727892--3/2/2009--RIVERSOURCE_LIFE_INSURANCE

related topics

{loss, insurance, financial}

{condition, economic, financial}

{capital, credit, financial}

{personnel, key, retain}

{tax, income, asset}

{regulation, government, change}

{system, service, information}

{loan, real, estate}

{competitive, industry, competition}

Risks Relating to RiverSource Life s Business RiverSource Life s financial condition and results of operations may be adversely affected by market fluctuations, interest rate fluctuations and by economic and other factors. Adverse capital and credit market conditions may significantly affect RiverSource Life s ability to meet liquidity needs, access to capital and cost of capital. The impairment of other financial institutions could adversely affect The failure of other insurers could require RiverSource Life to pay higher assessments to state insurance guaranty funds Third-party defaults, bankruptcy filings, legal actions and other events may limit the value of or restrict RiverSource Life s access to cash and investments. Governmental initiatives intended to address capital market and general economic conditions may not be effective and may give rise to additional requirements for RiverSource Life s business, including new capital requirements or other regulations, that could materially impact its financial condition, results of operations and liquidity in ways that it cannot predict Defaults in RiverSource Life s fixed maturity securities portfolio would adversely affect its earnings. 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. The determination of the amount of allowances and impairments taken on certain investments is subject to management s evaluation and judgment and could materially impact RiverSource Life s financial position or results of operations. RiverSource Life s valuation of fixed maturity and equity securities may include methodologies, estimations and assumptions which are subject to differing interpretations and could result in changes to investment valuations that may materially adversely impact its financial condition or results of operations. Some of RiverSource Life s investments are relatively illiquid. Intense competition and the economics of changes in RiverSource Life s product revenue mix and distribution channels could negatively impact RiverSource Life s ability to maintain or increase its market share and profitability. Poor investment performance in RiverSource Life s variable products could adversely affect its financial condition and results of operations. 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. RiverSource Life s business is heavily regulated, and changes in regulation may reduce its profitability and limit its growth. 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. Legal and regulatory actions are inherent in RiverSource Life s business and could result in financial losses or harm its business. 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. 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. Morbidity rates or mortality rates that differ significantly from RiverSource Life s pricing expectations would negatively affect profitability. 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. 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. Changes in U.S. federal income or estate tax law could make some of RiverSource Life s products less attractive to clients. RiverSource Life is subject to tax contingencies that could adversely affect the provision for income taxes.

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727892--3/2/2009--RIVERSOURCE_LIFE_INSURANCE_CO