v3.25.4
Financing Receivables
12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
Financing Receivables Financing Receivables
Financing receivables are comprised of commercial loans, consumer loans and deposit receivables. 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:
 Commercial LoansConsumer LoansTotal
(in millions)
Balance at January 1, 2023
$54 $$59 
Provisions
Charge-offs(2)(2)(4)
Balance at December 31, 2023
54 63 
Provisions(5)(2)
Charge-offs(4)(4)(8)
Recoveries— 
Balance at December 31, 2024
45 54 
Provisions(3)
Charge-offs(1)(4)(5)
Recoveries— 
Balance at December 31, 2025
$41 $11 $52 
As of December 31, 2025 and 2024, accrued interest on commercial loans was $22 million and $20 million, respectively, and is recorded in Receivables and excluded from the amortized cost basis of commercial loans.
Purchases and Sales
During the years ended December 31, 2025, 2024 and 2023, the Company purchased $21 million, $7 million and $21 million, respectively, of syndicated loans, and sold $8 million, $6 million and $4 million, respectively, of syndicated loans.
During the years ended December 31, 2025, 2024 and 2023, the Company purchased $432 million, $212 million and $202 million, respectively, of residential mortgage loans.
The Company has not acquired any loans with deteriorated credit quality as of the acquisition date.
Credit Quality Information
Nonperforming loans were $13 million as of both December 31, 2025 and 2024.
Commercial Loans
Commercial Mortgage Loans
The Company reviews the credit worthiness of the borrower and the performance of the underlying properties in order to determine the risk of loss on commercial mortgage loans. Loan-to-value ratio is the primary credit quality indicator included in this review.
Based on this review, the commercial mortgage loans are assigned an internal risk rating, which management updates when credit risk changes. Commercial mortgage loans which management has assigned its highest risk rating were less than 1% of total commercial mortgage loans as of both December 31, 2025 and 2024. 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 commercial mortgage loans past due as of both December 31, 2025 and 2024.
The tables below present the amortized cost basis of commercial mortgage loans by year of origination and loan-to-value ratio:
December 31, 2025
Loan-to-Value Ratio
2025
2024202320222021PriorTotal
(in millions)
> 100%$— $— $— $— $— $15 $15 
80% - 100%— — — — — 56 56 
60% - 80%83 82 18 12 — 103 298 
40% - 60%129 87 42 26 62 339 685 
< 40%45 15 11 65 108 741 985 
Total$257 $184 $71 $103 $170 $1,254 $2,039 
December 31, 2024
Loan-to-Value Ratio
2024
2023202220212020PriorTotal
(in millions)
> 100%$— $— $— $— $— $15 $15 
80% - 100%— — — — 10 48 58 
60% - 80%86 44 18 130 292 
40% - 60%87 22 39 69 41 348 606 
< 40%15 10 48 102 50 706 931 
Total$188 $76 $105 $180 $106 $1,247 $1,902 
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.
In addition, the Company reviews the concentrations of credit risk by region and property type. Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:
 LoansPercentage
December 31,December 31,
2025
2024
2025
2024
(in millions)  
East North Central$185 $185 %10 %
East South Central51 45 
Middle Atlantic126 133 
Mountain168 157 
New England35 30 
Pacific696 633 34 33 
South Atlantic552 489 27 26 
West North Central110 119 
West South Central116 111 
Total$2,039 $1,902 100 %100 %
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
LoansPercentage
December 31,December 31,
2025
2024
2025
2024
(in millions)  
Apartments$600 $522 29 %27 %
Hotel40 33 
Industrial404 362 20 19 
Mixed use83 68 
Office190 219 11 
Retail528 546 26 29 
Other194 152 10 
Total$2,039 $1,902 100 %100 %
Syndicated Loans
The investment in syndicated loans as of December 31, 2025 and 2024 was $79 million and $92 million, respectively. The Company’s syndicated loan portfolio is diversified across industries and issuers. There were no syndicated loans past due as of both December 31, 2025 and 2024. The Company assigns an internal risk rating to each syndicated loan in its portfolio ranging from 1 through 5, with 5 reflecting the lowest quality.
The tables below present the amortized cost basis of syndicated loans by origination year and internal risk rating:
December 31, 2025
Internal Risk Rating
2025
2024202320222021PriorTotal
(in millions)
Risk 5$— $— $— $— $— $— $— 
Risk 4— — — — — 
Risk 3— — — 
Risk 211 15 — 35 
Risk 114 15 — — — 34 
Total$32 $31 $$— $$$79 
December 31, 2024
Internal Risk Rating
2024
2023202220212020PriorTotal
(in millions)
Risk 5$— $— $— $— $— $— $— 
Risk 4— — — — — 
Risk 3— 12 
Risk 229 — — 45 
Risk 122 — — 33 
Total$52 $12 $— $14 $$11 $92 
Advisor Loans
The Company offers loans to financial advisors for transitional cost assistance and practice operations. Repayment of the loan is highly dependent on the retention of the financial advisor. In the event a financial advisor is no longer affiliated with the Company, the unpaid balances generally become immediately due. Accordingly, the primary risk factor for advisor loans is termination status. The allowance for credit losses related to loans to advisors that have terminated their relationship with the Company was $7 million and $6 million as of December 31, 2025 and 2024, respectively.
The tables below present the amortized cost basis of advisor loans by origination year and termination status:
December 31, 2025
Termination Status
2025
2024202320222021PriorTotal
(in millions)
Active$637 $309 $280 $215 $79 $142 $1,662 
Terminated— — 11 
Total$637 $310 $280 $216 $80 $150 $1,673 
December 31, 2024
Termination Status
2024
2023202220212020PriorTotal
(in millions)
Active$358 $351 $261 $121 $82 $150 $1,323 
Terminated— — 12 
Total$358 $351 $263 $123 $84 $156 $1,335 
Consumer Loans
Residential Mortgage Loans
The Company reviews the credit worthiness of the borrower in order to determine the risk of loss on residential mortgage loans. Geographic location and FICO scores are the primary credit quality indicators included in the model that projects the Company’s risk of credit loss over the life of the residential mortgage loan portfolio. Delinquency rates are measured based on the number of days past due. Residential mortgage loans over 30 days past due were $8 million and $4 million as of December 31, 2025 and 2024, respectively.
The tables below present the amortized cost basis of residential mortgage loans by year of origination and FICO score:
FICO Score
December 31, 2025
2025
2024202320222021
Prior
Total
(in millions)
> 810
$23 $$$$$$43 
780 - 809
177 76 50 22 337 
740 - 779
128 56 62 22 279 
720 - 739
29 17 13 — 67 
700 - 719
16 41 
< 699
14 — 32 
Total$387 $171 $146 $58 $26 $11 $799 
FICO Score
December 31, 2024
2024
2023202220212020
Total
(in millions)
> 810
$$$$$$19 
780 - 809
84 56 28 181 
740 - 779
64 77 25 178 
720 - 739
17 15 — 42 
700 - 719
26 
< 699
— 20 
Total$186 $172 $68 $27 $13 $466 
The table below presents the concentrations of credit risk of residential mortgage loans by U.S. region:
Loans
Percentage
December 31,
December 31,
2025
2024
2025
2024
(in millions)
Minnesota
$420 $284 53 %61 %
Other U.S. States
379 182 47 39 
Total$799 $466 100 %100 %
Credit Card Receivables
The credit cards are co-branded with Ameriprise Financial, Inc. and issued to the Company’s customers by a third party. FICO scores and delinquency rates are the primary credit quality indicators for the credit card portfolio. Delinquency rates are measured based on the number of days past due. Credit card receivables over 30 days past due were 2% of total credit card receivables as of both December 31, 2025 and 2024.
The table below presents the amortized cost basis of credit card receivables by FICO score:
FICO Score
December 31,
2025
2024
(in millions)
> 800$39 $38 
750 - 79931 32 
700 - 74927 29 
650 - 69916 16 
< 650
Total$122 $123 
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.
Margin Loans
The margin loans balance was $1.3 billion and $1.1 billion as of December 31, 2025 and 2024, respectively. The Company monitors collateral supporting margin loans and requests additional collateral when necessary in order to mitigate the risk of loss. As of both December 31, 2025 and 2024, there was no allowance for credit losses on margin loans.
Pledged Asset Lines of Credit
The pledged asset lines of credit balance was $1.0 billion and $737 million as of December 31, 2025 and 2024, respectively. The Company monitors collateral supporting pledged asset lines of credit and requests additional collateral when necessary in order to mitigate the risk of loss. As of both December 31, 2025 and 2024, there was no allowance for credit losses on pledged asset lines of credit.
Deposit Receivables
Deposit receivables were $5.4 billion and $5.8 billion as of December 31, 2025 and 2024, respectively. Deposit receivables are collateralized by the fair value of the assets held in trusts. Based on management’s evaluation of the collateral value relative to the deposit receivables, the allowance for credit losses for deposit receivables was not material as of both December 31, 2025 and 2024.