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2023 Annual Report

Privileged Assets^® Select Annuity

This wrapper contains an annual report.


ANN9079_12_C01_(05/24)		Issued by: RiverSource Life Insurance Co. of New York

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Annual Financial Information

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF DIRECTORS OF RIVERSOURCE LIFE INSURANCE CO. OF NEW YORK AND

THE CONTRACT OWNERS OF RIVERSOURCE OF NEW YORK VARIABLE ANNUITY ACCOUNT 1

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities of each of the divisions of RiverSource of New York Variable Annuity Account 1, as indicated in Note 1, offered through Privileged Assets^® Select Annuity, as of December 31, 2023, and the related statements of operations and of changes in net assets for each of the periods indicated in Note 1, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the divisions of RiverSource of New York Variable Annuity Account 1 as of December 31, 2023, and the results of each of their operations and the changes in each of their net assets for each of the periods indicated in Note 1 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the RiverSource Life Insurance Co. of New York management. Our responsibility is to express an opinion on the financial statements of each of the divisions of the RiverSource of New York Variable Annuity Account 1 based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to each of the divisions of the RiverSource of New York Variable Annuity Account 1 in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of investments owned as of December 31, 2023 by correspondence with the transfer agents of the investee mutual funds. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Minneapolis, Minnesota

April 22, 2024

We have served as the auditor of one or more of the divisions of RiverSource of New York Variable Annuity Account 1 since 2010.



PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT			1

Statement of Assets and Liabilities


December 31, 2023	AC VP Cap Appr, Cl I		AC VP Val, Cl I		Col VP Bal, Cl 3		Col VP Disciplined Core, Cl 3		Col VP Govt Money Mkt, Cl 3
Assets
Investments, at fair value^(1),(2)	$	97,836	$	159,679	$	120,980	$	142,843	$	26,507
Dividends receivable		—		—		—		—		4
Receivable for share redemptions		77		127		96		113		21
Total assets		97,913		159,806		121,076		142,956		26,532

Liabilities
Payable to RiverSource Life of NY for mortality and expense risk fee		77		127		96		113		21
Total liabilities		77		127		96		113		21
Net assets applicable to certificates in accumulation period		97,836		159,679		120,980		142,843		26,511
Total net assets	$	97,836	$	159,679	$	120,980	$	142,843	$	26,511
⁽¹⁾ Investment shares		6,880		13,099		2,867		1,622		26,507
⁽²⁾ Investments, at cost	$	93,568	$	111,785	$	58,088	$	47,370	$	26,510

December 31, 2023 (continued)	Col VP Inter Bond, Cl 3		Col VP Overseas Core, Cl 3		Col VP Select Mid Cap Gro, Cl 3		Invesco VI Core Eq, Ser I		Janus Henderson VIT Gbl Res, Inst
Assets
Investments, at fair value^(1),(2)	$	26,759	$	20,272	$	126,367	$	195,218	$	166,502
Dividends receivable		—		—		—		—		—
Receivable for share redemptions		21		16		100		155		132
Total assets		26,780		20,288		126,467		195,373		166,634

Liabilities
Payable to RiverSource Life of NY for mortality and expense risk fee		21		16		100		155		132
Total liabilities		21		16		100		155		132
Net assets applicable to certificates in accumulation period		26,759		20,272		126,367		195,218		166,502
Total net assets	$	26,759	$	20,272	$	126,367	$	195,218	$	166,502
⁽¹⁾ Investment shares		3,112		1,524		2,831		6,665		2,725
⁽²⁾ Investments, at cost	$	31,921	$	20,113	$	74,032	$	191,661	$	114,938

See accompanying notes to financial statements.



2		PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT

Statement of Assets and Liabilities


December 31, 2023 (continued)	Janus Henderson VIT Res, Inst
Assets
Investments, at fair value^(1),(2)	$	517,882
Dividends receivable		—
Receivable for share redemptions		411
Total assets		518,293

Liabilities
Payable to RiverSource Life of NY for mortality and expense risk fee		411
Total liabilities		411
Net assets applicable to certificates in accumulation period		517,882
Total net assets	$	517,882
⁽¹⁾ Investment shares		11,470
⁽²⁾ Investments, at cost	$	357,191

See accompanying notes to financial statements.



PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT			3

Statement of Operations


Year ended December 31, 2023	AC VP Cap Appr, Cl I			AC VP Val, Cl I			Col VP Bal, Cl 3			Col VP Disciplined Core, Cl 3			Col VP Govt Money Mkt, Cl 3
Investment income
Dividend income	$	—		$	3,658		$	—		$	—		$	1,160
Variable account expenses		909			1,539			1,104			1,300			257
Investment income (loss) — net		(909	)		2,119			(1,104	)		(1,300	)		903

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		4,810			9,033			1,104			3,018			217
Cost of investments sold		5,022			6,500			579			1,120			217
Net realized gain (loss) on sales of investments		(212	)		2,533			525			1,898			—
Distributions from capital gains		130			11,998			—			—			—
Net change in unrealized appreciation (depreciation) of investments		17,168			(4,720	)		20,705			26,119			—
Net gain (loss) on investments		17,086			9,811			21,230			28,017			—
Net increase (decrease) in net assets resulting from operations	$	16,177		$	11,930		$	20,126		$	26,717		$	903

Year ended December 31, 2023 (continued)	Col VP Inter Bond, Cl 3			Col VP Overseas Core, Cl 3			Col VP Select Mid Cap Gro, Cl 3			Invesco VI Core Eq, Ser I			Janus Henderson VIT Gbl Res, Inst
Investment income
Dividend income	$	550		$	302		$	—		$	1,331		$	1,595
Variable account expenses		245			174			1,164			1,792			1,752
Investment income (loss) — net		305			128			(1,164	)		(461	)		(157	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales		245			174			3,316			2,988			38,946
Cost of investments sold		305			186			2,133			3,093			28,973
Net realized gain (loss) on sales of investments		(60	)		(12	)		1,183			(105	)		9,973
Distributions from capital gains		—			—			—			4,297			5,217
Net change in unrealized appreciation (depreciation) of investments		1,086			2,250			24,465			31,634			23,953
Net gain (loss) on investments		1,026			2,238			25,648			35,826			39,143
Net increase (decrease) in net assets resulting from operations	$	1,331		$	2,366		$	24,484		$	35,365		$	38,986

Year ended December 31, 2023 (continued)													Janus Henderson VIT Res, Inst
Investment income
Dividend income													$	727
Variable account expenses														4,911
Investment income (loss) — net														(4,184	)

Realized and unrealized gain (loss) on investments — net
Realized gain (loss) on sales of investments:
Proceeds from sales														71,734
Cost of investments sold														54,958
Net realized gain (loss) on sales of investments														16,776
Distributions from capital gains														—
Net change in unrealized appreciation (depreciation) of investments														154,153
Net gain (loss) on investments														170,929
Net increase (decrease) in net assets resulting from operations													$	166,745

See accompanying notes to financial statements.



4		PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2023	AC VP Cap Appr, Cl I			AC VP Val, Cl I			Col VP Bal, Cl 3			Col VP Disciplined Core, Cl 3			Col VP Govt Money Mkt, Cl 3
Operations
Investment income (loss) — net	$	(909	)	$	2,119		$	(1,104	)	$	(1,300	)	$	903
Net realized gain (loss) on sales of investments		(212	)		2,533			525			1,898			—
Distributions from capital gains		130			11,998			—			—			—
Net change in unrealized appreciation (depreciation) of investments		17,168			(4,720	)		20,705			26,119			—
Net increase (decrease) in net assets resulting from operations		16,177			11,930			20,126			26,717			903

Certificate transactions
Certificate purchase payments		2,104			889			1,380			1,004			938
Certificate charges		(72	)		(49	)		—			(8	)		(3	)
Certificate terminations:
Surrender benefits		(3,986	)		(7,444	)		—			(1,500	)		—
Increase (decrease) from transactions		(1,954	)		(6,604	)		1,380			(504	)		935
Net assets at beginning of year		83,613			154,353			99,474			116,630			24,673
Net assets at end of year	$	97,836		$	159,679		$	120,980		$	142,843		$	26,511

Accumulation unit activity
Units outstanding at beginning of year		15,433			23,550			27,414			28,927			20,356
Units purchased		361			135			364			228			766
Units redeemed		(682	)		(1,130	)		—			(351	)		(3	)
Units outstanding at end of year		15,112			22,555			27,778			28,804			21,119

See accompanying notes to financial statements.



PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT			5

Statement of Changes in Net Assets


Year ended December 31, 2023 (continued)	Col VP Inter Bond, Cl 3			Col VP Overseas Core, Cl 3			Col VP Select Mid Cap Gro, Cl 3			Invesco VI Core Eq, Ser I			Janus Henderson VIT Gbl Res, Inst
Operations
Investment income (loss) — net	$	305		$	128		$	(1,164	)	$	(461	)	$	(157	)
Net realized gain (loss) on sales of investments		(60	)		(12	)		1,183			(105	)		9,973
Distributions from capital gains		—			—			—			4,297			5,217
Net change in unrealized appreciation (depreciation) of investments		1,086			2,250			24,465			31,634			23,953
Net increase (decrease) in net assets resulting from operations		1,331			2,366			24,484			35,365			38,986

Certificate transactions
Certificate purchase payments		1,713			3,121			1,219			2,639			938
Certificate charges		—			—			(11	)		(15	)		(52	)
Certificate terminations:
Surrender benefits		—			—			(2,239	)		(1,375	)		(37,218	)
Increase (decrease) from transactions		1,713			3,121			(1,031	)		1,249			(36,332	)
Net assets at beginning of year		23,715			14,785			102,914			158,604			163,848
Net assets at end of year	$	26,759		$	20,272		$	126,367		$	195,218		$	166,502

Accumulation unit activity
Units outstanding at beginning of year		12,563			7,861			39,611			64,023			42,585
Units purchased		918			1,566			429			990			224
Units redeemed		—			—			(767	)		(494	)		(8,333	)
Units outstanding at end of year		13,481			9,427			39,273			64,519			34,476

See accompanying notes to financial statements.



6		PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2023 (continued)	Janus Henderson VIT Res, Inst
Operations
Investment income (loss) — net	$	(4,184	)
Net realized gain (loss) on sales of investments		16,776
Distributions from capital gains		—
Net change in unrealized appreciation (depreciation) of investments		154,153
Net increase (decrease) in net assets resulting from operations		166,745

Certificate transactions
Certificate purchase payments		3,351
Certificate charges		(92	)
Certificate terminations:
Surrender benefits		(65,980	)
Increase (decrease) from transactions		(62,721	)
Net assets at beginning of year		413,858
Net assets at end of year	$	517,882

Accumulation unit activity
Units outstanding at beginning of year		82,732
Units purchased		598
Units redeemed		(10,296	)
Units outstanding at end of year		73,034

See accompanying notes to financial statements.



PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT			7

Statement of Changes in Net Assets


Year ended December 31, 2022	AC VP Cap Appr, Cl I			AC VP Val, Cl I			Col VP Bal, Cl 3			Col VP Disciplined Core, Cl 3			Col VP Govt Money Mkt, Cl 3
Operations
Investment income (loss) — net	$	(869	)	$	1,671		$	(1,057	)	$	(1,236	)	$	44
Net realized gain (loss) on sales of investments		(74	)		551			12,833			643			—
Distributions from capital gains		12,261			12,016			—			—			—
Net change in unrealized appreciation or depreciation of investments		(44,070	)		(14,928	)		(32,939	)		(27,632	)		—
Net increase (decrease) in net assets resulting from operations		(32,752	)		(690	)		(21,163	)		(28,225	)		44

Certificate transactions
Certificate purchase payments		3,279			901			644			1,626			1,829
Certificate charges		(87	)		(51	)		(2	)		(20	)		(4	)
Increase (decrease) from transactions		3,192			850			642			1,606			1,825
Net assets at beginning of year		113,173			154,193			119,995			143,249			22,804
Net assets at end of year	$	83,613		$	154,353		$	99,474		$	116,630		$	24,673

Accumulation unit activity
Units outstanding at beginning of year		14,868			23,418			27,260			28,552			18,844
Units purchased		581			140			155			380			1,516
Units redeemed		(16	)		(8	)		(1	)		(5	)		(4	)
Units outstanding at end of year		15,433			23,550			27,414			28,927			20,356

See accompanying notes to financial statements.



8		PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT

Statement of Changes in Net Assets


Year ended December 31, 2022 (continued)	Col VP Inter Bond, Cl 3			Col VP Overseas Core, Cl 3			Col VP Select Mid Cap Gro, Cl 3			Invesco VI Core Eq, Ser I			Janus Henderson VIT Gbl Res, Inst
Operations
Investment income (loss) — net	$	534		$	(34	)	$	(1,096	)	$	(84	)	$	109
Net realized gain (loss) on sales of investments		(44	)		2,043			323			29			437
Distributions from capital gains		17			1,094			—			26,749			19,010
Net change in unrealized appreciation or depreciation of investments		(5,710	)		(5,662	)		(45,870	)		(68,676	)		(60,667	)
Net increase (decrease) in net assets resulting from operations		(5,203	)		(2,559	)		(46,643	)		(41,982	)		(41,111	)

Certificate transactions
Certificate purchase payments		—			520			2,379			4,874			1,830
Certificate charges		(1	)		(7	)		(20	)		(17	)		(69	)
Increase (decrease) from transactions		(1	)		513			2,359			4,857			1,761
Net assets at beginning of year		28,919			16,831			147,198			195,729			203,198
Net assets at end of year	$	23,715		$	14,785		$	102,914		$	158,604		$	163,848

Accumulation unit activity
Units outstanding at beginning of year		12,564			7,548			38,749			62,152			42,138
Units purchased		—			317			869			1,877			464
Units redeemed		(1	)		(4	)		(7	)		(6	)		(17	)
Units outstanding at end of year		12,563			7,861			39,611			64,023			42,585

See accompanying notes to financial statements.



PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT			9

Statement of Changes in Net Assets


Year ended December 31, 2022 (continued)	Janus Henderson VIT Res, Inst
Operations
Investment income (loss) — net	$	(3,792	)
Net realized gain (loss) on sales of investments		711
Distributions from capital gains		81,660
Net change in unrealized appreciation or depreciation of investments		(258,516	)
Net increase (decrease) in net assets resulting from operations		(179,937	)

Certificate transactions
Certificate purchase payments		7,580
Certificate charges		(111	)
Increase (decrease) from transactions		7,469
Net assets at beginning of year		586,326
Net assets at end of year	$	413,858

Accumulation unit activity
Units outstanding at beginning of year		81,358
Units purchased		1,393
Units redeemed		(19	)
Units outstanding at end of year		82,732

See accompanying notes to financial statements.



10		PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT

Notes to Financial Statements

1. ORGANIZATION

RiverSource of New York Variable Annuity Account 1 (the Account) was established under New York law as a segregated asset account of RiverSource Life Insurance Co. of New York (RiverSource Life of NY). 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 New York State Department of Financial Services.

The Account is used as a funding vehicle for Privileged Assets^® Select Annuity (PASA) certificates issued by RiverSource Life of NY.

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 and the corresponding division name are provided below. Each division is comprised of subaccounts. Individual variable annuity accounts invest in subaccounts. For each division, the financial statements are comprised of a statement of assets and liabilities as of December 31, 2023, a related statement of operations for the year then ended and statements of changes in net assets for each of the two years in the period then ended, all presented to reflect a full twelve month period. These financial statements represent all divisions in the Account.


Division		Fund
AC VP Cap Appr, Cl I		American Century VP Capital Appreciation, Class I⁽¹⁾
AC VP Val, Cl I		American Century VP Value, Class I⁽²⁾
Col VP Bal, Cl 3		Columbia Variable Portfolio – Balanced Fund (Class 3)
Col VP Disciplined Core, Cl 3		Columbia Variable Portfolio – Disciplined Core Fund (Class 3)
Col VP Govt Money Mkt, Cl 3		Columbia Variable Portfolio – Government Money Market Fund (Class 3)
Col VP Inter Bond, Cl 3		Columbia Variable Portfolio – Intermediate Bond Fund (Class 3)
Col VP Overseas Core, Cl 3		Columbia Variable Portfolio – Overseas Core Fund (Class 3)
Col VP Select Mid Cap Gro, Cl 3		Columbia Variable Portfolio – Select Mid Cap Growth Fund (Class 3)
Invesco VI Core Eq, Ser I		Invesco V.I. Core Equity Fund, Series I Shares
Janus Henderson VIT Gbl Res, Inst		Janus Henderson VIT Global Research Portfolio: Institutional Shares
Janus Henderson VIT Res, Inst		Janus Henderson VIT Research Portfolio: Institutional Shares

⁽¹⁾	American Century VP Capital Appreciation, Class I is scheduled to reorganize into LVIP American Century Capital Appreciation Fund, Standard Class II sometime during the second quarter of 2024.

⁽²⁾	American Century VP Value, Class I is scheduled to reorganize into LVIP American Century Value Fund, Standard Class II sometime during the second quarter of 2024.

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 of NY.

RiverSource Life of NY serves as issuer of the certificates.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Investments in the Funds

Investment transactions are accounted for on the date the shares are purchased and sold. Realized gains and losses on the sales of investments are computed using the average cost method. Income from dividends and gains from realized capital gain distributions are reinvested in additional shares of the Funds and are recorded as income by the divisions on the ex-dividend date.

Unrealized appreciation or depreciation of investments in the accompanying financial statements represents the division’s share of the Funds’ undistributed net investment income, undistributed realized gain or loss and the unrealized appreciation or depreciation on their investment securities.

The Account categorizes its fair value measurements according to a three-level hierarchy. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the fair value measurement. 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 measured at fair value using the net asset value per share (or its equivalent) as a practical expedient and are therefore not categorized in the fair value hierarchy. There were no transfers between levels in the period ended December 31, 2023.



PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT			11

Federal Income Taxes

RiverSource Life of NY is taxed as a life insurance company. The Account is treated as part of RiverSource Life of NY 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 certificates. Based on this, no charge is being made currently to the Account for federal income taxes. RiverSource Life of NY will review periodically the status of this policy. In the event of changes in the tax law, a charge may be made in future years for any federal income taxes that would be attributable to the certificates.

Subsequent Events

Management has evaluated Account related events and transactions that occurred through the date the financial statements were issued. Management noted there were no items requiring adjustments or additional 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 PASA certificates, RiverSource Life of NY deducts a daily mortality and expense risk fee equal, on an annual basis, to 1.00% of the average daily net assets of each subaccount.

4. CERTIFICATE CHARGES

RiverSource Life of NY deducts a certificate administrative charge of $30 per year on the certificate anniversary. This charge reimburses RiverSource Life of NY for expenses incurred in establishing and maintaining the annuity records. The charge may be waived based upon the underlying certificate value.

5. RELATED PARTY TRANSACTIONS

RiverSource Life of NY is a wholly-owned subsidiary of RiverSource Life Insurance Company, which is a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial).

The following table reflects fees paid by certain affiliated funds to Ameriprise Financial and its affiliates.


Fee Agreement:		Fees Paid To:
Management Agreement		Columbia Management Investment Advisers, LLC
Shareholder Services Agreement		Columbia Management Investment Services Corp.
Plan and Agreement of Distribution		Columbia Management Investment Distributors, Inc.
Investment Advisory Agreement		Columbia Wanger Asset Management, LLC
Administrative Services Agreement		Columbia Wanger Asset Management, LLC

6. INVESTMENT TRANSACTIONS

The divisions’ purchases of Funds’ shares, including reinvestment of dividend distributions, for the year ended December 31, 2023 were as follows:


Division	Purchases
AC VP Cap Appr, Cl I	$	2,077
AC VP Val, Cl I		16,546
Col VP Bal, Cl 3		1,380
Col VP Disciplined Core, Cl 3		1,214
Col VP Govt Money Mkt, Cl 3		2,053
Col VP Inter Bond, Cl 3		2,263


Division	Purchases
Col VP Overseas Core, Cl 3	$	3,423
Col VP Select Mid Cap Gro, Cl 3		1,121
Invesco VI Core Eq, Ser I		8,073
Janus Henderson VIT Gbl Res, Inst		7,674
Janus Henderson VIT Res, Inst		4,829



12		PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT

7. FINANCIAL HIGHLIGHTS

The table below shows certain financial information regarding the divisions.


	At December 31						For the year ended December 31
	Units (000s)		Accumulation unit value		Net assets (000s)		Investment income ratio⁽¹⁾			Expense ratio⁽²⁾			Total return⁽³⁾
AC VP Cap Appr, Cl I
2023		15		$6.47		$98		—			1.00	%		19.49	%
2022		15		$5.42		$84		—			1.00	%		(28.82	%)
2021		15		$7.61		$113		—			1.00	%		10.05	%
2020		15		$6.92		$103		—			1.00	%		41.04	%
2019		15		$4.90		$71		—			1.00	%		34.22	%
AC VP Val, Cl I
2023		23		$7.08		$160		2.39	%		1.00	%		8.02	%
2022		24		$6.56		$154		2.10	%		1.00	%		(0.46	%)
2021		23		$6.59		$154		1.75	%		1.00	%		23.27	%
2020		24		$5.34		$127		2.34	%		1.00	%		(0.03	%)
2019		24		$5.34		$126		2.12	%		1.00	%		25.77	%
Col VP Bal, Cl 3
2023		28		$4.36		$121		—			1.00	%		20.03	%
2022		27		$3.63		$99		—			1.00	%		(17.57	%)
2021		27		$4.40		$120		—			1.00	%		13.60	%
2020		27		$3.88		$105		—			1.00	%		16.42	%
2019		27		$3.33		$91		—			1.00	%		21.56	%
Col VP Disciplined Core, Cl 3
2023		29		$4.96		$143		—			1.00	%		23.00	%
2022		29		$4.03		$117		—			1.00	%		(19.64	%)
2021		29		$5.02		$143		—			1.00	%		31.25	%
2020		29		$3.82		$110		—			1.00	%		12.85	%
2019		28		$3.39		$96		—			1.00	%		23.39	%
Col VP Govt Money Mkt, Cl 3
2023		21		$1.26		$27		4.51	%		1.00	%		3.56	%
2022		20		$1.21		$25		1.19	%		1.00	%		0.16	%
2021		19		$1.21		$23		0.01	%		1.00	%		(0.97	%)
2020		18		$1.22		$22		0.24	%		1.00	%		(0.72	%)
2019		17		$1.23		$21		1.71	%		1.00	%		0.75	%
Col VP Inter Bond, Cl 3
2023		13		$1.99		$27		2.25	%		1.00	%		5.14	%
2022		13		$1.89		$24		3.10	%		1.00	%		(17.99	%)
2021		13		$2.31		$29		3.19	%		1.00	%		(1.34	%)
2020		13		$2.34		$30		2.76	%		1.00	%		11.33	%
2019		13		$2.10		$28		3.12	%		1.00	%		8.03	%
Col VP Overseas Core, Cl 3
2023		9		$2.15		$20		1.74	%		1.00	%		14.32	%
2022		8		$1.88		$15		0.78	%		1.00	%		(15.65	%)
2021		8		$2.23		$17		1.19	%		1.00	%		8.79	%
2020		7		$2.05		$15		1.57	%		1.00	%		7.84	%
2019		7		$1.90		$14		1.96	%		1.00	%		24.08	%
Col VP Select Mid Cap Gro, Cl 3
2023		39		$3.22		$126		—			1.00	%		23.84	%
2022		40		$2.60		$103		—			1.00	%		(31.61	%)
2021		39		$3.80		$147		—			1.00	%		15.25	%
2020		35		$3.30		$114		—			1.00	%		33.89	%
2019		20		$2.46		$50		—			1.00	%		33.68	%
Invesco VI Core Eq, Ser I
2023		65		$3.03		$195		0.75	%		1.00	%		22.14	%
2022		64		$2.48		$159		0.94	%		1.00	%		(21.34	%)
2021		62		$3.15		$196		0.68	%		1.00	%		26.47	%
2020		61		$2.49		$152		1.38	%		1.00	%		12.72	%
2019		60		$2.21		$133		0.97	%		1.00	%		27.68	%



PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT			13


	At December 31						For the year ended December 31
	Units (000s)		Accumulation unit value		Net assets (000s)		Investment income ratio⁽¹⁾			Expense ratio⁽²⁾			Total return⁽³⁾
Janus Henderson VIT Gbl Res, Inst
2023		34		$4.83		$167		0.92	%		1.00	%		25.52	%
2022		43		$3.85		$164		1.06	%		1.00	%		(20.21	%)
2021		42		$4.82		$203		0.53	%		1.00	%		16.92	%
2020		42		$4.12		$173		0.73	%		1.00	%		18.87	%
2019		45		$3.47		$156		1.00	%		1.00	%		27.76	%
Janus Henderson VIT Res, Inst
2023		73		$7.09		$518		0.15	%		1.00	%		41.75	%
2022		83		$5.00		$414		0.16	%		1.00	%		(30.59	%)
2021		81		$7.21		$586		0.10	%		1.00	%		19.14	%
2020		81		$6.05		$489		0.41	%		1.00	%		31.63	%
2019		83		$4.60		$381		0.46	%		1.00	%		34.17	%

⁽¹⁾

These amounts represent the dividends, excluding distributions of capital gains, received by the division from the underlying fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude variable account expenses that result in direct reductions in the unit values. The recognition of investment income by the division is affected by the timing of the declaration of dividends by the underlying fund in which the division invests. These ratios are annualized for periods less than one year.

⁽²⁾

These ratios represent the annualized certificate 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 certificate owner accounts through the redemption of units and expenses of the underlying fund are excluded.

⁽³⁾

These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period.



14		PRIVILEGED ASSETS SELECT ANNUITY – 2023 ANNUAL REPORT

REPORT OF INDEPENDENT AUDITORS

TO THE BOARD OF DIRECTORS AND SHAREHOLDER OF RIVERSOURCE LIFE INSURANCE CO. OF NEW YORK

Opinion

We have audited the accompanying financial statements of RiverSource Life Insurance Co. of New York (the “Company”), which comprise the balance sheets as of December 31, 2023 and 2022, and the related statements of income, of comprehensive income, of shareholder’s equity and of cash flows for each of the three years in the period ended December 31, 2023, including the related notes (collectively referred to as the “financial statements”).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023 in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter

As discussed in Note 3 to the financial statements, the Company changed the manner in which it accounts for long-duration insurance contracts in 2023. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date the financial statements are available to be issued.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with US GAAS, we:

•

Exercise professional judgment and maintain professional skepticism throughout the audit.

F-1

•

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

•

Obtain an understanding of internal control relevant to the audit in order to design 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. Accordingly, no such opinion is expressed.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

•

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

/s/ PricewaterhouseCoopers LLP

Minneapolis, Minnesota

April 19, 2024

F-2

RiverSource Life Insurance Co. of New York

BALANCE SHEETS

(in thousands, except share amounts)


December 31,	2023			2022⁽¹⁾
Assets
Investments:
Available-for-Sale:
Fixed maturities, at fair value (amortized cost: 2023, $1,680,232; 2022, $1,678,575; allowance for credit losses: 2023, $365; 2022, $572)	$	1,585,541		$	1,528,743
Mortgage loans, at amortized cost (allowance for credit losses: 2023, $554; 2022, $965)		144,910			157,068
Policy loans		53,615			50,791
Other investments		597			547
Total investments		1,784,663			1,737,149
Cash and cash equivalents		80,082			204,760
Market risk benefits		94,641			64,498
Reinsurance recoverables (allowance for credit losses: 2023, $3,800; 2022, $3,500)		205,915			195,547
Receivables		7,863			8,569
Accrued investment income		15,376			14,722
Deferred acquisition costs		166,933			174,038
Other assets		160,302			194,909
Separate account assets		4,515,324			4,230,890
Total assets	$	7,031,099		$	6,825,082

Liabilities and Shareholder’s Equity
Liabilities:
Policyholder account balances, future policy benefits and claims	$	1,916,999		$	1,949,996
Market risk benefits		47,166			68,635
Other liabilities		127,513			180,631
Separate account liabilities		4,515,324			4,230,890
Total liabilities		6,607,002			6,430,152
Shareholder’s Equity:
Common stock, $10 par value; 200,000 shares authorized, issued and outstanding		2,000			2,000
Additional paid-in capital		106,926			106,926
Retained earnings		405,131			408,564
Accumulated other comprehensive income (loss), net of tax		(89,960	)		(122,560	)
Total shareholder’s equity		424,097			394,930
Total liabilities and shareholder’s equity	$	7,031,099		$	6,825,082

⁽¹⁾	Certain prior period amounts have been restated. See Note 3 for more information.

See Notes to Financial Statements.

F-3

RiverSource Life Insurance Co. of New York

STATEMENTS OF INCOME

(in thousands)


Years Ended December 31,	2023		2022⁽¹⁾			2021⁽¹⁾
Revenues
Premiums	$	21,413	$	16,693		$	15,416
Net investment income		84,585		72,209			65,369
Policy and contract charges		123,750		125,296			138,136
Other revenues		22,102		23,617			27,360
Net realized investment gains (losses)		187		(3,452	)		11,580
Total revenues		252,037		234,363			257,861

Benefits and Expenses
Benefits, claims, losses and settlement expenses		48,540		37,994			42,481
Interest credited to fixed accounts		51,609		51,588			47,165
Remeasurement (gains) losses of future policy benefit reserves		2,003		2,225			55
Change in fair value of market risk benefits		45,118		40,393			(8,080	)
Amortization of deferred acquisition costs		14,822		15,529			15,974
Other insurance and operating expenses		35,823		34,835			36,639
Total benefits and expenses		197,915		182,564			134,234
Pretax income (loss)		54,122		51,799			123,627
Income tax provision (benefit)		7,555		7,380			23,399
Net income	$	46,567	$	44,419		$	100,228

⁽¹⁾	Certain prior period amounts have been restated. See Note 3 for more information.

See Notes to Financial Statements.

STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)


Years Ended December 31,	2023			2022⁽¹⁾			2021⁽¹⁾
Net income	$	46,567		$	44,419		$	100,228
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on securities		41,675			(213,461	)		(49,020	)
Effect of changes in discount rate assumptions on certain long-duration contracts		(6,125	)		61,911			17,386
Effect of changes in instrument-specific credit risk on market risk benefits		(2,950	)		18,837			4,564
Total other comprehensive income (loss), net of tax		32,600			(132,713	)		(27,070	)
Total comprehensive income (loss)	$	79,167		$	(88,294	)	$	73,158

⁽¹⁾	Certain prior period amounts have been restated. See Note 3 for more information.

See Notes to Financial Statements.

F-4

RiverSource Life Insurance Co. of New York

STATEMENTS OF SHAREHOLDER’S EQUITY

(in thousands)


	Common Stock		Additional Paid-In Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Balances at January 1, 2021	$	2,000	$	106,926	$	350,273		$	90,117		$	549,316
Cumulative effect of adoption of long-duration contracts guidance		—		—		(23,356	)		(52,894	)		(76,250	)
Net income		—		—		100,228			—			100,228
Other comprehensive loss, net of tax		—		—		—			(27,070	)		(27,070	)
Balances at December 31, 2021⁽¹⁾		2,000		106,926		427,145			10,153			546,224
Net income		—		—		44,419			—			44,419
Other comprehensive loss, net of tax		—		—		—			(132,713	)		(132,713	)
Cash dividend to RiverSource Life Insurance Company		—		—		(63,000	)		—			(63,000	)
Balances at December 31, 2022⁽¹⁾		2,000		106,926		408,564			(122,560	)		394,930
Net income		—		—		46,567			—			46,567
Other comprehensive income, net of tax		—		—		—			32,600			32,600
Cash dividend to RiverSource Life Insurance Company		—		—		(50,000	)		—			(50,000	)
Balances at December 31, 2023	$	2,000	$	106,926	$	405,131		$	(89,960	)	$	424,097

⁽¹⁾	Certain prior period amounts have been restated. See Note 3 for more information.

See Notes to Financial Statements.

F-5

RiverSource Life Insurance Co. of New York

STATEMENTS OF CASH FLOWS

(in thousands)


Years Ended December 31,	2023			2022⁽¹⁾			2021⁽¹⁾
Cash Flows from Operating Activities
Net income	$	46,567		$	44,419		$	100,228
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net		2,049			2,971			2,903
Deferred income tax (benefit) expense		(1,519	)		(4,674	)		112
Contractholder and policyholder charges, non-cash		(27,744	)		(27,193	)		(26,825	)
(Gain) loss from equity method investments		(72	)		96			(44	)
Net realized investment (gains) losses		431			1,918			(11,901	)
Impairments and provision for loan losses		(618	)		1,534			321
Changes in operating assets and liabilities:
Deferred acquisition costs		7,105			6,074			1,783
Policyholder account balances, future policy benefits and claims, and market risk benefits, net		(42,580	)		(46,805	)		(89,204	)
Derivatives, net of collateral		(36,844	)		(136,006	)		93,328
Reinsurance recoverables		(4,765	)		(9,928	)		(3,151	)
Receivables		553			5,261			(5,580	)
Accrued investment income		(654	)		(1,282	)		213
Current income tax, net		(3,253	)		3,339			(19,210	)
Other, net		4,121			3,254			12,338
Net cash provided by (used in) operating activities		(57,223	)		(157,022	)		55,311

Cash Flows from Investing Activities
Available-for-Sale securities:
Proceeds from sales		902			152,436			15,898
Maturities, sinking fund payments and calls		115,763			229,741			322,473
Purchases		(120,653	)		(356,097	)		(361,731	)
Proceeds from maturities and repayments of mortgage loans		15,195			12,845			18,041
Funding of mortgage loans		(2,626	)		(14,299	)		(5,700	)
Proceeds from sales of other investments		22			—			47
Purchase of other investments		—			(131	)		(9	)
Change in policy loans, net		(2,824	)		1,277			(3,356	)
Net cash provided by (used in) investing activities		5,779			25,772			(14,337	)

Cash Flows from Financing Activities
Policyholder account balances:
Deposits and other additions		105,284			92,918			119,937
Net transfers from (to) separate accounts		(5,907	)		(3,275	)		(13,581	)
Surrenders and other benefits		(132,933	)		(90,640	)		(91,215	)
Proceeds from line of credit with Ameriprise Financial, Inc.		—			—			5,800
Payments on line of credit with Ameriprise Financial, Inc.		—			—			(5,800	)
Cash received for purchased options with deferred premiums		10,823			30,753			53,361
Cash paid for purchased options with deferred premiums		(501	)		(983	)		(1,248	)
Cash dividends to RiverSource Life Insurance Company		(50,000	)		(63,000	)		—
Net cash provided by (used in) financing activities		(73,234	)		(34,227	)		67,254
Net increase (decrease) in cash and cash equivalents		(124,678	)		(165,477	)		108,228
Cash and cash equivalents at beginning of period		204,760			370,237			262,009
Cash and cash equivalents at end of period	$	80,082		$	204,760		$	370,237
Supplemental Disclosures:
Income taxes paid (received), net	$	12,777		$	10,115		$	42,497

⁽¹⁾	Certain prior period amounts have been restated. See Note 3 for more information.

See Notes to Financial Statements.

F-6

RiverSource Life Insurance Co. of New York

NOTES TO FINANCIAL STATEMENTS

1. NATURE OF BUSINESS AND BASIS OF PRESENTATION

RiverSource Life Insurance Co. of New York (the “Company”) is a stock life insurance company which is domiciled and holds a Certificate of Authority in the State of New York. The Company is a wholly owned subsidiary of RiverSource Life Insurance Company (“RiverSource Life”), which is domiciled in Minnesota. RiverSource Life is a wholly owned subsidiary of Ameriprise Financial, Inc. (“Ameriprise Financial”). The Company issues insurance and annuity products to customers in the State of New York.

The accompanying 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 the New York State Department of Financial Services (“New York Department”) (the Company’s primary regulator) as described in Note 15. Certain reclassifications of prior period amounts have been made to conform with the current presentation.

The Company evaluated events or transactions that occurred after the balance sheet date for potential recognition or disclosure through April 19, 2024, the date the financial statements were issued. No subsequent events or transactions requiring recognition or disclosure were identified.

The Company’s principal products are variable annuities, universal life (“UL”) insurance, including indexed universal life (“IUL”) and variable universal life (“VUL”) insurance, which are issued primarily to individuals. Waiver of premium and accidental death benefit riders are generally available with UL products, in addition to other benefit riders. Variable annuity contract purchasers can choose to add an optional guaranteed minimum death benefit (“GMDB”) rider to their contract.

The Company also offers payout annuities, term life insurance and disability income (“DI”) insurance.

The Company’s business is sold through the advisor network of Ameriprise Financial Services, LLC (“AFS”), a subsidiary of Ameriprise Financial. RiverSource Distributors, Inc., a subsidiary of Ameriprise Financial, serves as the principal underwriter and distributor of variable annuity and life insurance products issued by the Company.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Company adopted Accounting Standards Update (“ASU”), Financial Services – Insurance – Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12”), effective January 1, 2023 with a transition date of January 1, 2021. The significant accounting policies for market risk benefits (“MRB”); deferred acquisition costs (“DAC”); deferred sales inducement costs (“DSIC”); reinsurance; policyholder account balances, future policy benefits and claims; and unearned revenue liability were added or updated as a result of adopting the new accounting standard. See Note 3 for additional information related to the transition approach and adoption impact.

Amounts Based on Estimates and Assumptions

Accounting estimates are an integral part of the 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 the recognition of credit losses or impairments, valuation of derivative instruments, future policy benefits, market risk benefits, and income taxes and the recognition of deferred tax assets and liabilities. These accounting estimates reflect the best judgment of management and actual results could differ.

Investments

Available-for-Sale Securities

Available-for-Sale securities are carried at fair value with unrealized gains (losses) recorded in accumulated other comprehensive income (loss) (“AOCI”), net of impacts to benefit reserves, reinsurance recoverables and income taxes. Gains and losses are recognized on a trade date basis in the Statements of Income upon disposition of the securities.

Available-for-Sale securities are impaired when the fair value of an investment is less than its amortized cost. When an Available-for-Sale security is impaired, the Company first assesses whether or not: (i) it has the intent to sell the security (i.e., 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 exist, the Company recognizes an impairment by reducing the book value of the security for the difference between the investment’s amortized cost and its fair value with a corresponding charge to earnings. Subsequent increases in the fair value of Available-for-Sale securities that occur in periods after a write-down has occurred are recorded as unrealized gains in other comprehensive income (loss) (“OCI”), while subsequent decreases in fair value would continue to be recorded as reductions of book value with a charge to earnings.

For securities that do not meet the above criteria, the Company determines whether the decrease in fair value is due to a credit loss or due to other factors. The amount of impairment due to credit-related factors, if any, is recognized as an allowance for credit losses with a related charge to net realized investment gains (losses). The allowance for credit losses is limited to the amount by which the security’s amortized cost basis exceeds its fair value. The amount of the impairment related to other factors is recognized in OCI.

F-7

RiverSource Life Insurance Co. of New York

Factors the Company considers in determining whether declines in the fair value of fixed maturity securities are due to credit-related factors include: (i) the extent to which the market value is below amortized cost; (ii) fundamental analysis of the liquidity, business prospects and overall financial condition of the issuer; and (iii) market events that could impact credit ratings, economic and business climate, litigation and government actions, and similar external business factors.

If through subsequent evaluation there is a sustained increase in cash flows expected, both the allowance and related charge to earnings may be reversed to reflect the increase in expected principal and interest payments.

In order to determine the amount of the credit loss component for corporate debt securities, 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. When assessing potential credit-related impairments for structured investments (e.g., residential mortgage backed securities, commercial mortgage backed securities and asset backed securities), the Company also considers credit-related 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.

Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for Available-for-Sale securities. Accrued interest on Available-for-Sale securities is recorded as earned in Accrued investment income. Available-for-Sale securities are generally placed on nonaccrual status when the accrued balance becomes 90 days past due or earlier based on management’s evaluation of the facts and circumstances of each security under review. All previously accrued interest is reversed through Net investment income.

Financing Receivables

Financing receivables are comprised of mortgage loans and policy loans.

Mortgage Loans

Mortgage loans are loans on commercial properties that are originated by the Company and are recorded at amortized cost less the allowance for loan losses.

Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on mortgage loans is recorded in Net investment income.

Policy Loans

Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses.

Interest income is accrued as earned on the unpaid principal balances of the loans. Interest income recognized on policy loans is recorded in Net investment income.

Allowance for Credit Losses

The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected over the asset’s expected life, considering past events, current conditions and reasonable and supportable forecasts of future economic conditions. Estimates of expected credit losses consider both historical charge-off and recovery experience as well as current economic conditions and management’s expectation of future charge-off and recovery levels. Expected losses related to risks other than credit risk are excluded from the allowance for credit losses. The allowance for credit losses is measured and recorded upon initial recognition of the loan, regardless of whether it is originated or purchased.

The allowance for credit losses for mortgage loans utilizes a probability of default and loss severity approach to estimate lifetime expected credit losses. Actual historical default and loss severity data is adjusted for current conditions and reasonable and supportable forecasts of future economic conditions to develop the probability of default and loss severity assumptions that are applied to the amortized cost basis of the loans over the expected life of each portfolio. The allowance for credit losses on mortgage loans is recorded through provisions charged to Net realized investment gains (losses) and is reduced/increased by net charge-offs/recoveries.

Management determines the adequacy of the allowance for credit losses 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, and occupancy rates, along with reasonable and supportable forecasts of economic and market conditions. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change. While the Company may attribute portions of the allowance to specific loan pools as part of the allowance estimation process, the entire allowance is available to absorb losses expected over the life of the loan portfolio.

F-8

RiverSource Life Insurance Co. of New York

Nonaccrual Loans

Mortgage loans are 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 unless the remaining principal balance has been determined to be fully collectible. Management has elected to exclude accrued interest in its measurement of the allowance for credit losses for mortgage loans.

Loan Modifications

A loan is modified when the Company makes certain concessionary modifications to contractual terms such as principal forgiveness, interest rate reductions, other-than-insignificant payment delays, and/or term extensions in an attempt to make the loan more affordable to a borrower experiencing financial difficulties. Generally, performance prior to the modification or significant events that coincide with the modification 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 modification 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.

Charge-off and Foreclosure

Charge-offs are recorded when the Company concludes that all or a portion of the mortgage loan is uncollectible. Factors used by the Company to determine whether all amounts due on 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.

If it is determined that foreclosure on a mortgage loan is probable and the fair value is less than the current loan balance, expected credit losses are measured as the difference between the amortized cost basis of the asset and fair value less estimated costs to sell, if applicable. Upon foreclosure, the mortgage loan and related allowance are reversed, and the foreclosed property is recorded as real estate owned within Other assets.

Cash and Cash Equivalents

Cash equivalents include highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less.

Reinsurance

The Company cedes 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 paid for traditional life, long term care (“LTC”) and DI insurance and life contingent payout annuities, net of the change in any prepaid reinsurance asset, are reported as a reduction of Premiums. Reinsurance recoveries are reported as components of Benefits, claims, losses and settlement expenses.

UL and VUL reinsurance premiums are reported as a reduction of Policy and contract charges. In addition, for UL and VUL 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 classified as an asset and amortized based on estimated gross profits over the period the reinsurance policies are in-force. Changes in the net cost of reinsurance are reflected as a component of Policy and contract charges.

Insurance liabilities are reported before the effects of reinsurance. Policyholder account balances, future policy benefits and claims recoverable under reinsurance contracts are recorded within Reinsurance recoverables, net of the allowance for credit losses. The Company evaluates the financial condition of its reinsurers prior to entering into new reinsurance contracts and on a periodic basis during the contract term. The allowance for credit losses related to reinsurance recoverable is based on applying observable industry data including insurer ratings, default and loss severity data to the Company’s reinsurance recoverable balances. Management evaluates the results of the calculation and considers differences between the industry data and the Company’s data. Such differences include that the Company has no actual history of significant losses and that industry data may contain non-life insurers. This evaluation is inherently subjective as it requires estimates, which may be susceptible to significant change given the long-term nature of these receivables. The allowance for credit losses on reinsurance recoverable is recorded through provisions charged to Benefits, claims, losses and settlement expenses.

The Company also assumes life insurance 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 Policyholder account balances, future policy benefits and claims.

See Note 9 for additional information on reinsurance.

F-9

RiverSource Life Insurance Co. of New York

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.

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 documents all of the hedging relationships between the hedge instruments and the hedged items at the inception of the relationships. Management also documents its risk management objectives and strategies for entering into the hedge transactions. The Company 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 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 Statements of Income with the corresponding change in the hedged asset or liability.

The equity component of IUL obligations is considered an embedded derivative. Additionally, certain annuities contain guaranteed minimum accumulation benefits (“GMAB”), guaranteed minimum withdrawal benefits (“GMWB”) and GMDB provisions. These provisions are accounted for as market risk benefits under ASU 2018-12.

See Note 13 for information regarding the Company’s fair value measurement of derivative instruments and Note 17 for the impact of derivatives on the Statements of Income.

Market Risk Benefits

Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Market risk benefits include certain contract features on variable annuity products that provide minimum guarantees to contractholders. Guarantees accounted for as market risk benefits include GMDB, guaranteed minimum income benefit (“GMIB”), GMWB and GMAB. If a contract contains multiple market risk benefits, those market risk benefits are bundled together as a single compound market risk benefit.

Market risk benefits are measured at fair value, at the individual contract level, using a non-option-based valuation approach or an option-based valuation approach dependent upon the fee structure of the contract. Changes in fair value are recognized in net income each period with the exception of the portion of the change in fair value due to a change in the instrument-specific credit risk, which is recognized in OCI.

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 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’s advisors and employees and third-party distributors 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 write-offs. These transactions are anticipated in establishing amortization periods and other valuation assumptions.

The Company monitors other DAC amortization assumptions, such as persistency, mortality, morbidity, and variable annuity benefit utilization each quarter and, when assessed independently, each could impact the Company’s DAC balances. Unamortized DAC are reduced for actual experience in excess of expected experience.

The analysis of DAC balances and the corresponding amortization 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.

DAC are amortized on a constant-level basis for the grouped contracts over the expected contract term to approximate straight-line amortization. Contracts are grouped by contract type and issue year into cohorts consistent with the grouping used in estimating the associated liability for future policy benefits. DAC related to all long-duration product types (except for life contingent payout annuities) are grouped on a calendar-year annual basis for each legal entity. Further disaggregation is reported

F-10

RiverSource Life Insurance Co. of New York

for any contracts that include an additional liability for death or other insurance benefit. DAC related to life contingent payout annuities are grouped on a calendar-year annual basis for each legal entity for policies issued prior to 2021 and on a quarterly basis for each legal entity thereafter.

DAC related to annuity products (including variable deferred annuities, fixed deferred annuities, and life contingent payout annuities) are amortized based on initial premium. DAC related to life insurance products (including UL insurance, VUL insurance, IUL insurance, term life insurance, and whole life insurance) are amortized based on original specified amount (i.e., face amount). DAC related to DI insurance are amortized based on original monthly benefit.

The accounting contract term for annuity products (except for life contingent payout annuities) is the projected accumulation period. Life contingent payout annuities are amortized over the period which annuity payments are expected to be paid. The accounting contract term for life insurance products is the projected life of the contract. DI insurance is amortized over the projected life of the contract, including the claim paying period.

Deferred Sales Inducement Costs

Deferred sales inducements are contract features that are intended to attract new customers or to persuade existing customers to keep their current policy. 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 on a constant-level basis using the same methodology and assumptions used to amortize DAC on a constant-level basis. DSIC are recorded in Other assets and amortization of DSIC is recorded in Benefits, claims, losses and settlement expenses.

Separate Account Assets and Liabilities

Separate account assets represent funds held for the benefit of and Separate account liabilities represent the obligation to the variable annuity contractholders and variable life insurance policyholders who have a contractual right to receive the benefits of their contract or policy and bear the related investment risk. Gains and losses on separate account assets accrue directly to the contractholder or policyholder and are not reported in the Company’s Statements of Income. Separate account assets are recorded at fair value and Separate account liabilities are equal to the assets recognized.

Policyholder Account Balances, Future Policy Benefits and Claims

The Company establishes reserves to cover the benefits associated with non-traditional and traditional long-duration products. Non-traditional long-duration products include variable annuity contracts, fixed annuity contracts and UL and VUL policies. Traditional long-duration products include term life, whole life, DI, and LTC insurance products and life contingent payout annuity products.

Non-Traditional Long-Duration Products

The liabilities for non-traditional long-duration products include fixed account values on variable and fixed annuities and UL and VUL policies, non-life contingent payout annuities, liabilities for guaranteed benefits associated with variable annuities and embedded derivatives for IUL products.

Liabilities for fixed account values on variable and fixed deferred annuities and UL and VUL policies are equal to accumulation values, which are the cumulative gross deposits and credited interest less withdrawals and various charges. The liability for non-life contingent payout annuities is recognized as the present value of future payments using the effective yield at inception of the contract.

A portion of the Company’s UL and VUL 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. The liability for these future losses is determined at the reporting date by estimating the death benefits in excess of account value and recognizing the excess over the estimated life based on expected assessments (e.g., cost of insurance charges, contractual administrative charges, similar fees and investment margin). See Note 10 for information regarding the liability for contracts with secondary guarantees. Liabilities for IUL products are equal to the accumulation of host contract values, guaranteed benefits, and the fair value of embedded derivatives.

See Note 12 for information regarding variable annuity guarantees.

Embedded Derivatives

The fair value of embedded derivatives related to IUL fluctuates based on equity markets and interest rates and the estimate of the Company’s nonperformance risk and is recorded in Policyholder account balances, future policy benefits and claims. See Note 13 for information regarding the fair value measurement of embedded derivatives.

F-11

RiverSource Life Insurance Co. of New York

Traditional Long-Duration Products

The liabilities for traditional long-duration products include cash flows related to 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, LTC, and life contingent payout annuity policies as claims are incurred in the future. The claim liability (also referred to as disabled life reserve) is presented together as one liability for future policy benefits.

A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. Expected insurance benefits are accrued over the life of the contract in proportion to premium revenue recognized (referred to as the net premium approach). The net premium ratio reflects cash flows from contract inception to contract termination (i.e., through the claim paying period) and cannot exceed 100%.

Assumptions utilized in the net premium approach, including mortality, morbidity, and terminations, are reviewed as part of experience studies at least annually or more frequently if suggested by evidence. Expense assumptions and actual expenses are updated within the net premium calculation consistent with other policyholder assumptions.

The updated cash flows used in the calculation are discounted using a forward rate curve. The discount rate represents an upper-medium-grade (i.e., low credit risk) fixed-income instrument yield (i.e., an A rating) that reflects the duration characteristics of the liability. Discount rates are locked in annually, at the end of each year for all products, except life contingent payout annuities, and calculated as the monthly average discount rate curves for the year. For life contingent payout annuities, the discount rates are locked in quarterly at the end of each quarter based on the average of the three months for the quarter.

The liability for future policy benefits will be updated for actual experience at least on an annual basis and concurrent with changes to cash flow assumptions. When net premiums are updated for cash flow changes, the estimated cash flows over the entire life of a group of contracts are updated using historical experience and updated future cash flow assumptions.

The revised net premiums are used to calculate an updated liability for future policy benefits as of the beginning of the reporting period, discounted at the original locked in rate (i.e., contract issuance rate). The updated liability for future policy benefits as of the beginning of the reporting period is then compared with the carrying amount of the liability as of that date prior to updating cash flow assumptions to determine the current period remeasurement gain or loss reflected in current period earnings. The revised net premiums are then applied as of the beginning of the quarter to calculate the benefit expense for the current reporting period.

The difference between the updated carrying amount of the liability for future policy benefits measured using the current discount rate assumption and the original discount rate assumption is recognized in OCI. The interest accretion rate remains the original discount rate used at contract issue date.

If the updating of cash flow assumptions results in the present value of future benefits and expenses exceeding the present value of future gross premiums, a charge to net income is recorded for the current reporting period such that net premiums are set equal to gross premiums. In subsequent periods, the liability for future policy benefits is accrued with net premiums set equal to gross premiums.

Contracts (except for life contingent payout annuities sold subsequent to December 31, 2020) are grouped into cohorts by contract type and issue year, as well as by legal entity and reportable segment. Life contingent payout annuities sold in periods beginning in 2021 are grouped into quarterly cohorts.

See Note 10 for information regarding the liabilities for traditional long-duration products.

Deferred Profit Liability

For limited-payment products, gross premiums received in excess of net premiums are deferred at initial recognition as a deferred profit liability (“DPL”). Gross premiums are measured using assumptions consistent with those used in the measurement of the liability for future policy benefits, including discount rate, mortality, lapses and expenses.

The DPL is amortized and recognized as premium revenue in proportion to expected future benefit payments from annuity contracts. Interest is accreted on the balance of the DPL using the discount rate determined at contract issuance. The Company reviews and updates its estimate of cash flows from the DPL at the same time as the estimates of cash flows for the liability for future policy benefits. When cash flows are updated, the updated estimates are used to recalculate the DPL at contract issuance. The recalculated DPL as of the beginning of the current reporting period is compared to the carrying amount of the DPL as of the beginning of the current reporting period, and any difference is recognized as either a charge or credit to premium revenue.

DPL is recorded in Policyholder account balances, future policy benefits and claims and included as a reconciling item within Note 10.

Unearned Revenue Liability

The Company’s UL and VUL policies require payment of fees or other policyholder assessments in advance for services to be provided in future periods. These charges are deferred as unearned revenue and amortized consistent with DAC amortization

F-12

RiverSource Life Insurance Co. of New York

factors. The unearned revenue liability is recorded in Other liabilities and the amortization is recorded in Policy and contract charges.

Income Taxes

The Company qualifies as a life insurance company for federal income tax purposes. As such, the Company is subject to the Internal Revenue Code provisions applicable to life insurance companies.

The Company’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. The controlled group for which the Company is a member is an applicable corporation with regard to the corporate alternative minimum tax (“CAMT”) and is therefore required to compute the CAMT. In accordance with the tax sharing agreement, Ameriprise Financial will be liable for any CAMT liability and expense.

The Company’s provision for income taxes represents the net amount of income taxes that the Company expects to pay or to receive from various taxing jurisdictions in connection with its operations. The Company provides for income taxes based on amounts that the Company believes it will ultimately owe taking into account the recognition and measurement for uncertain tax positions. Inherent in the provision for income taxes are estimates and judgments regarding the tax treatment of certain items.

In connection with the provision for income taxes, the 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.

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. 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 reduce the likelihood of the establishment of a valuation allowance with respect to such assets. See Note 19 for additional information on the Company’s valuation allowance.

Changes in tax rates and tax law are accounted for in the period of enactment. Deferred tax assets and liabilities are adjusted for the effect of a change in tax laws or rates and the effect is included in net income.

Revenue Recognition

Premiums on traditional life, DI and LTC insurance products and life contingent payout annuities are net of reinsurance ceded and are recognized as revenue when due.

Interest income is accrued as earned using the effective interest method, which makes an adjustment of the yield for security premiums and discounts on all performing fixed maturity securities classified as Available-for-Sale so that the related security or loan recognizes a constant rate of return on the outstanding balance throughout its term. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and updated future payment assumptions and a catch-up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively.

Mortality and expense risk fees are based on a percentage of the fair value of assets held in the Company’s separate accounts and recognized when assessed. Variable annuity guaranteed benefit rider charges, cost of insurance charges on UL and VUL insurance and contract charges (net of reinsurance premiums and cost of reinsurance for UL insurance products) and surrender charges on annuities and UL and VUL insurance are recognized as revenue when assessed.

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.

Fees received under marketing support and distribution services arrangements are recognized as revenue when earned.

See Note 4 for further discussion of accounting policies on revenue from contracts with customers.

3. RECENT ACCOUNTING PRONOUNCEMENTS

Adoption of New Accounting Standards

Financial Instruments — Credit Losses — Troubled Debt Restructurings and Vintage Disclosures

In March 2022, the Financial Accounting Standards Board (“FASB”) proposed amendments to ASU 2016-13, Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments (“Topic 326”). The update removes the recognition and measurement guidance for Troubled Debt Restructurings (“TDRs”) by creditors in Subtopic 310-40,

F-13

RiverSource Life Insurance Co. of New York

Receivables — Troubled Debt Restructurings by Creditors, and modifies the disclosure requirements for certain loan refinancing and restructuring by creditors when a borrower is experiencing financial difficulty. Rather than applying the recognition and measurement for TDRs, an entity must apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. The update also requires entities to disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments — Credit Losses — Measured at Amortized Cost. The amendments are to be applied prospectively, but entities may apply a modified retrospective transition for changes to the recognition and measurement of TDRs. For entities that have adopted Topic 326, the amendments are effective for interim and annual periods beginning after December 15, 2022. The Company adopted the standard on January 1, 2023. The adoption of this update did not have an impact on the Company’s financial condition and results of operations and modifications to disclosures are immaterial in the current period.

Financial Services — Insurance — Targeted Improvements to the Accounting for Long-Duration Contracts

In August 2018, the FASB updated the accounting standard related to long-duration insurance contracts (ASU 2018-12). The guidance changes elements of the measurement models and disclosure requirements for an insurer’s long-duration insurance contract benefits and acquisition costs by expanding the use of fair value accounting to certain contract benefits, requiring updates, if any, and at least annually, to assumptions used to measure liabilities for future policy benefits, changing the amortization pattern of deferred acquisition costs to a constant-level basis and removing certain shadow adjustments previously recorded in AOCI. Adoption of the accounting standard did not impact overall cash flows or regulatory capital requirements.

When the Company adopted the standard effective January 1, 2023 with a transition date of January 1, 2021 (the “transition date”), opening equity was adjusted for the adoption impacts to retained earnings and AOCI and prior periods presented (i.e. 2021 and 2022) were restated. The adoption impact as of January 1, 2021 was a reduction in total equity of $76 million, of which $23 million and $53 million were reflected in retained earnings and AOCI, respectively.

The following table presents the effects of the adoption of the above new accounting standard to the Company’s previously reported Balance Sheets:


(in thousands)	As Filed December 31, 2022			Adjustment			Post-adoption December 31, 2022			As Filed December 31, 2021		Adjustment			Post-adoption December 31, 2021

Assets
Market risk benefits	$	—		$	64,498		$	64,498		$	—	$	36,740		$	36,740
Reinsurance recoverables (allowance for credit losses: 2022, $3,500; 2021, $5,400)		189,465			6,082			195,547			184,971		57,016			241,987
Deferred acquisition costs		214,324			(40,286	)		174,038			175,258		4,854			180,112
Other assets		198,981			(4,072	)		194,909			406,002		9,404			415,406
Total assets	$	6,798,860		$	26,222		$	6,825,082		$	8,644,453	$	108,014		$	8,752,467

Liabilities and Shareholder’s Equity
Liabilities:
Policyholder account balances, future policy benefits and claims	$	1,997,633		$	(47,637	)	$	1,949,996		$	2,106,471	$	(2,928	)	$	2,103,543
Market risk benefits		—			68,635			68,635			—		129,715			129,715
Other liabilities		182,723			(2,092	)		180,631			526,623		14,101			540,724
Total liabilities		6,411,246			18,906			6,430,152			8,065,355		140,888			8,206,243

Shareholder’s Equity:
Retained earnings		386,646			21,918			408,564			420,377		6,768			427,145
Accumulated other comprehensive income (loss), net of tax		(107,958	)		(14,602	)		(122,560	)		49,795		(39,642	)		10,153
Total shareholder’s equity		387,614			7,316			394,930			579,098		(32,874	)		546,224
Total liabilities and shareholder’s equity	$	6,798,860		$	26,222		$	6,825,082		$	8,644,453	$	108,014		$	8,752,467

F-14

RiverSource Life Insurance Co. of New York

The following table presents the effects of the adoption of the above new accounting standard to the Company’s previously reported Statements of Income:


	Years Ended December 31,
(in thousands)	As Filed 2022		Adjustment			Post-adoption 2022		As Filed 2021		Adjustment			Post-adoption 2021
Revenues
Policy and contract charges	$	125,459	$	(163	)	$	125,296	$	139,659	$	(1,523	)	$	138,136
Total revenues		234,526		(163	)		234,363		259,384		(1,523	)		257,861
Benefits and Expenses
Benefits, claims, losses and settlement expenses		107,180		(69,186	)		37,994		84,589		(42,108	)		42,481
Remeasurment (gains) losses of future policy benefit reserves		—		2,225			2,225		—		55			55
Change in fair value of market risk benefits		—		40,393			40,393		—		(8,080	)		(8,080	)
Amortization of deferred acquisition costs		8,919		6,610			15,529		6,296		9,678			15,974
Other insurance and operating expenses		34,217		618			34,835		35,838		801			36,639
Total benefits and expenses		201,904		(19,340	)		182,564		173,888		(39,654	)		134,234
Pretax income (loss)		32,622		19,177			51,799		85,496		38,131			123,627
Income tax provision (benefit)		3,353		4,027			7,380		15,392		8,007			23,399
Net income	$	29,269	$	15,150		$	44,419	$	70,104	$	30,124		$	100,228

The adoption of the standard did not affect the previously reported totals for net cash flows provided by (used in) operating, investing, or financing activities.

Future Adoption of New Accounting Standards

Segment Reporting — Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, Improvements to Reportable Segment Disclosures, updating reportable segment disclosure requirements in accordance with Topic 280, Segment Reporting (“Topic 280”), primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss and contain other disclosure requirements. The amendments also expand Topic 280 disclosures to public entities with one reportable segment. The amendments are effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024. Early adoption is permitted. The Company is assessing changes to the segment related disclosures resulting from the standard. The adoption of the standard will not have an impact on the Company’s financial condition and results of operations as the standard is disclosure-related only.

Income Taxes — Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, updating the accounting standards related to income tax disclosures, primarily focused on the disaggregation of income taxes paid and the rate reconciliation table. The standard is to be applied prospectively with an option for retrospective application and is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is assessing changes to the income tax related disclosures resulting from the standard. The adoption of the standard will not have an impact on the Company’s financial condition and results of operations as the standard is disclosure-related only.

F-15

RiverSource Life Insurance Co. of New York

4. REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table presents disaggregated revenue from contracts with customers and a reconciliation to total revenues reported on the Statements of Income:


	Years Ended December 31,
(in thousands)	2023		2022		2021
Policy and contract charges
Affiliated (from Columbia Management Investment Distributors, Inc.)	$	9,193	$	9,762	$	11,402
Unaffiliated		850		829		936
Total		10,043		10,591		12,338
Other revenues
Administrative fees
Affiliated (from Columbia Management Investment Services, Corp.)		2,317		2,474		2,908
Unaffiliated		1,029		1,019		1,127
		3,346		3,493		4,035
Other fees
Affiliated (from Columbia Management Investment Advisers, LLC (“CMIA”) and Columbia Wanger Asset Management, LLC)		18,482		19,845		22,969
Unaffiliated		230		232		282
		18,712		20,077		23,251
Total		22,058		23,570		27,286
Total revenue from contracts with customers		32,101		34,161		39,624
Revenue from other sources⁽¹⁾		219,936		200,202		218,237
Total revenues	$	252,037	$	234,363	$	257,861

⁽¹⁾	Amounts primarily consist of revenue associated with insurance and annuity products and investment income from financial instruments.

The following discussion describes the nature, timing, and uncertainty of revenues and cash flows arising from the Company’s contracts with customers.

Policy and Contract Charges

The Company earns revenue for providing distribution-related services to affiliated and unaffiliated mutual funds that are available as underlying investments in its variable annuity and variable life insurance products. The performance obligation is satisfied at the time the mutual fund is distributed. Revenue is recognized over the time the mutual fund is held in the variable product and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund. The revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control, including market volatility and how long the fund(s) remain in the insurance policy or annuity contract. The revenue will not be recognized until it is probable that a significant reversal will not occur. These fees are accrued and collected on a monthly basis.

Other Revenues

Administrative Fees

The Company earns revenue for providing customer support, contract servicing and administrative services for affiliated and unaffiliated mutual funds that are available as underlying instruments in its variable annuity and variable life insurance products. The transfer agent and administration revenue is earned daily based on a fixed rate applied, as a percentage, to assets under management. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis.

Other Fees

The Company earns revenue for providing affiliated and unaffiliated partners an opportunity to educate the financial advisors of its affiliate, AFS, that sell the Company’s products as well as product and marketing personnel to support the offer, sale and servicing of funds within the Company’s variable annuity and variable life insurance products. These payments allow the parties to train and support the advisors, explain the features of their products, and distribute marketing and educational materials. The affiliated revenue is earned based on a rate, updated at least annually, which is applied, as a percentage, to the market value of assets invested. The unaffiliated revenue is earned based on a fixed rate applied, as a percentage, to the market value of assets invested. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are accrued and collected on a monthly basis.

Receivables

Receivables for revenue from contracts with customers are recognized when the performance obligation is satisfied and the Company has an unconditional right to the revenue. Receivables related to revenues from contracts with customers were $2.9 million as of both December 31, 2023 and 2022.

F-16

RiverSource Life Insurance Co. of New York

5. VARIABLE INTEREST ENTITIES

The Company invests in structured investments which are considered variable interest entities (“VIEs”) for which it is not the sponsor. These structured investments typically invest in fixed income instruments and are managed by third parties and include asset backed securities and commercial and residential mortgage backed securities. The Company classifies these investments as Available-for-Sale securities. The Company has determined that it is not the primary beneficiary of these structures due to the size of the Company’s investment in the entities and position in the capital structure of these entities. The Company’s maximum exposure to loss as a result of its investment in these structured investments is limited to its amortized cost. The Company has no obligation to provide financial or other support to the structured investments beyond its investment nor has the Company provided any support to the structured investments. See Note 6 for additional information on these structured investments.

6. INVESTMENTS

Available-for-Sale securities distributed by type were as follows:


	December 31, 2023
Description of Securities (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses			Fair Value
Fixed maturities:
Corporate debt securities	$	951,360	$	25,060	$	(54,874	)	$	(365	)	$	921,181
Residential mortgage backed securities		290,104		187		(37,468	)		—			252,823
Commercial mortgage backed securities		322,845		—		(33,099	)		—			289,746
State and municipal obligations		83,146		7,417		(452	)		—			90,111
Asset backed securities		31,919		467		(1,648	)		—			30,738
Foreign government bonds and obligations		638		84		—			—			722
U.S. government and agency obligations		220		—		—			—			220
Total	$	1,680,232	$	33,215	$	(127,541	)	$	(365	)	$	1,585,541


	December 31, 2022
Description of Securities (in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Allowance for Credit Losses			Fair Value
Fixed maturities:
Corporate debt securities	$	905,629	$	13,188	$	(85,717	)	$	(572	)	$	832,528
Residential mortgage backed securities		310,338		27		(41,976	)		—			268,389
Commercial mortgage backed securities		340,684		—		(39,053	)		—			301,631
State and municipal obligations		86,002		6,539		(781	)		—			91,760
Asset backed securities		34,959		1,033		(2,552	)		—			33,440
Foreign government bonds and obligations		747		68		(35	)		—			780
U.S. government and agency obligations		216		—		(1	)		—			215
Total	$	1,678,575	$	20,855	$	(170,115	)	$	(572	)	$	1,528,743

As of December 31, 2023 and 2022, accrued interest of $14.9 million and $14.2 million, respectively, is excluded from the amortized cost basis of Available-for-Sale securities in the tables above and is recorded in Accrued investment income.

As of December 31, 2023 and 2022, fixed maturity securities comprised approximately 89% and 88%, respectively, of the Company’s total investments. Rating agency designations are based on the availability of ratings from Nationally Recognized Statistical Rating Organizations (“NRSROs”), including Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings Ltd. (“Fitch”). The Company uses the median of available ratings from Moody’s, S&P and Fitch, or if fewer than three ratings are available, the lower rating is used. When ratings from Moody’s, S&P and Fitch are unavailable, the Company may utilize ratings from other NRSROs or rate the securities internally. As of December 31, 2023 and 2022, $15.8 million and $21.9 million, respectively, of securities were internally rated by CMIA, an affiliate of the Company, using criteria similar to those used by NRSROs.

F-17

RiverSource Life Insurance Co. of New York

A summary of fixed maturity securities by rating was as follows:


	December 31, 2023							December 31, 2022
Ratings (in thousands, except percentages)	Amortized Cost		Fair Value		Percent of Total Fair Value			Amortized Cost		Fair Value		Percent of Total Fair Value
AAA	$	355,286	$	319,280		20	%	$	681,243	$	598,313		39	%
AA		344,046		315,804		20			62,194		68,657		5
A		175,912		179,826		11			128,524		128,819		8
BBB		762,945		731,081		46			749,531		681,552		45
Below investment grade		42,043		39,550		3			57,083		51,402		3
Total fixed maturities	$	1,680,232	$	1,585,541		100	%	$	1,678,575	$	1,528,743		100	%

As of December 31, 2023, approximately 75% of securities rated AA were GNMA, FNMA and FHLMC mortgage backed securities. These issuers were downgraded in the third quarter of 2023 from AAA to AA due to the downgrade of the U.S. Government long-term credit rating. As of December 31, 2022, approximately 42% of securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any issuer were greater than 10% of the Company’s total shareholder’s equity as of both December 31, 2023 and 2022.

The following tables summarize the fair value and gross unrealized losses on Available-for-Sale securities, aggregated by major investment type and the length of time that individual securities have been in a continuous unrealized loss position for which no allowance for credit losses has been recorded:


	December 31, 2023
	Less than 12 months							12 months or more							Total
Description of Securities (in thousands, except number 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		17	$	75,331	$	(1,862	)		176	$	518,163	$	(53,012	)		193	$	593,494	$	(54,874	)
Residential mortgage backed securities		5		3,800		(48	)		57		242,301		(37,420	)		62		246,101		(37,468	)
Commercial mortgage backed securities		1		7,423		(216	)		97		282,323		(32,883	)		98		289,746		(33,099	)
State and municipal obligations		3		2,700		(113	)		10		6,501		(339	)		13		9,201		(452	)
Asset backed securities		—		—		—			15		22,384		(1,648	)		15		22,384		(1,648	)
U.S. government and agency obligations		1		220		—			—		—		—			1		220		—
Total		27	$	89,474	$	(2,239	)		355	$	1,071,672	$	(125,302	)		382	$	1,161,146	$	(127,541	)


	December 31, 2022
	Less than 12 months							12 months or more							Total
Description of Securities (in thousands, except number 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		190	$	533,591	$	(39,382	)		49	$	169,667	$	(46,335	)		239	$	703,258	$	(85,717	)
Residential mortgage backed securities		64		115,585		(9,029	)		6		151,248		(32,947	)		70		266,833		(41,976	)
Commercial mortgage backed securities		94		245,420		(27,630	)		10		56,211		(11,423	)		104		301,631		(39,053	)
State and municipal obligations		14		8,637		(738	)		1		207		(43	)		15		8,844		(781	)
Asset backed securities		15		26,559		(2,552	)		—		—		—			15		26,559		(2,552	)
U.S. government and agency obligations		1		215		(1	)		—		—		—			1		215		(1	)
Foreign government bonds and obligations		—		—		—			1		71		(35	)		1		71		(35	)
Total		378	$	930,007	$	(79,332	)		67	$	377,404	$	(90,783	)		445	$	1,307,411	$	(170,115	)

As part of the Company’s ongoing monitoring process, management determined that the decrease in gross unrealized losses on its Available-for-Sale securities for which an allowance for credit losses has not been recognized during the year ended December 31, 2023 is primarily attributable to the impact of lower interest rates and tighter credit spreads. The Company did not recognize these unrealized losses in earnings because it was determined that such losses were due to non-credit factors. The Company does not intend to sell these securities and does not believe that it is more likely than not that the Company will be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of December 31, 2023 and 2022, approximately 91% and 89%, respectively, of the total of Available-for-Sale securities with gross unrealized losses were considered investment grade.

F-18

RiverSource Life Insurance Co. of New York

The following table presents a rollforward of the allowance for credit losses on Available-for-Sale securities:


(in thousands)	Corporate Debt Securities
Balance at January 1, 2021	$	739
Additional increases (decreases) on securities that had an allowance recorded in a previous period		(104	)
Charge-offs		(635	)
Balance at December 31, 2021		—
Additions for which credit losses were not previously recorded		572
Balance at December 31, 2022		572
Additions for which credit losses were not previously recorded		365
Reductions for securities sold during the period (realized)		(458	)
Additional increases (decreases) on securities that had an allowance recorded in a previous period		(114	)
Balance at December 31, 2023	$	365

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 thousands)	2023			2022			2021
Gross realized investment gains	$	93		$	1,316		$	11,923
Gross realized investment losses		(524	)		(3,234	)		(9	)
Credit reversals (losses)		207			(572	)		104
Other impairments		—			(856	)		(1,641	)
Total	$	(224	)	$	(3,346	)	$	10,377

For the year ended December 31, 2023, net credit reversals primarily related to the reversal of a previously recorded allowance for credit losses due to the sale of a corporate debt security in the communications industry partially offset by recording an allowance for credit losses of another corporate debt security in the communications industry. For the year ended December 31, 2022, credit losses primarily related to recording an allowance for credit losses on a corporate debt security in the communications industry. For the year ended December 31, 2021, net credit reversals primarily related to decreases in an allowance for credit losses. Other impairments for the years ended December 31, 2022 and 2021 related to Available-for-Sale securities which the Company intended to sell.

See Note 18 for a rollforward of net unrealized investment gains (losses) included in AOCI.

Available-for-Sale securities by contractual maturity as of December 31, 2023 were as follows:


(in thousands)	Amortized Cost		Fair Value
Due within one year	$	34,289	$	34,025
Due after one year through five years		174,445		169,312
Due after five years through 10 years		185,592		170,901
Due after 10 years		641,038		637,996
		1,035,364		1,012,234
Residential mortgage backed securities		290,104		252,823
Commercial mortgage backed securities		322,845		289,746
Asset backed securities		31,919		30,738
Total	$	1,680,232	$	1,585,541

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 were not included in the maturities distribution.

F-19

RiverSource Life Insurance Co. of New York

The following is a summary of Net investment income:


	Years Ended December 31,
(in thousands)	2023		2022		2021
Fixed maturities	$	66,737	$	60,796	$	57,644
Mortgage loans		6,080		6,419		7,223
Other investments		13,384		6,926		2,411
		86,201		74,141		67,278
Less: investment expenses		1,616		1,932		1,909
Total	$	84,585	$	72,209	$	65,369

7. FINANCING RECEIVABLES

Financing receivables are comprised of mortgage loans and policy loans. See Note 2 for information regarding the Company’s accounting policies related to financing receivables and the allowance for credit losses.

Allowance for Credit Losses

The following table presents a rollforward of the allowance for credit losses:


(in thousands)	Mortgage Loans
Balance at January 1, 2021	$	2,075
Provisions		(1,216	)
Balance at December 31, 2021		859
Provisions		106
Balance at December 31, 2022		965
Provisions		(411	)
Balance at December 31, 2023	$	554

As of December 31, 2023 and 2022, accrued interest on mortgage loans was $474 thousand and $516 thousand, respectively, and is recorded in Accrued investment income and excluded from the amortized cost basis of mortgage loans.

Credit Quality Information

There were no nonperforming loans as of both December 31, 2023 and 2022. All loans were considered to be performing.

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 mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review.

Based on this review, the mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. There were no mortgage loans which management has assigned its highest risk rating as of both December 31, 2023 and 2022. 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. There were no mortgage loans past due as of both December 31, 2023 and 2022.

The tables below present the amortized cost basis of mortgage loans by year of origination and loan-to-value ratio:


	December 31, 2023
(in thousands)	2023		2022		2021		2020		2019		Prior		Total
Loan-to-Value Ratio
>100%	$	—	$	—	$	—	$	—	$	—	$	—	$	—
80% – 100%		—		—		—		1,988		—		2,118		4,106
60% – 80%		—		5,810		—		3,671		2,481		7,027		18,989
40% – 60%		—		2,350		2,433		6,546		5,466		30,058		46,853
<40%		1,488		—		2,981		8,651		10,287		52,109		75,516
Total	$	1,488	$	8,160	$	5,414	$	20,856	$	18,234	$	91,312	$	145,464

F-20

RiverSource Life Insurance Co. of New York


	December 31, 2022
(in thousands)	2022		2021		2020		2019		2018		Prior		Total
Loan-to-Value Ratio
>100%	$	—	$	—	$	2,003	$	—	$	—	$	1,082	$	3,085
80% – 100%		—		2,480		1,751		—		2,191		6,369		12,791
60% – 80%		7,205		1,741		5,950		6,430		1,691		2,739		25,756
40% – 60%		1,142		1,337		2,907		5,195		10,993		21,202		42,776
<40%		—		—		8,970		7,280		8,903		48,472		73,625
Total	$	8,347	$	5,558	$	21,581	$	18,905	$	23,778	$	79,864	$	158,033

Loan-to-value ratio is based on income and expense data provided by borrowers at least annually and long-term capitalization rate assumptions based on property type. For the year ended December 31, 2023, the Company did not have any write-offs of mortgage loans.

In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of mortgage loans by U.S. region were as follows:


	Loans				Percentage
	December 31,				December 31,
(in thousands)	2023		2022		2023			2022
Pacific	$	44,912	$	47,107		31	%		30	%
South Atlantic		25,135		30,528		17			19
Mountain		20,907		21,716		14			14
Middle Atlantic		17,055		16,994		12			11
East North Central		12,125		13,993		8			9
West North Central		10,224		11,651		7			7
West South Central		6,675		7,103		5			5
East South Central		4,904		5,274		3			3
New England		3,527		3,667		3			2
Total	$	145,464	$	158,033		100	%		100	%

Concentrations of credit risk of mortgage loans by property type were as follows:


	Loans				Percentage
	December 31,				December 31,
(in thousands)	2023		2022		2023			2022
Apartments	$	45,692	$	48,592		32	%		31	%
Retail		39,748		45,513		27			29
Industrial		27,264		26,501		19			17
Office		17,849		18,953		12			12
Mixed use		5,882		7,444		4			4
Other		9,029		11,030		6			7
Total	$	145,464	$	158,033		100	%		100	%

Policy Loans

Policy loans do not exceed the cash surrender value at origination. As there is minimal risk of loss related to policy loans, there is no allowance for credit losses.

Modifications with Borrowers Experiencing Financial Difficulty

There were no modifications of financing receivables with borrowers experiencing financial difficulty by the Company during the year ended December 31, 2023.

F-21

RiverSource Life Insurance Co. of New York

8. DEFERRED ACQUISITION COSTS AND DEFERRED SALES INDUCEMENT COSTS

The following tables summarize the balances of and changes in DAC, including the January 1, 2021 adoption of ASU 2018-12.


(in thousands)	Variable Annuities			Fixed Annuities			Universal Life Insurance			Variable Universal Life Insurance			Indexed Universal Life Insurance
Pre-adoption balance at December 31, 2020	$	112,335		$	2,991		$	5,204		$	24,103		$	10,521
Effect of shadow reserve adjustments		2,903			1,551			1,934			3,003			9,774
Post-adoption balance at January 1, 2021		115,238			4,542			7,138			27,106			20,295
Capitalization of acquisition costs		10,349			—			154			2,648			783
Amortization		(10,306	)		(394	)		(529	)		(2,565	)		(1,410	)
Balance at December 31, 2021	$	115,281		$	4,148		$	6,763		$	27,189		$	19,668


(in thousands)	Other Life Insurance			Life Contingent Payout Annuities			Term and Whole Life Insurance			Disability Income Insurance			Total, All Products
Pre-adoption balance at December 31, 2020	$	(59	)	$	—		$	805		$	6,662		$	162,562
Effect of shadow reserve adjustments		168			—			—			—			19,333
Post-adoption balance at January 1, 2021		109			—			805			6,662			181,895
Capitalization of acquisition costs		—			23			28			206			14,191
Amortization		(11	)		(5	)		(56	)		(698	)		(15,974	)
Balance at December 31, 2021	$	98		$	18		$	777		$	6,170		$	180,112


(in thousands)	Variable Annuities			Fixed Annuities			Universal Life Insurance			Variable Universal Life Insurance			Indexed Universal Life Insurance
Balance at January 1, 2022	$	115,281		$	4,148		$	6,763		$	27,189		$	19,668
Capitalization of acquisition costs		5,287			—			71			3,152			547
Amortization		(9,648	)		(798	)		(496	)		(2,470	)		(1,378	)
Balance at December 31, 2022	$	110,920		$	3,350		$	6,338		$	27,871		$	18,837


(in thousands)	Other Life Insurance			Life Contingent Payout Annuities			Term and Whole Life Insurance			Disability Income Insurance			Total, All Products
Balance at January 1, 2022	$	98		$	18		$	777		$	6,170		$	180,112
Capitalization of acquisition costs		—			87			97			214			9,455
Amortization		(10	)		(4	)		(60	)		(665	)		(15,529	)
Balance at December 31, 2022	$	88		$	101		$	814		$	5,719		$	174,038


(in thousands)	Variable Annuities			Fixed Annuities			Universal Life Insurance			Variable Universal Life Insurance			Indexed Universal Life Insurance
Balance at January 1, 2023	$	110,920		$	3,350		$	6,338		$	27,871		$	18,837
Capitalization of acquisition costs		3,760			—			21			3,117			383
Amortization		(9,121	)		(781	)		(462	)		(2,377	)		(1,362	)
Balance at December 31, 2023	$	105,559		$	2,569		$	5,897		$	28,611		$	17,858


(in thousands)	Other Life Insurance			Life Contingent Payout Annuities			Term and Whole Life Insurance			Disability Income Insurance			Total, All Products
Balance at January 1, 2023	$	88		$	101		$	814		$	5,719		$	174,038
Capitalization of acquisition costs		—			175			56			205			7,717
Amortization		(9	)		(12	)		(63	)		(635	)		(14,822	)
Balance at December 31, 2023	$	79		$	264		$	807		$	5,289		$	166,933

F-22

RiverSource Life Insurance Co. of New York

The following tables summarize the balances of and changes in DSIC, including the January 1, 2021 adoption of ASU 2018-12. DSIC are recorded in Other assets.


(in thousands)	Variable Annuities			Fixed Annuities			Total, All Products
Pre-adoption balance at December 31, 2020	$	7,796		$	800		$	8,596
Effect of shadow reserve adjustments		272			552			824
Post-adoption balance at January 1, 2021		8,068			1,352			9,420
Capitalization of sales inducement costs		43			10			53
Amortization		(827	)		(154	)		(981	)
Balance at December 31, 2021	$	7,284		$	1,208		$	8,492


(in thousands)	Variable Annuities			Fixed Annuities			Total, All Products
Balance at January 1, 2022	$	7,284		$	1,208		$	8,492
Capitalization of sales inducement costs		30			7			37
Amortization		(725	)		(209	)		(934	)
Balance at December 31, 2022	$	6,589		$	1,006		$	7,595


(in thousands)	Variable Annuities			Fixed Annuities			Total, All Products
Balance at January 1, 2023	$	6,589		$	1,006		$	7,595
Capitalization of sales inducement costs		—			—			—
Amortization		(639	)		(235	)		(874	)
Balance at December 31, 2023	$	5,950		$	771		$	6,721

9. REINSURANCE

The Company reinsures a portion of its insurance risks through reinsurance agreements with unaffiliated reinsurance companies.

Reinsurance contracts do not relieve the Company from its primary obligation to policyholders.

The Company generally reinsures 90% of the death benefit liability for new term life insurance policies beginning in 2002 and new individual UL and VUL insurance policies beginning in 2003. Policies issued prior to these dates are not subject to these same reinsurance levels.

However, for IUL policies issued after September 1, 2013 and VUL policies issued after January 1, 2014, the Company generally reinsures 50% of the death benefit liability.

The maximum amount of life insurance risk the Company will retain is $10 million on a single life and $10 million on any flexible premium survivorship life policy; however, reinsurance agreements are in place such that retaining more than $1.5 million of insurance risk on a single life or a flexible premium survivorship life policy is very unusual. Risk on UL and VUL policies is reinsured on a yearly renewable term basis. Risk on most term life policies starting in 2002 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.

The Company also has life insurance risk previously assumed under reinsurance arrangements with an unaffiliated insurance company.

As of December 31, 2002, the Company discontinued underwriting LTC insurance. For existing LTC policies, the Company has continued ceding 50% of the risk on a coinsurance basis to Genworth Life Insurance Company of New York (“Genworth”) and retains the remaining risk. This reinsurance arrangement applies for 1996 and later issues only, which are 89% of the Company’s total in force policies. Under these agreements, the Company has the right, but never the obligation, to recapture some, or all, of the risk ceded to Genworth.

Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in 2010 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 introduced prior to 2010. The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions.

As of December 31, 2023 and 2022, traditional life and UL insurance policies in force were $11.4 billion and $11.5 billion, respectively, of which $8.0 billion and $8.2 billion as of December 31, 2023 and 2022 were reinsured at the respective year ends.

The effect of reinsurance on premiums for traditional long-duration products was as follows:


	Years Ended December 31,
(in thousands)	2023			2022			2021
Direct premiums	$	32,254		$	27,673		$	26,456
Reinsurance ceded		(10,841	)		(10,980	)		(11,040	)
Net premiums	$	21,413		$	16,693		$	15,416

F-23

RiverSource Life Insurance Co. of New York

Policy and contract charges are presented on the Statements of Income net of $11.0 million, $10.3 million and $9.3 million of reinsurance ceded for non-traditional long-duration products for the years ended December 31, 2023, 2022 and 2021, respectively.

The amount of claims recovered through reinsurance on all contracts was $22.6 million, $20.4 million and $16.0 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Reinsurance recoverables include approximately $156.7 million and $149.3 million related to LTC risk ceded to Genworth as of December 31, 2023 and 2022, respectively.

Policyholder account balances, future policy benefits and claims include $1.1 million and $1.2 million related to previously assumed reinsurance arrangements as of December 31, 2023 and 2022, respectively.

10. POLICYHOLDER ACCOUNT BALANCES, FUTURE POLICY BENEFITS AND CLAIMS

Policyholder account balances, future policy benefits and claims consisted of the following:


	December 31,
(in thousands)	2023		2022
Policyholder account balances
Policyholder account balances	$	1,322,686	$	1,392,756
Future policy benefits
Liability for future policy benefits		480,237		461,095
Deferred profit liability		5,772		4,768
Additional liabilities for insurance guarantees		86,365		76,941
Other insurance and annuity liabilities		12,043		4,340
Total future policy benefits		584,417		547,144
Policy claims and other policyholders’ funds		9,896		10,096
Total policyholder account balances, future policy benefits and claims	$	1,916,999	$	1,949,996

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 a GMDB. The Company previously offered contracts with GMAB, GMWB and GMIB provisions. See Note 2 and Note 12 for additional information regarding the Company’s variable annuity guarantees. See Note 13 and Note 17 for additional information regarding the Company’s derivative instruments used to hedge risks related to these guarantees.

Fixed Annuities

Fixed annuities include both deferred and payout contracts. In 2020, the Company discontinued sales of fixed deferred annuities.

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. Liabilities for fixed annuities in a benefit or payout status are based on future estimated payments using established industry mortality tables and interest rates.

Insurance Liabilities

UL policies accumulate cash value that increases by a fixed interest rate. Purchasers of VUL can select from a variety of investment options and can elect to allocate a portion of their account balance 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.

IUL is a UL policy that includes an indexed account. The rate of credited interest for funds allocated by a contractholder to the indexed account is linked to the performance of the specific index for the indexed account (subject to stated account parameters, which include a cap and floor, or a spread). The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed account. The amount allocated by a contractholder to the indexed account creates an embedded derivative which is measured at fair value. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with freestanding derivative instruments. See Note 17 for additional information regarding the Company’s derivative instruments used to hedge the risk related to IUL.

The Company also offers term life insurance as well as DI products. The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years.

Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims, unpaid reported claims and claim adjustment expenses.

F-24

RiverSource Life Insurance Co. of New York

The balances of and changes in policyholder account balances were as follows:


(in thousands, except percentages)	Variable Annuities			Fixed Annuities			Non-Life Contingent Payout Annuities			Universal Life Insurance
Balance at January 1, 2023	$	267,080		$	730,919		$	27,698		$	90,510
Contract deposits		9,736			8,023			4,254			9,224
Policy charges		(554	)		(45	)		—			(12,393	)
Surrenders and other benefits		(30,401	)		(88,051	)		(7,521	)		(3,147	)
Net transfer from (to) separate account liabilities		(3,010	)		—			—			—
Interest credited		8,205			26,789			621			3,014
Balance at December 31, 2023	$	251,056		$	677,635		$	25,052		$	87,208
Weighted-average crediting rate		3.2	%		3.9	%		N/A			3.4	%
Net amount at risk		N/A			N/A			N/A		$	592,770
Cash surrender value⁽¹⁾	$	247,881		$	676,453			N/A		$	76,809


(in thousands, except percentages)	Variable Universal Life Insurance			Indexed Universal Life Insurance			Other Life Insurance			Total, All Products
Balance at January 1, 2023	$	98,080		$	152,485		$	25,984		$	1,392,756
Contract deposits		10,495			13,828			—			55,560
Policy charges		(6,655	)		(8,081	)		—			(27,728	)
Surrenders and other benefits		(4,774	)		(3,765	)		(2,477	)		(140,136	)
Net transfer from (to) separate account liabilities		(2,897	)		—			—			(5,907	)
Interest credited		3,728			4,810			974			48,141
Balance at December 31, 2023	$	97,977		$	159,277		$	24,481		$	1,322,686
Weighted-average crediting rate		4.0	%		2.0	%		4.0	%
Net amount at risk	$	3,049,078		$	951,825		$	10,233
Cash surrender value⁽¹⁾	$	69,218		$	135,122		$	18,716


(in thousands, except percentages)	Variable Annuities			Fixed Annuities			Non-Life Contingent Payout Annuities			Universal Life Insurance
Balance at January 1, 2022	$	268,266		$	751,081		$	28,499		$	94,662
Contract deposits		12,592			10,520			4,901			10,167
Policy charges		(551	)		(12	)		—			(12,494	)
Surrenders and other benefits		(19,469	)		(57,895	)		(7,018	)		(4,888	)
Net transfer from (to) separate account liabilities		(2,028	)		—			—			—
Interest credited		8,270			27,225			1,316			3,063
Balance at December 31, 2022	$	267,080		$	730,919		$	27,698		$	90,510
Weighted-average crediting rate		3.2	%		3.8	%		N/A			3.4	%
Net amount at risk		N/A			N/A			N/A		$	622,950
Cash surrender value⁽¹⁾	$	263,788		$	729,330			N/A		$	79,202


(in thousands, except percentages)	Variable Universal Life Insurance			Indexed Universal Life Insurance			Other Life Insurance			Total, All Products
Balance at January 1, 2022	$	98,292		$	143,396		$	28,265		$	1,412,461
Contract deposits		8,185			14,582			(228	)		60,719
Policy charges		(6,606	)		(7,525	)		—			(27,188	)
Surrenders and other benefits		(4,352	)		(1,800	)		(3,092	)		(98,514	)
Net transfer from (to) separate account liabilities		(1,247	)		—			—			(3,275	)
Interest credited		3,808			3,832			1,039			48,553
Balance at December 31, 2022	$	98,080		$	152,485		$	25,984		$	1,392,756
Weighted-average crediting rate		4.0	%		2.0	%		4.0	%
Net amount at risk	$	3,068,303		$	970,129		$	10,697
Cash surrender value⁽¹⁾	$	70,324		$	126,862		$	20,209

⁽¹⁾	Cash surrender value represents the amount of the contractholder’s account balances distributable at the balance sheet date less certain surrender charges. For VA and VUL, the cash surrender value shown is the proportion of the total cash surrender value related to their fixed account liabilities.

F-25

RiverSource Life Insurance Co. of New York

Refer to Note 12 for the net amount at risk for market risk benefits associated with variable annuities. Fixed and non-life contingent payout annuities do not have net amount at risk in excess of account value. Net amount at risk for insurance products is calculated as the death benefit amount in excess of applicable account values, host, embedded derivative and separate account liabilities.

The following tables present the account values of fixed deferred annuities, fixed insurance, and the fixed portion of variable annuities and variable insurance contracts by range of guaranteed minimum interest rates (“GMIRs”) and the range of the difference between rates credited to policyholders and contractholders as of December 31, 2023 and 2022 and the respective guaranteed minimums, as well as the percentage of account values subject to rate reset in the time period indicated. Rates are reset at management’s discretion, subject to guaranteed minimums.


	December 31, 2023
		Account Values with Crediting Rates
(in thousands, except percentages)	Range of Guaranteed Minimum Crediting Rates	At Guaranteed Minimum			1-49 bps above Guaranteed Minimum			50-99 bps above Guaranteed Minimum			100-150 bps above Guaranteed Minimum			Greater than 150 bps above Guaranteed Minimum			Total
Fixed accounts of variable annuities	1% – 1.99%	$	3,762		$	12,487		$	6,593		$	3,836		$	1,353		$	28,031
	2% – 2.99%		5,385			—			—			—			—			5,385
	3% – 3.99%		119,503			—			—			—			—			119,503
	4% – 5.00%		91,460			—			—			—			—			91,460
	Total	$	220,110		$	12,487		$	6,593		$	3,836		$	1,353		$	244,379
Fixed annuities	1% – 1.99%	$	6,931		$	26,004		$	12,838		$	8,108		$	—		$	53,881
	2% – 2.99%		893			269			—			—			—			1,162
	3% – 3.99%		300,328			86			—			—			—			300,414
	4% – 5.00%		321,863			—			—			—			—			321,863
	Total	$	630,015		$	26,359		$	12,838		$	8,108		$	—		$	677,320
Universal life insurance	1% – 1.99%	$	—		$	—		$	—		$	—		$	—		$	—
	2% – 2.99%		3,411			117			465			7			25			4,025
	3% – 3.99%		47,337			46			259			420			—			48,062
	4% – 5.00%		32,800			59			19			—			—			32,878
	Total	$	83,548		$	222		$	743		$	427		$	25		$	84,965
Fixed accounts of variable universal life insurance	1% – 1.99%	$	—		$	264		$	171		$	—		$	1,068		$	1,503
	2% – 2.99%		920			640			—			41			412			2,013
	3% – 3.99%		6,405			38			123			462			—			7,028
	4% – 5.00%		45,045			144			—			—			—			45,189
	Total	$	52,370		$	1,086		$	294		$	503		$	1,480		$	55,733
Non-indexed accounts of indexed universal life insurance	1% – 1.99%	$	—		$	—		$	184		$	—		$	—		$	184
	2% – 2.99%		9,091			—			—			—			—			9,091
	3% – 3.99%		—			—			—			—			—			—
	4% – 5.00%		—			—			—			—			—			—
	Total	$	9,091		$	—		$	184		$	—		$	—		$	9,275
Other life insurance	1% – 1.99%	$	—		$	—		$	—		$	—		$	—		$	—
	2% – 2.99%		—			—			—			—			—			—
	3% – 3.99%		—			—			—			—			—			—
	4% – 5.00%		18,649			—			—			—			—			18,649
	Total	$	18,649		$	—		$	—		$	—		$	—		$	18,649
Total	1% – 1.99%	$	10,693		$	38,755		$	19,786		$	11,944		$	2,421		$	83,599
	2% – 2.99%		19,700			1,026			465			48			437			21,676
	3% – 3.99%		473,573			170			382			882			—			475,007
	4% – 5.00%		509,817			203			19			—			—			510,039
	Total	$	1,013,783		$	40,154		$	20,652		$	12,874		$	2,858		$	1,090,321
Percentage of total account values that reset in:
Next 12 months			100.0	%		99.7	%		99.0	%		100.0	%		100.0	%		100.0	%
>12 months to 24 months			—			0.3			1.0			—			—			—
>24 months			—			—			—			—			—			—
Total			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

F-26

RiverSource Life Insurance Co. of New York


	December 31, 2022
		Account Values with Crediting Rates
(in thousands, except percentages)	Range of Guaranteed Minimum Crediting Rates	At Guaranteed Minimum			1-49 bps above Guaranteed Minimum			50-99 bps above Guaranteed Minimum			100-150 bps above Guaranteed Minimum			Greater than 150 bps above Guaranteed Minimum			Total
Fixed accounts of variable annuities	1% – 1.99%	$	17,394		$	7,427		$	1,612		$	54		$	44		$	26,531
	2% – 2.99%		6,233			—			—			—			—			6,233
	3% – 3.99%		132,527			—			—			—			—			132,527
	4% – 5.00%		95,654			—			—			—			—			95,654
	Total	$	251,808		$	7,427		$	1,612		$	54		$	44		$	260,945
Fixed annuities	1% – 1.99%	$	27,163		$	26,774		$	12,274		$	2,501		$	1,683		$	70,395
	2% – 2.99%		1,415			—			—			—			—			1,415
	3% – 3.99%		341,318			—			—			—			—			341,318
	4% – 5.00%		317,477			—			—			—			—			317,477
	Total	$	687,373		$	26,774		$	12,274		$	2,501		$	1,683		$	730,605
Universal life insurance	1% – 1.99%	$	—		$	—		$	—		$	—		$	—		$	—
	2% – 2.99%		3,562			—			75			4			6			3,647
	3% – 3.99%		49,437			36			185			80			—			49,738
	4% – 5.00%		35,024			—			—			—			—			35,024
	Total	$	88,023		$	36		$	260		$	84		$	6		$	88,409
Fixed accounts of variable universal life insurance	1% – 1.99%	$	744		$	22		$	166		$	—		$	536		$	1,468
	2% – 2.99%		1,626			—			56			59			291			2,032
	3% – 3.99%		6,858			14			191			45			—			7,108
	4% – 5.00%		48,372			—			—			—			—			48,372
	Total	$	57,600		$	36		$	413		$	104		$	827		$	58,980
Non-indexed accounts of indexed universal life insurance	1% – 1.99%	$	—		$	—		$	440		$	—		$	—		$	440
	2% – 2.99%		8,622			—			—			—			—			8,622
	3% – 3.99%		—			—			—			—			—			—
	4% – 5.00%		—			—			—			—			—			—
	Total	$	8,622		$	—		$	440		$	—		$	—		$	9,062
Other life insurance	1% – 1.99%	$	—		$	—		$	—		$	—		$	—		$	—
	2% – 2.99%		—			—			—			—			—			—
	3% – 3.99%		—			—			—			—			—			—
	4% – 5.00%		20,154			—			—			—			—			20,154
	Total	$	20,154		$	—		$	—		$	—		$	—		$	20,154
Total	1% – 1.99%	$	45,301		$	34,223		$	14,492		$	2,555		$	2,263		$	98,834
	2% – 2.99%		21,458			—			131			63			297			21,949
	3% – 3.99%		530,140			50			376			125			—			530,691
	4% – 5.00%		516,681			—			—			—			—			516,681
	Total	$	1,113,580		$	34,273		$	14,999		$	2,743		$	2,560		$	1,168,155
Percentage of total account values that reset in:
Next 12 months			99.9	%		83.0	%		89.7	%		100.0	%		100.0	%		99.3	%
>12 months to 24 months			0.1			16.2			9.9			—			—			0.7
>24 months			—			0.8			0.4			—			—			—
Total			100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

F-27

RiverSource Life Insurance Co. of New York

The following tables summarize the balances of and changes in the liability for future policy benefits, including the January 1, 2021 adoption of ASU 2018-12:


(in thousands)	Life Contingent Payout Annuities			Term and Whole Life Insurance			Disability Income Insurance			Long Term Care Insurance			Total, All Products
Pre-adoption balance at December 31, 2020	$	89,471		$	37,489		$	27,771		$	359,311		$	514,042
Effect of shadow reserve adjustments		(10,000	)		—			—			(43,400	)		(53,400	)
Adjustments for loss contracts (with premiums in excess of gross premiums) under the modified retrospective approach		200			—			—			1,229			1,429
Effect of change in deferred profit liability		(2,755	)		—			—			—			(2,755	)
Effect of remeasurement of the liability at the current single A discount rate		12,644			15,220			12,083			128,049			167,996
Post-adoption balance at January 1, 2021		89,560			52,709			39,854			445,189			627,312
Less: reinsurance recoverable		—			35,085			702			199,963			235,750
Post-adoption balance at January 1, 2021, after reinsurance recoverable	$	89,560		$	17,624		$	39,152		$	245,226		$	391,562

(in thousands, except percentages)

Present Value of Expected Net Premiums:
Balance at January 1, 2021	$	—		$	37,950		$	12,288		$	77,495		$	127,733
Beginning balance at original discount rate		—			29,946			9,404			62,785			102,135
Effect of changes in cash flow assumptions		—			24			—			(12	)		12
Effect of actual variances from expected experience		—			173			(1,957	)		(3,068	)		(4,852	)
Adjusted beginning of year balance	$	—		$	30,143		$	7,447		$	59,705		$	97,295
Issuances		1,730			4,899			917			—			7,546
Interest accrual		—			1,540			467			3,040			5,047
Net premiums collected		(1,730	)		(3,502	)		(1,062	)		(7,848	)		(14,142	)
Derecognition (lapses)		—			—			—			—			—
Ending balance at original discount rate	$	—		$	33,080		$	7,769		$	54,897		$	95,746
Effect of changes in discount rate assumptions		—			5,881			1,694			10,204			17,779
Balance at December 31, 2021	$	—		$	38,961		$	9,463		$	65,101		$	113,525

Present Value of Future Policy Benefits:
Balance at January 1, 2021	$	89,560		$	90,660		$	52,142		$	522,684		$	755,046
Beginning balance at original discount rate		76,916			67,434			37,175			379,926			561,451
Effect of changes in cash flow assumptions		—			24			—			62			86
Effect of actual variances from expected experience		(666	)		116			(2,203	)		(3,315	)		(6,068	)
Adjusted beginning of year balance	$	76,250		$	67,574		$	34,972		$	376,673		$	555,469
Issuances		1,927			4,897			917			—			7,741
Interest accrual		3,137			3,932			2,049			20,216			29,334
Benefit payments		(9,837	)		(6,488	)		(2,683	)		(19,157	)		(38,165	)
Derecognition (lapses)		—			—			—			—			—
Ending balance at original discount rate	$	71,477		$	69,915		$	35,255		$	377,732		$	554,379
Effect of changes in discount rate assumptions		8,230			17,716			11,463			112,657			150,066
Balance at December 31, 2021	$	79,707		$	87,631		$	46,718		$	490,389		$	704,445

Adjustment due to reserve flooring	$	—		$	124		$	—		$	—		$	124

Net liability for future policy benefits	$	79,707		$	48,794		$	37,255		$	425,288		$	591,044
Less: reinsurance recoverable		—			33,344			780			191,576			225,700
Net liability for future policy benefits, after reinsurance recoverable	$	79,707		$	15,450		$	36,475		$	233,712		$	365,344
Discounted expected future gross premiums	$	—		$	95,686		$	59,559		$	68,855		$	224,100
Expected future gross premiums	$	—		$	126,793		$	71,497		$	80,456		$	278,746
Expected future benefit payments	$	98,474		$	116,891		$	61,301		$	678,673		$	955,339

Weighted average interest accretion rate		4.2	%		6.4	%		5.9	%		5.4	%
Weighted average discount rate		2.5	%		2.7	%		2.7	%		2.8	%

Weighted average duration of liability (in years)		7			7			8			10

F-28

RiverSource Life Insurance Co. of New York


(in thousands, except percentages)	Life Contingent Payout Annuities			Term and Whole Life Insurance			Disability Income Insurance			Long Term Care Insurance			Total, All Products
Present Value of Expected Net Premiums:
Balance at January 1, 2022	$	—		$	38,961		$	9,463		$	65,101		$	113,525
Beginning balance at original discount rate		—			33,080			7,769			54,897			95,746
Effect of changes in cash flow assumptions		—			2,253			41			(970	)		1,324
Effect of actual variances from expected experience		—			478			(612	)		(2,913	)		(3,047	)
Adjusted beginning of year balance	$	—		$	35,811		$	7,198		$	51,014		$	94,023
Issuances		2,950			2,675			695			—			6,320
Interest accrual		8			1,631			390			2,654			4,683
Net premiums collected		(2,958	)		(3,439	)		(857	)		(7,255	)		(14,509	)
Derecognition (lapses)		—			—			—			—			—
Ending balance at original discount rate	$	—		$	36,678		$	7,426		$	46,413		$	90,517
Effect of changes in discount rate assumptions		—			(2,058	)		(100	)		226			(1,932	)
Balance at December 31, 2022	$	—		$	34,620		$	7,326		$	46,639		$	88,585

Present Value of Future Policy Benefits:
Balance at January 1, 2022	$	79,707		$	87,631		$	46,718		$	490,389		$	704,445
Beginning balance at original discount rate		71,477			69,915			35,255			377,732			554,379
Effect of changes in cash flow assumptions		—			1,989			53			1,932			3,974
Effect of actual variances from expected experience		(1,876	)		380			(943	)		(1,772	)		(4,211	)
Adjusted beginning of year balance	$	69,601		$	72,284		$	34,365		$	377,892		$	554,142
Issuances		2,950			2,676			698			—			6,324
Interest accrual		2,830			4,022			1,998			19,965			28,815
Benefit payments		(9,180	)		(4,744	)		(2,572	)		(20,943	)		(37,439	)
Derecognition (lapses)		—			—			—			—			—
Ending balance at original discount rate	$	66,201		$	74,238		$	34,489		$	376,914		$	551,842
Effect of changes in discount rate assumptions		(4,814	)		(532	)		1,622			1,493			(2,231	)
Balance at December 31, 2022	$	61,387		$	73,706		$	36,111		$	378,407		$	549,611

Adjustment due to reserve flooring	$	—		$	69		$	—		$	—		$	69

Net liability for future policy benefits	$	61,387		$	39,155		$	28,785		$	331,768		$	461,095
Less: reinsurance recoverable		—			27,134			669			148,609			176,412
Net liability for future policy benefits, after reinsurance recoverable	$	61,387		$	12,021		$	28,116		$	183,159		$	284,683
Discounted expected future gross premiums	$	—		$	93,084		$	47,976		$	51,373		$	192,433
Expected future gross premiums	$	—		$	149,730		$	68,574		$	69,925		$	288,229
Expected future benefit payments	$	90,675		$	123,160		$	59,626		$	660,615		$	934,076

Weighted average interest accretion rate		4.2	%		6.4	%		6.1	%		5.4	%
Weighted average discount rate		5.2	%		5.5	%		5.4	%		5.4	%

Weighted average duration of liability (in years)		5			6			8			9

F-29

RiverSource Life Insurance Co. of New York


(in thousands, except percentages)	Life Contingent Payout Annuities			Term and Whole Life Insurance			Disability Income Insurance			Long Term Care Insurance			Total, All Products
Present Value of Expected Net Premiums:
Balance at January 1, 2023	$	—		$	34,620		$	7,326		$	46,639		$	88,585
Beginning balance at original discount rate		—			36,678			7,426			46,413			90,517
Effect of changes in cash flow assumptions		—			(1,238	)		(788	)		3,562			1,536
Effect of actual variances from expected experience		—			(754	)		819			1,791			1,856
Adjusted beginning of year balance	$	—		$	34,686		$	7,457		$	51,766		$	93,909
Issuances		8,076			2,607			716			—			11,399
Interest accrual		39			1,747			390			2,473			4,649
Net premiums collected		(8,115	)		(3,391	)		(843	)		(6,842	)		(19,191	)
Derecognition (lapses)		—			—			—			—			—
Ending balance at original discount rate	$	—		$	35,649		$	7,720		$	47,397		$	90,766
Effect of changes in discount rate assumptions		—			(1,127	)		116			1,092			81
Balance at December 31, 2023	$	—		$	34,522		$	7,836		$	48,489		$	90,847

Present Value of Future Policy Benefits:
Balance at January 1, 2023	$	61,387		$	73,706		$	36,111		$	378,407		$	549,611
Beginning balance at original discount rate		66,201			74,238			34,489			376,914			551,842
Effect of changes in cash flow assumptions		—			(1,241	)		(1,091	)		2,302			(30	)
Effect of actual variances from expected experience		(1,074	)		(1,296	)		1,000			7,258			5,888
Adjusted beginning of year balance	$	65,127		$	71,701		$	34,398		$	386,474		$	557,700
Issuances		8,076			2,607			714			—			11,397
Interest accrual		2,810			4,066			2,031			20,274			29,181
Benefit payments		(8,743	)		(5,215	)		(2,500	)		(23,464	)		(39,922	)
Derecognition (lapses)		—			—			—			—			—
Ending balance at original discount rate	$	67,270		$	73,159		$	34,643		$	383,284		$	558,356
Effect of changes in discount rate assumptions		(3,009	)		1,079			2,470			12,102			12,642
Balance at December 31, 2023	$	64,261		$	74,238		$	37,113		$	395,386		$	570,998

Adjustment due to reserve flooring	$	—		$	86		$	—		$	—		$	86

Net liability for future policy benefits	$	64,261		$	39,802		$	29,277		$	346,897		$	480,237
Less: reinsurance recoverable		—			28,013			942			156,173			185,128
Net liability for future policy benefits, after reinsurance recoverable	$	64,261		$	11,789		$	28,335		$	190,724		$	295,109
Discounted expected future gross premiums	$	—		$	88,128		$	47,156		$	52,116		$	187,400
Expected future gross premiums	$	—		$	138,691		$	65,922		$	69,651		$	274,264
Expected future benefit payments	$	93,290		$	120,813		$	58,748		$	653,735		$	926,586

Weighted average interest accretion rate		4.2	%		6.2	%		6.1	%		5.3	%
Weighted average discount rate		4.9	%		5.1	%		5.1	%		5.1	%

Weighted average duration of liability (in years)		6			7			8			8

Impacts of the annual review of policy benefit reserves assumptions are reflected within the effect of changes in cash flow assumptions in the disaggregated rollforwards above. The annual review of policy benefit reserves assumptions in the third quarter of 2023 resulted in a net decrease in future policy benefit reserves, primarily due to updates to LTC premium rate increase and benefit reduction assumptions. The annual review of policy benefit reserves assumptions in the third quarter of 2022 resulted in a net increase in future policy benefit reserves, primarily due to updates to LTC morbidity, premium rate increase and benefit reduction assumptions, and updates to term life lapse assumptions. The annual review of policy benefit reserves assumptions in the third quarter of 2021 resulted in a net decrease in future policy benefit reserves, primarily due to updates to LTC premium rate increase and benefit reduction assumptions.

F-30

RiverSource Life Insurance Co. of New York

The balances of and changes in additional liabilities related to insurance guarantees were as follows:


(in thousands, except percentages)	Universal Life Insurance			Variable Universal Life Insurance			Other Life Insurance			Total, All Products
Balance at January 1, 2023	$	72,524		$	4,620		$	(203	)	$	76,941
Interest accrual		2,317			344			28			2,689
Benefit accrual		9,474			405			218			10,097
Benefit payments		(4,890	)		(405	)		(309	)		(5,604	)
Effect of actual variances from expected experience		(751	)		462			(140	)		(429	)
Impact of change in net unrealized (gains) losses on securities		1,965			83			623			2,671
Balance at December 31, 2023	$	80,639		$	5,509		$	217		$	86,365
Weighted average interest accretion rate		2.9	%		6.7	%		4.0	%
Weighted average discount rate		3.2	%		7.0	%		4.1	%
Weighted average duration of reserves (in years)		10			8			7


(in thousands, except percentages)	Universal Life Insurance			Variable Universal Life Insurance			Other Life Insurance			Total, All Products
Balance at January 1, 2022	$	74,498		$	4,328		$	2,717		$	81,543
Interest accrual		2,115			297			42			2,454
Benefit accrual		8,754			344			92			9,190
Benefit payments		(1,956	)		—			(426	)		(2,382	)
Effect of actual variances from expected experience		(2,836	)		(6	)		(82	)		(2,924	)
Impact of change in net unrealized (gains) losses on securities		(8,051	)		(343	)		(2,546	)		(10,940	)
Balance at December 31, 2022	$	72,524		$	4,620		$	(203	)	$	76,941
Weighted average interest accretion rate		2.9	%		6.7	%		4.2	%
Weighted average discount rate		3.2	%		7.1	%		4.0	%
Weighted average duration of reserves (in years)		10			7			7

The amount of revenue and interest recognized in the Statements of Income was as follows:


	Years Ended December 31,
	2023				2022				2021
(in thousands)	Gross Premiums		Interest Expense		Gross Premiums		Interest Expense		Gross Premiums		Interest Expense
Life contingent payout annuities	$	8,895	$	2,771	$	3,353	$	2,822	$	1,730	$	3,137
Term and whole life insurance		9,177		2,319		9,534		2,391		9,235		2,392
Disability income insurance		6,609		1,641		6,765		1,608		6,928		1,582
Long term care insurance		7,573		17,801		8,021		17,311		8,563		17,176
Total	$	32,254	$	24,532	$	27,673	$	24,132	$	26,456	$	24,287

The following table summarizes the balances of and changes in unearned revenue, including the January 1, 2021 adoption of ASU 2018-12:


(in thousands)	Universal Life Insurance			Variable Universal Life Insurance			Indexed Universal Life Insurance			Total, All Products
Pre-adoption balance at December 31, 2020	$	28		$	3,836		$	450		$	4,314
Effect of shadow reserve adjustments		63			449			11,632			12,144
Post-adoption balance at January 1, 2021		91			4,285			12,082			16,458
Deferral of revenue		19			1,386			3,970			5,375
Amortization		(13	)		(377	)		(1,007	)		(1,397	)
Balance at December 31, 2021		97			5,294			15,045			20,436
Deferral of revenue		15			2,086			3,913			6,014
Amortization		(14	)		(468	)		(1,224	)		(1,706	)
Balance at December 31, 2022		98			6,912			17,734			24,744
Deferral of revenue		14			2,714			3,877			6,605
Amortization		(14	)		(588	)		(1,457	)		(2,059	)
Balance at December 31, 2023	$	98		$	9,038		$	20,154		$	29,290

F-31

RiverSource Life Insurance Co. of New York

11. SEPARATE ACCOUNT ASSETS AND LIABILITIES

The fair value of separate account assets is invested exclusively in mutual funds.

No gains or losses were recognized on assets transferred to separate accounts for the years ended December 31, 2023, 2022 and 2021.

The balances of and changes in separate account liabilities were as follows:


(in thousands)	Variable Annuities			Variable Universal Life			Total
Balance at January 1, 2023	$	3,793,152		$	437,738		$	4,230,890
Premiums and deposits		83,153			25,482			108,635
Policy charges		(77,945	)		(18,750	)		(96,695	)
Surrenders and other benefits		(298,531	)		(20,075	)		(318,606	)
Investment return		516,055			71,946			588,001
Net transfer from (to) general account		2,510			661			3,171
Other charges		(69	)		(3	)		(72	)
Balance at December 31, 2023	$	4,018,325		$	496,999		$	4,515,324
Cash surrender value	$	3,912,313		$	472,542		$	4,384,855


(in thousands)	Variable Annuities			Variable Universal Life			Total
Balance at January 1, 2022	$	4,897,176		$	535,085		$	5,432,261
Premiums and deposits		102,016			25,622			127,638
Policy charges		(80,319	)		(17,861	)		(98,180	)
Surrenders and other benefits		(271,750	)		(13,816	)		(285,566	)
Investment return		(856,480	)		(92,941	)		(949,421	)
Net transfer from (to) general account		2,414			1,648			4,062
Other charges		95			1			96
Balance at December 31, 2022	$	3,793,152		$	437,738		$	4,230,890
Cash surrender value	$	3,676,735		$	417,230		$	4,093,965

12. MARKET RISK BENEFITS

Market risk benefits are contracts or contract features that both provide protection to the contractholder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Most of the variable annuity contracts issued by the Company contain a GMDB provision. The Company previously offered contracts containing GMWB, GMAB, or GMIB provisions.

The GMDB provisions provide a specified minimum return upon death of the contractholder. The death benefit payable is the greater of (i) the contract value less any purchase payment credits subject to recapture less a pro-rata portion of any rider fees, or (ii) the GMDB provisions specified in the contract. The Company has the following primary GMDB provisions:

•

Return of premium — provides purchase payments minus adjusted partial surrenders.

•

Reset — provides that the value resets to the account value at specified contract anniversary intervals 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 contract 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 or by a benefit credit if the contract includes this provision.

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.

•

Credits are applied annually for a specified number of years to increase the guaranteed amount as long as withdrawals have not been taken.

F-32

RiverSource Life Insurance Co. of New York

Variable annuity contractholders age 79 or younger at contract issue could 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 a specified percentage 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.

Individual variable annuity contracts may have both a death benefit and a living benefit. Net amount at risk is quantified for each benefit and a composite net amount at risk is calculated using the greater of the death benefit or living benefit for each individual contract. The net amount at risk for GMDB and GMAB is defined as the current guaranteed benefit amount in excess of the current contract value. The net amount at risk for GMIB is defined as the greater of the present value of the minimum guaranteed annuity payments less the current contract value or zero. The net amount at risk for GMWB is defined as the greater of the present value of the minimum guaranteed withdrawal payments less the current contract value or zero.

The following tables summarize the balances of and changes in market risk benefits, including the January 1, 2021 adoption of ASU 2018-12:


	(in thousands)
Pre-adoption balance at December 31, 2020	$	137,943
Effect of shadow reserve adjustments		(396	)
Adjustments for the cumulative effect of the changes in instrument-specific credit risk on market risk benefits between the original contract issuance date and the transition date		28,704
Adjustments for the remaining difference (exclusive of the instrument-specific credit risk change and host contract adjustments) between previous carrying amount and fair value measurements for the market risk benefits		28,135
Post-adoption balance at January 1, 2021	$	194,386


	Years Ended December 31,
(in thousands, except age)	2023			2022			2021
Balance at beginning of period	$	4,137		$	92,975		$	194,386
Issuances		3			42			284
Interest accrual and time decay		(8,114	)		(16,308	)		(17,939	)
Reserve increase from attributed fees collected		43,343			44,350			44,469
Reserve release for benefit payments and derecognition		(1,878	)		(1,391	)		(135	)
Effect of changes in interest rates and bond markets		(19,266	)		(216,461	)		(55,587	)
Effect of changes in equity markets and subaccount performance		(69,222	)		120,007			(77,231	)
Effect of changes in equity index volatility		(4,254	)		11,723			3,204
Actual policyholder behavior different from expected behavior		(2,579	)		(1,594	)		(361	)
Effect of changes in other future expected assumptions		6,621			(5,362	)		7,662
Effect of changes in the instrument-specific credit risk on market risk benefits		3,734			(23,844	)		(5,777	)
Balance at end of period	$	(47,475	)	$	4,137		$	92,975
Reconciliation of the gross balances in an asset or liability position:
Asset position	$	94,641		$	64,498		$	36,740
Liability position		(47,166	)		(68,635	)		(129,715	)
Net asset (liability) position	$	47,475		$	(4,137	)	$	(92,975	)
Guaranteed benefit amount in excess of current account balances (net amount at risk):
Death benefits	$	58,245		$	180,279		$	1,325
Living benefits	$	54,321		$	185,651		$	427
Composite (greater of)	$	107,200		$	339,888		$	1,750

Weighted average attained age of contractholders		67			67			67

Changes in unrealized (gains) losses in net income relating to liabilities held at end of period	$	(96,583	)	$	(106,928	)	$	(132,470	)
Changes in unrealized (gains) losses in other comprehensive income relating to liabilities held at end of period	$	3,742		$	(23,420	)	$	(4,551	)

The following tables provide a summary of the significant inputs and assumptions used in the fair value measurements developed by the Company or reasonably available to the Company of market risk benefits:


	December 31, 2023
	Fair Value			Valuation Technique	Significant Inputs and Assumptions	Range						Weighted Average
	(in thousands)
Market risk benefits	$	(47,475	)	Discounted cash flow	Utilization of guaranteed withdrawals⁽¹⁾		0.0	%	–	48.0	%		12.1	%
					Surrender rate⁽²⁾		0.3	%	–	55.7	%		3.9	%
					Market volatility⁽³⁾		0.0	%	–	25.2	%		10.6	%
					Nonperformance risk⁽⁴⁾		85 bps						85	bps
					Mortality rate⁽⁵⁾		0.0%		–	35.4	%		1.7	%

F-33

RiverSource Life Insurance Co. of New York


	December 31, 2022
	Fair Value		Valuation Technique	Significant Inputs and Assumptions	Range						Weighted Average
	(in thousands)
Market risk benefits	$	4,137	Discounted cash flow	Utilization of guaranteed withdrawals⁽¹⁾		0.0	%	–	48.0	%		11.4	%
				Surrender rate⁽²⁾		0.2	%	–	45.6	%		3.9	%
				Market volatility⁽³⁾		5.0	%	–	17.4	%		11.7	%
				Nonperformance risk⁽⁴⁾		95 bps						95	bps
				Mortality rate⁽⁵⁾		0.0%		–	33.2	%		1.6	%

⁽¹⁾

The utilization of guaranteed withdrawals represents the percentage of contractholders that will begin withdrawing in any giver year. The weighted average utilization rate represents the average assumption, weighted based on the benefit base. The calculation excludes policies that have already started taking withdrawals.

⁽²⁾	The weighted average surrender rate represents the average assumption weighted based on the account value of each contract.

⁽³⁾	Market volatility represents the implied volatility of each contractholder’s mix of funds. The weighted average market volatility represents the average volatility across all contracts, weighted by the size of the guaranteed benefit.

⁽⁴⁾	The nonperformance risk is the spread added to the U.S. Treasury curve.

⁽⁵⁾	The weighted average mortality rate represents the average assumption weighted based on the account value of each contract.

Changes to Significant Inputs and Assumptions:

During the years ended December 31, 2023 and 2022, the Company updated inputs and assumptions based on management’s review of experience studies. These updates resulted in the following notable changes in the fair value estimates of market risk benefits calculations:

Year ended December 31, 2023

•

Updates to utilization of guaranteed withdrawals assumptions resulted in a decrease to pre-tax income of $1.5 million.

•

Updates to surrender assumptions resulted in a decrease to pre-tax income of $5.0 million.

Year ended December 31, 2022

•

Updates to utilization of guaranteed withdrawals assumptions resulted in a decrease to pre-tax income of $1.9 million.

•

Updates to surrender assumptions resulted in a decrease to pre-tax income of $10.1 million.

•

Updates to mortality assumptions resulted in a decrease to pre-tax income of $2.1 million.

Refer to the rollforward of market risk benefits for the impacts of changes to interest rate, equity market, volatility and nonperformance risk assumptions.

Uncertainty of Fair Value Measurements

Significant increases (decreases) in utilization and volatility used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value.

Significant increases (decreases) in nonperformance risk and surrender assumptions used in the fair value measurement of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.

Significant increases (decreases) in mortality assumptions used in the fair value measurement of the death benefit portion of market risk benefits in isolation would have resulted in a significantly higher (lower) liability value whereas significant increases (decreases) in mortality rates used in the fair value measurement of the life contingent portion of market risk benefits in isolation would have resulted in a significantly lower (higher) liability value.

Surrender assumptions, utilization assumptions and mortality assumptions vary with the type of base product, type of rider, duration of the policy, age of the contractholder, calendar year of the projection, previous withdrawal history, and the relationship between the value of the guaranteed benefit and the contract accumulation value.

Determination of Fair Value

The Company values market risk benefits using internal valuation models. These models include observable capital market assumptions and significant unobservable inputs related to implied volatility as well as contractholder behavior assumptions that include margins for risk, all of which the Company believes a market participant would expect. The fair value also reflects a current estimate of the Company’s nonperformance risk. Given the significant unobservable inputs to this valuation, these measurements are classified as Level 3.

13. FAIR VALUES OF ASSETS AND LIABILITIES

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit price. The exit price assumes the asset or liability is not exchanged subject to a forced liquidation or distressed sale.

F-34

RiverSource Life Insurance Co. of New York

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, 2023
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Available-for-Sale securities:
Corporate debt securities	$	—	$	897,905	$	23,276	$	921,181
Residential mortgage backed securities		—		252,823		—		252,823
Commercial mortgage backed securities		—		289,746		—		289,746
State and municipal obligations		—		90,111		—		90,111
Asset backed securities		—		30,738		—		30,738
Foreign government bonds and obligations		—		722		—		722
U.S. government and agency obligations		220		—		—		220
Total Available-for-Sale securities		220		1,562,045		23,276		1,585,541
Cash equivalents		—		79,967		—		79,967
Market risk benefits		—		—		94,641		94,641	⁽¹⁾
Other assets:
Interest rate derivative contracts		141		3,039		—		3,180
Equity derivative contracts		1,540		69,821		—		71,361
Foreign exchange derivative contracts		74		232		—		306
Total other assets		1,755		73,092		—		74,847
Separate account assets at net asset value (“NAV”)								4,515,324	⁽²⁾
Total assets at fair value	$	1,975	$	1,715,104	$	117,917	$	6,350,320

Liabilities
Policyholder account balances, future policy benefits and claims:
IUL embedded derivatives	$	—	$	—	$	50,529	$	50,529
Total policyholder account balances, future policy benefits and claims		—		—		50,529		50,529	⁽³⁾
Market risk benefits		—		—		47,166		47,166	⁽¹⁾
Other liabilities:
Interest rate derivative contracts		2		2,806		—		2,808
Equity derivative contracts		165		35,344		—		35,509
Foreign exchange derivative contracts		104		—		—		104
Credit derivative contracts		—		3,508		—		3,508
Total other liabilities		271		41,658		—		41,929
Total liabilities at fair value	$	271	$	41,658	$	97,695	$	139,624

F-35

RiverSource Life Insurance Co. of New York


	December 31, 2022
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Available-for-Sale securities:
Corporate debt securities	$	—	$	803,156	$	29,372	$	832,528
Residential mortgage backed securities		—		268,389		—		268,389
Commercial mortgage backed securities		—		301,631		—		301,631
State and municipal obligations		—		91,760		—		91,760
Asset backed securities		—		33,440		—		33,440
Foreign government bonds and obligations		—		780		—		780
U.S. government and agency obligations		215		—		—		215
Total Available-for-Sale securities		215		1,499,156		29,372		1,528,743
Cash equivalents		—		204,645		—		204,645
Market risk benefits		—		—		64,498		64,498	⁽¹⁾
Other assets:
Interest rate derivative contracts		138		11,278		—		11,416
Equity derivative contracts		3,851		77,768		—		81,619
Foreign exchange derivative contracts		11		1,230		—		1,241
Total other assets		4,000		90,276		—		94,276
Separate account assets at NAV								4,230,890	⁽²⁾
Total assets at fair value	$	4,215	$	1,794,077	$	93,870	$	6,123,052

Liabilities
Policyholder account balances, future policy benefits and claims:
IUL embedded derivatives	$	—	$	—	$	42,382	$	42,382
Total policyholder account balances, future policy benefits and claims		—		—		42,382		42,382	⁽⁴⁾
Market risk benefits		—		—		68,635		68,635	⁽¹⁾
Other liabilities:
Interest rate derivative contracts		—		7,625		—		7,625
Equity derivative contracts		53		50,834		—		50,887
Foreign exchange derivative contracts		272		—		—		272
Total other liabilities		325		58,459		—		58,784
Total liabilities at fair value	$	325	$	58,459	$	111,017	$	169,801

⁽¹⁾	See Note 12 for additional information related to market risk benefits, including the balances of and changes in market risk benefits as well as the significant inputs and assumptions used in the fair value measurements of market risk benefits.

⁽²⁾	Amounts are comprised of financial instruments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy.

⁽³⁾	The Company’s adjustment for nonperformance risk resulted in a $7.5 million cumulative decrease to the embedded derivatives as of December 31, 2023.

⁽⁴⁾	The Company’s adjustment for nonperformance risk resulted in a $7.7 million cumulative decrease to the embedded derivatives as of December 31, 2022.

The following tables provide a summary of changes in Level 3 assets and liabilities measured at fair value on a recurring basis:


	Available-for- Sale Securities				Policyholder Account Balances, Future Policy Benefits and Claims
(in thousands)	Corporate Debt Securities				IUL Embedded Derivatives
Balance at January 1, 2023		$	29,372			$	(42,382	)
Total gains (losses) included in:
Net income			(68	)⁽¹⁾			(13,670	)⁽²⁾
Other comprehensive income (loss)			585				—
Purchases			419				—
Issues			—				(2,453	)
Settlements			(7,032	)			7,976
Balance at December 31, 2023		$	23,276			$	(50,529	)
Changes in unrealized gains (losses) in net income relating to assets and liabilities held at December 31, 2023		$	(68	)⁽¹⁾		$	(13,670	)⁽²⁾
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets and liabilities held at December 31, 2023		$	511			$	—

F-36

RiverSource Life Insurance Co. of New York


	Available-for-Sale Securities				Policyholder Account Balances, Future Policy Benefits and Claims
(in thousands)	Corporate Debt Securities				IUL Embedded Derivatives
Balance at January 1, 2022		$	45,834			$	(51,617	)
Total gains (losses) included in:
Net income			(69	)⁽¹⁾			5,029	⁽²⁾
Other comprehensive income (loss)			(3,002	)			—
Issues			—				(2,483	)
Settlements			(13,391	)			6,689
Balance at December 31, 2022		$	29,372			$	(42,382	)
Changes in unrealized gains (losses) in net income relating to assets and liabilities held at December 31, 2022		$	(66	)⁽¹⁾		$	5,029	⁽²⁾
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets and liabilities held at December 31, 2022		$	(2,829	)		$	—


	Available-for-Sale Securities				Policyholder Account Balances, Future Policy Benefits and Claims
(in thousands)	Corporate Debt Securities				IUL Embedded Derivatives
Balance at January 1, 2021		$	64,484			$	(52,327	)
Total gains (losses) included in:
Net income			(66	)⁽¹⁾			(4,136	)⁽²⁾
Other comprehensive income (loss)			(1,237	)			—
Issues			—				(299	)
Settlements			(9,341	)			5,145
Transfers into Level 3			33,041				—
Transfers out of Level 3			(41,047	)			—
Balance at December 31, 2021		$	45,834			$	(51,617	)
Changes in unrealized gains (losses) in net income relating to assets and liabilities held at December 31, 2021		$	(61	)⁽¹⁾		$	(4,136	)⁽²⁾
Changes in unrealized gains (losses) in other comprehensive income (loss) relating to assets and liabilities held at December 31, 2021		$	(962	)		$	—

⁽¹⁾	Included in Net investment income.

⁽²⁾	Included in Interest credited to fixed accounts.

The increase (decrease) to pretax income of the Company’s adjustment for nonperformance risk on the fair value of its embedded derivatives was $20 thousand, $1.7 million and $(390) thousand, net of the reinsurance accrual, for the years ended December 31, 2023, 2022 and 2021, respectively.

Securities transferred from Level 3 primarily represent securities with fair values that are now obtained from a third-party pricing service with observable inputs or fair values that were included in an observable transaction with a market participant. Securities transferred to Level 3 represent securities with fair values that are now based on a single non-binding broker quote.

The following tables provide 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:


	December 31, 2023
	Fair Value		Valuation Technique	Unobservable Input	Range						Weighted Average
	(in thousands)
Corporate debt securities (private placements)	$	23,253	Discounted cash flow	Yield/spread to U.S. Treasuries⁽¹⁾		1.0	%	–	2.4	%		1.6	%
IUL embedded derivatives	$	50,529	Discounted cash flow	Nonperformance risk⁽²⁾		85 bps						85	bps

F-37

RiverSource Life Insurance Co. of New York


	December 31, 2022
	Fair Value		Valuation Technique	Unobservable Input	Range						Weighted Average
	(in thousands)
Corporate debt securities (private placements)	$	29,351	Discounted cash flow	Yield/spread to U.S. Treasuries⁽¹⁾		1.1	%	–	2.3	%		1.7	%
IUL embedded derivatives	$	42,382	Discounted cash flow	Nonperformance risk⁽²⁾		95 bps						95	bps

⁽¹⁾	The weighted average for the yield/spread to U.S. Treasuries for corporate debt securities (private placements) is weighted based on the security’s market value as a percentage of the aggregate market value of the securities.

⁽²⁾	The nonperformance risk is the spread added to the U.S. Treasury curve.

Level 3 measurements not included in the tables above are obtained from non-binding broker quotes where unobservable inputs utilized in the fair value calculation are not reasonably available to the Company.

Uncertainty of Fair Value Measurements

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 have resulted in a significantly lower (higher) fair value measurement.

Significant increases (decreases) in nonperformance risk used in the fair value measurement of the IUL embedded derivatives in isolation would have resulted in a significantly lower (higher) fair value measurement.

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

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 primarily include U.S. Treasuries.

Level 2 securities primarily include corporate bonds, residential mortgage backed securities, commercial mortgage backed securities, state and municipal obligations, asset backed securities 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. The fair value of securities included in an observable transaction with a market participant are also considered Level 2 when the market is not active.

Level 3 securities primarily include certain corporate bonds. The fair value of corporate bonds 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. The Company’s privately placed corporate bonds are typically based on a single non-binding broker quote.

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.

Cash Equivalents

Cash equivalents include time deposits and other highly liquid investments with original or remaining maturities at the time of purchase of 90 days or less. The Company’s 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.

F-38

RiverSource Life Insurance Co. of New York

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 variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active over-the-counter (“OTC”) markets is 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 as of both December 31, 2023 and 2022. See Note 16 and Note 17 for further information on the credit risk of derivative instruments and related collateral.

Separate Account Assets

The fair value of assets held by separate accounts is determined by the NAV of the funds in which those separate accounts are invested. The NAV is used as a practical expedient for fair value and represents the exit price for the separate account. Separate account assets are excluded from classification in the fair value hierarchy.

Liabilities

Policyholder Account Balances, Future Policy Benefits and Claims

There is no active market for the transfer of the Company’s embedded derivatives attributable to the provisions of IUL products.

The Company uses discounted cash flow models to determine the fair value of the embedded derivatives associated with the provisions of its IUL products. The fair value of IUL embedded derivatives includes significant observable interest rates, volatilities and equity index levels and the significant unobservable estimate of the Company’s nonperformance risk. Given the significance of the nonperformance risk assumption, the IUL embedded derivatives are classified as Level 3.

The embedded derivatives attributable to these provisions are recorded in Policyholder account balances, future policy benefits and claims.

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 variation margin on futures contracts is also classified as Level 1. The fair value of derivatives that are traded in less active OTC markets is 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 as of both December 31, 2023 and 2022. See Note 16 and Note 17 for further information on the credit risk of derivative instruments and related collateral.

Fair Value on a Nonrecurring Basis

During the years ended December 31, 2023 and 2022, there were no material assets or liabilities measured at fair value on a nonrecurring basis.

Assets and Liabilities Not Reported at Fair Value

The following tables provide the carrying value and the estimated fair value of financial instruments that are not reported at fair value:


	December 31, 2023
	Carrying Value		Fair Value
(in thousands)	Carrying Value		Level 1		Level 2		Level 3		Total
Financial Assets
Mortgage loans, net	$	144,910	$	—	$	—	$	134,224	$	134,224
Policy loans		53,615		—		53,615		—		53,615

Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	705,348	$	—	$	—	$	684,945	$	684,945
Separate account liabilities – investment contracts		3,412		—		3,412		—		3,412


	December 31, 2022
	Carrying Value		Fair Value
(in thousands)	Carrying Value		Level 1		Level 2		Level 3		Total
Financial Assets
Mortgage loans, net	$	157,068	$	—	$	—	$	143,477	$	143,477
Policy loans		50,791		—		50,791		—		50,791

Financial Liabilities
Policyholder account balances, future policy benefits and claims	$	761,275	$	—	$	—	$	728,833	$	728,833
Separate account liabilities – investment contracts		3,048		—		3,048		—		3,048

See Note 7 for additional information on mortgage loans and policy loans.

F-39

RiverSource Life Insurance Co. of New York

Policyholder account balances, future policy benefits and claims include fixed annuities in deferral status, non-life contingent fixed annuities in payout status and the fixed portion of a small number of variable annuity contracts classified as investment contracts. See Note 10 for additional information on these liabilities. Separate account liabilities are related to certain annuity products that are classified as investment contracts.

14. RELATED PARTY TRANSACTIONS

Revenues

See Note 4 for information about revenues from contracts with customers earned by the Company from related party transactions with affiliates.

Expenses

Charges by Ameriprise Financial and affiliated companies to the Company for use of joint facilities, technology support, marketing services and other services aggregated $23.0 million, $22.9 million and $23.1 million for the years ended December 31, 2023, 2022 and 2021, 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.

Income Taxes

The Company’s taxable income is included in the consolidated federal income and various state tax returns of Ameriprise Financial. The net amount due to Ameriprise Financial for income taxes was $428 thousand and $3.8 million as of December 31, 2023 and 2022, respectively, which is reflected in Other liabilities.

Lines of Credit

The Company, as the borrower, has amended its revolving credit agreement with Ameriprise Financial as the lender. The aggregate amount outstanding under this line of credit may not exceed the lesser of $25 million or 3% of the Company’s statutory admitted assets (excluding separate accounts) as of the prior year end. Prior to July 1, 2023, the interest rate for any borrowing under the agreement was established by reference to London Interbank Offered Rate (“LIBOR”) for U.S. dollar deposits with maturities comparable to the relevant interest period. In July 2023, in anticipation of the end of the publication of U.S. dollar LIBOR, an amendment to the agreement changed the interest rate to Daily Simple Secured Overnight Financing Rate plus 0.1% and an applicable margin 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 credit agreement is amended to extend the maturity on an annual basis with Ameriprise Financial, subject to the New York Department’s non-disapproval. There were no amounts outstanding on this line of credit as of both December 31, 2023 and 2022.

Dividends or Distributions

During the years ended December 31, 2023, 2022 and 2021, the Company paid cash dividends or distributions of $50 million, $63 million and nil, respectively, to RiverSource Life. For dividend or other distributions from the Company, advance notification was provided to the New York Department prior to payments. See Note 15 for additional information.

15. STATUTORY ACCOUNTING PRINCIPLES AND REQUIREMENTS

The National Association of Insurance Commissioners (“NAIC”) defines Risk-Based Capital (“RBC”) requirements for insurance companies. The RBC requirements are used by the NAIC and state insurance regulators to identify companies that merit regulatory actions designed to protect policyholders. These requirements apply to the Company. The Company has met its minimum RBC requirements.

Insurance companies are required to prepare statutory financial statements in accordance with the accounting practices prescribed or permitted by the insurance departments of their respective states of domicile, which vary materially from GAAP. Prescribed statutory accounting practices include publications of the NAIC, as well as state laws, regulations and general administrative rules. The State of New York has adopted the NAIC Accounting Practices and Procedures Manual as its prescribed basis of statutory accounting principles. In addition, New York has prescribed certain reserve requirements that differ from those required under NAIC statutory accounting principles. As of December 31, 2023 and 2022, application of these New York prescribed practices which deviate from the NAIC requirements resulted in an increase of $7.1 million and $66.0 million to the Company’s net income, respectively, and a decrease to the Company’s statutory surplus of $76.1 million and $83.2 million, respectively. The Company’s RBC would not have triggered a regulatory event without the application of these prescribed practices.

The more significant differences between NAIC statutory accounting principles and GAAP include charging policy acquisition costs to expense as incurred, establishing annuity and insurance reserves using different actuarial methods and assumptions, valuing investments on a different basis and excluding certain assets from the balance sheet by charging them directly to surplus, such as a portion of the net deferred income tax assets.

State insurance statutes generally require insurance companies to provide notice to state regulators prior to payment of dividends or distributions and those dividends or distributions exceeding prescribed limitations are subject to potential disapproval. For the Company, dividends or distributions in a calendar year which exceed the greater of: (i) 10% of statutory surplus as of the

F-40

RiverSource Life Insurance Co. of New York

immediately preceding year end, or (ii) statutory net gain from operations for the immediately preceding calendar year, not to exceed 30% of statutory surplus as of the immediately preceding year end would require pre-notification to the New York Department and are subject to potential disapproval. Statutory net gain from operations was $66.6 million, $212.7 million and $63.6 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Comparisons of net income and shareholder’s equity, as shown in the accompanying GAAP financial statements, to that determined using statutory accounting principles prescribed by the State of New York (“SAP”) were as follows:


	Years Ended December 31,
(in thousands)	2023			2022			2021
Net Income
Net income, per accompanying GAAP financial statements	$	46,567		$	44,419		$	100,228
Net income, SAP basis⁽¹⁾		60,310			317,442			6,125
Difference	$	(13,743	)	$	(273,023	)	$	94,103



	December 31,
(in thousands)	2023		2022
Shareholder’s Equity
Shareholder’s equity, per accompanying GAAP financial statements	$	424,097	$	394,930
Capital and surplus, SAP basis⁽²⁾		244,121		319,620
Difference	$	179,976	$	75,310

⁽¹⁾	Results may be significantly impacted by changes in reserves for variable annuity guaranteed benefits, however, these impacts may be substantially offset by unrealized gains (losses) on derivatives which are not included in statutory income but are recorded directly to surplus.

⁽²⁾	Includes unassigned surplus of $135.2 million and $210.7 million as of December 31, 2023 and 2022, respectively.

As of December 31, 2023 and 2022, bonds carried at $220 thousand and $215 thousand, respectively, were on deposit with the State of New York as required by law.

16. OFFSETTING ASSETS AND LIABILITIES

Certain financial instruments and derivative instruments are eligible for offset in the Balance Sheets. The Company’s derivative instruments are subject to master netting and collateral arrangements and qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. The Company’s policy is to recognize amounts subject to master netting arrangements on a gross basis in the Balance Sheets.

The following tables present the gross and net information about the Company’s assets subject to master netting arrangements:


	December 31, 2023
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheets		Amounts of Assets Presented in the Balance Sheets		Gross Amounts Not Offset in the Balance Sheets									Net Amount
(in thousands)	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheets		Amounts of Assets Presented in the Balance Sheets		Financial Instruments⁽¹⁾			Cash Collateral			Securities Collateral			Net Amount
Derivatives:
OTC	$	72,768	$	—	$	72,768	$	(29,626	)	$	(40,364	)	$	(2,249	)	$	529
OTC cleared		323		—		323		(323	)		—			—			—
Exchange-traded		1,756		—		1,756		(271	)		—			—			1,485
Total	$	74,847	$	—	$	74,847	$	(30,220	)	$	(40,364	)	$	(2,249	)	$	2,014

	December 31, 2022
	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheets		Amounts of Assets Presented in the Balance Sheets		Gross Amounts Not Offset in the Balance Sheets									Net Amount
(in thousands)	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Balance Sheets		Amounts of Assets Presented in the Balance Sheets		Financial Instruments⁽¹⁾			Cash Collateral			Securities Collateral			Net Amount
Derivatives:
OTC	$	89,575	$	—	$	89,575	$	(13,173	)	$	(75,976	)	$	—		$	426
OTC cleared		701		—		701		(442	)		—			—			259
Exchange-traded		4,000		—		4,000		(325	)		—			—			3,675
Total	$	94,276	$	—	$	94,276	$	(13,940	)	$	(75,976	)	$	—		$	4,360

⁽¹⁾	Represents the amount of assets that could be offset by liabilities with the same counterparty under master netting or similar arrangements that management elects not to offset on the Balance Sheets.

F-41

RiverSource Life Insurance Co. of New York

The following tables present the gross and net information about the Company’s liabilities subject to master netting arrangements:


	December 31, 2023
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheets		Amounts of Liabilities Presented in the Balance Sheets		Gross Amounts Not Offset in the Balance Sheets									Net Amount
(in thousands)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheets		Amounts of Liabilities Presented in the Balance Sheets		Financial Instruments⁽¹⁾			Cash Collateral			Securities Collateral			Net Amount
Derivatives:
OTC	$	39,853	$	—	$	39,853	$	(29,626	)	$	(7,007	)	$	(3,063	)	$	157
OTC cleared		1,805		—		1,805		(323	)		—			—			1,482
Exchange-traded		271		—		271		(271	)		—			—			—
Total	$	41,929	$	—	$	41,929	$	(30,220	)	$	(7,007	)	$	(3,063	)	$	1,639


	December 31, 2022
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheets		Amounts of Liabilities Presented in the Balance Sheets		Gross Amounts Not Offset in the Balance Sheets									Net Amount
(in thousands)	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Balance Sheets		Amounts of Liabilities Presented in the Balance Sheets		Financial Instruments⁽¹⁾			Cash Collateral			Securities Collateral			Net Amount
Derivatives:
OTC	$	58,017	$	—	$	58,017	$	(13,173	)	$	(13,227	)	$	(31,449	)	$	168
OTC cleared		442		—		442		(442	)		—			—			—
Exchange-traded		325		—		325		(325	)		—			—			—
Total	$	58,784	$	—	$	58,784	$	(13,940	)	$	(13,227	)	$	(31,449	)	$	168

⁽¹⁾	Represents the amount of liabilities that could be offset by assets with the same counterparty under master netting or similar arrangements that management elects not to offset on the Balance Sheets.

In the tables above, the amount of assets or liabilities presented are offset first by financial instruments that have the right of offset under master netting or similar arrangements, then any remaining amount is reduced by the amount of cash and securities collateral. The actual collateral may be greater than amounts presented in the tables.

When the fair value of collateral accepted by the Company is less than the amount due to the Company, there is a risk of loss if the counterparty fails to perform or provide additional collateral. To mitigate this risk, the Company monitors collateral values regularly and requires additional collateral when necessary. When the value of collateral pledged by the Company declines, it may be required to post additional collateral.

Freestanding derivative instruments are reflected in Other assets and Other liabilities. Cash collateral pledged by the Company is reflected in Other assets and cash collateral accepted by the Company is reflected in Other liabilities. See Note 17 for additional disclosures related to the Company’s derivative instruments.

17. 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.

Certain of the Company’s freestanding derivative instruments are subject to master netting arrangements. The Company’s policy on the recognition of derivatives on the Balance Sheets is to not offset fair value amounts recognized for derivatives and collateral arrangements executed with the same counterparty under the same master netting arrangement. See Note 16 for additional information regarding the estimated fair value of the Company’s freestanding derivatives after considering the effect of master netting arrangements and collateral.

F-42

RiverSource Life Insurance Co. of New York

Generally, the Company uses derivatives as economic hedges and accounting hedges. The following table presents the notional value and gross fair value of derivative instruments, including embedded derivatives:


	December 31, 2023						December 31, 2022
			Gross Fair Value						Gross Fair Value
(in thousands)	Notional		Assets⁽¹⁾		Liabilities⁽²⁾		Notional		Assets⁽¹⁾		Liabilities⁽²⁾
Derivatives not designated as hedging instruments
Interest rate contracts	$	1,883,300	$	3,180	$	2,808	$	3,131,000	$	11,416	$	7,625
Equity contracts		1,401,329		71,361		35,509		1,291,022		81,619		50,887
Foreign exchange contracts		114,951		306		104		90,943		1,241		272
Credit contracts		104,115		—		3,508		—		—		—
Total non-designated hedges		3,503,695		74,847		41,929		4,512,965		94,276		58,784
Embedded derivatives
IUL		N/A		—		50,529		N/A		—		42,382
Total embedded derivatives		N/A		—		50,529		N/A		—		42,382
Total derivatives	$	3,503,695	$	74,847	$	92,458	$	4,512,965	$	94,276	$	101,166

N/A Not applicable

⁽¹⁾	The fair value of freestanding derivative assets is included in Other assets.

⁽²⁾	The fair value of freestanding derivative liabilities is included in Other liabilities. The fair value of IUL embedded derivatives is included in Policyholder account balances, future policy benefits and claims.

See Note 13 for additional information regarding the Company’s fair value measurement of derivative instruments.

As of December 31, 2023 and 2022, investment securities with a fair value of $93.9 million and $117.4 million, respectively, were pledged to meet contractual obligations under derivative contracts, of which $3.6 million and $32.5 million, respectively, may be sold, pledged or rehypothecated by the counterparty. As of December 31, 2023 and 2022, investment securities with a fair value of $2.6 million and nil, respectively, were received as collateral to meet contractual obligations under derivative contracts, of which nil may be sold, pledged or rehypothecated by the Company as of both December 31, 2023 and 2022. As of both December 31, 2023 and 2022, the Company had sold, pledged or rehypothecated none of these securities. In addition, as of both December 31, 2023 and 2022, non-cash collateral accepted was held in separate custodial accounts and was not included in the Company’s Balance Sheets.

The following table presents a summary of the impact of derivatives not designated as hedging instruments, including embedded derivatives, on the Statements of Income:


(in thousands)	Interest Credited to Fixed Accounts			Change in Fair Value of Market Risk Benefits
Year Ended December 31, 2023
Interest rate contracts	$	—		$	(23,725	)
Equity contracts		4,569			(77,123	)
Foreign exchange contracts		—			402
Credit contracts		—			(19	)
IUL embedded derivatives		(5,694	)		—
Total gain (loss)	$	(1,125	)	$	(100,465	)
Year Ended December 31, 2022
Interest rate contracts	$	—		$	(145,925	)
Equity contracts		(6,797	)		35,340
Foreign exchange contracts		—			5,198
IUL embedded derivatives		11,718			—
Total gain (loss)	$	4,921		$	(105,387	)
Year Ended December 31, 2021
Interest rate contracts	$	—		$	(49,439	)
Equity contracts		4,552			(38,592	)
Foreign exchange contracts		—			477
IUL embedded derivatives		1,009			—
Total gain (loss)	$	5,561		$	(87,554	)

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, credit and foreign currency exchange rate risk related to various products and transactions of the Company.

F-43

RiverSource Life Insurance Co. of New York

The deferred premium associated with certain of the above options is paid or received semi-annually over the life of the contract or at maturity. The following is a summary of the payments the Company is scheduled to make and receive for these options as of December 31, 2023:


(in thousands)	Premiums Payable		Premiums Receivable
2024	$	260	$	—
2025		130		—
2026		23,701		—
2027		—		—
2028		—		—
2029 – 2030		35,700		—
Total	$	59,791	$	—

Actual timing and payment amounts may differ due to future settlements, modifications or exercises of the contracts prior to the full premium being paid or received.

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 IUL products will positively or negatively impact earnings over the life of these products. The equity component of IUL product obligations is considered an embedded derivative, which is bifurcated from the host contract for valuation purposes and reported on the Balance Sheets at fair value with changes in fair value reported in earnings. As a means of economically hedging its obligations under the provisions of this product, the Company enters into interest rate swaps, index options and futures contracts.

As discussed in Note 12, the Company issues variable annuity contracts that provide protection to contractholders from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. The Company economically hedges its obligations under these market risk benefits using options, swaptions, swaps and futures.

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 and collateral arrangements whenever practical. See Note 16 for additional information on the Company’s credit exposure related to derivative assets.

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 RiverSource Life’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. As of December 31, 2023 and 2022, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $9.9 million and $42.9 million, respectively. The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2023 and 2022 was $9.7 million and $42.7 million, respectively. If the credit contingent provisions of derivative contracts in a net liability position as of December 31, 2023 and 2022 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 $157 thousand and $168 thousand as of December 31, 2023 and 2022, respectively.

18. SHAREHOLDER’S EQUITY

The following tables present the amounts related to each component of OCI:


	Year Ended December 31, 2023
(in thousands)	Pretax			Income Tax Benefit (Expense)			Net of Tax
Net unrealized gains (losses) on securities:
Net unrealized gains (losses) on securities arising during the period⁽¹⁾	$	54,710		$	(11,489	)	$	43,221
Reclassification of net (gains) losses on securities included in net income⁽²⁾		224			(47	)		177
Impact of benefit reserves and reinsurance recoverables		(2,181	)		458			(1,723	)
Net unrealized gains (losses) on securities		52,753			(11,078	)		41,675
Effect of changes in discount rate assumptions on certain long-duration contracts		(7,753	)		1,628			(6,125	)
Effect of changes in instrument-specific credit risk on MRBs		(3,734	)		784			(2,950	)
Total other comprehensive income (loss)	$	41,266		$	(8,666	)	$	32,600

F-44

RiverSource Life Insurance Co. of New York


	Year Ended December 31, 2022
(in thousands)	Pretax			Income Tax Benefit (Expense)			Net of Tax
Net unrealized gains (losses) on securities:
Net unrealized gains (losses) on securities arising during the period⁽¹⁾	$	(282,360	)	$	59,296		$	(223,064	)
Reclassification of net (gains) losses on securities included in net income⁽²⁾		3,346			(703	)		2,643
Impact of benefit reserves and reinsurance recoverables		8,809			(1,849	)		6,960
Net unrealized gains (losses) on securities		(270,205	)		56,744			(213,461	)
Effect of changes in discount rate assumptions on certain long-duration contracts		78,368			(16,457	)		61,911
Effect of changes in instrument-specific credit risk on MRBs		23,844			(5,007	)		18,837
Total other comprehensive income (loss)	$	(167,993	)	$	35,280		$	(132,713	)


	Year Ended December 31, 2021
(in thousands)	Pretax			Income Tax Benefit (Expense)			Net of Tax
Net unrealized gains (losses) on securities:
Net unrealized gains (losses) on securities arising during the period⁽¹⁾	$	(53,907	)	$	11,321		$	(42,586	)
Reclassification of net (gains) losses on securities included in net income⁽²⁾		(10,377	)		2,179			(8,198	)
Impact of benefit reserves and reinsurance recoverables		2,233			(469	)		1,764
Net unrealized gains (losses) on securities		(62,051	)		13,031			(49,020	)
Effect of changes in discount rate assumptions on certain long-duration contracts		22,008			(4,622	)		17,386
Effect of changes in instrument-specific credit risk on MRBs		5,777			(1,213	)		4,564
Total other comprehensive income (loss)	$	(34,266	)	$	7,196		$	(27,070	)

⁽¹⁾	Includes impairments on Available-for-Sale securities related to factors other than credit that were recognized in OCI during the period.

⁽²⁾	Reclassification amounts are recorded in Net realized investment gains (losses).

Other comprehensive income (loss) related to net unrealized gains (losses) on securities includes three components: (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 losses to credit losses; and (iii) other adjustments primarily consisting of changes in insurance and annuity asset and liability balances, such as 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 the changes in the balances of each component of AOCI, net of tax:


(in thousands)	Net Unrealized Gains (Losses) on Securities			Effect of Changes in Discount Rate Assumptions			Effect of Changes in Instrument- Specific Credit Risk on MRBs			Total
Balance at January 1, 2021	$	90,117		$	—		$	—		$	90,117
Cumulative effect of adoption of long-duration contracts guidance		48,935			(79,153	)		(22,676	)		(52,894	)
OCI before reclassifications		(40,822	)		17,386			4,564			(18,872	)
Amounts reclassified from AOCI		(8,198	)		—			—			(8,198	)
Total OCI		(49,020	)		17,386			4,564			(27,070	)
Balance at December 31, 2021		90,032			(61,767	)		(18,112	)		10,153
OCI before reclassifications		(216,104	)		61,911			18,837			(135,356	)
Amounts reclassified from AOCI		2,643			—			—			2,643
Total OCI		(213,461	)		61,911			18,837			(132,713	)
Balance at December 31, 2022		(123,429	)		144			725			(122,560	)
OCI before reclassifications		41,498			(6,125	)		(2,950	)		32,423
Amounts reclassified from AOCI		177			—			—			177
Total OCI		41,675			(6,125	)		(2,950	)		32,600
Balance at December 31, 2023	$	(81,754	)	$	(5,981	)	$	(2,225	)	$	(89,960	)

F-45

RiverSource Life Insurance Co. of New York

19. INCOME TAXES

The components of income tax provision were as follows:


	Years Ended December 31,
(in thousands)	2023			2022			2021
Current income tax
Federal	$	9,247		$	11,869		$	22,663
State and local		(173	)		185			624
Total current income tax		9,074			12,054			23,287
Deferred federal income tax		(1,519	)		(4,674	)		112
Total income tax provision	$	7,555		$	7,380		$	23,399

The principal reasons that the aggregate income tax provision is different from that computed by using the U.S. statutory rate of 21% were as follows:


	Years Ended December 31,
	2023			2022			2021
Tax at U.S. statutory rate		21.0	%		21.0	%		21.0	%
Changes in taxes resulting from:
Dividends received deduction		(3.4	)		(3.9	)		(1.6	)
Foreign tax credit, net of addback		(2.9	)		(2.9	)		(0.9	)
Other		(0.7	)		—			0.4
Income tax provision		14.0	%		14.2	%		18.9	%

The decrease in the Company’s effective tax rate for the year ended December 31, 2022 compared to 2021 is primarily due to lower pretax income relative to tax preferred items.

Deferred income tax assets and liabilities result from temporary differences between the assets and liabilities measured for GAAP reporting versus income tax return purposes. Deferred income tax assets and liabilities are measured at the statutory rate of 21% as of both December 31, 2023 and 2022. The significant components of the Company’s deferred income tax assets and liabilities, which are included net within Other assets or Other liabilities, were as follows:


	December 31,
(in thousands)	2023		2022⁽¹⁾
Deferred income tax assets
Insurance and annuity benefits including corresponding hedges	$	66,330	$	66,283
Investments including net unrealized on Available-for-Sale securities		22,092		31,247
Other		72		277
Gross deferred income tax assets		88,494		97,807
Deferred income tax liabilities
Deferred acquisition costs		23,492		25,486
Other		1,431		1,602
Gross deferred income tax liabilities		24,923		27,088
Net deferred income tax assets	$	63,571	$	70,719

⁽¹⁾	Prior period amounts have been reclassified to conform to current year presentation and relate to derivative activity being presented with the liabilities they are hedging and remaining investments being presented together inclusive of net unrealized on Available-for-Sale securities.

Based on analysis of the Company’s tax position, management believes it is more likely than not that the Company’s results of future operations and implementation of tax planning strategies will generate sufficient taxable income to enable the Company to utilize all of the deferred tax assets. Accordingly, no valuation allowance for deferred tax assets has been established as of both December 31, 2023 and 2022.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows:


(in thousands)	2023			2022			2021
Balance at January 1	$	320		$	346		$	372
Additions for tax positions related to the current year		6			—			—
Reductions for tax positions related to the current year		(6	)		(26	)		(26	)
Additions for tax positions of prior years		324			—			—
Reductions for tax positions of prior years		(644	)		—			—
Balance at December 31	$	—		$	320		$	346

F-46

RiverSource Life Insurance Co. of New York

If recognized, approximately nil, $218 thousand and $218 thousand, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2023, 2022 and 2021, respectively, would affect the effective tax rate.

The Company is not aware of any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly change in the next 12 months.

The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net decrease of $90 thousand for the year ended December 31, 2023, and a net increase of $16 thousand and $11 thousand in interest and penalties for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2023 and 2022, the Company had a payable of nil and $90 thousand related to accrued interest and penalties, respectively.

The Company files income tax returns as part of its inclusion in the consolidated federal income tax return of Ameriprise Financial in the U.S. federal jurisdiction and various state jurisdictions. As of December 31, 2023, the federal statutes of limitations are closed on years through 2018. A previously open item for 2014 and 2015 was resolved in the second quarter of 2023. Also in the second quarter of 2023, the Internal Revenue Service (“IRS”) audit for tax years 2016 through 2018 was finalized. The IRS is currently auditing Ameriprise Financial’s U.S. income tax returns for 2019 and 2020. The state income tax returns of Ameriprise Financial and its subsidiaries, including the Company, are currently under examination by various jurisdictions for years ranging from 2017 through 2021.

20. COMMITMENTS AND CONTINGENCIES

Commitments

As of both December 31, 2023 and 2022, the Company had no funding commitments related to mortgage loans.

Contingencies

The Company and its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions, concerning matters arising in connection with the conduct of its activities. These include proceedings specific to the Company as well as proceedings generally applicable to business practices in the industries in which it operates. The Company can also be subject to legal proceedings arising out of its general business activities, such as its investments, contracts and employment relationships. 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.

As with other insurance companies, the level of regulatory activity and inquiry concerning the Company’s businesses remains elevated. From time to time, the Company and its affiliates, including AFS and RiverSource Distributors, Inc. receive requests for information from, and/or are subject to examination or claims by various state, federal and other domestic authorities. The Company and its affiliates typically have numerous pending matters, which include information requests, exams or inquiries regarding their business activities and practices and other subjects, including from time to time: sales and distribution of, and disclosure practices related to, various products, including the Company’s insurance and annuity products; supervision of associated persons, including AFS financial advisors and RiverSource Distributors, Inc.’s wholesalers; administration of insurance and annuity claims; security of client information; and transaction monitoring systems and controls. The Company and its affiliates are cooperating with the applicable regulators.

These pending matters are subject to uncertainties and, as such, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably estimate the amount of any loss that may result from such matters. The Company cannot predict with certainty if, how, or when any such proceedings will be initiated or resolved. Matters frequently need to be more developed before a potential loss or range of loss can be reasonably estimated for any matter. An adverse outcome in any matter could result in an adverse judgment, a settlement, fine, penalty, or other sanction, and may lead to further claims, examinations, or adverse publicity each of which could have a material adverse effect on the Company’s financial condition, results of operations, or liquidity.

In accordance with applicable accounting standards, the Company establishes an accrued liability for contingent litigation and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated. The Company discloses the nature of the contingency when management believes there is at least a reasonable possibility that the outcome may be material to the Company’s financial statements and, where feasible, an estimate of the possible loss. In such cases, there still may be an exposure to loss in excess of any amounts reasonably estimated and accrued. When a loss contingency is not both probable and reasonably estimable, the Company does not establish an accrued liability, but continues to monitor, in conjunction with any outside counsel handling a matter, further developments that would make such loss contingency both probable and reasonably estimable. Once the Company establishes an accrued liability with respect to a loss contingency, the Company continues to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established, and any appropriate adjustments are made each quarter.

F-47

RiverSource Life Insurance Co. of New York

Guaranty Fund Assessments

The Company is required by law to be a member of the guaranty fund association in the State of New York. 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 association. 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 and the amount of its premiums written relative to the industry-wide premium in the State of New York. 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.

As of both December 31, 2023 and 2022, the Company had no accrual established for estimated future guaranty fund assessments.

F-48




RiverSource Life Insurance Co. of New York 20 Madison Avenue Extension Albany, NY 12203 1-800-541-2251		RiverSource Distributors, Inc. (Distributor), Member FINRA. Issued by RiverSource Life Insurance Co. of New York, Albany, New York.

ANN9079_12_C01_(05/24)		© 2008-2024 RiverSource Life Insurance Company. All rights reserved.