 2 Variable annuity fixed sub-accounts 4,843 4,852 Variable annuity GMWB 799 1,377 Variable annuity GMAB 103 237 Other variable annuity guarantees 13 14 Total annuities 21,866 22,941 VUL/UL insurance 2,760 2,662 IUL accumulated host values 59 4 IUL embedded derivatives 45 3 VUL/UL insurance additional liabilities 294 220 Other life, DI and LTC insurance 5,646 5,339 Total future policy benefits 30,670 31,169 Policy claims and other policyholders funds 132 121 Total future policy benefits and policy claims and other policyholders funds $30,802 $31,290 F-27

RiverSource Life Insurance Company Separate account liabilities consisted of the following: December 31, (in millions) 2012 2011 Variable annuity variable sub-accounts $63,302 $57,556 VUL insurance variable sub-accounts 6,051 5,575 Other insurance variable sub-accounts 42 43 Total $69,395 $63,174 Fixed Annuities Fixed annuities include both deferred and payout contracts. Deferred contracts offer a guaranteed minimum rate of interest and security of the principal invested. Payout contracts guarantee a fixed income payment for life or the term of the contract. The Company generally invests the proceeds from the annuity payments in fixed rate securities. The Company may hedge the interest rate risks related to fixed annuities with derivative instruments. As of December 31, 2012 and 2011, there were no outstanding derivatives to hedge these risks. Equity Indexed Annuities The Index 500 Annuity, the Company s EIA product, is a single premium deferred fixed annuity. The contract is issued with an initial term of seven years and interest earnings are linked to the S&P 500 Index. This annuity has a minimum interest rate guarantee of 3% on 90% of the initial premium, adjusted for any surrenders. The Company generally invests the proceeds from the annuity deposits in fixed rate securities and hedges the equity risk with derivative instruments. See Note 16 for additional information regarding the Company s derivative instruments. In 2007, the Company discontinued new sales of EIAs. Variable Annuities Purchasers of variable annuities can select from a variety of investment options and can elect to allocate a portion to a fixed account. A vast majority of the premiums received for variable annuity contracts are held in separate accounts where the assets are held for the exclusive benefit of those contractholders. Most of the variable annuity contracts issued by the Company contain one or more guaranteed benefits, including GMWB, GMAB, GMDB and GGU provisions. The Company previously offered contracts with GMIB provisions. See Note 2 and Note 10 for additional information regarding the Company s variable annuity guarantees. The Company does not currently hedge its risk under the GMDB, GGU and GMIB provisions. See Note 16 for additional information regarding derivative instruments used to hedge risks related to GMWB and GMAB provisions. Insurance Liabilities VUL/UL is the largest group of insurance policies written by the Company. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion to a fixed account or a separate account. A vast majority of the premiums received for VUL policies are held in separate accounts where the assets are held for the exclusive benefit of those policyholders. In 2011, the Company began offering IUL insurance. IUL is similar to UL in that it provides life insurance coverage and cash value that increases as a result of credited interest. Also, like UL, there is a minimum guaranteed credited rate of interest. Unlike UL, the rate of credited interest above the minimum guarantee for funds allocated to the indexed account is linked to the S&P 500 Index (subject to a cap). The policyholder may allocate all or a portion of the policy value to a fixed or indexed account. The Company also offers term and whole life insurance as well as disability products. The Company no longer offers standalone LTC products but has in force policies from prior years. Insurance liabilities include accumulation values, unpaid reported claims, incurred but not reported claims and obligations for anticipated future claims. Portions of the Company s fixed and variable universal life policies have product features that result in profits followed by losses from the insurance component of the policy. These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the policy. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. 10. VARIABLE ANNUITY AND INSURANCE GUARANTEES The majority of the variable annuity contracts offered by the Company contain GMDB provisions. The Company also offers variable annuities with GGU, GMWB and GMAB provisions. The Company previously offered contracts containing GMIB provisions. See Note 2 and Note 9 for additional information regarding the Company s variable annuity guarantees. F-28

RiverSource Life Insurance Company The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture and less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has three primary GMDB provisions: Return of premium provides purchase payments minus adjusted partial surrenders. Reset provides that the value resets to the account value every sixth contract anniversary minus adjusted partial surrenders. This provision was often provided in combination with the return of premium provision and is no longer offered. Ratchet provides that the value ratchets up to the maximum account value at specified anniversary intervals, plus subsequent purchase payments less adjusted partial surrenders. The variable annuity contracts with GMWB riders typically have account values that are based on an underlying portfolio of mutual funds, the values of which fluctuate based on fund performance. At issue, the guaranteed amount is equal to the amount deposited but the guarantee may be increased annually to the account value (a step-up ) in the case of favorable market performance. The Company has GMWB riders in force, which contain one or more of the following provisions: Withdrawals at a specified rate per year until the amount withdrawn is equal to the guaranteed amount. Withdrawals at a specified rate per year for the life of the contractholder ( GMWB for life ). Withdrawals at a specified rate per year for joint contractholders while either is alive. Withdrawals based on performance of the contract. Withdrawals based on the age withdrawals begin. Once withdrawals begin, the contractholder s funds are moved to one of the three least aggressive asset allocation models. Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken. Variable annuity contractholders age 79 or younger at contract issue can also obtain a principal-back guarantee by purchasing the optional GMAB rider for an additional charge. The GMAB rider guarantees that, regardless of market performance at the end of the 10-year waiting period, the contract value will be no less than the original investment or 80% of the highest anniversary value, adjusted for withdrawals. If the contract value is less than the guarantee at the end of the 10 year period, a lump sum will be added to the contract value to make the contract value equal to the guarantee value. Certain UL policies offered by the Company provide secondary guarantee benefits. The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges. The following table provides information related to variable annuity guarantees for which the Company has established additional liabilities: Variable Annuity Guarantees by Benefit Type (1) (in millions, except age) December 31, 2012 December 31, 2011 Contract Value in Separate Accounts Weighted Average Attained Age Contract Value in Separate Accounts Total Contract Value Net Amount at Risk (2) Total Contract Value Net Amount at Risk (2) GMDB: Return of premium $45,697 $43,942 $ 61 63 $40,011 $38,275 $ 382 63 Five/six-year reset 11,233 8,722 115 63 11,631 9,118 350 63 One-year ratchet 7,367 6,933 106 65 7,233 6,777 479 64 Five-year ratchet 1,616 1,563 3 61 1,472 1,418 25 61 Other 912 885 62 68 759 732 93 68 Total GMDB $66,825 $62,045 $347 63 $61,106 $56,320 $1,329 63 GGU death benefit $ 958 $ 907 $ 93 63 $ 920 $ 868 $ 78 63 GMIB $ 425 $ 399 $ 72 66 $ 463 $ 433 $ 106 65 GMWB: GMWB $ 3,898 $ 3,880 $ 34 66 $ 3,887 $ 3,868 $ 236 65 GMWB for life 28,588 28,462 263 64 23,756 23,625 863 64 Total GMWB $32,486 $32,342 $297 64 $27,643 $27,493 $1,099 64 GMAB $ 3,773 $ 3,762 $ 5 57 $ 3,516 $ 3,509 $ 63 56 (1) Weighted Average Attained Age Individual variable annuity contracts may have more than one guarantee and therefore may be included in more than one benefit type. Variable annuity contracts for which the death benefit equals the account value are not shown in this table. (2) Represents the current guaranteed benefit amount in excess of the current contract value. GMIB, GMWB and GMAB benefits are subject to waiting periods and payment periods specified in the contract. F-29

RiverSource Life Insurance Company Changes in additional liabilities for variable annuity and insurance guarantees were as follows: (in millions) GMDB & GGU GMIB GMWB GMAB UL Balance at January 1, 2010 $ 6 $ 6 $ 204 $ 100 $ 15 Incurred claims 17 3 133 4 59 Paid claims (18) (1) (6) Balance at December 31, 2010 5 8 337 104 68 Incurred claims 10 2 1,040 133 53 Paid claims (10) (1) (10) Balance at December 31, 2011 5 9 1,377 237 111 Incurred claims 6 1 (578) (134) 57 Paid claims (7) (1) (13) Balance at December 31, 2012 $ 4 $ 9 $ 799 $ 103 $155 The liabilities for guaranteed benefits are supported by general account assets. The following table summarizes the distribution of separate account balances by asset type for variable annuity contracts providing guaranteed benefits: December 31, (in millions) 2012 2011 Mutual funds: Equity $32,054 $30,738 Bond 26,165 23,862 Other 3,991 1,969 Total mutual funds $62,210 $56,569 No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2012, 2011 and 2010. 11. LINES OF CREDIT RiverSource Life Insurance Company, as the borrower, had an outstanding balance at December 31, 2012 and 2011 of $150 million and $300 million, respectively, under a revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under the line of credit may not exceed $800 million at any time. Prior to January 1, 2012, the interest rate for any borrowing under the agreement was established by reference to LIBOR plus 115 basis points. In January 2012, an amendment to this agreement decreased the interest rate to LIBOR plus 90 basis points, subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. Amounts borrowed may be repaid at any time with no prepayment penalty. The Company has a revolving credit agreement with Ameriprise Financial as the lender aggregating $200 million. Prior to August 1, 2012, the interest rate for any borrowings is established by reference to LIBOR. In August 2012, an amendment to this agreement increased the interest rate to LIBOR plus 90 basis points, subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. There were no amounts outstanding on this line of credit at December 31, 2012 and 2011. In December 2009, RiverSource Life Insurance Company, as the lender, entered into a revolving credit agreement with Ameriprise Financial as the borrower. This line of credit is not to exceed 3% of RiverSource Life Insurance Company s statutory admitted assets as of the prior year end. Prior to January 1, 2012, the interest rate for any borrowing was established by reference to LIBOR plus 115 basis points. In January 2012, an amendment to this agreement decreased the interest rate to LIBOR plus 90 basis points, subject to adjustment based on debt ratings of the senior unsecured debt of Ameriprise Financial. In the event of default, an additional 1% interest will accrue during such period of default. There were no amounts outstanding on this revolving credit agreement as of December 31, 2012 and 2011. 12. BORROWINGS UNDER REPURCHASE AGREEMENTS The Company enters into repurchase agreements in exchange for cash which it accounts for as secured borrowings. The Company has pledged Available-for-Sale securities consisting of agency residential mortgage backed securities and commercial mortgage backed securities to collateralize its obligation under the repurchase agreements. The fair value of the securities pledged is recorded in investments and was $518 million and $521 million at December 31, 2012 and 2011, respectively. The amount of the Company s liability including accrued interest as of December 31, 2012 and 2011 was $501 million and $504 million, respectively. The weighted average annualized interest rate on the repurchase agreements held as of December 31, 2012 and 2011 was 0.4% and 0.3%, respectively. F-30

RiverSource Life Insurance Company 13. FAIR VALUES OF ASSETS AND LIABILITIES GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale. Valuation Hierarchy The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. Level 2 Prices or valuations based on observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The following tables present the balances of assets and liabilities measured at fair value on a recurring basis: December 31, 2012 (in millions) Level 1 Level 2 Level 3 Total Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ $15,387 $1,654 $17,041 Residential mortgage backed securities 3,598 23 3,621 Commercial mortgage backed securities 2,834 170 3,004 State and municipal obligations 1,122 1,122 Asset backed securities 715 156 871 Foreign government bonds and obligations 224 224 U.S. government and agencies obligations 10 39 49 Total Available-for-Sale securities: Fixed maturities 10 23,919 2,003 25,932 Common stocks 2 2 4 Cash equivalents 264 264 Other assets: Interest rate derivative contracts 2,191 2,191 Equity derivative contracts 285 936 1,221 Foreign currency derivative contracts 6 6 Total other assets 285 3,133 3,418 Separate account assets 69,395 69,395 Total assets at fair value $297 $96,713 $2,003 $99,013 Liabilities Future policy benefits: EIA embedded derivatives $ $ 2 $ $ 2 IUL embedded derivatives 45 45 GMWB and GMAB embedded derivatives 833 833 Total future policy benefits 47 833 880 (1) Other liabilities: Interest rate derivative contracts 1,486 1,486 Equity derivative contracts 258 1,535 1,793 Total other liabilities 258 3,021 3,279 Total liabilities at fair value $258 $ 3,068 $ 833 $ 4,159 (1) The Company s adjustment for nonperformance risk resulted in a $389 million cumulative decrease to the embedded derivative liability. F-31

RiverSource Life Insurance Company December 31, 2011 (in millions) Level 1 Level 2 Level 3 Total Assets Available-for-Sale securities: Fixed maturities: Corporate debt securities $ $15,076 $1,342 $16,418 Residential mortgage backed securities 4,310 58 4,368 Commercial mortgage backed securities 3,615 16 3,631 State and municipal obligations 1,096 1,096 Asset backed securities 716 133 849 Foreign government bonds and obligations 144 144 U.S. government and agencies obligations 10 47 57 Other structured investments 14 14 Total Available-for-Sale securities: Fixed maturities 10 25,004 1,563 26,577 Common stocks 1 1 2 Trading securities 25 25 Cash equivalents 809 809 Other assets: Interest rate derivative contracts 1,801 1,801 Equity derivative contracts 274 1,041 1,315 Credit derivative contracts 1 1 Foreign currency derivative contracts 7 7 Total other assets 274 2,850 3,124 Separate account assets 63,174 63,174 Total assets at fair value $285 $91,863 $1,563 $93,711 Liabilities Future policy benefits: EIA embedded derivatives $ $ 2 $ $ 2 IUL embedded derivatives 3 3 GMWB and GMAB embedded derivatives 1,585 1,585 Total future policy benefits 5 1,585 1,590 (1) Other liabilities: Interest rate derivative contracts 1,198 1,198 Equity derivative contracts 297 734 1,031 Foreign currency derivative contracts 10 10 Total other liabilities 297 1,942 2,239 Total liabilities at fair value $297 $ 1,947 $1,585 $ 3,829 (1) The Company s adjustment for nonperformance risk resulted in a $506 million cumulative decrease to the embedded derivative liability. F-32

RiverSource Life Insurance Company The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis: (in millions) Corporate Debt Securities Residential Mortgage Backed Securities Available-for-Sale Securities: Fixed Maturities Commercial Mortgage Backed Securities Asset Backed Securities Other Structured Investments Total Future Policy Benefits: GMWB and GMAB Embedded Derivatives Balance, January 1, 2012 $1,342 $ 58 $ 16 $133 $ 14 $1,563 $(1,585) Total gains (losses) included in: Net income (1) (7) 1 1 (6) (1) 948 (2) Other comprehensive income 12 10 7 2 1 32 Purchases 444 31 8 483 Sales Issues (188) Settlements (153) (12) (2) (167) (8) Transfers into Level 3 10 25 146 22 203 Transfers out of Level 3 (82) (8) (15) (105) Balance, December 31, 2012 $1,654 $ 23 $170 $156 $ $2,003 $ (833) Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2012 included in: Net investment income $ (1) $ $ 1 $ 1 $ $ 1 $ Benefits, claims, losses and settlement expenses 908 (1) Represents a $7 million loss included in net realized investment gains (losses) and a $1 million gain included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. (in millions) Corporate Debt Securities Residential Mortgage Backed Securities Available-for-Sale Securities: Fixed Maturities Commercial Mortgage Backed Securities Asset Backed Securities Other Structured Investments Total Future Policy Benefits: GMWB and GMAB Embedded Derivatives Balance, January 1, 2011 $1,317 $ 2,697 $ 30 $148 $13 $ 4,205 $ (421) Total gains (losses) included in: Net income 7 49 2 1 59 (1) (1,007) (2) Other comprehensive income 12 (75) (6) (2) (71) Purchases 178 26 71 3 278 Sales (50) (3) (53) Issues (149) Settlements (117) (471) (3) (1) (592) (8) Transfers into Level 3 7 1 8 Transfers out of Level 3 (12) (2,165) (86) (8) (2,271) Balance, December 31, 2011 $1,342 $ 58 $ 16 $133 $14 $ 1,563 $(1,585) Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2011 included in: Net investment income $ $ $ $ 1 $ $ 1 $ Net realized investment gains (losses) (23) 1 (22) Benefits, claims, losses and settlement expenses (1,035) (1) Represents a $26 million loss included in net realized investment gains (losses) and an $85 million gain included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. F-33

RiverSource Life Insurance Company (in millions) Corporate Debt Securities Residential Mortgage Backed Securities Available-for-Sale Securities: Fixed Maturities Commercial Mortgage Backed Securities Asset Backed Securities Other Structured Investments Total Future Policy Benefits: GMWB and GMAB Embedded Derivatives Balance, January 1, 2010 $1,239 $2,868 $ 72 $119 $11 $4,309 $(299) Total gains (losses) included in: Net income 1 55 1 5 2 64 (1) 4 (2) Other comprehensive income 30 202 10 10 252 Purchases, sales, issues and settlements, net 22 (428) 91 27 (288) (126) Transfers into Level 3 25 25 Transfers out of Level 3 (144) (13) (157) Balance, December 31, 2010 $1,317 $2,697 $ 30 $148 $13 $4,205 $(421) Changes in unrealized gains (losses) relating to assets and liabilities held at December 31, 2010 included in: Net investment income $ $ 79 $ $ 4 $ $ 83 $ Net realized investment gains (losses) (26) (26) Benefits, claims, losses and settlement expenses (15) (1) Represents a $21 million loss included in net realized investment gains (losses) and an $85 million gain included in net investment income in the Consolidated Statements of Income. (2) Included in benefits, claims, losses and settlement expenses in the Consolidated Statements of Income. The impact to pretax income of the Company s adjustment for nonperformance risk on the fair value of its GMWB and GMAB embedded derivatives was $(82) million, $216 million and $36 million, net of DAC and DSIC amortization, for the years ended December 31, 2012, 2011 and 2010, respectively. During the years ended December 31, 2012 and 2011, transfers from Level 3 to Level 2 included certain non-agency residential mortgage backed securities with a fair value of approximately $58 million and $2.2 billion, respectively. The transfers reflect improved pricing transparency of these securities, a continuing trend of increased activity in the non-agency residential mortgage backed securities market and observability of significant inputs to the valuation methodology. All other securities transferred from Level 3 to Level 2 represent securities with fair values that are now obtained from a third party pricing service with observable inputs. Securities transferred from Level 2 to Level 3 represent securities with fair values that are now based on a single non-binding broker quote. The Company recognizes transfers between levels of the fair value hierarchy as of the beginning of the quarter in which each transfer occurred. For assets and liabilities held at the end of the reporting periods that are measured at fair value on a recurring basis, there were no transfers between Level 1 and Level 2. The following table provides a summary of the significant unobservable inputs used in the fair value measurements developed by the Company or reasonably available to the Company of Level 3 assets and liabilities at December 31, 2012: Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (in millions) Corporate debt securities (private placements) $1,624 Discounted cash flow Yield/spread to U.S. Treasuries 1.1% 8.5% (2.2%) GMWB and GMAB embedded derivatives $ 833 Discounted cash flow Utilization of guaranteed withdrawals (1) 0.0% 56.4% Surrender rate 0.0% 56.3% Market volatility (2) 5.6% 21.2% Nonperformance risk (3) 97 bps (1) The utilization of the guaranteed withdrawals represents the percentage of policyholders that will begin withdrawing in any given year. (2) Market volatility is implied volatility of fund of funds. (3) The nonperformance risk is the spread added to the observable interest rates used in the valuation of the embedded derivative. Level 3 measurements not included in the table above are obtained from non-binding broker quotes where unobservable inputs are not reasonably available to the Company. Sensitivity of Fair Value Measurements to Changes in Unobservable Inputs Significant increases (decreases) in the yield/spread to U.S. Treasuries used in the fair value measurement of Level 3 corporate debt securities in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in utilization and volatility used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly higher (lower) fair value measurement. Significant increases F-34

RiverSource Life Insurance Company (decreases) in surrender rate and nonperformance risk used in the fair value measurement of the GMWB and GMAB embedded derivatives in isolation would result in a significantly lower (higher) fair value measurement. Utilization of guaranteed withdrawals and surrender rates vary with the type of rider, the duration of the policy, the age of the contractholder, the distribution system and whether the value of the guaranteed benefit exceeds the contract accumulation value. Determination of Fair Value The Company uses valuation techniques consistent with the market and income approaches to measure the fair value of its assets and liabilities. The Company s market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The Company s income approach uses valuation techniques to convert future projected cash flows to a single discounted present value amount. When applying either approach, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy. Assets Cash Equivalents Cash equivalents include highly liquid investments with original maturities of 90 days or less. Cash equivalents are classified as Level 2 and measured at amortized cost, which is a reasonable estimate of fair value because of the short time between the purchase of the instrument and its expected realization. Available-for-Sale Securities When available, the fair value of securities is based on quoted prices in active markets. If quoted prices are not available, fair values are obtained from third party pricing services, non-binding broker quotes, or other model-based valuation techniques. Level 1 securities include U.S. Treasuries. Level 2 securities include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, municipal bonds, asset backed securities and U.S. agency and foreign government securities. The fair value of these Level 2 securities is based on a market approach with prices obtained from third party pricing services. Observable inputs used to value these securities can include, but are not limited to, reported trades, benchmark yields, issuer spreads and non-binding broker quotes. Level 3 securities primarily include certain corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and asset backed securities. The fair value of corporate bonds, non-agency residential mortgage backed securities, commercial mortgage backed securities and certain asset backed securities classified as Level 3 is typically based on a single non-binding broker quote. The underlying inputs used for some of the non-binding broker quotes are not readily available to the Company. In consideration of the above, management is responsible for the fair values recorded on the financial statements. Prices received from third party pricing services are subjected to exception reporting that identifies investments with significant daily price movements as well as no movements. The Company reviews the exception reporting and resolves the exceptions through reaffirmation of the price or recording an appropriate fair value estimate. The Company also performs subsequent transaction testing. The Company performs annual due diligence of third party pricing services. The Company s due diligence procedures include assessing the vendor s valuation qualifications, control environment, analysis of asset-class specific valuation methodologies, and understanding of sources of market observable assumptions and unobservable assumptions, if any, employed in the valuation methodology. The Company also considers the results of its exception reporting controls and any resulting price challenges that arise. Separate Account Assets The fair value of assets held by separate accounts is determined by the net asset value ( NAV ) of the funds in which those separate accounts are invested. The NAV represents the exit price for the separate account. Separate account assets are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information. Other Assets Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The fair value of derivatives that are traded in less active over-the-counter ( OTC ) markets are generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The counterparties nonperformance risk associated with uncollateralized derivative assets was immaterial at December 31, 2012 and 2011. See Note 16 for further information on the credit risk of derivative instruments and related collateral. F-35

RiverSource Life Insurance Company Liabilities Future Policy Benefits The Company values the embedded derivative liability attributable to the provisions of certain variable annuity riders using internal valuation models. These models calculate fair value by discounting expected cash flows from benefits plus margins for profit, risk and expenses less embedded derivative fees. The projected cash flows used by these models include observable capital market assumptions and incorporate significant unobservable inputs related to contractholder behavior assumptions, implied volatility and margins for risk, profit and expenses that the Company believes an exit market participant would expect. The fair value of these embedded derivatives also reflects a current estimate of the Company s nonperformance risk specific to these liabilities. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3. The embedded derivative liability attributable to these provisions is recorded in future policy benefits. The Company s Corporate Actuarial Department calculates the fair value of the GMWB and GMAB embedded derivatives on a monthly basis. During this process, control checks are performed to validate the completeness of the data. Actuarial management approves various components of the valuation along with the final results. The change in the fair value of the embedded derivatives is reviewed monthly with senior management. The Level 3 inputs into the valuation are consistent with the pricing assumptions and updated as experience develops. Significant unobservable inputs that reflect policyholder behavior are reviewed quarterly along with other valuation assumptions. The Company uses various Black-Scholes calculations to determine the fair value of the embedded derivative liability associated with the provisions of its EIA and IUL products. The inputs to these calculations are primarily market observable and include interest rates, volatilities and equity index levels. As a result, these measurements are classified as Level 2. Other Liabilities Derivatives that are measured using quoted prices in active markets, such as derivatives that are exchange-traded, are classified as Level 1 measurements. The fair value of derivatives that are traded in less active OTC markets are generally measured using pricing models with market observable inputs such as interest rates and equity index levels. These measurements are classified as Level 2 within the fair value hierarchy and include swaps and the majority of options. The Company s nonperformance risk associated with uncollateralized derivative liabilities was immaterial at December 31, 2012 and 2011. See Note 16 for further information on the credit risk of derivative instruments and related collateral. During the reporting periods, there were no material assets or liabilities measured at fair value on a nonrecurring basis. The following table provides the carrying value and the estimated fair value of financial instruments that are not reported at fair value. All other financial instruments that are reported at fair value have been included above in the table with balances of assets and liabilities measured at fair value on a recurring basis. (in millions) December 31, December 31, 2012 2011 Carrying Fair Value Value Level 1 Level 2 Level 3 Total Carrying Value Financial Assets Mortgage loans, net $ 3,389 $ $ $ 3,568 $ 3,568 $ 2,473 $ 2,650 Policy loans 752 725 725 739 713 Other investments 309 292 24 316 308 311 Restricted cash 86 86 86 26 26 Financial Liabilities Future policy benefits $14,701 $ $ $15,982 $15,982 $15,064 $16,116 Separate account liabilities 360 360 360 345 345 Line of credit with Ameriprise Financial 150 150 150 300 300 Borrowings under repurchase agreements 501 500 500 504 502 Other liabilities 144 142 142 267 263 Mortgage Loans, Net The fair value of commercial mortgage loans, except those with significant credit deterioration, is determined by discounting contractual cash flows using discount rates that reflect current pricing for loans with similar remaining maturities and characteristics including loan-to-value ratio, occupancy rate, refinance risk, debt-service coverage, location, and property condition. For commercial mortgage loans with significant credit deterioration, fair value is determined using the same adjustments as above with an additional adjustment for the Company s estimate of the amount recoverable on the loan. Fair Value F-36

RiverSource Life Insurance Company The fair value of residential mortgage loans is determined by discounting estimated cash flows and incorporating adjustments for prepayment, administration expenses, severity and credit loss estimates, with discount rates based on the Company s estimate of current market conditions. Given the significant unobservable inputs to the valuation of mortgage loans, these measurements are classified as Level 3. Policy Loans The fair value of policy loans is determined using discounted cash flows and are classified as Level 3 as the discount rate used may be adjusted for the underlying performance of individual policies. Other Investments Other investments primarily consist of syndicated loans and an investment in Federal Home Loan Bank of Des Moines ( FHLB ). The fair value of syndicated loans is obtained from a third party service or non-binding broker quotes. Syndicated loans that are priced by multiple non-binding broker quotes are classified as Level 2 and syndicated loans priced using a single non-binding broker quote are classified as Level 3. The fair value of the investment in FHLB is approximated by the carrying value and classified as Level 3 due to restrictions on transfer or lack of liquidity. Restricted Cash Restricted cash is generally set aside for specific business transactions and restrictions are specific to the Company and do not transfer to third party market participants; therefore, the carrying amount is a reasonable estimate of fair value. The fair value of restricted cash is classified as Level 1. Future Policy Benefits The fair value of fixed annuities, in deferral status, is determined by discounting cash flows using a risk neutral discount rate with adjustments for profit margin, expense margin, early policy surrender behavior, a provision for adverse deviation from estimated early policy surrender behavior and the Company s nonperformance risk specific to these liabilities. The fair value of other liabilities including non-life contingent fixed annuities in payout status, EIA host contracts and the fixed portion of a small number of variable annuity contracts classified as investment contracts is determined in a similar manner. Given the use of significant unobservable inputs to these valuations, the measurements are classified as Level 3. Separate Account Liabilities Certain separate account liabilities are classified as investment contracts and are carried at an amount equal to the related separate account assets. The NAV of the related separate account assets represents the exit price for the separate account liabilities. Separate account liabilities are classified as Level 2 as they are traded in principal-to-principal markets with little publicly released pricing information. A nonperformance adjustment is not included as the related separate account assets act as collateral for these liabilities and minimize nonperformance risk. Line of Credit with Ameriprise Financial The fair value of the line of credit is determined by discounting cash flows with an adjustment for the Company s nonperformance risk specific to this liability. The fair value of the line of credit is classified as Level 3. Borrowings under Repurchase Agreements The fair value of borrowings under agreements to repurchase is obtained from a third party pricing service. A nonperformance adjustment is not included as collateral requirements for these borrowings minimize the nonperformance risk. The fair value of borrowings under agreements to repurchase is classified as Level 2. Other Liabilities Other liabilities consist of future funding commitments to affordable housing partnerships. The fair value of these future funding commitments is determined by discounting cash flows and is classified as Level 3 as the discount rate is adjusted. 14. RELATED PARTY TRANSACTIONS Columbia Management Investment Advisers, LLC is the investment manager for the proprietary mutual funds used as investment options by the Company s variable annuity contractholders and variable life insurance policyholders. The Company provides all fund management services, other than investment management, and is compensated for the administrative services it provides. For the years ended December 31, 2012, 2011 and 2010, the Company received $244 million, $222 million and $136 million, respectively, from Columbia Management Investment Advisers, LLC for these services. Charges by Ameriprise Financial and affiliated companies to the Company for use of joint facilities, technology support, marketing services and other services aggregated $477 million, $530 million and $527 million for 2012, 2011 and 2010, F-37

RiverSource Life Insurance Company respectively. Certain of these costs are included in DAC. Expenses allocated to the Company may not be reflective of expenses that would have been incurred by the Company on a stand-alone basis. Dividends paid and received by RiverSource Life Insurance Company were as follows: Years Ended December 31, (in millions) 2012 2011 2010 Cash dividends paid to Ameriprise Financial $865 $750 $500 Non-cash dividends paid to Ameriprise Financial 850 Cash dividends received from RiverSource Life of NY 50 79 28 Cash dividends received from RTA 53 63 Notifications to state insurance regulators were made in advance of payments of dividends for amounts in excess of statutorily defined thresholds. See Note 15 for additional information. During 2012 and 2011, RiverSource Life Insurance Company made cash contributions to RTA of $53 million and $111 million, respectively, for ongoing funding commitments related to affordable housing partnership investments. In October 2012, the Company purchased $954 million of residential mortgage loans from an affiliate, Ameriprise Bank, FSB. The Company purchased the loans for investment purposes and as part of Ameriprise Financial s initiative to transition Ameriprise Bank, FSB from a federal savings bank to a limited powers national trust bank. The portfolio consists primarily of variable rate revolving loans, and includes both first and second liens. The loans were purchased by the Company at fair value. See Note 6 for additional information. During 2010, the Company received a non-cash capital contribution of $14 million comprised of affordable housing partnership investments from Ameriprise Financial. Beginning in 2010, the Company s taxable income was included in the consolidated federal income tax return of Ameriprise Financial. Net amount due to Ameriprise Financial for federal income taxes were $17 million at December 31, 2012. Net amount due from Ameriprise Financial for federal income taxes were $86 million at December 31, 2011. 15. STATUTORY CAPITAL AND SURPLUS State insurance statutes contain limitations as to the amount of dividends or distributions that insurers may make without providing prior notification to state regulators. For RiverSource Life Insurance Company, dividends or distributions in excess of unassigned surplus, as determined in accordance with accounting practices prescribed by the State of Minnesota, require advance notice to the Minnesota Department of Commerce, RiverSource Life Insurance Company s primary regulator, and are subject to potential disapproval. RiverSource Life Insurance Company s statutory unassigned surplus aggregated $421 million and $(296) million as of December 31, 2012 and 2011, respectively. In addition, dividends or distributions, whose fair market value, together with that of other dividends or distributions made within the preceding 12 months, exceed the greater of the previous year s statutory net gain from operations or 10% of the previous year-end statutory capital and surplus are referred to as extraordinary dividends. Extraordinary dividends also require advance notice to the Minnesota Department of Commerce, and are subject to potential disapproval. Statutory net gain from operations and net income for the years ended December 31 and capital and surplus as of December 31 are summarized as follows: (in millions) 2012 2011 2010 Statutory net gain (loss) from operations (1) $2,189 $ (475) $1,200 Statutory net income (loss) (1) 1,976 (599) 1,112 Statutory capital and surplus 3,113 2,681 3,735 (1) Statutory net gain (loss) from operations and statutory net income (loss) are significantly impacted by changes in reserves for variable annuity guaranteed benefits, however these impacts are substantially offset by unrealized gains (losses) on derivatives which are not included in statutory income but are recorded directly to surplus. 16. DERIVATIVES AND HEDGING ACTIVITIES Derivative instruments enable the Company to manage its exposure to various market risks. The value of such instruments is derived from an underlying variable or multiple variables, including equity and interest rate indices or prices. The Company primarily enters into derivative agreements for risk management purposes related to the Company s products and operations. Freestanding derivative instruments are recorded at fair value and are reflected in other assets or other liabilities. The Company s policy on the recognition of derivatives on the Consolidated Balance Sheet is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. F-38

RiverSource Life Insurance Company The following table presents the estimated fair value of the Company s freestanding derivatives after considering the effect of master netting arrangements and collateral: (in millions) December 31, 2012 December 31, 2011 Net Derivative Assets Net Derivative Liabilities Net Derivative Assets Net Derivative Liabilities Fair value of OTC derivatives after application of master netting agreements $ 646 $ 603 $ 861 $129 Cash collateral on OTC derivatives (262) (67) (613) (26) Fair value of OTC derivatives after application of master netting agreements and cash collateral 384 536 248 103 Securities collateral on OTC derivatives (355) (532) (186) (95) Fair value of OTC derivatives after application of master netting agreements and cash and securities collateral 29 4 62 8 Fair value of exchange-traded derivatives 96 155 Total fair value of derivatives after application of master netting agreements and cash and securities collateral $ 125 $ 4 $ 217 $ 8 In April 2012, the Financial Stability Oversight Council approved the final rule and interpretive guidance that provides the framework it will follow to determine if a nonbank financial company is a Systemically Important Financial Institution. The framework includes a three-stage process to help narrow down the pool of nonbank financial companies for review and possible designation. Stage 1 criteria include having at least $50 billion in assets and meeting one of five additional quantitative measures. One of the five thresholds is $3.5 billion of derivative liabilities after considering the effects of master netting arrangements and cash collateral held with the same counterparty. The following table presents the Company s derivative liabilities as defined by the rule: December 31, (in millions) 2012 2011 Fair value of OTC derivative liabilities after application of master netting agreements and cash collateral $ 536 $ 103 Fair value of embedded derivative liabilities 880 1,590 Fair value of derivative liabilities after application of master netting agreements and cash collateral $1,416 $1,693 The Company currently uses derivatives as economic hedges and accounting hedges. The following table presents the balance sheet location and the gross fair value of derivative instruments, including embedded derivatives: Derivatives not designated as hedging instruments Asset Balance Sheet December 31, Location 2012 2011 Liability Balance Sheet December 31, Location 2012 2011 (in millions) (in millions) GMWB and GMAB Interest rate contracts Other assets $2,191 $1,801 Other liabilities $1,486 $1,198 Equity contracts Other assets 1,215 1,314 Other liabilities 1,792 1,031 Credit contracts Other assets 1 Other liabilities Foreign currency contracts Other assets 6 7 Other liabilities 10 Embedded derivatives (1) Not applicable Future policy benefits 833 1,585 Total GMWB and GMAB 3,412 3,123 4,111 3,824 Other derivatives: Equity EIA embedded derivatives Not applicable Future policy benefits 2 2 IUL Other assets 6 1 Other liabilities 1 IUL embedded derivatives Not applicable Future policy benefits 45 3 Total other 6 1 48 5 Total derivatives $3,418 $3,124 $4,159 $3,829 (1) The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. See Note 13 for additional information regarding the Company s fair value measurement of derivative instruments. F-39

RiverSource Life Insurance Company The following table presents a summary of the impact of derivatives not designated as hedging instruments on the Consolidated Statements of Income for the years ended December 31: Derivatives not designated as hedging instruments Amount of Gain (Loss) on Location of Gain (Loss) on Derivatives Recognized in Income 2012 Derivatives Recognized in Income 2011 2010 (in millions) GMWB and GMAB Interest rate contracts Benefits, claims, losses and settlement expenses $ 17 $ 709 $ 95 Equity contracts Benefits, claims, losses and settlement expenses (1,218) 326 (370) Credit contracts Benefits, claims, losses and settlement expenses (2) (12) (44) Foreign currency contracts Benefits, claims, losses and settlement expenses (1) (2) Embedded derivatives (1) Benefits, claims, losses and settlement expenses 752 (1,165) (121) Total GMWB and GMAB (452) (144) (440) Other derivatives: Interest rate Tax hedge Net investment income 1 Equity GMDB Benefits, claims, losses and settlement expenses (4) EIA Interest credited to fixed accounts 1 (1) 2 EIA embedded derivatives Interest credited to fixed accounts 1 1 7 IUL Interest credited to fixed accounts 1 1 IUL embedded derivatives Interest credited to fixed accounts (4) (3) Total other (2) 5 Total derivatives $ (452) $ (146) $(435) (1) The fair values of GMWB and GMAB embedded derivatives fluctuate based on changes in equity, interest rate and credit markets. The Company holds derivative instruments that either do not qualify or are not designated for hedge accounting treatment. These derivative instruments are used as economic hedges of equity, interest rate and credit risk related to various products and transactions of the Company. Certain annuity contracts contain GMWB or GMAB provisions, which guarantee the right to make limited partial withdrawals each contract year regardless of the volatility inherent in the underlying investments or guarantee a minimum accumulation value of consideration received at the beginning of the contract period, after a specified holding period, respectively. The Company economically hedges the exposure related to non-life contingent GMWB and GMAB provisions primarily using various futures, options, interest rate swaptions, interest rate swaps, total return swaps, variance swaps and credit default swaps. At December 31, 2012 and 2011, the gross notional amount of derivative contracts for the Company s GMWB and GMAB provisions was $142.1 billion and $104.7 billion, respectively. The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the option contract. The following is a summary of the payments the Company is scheduled to make and receive for these options: (in millions) Premiums Payable Premiums Receivable 2013 $373 $ 57 2014 348 55 2015 320 54 2016 289 46 2017 238 41 2018-2027 785 104 Actual timing and payment amounts may differ due to future contract settlements, modifications or exercises of options prior to the full premium being paid or received. EIA and IUL products have returns tied to the performance of equity markets. As a result of fluctuations in equity markets, the obligation incurred by the Company related to EIA and IUL products will positively or negatively impact earnings over the life of these products. As a means of economically hedging its obligations under the provisions of these products, the Company enters into index options and futures contracts. The gross notional amount of EIA derivative contracts was $10 million and $25 million at December 31, 2012 and 2011, respectively. The gross notional amount of IUL derivative contracts was $200 million and $12 million at December 31, 2012 and 2011, respectively. F-40

RiverSource Life Insurance Company Embedded Derivatives Certain annuities contain GMAB and non-life contingent GMWB provisions, which are considered embedded derivatives. In addition, the equity component of the EIA and IUL product obligations are also considered embedded derivatives. These embedded derivatives are bifurcated from their host contracts and reported on the Consolidated Balance Sheets at fair value with changes in fair value reported in earnings. As discussed above, the Company uses derivatives to mitigate the financial statement impact of these embedded derivatives. Cash Flow Hedges The Company has amounts classified in accumulated other comprehensive income related to gains and losses associated with the effective portion of previously designated cash flow hedges. The Company reclassifies these amounts into income as the forecasted transactions impact earnings. During the years ended December 31, 2012 and 2011, the Company held no derivatives that were designated as cash flow hedges. At December 31, 2012, the Company expects to reclassify $6 million of deferred loss on derivative instruments from accumulated other comprehensive income to earnings during the next 12 months that will be recorded in net investment income. These were originally losses on derivative instruments related to interest rate swaptions. During the years ended December 31, 2012 and 2011, no hedge relationships were discontinued due to forecasted transactions no longer being expected to occur according to the original hedge strategy. For the years ended December 31, 2012, 2011 and 2010, the amount recognized in earnings on cash flow hedges due to ineffectiveness was $1 million, nil and nil, respectively. The following table presents a rollforward of unrealized derivative losses related to cash flow hedges included in accumulated other comprehensive income: (in millions) 2012 2011 2010 Net unrealized derivative losses at January 1 $(26) $(30) $(34) Reclassification of realized losses (1) 7 6 6 Income tax benefit (2) (2) (2) Net unrealized derivative losses at December 31 $(21) $(26) $(30) (1) Loss reclassified from accumulated other comprehensive income to net investment income on the Consolidated Statements of Income. Currently, the longest period of time over which the Company is hedging exposure to the variability in future cash flows is six years and relates to interest credited on forecasted fixed premium product sales. Credit Risk Credit risk associated with the Company s derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. To mitigate such risk, the Company has established guidelines and oversight of credit risk through a comprehensive enterprise risk management program that includes members of senior management. Key components of this program are to require preapproval of counterparties and the use of master netting arrangements and collateral arrangements whenever practical. As of December 31, 2012 and 2011, the Company held $262 million and $635 million, respectively, in cash and cash equivalents and recorded a corresponding liability in other liabilities for collateral the Company is obligated to return to counterparties. As of December 31, 2012 and 2011, the Company had accepted additional collateral consisting of various securities with a fair value of $387 million and $186 million, respectively, which are not reflected on the Consolidated Balance Sheets. As of December 31, 2012 and 2011, the Company s maximum credit exposure related to derivative assets after considering netting arrangements with counterparties and collateral arrangements was approximately $29 million and $61 million, respectively. Certain of the Company s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company s financial strength rating (or based on the debt rating of the Company s parent, Ameriprise Financial). Additionally, certain of the Company s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company does not maintain a specific financial strength rating or Ameriprise Financial s debt does not maintain a specific credit rating (generally an investment grade rating). If these termination provisions were to be triggered, the Company s counterparty could require immediate settlement of any net liability position. At December 31, 2012 and 2011, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $364 million and $106 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2012 and 2011 was $360 million and $98 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position at December 31, 2012 and 2011 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been $4 million and $8 million, respectively. F-41

RiverSource Life Insurance Company 17. INCOME TAXES The Company retrospectively adopted a new accounting standard for DAC in the first quarter of 2012. See Note 1 for the effect of the change on affected financial statement line items for prior periods retrospectively adjusted. Prior period disclosures presented below have been retrospectively adjusted for the new accounting standard. In 2012, the Company made a correction to tax expense primarily attributable to prior periods. Management has determined that the effect of this correction is not material to the Consolidated Financial Statements for all current and prior periods presented. See Note 1 for additional information on this correction. The Company qualifies as a life insurance company for federal income tax purposes. As such, the Company is subject to the Internal Revenue Code provisions applicable to life insurance companies. The Company provides for income taxes on a separate return basis, except that, under an agreement between Ameriprise Financial and the Company, tax benefits are recognized for losses to the extent they can be used in the consolidated return. It is the policy of Ameriprise Financial that it will reimburse its subsidiaries for any tax benefits recorded. The components of income tax provision were as follows: Years Ended December 31, (in millions) 2012 2011 2010 Current income tax: Federal $197 $137 $(167) State 7 3 3 Total current income tax 204 140 (164) Deferred income tax: Federal (38) 51 360 State (2) (1) (1) Total deferred income tax (40) 50 359 Total income tax provision $164 $190 $ 195 The principal reasons that the aggregate income tax provision is different from that computed by using the U.S. statutory rate of 35% are as follows: Years Ended December 31, 2012 2011 2010 Tax at U.S. statutory rate 35.0% 35.0% 35.0% Changes in taxes resulting from: Tax-exempt interest and dividend income (9.7) (12.6) (7.8) State taxes, net of federal benefit 0.4 0.1 0.1 Low income housing credit (4.7) (1.6) (1.6) Foreign tax credit, net of addback (0.5) (1.6) (1.4) Taxes applicable to prior years (2.5) (2.2) Other, net 2.1 (0.5) Income tax provision 20.1% 18.8% 22.1% The effective tax rates are lower than the statutory rate as a result of tax preferred items including the dividends received deduction, foreign tax credits and low income housing credits. The change in the effective tax rate for the year ended December 31, 2012 is primarily due to a $32 million out-of-period correction of tax related to securities lending activities partially offset by increased low income housing tax credits. See Note 1 for additional information on the out-of-period correction. F-42

RiverSource Life Insurance Company Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. The significant components of the Company s deferred income tax assets and liabilities are reflected in the following table: December 31, (in millions) 2012 2011 Deferred income tax assets: Liabilities for future policy benefits $1,295 $1,589 Investment related 161 Capital loss and tax credit carryforwards 5 30 State net operating losses 5 4 Gross deferred income tax assets 1,466 1,623 Less: valuation allowance (5) (4) Total deferred income tax assets 1,461 1,619 Deferred income tax liabilities: Deferred acquisition costs 677 639 Net unrealized gains on Available-for-Sale securities 676 501 Investment related 190 Deferred sales inducement costs 142 180 Other 29 49 Gross deferred income tax liabilities 1,524 1,559 Net deferred income tax assets (liabilities) $ (63) $ 60 A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: (in millions) 2012 2011 2010 Balance at January 1 $134 $ 83 $ (77) Additions (reductions) based on tax positions related to the current year 1 (1) Additions for tax positions of prior years 19 79 322 Reductions for tax positions of prior years (77) (7) (196) Settlements (12) (20) 34 Balance at December 31 $ 65 $134 $ 83 The significant decrease in the amount of gross unrecognized tax benefits is a result of reaching an agreement with the Internal Revenue Service ( IRS ) on the treatment of certain items under audit. If recognized, approximately $8 million, $12 million and $39 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2012, 2011 and 2010, respectively, would affect the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a reduction of $3 million, an increase of $57 million and a reduction of $8 million in interest and penalties for the years ended December 31, 2012, 2011 and 2010, respectively. At December 31, 2012 and 2011, the Company had a payable of $30 million and $33 million, respectively, related to accrued interest and penalties. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. Based on the current audit position of the Company, it is estimated that the total amount of gross unrecognized tax benefits may decrease by $63 million in the next 12 months. The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The IRS had previously completed its field examination of the 1997 through 2007 tax returns in recent years. However, for federal income tax purposes, these years except for 2007, continue to remain open as a consequence of certain issues under appeal. The IRS is in the process of completing the audit of the Company s income tax returns for 2008 and 2009 and began auditing 2010 and 2011 in the fourth quarter of 2012. The Company or certain of its subsidiaries state income tax returns are currently under examination by various jurisdictions for years ranging from 1997 through 2009 and remain open for the years after 2009. It is possible there will be corporate tax reform in the next few years. While impossible to predict, corporate tax reform is likely to include a reduction in the corporate tax rate coupled with reductions in tax preferred items. Any changes could have a material impact on the Company s income tax expense and deferred tax balances. F-43

RiverSource Life Insurance Company The items comprising other comprehensive income are presented net of the following income tax provision (benefit) amounts: Years Ended December 31, (in millions) 2012 2011 2010 Net unrealized securities gains $161 $89 $181 Net unrealized derivative losses (2) (2) (2) Net income tax provision $159 $87 $179 18. COMMITMENTS AND CONTINGENCIES At December 31, 2012 and 2011, the Company had no material commitments to purchase investments other than mortgage loan fundings. See Note 6 for additional information. The Company s annuity and life products all have minimum interest rate guarantees in their fixed accounts. As of December 31, 2012, these guarantees range up to 5.0%. Insurance companies have been the subject of increasing regulatory, legislative and judicial scrutiny. Numerous state and federal regulatory agencies have commenced examinations and other inquiries of insurance companies regarding sales and marketing practices (including sales to older consumers and disclosure practices), claims handling, and unclaimed property and escheatment practices and procedures. With regard to an industry-wide investigation of unclaimed property and escheatment practices and procedures, the Company is responding to regulatory audits, market conduct examinations and other inquires (including inquiries from the States of Minnesota and New York and a multistate insurance department examination). The Company has cooperated and will continue to cooperate with the applicable regulators regarding their inquiries. The Company is involved in the normal course of business in a number of other legal and arbitration proceedings concerning matters arising in connection with the conduct of its business activities. The Company believes that it is not a party to, nor are any of its properties the subject of, any pending legal, arbitration or regulatory investigation or proceeding that is likely to have a material adverse effect on its consolidated financial condition, results of operations or liquidity. Notwithstanding the foregoing, it is possible that the outcome of any current or future legal, arbitration or regulatory proceeding could have a material impact on results of operations in any particular reporting period as the proceedings are resolved. The Company is required by law to be a member of the guaranty fund association in every state where it is licensed to do business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely affected by the requirement to pay assessments to the guaranty fund associations. Uncertainty and volatility in the U.S. economy and financial markets in recent years have weakened the financial condition of numerous insurers, including insurers currently in receiverships, increasing the risk of triggering guaranty fund assessments. The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life and Health Insurance Guaranty Associations ( NOLHGA ) and the amount of its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated. Executive Life Insurance Company of New York ( ELNY ) was placed into rehabilitation by a New York state court in 1991. On April 16, 2012, the court issued an order converting the rehabilitation into a liquidation proceeding under a plan submitted by the New York insurance regulator with support from NOLHGA and the industry. During the second quarter of 2012, the Company established a liability for estimated guaranty fund assessments and a related premium tax asset, primarily associated with ELNY. At December 31, 2012, the estimated liability was $26 million and the related premium tax asset was $19 million. The expected period over which the assessments will be made and the related tax credits recovered is not known. At December 31, 2011, the net liability was not considered material. Uncertain economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of examinations of the Company or the insurance industry generally. F-44

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RiverSource Life Insurance Company 829 Ameriprise Financial Center Minneapolis, MN 55474 1-800-333-3437 RiverSource Distributors, Inc. (Distributor), Member FINRA. Insurance and annuity products are issued by RiverSource Life Insurance Company Both companies are affiliated with Ameriprise Financial Services, Inc. S-6199 R (4/13) 2008-2013 RiverSource Life Insurance Company. All rights reserved.