727892--2/29/2008--RIVERSOURCE_LIFE_INSURANCE

related topics

{loss, insurance, financial}

{regulation, government, change}

{personnel, key, retain}

{condition, economic, financial}

{tax, income, asset}

{system, service, information}

{loan, real, estate}

{capital, credit, financial}

Risks Relating to RiverSource Life s Business RiverSource Life s financial condition and results of operations may be adversely affected by interest rate fluctuations and by economic and other factors. Poor investment performance in RiverSource Life s variable products could adversely affect its financial condition and results of operations. A downgrade or a potential downgrade in RiverSource Life s financial strength ratings could result in a loss of business and adversely affect its financial condition and results of operations. Intense competition and the economics of changes in RiverSource Life s product revenue mix and distribution channels could negatively affect RiverSource Life s ability to maintain or increase its market share and profitability. Downturns and volatility in equity markets could adversely affect RiverSource Life s business and profitability. Defaults in RiverSource Life s fixed maturity securities portfolio would adversely affect its earnings. Some of RiverSource Life s investments are relatively illiquid. RiverSource Life s affiliated distributor may be unable to attract and retain financial advisors. RiverSource Life and its affiliates face intense competition in attracting and retaining key talent. If the counterparties to RiverSource Life s reinsurance arrangements or to the derivative instruments it uses to hedge its business risks default, RiverSource Life may be exposed to risks it had sought to mitigate, which could adversely affect its financial condition and results of operations. RiverSource Life s business is heavily regulated, and changes in regulation may reduce its profitability and limit its growth. Legal and regulatory actions are inherent in RiverSource Life s business and could result in financial losses or harm its business. Competitive and regulatory pressures may require RiverSource Life to reduce the levels of its fees. Misconduct by RiverSource Life s employees and agents and its affiliates employees and agents is difficult to detect and deter and could harm RiverSource Life s business, results of operations or financial condition. If RiverSource Life s reserves for future policy benefits and claims are inadequate, it may be required to increase its reserve liabilities, which could adversely affect its financial condition and results of operations. RiverSource Life may face losses if morbidity rates or mortality rates differ significantly from its pricing expectations. RiverSource Life may face losses if there are significant deviations from its assumptions regarding the future persistency of its insurance policies and annuity contracts. RiverSource Life may be required to accelerate the amortization of DAC, which would increase its expenses and reduce profitability. Changes in U.S. federal income or estate tax law could make some of RiverSource Life s products less attractive to clients. Breaches of security, or the perception that RiverSource Life s technology infrastructure is not secure, could harm its business. Protection from system interruptions is important to RiverSource Life s business. If RiverSource Life experienced a sustained interruption to its telecommunications or data processing systems, it could harm its business. RiverSource Life s risk management policies and procedures may not be fully effective in mitigating its risk exposure in all market environments or against all types of risk, including employee and financial advisor misconduct. RiverSource Life is subject to tax contingencies that could adversely affect the provision for income taxes.

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727892--2/29/2008--RIVERSOURCE_LIFE_INSURANCE_CO